SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Supporting Knowledge 
and Investing in Lifelong Skills Act’’ or the ‘‘SKILLS 
Act’’. 
SEC. 2. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
Sec. 3. References. 
Sec. 4. Effective date. 
TITLE I—AMENDMENTS TO THE WORKFORCE INVESTMENT ACT 
OF 1998 
Subtitle A—Workforce Investment Definitions 
Sec. 101. Definitions. 
Subtitle B—Statewide and Local Workforce Investment Systems 
Sec. 102. Purpose. 
Sec. 103. State workforce investment boards. 
Sec. 104. State plan. 
Sec. 105. Local workforce investment areas. 
Sec. 106. Local workforce investment boards. 
Sec. 107. Local plan. 
Sec. 108. Establishment of one-stop delivery system. 
Sec. 109. Identification of eligible providers of training services. 
Sec. 110. General authorization. 
Sec. 111. State allotments. 
Sec. 112. Within State allocations. 
Sec. 113. Use of funds for employment and training activities. 
Sec. 114. Performance accountability system. 
Sec. 115. Authorization of appropriations. 
Subtitle C—Job Corps 
Sec. 116. Job Corps purposes. 
Sec. 117. Job Corps definitions. 
Sec. 118. Individuals eligible for the Job Corps. 
Sec. 119. Recruitment, screening, selection, and assignment of enrollees. 
Sec. 120. Job Corps centers. 
Sec. 121. Program activities. 
Sec. 122. Counseling and job placement. 
Sec. 123. Support. 
Sec. 124. Operations. 
Sec. 125. Community participation. 
Sec. 126. Workforce councils. 
Sec. 127. Technical assistance. 
Sec. 128. Special provisions.
Sec. 129. Performance accountability management. 
Subtitle D—National Programs 
Sec. 130. Technical assistance. 
Sec. 131. Evaluations. 
Subtitle E—Administration 
Sec. 132. Requirements and restrictions. 
Sec. 133. Prompt allocation of funds. 
Sec. 134. Fiscal controls; sanctions. 
Sec. 135. Reports to Congress. 
Sec. 136. Administrative provisions. 
Sec. 137. State legislative authority. 
Sec. 138. General program requirements. 
Sec. 139. Federal agency staff and restrictions on political and lobbying activi-
ties. 
Subtitle F—State Unified Plan 
Sec. 140. State unified plan. 
TITLE II—ADULT EDUCATION AND FAMILY LITERACY 
EDUCATION 
Sec. 201. Amendment. 
TITLE III—AMENDMENTS TO THE WAGNER-PEYSER ACT 
Sec. 301. Amendments to the Wagner-Peyser Act. 
TITLE IV—REPEALS AND CONFORMING AMENDMENTS 
Sec. 401. Repeals. 
Sec. 402. Amendment to the Comprehensive Environmental Response, Com-
pensation, and Liability Act of 1980. 
Sec. 403. Amendments to the Food and Nutrition Act of 2008. 
Sec. 404. Amendments to section 412 of the Immigration and Nationality Act. 
Sec. 405. Amendments relating to the Second Chance Act of 2007. 
Sec. 406. Amendments to the Omnibus Crime Control and Safe Streets Act of 
1968. 
Sec. 407. Conforming amendments to the United States Code. 
Sec. 408. Conforming amendment to table of contents. 
TITLE V—AMENDMENTS TO THE REHABILITATION ACT OF 1973 
Sec. 501. Findings. 
Sec. 502. Rehabilitation services administration. 
Sec. 503. Definitions. 
Sec. 504. State plan. 
Sec. 505. Scope of services. 
Sec. 506. Standards and indicators. 
Sec. 507. Collaboration with industry. 
Sec. 508. Reservation for expanded transition services. 
Sec. 509. Client assistance program. 
Sec. 510. Title III amendments. 
Sec. 511. Repeal of title VI.
Sec. 512. Chairperson. 
Sec. 513. Authorizations of appropriations. 
Sec. 514. Conforming amendments. 
TITLE VI—STUDIES BY THE COMPTROLLER GENERAL 
Sec. 601. Study by the Comptroller General on exhausting Federal Pell Grants 
before accessing WIA funds. 
Sec. 602. Study by the Comptroller General on administrative cost savings. 
SEC. 3. REFERENCES. 
Except as otherwise expressly provided, wherever in 
this Act an amendment or repeal is expressed in terms 
of an amendment to, or repeal of, a section or other provi-
sion, the amendment or repeal shall be considered to be 
made to a section or other provision of the Workforce In-
vestment Act of 1998 (29 U.S.C. 9201 et seq.). 
SEC. 4. EFFECTIVE DATE. 
Except as otherwise provided, this Act and the 
amendments made by this Act shall be effective with re-
spect to fiscal year 2014 and succeeding fiscal years. 
TITLE I—AMENDMENTS TO THE 
WORKFORCE 
INVESTMENT 
ACT OF 1998 
Subtitle A—Workforce Investment 
Definitions 
SEC. 101. DEFINITIONS. 
Section 101 (29 U.S.C. 2801) is amended— 
(1) by striking paragraphs (13) and (24); 
(2) by redesignating paragraphs (1) through 
(12) as paragraphs (3) through (14), and para-
graphs (14) through (23) as paragraphs (15) 
through (24), respectively; 
(3) by striking paragraphs (52) and (53); 
(4) by inserting after ‘‘In this title:’’ the fol-
lowing new paragraphs: 
‘‘(1) ACCRUED EXPENDITURES.—The term ‘ac-
crued expenditures’ means charges incurred by re-
cipients of funds under this title for a given period 
requiring the provision of funds for goods or other 
tangible property received; services performed by 
employees, contractors, subgrantees, subcontractors, 
and other payees; and other amounts becoming owed 
under programs assisted under this title for which 
no current services or performance is required, such 
as annuities, insurance claims, and other benefit 
payments. 
‘‘(2) ADMINISTRATIVE COSTS.—The term ‘ad-
ministrative costs’ means expenditures incurred by 
State and local workforce investment boards, direct 
recipients (including State grant recipients under 
subtitle B and recipients of awards under subtitles 
C and D), local grant recipients, local fiscal agents 
or local grant subrecipients, and one-stop operators 
in the performance of administrative functions and 
in carrying out activities under this title which are
not related to the direct provision of workforce in-
vestment services (including services to participants 
and employers). Such costs include both personnel 
and non-personnel and both direct and indirect.’’; 
(5) in paragraph (3) (as so redesignated), by 
striking ‘‘Except in sections 127 and 132, the’’ and 
inserting ‘‘The’’; 
(6) by amending paragraph (5) (as so redesig-
nated) to read as follows: 
‘‘(5) AREA
CAREER
AND
TECHNICAL
EDU-
CATION SCHOOL.—The term ‘area career and tech-
nical education school’ has the meaning given the 
term in section 3(3) of the Carl D. Perkins Career 
and Technical Education Act of 2006 (20 U.S.C. 
2302(3)).’’; 
(7) in paragraph (6) (as so redesignated), by 
inserting ‘‘(or such other level as the Governor may 
establish)’’ after ‘‘8th grade level’’; 
(8) in paragraph (10)(C) (as so redesignated), 
by striking ‘‘not less than 50 percent of the cost of 
the training’’ and inserting ‘‘a significant portion of 
the cost of training, as determined by the local 
board (or, in the case of an employer in multiple 
local areas in the State, as determined by the Gov-
ernor), taking into account the size of the employer
and such other factors as the local board determines 
to be appropriate’’; 
(9) in paragraph (11) (as so redesignated)— 
(A) in subparagraph (A)(ii)(II), by striking 
‘‘section 
134(c)’’ 
and 
inserting 
‘‘section 
121(e)’’; 
(B) in subparagraph (B)(iii)— 
(i) by striking ‘‘134(d)(4)’’ and insert-
ing ‘‘134(c)(4)’’; and 
(ii) by striking ‘‘intensive services de-
scribed in section 134(d)(3)’’ and inserting 
‘‘work ready services described in section 
117(d)(5)(C)’’; 
(C) in subparagraph (C), by striking ‘‘or’’ 
after the semicolon; 
(D) in subparagraph (D), by striking the 
period and inserting ‘‘; or’’; and 
(E) by adding at the end the following: 
‘‘(E)(i) is the spouse of a member of the 
Armed Forces on active duty for a period of 
more than 30 days (as defined in section 
101(d)(2) of title 10, United States Code) who 
has experienced a loss of employment as a di-
rect result of relocation to accommodate a per-
manent change in duty station of such member; 
or 
‘‘(ii) is the spouse of a member of the 
Armed Forces on active duty who meets the cri-
teria described in paragraph (12)(B).’’; 
(10) in paragraph (12)(A) (as redesignated)— 
(A) by striking ‘‘and’’ after the semicolon 
and inserting ‘‘or’’; 
(B) by striking ‘‘(A)’’ and inserting 
‘‘(A)(i)’’; and 
(C) by adding at the end the following: 
‘‘(ii) is the spouse of a member of the 
Armed Forces on active duty for a period of 
more than 30 days (as defined in section 
101(d)(2) of title 10, United States Code) 
whose family income is significantly reduced be-
cause of a deployment (as defined in section 
991(b) of title 10, United States Code, or pur-
suant to paragraph (4) of such section), a call 
or order to active duty pursuant to a provision 
of law referred to in section 101(a)(13)(B) of 
title 10, United States Code, a permanent 
change of station, or the service-connected (as 
defined in section 101(16) of title 38, United
States Code) death or disability of the member; 
and’’; 
(11) in paragraph (13) (as so redesignated), by 
inserting ‘‘or regional’’ after ‘‘local’’ each place it 
appears; 
(12) in paragraph (14) (as so redesignated)— 
(A) in subparagraph (A), by striking ‘‘sec-
tion 122(e)(3)’’ and inserting ‘‘section 122’’; 
(B) by striking subparagraph (B), and in-
serting the following: 
‘‘(B) work ready services, means a provider 
who is identified or awarded a contract as de-
scribed in section 117(d)(5)(C); or’’; 
(C) by striking subparagraph (C); and 
(D) by redesignating subparagraph (D) as 
subparagraph (C). 
(13) in paragraph (15) (as so redesignated), by 
striking ‘‘adult or dislocated worker’’ and inserting 
‘‘individual’’; 
(14) in paragraph (25)— 
(A) in subparagraph (B), by striking 
‘‘higher of—’’ and all that follows through 
clause (ii) and inserting ‘‘poverty line for an 
equivalent period;’’;
(B) by redesignating subparagraphs (D) 
through (F) as subparagraphs (E) through (G), 
respectively; and 
(C) by inserting after subparagraph (C) 
the following: 
‘‘(D) receives or is eligible to receive free 
or reduced price lunch under the Richard B. 
Russell National School Lunch Act (42 U.S.C. 
1751 et seq.);’’; 
(15) in paragraph (32), by striking ‘‘the Repub-
lic of the Marshall Islands, the Federated States of 
Micronesia,’’; 
(16) by amending paragraph (33) to read as 
follows: 
‘‘(33) OUT-OF-SCHOOL YOUTH.—The term ‘out- 
of-school youth’ means— 
‘‘(A) an at-risk youth who is a school drop-
out; or 
‘‘(B) an at-risk youth who has received a 
secondary school diploma or its recognized 
equivalent but is basic skills deficient, unem-
ployed, or underemployed.’’. 
(17) 
in 
paragraph 
(38), 
by 
striking 
‘‘134(a)(1)(A)’’ and inserting ‘‘134(a)(1)(B)’’;
(18) by amending paragraph (49) to read as 
follows: 
‘‘(49) VETERAN.—The term ‘veteran’ has the 
same meaning given the term in section 2108(1) of 
title 5, United States Code.’’; 
(19) by amending paragraph (50) to read as 
follows: 
‘‘(50) CAREER AND TECHNICAL EDUCATION.— 
The term ‘career and technical education’ has the 
meaning given the term in section 3 of the Carl D. 
Perkins Career and Technical Education Act of 
2006 (20 U.S.C. 2302).’’; 
(20) in paragraph (51) by striking ‘‘, and a 
youth activity’’; and 
(21) by adding at the end the following: 
‘‘(52) AT-RISK YOUTH.—Except as provided in 
subtitle C, the term ‘at-risk youth’ means an indi-
vidual who— 
‘‘(A) is not less than age 16 and not more 
than age 24; 
‘‘(B) is a low-income individual; and 
‘‘(C) is an individual who is one or more 
of the following: 
‘‘(i) a secondary school dropout;
‘‘(ii) a youth in foster care (including 
youth aging out of foster care); 
‘‘(iii) a youth offender; 
‘‘(iv) a youth who is an individual 
with a disability; or 
‘‘(v) a migrant youth. 
‘‘(53) INDUSTRY OR SECTOR PARTNERSHIP.— 
The term ‘industry or sector partnership’ means a 
partnership of a State or local board and one or 
more industries and other entities that have the ca-
pability to help the State or local board determine 
the immediate and long term skilled workforce needs 
of in-demand industries and other occupations im-
portant to the State or local economy, respectively. 
‘‘(54) INDUSTRY-RECOGNIZED
CREDENTIAL.— 
The term ‘industry-recognized credential’ means a 
credential that is sought or accepted by companies 
within the industry sector involved, across multiple 
States, as recognized, preferred, or required for re-
cruitment, screening, or hiring. 
‘‘(55) RECOGNIZED POSTSECONDARY CREDEN-
TIAL.—The term ‘recognized postsecondary creden-
tial’ means a credential awarded by a training pro-
vider or postsecondary educational institution based 
on completion of all requirements for a program of
study, including coursework or tests or other per-
formance evaluations. The term includes an indus-
try-recognized credential, a certificate of completion 
of an apprenticeship, or an associate or bacca-
laureate degree. 
‘‘(56) 
PAY-FOR-PERFORMANCE
CONTRACT 
STRATEGY.—The term ‘pay-for-performance contract 
strategy’ means a strategy in which a pay-for-per-
formance contract to provide a program of employ-
ment and training activities incorporates— 
‘‘(A) the core indicators of performance de-
scribed in subclauses (I) through (IV) of section 
136(b)(2)(A)(i); 
‘‘(B) a fixed amount that will be paid to 
an eligible provider of such employment and 
training activities for each program participant 
who, within a defined timetable, achieves the 
agreed to levels of performance based upon the 
core indicators of performance described in sub-
paragraph (A), and may include a bonus pay-
ment to such provider which may be used to ex-
pand the capacity of such provider; 
‘‘(C) the ability for an eligible provider to 
recoup the costs of training a program partici-
pant who has not met such core indicators of
performance, but for whom the provider is able 
to demonstrate that such participant gained 
specific competencies required for education 
and career advancement that are, where fea-
sible, tied to industry-recognized credentials 
and related standards, or State licensing re-
quirements; and 
‘‘(D) the ability for an eligible provider 
that does not meet the requirements under sec-
tion 122(a)(2) to participate in such pay-for- 
performance contract and to not be required to 
report on the performance and cost information 
required under section 122(d).’’. 
Subtitle B—Statewide and Local 
Workforce Investment Systems 
SEC. 102. PURPOSE. 
Section 106 (29 U.S.C. 2811) is amended by adding 
at the end the following: ‘‘It is also the purpose of this 
subtitle to provide workforce investment activities in a 
manner that enhances employer engagement, promotes 
customer choices in the selection of training services, and 
ensures accountability in the use of the taxpayer funds.’’. 
SEC. 103. STATE WORKFORCE INVESTMENT BOARDS. 
Section 111 (29 U.S.C. 2821) is amended— 
(1) in subsection (b)—
(A) in paragraph (1)— 
(i) by striking subparagraph (B); 
(ii) by redesignating subparagraph 
(C) as subparagraph (B); and 
(iii) in subparagraph (B) (as so redes-
ignated)— 
(I) by amending clause (i)(I), by 
striking ‘‘section 117(b)(2)(A)(i)’’ and 
inserting ‘‘section 117(b)(2)(A)’’; 
(II) by amending clause (i)(II) to 
read as follows: 
‘‘(II) represent businesses, in-
cluding large and small businesses, 
with immediate and long-term employ-
ment opportunities in in-demand in-
dustries and other occupations impor-
tant to the State economy; and’’; 
(III) by striking clause (iii) and 
inserting the following: 
‘‘(iii) a State agency official respon-
sible for economic development; and’’; 
(IV) by striking clauses (iv) 
through (vi); 
(V) by amending clause (vii) to 
read as follows:
‘‘(vii) such other representatives and 
State agency officials as the Governor may 
designate, including— 
‘‘(I) members of the State legis-
lature; 
‘‘(II) representatives of individ-
uals and organizations that have expe-
rience with respect to youth activities; 
‘‘(III) representatives of individ-
uals and organizations that have expe-
rience and expertise in the delivery of 
workforce investment activities, in-
cluding chief executive officers of com-
munity colleges and community-based 
organizations within the State; 
‘‘(IV) representatives of the lead 
State agency officials with responsi-
bility for the programs and activities 
that are described in section 121(b) 
and carried out by one-stop partners; 
or 
‘‘(V) representatives of veterans 
service organizations.’’; and 
(VI) by redesignating clause (vii) 
(as so amended) as clause (iv); and
(B) by amending paragraph (3) to read as 
follows: 
‘‘(3) MAJORITY.—A 2⁄3 majority of the mem-
bers of the board shall be representatives described 
in paragraph (1)(B)(i).’’; 
(2) in subsection (c), by striking ‘‘(b)(1)(C)(i)’’ 
and inserting ‘‘(b)(1)(B)(i)’’; 
(3) by amending subsection (d) to read as fol-
lows: 
‘‘(d) FUNCTIONS.—The State board shall assist the 
Governor of the State as follows: 
‘‘(1) STATE
PLAN.—Consistent with section 
112, develop a State plan. 
‘‘(2) STATEWIDE
WORKFORCE
DEVELOPMENT 
SYSTEM.—Review and develop statewide policies and 
programs in the State in a manner that supports a 
comprehensive Statewide workforce development sys-
tem that will result in meeting the workforce needs 
of the State and its local areas. Such review shall in-
clude determining whether the State should consoli-
date additional programs into the Workforce Invest-
ment Fund in accordance with section 501(e). 
‘‘(3) WORKFORCE AND LABOR MARKET INFOR-
MATION
SYSTEM.—Develop a statewide workforce 
and labor market information system described in
section 15(e) of the Wagner-Peyser Act, which may 
include using existing information conducted by the 
State economic development entity or related entity 
in developing such system. 
‘‘(4) EMPLOYER ENGAGEMENT.—Develop strat-
egies across local areas that meet the needs of em-
ployers and support economic growth in the State by 
enhancing communication, coordination, and collabo-
ration among employers, economic development enti-
ties, and service providers. 
‘‘(5) DESIGNATION
OF
LOCAL
AREAS.—Des-
ignate local areas as required under section 116. 
‘‘(6) ONE-STOP
DELIVERY
SYSTEM.—Identify 
and disseminate information on best practices for ef-
fective operation of one-stop centers, including use 
of innovative business outreach, partnerships, and 
service delivery strategies. 
‘‘(7) PROGRAM OVERSIGHT.—Conduct the fol-
lowing program oversight: 
‘‘(A) Reviewing and approving local plans 
under section 118. 
‘‘(B) Ensuring the appropriate use and 
management of the funds provided for State 
employment and training activities authorized 
under section 134.
‘‘(C) Preparing an annual report to the 
Secretary described in section 136(d). 
‘‘(8) DEVELOPMENT OF PERFORMANCE MEAS-
URES.—Develop and ensure continuous improvement 
of comprehensive State performance measures, in-
cluding State adjusted levels of performance, as de-
scribed under section 136(b).’’; 
(4) by striking subsection (e) and redesignating 
subsection (f) as subsection (e); 
(5) in subsection (e) (as so redesignated), by in-
serting ‘‘or participate in any action taken’’ after 
‘‘vote’’; 
(6) by inserting after subsection (e) (as so re-
designated), the following: 
‘‘(f) STAFF.—The State board may employ staff to 
assist in carrying out the functions described in subsection 
(d).’’; and 
(7) in subsection (g), by inserting ‘‘electronic 
means and’’ after ‘‘on a regular basis through’’. 
SEC. 104. STATE PLAN. 
Section 112 (29 U.S.C. 2822)— 
(1) in subsection (a)— 
(A) by striking ‘‘127 or’’; and 
(B) by striking ‘‘5-year strategy’’ and in-
serting ‘‘3-year strategy’’;
(2) in subsection (b)— 
(A) by amending paragraph (4) to read as 
follows: 
‘‘(4) information describing— 
‘‘(A) the economic conditions in the State; 
‘‘(B) the immediate and long-term skilled 
workforce needs of in-demand industries, small 
businesses, and other occupations important to 
the State economy; 
‘‘(C) the knowledge and skills of the work-
force in the State; and 
‘‘(D) workforce development activities (in-
cluding education and training) in the State;’’; 
(B) by amending paragraph (7) to read as 
follows: 
‘‘(7) a description of the State criteria for de-
termining the eligibility of training providers in ac-
cordance with section 122, including how the State 
will take into account the performance of providers 
and whether the training programs relate to occupa-
tions that are in-demand;’’; 
(C) by amending paragraph (8) to read as 
follows: 
‘‘(8)(A) a description of the procedures that will 
be taken by the State to assure coordination of, and
avoid duplication among, the programs and activities 
identified under section 501(b)(2); and 
‘‘(B) a description of common data collection 
and reporting processes used for the programs and 
activities described in subparagraph (A), which are 
carried out by one-stop partners, including— 
‘‘(i) assurances that such processes use 
quarterly wage records for performance meas-
ures described in section 136(b)(2)(A) that are 
applicable to such programs or activities; or 
‘‘(ii) if such wage records are not being 
used for the performance measures, an identi-
fication of the barriers to using such wage 
records and a description of how the State will 
address such barriers within one year of the ap-
proval of the plan;’’; 
(D) in paragraph (9), by striking ‘‘, includ-
ing comment by representatives of businesses 
and representatives of labor organizations,’’; 
(E) in paragraph (11), by striking ‘‘under 
sections 127 and 132’’ and inserting ‘‘under 
section 132’’; 
(F) by striking paragraph (12);
(G) by redesignating paragraphs (13) 
through (18) as paragraphs (12) through (17), 
respectively; 
(H) in paragraph (12) (as so redesig-
nated), by striking ‘‘111(f)’’ and inserting 
‘‘111(e)’’; 
(I) in paragraph (13) (as so redesignated), 
by striking ‘‘134(c)’’ and inserting ‘‘121(e)’’; 
(J) in paragraph (14) (as so redesignated), 
by 
striking 
‘‘116(a)(5)’’ 
and 
inserting 
‘‘116(a)(4)’’; 
(K) in paragraph (16) (as so redesig-
nated)— 
(i) in subparagraph (A)— 
(I) in clause (ii), by striking ‘‘to 
dislocated workers’’; 
(II) in clause (iii), by striking 
‘‘134(d)(4)’’ 
and 
inserting 
‘‘134(c)(4)’’; 
(III) by striking ‘‘and’’ at the 
end of clause (iii); 
(IV) by amending clause (iv) to 
read as follows: 
‘‘(iv) how the State will serve the em-
ployment and training needs of dislocated
workers (including displaced homemakers), 
low-income individuals (including recipients 
of public assistance such as supplemental 
nutrition assistance program benefits pur-
suant to the Food and Nutrition Act of 
2008 (7 U.S.C. 2011 et seq.)), long-term 
unemployed individuals (including individ-
uals who have exhausted entitlement to 
State and Federal unemployment com-
pensation), English learners, homeless in-
dividuals, individuals training for nontradi-
tional employment, youth (including out-of- 
school youth and at-risk youth), older 
workers, ex-offenders, migrant and sea-
sonal farmworkers, refugee and entrants, 
veterans (including disabled and homeless 
veterans), and Native Americans; and’’; 
and 
(V) by adding at the end the fol-
lowing new clause: 
‘‘(v) how the State will— 
‘‘(I) consistent with section 188 
and Executive Order No. 13217 (42 
U.S.C. 12131 note), serve the employ-
ment and training needs of individuals 
with disabilities; and 
‘‘(II) consistent with sections 504 
and 508 of the Rehabilitation Act of 
1973, include the provision of out-
reach, intake, assessments, and serv-
ice delivery, the development of per-
formance measures, the training of 
staff, and other aspects of accessibility 
to programs and services under this 
subtitle;’’; and 
(ii) in subparagraph (B), by striking 
‘‘to the extent practicable’’ and inserting 
‘‘in accordance with the requirements of 
the Jobs for Veterans Act (Public Law 
107–288) and the amendments made by 
such Act’’; and 
(L) by striking paragraph (17) (as so re-
designated) and inserting the following: 
‘‘(17) a description of the strategies and serv-
ices that will be used in the State— 
‘‘(A) to more fully engage employers, in-
cluding small businesses and employers in in- 
demand industries and occupations important 
to the State economy;
‘‘(B) to meet the needs of employers in the 
State; and 
‘‘(C) to better coordinate workforce devel-
opment programs with economic development 
activities; 
‘‘(18) a description of how the State board will 
convene (or help to convene) industry or sector part-
nerships that lead to collaborative planning, resource 
alignment, and training efforts across multiple firms 
for a range of workers employed or potentially em-
ployed by a targeted industry cluster— 
‘‘(A) to encourage industry growth and 
competitiveness and to improve worker training, 
retention, and advancement in targeted indus-
try clusters; 
‘‘(B) to address the immediate and long- 
term skilled workforce needs of in-demand in-
dustries and other occupations important to the 
State economy, and 
‘‘(C) to address critical skill gaps within 
and across industries; 
‘‘(19) a description of how the State will utilize 
technology to facilitate access to services in remote 
areas, which may be used throughout the State;
‘‘(20) a description of the State strategy and 
assistance to be provided for encouraging regional 
cooperation within the State and across State bor-
ders, as appropriate; 
‘‘(21) a description of the actions that will be 
taken by the State to foster communication, coordi-
nation, and partnerships with non-profit organiza-
tions (including public libraries, community, faith- 
based, and philanthropic organizations) that provide 
employment-related, training, and complementary 
services, to enhance the quality and comprehensive-
ness of services available to participants under this 
title; 
‘‘(22) a description of the process and method-
ology for determining— 
‘‘(A) one-stop partner program contribu-
tions for the cost of the infrastructure of one- 
stop centers under section 121(h)(1); and 
‘‘(B) the formula for allocating such infra-
structure funds to local areas under section 
121(h)(3); 
‘‘(23) a description of the strategies and serv-
ices that will be used in the State to assist at-risk 
youth and out-of-school youth in acquiring the edu-
cation and skills, credentials (including recognized
postsecondary credentials and industry-recognized 
credentials), and employment experience to succeed 
in the labor market, including— 
‘‘(A) training and internships in in-demand 
industries or occupations important to the State 
and local economy; 
‘‘(B) dropout recovery activities that are 
designed to lead to the attainment of a regular 
secondary school diploma or its recognized 
equivalent, or other State recognized equivalent 
(including recognized alternative standards for 
individuals with disabilities); and 
‘‘(C) activities combining remediation of 
academic skills, work readiness training, and 
work experience, and including linkages to post-
secondary education and training and career- 
ladder employment; and 
‘‘(24) a description of— 
‘‘(A) how the State will furnish employ-
ment, training, including training in advanced 
manufacturing, supportive, and placement serv-
ices to veterans, including disabled and home-
less veterans; 
‘‘(B) the strategies and services that will 
be used in the State to assist and expedite re-
integration of homeless veterans into the labor 
force; and 
‘‘(C) the veteran population to be served in 
the State.’’; 
(3) in subsection (c), by striking ‘‘period, 
that—’’ and all that follows through paragraph (2) 
and inserting ‘‘period, that the plan is inconsistent 
with the provisions of this title.’’; and 
(4) in subsection (d), by striking ‘‘5-year’’ and 
inserting ‘‘3-year’’. 
SEC. 105. LOCAL WORKFORCE INVESTMENT AREAS. 
Section 116 (29 U.S.C. 2831) is amended— 
(1) in subsection (a)— 
(A) by amending paragraph (1) to read as 
follows: 
‘‘(1) IN GENERAL.— 
‘‘(A) PROCESS.—In order to receive an al-
lotment under section 132, a State, through the 
State board, shall establish a process to des-
ignate local workforce investment areas within 
the State. Such process shall— 
‘‘(i) support the statewide workforce 
investment system developed under section 
111(d)(2) that will meet the workforce 
needs of the State and its local areas;
‘‘(ii) include prior consultation with 
chief elected officials; 
‘‘(iii) 
consider 
comments 
received 
through the public comment process as de-
scribed in section 112(b)(9); and 
‘‘(iv) require the submission of an ap-
proved application under subparagraph 
(B). 
‘‘(B) APPLICATION.—To be designated as 
a local area under this paragraph, a local or re-
gional board (or consortiums of local or regional 
boards) shall submit an application to a State 
board at such time, in such manner, and con-
taining such information as the State board 
may require, including— 
‘‘(i) a description of the local area, in-
cluding the population that will be served 
by the local area, and the education and 
training needs of its employers and work-
ers; 
‘‘(ii) a description of how the local 
area is consistent or aligned with— 
‘‘(I) service delivery areas; 
‘‘(II) labor market areas; and
‘‘(III) economic development re-
gions; 
‘‘(iii) a description of the eligible pro-
viders of education and training, including 
postsecondary educational institutions such 
as community colleges, located in the local 
area available to meet the needs of the 
local workforce; 
‘‘(iv) a description of the distance that 
individuals will need to travel to receive 
services provided in such local area; and 
‘‘(v) any other criteria that the State 
board may require. 
‘‘(C) 
PRIORITY.—In 
designating 
local 
areas under this paragraph, a State board shall 
give priority consideration to applicants dem-
onstrating that a designation as a local area 
under this paragraph will result in the reduc-
tion of overlapping service delivery areas, local 
market areas, or economic development regions. 
‘‘(D) ALIGNMENT WITH LOCAL PLAN.—A 
State may designate an applicant as a local 
area under this paragraph for a period not to 
exceed 3 years.’’.
(B) by amending paragraph (2) to read as 
follows: 
‘‘(2) TECHNICAL ASSISTANCE.—The Secretary 
shall, if requested by the Governor of a State, pro-
vide the State with technical assistance in making 
the determinations required under paragraph (1). 
The Secretary shall not issue regulations governing 
determinations to be made under paragraph (1).’’; 
(C) by striking paragraph (3); 
(D) by striking paragraph (4); 
(E) by redesignating paragraph (5) as 
paragraph (3); and 
(F) in paragraph (3) (as so redesignated), 
by striking ‘‘(2) or (3)’’ both places it appears 
and inserting ‘‘(1)’’; 
(2) by amending subsection (b) to read as fol-
lows: 
‘‘(b) SINGLE STATES.—Consistent with subsection 
(a), the State board of a State may designate the State 
as a single State local area for the purposes of this title.’’; 
and 
(3) in subsection (c)— 
(A) in paragraph (1), by adding at the end 
the following: ‘‘The State may require the local 
boards for the designated region to prepare a
single regional plan that incorporates the ele-
ments of the local plan under section 118 and 
that is submitted and approved in lieu of sepa-
rate local plans under such section.’’; and 
(B) in paragraph (2), by striking ‘‘employ-
ment statistics’’ and inserting ‘‘workforce and 
labor market information’’. 
SEC. 106. LOCAL WORKFORCE INVESTMENT BOARDS. 
Section 117 (29 U.S.C. 2832) is amended— 
(1) in subsection (b)— 
(A) in paragraph (2)— 
(i) in subparagraph (A)— 
(I) by striking ‘‘include—’’ and 
all that follows through ‘‘representa-
tives’’ and inserting ‘‘include rep-
resentatives’’; 
(II) 
by 
striking 
clauses 
(ii) 
through (vi); 
(III) by redesignating subclauses 
(I) through (III) as clauses (i) 
through (iii), respectively (and by 
moving the margins of such clauses 2 
ems to the left);
(IV) by striking clause (ii) (as so 
redesignated) and inserting the fol-
lowing: 
‘‘(ii) represent businesses, including 
large and small businesses, with immediate 
and long-term employment opportunities in 
in-demand industries and other occupa-
tions important to the local economy; 
and’’; and 
(V) by striking the semicolon at 
the end of clause (iii) (as so redesig-
nated) and inserting ‘‘; and’’; and 
(ii) by amending subparagraph (B) to 
read as follows: 
‘‘(B) may include such other individuals or 
representatives of entities as the chief elected 
official in the local area may determine to be 
appropriate, including— 
‘‘(i) a superintendent of the local sec-
ondary school system, the president or 
chief executive officer of a postsecondary 
educational institution (including a com-
munity college, where such an entity ex-
ists), or an administrator of local entities
providing adult education and literacy ac-
tivities; 
‘‘(ii) representatives of community- 
based organizations (including organiza-
tions representing individuals with disabil-
ities and veterans, for a local area in which 
such organizations are present); or 
‘‘(iii) representatives of veterans serv-
ice organizations.’’; 
(B) in paragraph (4)— 
(i) by striking ‘‘A majority’’ and in-
serting ‘‘A 2⁄3 majority’’; and 
(ii) by striking ‘‘(2)(A)(i)’’ and insert-
ing ‘‘(2)(A)’’; and 
(C) 
in 
paragraph 
(5) 
by 
striking 
‘‘(2)(A)(i)’’ and inserting ‘‘(2)(A)’’; 
(2) by striking subsection (c)(1)(C); 
(3) by amending subsection (d) to read as fol-
lows: 
‘‘(d) FUNCTIONS OF LOCAL BOARD.—The functions 
of the local board shall include the following: 
‘‘(1) LOCAL
PLAN.—Consistent with section 
118, each local board, in partnership with the chief 
elected official for the local area involved, shall de-
velop and submit a local plan to the Governor.
‘‘(2) WORKFORCE
RESEARCH
AND
REGIONAL 
LABOR MARKET ANALYSIS.— 
‘‘(A) IN
GENERAL.—The local board 
shall— 
‘‘(i) conduct, and regularly update, an 
analysis of— 
‘‘(I) the economic conditions in 
the local area; 
‘‘(II) the immediate and long- 
term skilled workforce needs of in-de-
mand industries and other occupa-
tions important to the local economy; 
‘‘(III) the knowledge and skills of 
the workforce in the local area; and 
‘‘(IV) workforce development ac-
tivities (including education and train-
ing) in the local area; and 
‘‘(ii) assist the Governor in developing 
the statewide workforce and labor market 
information system described in section 
15(e) of the Wagner-Peyser Act. 
‘‘(B) EXISTING ANALYSIS.—A local board 
shall use existing analysis by the local economic 
development entity or related entity in order to 
carry out requirements of subparagraph (A)(i).
‘‘(3) 
EMPLOYER
ENGAGEMENT.—The 
local 
Board shall meet the needs of employers and sup-
port economic growth in the local area by enhancing 
communication, 
coordination, 
and 
collaboration 
among employers, economic development entities, 
and service providers. 
‘‘(4) BUDGET AND ADMINISTRATION.— 
‘‘(A) BUDGET.— 
‘‘(i) IN
GENERAL.—The local board 
shall develop a budget for the activities of 
the local board in the local area, consistent 
with the requirements of this subsection. 
‘‘(ii) TRAINING RESERVATION.—In de-
veloping a budget under clause (i), the 
local board shall reserve a percentage of 
funds to carry out the activities specified 
in section 134(c)(4). The local board shall 
use the analysis conducted under para-
graph (2)(A)(i) to determine the appro-
priate percentage of funds to reserve under 
this clause. 
‘‘(B) ADMINISTRATION.— 
‘‘(i) GRANT RECIPIENT.— 
‘‘(I) IN
GENERAL.—The chief 
elected official in a local area shall
serve as the local grant recipient for, 
and shall be liable for any misuse of, 
the grant funds allocated to the local 
area under section 133, unless the 
chief elected official reaches an agree-
ment with the Governor for the Gov-
ernor to act as the local grant recipi-
ent and bear such liability. 
‘‘(II) DESIGNATION.—In order to 
assist in administration of the grant 
funds, the chief elected official or the 
Governor, where the Governor serves 
as the local grant recipient for a local 
area, may designate an entity to serve 
as a local grant subrecipient for such 
funds or as a local fiscal agent. Such 
designation shall not relieve the chief 
elected official or the Governor of the 
liability for any misuse of grant funds 
as described in subclause (I). 
‘‘(III) 
DISBURSAL.—The 
local 
grant recipient or an entity designated 
under subclause (II) shall disburse the 
grant funds for workforce investment 
activities at the direction of the local
board, pursuant to the requirements 
of this title. The local grant recipient 
or entity designated under subclause 
(II) shall disburse the funds imme-
diately on receiving such direction 
from the local board. 
‘‘(ii) STAFF.—The local board may 
employ staff to assist in carrying out the 
functions described in this subsection. 
‘‘(iii) GRANTS AND DONATIONS.—The 
local board may solicit and accept grants 
and donations from sources other than 
Federal funds made available under this 
Act. 
‘‘(5) SELECTION
OF
OPERATORS
AND
PRO-
VIDERS.— 
‘‘(A) SELECTION
OF
ONE-STOP
OPERA-
TORS.—Consistent with section 121(d), the 
local board, with the agreement of the chief 
elected official— 
‘‘(i) shall designate or certify one-stop 
operators 
as 
described 
in 
section 
121(d)(2)(A); and 
‘‘(ii) may terminate for cause the eli-
gibility of such operators.
‘‘(B) IDENTIFICATION OF ELIGIBLE TRAIN-
ING SERVICE PROVIDERS.—Consistent with this 
subtitle, the local board shall identify eligible 
providers of training services described in sec-
tion 134(c)(4) in the local area, annually review 
the outcome of each such eligible provider using 
the criteria under section 122(b)(2), and des-
ignate eligible providers in the local area who 
have demonstrated the highest level of success 
with respect to such criteria as priority eligible 
providers for the following program year. 
‘‘(C) IDENTIFICATION OF ELIGIBLE PRO-
VIDERS
OF
WORK
READY
SERVICES.—If the 
one-stop operator does not provide the services 
described in section 134(c)(2) in the local area, 
the local board shall identify eligible providers 
of such services in the local area by awarding 
contracts. 
‘‘(6) PROGRAM OVERSIGHT.—The local board, 
in partnership with the chief elected official, shall be 
responsible for— 
‘‘(A) ensuring the appropriate use and 
management of the funds provided for local em-
ployment and training activities authorized 
under section 134(b); and
‘‘(B) conducting oversight of the one-stop 
delivery system in the local area authorized 
under section 121. 
‘‘(7) NEGOTIATION
OF
LOCAL
PERFORMANCE 
MEASURES.—The local board, the chief elected offi-
cial, and the Governor shall negotiate and reach 
agreement on local performance measures as de-
scribed in section 136(c). 
‘‘(8) TECHNOLOGY IMPROVEMENTS.—The local 
board shall develop strategies for technology im-
provements to facilitate access to services authorized 
under this subtitle and carried out in the local area, 
including in remote areas.’’; 
(4) in subsection (e)— 
(A) by inserting ‘‘electronic means and’’ 
after ‘‘regular basis through’’; and 
(B) by striking ‘‘and the award of grants 
or contracts to eligible providers of youth activi-
ties,’’; 
(5) in subsection (f)— 
(A) in paragraph (1)(A), by striking ‘‘sec-
tion 
134(d)(4)’’ 
and 
inserting 
‘‘section 
134(c)(4)’’; and 
(B) by striking paragraph (2) and insert-
ing the following:
‘‘(2) WORK READY SERVICES, DESIGNATION, OR 
CERTIFICATION AS ONE-STOP OPERATORS.—A local 
board may provide work ready services described in 
section 134(c)(2) through a one-stop delivery system 
described in section 121 or be designated or certified 
as a one-stop operator only with the agreement of 
the chief elected official and the Governor.’’; 
(6) in subsection (g)(1), by inserting ‘‘or par-
ticipate in any action taken’’ after ‘‘vote’’; and 
(7) by striking subsections (h) and (i). 
SEC. 107. LOCAL PLAN. 
Section 118 (29 U.S.C. 2833) is amended— 
(1) in subsection (a), by striking ‘‘5-year’’ and 
inserting ‘‘3-year’’; 
(2) by amending subsection (b) to read as fol-
lows: 
‘‘(b) CONTENTS.—The local plan shall include— 
‘‘(1) a description of the analysis of the local 
area’s economic and workforce conditions conducted 
under section 117(d)(2)(A)(i), and an assurance 
that the local board will use such analysis to carry 
out the activities under this subtitle; 
‘‘(2) a description of the one-stop delivery sys-
tem in the local area, including—
‘‘(A) a description of how the local board 
will ensure— 
‘‘(i) the continuous improvement of el-
igible providers of services through the sys-
tem; and 
‘‘(ii) that such providers meet the em-
ployment needs of local businesses and 
participants; and 
‘‘(B) a description of how the local board 
will facilitate access to services provided 
through the one-stop delivery system consistent 
with section 117(d)(8); 
‘‘(3) a description of the strategies and services 
that will be used in the local area— 
‘‘(A) to more fully engage employers, in-
cluding small businesses and employers in in- 
demand industries and occupations important 
to the local economy; 
‘‘(B) to meet the needs of employers in the 
local area; 
‘‘(C) to better coordinate workforce devel-
opment programs with economic development 
activities; and 
‘‘(D) to better coordinate workforce devel-
opment programs with employment, training,
and literacy services carried out by nonprofit 
organizations, including public libraries, as ap-
propriate; 
‘‘(4) a description of how the local board will 
convene (or help to convene) industry or sector part-
nerships that lead to collaborative planning, resource 
alignment, and training efforts across multiple firms 
for a range of workers employed or potentially em-
ployed by a targeted industry cluster— 
‘‘(A) to encourage industry growth and 
competitiveness and to improve worker training, 
retention, and advancement in targeted indus-
try clusters; 
‘‘(B) to address the immediate and long- 
term skilled workforce needs of in-demand in-
dustries, small businesses, and other occupa-
tions important to the local economy; and 
‘‘(C) to address critical skill gaps within 
and across industries; 
‘‘(5) a description of how the funds reserved 
under section 117(d)(4)(A)(ii) will be used to carry 
out activities described in section 134(c)(4); 
‘‘(6) a description of how the local board will 
coordinate workforce investment activities carried
out in the local area with statewide activities, as ap-
propriate; 
‘‘(7) a description of how the local area will— 
‘‘(A) coordinate activities with the local 
area’s disability community and with services 
provided under section 614(d)(1)(A)(i)(VIII) of 
the Individuals with Disabilities Education Act 
(20 U.S.C. 1414(d)(1)(A)(i)(VIII)) by local 
educational agencies serving such local area to 
make 
available 
comprehensive, 
high-quality 
services to individuals with disabilities; 
‘‘(B) consistent with section 188 and Exec-
utive Order No. 13217 (42 U.S.C. 12131 note), 
serve the employment and training needs of in-
dividuals with disabilities, with a focus on em-
ployment that fosters independence and integra-
tion; and 
‘‘(C) consistent with sections 504 and 508 
of the Rehabilitation Act of 1973, include the 
provision of outreach, intake, assessments, and 
service delivery, the development of perform-
ance measures, the training of staff, and other 
aspects of accessibility to programs and services 
under this subtitle;
‘‘(8) a description of the local levels of perform-
ance negotiated with the Governor and chief elected 
official pursuant to section 136(c), to be— 
‘‘(A) used to measure the performance of 
the local area; and 
‘‘(B) used by the local board for measuring 
performance of the local fiscal agent (where ap-
propriate), eligible providers, and the one-stop 
delivery system, in the local area; 
‘‘(9) a description of the process used by the 
local board, consistent with subsection (c), to provide 
an opportunity for public comment prior to submis-
sion of the plan; 
‘‘(10) a description of how the local area will 
serve the employment and training needs of dis-
located workers (including displaced homemakers), 
low-income individuals (including recipients of public 
assistance such as the Supplemental Nutrition As-
sistance Program), long-term unemployed individ-
uals (including individuals who have exhausted enti-
tlement to State and Federal unemployment com-
pensation), English learners, homeless individuals, 
individuals training for nontraditional employment, 
youth (including out-of-school youth and at-risk 
youth), older workers, ex-offenders, migrant and sea-
sonal farmworkers, refugee and entrants, veterans 
(including disabled veterans and homeless veterans), 
and Native Americans; 
‘‘(11) an identification of the entity responsible 
for the disbursal of grant funds described in sub-
clause (III) of section 117(d)(4)(B)(i), as deter-
mined by the chief elected official or the Governor 
under such section; 
‘‘(12) a description of the strategies and serv-
ices that will be used in the local area to assist at- 
risk youth and out-of-school youth in acquiring the 
education and skills, credentials (including recog-
nized postsecondary credentials and industry-recog-
nized credentials), and employment experience to 
succeed in the labor market, including— 
‘‘(A) training and internships in in-demand 
industries or occupations important to the local 
economy; 
‘‘(B) dropout recovery activities that are 
designed to lead to the attainment of a regular 
secondary school diploma or its recognized 
equivalent, or other State recognized equivalent 
(including recognized alternative standards for 
individuals with disabilities); and
‘‘(C) activities combining remediation of 
academic skills, work readiness training, and 
work experience, and including linkages to post-
secondary education and training and career- 
ladder employment; 
‘‘(13) a description of— 
‘‘(A) how the local area will furnish em-
ployment, training, including training in ad-
vanced manufacturing, supportive, and place-
ment services to veterans, including disabled 
and homeless veterans; 
‘‘(B) the strategies and services that will 
be used in the local area to assist and expedite 
reintegration of homeless veterans into the 
labor force; and 
‘‘(C) the veteran population to be served in 
the local area; 
‘‘(14) a description of— 
‘‘(A) the duties assigned to the veteran 
employment specialist consistent with the re-
quirements of section 134(f); 
‘‘(B) the manner in which the veteran em-
ployment specialist is integrated into the One- 
Stop Career System described in section 121;
‘‘(C) the date on which the veteran em-
ployment specialist was assigned; and 
‘‘(D) whether the veteran employment spe-
cialist has satisfactorily competed such training 
by the National Veterans’ Employment and 
Training Services Institute; and 
‘‘(15) such other information as the Governor 
may require.’’; 
(3) in subsection (c)(1), by striking ‘‘such 
means’’ and inserting ‘‘electronic means such’’; and 
(4) in subsection (c)(2), by striking ‘‘, including 
representatives of business and representatives of 
labor organizations,’’. 
SEC. 108. ESTABLISHMENT OF ONE-STOP DELIVERY SYS-
TEM. 
Section 121 (29 U.S.C. 2841) is amended— 
(1) in subsection (b)— 
(A) by striking subparagraph (A) of para-
graph (1) and inserting the following: 
‘‘(A) ROLES
AND
RESPONSIBILITIES
OF 
ONE-STOP PARTNERS.—Each entity that carries 
out a program or activities described in sub-
paragraph (B) shall— 
‘‘(i) provide access through the one- 
stop delivery system to the program and
activities carried out by the entity, includ-
ing making the work ready services de-
scribed in section 134(c)(2) that are appli-
cable to the program of the entity available 
at one-stop centers (in addition to any 
other appropriate locations); 
‘‘(ii) use a portion of the funds avail-
able to the program of the entity to main-
tain the one-stop delivery system, including 
payment of the infrastructure costs of one- 
stop centers in accordance with subsection 
(h); 
‘‘(iii) enter into a local memorandum 
of understanding with the local board re-
lating to the operation of the one-stop de-
livery system that meets the requirements 
of subsection (c); and 
‘‘(iv) participate in the operation of 
the one-stop delivery system consistent 
with the terms of the memorandum of un-
derstanding, the requirements of this title, 
and the requirements of the Federal laws 
authorizing the programs carried out by 
the entity.’’; 
(B) in paragraph (1)(B)—
(i) by striking clauses (ii), (v), and 
(vi); 
(ii) by redesignating clauses (iii) and 
(iv) as clauses (ii) and (iii), respectively; 
(iii) by redesignating clauses (vii) 
through (xii) as clauses (iv) through (ix), 
respectively; 
(iv) in clause (viii), as so redesig-
nated, by striking ‘‘and’’ at the end; 
(v) in clause (ix), as so redesignated, 
by striking the period and inserting ‘‘; 
and’’; and 
(vi) by adding at the end the fol-
lowing: 
‘‘(x) subject to subparagraph (C), pro-
grams authorized under part A of title IV 
of the Social Security Act (42 U.S.C. 601 
et seq.).’’; 
(C) by inserting after paragraph (1)(B) 
the following: 
‘‘(C) 
DETERMINATION
BY
THE
GOV-
ERNOR.—Each entity carrying out a program 
described in subparagraph (B)(x) shall carry 
out the required partner activities described in 
subparagraph (A) unless the Governor of the
State in which the local area is located provides 
the Secretary and Secretary of Health and 
Human Services written notice of a determina-
tion by the Governor that such entities shall not 
carry out such required partner activities.’’; and 
(D) in paragraph (2)— 
(i) in subparagraph (A)(i), by striking 
‘‘section 134(d)(2)’’ and inserting ‘‘section 
134(c)(2)’’; and 
(ii) in subparagraph (B)— 
(I) by striking clauses (i), (ii), 
and (v); 
(II) in clause (iv), by striking 
‘‘and’’ at the end; 
(III) by redesignating clauses 
(iii) and (iv) as clauses (i) and (ii), re-
spectively; and 
(IV) by adding at the end the fol-
lowing: 
‘‘(iii) employment and training pro-
grams administered by the Commissioner 
of the Social Security Administration; 
‘‘(iv) employment and training pro-
grams carried out by the Administrator of 
the Small Business Administration;
‘‘(v) employment, training, and lit-
eracy services carried out by public librar-
ies; and 
‘‘(vi) other appropriate Federal, State, 
or local programs, including programs in 
the private sector.’’; 
(2) in subsection (c)(2), by amending subpara-
graph (A) to read as follows: 
‘‘(A) provisions describing— 
‘‘(i) the services to be provided 
through the one-stop delivery system con-
sistent with the requirements of this sec-
tion, including the manner in which the 
services will be coordinated through such 
system; 
‘‘(ii) how the costs of such services 
and the operating costs of such system will 
be funded, through cash and in-kind con-
tributions, to provide a stable and equi-
table funding stream for ongoing one-stop 
system operations, including the funding of 
the infrastructure costs of one-stop centers 
in accordance with subsection (h); 
‘‘(iii) methods of referral of individ-
uals between the one-stop operator and the
one-stop partners for appropriate services 
and activities, including referrals for non-
traditional employment; and 
‘‘(iv) the duration of the memo-
randum of understanding and the proce-
dures for amending the memorandum dur-
ing the term of the memorandum, and as-
surances that such memorandum shall be 
reviewed not less than once every 3-year 
period to ensure appropriate funding and 
delivery of services; and’’; 
(3) in subsection (d)— 
(A) in the heading for paragraph (1), by 
striking ‘‘DESIGNATION
AND
CERTIFICATION’’ 
and inserting ‘‘LOCAL DESIGNATION AND CER-
TIFICATION’’; 
(B) in paragraph (2)— 
(i) by striking ‘‘section 134(c)’’ and 
inserting ‘‘subsection (e)’’; 
(ii) by amending subparagraph (A) to 
read as follows: 
‘‘(A) shall be designated or certified as a 
one-stop operator through a competitive proc-
ess; and’’; and
(iii) in subparagraph (B), by striking 
clause (ii) and redesignating clauses (iii) 
through (vi) as clauses (ii) through (v), re-
spectively; and 
(C) in paragraph (3), by striking ‘‘voca-
tional’’ and inserting ‘‘career and technical’’; 
(4) by amending subsection (e) to read as fol-
lows: 
‘‘(e) ESTABLISHMENT OF ONE-STOP DELIVERY SYS-
TEM.— 
‘‘(1) IN GENERAL.—There shall be established 
in a State that receives an allotment under section 
132(b) a one-stop delivery system, which shall— 
‘‘(A) provide the work ready services de-
scribed in section 134(c)(2); 
‘‘(B) provide access to training services as 
described in section 134(c)(4), including serving 
as the point of access to career enhancement 
accounts for training services to participants in 
accordance with paragraph (4)(F) of such sec-
tion; 
‘‘(C) provide access to the activities carried 
out under section 134(d), if any; 
‘‘(D) provide access to programs and ac-
tivities carried out by one-stop partners that
are described in subsection (b) of this section; 
and 
‘‘(E) provide access to the information de-
scribed in section 15(e) of the Wagner-Peyser 
Act (29 U.S.C. 49l–2(e)). 
‘‘(2) ONE-STOP DELIVERY.—At a minimum, the 
one-stop delivery system— 
‘‘(A) shall make each of the programs, 
services, and activities described in paragraph 
(1) accessible at not less than one physical cen-
ter in each local area of the State; and 
‘‘(B) may also make programs, services, 
and activities described in paragraph (1) avail-
able— 
‘‘(i) through a network of affiliated 
sites that can provide one or more of the 
programs, services, and activities to indi-
viduals; and 
‘‘(ii) through a network of eligible 
one-stop partners— 
‘‘(I) in which each partner pro-
vides one or more of the programs, 
services, and activities to such individ-
uals and is accessible at an affiliated 
site that consists of a physical loca-
tion or an electronically- or techno-
logically-linked access point; and 
‘‘(II) that assures individuals 
that information on the availability of 
the work ready services will be avail-
able regardless of where the individ-
uals initially enter the statewide work-
force investment system, including in-
formation made available through an 
access point described in subclause 
(I). 
‘‘(3) SPECIALIZED CENTERS.—The centers and 
sites described in paragraph (2) may have a speciali-
zation in addressing special needs.’’; and 
(5) by adding at the end the following: 
‘‘(g) CERTIFICATION OF ONE-STOP CENTERS.— 
‘‘(1) IN GENERAL.— 
‘‘(A) IN GENERAL.—The State board shall 
establish objective procedures and criteria for 
certifying, at least once every 3 years, one-stop 
centers for the purpose of awarding the one- 
stop infrastructure funding described in sub-
section (h). 
‘‘(B) CRITERIA.—The criteria for certifi-
cation under this subsection shall include—
‘‘(i) meeting all of the expected levels 
of performance for each of the core indica-
tors of performance as outlined in the 
State plan under section 112; 
‘‘(ii) meeting minimum standards re-
lating to the scope and degree of service 
integration achieved by the centers involv-
ing the programs provided by the one-stop 
partners; and 
‘‘(iii) meeting minimum standards re-
lating to how the centers ensure that eligi-
ble providers meet the employment needs 
of local employers and participants. 
‘‘(C) EFFECT
OF
CERTIFICATION.—One- 
stop centers certified under this subsection shall 
be eligible to receive the infrastructure grants 
authorized under subsection (h). 
‘‘(2) LOCAL BOARDS.—Consistent with the cri-
teria developed by the State, the local board may de-
velop additional criteria of higher standards to re-
spond to local labor market and demographic condi-
tions and trends. 
‘‘(h) ONE-STOP INFRASTRUCTURE FUNDING.— 
‘‘(1) PARTNER CONTRIBUTIONS.—
‘‘(A) PROVISION
OF
FUNDS.—Notwith-
standing any other provision of law, as deter-
mined under subparagraph (B), a portion of the 
Federal funds provided to the State and areas 
within the State under the Federal laws author-
izing the one-stop partner programs described 
in subsection (b)(1)(B) and participating addi-
tional partner programs described in subsection 
(b)(2)(B) for a fiscal year shall be provided to 
the Governor by such programs to carry out 
this subsection. 
‘‘(B) DETERMINATION OF GOVERNOR.— 
‘‘(i) IN
GENERAL.—Subject to sub-
paragraph (C), the Governor, in consulta-
tion with the State board, shall determine 
the portion of funds to be provided under 
subparagraph (A) by each one-stop partner 
and in making such determination shall 
consider the proportionate use of the one- 
stop centers by each partner, the costs of 
administration for purposes not related to 
one-stop centers for each partner, and 
other relevant factors described in para-
graph (3).
‘‘(ii) SPECIAL RULE.—In those States 
where the State constitution places policy- 
making authority that is independent of 
the authority of the Governor in an entity 
or official with respect to the funds pro-
vided for adult education and literacy ac-
tivities authorized under title II of this Act 
and for postsecondary career education ac-
tivities authorized under the Carl D. Per-
kins Career and Technical Education Act, 
the determination described in clause (i) 
with respect to such programs shall be 
made by the Governor with the appropriate 
entity or official with such independent 
policy-making authority. 
‘‘(iii) APPEAL
BY
ONE-STOP
PART-
NERS.—The Governor shall establish a 
procedure for the one-stop partner admin-
istering a program described in subsection 
(b) to appeal a determination regarding 
the portion of funds to be contributed 
under this paragraph on the basis that 
such determination is inconsistent with the 
criteria described in the State plan or with 
the requirements of this paragraph. Such
procedure shall ensure prompt resolution 
of the appeal. 
‘‘(C) LIMITATIONS.— 
‘‘(i) PROVISION
FROM
ADMINISTRA-
TIVE FUNDS.—The funds provided under 
this paragraph by each one-stop partner 
shall be provided only from funds available 
for the costs of administration under the 
program administered by such partner, 
and shall be subject to the limitations with 
respect to the portion of funds under such 
programs that may be used for administra-
tion. 
‘‘(ii) FEDERAL
DIRECT
SPENDING 
PROGRAMS.—Programs that are Federal 
direct spending under section 250(c)(8) of 
the Balanced Budget and Emergency Def-
icit Control Act of 1985 (2 U.S.C. 
900(c)(8)) shall not, for purposes of this 
paragraph, be required to provide an 
amount in excess of the amount deter-
mined to be equivalent to the proportionate 
use of the one-stop centers by such pro-
grams in the State.
‘‘(2) ALLOCATION
BY
GOVERNOR.—From the 
funds provided under paragraph (1), the Governor 
shall allocate funds to local areas in accordance with 
the formula established under paragraph (3) for the 
purposes of assisting in paying the costs of the in-
frastructure of one-stop centers certified under sub-
section (g). 
‘‘(3) ALLOCATION FORMULA.—The State board 
shall develop a formula to be used by the Governor 
to allocate the funds described in paragraph (1). 
The formula shall include such factors as the State 
board determines are appropriate, which may in-
clude factors such as the number of centers in the 
local area that have been certified, the population 
served by such centers, and the performance of such 
centers. 
‘‘(4) COSTS
OF
INFRASTRUCTURE.—For pur-
poses of this subsection, the term ‘costs of infra-
structure’ means the nonpersonnel costs that are 
necessary for the general operation of a one-stop 
center, including the rental costs of the facilities, the 
costs of utilities and maintenance, and equipment 
(including assistive technology for individuals with 
disabilities). 
‘‘(i) OTHER FUNDS.—
‘‘(1) IN GENERAL.—In addition to the funds 
provided to carry out subsection (h), a portion of 
funds made available under Federal law authorizing 
the one-stop partner programs described in sub-
section (b)(1)(B) and participating additional part-
ner programs described in subsection (b)(2)(B), or 
the noncash resources available under such pro-
grams shall be used to pay the costs relating to the 
operation of the one-stop delivery system that are 
not paid for from the funds provided under sub-
section (h), to the extent not inconsistent with the 
Federal law involved including— 
‘‘(A) infrastructure costs that are in excess 
of the funds provided under subsection (h); 
‘‘(B) common costs that are in addition to 
the costs of infrastructure; and 
‘‘(C) the costs of the provision of work 
ready services applicable to each program. 
‘‘(2) DETERMINATION
AND
GUIDANCE.—The 
method for determining the appropriate portion of 
funds and noncash resources to be provided by each 
program under paragraph (1) shall be determined as 
part of the memorandum of understanding under 
subsection (c). The State board shall provide guid-
ance to facilitate the determination of appropriate
allocation of the funds and noncash resources in 
local areas.’’. 
SEC. 109. IDENTIFICATION OF ELIGIBLE PROVIDERS OF 
TRAINING SERVICES. 
Section 122 (29 U.S.C. 2842) is amended to read as 
follows: 
‘‘SEC. 122. IDENTIFICATION OF ELIGIBLE PROVIDERS OF 
TRAINING SERVICES. 
‘‘(a) ELIGIBILITY.— 
‘‘(1) IN GENERAL.—The Governor, after con-
sultation with the State board, shall establish cri-
teria and procedures regarding the eligibility of pro-
viders of training services described in section 
134(c)(4) to receive funds provided under section 
133(b) for the provision of such training services. 
‘‘(2) PROVIDERS.—Subject to the provisions of 
this section, to be eligible to receive the funds pro-
vided under section 133(b) for the provision of train-
ing services, the provider shall be— 
‘‘(A) a postsecondary educational institu-
tion that— 
‘‘(i) is eligible to receive Federal funds 
under title IV of the Higher Education Act 
of 1965 (20 U.S.C. 1070 et seq.); and
‘‘(ii) provides a program that leads to 
a recognized postsecondary credential; 
‘‘(B) an entity that carries out programs 
under the Act of August 16, 1937 (commonly 
known as the ‘National Apprenticeship Act’; 50 
Stat. 664, chapter 663; 29 U.S.C. 50 et seq.); 
or 
‘‘(C) another public or private provider of 
a program of training services. 
‘‘(3) INCLUSION
IN
LIST
OF
ELIGIBLE
PRO-
VIDERS.—A provider described in subparagraph (A) 
or (C) of paragraph (2) shall comply with the cri-
teria and procedures established under this section 
to be included on the list of eligible providers of 
training services described in subsection (d). A pro-
vider described in paragraph (2)(B) shall be in-
cluded on the list of eligible providers of training 
services described in subsection (d) for so long as 
the provider remains certified by the Secretary of 
Labor to carry out the programs described in para-
graph (2)(B). 
‘‘(b) CRITERIA.— 
‘‘(1) IN
GENERAL.—The criteria established 
pursuant to subsection (a) shall take into account—
‘‘(A) the performance of providers of train-
ing services with respect to the performance 
measures described in section 136 and other 
matters for which information is required under 
paragraph (2) and other appropriate measures 
of performance outcomes for those participants 
receiving training services under this subtitle; 
‘‘(B) whether the training programs of 
such providers relate to occupations that are in 
demand; 
‘‘(C) the need to ensure access to training 
services throughout the State, including in rural 
areas; 
‘‘(D) the ability of providers to offer pro-
grams that lead to a recognized postsecondary 
credential; 
‘‘(E) the information such providers are 
required to report to State agencies with re-
spect to other Federal and State programs 
(other than the program carried out under this 
subtitle), including one-stop partner programs; 
and 
‘‘(F) such other factors as the Governor 
determines are appropriate.
‘‘(2) INFORMATION.—The criteria established 
by the Governor shall require that a provider of 
training services submit appropriate, accurate, and 
timely information to the State for purposes of car-
rying out subsection (d), with respect to participants 
receiving training services under this subtitle in the 
applicable program, including— 
‘‘(A) information on recognized postsec-
ondary credentials received by such partici-
pants; 
‘‘(B) information on costs of attendance 
for such participants; 
‘‘(C) information on the program comple-
tion rate for such participants; and 
‘‘(D) information on the performance of 
the provider with respect to the performance 
measures described in section 136 for such par-
ticipants. 
‘‘(3) RENEWAL.—The criteria established by 
the Governor shall also provide for a review every 3 
years and renewal of eligibility under this section for 
providers of training services. 
‘‘(4) LOCAL CRITERIA.—A local board in the 
State may establish criteria in addition to the cri-
teria established by the Governor, or may require
higher levels of performance than required under the 
criteria established by the Governor, for purposes of 
determining the eligibility of providers of training 
services to receive funds described in subsection (a) 
to provide the services in the local area involved. 
‘‘(5) LIMITATION.—In carrying out the require-
ments of this subsection, no personally identifiable 
information regarding a student, including Social 
Security number, student identification number, or 
other identifier, may be disclosed without the prior 
written consent of the parent or eligible student in 
compliance with section 444 of the General Edu-
cation Provisions Act (20 U.S.C. 1232g). 
‘‘(c) PROCEDURES.—The procedures established 
under subsection (a) shall— 
‘‘(1) identify— 
‘‘(A) the application process for a provider 
of training services to become eligible to receive 
funds under section 133(b) for the provision of 
training services; and 
‘‘(B) the respective roles of the State and 
local areas in receiving and reviewing applica-
tions and in making determinations of eligibility 
based on the criteria established under this sec-
tion; and
‘‘(2) establish a process for a provider of train-
ing services to appeal a denial or termination of eli-
gibility under this section that includes an oppor-
tunity for a hearing and prescribes appropriate time 
limits to ensure prompt resolution of the appeal. 
‘‘(d) INFORMATION TO ASSIST PARTICIPANTS
IN 
CHOOSING PROVIDERS.—In order to facilitate and assist 
participants under chapter 5 in choosing providers of 
training services, the Governor shall ensure that an appro-
priate list or lists of providers determined eligible under 
this section in the State, including information provided 
under subsection (b)(2) with respect to such providers, is 
provided to the local boards in the State and is made avail-
able to such participants and to members of the public 
through the one-stop delivery system in the State. 
‘‘(e) ENFORCEMENT.— 
‘‘(1) IN
GENERAL.—The criteria and proce-
dures established under this section shall provide the 
following: 
‘‘(A) INTENTIONALLY
SUPPLYING
INAC-
CURATE INFORMATION.—Upon a determination, 
by an individual or entity specified in the cri-
teria or procedures, that a provider of training 
services, or individual providing information on 
behalf of the provider, intentionally supplied in-
accurate information under this section, the eli-
gibility of such provider to receive funds under 
chapter 5 shall be terminated for a period of 
time that is not less than 2 years. 
‘‘(B) SUBSTANTIAL VIOLATIONS.—Upon a 
determination, by an individual or entity speci-
fied in the criteria or procedures, that a pro-
vider of training services substantially violated 
any requirement under this title, the eligibility 
of such provider to receive funds under the pro-
gram involved shall be terminated for a period 
of time that is not less than 10 years. 
‘‘(C) REPAYMENT.—A provider of training 
services whose eligibility is terminated under 
subparagraph (A) or (B) shall be liable for the 
repayment of funds received under chapter 5 
during a period of noncompliance described in 
such subparagraph. 
‘‘(2) CONSTRUCTION.—Paragraph (1) shall be 
construed to provide remedies and penalties that 
supplement, but do not supplant, other civil and 
criminal remedies and penalties. 
‘‘(f) AGREEMENTS WITH OTHER STATES.—States 
may enter into agreements, on a reciprocal basis, to per-
ernor may require, and disseminate information 
identifying providers that meet the criteria as eligi-
ble providers, and the performance information, 
through the one-stop delivery system. Providers de-
termined to meet the criteria shall be considered to 
be identified as eligible providers of training serv-
ices.’’. 
SEC. 110. GENERAL AUTHORIZATION. 
Chapter 5 of subtitle B of title I is amended— 
(1) by striking the heading for chapter 5 and 
inserting the following: ‘‘EMPLOYMENT AND 
TRAINING ACTIVITIES’’; and 
(2) in section 131 (29 U.S.C. 2861)— 
(A) by striking ‘‘paragraphs (1)(B) and 
(2)(B) of’’; and 
(B) by striking ‘‘adults, and dislocated 
workers,’’ and inserting ‘‘individuals’’. 
SEC. 111. STATE ALLOTMENTS. 
Section 132 (29 U.S.C. 2862) is amended— 
(1) by amending subsection (a) to read as fol-
lows: 
‘‘(a) IN GENERAL.—The Secretary shall— 
‘‘(1) reserve 1⁄2 of 1 percent of the total amount 
appropriated under section 137 for a fiscal year, of 
which—
‘‘(A) 50 percent shall be used to provide 
technical assistance under section 170; and 
‘‘(B) 50 percent shall be used for evalua-
tions under section 172; 
‘‘(2) reserve 1 percent of the total amount ap-
propriated under section 137 for a fiscal year to 
make grants to, and enter into contracts or coopera-
tive agreements with Indian tribes, tribal organiza-
tions, Alaska-Native entities, Indian-controlled orga-
nizations serving Indians, or Native Hawaiian orga-
nizations to carry out employment and training ac-
tivities; 
‘‘(3) reserve not more than 25 percent of the 
total amount appropriated under section 137 for a 
fiscal year to carry out the Jobs Corps program 
under subtitle C; 
‘‘(4) reserve not more than 3.5 percent of the 
total amount appropriated under section 137 for a 
fiscal year to— 
‘‘(A) make grants to State or local boards 
to provide employment and training assistance 
to workers affected by major economic disloca-
tions, such as plant closures, mass layoffs, or 
closures and realignments of military installa-
tions; and
‘‘(B) provide assistance to Governors of 
States with an area that has suffered an emer-
gency or a major disaster (as such terms are 
defined in paragraphs (1) and (2), respectively, 
of section 102 of the Robert T. Stafford Dis-
aster Relief and Emergency Assistance Act (42 
U.S.C. 5122)) to provide disaster relief employ-
ment in the area; and 
‘‘(5) from the remaining amount appropriated 
under section 137 for a fiscal year (after reserving 
funds under paragraphs (1) through (4)), make al-
lotments in accordance with subsection (b) of this 
section.’’; and 
(2) by amending subsection (b) to read as fol-
lows: 
‘‘(b) WORKFORCE INVESTMENT FUND.— 
‘‘(1) RESERVATION FOR OUTLYING AREAS.— 
‘‘(A) IN
GENERAL.—From the amount 
made available under subsection (a)(5) for a 
fiscal year, the Secretary shall reserve not more 
than 1⁄4 of 1 percent to provide assistance to 
the outlying areas. 
‘‘(B) 
RESTRICTION.—The 
Republic 
of 
Palau shall cease to be eligible to receive fund-
ing under this subparagraph upon entering into
an agreement for extension of United States 
educational assistance under the Compact of 
Free Association (approved by the Compact of 
Free Association Amendments Act of 2003 
(Public Law 99–658)) after the date of enact-
ment of the SKILLS Act. 
‘‘(2) STATES.— 
‘‘(A) IN GENERAL.—After determining the 
amount to be reserved under paragraph (1), the 
Secretary shall allot the remainder of the 
amount referred to in subsection (a)(5) for a 
fiscal year to the States pursuant to subpara-
graph (B) for employment and training activi-
ties and statewide workforce investment activi-
ties. 
‘‘(B) 
FORMULA.—Subject 
to 
subpara-
graphs (C) and (D), of the remainder— 
‘‘(i) 25 percent shall be allotted on the 
basis of the relative number of unemployed 
individuals in areas of substantial unem-
ployment in each State, compared to the 
total number of unemployed individuals in 
areas of substantial unemployment in all 
States;
‘‘(ii) 25 percent shall be allotted on 
the basis of the relative number of individ-
uals in the civilian labor force in each 
State, compared to the total number of 
such individuals in all States; 
‘‘(iii) 25 percent shall be allotted on 
the basis of the relative number of individ-
uals in each State who have been unem-
ployed for 15 weeks or more, compared to 
the total number of individuals in all 
States who have been unemployed for 15 
weeks or more; and 
‘‘(iv) 25 percent shall be allotted on 
the basis of the relative number of dis-
advantaged youth in each State, compared 
to the total number of disadvantaged youth 
in all States. 
‘‘(C) MINIMUM AND MAXIMUM PERCENT-
AGES.— 
‘‘(i) 
MINIMUM
PERCENTAGE.—The 
Secretary shall ensure that no State shall 
receive an allotment under this paragraph 
for— 
‘‘(I) each of fiscal years 2014 
through 2016, that is less than 100
percent of the allotment percentage of 
the State for fiscal year 2012; and 
‘‘(II) fiscal year 2017 and each 
succeeding fiscal year, that is less 
than 90 percent of the allotment per-
centage of the State for the preceding 
fiscal year. 
‘‘(ii) MAXIMUM
PERCENTAGE.—Sub-
ject to clause (i), the Secretary shall en-
sure that no State shall receive an allot-
ment under this paragraph for— 
‘‘(I) each of fiscal years 2014 
through 2016, that is more than 130 
percent of the allotment percentage of 
the State for fiscal year 2012; and 
‘‘(II) fiscal year 2017 and each 
succeeding fiscal year, that is more 
than 130 percent of the allotment per-
centage of the State for the preceding 
fiscal year. 
‘‘(D) SMALL
STATE
MINIMUM
ALLOT-
MENT.—Subject to subparagraph (C), the Sec-
retary shall ensure that no State shall receive 
an allotment under this paragraph for a fiscal 
year that is less than 1⁄5 of 1 percent of the re-
mainder described in subparagraph (A) for the 
fiscal year. 
‘‘(E) DEFINITIONS.—For the purpose of 
the formula specified in this paragraph: 
‘‘(i) ALLOTMENT PERCENTAGE.—The 
term ‘allotment percentage’— 
‘‘(I) used with respect to fiscal 
year 2012, means the percentage of 
the amounts allotted to States under 
title I of this Act, title V of the Older 
Americans Act of 1965 (42 U.S.C. 
3056 et seq.), the Women in Appren-
ticeship and Nontraditional Occupa-
tions Act (29 U.S.C. 2501 et seq.), 
sections 4103A and 4104 of title 38, 
United States Code, and sections 1 
through 14 of the Wagner-Peyser Act 
(29 U.S.C. 49 et seq.), as such provi-
sions were in effect for fiscal year 
2012, that is received under such pro-
visions by the State involved for fiscal 
year 2012; and 
‘‘(II) used with respect to fiscal 
year 2016 or a succeeding fiscal year, 
means the percentage of the amounts
allotted to States under this para-
graph for the fiscal year that is re-
ceived under this paragraph by the 
State involved for the fiscal year. 
‘‘(ii) DISADVANTAGED
YOUTH.—The 
term ‘disadvantaged youth’ means an indi-
vidual who is not less than age 16 and not 
more than age 24 who receives an income, 
or is a member of a family that received a 
total family income, that in relation to 
family size, does not exceed the higher 
of— 
‘‘(I) the poverty line; or 
‘‘(II) 70 percent of the lower liv-
ing standard income level. 
‘‘(iii) INDIVIDUAL.—The term ‘indi-
vidual’ means an individual who is age 16 
or older.’’. 
SEC. 112. WITHIN STATE ALLOCATIONS. 
Section 133 is amended— 
(1) by amending subsection (a) to read as fol-
lows: 
‘‘(a) RESERVATIONS FOR STATEWIDE WORKFORCE 
INVESTMENT ACTIVITIES.—
‘‘(1) STATEWIDE EMPLOYMENT AND TRAINING 
ACTIVITIES.—The Governor of a State shall reserve 
up to 15 percent of the total amount allotted to the 
State under section 132(b)(2) for a fiscal year to 
carry out the statewide activities described in section 
134(a). 
‘‘(2) STATEWIDE
RAPID
RESPONSE
ACTIVI-
TIES.—Of the amount reserved under paragraph (1) 
for a fiscal year, the Governor of the State shall re-
serve not more than 25 percent for statewide rapid 
response activities described in section 134(a)(4). 
‘‘(3) STATEWIDE
GRANTS
FOR
INDIVIDUALS 
WITH BARRIERS TO EMPLOYMENT.—Of the amount 
reserved under paragraph (1) for a fiscal year, the 
Governor of a State shall reserve 15 percent to carry 
out 
statewide 
activities 
described 
in 
section 
134(a)(5). 
‘‘(4) STATE ADMINISTRATIVE COST LIMIT.—Not 
more than 5 percent of the funds reserved under 
paragraph (1) may be used by the Governor of a 
State for administrative costs of carrying out the 
statewide activities described in section 134(a).’’; 
(2) by amending subsection (b) to read as fol-
lows: 
‘‘(b) WITHIN STATE ALLOCATION.—
‘‘(1) METHODS.—The Governor, acting in ac-
cordance with the State plan, and after consulting 
with chief elected officials in the local areas, shall— 
‘‘(A) allocate the funds that are allotted to 
the State for employment and training activities 
and not reserved under subsection (a), in ac-
cordance with paragraph (2)(A); and 
‘‘(B) award the funds that are reserved by 
the State under subsection (a)(3) through com-
petitive grants to eligible entities, in accordance 
with section 134(a)(1)(C). 
‘‘(2) FORMULA ALLOCATIONS FOR THE WORK-
FORCE INVESTMENT FUND.— 
‘‘(A) 
ALLOCATION.—In 
allocating 
the 
funds described in paragraph (1)(A) to local 
areas, a State shall allocate— 
‘‘(i) 25 percent on the basis described 
in section 132(b)(2)(B)(i); 
‘‘(ii) 25 percent on the basis described 
in section 132(b)(2)(B)(ii); 
‘‘(iii) 25 percent on the basis de-
scribed in section 132(b)(2)(B)(iii); and 
‘‘(iv) 25 percent on the basis de-
scribed in section 132(b)(2)(B)(iv).
‘‘(B) MINIMUM AND MAXIMUM PERCENT-
AGES.— 
‘‘(i) 
MINIMUM
PERCENTAGE.—The 
State shall ensure that no local area shall 
receive an allocation under this paragraph 
for— 
‘‘(I) each of fiscal years 2014 
through 2016, that is less than 100 
percent of the allocation percentage of 
the local area for fiscal year 2012; 
and 
‘‘(II) fiscal year 2017 and each 
succeeding fiscal year, that is less 
than 90 percent of the allocation per-
centage of the local area for the pre-
ceding fiscal year. 
‘‘(ii) MAXIMUM
PERCENTAGE.—Sub-
ject to clause (i), the State shall ensure 
that no local area shall receive an alloca-
tion for a fiscal year under this paragraph 
for— 
‘‘(I) each of fiscal years 2014 
through 2016, that is more than 130 
percent of the allocation percentage of
the local area for fiscal year 2012; 
and 
‘‘(II) fiscal year 2017 and each 
succeeding fiscal year, that is more 
than 130 percentage of the allocation 
percentage of the local area for the 
preceding fiscal year. 
‘‘(C) DEFINITIONS.—For the purpose of 
the formula specified in this paragraph, the 
term ‘allocation percentage’— 
‘‘(i) used with respect to fiscal year 
2012, 
means 
the 
percentage 
of 
the 
amounts allocated to local areas under title 
I of this Act, title V of the Older Ameri-
cans Act of 1965 (42 U.S.C. 3056 et seq.), 
the Women in Apprenticeship and Non-
traditional Occupations Act (29 U.S.C. 
2501 et seq.), sections 4103A and 4104 of 
title 38, United States Code, and sections 
1 through 14 of the Wagner-Peyser Act 
(29 U.S.C. 49 et seq.), as such provisions 
were in effect for fiscal year 2012, that is 
received under such provisions by the local 
area involved for fiscal year 2012; and
‘‘(ii) used with respect to fiscal year 
2016 or a succeeding fiscal year, means 
the percentage of the amounts allocated to 
local areas for the fiscal year under this 
paragraph that is received under this para-
graph by the local area involved for the fis-
cal year.’’; 
(3) in subsection (c)— 
(A) by amending paragraph (1) to read as 
follows: 
‘‘(1) IN GENERAL.—The Governor, may in ac-
cordance with this subsection, reallocate to eligible 
local areas within the State amounts that are allo-
cated under subsection (b) for employment and 
training activities and that are available for realloca-
tion.’’; 
(B) in paragraph (2), by striking ‘‘para-
graph (2)(A) or (3) of subsection (b) for such 
activities’’ and inserting ‘‘subsection (b) for 
such activities’’; 
(C) by amending paragraph (3) to read as 
follows: 
‘‘(3) REALLOCATIONS.—In making reallocations 
to eligible local areas of amounts available pursuant 
to paragraph (2) for a program year, the Governor
shall allocate to each eligible local area within the 
State an amount based on the relative amount allo-
cated to such local area under subsection (b)(2) for 
such activities for such prior program year, as com-
pared to the total amount allocated to all eligible 
local areas in the State under subsection (b)(2) for 
such activities for such prior program year.’’; and 
(D) in paragraph (4), by striking ‘‘para-
graph (2)(A) or (3) of’’; and 
(4) by adding at the end the following new sub-
section: 
‘‘(d) LOCAL ADMINISTRATIVE COST LIMIT.—Of the 
amounts allocated to a local area under this section for 
a fiscal year, not more than 10 percent of the amount 
may be used by the local board involved for the adminis-
trative costs of carrying out local workforce investment ac-
tivities in the local area under this chapter.’’. 
SEC. 113. USE OF FUNDS FOR EMPLOYMENT AND TRAINING 
ACTIVITIES. 
Section 134 is amended— 
(1) by amending subsection (a) to read as fol-
lows: 
‘‘(a) STATEWIDE EMPLOYMENT AND TRAINING AC-
TIVITIES.— 
‘‘(1) IN GENERAL.—
‘‘(A) DISTRIBUTION
OF
STATEWIDE
AC-
TIVITIES.—Funds reserved by a Governor for a 
State as described in section 133(a)(1)— 
‘‘(i) shall be used to carry out the 
statewide employment and training activi-
ties described in paragraph (2); and 
‘‘(ii) may be used to carry out any of 
the statewide employment and training ac-
tivities described in paragraph (3). 
‘‘(B) STATEWIDE RAPID RESPONSE ACTIVI-
TIES.—Funds reserved by a Governor for a 
State as described in section 133(a)(2) shall be 
used to carry out the statewide rapid response 
activities described in paragraph (4). 
‘‘(C) STATEWIDE
GRANTS
FOR
INDIVID-
UALS
WITH
BARRIERS
TO
EMPLOYMENT.— 
Funds reserved by a Governor for a State as 
described in section 133(a)(3) shall be used to 
carry out the Statewide Grants for Individuals 
with Barriers to Employment competition de-
scribed in paragraph (5). 
‘‘(2) REQUIRED STATEWIDE EMPLOYMENT AND 
TRAINING ACTIVITIES.—A State shall use funds re-
served as described in section 133(a)(1) to carry out
statewide employment and training activities, which 
shall include— 
‘‘(A) disseminating the State list of eligible 
providers of training described in section 
122(d), information identifying eligible pro-
viders of on-the-job training and customized 
training described in section 122(i), and per-
formance information and program cost infor-
mation described in section 122(b)(2); 
‘‘(B) supporting the provision of work 
ready services described in subsection (c)(2) in 
the one-stop delivery system; 
‘‘(C) implementing strategies and services 
that will be used in the State to assist at-risk 
youth and out-of-school youth in acquiring the 
education and skills, recognized postsecondary 
credentials, and employment experience to suc-
ceed in the labor market; 
‘‘(D) conducting evaluations under section 
136(e) of activities authorized under this chap-
ter in coordination with evaluations carried out 
by the Secretary under section 172; 
‘‘(E) providing technical assistance to local 
areas that fail to meet local performance meas-
ures;
‘‘(F) operating a fiscal and management 
accountability system under section 136(f); and 
‘‘(G) carrying out monitoring and over-
sight of activities carried out under this chap-
ter. 
‘‘(3) ALLOWABLE
STATEWIDE
EMPLOYMENT 
AND TRAINING ACTIVITIES.—A State may use funds 
reserved as described in section 133(a)(1) to carry 
out statewide employment and training activities 
which may include— 
‘‘(A) implementing innovative programs 
and strategies designed to meet the needs of all 
employers in the State, including small employ-
ers, which may include incumbent worker train-
ing programs, sectoral and industry cluster 
strategies and partnerships, career ladder pro-
grams, micro-enterprise and entrepreneurial 
training and support programs, utilization of ef-
fective business intermediaries, activities to im-
prove linkages between the one-stop delivery 
system in the State and all employers (includ-
ing small employers) in the State, and other 
business services and strategies that better en-
gage employers in workforce investment activi-
ties and make the workforce investment system
more relevant to the needs of State and local 
businesses, consistent with the objectives of this 
title; 
‘‘(B) providing incentive grants to local 
areas for regional cooperation among local 
boards (including local boards in a designated 
region as described in section 116(c)), for local 
coordination of activities carried out under this 
Act, and for exemplary performance by local 
areas on the local performance measures; 
‘‘(C) developing strategies for effectively 
integrating programs and services among one- 
stop partners; 
‘‘(D) carrying out activities to facilitate re-
mote access to services provided through a one- 
stop delivery system, including facilitating ac-
cess through the use of technology; 
‘‘(E) 
incorporating 
pay-for-performance 
contracting strategies as an element in funding 
activities under this section and providing tech-
nical support to local areas and eligible pro-
viders in order to carry out such strategy, 
which may provide assistance with data collec-
tion and data entry requirements;
‘‘(F) carrying out the State option under 
subsection (f)(8); and 
‘‘(G) carrying out other activities author-
ized under this section that the State deter-
mines to be necessary to assist local areas in 
carrying out activities described in subsection 
(c) or (d) through the statewide workforce in-
vestment system. 
‘‘(4) STATEWIDE
RAPID
RESPONSE
ACTIVI-
TIES.—A State shall use funds reserved as described 
in section 133(a)(2) to carry out statewide rapid re-
sponse activities, which shall include— 
‘‘(A) provision of rapid response activities, 
carried out in local areas by the State or by an 
entity designated by the State, working in con-
junction with the local boards and the chief 
elected officials in the local areas; and 
‘‘(B) provision of additional assistance to 
local areas that experience disasters, mass lay-
offs or plant closings, or other events that pre-
cipitate substantial increases in the number of 
unemployed individuals, carried out in local 
areas by the State or by an entity designated 
by the State, working in conjunction with the
local boards and the chief elected officials in the 
local areas. 
‘‘(5) STATEWIDE
GRANTS
FOR
INDIVIDUALS 
WITH BARRIERS TO EMPLOYMENT.— 
‘‘(A) IN GENERAL.—Of the funds reserved 
as described in section 133(a)(3), the Governor 
of a State— 
‘‘(i) may reserve up to 5 percent to 
provide technical assistance to, and con-
duct evaluations as described in section 
136(e), of the programs and activities car-
ried out under this paragraph; and 
‘‘(ii) using the remainder, shall award 
grants on a competitive basis to eligible en-
tities described in subparagraph (B) to 
carry out employment and training pro-
grams authorized under this paragraph for 
individuals with barriers to employment 
that meet specific performance outcomes 
and criteria established by the Governor. 
‘‘(B) ELIGIBLE
ENTITY
DEFINED.—For 
purposes of this paragraph, the term ‘eligible 
entity’ means an entity that— 
‘‘(i) is a—
‘‘(I) local board or a consortium 
of local boards; 
‘‘(II) nonprofit entity, for-profit 
entity, or a consortium of nonprofit or 
for-profit entities; or 
‘‘(III) consortium of the entities 
described in subclauses (I) and (II); 
‘‘(ii) has a demonstrated record of 
placing individuals into unsubsidized em-
ployment and serving hard to serve individ-
uals; and 
‘‘(iii) agrees to be reimbursed pri-
marily on the basis of achievement of spec-
ified performance outcomes and criteria es-
tablished by the Governor. 
‘‘(C) GRANT PERIOD.— 
‘‘(i) IN
GENERAL.—A grant under 
this paragraph shall be awarded for a pe-
riod of 1 year. 
‘‘(ii) GRANT RENEWAL.—A Governor 
of a State may renew, for up to 4 addi-
tional 1-year periods, a grant awarded 
under this paragraph. 
‘‘(D) ELIGIBLE PARTICIPANTS.—To be eli-
gible to participate in activities under this para-
graph, an individual shall be a low-income indi-
vidual age 16 or older or a member of a low- 
income family. 
‘‘(E) USE OF FUNDS.—An eligible entity 
receiving a grant under this paragraph shall use 
such funds for activities that are designed to 
assist eligible participants in obtaining employ-
ment and acquiring the education and skills 
necessary to succeed in the labor market. 
‘‘(F) APPLICATIONS.—To be eligible to re-
ceive a grant under this paragraph, an eligible 
entity shall submit an application to a State at 
such time, in such manner, and containing such 
information as the State may require, includ-
ing— 
‘‘(i) a description of how the strate-
gies and activities will be aligned with the 
State plan submitted under section 112 
and the local plan submitted under section 
118 with respect to the areas of the State 
that will be the focus of grant activities 
under this paragraph; 
‘‘(ii) a description of the educational 
and skills training programs and activities
the eligible entity will provide to eligible 
participants under this paragraph; 
‘‘(iii) how the eligible entity will col-
laborate with State and local workforce in-
vestment systems established under this 
title in the provision of such programs and 
activities; 
‘‘(iv) a description of the programs of 
demonstrated effectiveness on which the 
provision of such educational and skills 
training programs and activities are based, 
and a description of how such programs 
and activities will improve the education 
and skills training for eligible participants; 
‘‘(v) a description of the populations 
to be served and the skill needs of those 
populations, and the manner in which eligi-
ble participants will be recruited and se-
lected as participants; 
‘‘(vi) a description of the private, pub-
lic, local, and State resources that will be 
leveraged, in addition to the grant funds 
provided for the programs and activities 
under this paragraph, and how the entity 
will ensure the sustainability of such pro-
grams and activities after grant funds are 
no longer available; 
‘‘(vii) a description of the extent of 
the involvement of employers in such pro-
grams and activities; 
‘‘(viii) a description of the levels of 
performance the eligible entity expects to 
achieve with respect to the indicators of 
performance for all individuals specified in 
section in 136(b)(2); 
‘‘(ix) a detailed budget and a descrip-
tion of the system of fiscal controls, and 
auditing and accountability procedures 
that will be used to ensure fiscal soundness 
for the programs and activities provided 
under this paragraph; and 
‘‘(x) any other criteria the Governor 
may require.’’; 
(2) by amending subsection (b) to read as fol-
lows: 
‘‘(b) LOCAL EMPLOYMENT AND TRAINING ACTIVI-
TIES.—Funds allocated to a local area under section 
133(b)— 
‘‘(1) shall be used to carry out employment and 
training activities described in subsection (c); and
‘‘(2) may be used to carry out employment and 
training activities described in subsection (d).’’; 
(3) by striking subsection (c); 
(4) by redesignating subsections (d) and (e), as 
subsections (c) and (d), respectively; 
(5) in subsection (c) (as so redesignated)— 
(A) by amending paragraph (1) to read as 
follows: 
‘‘(1) IN GENERAL.—Funds allocated to a local 
area under section 133(b) shall be used— 
‘‘(A) to establish a one-stop delivery sys-
tem as described in section 121(e); 
‘‘(B) to provide the work ready services de-
scribed in paragraph (2) through the one-stop 
delivery system in accordance with such para-
graph; and 
‘‘(C) to provide training services described 
in paragraph (4) in accordance with such para-
graph.’’; 
(B) in paragraph (2)— 
(i) in the heading, by striking ‘‘CORE 
SERVICES’’ and inserting ‘‘WORK
READY 
SERVICES’’; 
(ii) in the matter preceding subpara-
graph (A)—
(I) by striking ‘‘(1)(A)’’ and in-
serting ‘‘(1)(B)’’; 
(II) by striking ‘‘core services’’ 
and inserting ‘‘work ready services’’; 
and 
(III) by striking ‘‘who are adults 
or dislocated workers’’; 
(iii) by redesignating subparagraph 
(K) as subparagraph (V); 
(iv) by redesignating subparagraphs 
(B) through (J) as subparagraphs (C) 
through (K), respectively; 
(v) by inserting after subparagraph 
(A) the following: 
‘‘(B) assistance in obtaining eligibility de-
terminations under the other one-stop partner 
programs through activities, where appropriate 
and consistent with the authorizing statute of 
the one-stop partner program, such as assisting 
in the submission of applications, the provision 
of information on the results of such applica-
tions, and the provision of intake services and 
information;’’; 
(vi) by amending subparagraph (E), 
as so redesignated, to read as follows:
‘‘(E) labor exchange services, including— 
‘‘(i) job search and placement assist-
ance, and where appropriate, career coun-
seling; 
‘‘(ii) appropriate recruitment services 
for employers, including small employers, 
in the local area, which may include serv-
ices described in this subsection, including 
information and referral to specialized 
business services not traditionally offered 
through the one-stop delivery system; and 
‘‘(iii) reemployment services provided 
to 
unemployment 
claimants, 
including 
claimants identified as in need of such 
services under the worker profiling system 
established under section 303(j) of the So-
cial Security Act (42 U.S.C. 503(j));’’; 
(vii) in subparagraph (F), as so redes-
ignated, by striking ‘‘employment statis-
tics’’ and inserting ‘‘workforce and labor 
market’’; 
(viii) in subparagraph (G), as so re-
designated, by striking ‘‘and eligible pro-
viders of youth activities described in sec-
tion 123,’’;
(ix) in subparagraph (H), as so redes-
ignated, by inserting ‘‘under section 136’’ 
after ‘‘local performance measures’’; 
(x) in subparagraph (J), as so redes-
ignated, by inserting ‘‘and the administra-
tion of the work test for the unemployment 
compensation system’’ after ‘‘compensa-
tion’’; 
(xi) by amending subparagraph (K), 
as so redesignated, to read as follows: 
‘‘(K) assistance in establishing eligibility 
for programs of financial aid assistance for 
training and education programs that are not 
funded under this Act and are available in the 
local area;’’; and 
(xii) by inserting the following new 
subparagraphs after subparagraph (K), as 
so redesignated: 
‘‘(L) the provision of information from of-
ficial publications of the Internal Revenue Serv-
ice regarding Federal tax credits available to in-
dividuals relating to education, job training and 
employment;
‘‘(M) comprehensive and specialized assess-
ments of the skill levels and service needs of 
workers, which may include— 
‘‘(i) diagnostic testing and use of 
other assessment tools; and 
‘‘(ii) in-depth interviewing and evalua-
tion to identify employment barriers and 
appropriate employment goals; 
‘‘(N) development of an individual employ-
ment plan, to identify the employment goals, 
appropriate achievement objectives, and appro-
priate combination of services for the partici-
pant; 
‘‘(O) group counseling; 
‘‘(P) individual counseling and career plan-
ning; 
‘‘(Q) case management; 
‘‘(R) short-term pre-career services, includ-
ing development of learning skills, communica-
tions skills, interviewing skills, punctuality, per-
sonal maintenance skills, and professional con-
duct, to prepare individuals for unsubsidized 
employment or training; 
‘‘(S) internships and work experience;
100 
‘‘(T) literacy activities relating to basic 
work readiness, information and communication 
technology literacy activities, and financial lit-
eracy activities, if such activities are not avail-
able to participants in the local area under pro-
grams administered under the Adult Education 
and Family Literacy Act (20 U.S.C. 2901 et 
seq.); 
‘‘(U) out-of-area job search assistance and 
relocation assistance; and’’; and 
(C) by amending paragraph (3) to read as 
follows: 
‘‘(3) DELIVERY OF SERVICES.—The work ready 
services described in paragraph (2) shall be provided 
through the one-stop delivery system and may be 
provided through contracts with public, private for- 
profit, and private nonprofit service providers, ap-
proved by the local board.’’; 
(D) in paragraph (4)— 
(i) by amending subparagraph (A) to 
read as follows: 
‘‘(A) IN
GENERAL.—Funds described in 
paragraph (1)(C) shall be used to provide train-
ing services to individuals who—
101 
‘‘(i) after an interview, evaluation, or 
assessment, and case management, have 
been determined by a one-stop operator or 
one-stop partner, as appropriate, to— 
‘‘(I) be in need of training serv-
ices to obtain or retain employment; 
and 
‘‘(II) have the skills and quali-
fications to successfully participate in 
the selected program of training serv-
ices; 
‘‘(ii) select programs of training serv-
ices that are directly linked to the employ-
ment opportunities in the local area in-
volved or in another area in which the indi-
vidual receiving such services are willing to 
commute or relocate; and 
‘‘(iii) who meet the requirements of 
subparagraph (B).’’; and 
(ii) in subparagraph (B)(i), by strik-
ing ‘‘Except’’ and inserting ‘‘Notwith-
standing section 479B of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1087uu) 
and except’’;
102 
(iii) by amending subparagraph (D) to 
read as follows: 
‘‘(D) TRAINING SERVICES.—Training serv-
ices authorized under this paragraph may in-
clude— 
‘‘(i) occupational skills training; 
‘‘(ii) on-the-job training; 
‘‘(iii) skill upgrading and retraining; 
‘‘(iv) entrepreneurial training; 
‘‘(v) education activities leading to a 
regular secondary school diploma or its 
recognized equivalent in combination with, 
concurrently or subsequently, occupational 
skills training; 
‘‘(vi) adult education and literacy ac-
tivities provided in conjunction with other 
training authorized under this subpara-
graph; 
‘‘(vii) workplace training combined 
with related instruction; 
‘‘(viii) occupational skills training that 
incorporates English language acquisition; 
‘‘(ix) customized training conducted 
with a commitment by an employer or 
group of employers to employ an individual
103 
upon successful completion of the training; 
and 
‘‘(x) training programs operated by 
the private sector.’’; 
(iv) by striking subparagraph (E) and 
redesignating subparagraphs (F) and (G) 
as subparagraphs (E) and (F), respec-
tively; and 
(v) in subparagraph (E) (as so redes-
ignated)— 
(I) in clause (ii)— 
(aa) in the matter preceding 
subclause (I), by striking ‘‘sub-
section (c)’’ and inserting ‘‘sec-
tion 121’’; 
(bb) in subclause (I), by 
striking ‘‘section 122(e)’’ and in-
serting ‘‘section 122(d)’’ and by 
striking ‘‘section 122(h)’’ and in-
serting ‘‘section 122(i)’’; and 
(cc) in subclause (II), by 
striking ‘‘subsections (e) and 
(h)’’ and inserting ‘‘subsection 
(i)’’; and
104 
(II) by striking clause (iii) and 
inserting the following: 
‘‘(iii) CAREER
ENHANCEMENT
AC-
COUNTS.—An individual who seeks train-
ing services and who is eligible pursuant to 
subparagraph (A), may, in consultation 
with a case manager, select an eligible pro-
vider of training services from the list or 
identifying information for providers de-
scribed in clause (ii)(I). Upon such selec-
tion, the one-stop operator involved shall, 
to the extent practicable, refer such indi-
vidual to the eligible provider of training 
services, and arrange for payment for such 
services through a career enhancement ac-
count. 
‘‘(iv) 
COORDINATION.—Each 
local 
board may, through one-stop centers, co-
ordinate career enhancement accounts with 
other Federal, State, local, or private job 
training programs or sources to assist the 
individual in obtaining training services. 
‘‘(v) ASSISTANCE.—Each local board 
may, through one-stop centers, assist indi-
viduals receiving career enhancement ac-
105 
counts in obtaining funds (in addition to 
the funds provided under this section) 
from other programs and sources that will 
assist the individual in obtaining training 
services.’’; and 
(vi) in subparagraph (F) (as so redes-
ignated)— 
(I) in the subparagraph heading, 
by striking ‘‘INDIVIDUAL
TRAINING 
ACCOUNTS’’ and inserting ‘‘CAREER 
ENHANCEMENT ACCOUNTS’’; 
(II) in clause (i) by striking ‘‘in-
dividual training accounts’’ and in-
serting 
‘‘career 
enhancement 
ac-
counts’’; 
(III) in clause (ii)— 
(aa) by striking ‘‘an indi-
vidual training account’’ and in-
serting ‘‘a career enhancement 
account’’; 
(bb) by striking ‘‘subpara-
graph (F)’’ and inserting ‘‘sub-
paragraph (E)’’; 
(cc) in subclause (II), by 
striking ‘‘individual training ac-
106 
counts’’ and inserting ‘‘career en-
hancement accounts’’; 
(dd) in subclause (II) by 
striking ‘‘or’’ after the semicolon; 
(ee) in subclause (III) by 
striking the period and inserting 
‘‘; or’’; and 
(ff) by adding at the end the 
following: 
‘‘(IV) the local board determines 
that it would be most appropriate to 
award a contract to a postsecondary 
educational institution that has been 
identified as a priority eligible pro-
vider under section 117(d)(5)(B) in 
order to facilitate the training of mul-
tiple individuals in in-demand sectors 
or occupations, such contract may be 
used to enable the expansion of pro-
grams provided by a priority eligible 
provider, and such contract does not 
limit customer choice.’’; 
(IV) in clause (iii), by striking 
‘‘adult or dislocated worker’’ and in-
serting ‘‘individual’’; and
107 
(V) in clause (iv)— 
(aa) by redesignating sub-
clause (IV) as subclause (V) and 
inserting after subclause (III) the 
following: 
‘‘(IV) Individuals with disabil-
ities.’’; 
(6) in subsection (d) (as so redesignated)— 
(A) by amending paragraph (1) to read as 
follows: 
‘‘(1) DISCRETIONARY ONE-STOP DELIVERY AC-
TIVITIES.— 
‘‘(A) IN GENERAL.—Funds allocated to a 
local area under section 133(b)(2) may be used 
to provide, through the one-stop delivery sys-
tem— 
‘‘(i) customized screening and referral 
of qualified participants in training serv-
ices to employers; 
‘‘(ii) customized employment-related 
services to employers on a fee-for-service 
basis; 
‘‘(iii) customer supports, including 
transportation and childcare, to navigate 
among multiple services and activities for
108 
special participant populations that face 
multiple barriers to employment, including 
individuals with disabilities; 
‘‘(iv) employment and training assist-
ance provided in coordination with child 
support enforcement activities of the State 
agency carrying out subtitle D of title IV 
of the Social Security Act (42 U.S.C. 651 
et seq.); 
‘‘(v) incorporating pay-for-perform-
ance contract strategies as an element in 
funding activities under this section; 
‘‘(vi) activities to facilitate remote ac-
cess to services provided through a one- 
stop delivery system, including facilitating 
access through the use of technology; and 
‘‘(vii) activities to carry out business 
services and strategies that meet the work-
force investment needs of local area em-
ployers, as determined by the local board, 
consistent with the local plan under section 
118.’’. 
(B) by striking paragraphs (2) and (3); 
and 
(C) by adding at the end the following:
109 
‘‘(2) INCUMBENT
WORKER
TRAINING
PRO-
GRAMS.— 
‘‘(A) IN GENERAL.—The local board may 
use funds allocated to a local area under section 
133(b)(2) to carry out incumbent worker train-
ing programs in accordance with this para-
graph. 
‘‘(B) TRAINING ACTIVITIES.—The training 
programs for incumbent workers under this 
paragraph shall be carried out by the local area 
in conjunction with the employers of such work-
ers for the purpose of assisting such workers in 
obtaining the skills necessary to retain employ-
ment and avert layoffs. 
‘‘(C) EMPLOYER MATCH REQUIRED.— 
‘‘(i) IN GENERAL.—Employers partici-
pating in programs under this paragraph 
shall be required to pay a proportion of the 
costs of providing the training to the in-
cumbent workers of the employers. The 
local board shall establish the required por-
tion of such costs, which may include in- 
kind contributions. 
‘‘(ii) CALCULATION OF MATCH.—The 
wages paid by an employer to a worker
110 
while they are attending training may be 
included as part of the required payment 
of the employer.’’; and 
(7) by adding at the end the following: 
‘‘(e) PRIORITY FOR PLACEMENT IN PRIVATE SECTOR 
JOBS.—In providing employment and training activities 
authorized under this section, the State and local board 
shall give priority to placing participants in jobs in the 
private sector. 
‘‘(f) VETERAN EMPLOYMENT SPECIALIST.— 
‘‘(1) IN GENERAL.—Subject to paragraph (8), a 
local board shall hire and employ one or more vet-
eran employment specialist to carry out employment, 
training, and placement services under this sub-
section in the local area served by the local board. 
‘‘(2) PRINCIPAL
DUTIES.—A veteran employ-
ment specialist in a local area shall— 
‘‘(A) conduct outreach to employers in the 
local area to assist veterans, including disabled 
veterans, in gaining employment, including— 
‘‘(i) conducting seminars for employ-
ers; and 
‘‘(ii) in conjunction with employers, 
conducting job search workshops, and es-
tablishing job search groups; and
111 
‘‘(B) facilitate employment, training, sup-
portive, and placement services furnished to 
veterans, including disabled and homeless vet-
erans, in the local area. 
‘‘(3) HIRING PREFERENCE FOR VETERANS AND 
INDIVIDUALS
WITH
EXPERTISE
IN
SERVING
VET-
ERANS.—Subject to paragraph (8), a local board 
shall, to the maximum extent practicable, employ 
veterans or individuals with expertise in serving vet-
erans to carry out the services described in para-
graph (2) in the local area served by the local board. 
In hiring an individual to serve as a veteran employ-
ment specialist, a local board shall give preference to 
veterans and other individuals in the following order: 
‘‘(A) To service-connected disabled vet-
erans. 
‘‘(B) If no veteran described in subpara-
graph (A) is available, to veterans. 
‘‘(C) If no veteran described in subpara-
graph (A) or (B) is available, to any member of 
the Armed Forces transitioning out of military 
service. 
‘‘(D) If no veteran described in subpara-
graph (A), (B), or (C) is available, to any 
spouse of a veteran or a spouse of a member of
112 
the Armed Forces transitioning out of military 
service. 
‘‘(E) If no veteran described in subpara-
graph (A), (B), or (C) is available and no 
spouse described in paragraph (D) is available, 
to any other individuals with expertise in serv-
ing veterans. 
‘‘(4) ADMINISTRATION AND REPORTING.— 
‘‘(A) IN GENERAL.—Each veteran employ-
ment specialist shall be administratively respon-
sible to the manager of the one-stop delivery 
center in the local area and shall provide, at a 
minimum, quarterly reports to the manager of 
such center and to the Director for Veterans’ 
Employment and Training for the State on the 
performance and compliance by the specialist 
with Federal law and regulations with respect 
to the— 
‘‘(i) principal duties and special serv-
ices for veterans described in paragraph 
(2); and 
‘‘(ii) hiring preferences described in 
paragraph (3) for veterans and individuals 
with expertise in serving veterans.
113 
‘‘(B) 
REPORT
TO
SECRETARY.—Each 
State shall submit to the Secretary an annual 
report on the qualifications used by the local 
board in making hiring determinations for a 
veteran employment specialist and the salary 
structure under which such specialist is com-
pensated. 
‘‘(C) REPORT
TO
CONGRESS.—The Sec-
retary shall submit to the Committee on Edu-
cation and the Workforce and the Committee 
on Veterans’ Affairs of the House of Represent-
atives and the Committee on Health, Edu-
cation, Labor, and Pensions and the Committee 
on Veterans’ Affairs of the Senate an annual 
report summarizing the reports submitted 
under subparagraph (B), including summaries 
of outcomes achieved by participating veterans 
disaggregated by local areas. 
‘‘(5) PART-TIME EMPLOYEES.—A part-time vet-
eran employment specialist shall perform the func-
tions of a veteran employment specialist under this 
subsection on a halftime basis. 
‘‘(6) TRAINING REQUIREMENTS.—Each veteran 
employment specialist described in paragraph (2) 
shall satisfactorily complete training provided by the
114 
National Veterans’ Employment and Training Insti-
tute during the three-year period that begins on the 
date on which the employee is so assigned. 
‘‘(7) SPECIALIST’S
DUTIES.—A full-time vet-
eran employment specialist shall perform only duties 
related to the employment, training, supportive, and 
placement services under this subsection, and shall 
not perform other non-veteran-related duties if such 
duties detract from the specialist’s ability to perform 
the specialist’s duties related to employment, train-
ing, and placement services under this subsection. 
‘‘(8) STATE OPTION.—At the request of a local 
board, a State may assume the duties assigned to 
the local board under paragraphs (1) and (3), in-
cluding the hiring and employment of one or more 
veteran employment specialist for placement in the 
local area served by the local board.’’. 
SEC. 114. PERFORMANCE ACCOUNTABILITY SYSTEM. 
Section 136 (29 U.S.C. 2871) is amended— 
(1) in subsection (b)— 
(A) by amending paragraphs (1) and (2) 
to read as follows: 
‘‘(1) IN GENERAL.—For each State, the State 
performance measures shall consist of—
115 
‘‘(A)(i) the core indicators of performance 
described in paragraph (2)(A); and 
‘‘(ii) additional indicators of performance 
(if any) identified by the State under paragraph 
(2)(B); and 
‘‘(B) a State adjusted level of performance 
for each indicator described in subparagraph 
(A). 
‘‘(2) INDICATORS OF PERFORMANCE.— 
‘‘(A) CORE
INDICATORS
OF
PERFORM-
ANCE.— 
‘‘(i) IN GENERAL.—The core indica-
tors of performance for the program of em-
ployment and training activities authorized 
under sections 132(a)(2) and 134, the pro-
gram of adult education and literacy activi-
ties authorized under title II, and the pro-
gram authorized under title I of the Reha-
bilitation Act of 1973 (29 U.S.C. 720 et 
seq.), other than section 112 or part C of 
that title (29 U.S.C. 732, 741), shall con-
sist of the following indicators of perform-
ance, each disaggregated by the popu-
lations identified in the State and local 
plans:
116 
‘‘(I) The percentage and number 
of program participants who are in 
unsubsidized employment during the 
second full calendar quarter after exit 
from the program. 
‘‘(II) The percentage and number 
of program participants who are in 
unsubsidized employment during the 
fourth full calendar quarter after exit 
from the program. 
‘‘(III) The median earnings of 
program participants who are in un-
subsidized employment during the sec-
ond full calendar quarter after exit 
from the program compared to the 
median earnings of such participants 
prior to the training received under 
such program. 
‘‘(IV) The percentage and num-
ber of program participants who ob-
tain a recognized postsecondary cre-
dential, a registered apprenticeship, 
an industry-recognized credential, or a 
regular secondary school diploma or 
its recognized equivalent (subject to
117 
clause (ii)), during participation in or 
within 1 year after exit from program. 
‘‘(V) The percentage and number 
of program participants who, during a 
program year— 
‘‘(aa) are in an education or 
training program that leads to a 
recognized postsecondary creden-
tial, a registered apprenticeship 
or on-the-job training program, 
an industry-recognized credential, 
a regular secondary school di-
ploma or its recognized equiva-
lent, or unsubsidized employ-
ment; and 
‘‘(bb) are achieving measur-
able basic skill gains toward such 
a credential or employment. 
‘‘(VI) The percentage and num-
ber of program participants who ob-
tain unsubsidized employment in the 
field relating to the training services 
described in section 134(c)(4) that 
such participants received.
118 
‘‘(ii) INDICATOR
RELATING
TO
CRE-
DENTIAL.—For purposes of clause (i)(IV), 
program participants who obtain a regular 
secondary school diploma or its recognized 
equivalent shall be included in the percent-
age counted as meeting the criterion under 
such clause only if such participants, in 
addition to obtaining such diploma or its 
recognized equivalent, have, within 1 year 
after exit from the program, obtained or 
retained employment, have been removed 
from public assistance, or are in an edu-
cation or training program leading to a 
recognized postsecondary credential. 
‘‘(B) ADDITIONAL INDICATORS.—A State 
may identify in the State plan additional indica-
tors for workforce investment activities author-
ized under this subtitle.’’; and 
(B) in paragraph (3)— 
(i) in subparagraph (A)— 
(I) in the heading, by striking 
‘‘AND CUSTOMER SATISFACTION INDI-
CATOR’’;
119 
(II) in clause (i), by striking 
‘‘and the customer satisfaction indi-
cator described in paragraph (2)(B)’’; 
(III) in clause (ii), by striking 
‘‘and the customer satisfaction indi-
cator of performance, for the first 3’’ 
and inserting ‘‘, for all 3’’; 
(IV) in clause (iii)— 
(aa) in the heading, by 
striking ‘‘FOR FIRST 3 YEARS’’; 
and 
(bb) by striking ‘‘and the 
customer satisfaction indicator of 
performance, for the first 3 pro-
gram years’’ and inserting ‘‘for 
all 3 program years’’; 
(V) in clause (iv)— 
(aa) by striking ‘‘or (v)’’; 
(bb) by striking subclause 
(I) and redesignating subclauses 
(II) and (III) as subclauses (I) 
and (II), respectively; and 
(cc) in subclause (I) (as so 
redesignated)—
120 
(AA) by striking ‘‘tak-
ing into account’’ and in-
serting ‘‘which shall be ad-
justed based on’’; 
(BB) by inserting ‘‘, 
such as unemployment rates 
and job losses or gains in 
particular industries’’ after 
‘‘economic conditions’’; and 
(CC) by inserting ‘‘, 
such as indicators of poor 
work experience, dislocation 
from high-wage employment, 
low levels of literacy or 
English 
proficiency, 
dis-
ability status, including the 
number of veterans with dis-
abilities, and welfare de-
pendency’’ after ‘‘program’’; 
(VI) by striking clause (v) and 
redesignating clause (vi) as clause (v); 
and 
(VII) in clause (v) (as so redesig-
nated),
121 
(aa) by striking ‘‘described 
in clause (iv)(II)’’ and inserting 
‘‘described in clause (iv)(I)’’; and 
(bb) by striking ‘‘or (v)’’; 
and 
(ii) in subparagraph (B), by striking 
‘‘paragraph (2)(C)’’ and inserting ‘‘para-
graph (2)(B)’’; 
(2) in subsection (c)— 
(A) by amending clause (i) of paragraph 
(1)(A) to read as follows: ‘‘(i) the core indica-
tors of performance described in subsection 
(b)(2)(A) for activities described in such sub-
sections, other than statewide workforce invest-
ment activities; and’’; 
(B) in clause (ii) of paragraph (1)(A), by 
striking ‘‘(b)(2)(C)’’ and inserting ‘‘(b)(2)(B)’’; 
and 
(C) by amending paragraph (3) to read as 
follows: 
‘‘(3) DETERMINATIONS.—In determining such 
local levels of performance, the local board, the chief 
elected official, and the Governor shall ensure such 
levels are adjusted based on the specific economic 
characteristics (such as unemployment rates and job
122 
losses or gains in particular industries), demographic 
characteristics, or other characteristics of the popu-
lation to be served in the local area.’’; 
(3) in subsection (d)— 
(A) in paragraph (1)— 
(i) by striking ‘‘127 or’’; 
(ii) by striking ‘‘and the customer sat-
isfaction indicator’’ each place it appears; 
and 
(iii) in the last sentence, by inserting 
before the period the following: ‘‘, and on 
the amount and percentage of the State’s 
annual allotment under section 132 the 
State spends on administrative costs and 
on the amount and percentage of its an-
nual allocation under section 133 each 
local area in the State spends on adminis-
trative costs’’; 
(B) in paragraph (2)— 
(i) by striking subparagraphs (A), 
(B), and (D); 
(ii) by redesignating subparagraph 
(C) as subparagraph (A); 
(iii) by redesignating subparagraph 
(E) as subparagraph (B);
123 
(iv) in subparagraph (B), as so redes-
ignated— 
(I) by striking ‘‘(excluding par-
ticipants who received only self-service 
and informational activities)’’; and 
(II) by striking ‘‘and’’ at the end; 
(v) by striking subparagraph (F); 
(vi) by adding at the end the fol-
lowing: 
‘‘(C) with respect to each local area in the 
State— 
‘‘(i) the number of individuals who re-
ceived work ready services described under 
section 134(c)(2) and the number of indi-
viduals who received training services de-
scribed under section 134(c)(4) during the 
most recent program year and fiscal year, 
and the preceding 5 program years, where 
the individuals received the training, 
disaggregated by the type of entity that 
provided the training, and the amount of 
funds spent on each type of service; 
‘‘(ii) the number of individuals who 
successfully exited out of work ready serv-
ices described under section 134(c)(2) and
124 
the number of individuals who exited out 
of training services described under section 
134(c)(4) during the most recent program 
year and fiscal year, and the preceding 5 
program years, and where the individuals 
received the training, disaggregated by the 
type of entity that provided the training; 
and 
‘‘(iii) the average cost per participant 
of those individuals who received work 
ready services described under section 
134(c)(2) and the average cost per partici-
pant of those individuals who received 
training services described under section 
134(c)(4) during the most recent program 
year and fiscal year, and the preceding 5 
program years, and where the individuals 
received the training, disaggregated by the 
type of entity that provided the training; 
and 
‘‘(D) the amount of funds spent on train-
ing services and discretionary one-stop delivery 
activities, disaggregated by the populations 
identified in the State and local plans.’’;
125 
(C) in paragraph (3)(A), by striking 
‘‘through publication’’ and inserting ‘‘through 
electronic means’’; and 
(D) by adding at the end the following: 
‘‘(4) DATA VALIDATION.—In preparing the re-
ports described in this subsection, each State shall 
establish procedures, consistent with guidelines 
issued by the Secretary, to ensure the information 
contained in the report is valid and reliable. 
‘‘(5) STATE AND LOCAL POLICIES.— 
‘‘(A) STATE POLICIES.—Each State that 
receives an allotment under section 132 shall 
maintain a central repository of policies related 
to access, eligibility, availability of services, and 
other matters and plans approved by the State 
board and make such repository available to the 
public, including by electronic means. 
‘‘(B) LOCAL
POLICIES.—Each local area 
that receives an allotment under section 133 
shall maintain a central repository of policies 
related to access, eligibility, availability of serv-
ices, and other matters and plans approved by 
the local board and make such repository avail-
able to the public, including by electronic 
means.’’;
142 
‘‘(12) an assurance the entity will comply with 
and meet basic health and safety codes, including 
those measures described in section 152(b). 
‘‘(e) LENGTH OF AGREEMENT.—The agreement de-
scribed in subsection (a)(1)(A) shall be for not longer than 
a 2-year period. The Secretary may renew the agreement 
for 3 one-year periods if the entity meets the requirements 
of subsection (f). 
‘‘(f) RENEWAL.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
the Secretary may renew the terms of an agreement 
described in subsection (a)(1)(A) for an entity to op-
erate a Job Corps center if the center meets or ex-
ceeds each of the indicators of performance de-
scribed in section 159(c)(1). 
‘‘(2) RECOMPETITION.— 
‘‘(A) IN GENERAL.—Notwithstanding para-
graph (1), the Secretary shall not renew the 
terms of the agreement for an entity to operate 
a Job Corps center if such center is ranked in 
the bottom quintile of centers described in sec-
tion 159(f)(2) for any program year. Such enti-
ty may submit a new application under sub-
section (d) only if such center has shown sig-
nificant improvement on the indicators of per-
143 
formance described in section 159(c)(1) over 
the last program year. 
‘‘(B) VIOLATIONS.—The Secretary shall 
not select an entity to operate a Job Corps cen-
ter if such entity or such center has been found 
to have a systemic or substantial material fail-
ure that involves— 
‘‘(i) a threat to the health, safety, or 
civil rights of program participants or 
staff; 
‘‘(ii) the misuse of funds received 
under this subtitle; 
‘‘(iii) loss of legal status or financial 
viability, loss of permits, debarment from 
receiving Federal grants or contracts, or 
the improper use of Federal funds; 
‘‘(iv) failure to meet any other Fed-
eral or State requirement that the entity 
has shown an unwillingness or inability to 
correct, after notice from the Secretary, 
within the period specified; or 
‘‘(v) an unresolved area of noncompli-
ance. 
‘‘(g) CURRENT GRANTEES.—Not later than 60 days 
after the date of enactment of the SKILLS Act and not-