128
with appropriate entities, conduct an eval-
uation of the activities carried out under 
any grants awarded under this subsection. 
‘‘(ii) REPORT.—The report to Con-
gress under section 172(e) relating to the 
results of the evaluations required under 
section 172 shall include the recommenda-
tion of the Secretary with respect to the 
use of personal reemployment account as a 
mechanism to assist individuals in obtain-
ing and retaining employment.’’. 
SEC. 124. NATIONAL DISLOCATED WORKER GRANTS. 
(a) IN GENERAL.—Section 173 (29 U.S.C. 2916) is 
amended—
(1) by amending the designation and heading to 
read as follows: 
‘‘SEC. 173. NATIONAL DISLOCATED WORKER GRANTS.’’; 
and 
(2) in subsection (a)—
(A) 
by 
striking 
‘‘national 
emergency 
grants’’ in the matter preceding paragraph (1) 
and inserting ‘‘national dislocated worker 
grants’’; and 
(B) in paragraph (1), by striking ‘‘sub-
section (c)’’ and inserting ‘‘subsection (b)’’.
129 
(b) ADMINISTRATION.—Section 173 (29 U.S.C. 
2918) is further amended— 
(1) by striking subsection (b) and redesignating 
subsections (c) and (d) as subsections (b) and (c), 
respectively; and 
(2) by striking subsection (e) and redesignating 
subsections (f) and (g) as subsection (d) and (e), re-
spectively. 
(c) ELIGIBLE ENTITIES.—Section 173(b)(1)(B) (29 
U.S.C. 2918(b)(1)(B)) (as redesignated by subsection (b) 
of this section) is amended by striking ‘‘, and other enti-
ties’’ and all that follows and inserting a period. 
(d) 
PARTICIPANT
ELIGIBILITY
FOR
MILITARY 
SPOUSES.—Section 
173(b)(2)(A) 
(29 
U.S.C. 
2918(b)(2)(A)) (as redesignated by subsection (b)) is 
amended— 
(1) in clause (iii), by striking ‘‘; or’’ and insert-
ing a semicolon; 
(2) in clause (iv)(IV) by striking the period and 
inserting ‘‘; or’’; and 
(3) by inserting at the end the following: 
‘‘(v) is the spouse of a member of the 
Armed Forces who is on active duty or 
full-time National Guard duty, or who was 
recently separated from such duties, and
130 
such spouse is in need of employment and 
training assistance to obtain or retain em-
ployment.’’. 
(e) CONFORMING AMENDMENT.—The table of con-
tents in section 1(b) is amended by amending the item 
related to section 173 to read as follows: 
‘‘Sec. 173. National dislocated worker grants.’’. 
SEC. 125. AUTHORIZATION OF APPROPRIATIONS FOR NA-
TIONAL ACTIVITIES. 
(a) IN GENERAL.—Section 174(a)(1) (29 U.S.C. 
2919(a)(1)) is amended by striking ‘‘1999 through 2003’’ 
and inserting ‘‘2006 through 2011’’. 
(b) RESERVATIONS.—Section 174(b) is amended to 
read as follows: 
‘‘(b) TECHNICAL ASSISTANCE; DEMONSTRATION AND 
PILOT PROJECTS; EVALUATIONS; INCENTIVE GRANTS.— 
There are authorized to be appropriated to carry out sec-
tions 170 through 172 and section 136 such sums as may 
be necessary for each of fiscal years 2006 through 2011.’’. 
SEC. 126. REQUIREMENTS AND RESTRICTIONS. 
(a) IN GENERAL.—Section 181(c)(2)(A) (29 U.S.C. 
2931(c)(2)(A)) is amended in the matter preceding clause 
(i) by striking ‘‘shall’’ and inserting ‘‘may’’. 
(b) LIMITATIONS.—Section 181(e) is amended by 
striking ‘‘training for’’ and inserting ‘‘the entry into em-
131 
ployment, retention in employment, or increases in earn-
ings of’’. 
SEC. 127. NONDISCRIMINATION. 
Section 188(a)(2) (29 U.S.C. 2931(a)(2)) is amended 
to read as follows: 
‘‘(2) PROHIBITION
OF
DISCRIMINATION
RE-
GARDING PARTICIPATION, BENEFITS, AND EMPLOY-
MENT.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), no individual shall be ex-
cluded from participation in, denied the benefits 
of, subjected to discrimination under, or denied 
employment in the administration of or in con-
nection with any such program or activity be-
cause of race, color, religion, sex, (except as 
otherwise permitted under title IX of the Edu-
cation Amendments of 1972), national origin, 
age, disability, or political affiliation. 
‘‘(B) EXEMPTION FOR RELIGIOUS ORGANI-
ZATIONS.—Subparagraph (A) shall not apply to 
a recipient of financial assistance under this 
title that is a religious corporation, association, 
educational institution, or society, with respect 
to the employment of individuals of a particular 
religion to perform work connected with the
132 
carrying on by such corporation, association, 
educational institution, or society of its activi-
ties Such recipients shall comply with the other 
requirements contained in subparagraph (A).’’. 
SEC. 128. ADMINISTRATIVE PROVISIONS. 
(a) PROGRAM YEAR.—Section 189(g)(1) (29 U.S.C. 
2939(g)(1)) is amended to read as follows: 
‘‘(1) IN GENERAL.—Appropriations for any fis-
cal year for programs and activities carried out 
under this title shall be available for obligation only 
on the basis of a program year. The program year 
shall begin on July 1 in the fiscal year for which the 
appropriation is made.’’. 
(b) AVAILABILITY.—Section 189(g)(2) (29 U.S.C. 
2939(g)(2)) is amended by striking ‘‘each State’’ and in-
serting ‘‘each recipient’’. 
(c) GENERAL
WAIVERS.—Section 189(i)(4) (29 
U.S.C. 2939(i)(4)) is amended— 
(1) in subparagraph (A), in the matter pre-
ceding clause (i), by inserting ‘‘, or in accordance 
with subparagraph (D),’’ after ‘‘subparagraph (B)’’; 
and 
(2) by adding the following subparagraph: 
‘‘(D) EXPEDITED PROCESS FOR EXTEND-
ING
APPROVED
WAIVERS
TO
ADDITIONAL
133 
STATES.—In lieu of the requirements of sub-
paragraphs (B) and (C), the Secretary may es-
tablish an expedited procedure for the purpose 
of extending to additional States the waiver of 
statutory or regulatory requirements that have 
been approved for a State pursuant to a request 
under subparagraph (B). Such procedure shall 
ensure that the extension of such waivers to ad-
ditional States are accompanied by appropriate 
conditions relating the implementation of such 
waivers.’’. 
SEC. 129. GENERAL PROGRAM REQUIREMENTS. 
Section 195 (29 U.S.C. 2945) is amended by adding 
at the end the following new paragraph: 
‘‘(14) Funds provided under this title shall not 
be used to establish or operate stand-alone fee-for- 
service enterprises that compete with private sector 
employment agencies within the meaning of section 
701(c) of the Civil Rights Act of 1964 (42 U.S.C. 
2000e(c)). For purposes of this paragraph, such an 
enterprise does not include one-stop centers.’’.
134
TITLE II—ADULT EDUCATION 
PART A—ADULT BASIC SKILLS AND FAMILY 
LITERACY EDUCATION 
SEC. 201. TABLE OF CONTENTS. 
The table of contents in section 1(b) is amended by 
amending the items relating to title II to read as follows:
‘‘TITLE II—ADULT BASIC SKILLS AND FAMILY LITERACY EDUCATION 
‘‘Sec. 201. Short title. 
‘‘Sec. 202. Purpose. 
‘‘Sec. 203. Definitions. 
‘‘Sec. 204. Home schools. 
‘‘Sec. 205. Authorization of appropriations. 
‘‘CHAPTER 1—FEDERAL PROVISIONS 
‘‘Sec. 211. Reservation of funds; grants to eligible agencies; allotments. 
‘‘Sec. 212. Performance accountability system. 
‘‘Sec. 213. Incentive grants for States. 
‘‘CHAPTER 2—STATE PROVISIONS 
‘‘Sec. 221. State administration. 
‘‘Sec. 222. State distribution of funds; matching requirement. 
‘‘Sec. 223. State leadership activities. 
‘‘Sec. 224. State plan. 
‘‘Sec. 225. Programs for corrections education and other institutionalized 
individuals. 
‘‘CHAPTER 3—LOCAL PROVISIONS 
‘‘Sec. 231. Grants and contracts for eligible providers. 
‘‘Sec. 232. Local application. 
‘‘Sec. 233. Local administrative cost limits. 
‘‘CHAPTER 4—GENERAL PROVISIONS 
‘‘Sec. 241. Administrative provisions. 
‘‘Sec. 242. National Institute for Literacy. 
‘‘Sec. 243. National leadership activities.
SEC. 202. AMENDMENT. 
Title II is amended to read as follows:
135 
‘‘TITLE II—ADULT BASIC SKILLS 
AND FAMILY LITERACY EDU-
CATION 
‘‘SEC. 201. SHORT TITLE. 
‘‘This title may be cited as the ‘Adult Basic Skills 
and Family Literacy Education Act’. 
‘‘SEC. 202. PURPOSE. 
‘‘It is the purpose of this title to provide instructional 
opportunities for adults seeking to improve their basic 
reading, writing, speaking, and math skills, and support 
States and local communities in providing, on a voluntary 
basis, adult basic skills and family literacy programs, in 
order to— 
‘‘(1) increase the basic reading, writing, speak-
ing, and math skills necessary for adults to obtain 
employment and self-sufficiency and to successfully 
advance in the workforce; 
‘‘(2) assist adults in the completion of a sec-
ondary school education (or its equivalent) and the 
transition to a postsecondary educational institution; 
‘‘(3) increase the basic reading, writing, speak-
ing, and math skills of parents to enable them to 
support the educational development of their chil-
dren and make informed choices regarding their 
children’s education; and
136 
‘‘(4) assist immigrants who are not proficient in 
English in improving their reading, writing, speak-
ing, and math skills and acquiring an understanding 
of the American free enterprise system, individual 
freedom, and the responsibilities of citizenship. 
‘‘SEC. 203. DEFINITIONS. 
‘‘In this title: 
‘‘(1) ADULT BASIC SKILLS AND FAMILY LIT-
ERACY
EDUCATION
PROGRAMS.—The term ‘adult 
basic skills and family literacy education programs’ 
means a sequence of academic instruction and edu-
cational services below the postsecondary level that 
increase an individual’s ability to read, write, and 
speak in English and perform mathematical com-
putations leading to a level of proficiency equivalent 
to secondary school completion that is provided for 
individuals— 
‘‘(A) who are at least 16 years of age; 
‘‘(B) who are not enrolled or required to be 
enrolled in secondary school under State law; 
and 
‘‘(C) who— 
‘‘(i) lack sufficient mastery of basic 
reading, writing, speaking, and math skills
137 
to enable the individuals to function effec-
tively in society; 
‘‘(ii) do not have a secondary school 
diploma or the General Equivalency Di-
ploma (GED) (including recognized alter-
native standards for individuals with dis-
abilities), and have not achieved an equiva-
lent level of education; or 
‘‘(iii) are unable to read, write, or 
speak the English language. 
‘‘(2) ELIGIBLE
AGENCY.—The term ‘eligible 
agency’— 
‘‘(A) means the sole entity or agency in a 
State or an outlying area responsible for admin-
istering or supervising policy for adult basic 
skills and family literacy education programs in 
the State or outlying area, respectively, con-
sistent with the law of the State or outlying 
area, respectively; and 
‘‘(B) may be the State educational agency, 
the State agency responsible for administering 
workforce investment activities, or the State 
agency responsible for administering community 
or technical colleges.
138 
‘‘(3) ELIGIBLE PROVIDER.—The term ‘eligible 
provider’ means— 
‘‘(A) a local educational agency; 
‘‘(B) a community-based or faith-based or-
ganization of demonstrated effectiveness; 
‘‘(C) a volunteer literacy organization of 
demonstrated effectiveness; 
‘‘(D) an institution of higher education; 
‘‘(E) a public or private educational agen-
cy; 
‘‘(F) a library; 
‘‘(G) a public housing authority; 
‘‘(H) an institution that is not described in 
any of subparagraphs (A) through (G) and has 
the ability to provide adult basic skills and fam-
ily literacy education programs to adults and 
families; or 
‘‘(I) a consortium of the agencies, organi-
zations, institutions, libraries, or authorities de-
scribed in any of subparagraphs (A) through 
(H). 
‘‘(4) ENGLISH
LANGUAGE
ACQUISITION
PRO-
GRAM.—The term ‘English language acquisition pro-
gram’ means a program of instruction designed to 
help individuals with limited English proficiency
139 
achieve competence in reading, writing, and speaking 
the English language. 
‘‘(5) ESSENTIAL COMPONENTS OF READING IN-
STRUCTION.—The term ‘essential components of 
reading instruction’ has the meaning given to that 
term in section 1208 of the Elementary and Sec-
ondary Education Act of 1965. 
‘‘(6) 
FAMILY
LITERACY
EDUCATION
PRO-
GRAMS.—The term ‘family literacy education pro-
grams’ means educational programs that— 
‘‘(A) assist parents and students, on a vol-
untary basis, in achieving the purposes of this 
title as described in section 202; and 
‘‘(B) are of sufficient intensity in terms of 
hours and of sufficient duration to make sus-
tainable changes in a family, are based upon 
scientific research-based principles, and for the 
purpose of substantially increasing the ability of 
parents and children to read, write, and speak 
English integrate— 
‘‘(i) interactive literacy activities be-
tween parents and their children; 
‘‘(ii) training for parents regarding 
how to be the primary teacher for their
140 
children and full partners in the education 
of their children; 
‘‘(iii) parent literacy training that 
leads to economic self-sufficiency; and 
‘‘(iv) an age-appropriate education to 
prepare children for success in school and 
life experiences. 
‘‘(7) GOVERNOR.—The term ‘Governor’ means 
the chief executive officer of a State or outlying 
area. 
‘‘(8) INDIVIDUAL WITH A DISABILITY.— 
‘‘(A) IN GENERAL.—The term ‘individual 
with a disability’ means an individual with any 
disability (as defined in section 3 of the Ameri-
cans with Disabilities Act of 1990). 
‘‘(B) INDIVIDUALS WITH DISABILITIES.— 
The term ‘individuals with disabilities’ means 
more than one individual with a disability. 
‘‘(9) INDIVIDUAL WITH LIMITED ENGLISH PRO-
FICIENCY.—The 
term 
‘individual 
with 
limited 
English proficiency’ means an adult or out-of-school 
youth who has limited ability in reading, writing, 
speaking, or understanding the English language, 
and—
141 
‘‘(A) whose native language is a language 
other than English; or 
‘‘(B) who lives in a family or community 
environment where a language other than 
English is the dominant language. 
‘‘(10) INSTITUTION OF HIGHER EDUCATION.— 
The term ‘institution of higher education’ has the 
meaning given to that term in section 101 of the 
Higher Education Act of 1965. 
‘‘(11) LITERACY.—The term ‘literacy’ means an 
individual’s ability to read, write, and speak in 
English, compute, and solve problems proficiently. 
‘‘(12) LOCAL
EDUCATIONAL
AGENCY.—The 
term ‘local educational agency’ has the meaning 
given to that term in section 9101 of the Elemen-
tary and Secondary Education Act of 1965. 
‘‘(13) OUTLYING
AREA.—The term ‘outlying 
area’ has the meaning given to that term in section 
101 of this Act. 
‘‘(14) POSTSECONDARY EDUCATIONAL INSTITU-
TION.—The term ‘postsecondary educational institu-
tion’ means— 
‘‘(A) an institution of higher education 
that provides not less than a 2-year program of
142 
instruction that is acceptable for credit toward 
a bachelor’s degree; 
‘‘(B) a tribally controlled community col-
lege; or 
‘‘(C) a nonprofit educational institution of-
fering certificate or apprenticeship programs at 
the postsecondary level. 
‘‘(15) READING.—The term ‘reading’ has the 
meaning given to that term in section 1208 of the 
Elementary and Secondary Education Act of 1965. 
‘‘(16) SCIENTIFICALLY
BASED
READING
RE-
SEARCH.—The term ‘scientifically based reading re-
search’ has the meaning given to that term in sec-
tion 1208 of the Elementary and Secondary Edu-
cation Act of 1965. 
‘‘(17) 
SECRETARY.—The 
term 
‘Secretary’ 
means the Secretary of Education. 
‘‘(18) STATE.—The term ‘State’ means each of 
the several States of the United States, the District 
of Columbia, and the Commonwealth of Puerto Rico. 
‘‘(19) STATE
EDUCATIONAL
AGENCY.—The 
term ‘State educational agency’ has the meaning 
given to that term in section 9101 of the Elemen-
tary and Secondary Education Act of 1965.
143 
‘‘(20) WORKPLACE LITERACY PROGRAM.—The 
term ‘workplace literacy program’ means an edu-
cational program that is offered in collaboration be-
tween eligible providers and employers or employee 
organizations for the purpose of improving the pro-
ductivity of the workforce through the improvement 
of reading, writing, speaking, and math skills. 
‘‘SEC. 204. HOME SCHOOLS. 
‘‘Nothing in this title shall be construed to affect 
home schools, whether or not a home school is treated as 
a home school or a private school under State law, or to 
compel a parent engaged in home schooling to participate 
in an English language acquisition program, a family lit-
eracy education program, or an adult basic skills and fam-
ily literacy education program. 
‘‘SEC. 205. AUTHORIZATION OF APPROPRIATIONS. 
‘‘There are authorized to be appropriated to carry out 
this title $590,127,000 for fiscal year 2005 and such sums 
as may be necessary for fiscal years 2006 through 2011. 
‘‘CHAPTER 1—FEDERAL PROVISIONS 
‘‘SEC. 211. RESERVATION OF FUNDS; GRANTS TO ELIGIBLE 
AGENCIES; ALLOTMENTS. 
‘‘(a) RESERVATION OF FUNDS.—From the sums ap-
propriated under section 205 for a fiscal year, the Sec-
retary—
144 
‘‘(1) shall reserve up to 1.72 percent for incen-
tive grants under section 213; 
‘‘(2) shall reserve 1.75 percent to carry out sec-
tion 242; and 
‘‘(3) shall reserve up to 1.55 percent to carry 
out section 243. 
‘‘(b) GRANTS TO ELIGIBLE AGENCIES.— 
‘‘(1) IN
GENERAL.—From the sums appro-
priated under section 205 and not reserved under 
subsection (a) for a fiscal year, the Secretary shall 
award a grant to each eligible agency having a State 
plan approved under section 224 in an amount equal 
to the sum of the initial allotment under subsection 
(c)(1) and the additional allotment under subsection 
(c)(2) for the eligible agency for the fiscal year, sub-
ject to subsections (f) and (g). 
‘‘(2) PURPOSE
OF
GRANTS.—The Secretary 
may award a grant under paragraph (1) only if the 
eligible agency involved agrees to expend the grant 
in accordance with the provisions of this title. 
‘‘(c) ALLOTMENTS.— 
‘‘(1) INITIAL
ALLOTMENTS.—From the sums 
appropriated under section 205 and not reserved 
under subsection (a) for a fiscal year, the Secretary