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livery, the development of performance 
measures, the training of staff, and other 
aspects of accessibility to program services, 
consistent with sections 504 and 508 of 
the Rehabilitation Act of 1973; and’’; 
(4) in paragraph (18)(D), by striking ‘‘youth 
opportunity grants’’ and inserting ‘‘youth challenge 
grants’’; and 
(5) by adding at the end the following new 
paragraphs: 
‘‘(19) a description of the methodology for de-
termining one-stop partner program contributions 
for the cost of the infrastructure of one-stop centers 
under section 121(h)(1) and of the formula for allo-
cating such infrastructure funds to local areas under 
section 121(h)(3); and 
‘‘(20) a description of any programs and strate-
gies the State will utilize to meet the needs of busi-
nesses in the State, including small businesses, 
which may include providing incentives and technical 
assistance to assist local areas in engaging employ-
ers in local workforce development activities.’’. 
(c) MODIFICATION TO PLAN.—Section 112(d) (29 
U.S.C. 2822(d)) is amended by striking ‘‘5-year period’’ 
and inserting ‘‘2-year period’’.
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SEC. 105. LOCAL WORKFORCE INVESTMENT AREAS. 
(a) DESIGNATION OF AREAS.— 
(1) CONSIDERATIONS.—Section 116(a)(1)(B) 
(29 U.S.C. 2831(a)(1)(B)) is amended by adding at 
the end the following clause: 
‘‘(vi) The extent to which such local 
areas will promote efficiency in the admin-
istration and provision of services.’’. 
(2) 
AUTOMATIC
DESIGNATION.—Section 
116(a)(2) (29 U.S.C. 2831(a)(2)) is amended to 
read as follows: 
‘‘(2) AUTOMATIC DESIGNATION.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B) of this paragraph and sub-
section (b), the Governor shall approve a re-
quest for designation as a local area from— 
‘‘(i) any unit of general local govern-
ment with a population of 500,000 or 
more; and 
‘‘(ii) an area served by a rural con-
centrated employment program grant re-
cipient that served as a service delivery 
area or substate area under the Job Train-
ing Partnership Act (29 U.S.C. 1501 et 
seq.),
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for the 2-year period covered by a State plan 
under section 112 if such request is made not 
later than the date of the submission of the 
State plan. 
‘‘(B) CONTINUED DESIGNATION BASED ON 
PERFORMANCE.—The Governor may deny a re-
quest for designation submitted pursuant to 
subparagraph (A) if such unit of government 
was designated as a local area for the preceding 
2-year period covered by a State plan and the 
Governor determines that such local area did 
not perform successfully during such period.’’. 
(b) REGIONAL PLANNING.—Section 116(c)(1) (29 
U.S.C. 2831(c)(1)) is amended 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 elements of the local plan under section 
118 and that is submitted and approved in lieu of separate 
local plans under such section.’’. 
SEC. 106. LOCAL WORKFORCE INVESTMENT BOARDS. 
(a) COMPOSITION.—Section 117(b)(2)(A) (29 U.S.C. 
2832(b)(2)(A)) is amended— 
(1) in clause (i)(II), by inserting ‘‘, businesses 
that are in the leading industries in the local area,
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and large and small businesses in the local area’’ 
after ‘‘local area’’; 
(2) by amending clause (ii) to read as follows: 
‘‘(ii) a superintendent of the local sec-
ondary school system, an administrator of 
an entity providing adult education and lit-
eracy activities that is not a one-stop part-
ner designated under section 121(b)(1)(B), 
and the president or chief executive officer 
of a postsecondary educational institution 
serving the local area (including commu-
nity colleges, where such entities exist);’’; 
(3) in clause (iv), by striking the semicolon and 
inserting ‘‘and faith-based organizations; and’’; and 
(4) by striking clause (vi). 
(b) AUTHORITY
OF
BOARD
MEMBERS.—Section 
117(b)(3) (29 U.S.C. 2832(b) is amended— 
(1) in the heading, by inserting ‘‘AND
REP-
RESENTATION’’ after ‘‘MEMBERS’’; and 
(2) by adding at the end the following: ‘‘The 
members of the board shall represent diverse geo-
graphic sections within the local area.’’. 
(c) 
FUNCTIONS.—Section 
117(d) 
(29 
U.S.C. 
2832(d)) is amended—
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(1) in paragraph (2)(B), by striking ‘‘by award-
ing grants’’ and all that follows through ‘‘youth 
council’’; and 
(2) in paragraph (4) by inserting ‘‘, and ensure 
the appropriate use and management of the funds 
provided under this title for such programs, activi-
ties, and system’’ after ‘‘area’’. 
(d) AUTHORITY
TO
ESTABLISH
COUNCILS
AND 
ELIMINATION
OF REQUIREMENT
FOR YOUTH COUN-
CILS.—Section 117(h) (29 U.S.C. 2832(h)) is amended to 
read as follows: 
‘‘(h) ESTABLISHMENT
OF COUNCILS.—The local 
board may establish councils to provide information and 
advice to assist the local board in carrying out activities 
under this title. Such councils may include a council com-
posed of one-stop partners to advise the local board on 
the operation of the one-stop delivery system, a youth 
council composed of experts and stakeholders in youth 
programs to advise the local board on activities for youth, 
and such other councils as the local board determines are 
appropriate.’’. 
(e) REPEAL OF ALTERNATIVE ENTITY PROVISION.— 
Section 117 (29 U.S.C. 2832) is further amended by strik-
ing subsection (i).
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SEC. 107. LOCAL PLAN. 
(a) PLANNING CYCLE.—Section 118(a) (29 U.S.C. 
2833(a)) is amended by striking ‘‘5-year’’ and inserting 
‘‘2-year’’. 
(b) CONTENTS.—Section 118(b) (29 U.S.C. 2833(b)) 
is amended— 
(1) by amending paragraph (2) to read as fol-
lows: 
‘‘(2) a description of the one-stop delivery sys-
tem to be established or designated in the local area, 
including a description of how the local board will 
ensure the continuous improvement of eligible pro-
viders of services through the system and ensure 
that such providers meet the employment needs of 
local employers and participants;’’; 
(2) in paragraph (4), by striking ‘‘and dis-
located worker’’; 
(3) in paragraph (9), by striking ‘‘; and’’ and 
inserting a semicolon; and 
(4) by redesignating paragraph (10) as para-
graph (12) and inserting after paragraph (9) the fol-
lowing: 
‘‘(10) a description of the strategies and serv-
ices that will be initiated in the local area to engage 
employers, including small employers, in workforce 
development activities;
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‘‘(11) how the local area will serve the employ-
ment and training needs of individuals with disabil-
ities, consistent with section 188 and Executive 
Order 13217 (42 U.S.C. 12131 note) including the 
provision of outreach, intake, assessments, and serv-
ice delivery, the development of performance meas-
ures, the training of staff, and other aspects of ac-
cessibility to program services, consistent with sec-
tions 504 and 508 of the Rehabilitation Act of 1973; 
and’’. 
SEC. 108. ESTABLISHMENT OF ONE-STOP DELIVERY SYS-
TEMS. 
(a) ONE-STOP PARTNERS.— 
(1) REQUIRED PARTNERS.—Section 121(b)(1) 
(29 U.S.C. 2841(b)(1)) is amended— 
(A) in subparagraph (B)— 
(i) by striking clauses (ii) and (v); 
(ii) by redesignating clauses (iii) and 
(iv) as clauses (ii) and (iii), respectively, 
and by redesignating clauses (vi) through 
(xii) as clauses (iv) through (x), respec-
tively; 
(iii) in clause (ix) (as so redesig-
nated), by striking ‘‘and’’ at the end;
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(iv) in clause (x) (as so redesignated), 
by striking the period and inserting ‘‘; 
and’’; and 
(v) by inserting after clause (x)(as so 
redesignated) the following: 
‘‘(xi) programs authorized under part 
A of title IV of the Social Security Act (42 
U.S.C. 601 et. seq.), subject to subpara-
graph (C).’’; and 
(B) by adding after subparagraph (B) the 
following: 
‘‘(C) 
DETERMINATION
BY
THE
GOV-
ERNOR.—The program referred to in clause (xi) 
of subparagraph (B) shall be included as a re-
quired partner for purposes of this title in a 
State unless the Governor of the State notifies 
the Secretary and the Secretary of Health and 
Human Services in writing of a determination 
by the Governor not to include such programs 
as required partners for purposes of this title in 
the State.’’. 
(2) 
ADDITIONAL
PARTNERS.—Section 
121(b)(2)(B) (29 U.S.C. 2841(b)(2)(B)) is amend-
ed—
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(A) by striking clause (i) and redesignating 
clauses (ii) through (v) as clauses (i) through 
(iv) respectively; 
(B) in clause (iii) (as so redesignated) by 
striking ‘‘and’’ at the end; 
(C) in clause (iv) (as so redesignated) by 
striking the period and inserting a semicolon; 
and 
(D) by adding at the end the following new 
clauses: 
‘‘(v) employment and training pro-
grams administered by the Social Security 
Administration, including the Ticket to 
Work program (established by Public Law 
106–170); 
‘‘(vi) employment and training pro-
grams carried out by the Small Business 
Administration; 
‘‘(vii) programs under part D of title 
IV of the Social Security Act (42 U.S.C. 
451 et seq.) (relating to child support en-
forcement); 
‘‘(viii) employment, training, and lit-
eracy services carried out by public librar-
ies; and
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‘‘(ix) programs carried out in the local 
area for individuals with disabilities, in-
cluding programs carried out by State 
agencies relating to mental health, mental 
retardation, and developmental disabilities, 
State Medicaid agencies, State Inde-
pendent Living Councils, and Independent 
Living Centers.’’. 
(b) PROVISION OF SERVICES.—Subtitle B of title I 
is amended— 
(1) in section 121(d)(2), by striking ‘‘section 
134(c)’’ and inserting ‘‘subsection (e)’’; 
(2) by striking subsection (e) of section 121; 
(3) by moving subsection (c) of section 134 
from section 134, redesignating such subsection as 
subsection (e), and inserting such subsection (as so 
redesignated) after subsection (d) of section 121; 
and 
(4) by amending subsection (e) of section 121 
(as moved and redesignated by paragraph (2))— 
(A) in paragraph (1)(A), by striking ‘‘sub-
section 
(d)(2)’’ 
and 
inserting 
‘‘section 
134(c)(2)’’; 
(B) in paragraph (1)(B)—
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(i) by striking ‘‘subsection (d)’’ and 
inserting ‘‘section 134(c)’’; and 
(ii) by striking ‘‘subsection (d)(4)(G)’’ 
and inserting ‘‘section 134(c)(4)(G)’’; 
(C) in paragraph (1)(C), by striking ‘‘sub-
section (e)’’ and inserting ‘‘section 134(d)’’; 
(D) in paragraph (1)(D), by striking ‘‘sec-
tion 121(b)’’ and inserting ‘‘subsection (b)’’; 
and 
(E) by amending paragraph (1)(E) to read 
as follows: 
‘‘(E) shall provide access to the informa-
tion described in section 15(e) of the Wagner- 
Peyser Act (29 U.S.C. 49l-2(e)).’’. 
(c) CERTIFICATION
AND FUNDING
OF ONE-STOP 
CENTERS.—Section 121 (as amended by subsection (b)) 
is further amended by adding at the end the following new 
subsections: 
‘‘(g) CERTIFICATION OF ONE-STOP CENTERS.— 
‘‘(1) IN GENERAL.—The State board shall es-
tablish procedures and criteria for periodically certi-
fying one-stop centers for the purpose of awarding 
the one-stop infrastructure funding described in sub-
section (h).
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‘‘(2) CRITERIA.—The criteria for certification 
under this subsection shall include minimum stand-
ards relating to the scope and degree of service inte-
gration achieved by the centers involving the pro-
grams provided by the one-stop partners, and how 
the centers ensure that such providers meet the em-
ployment needs of local employers and participants. 
‘‘(3) EFFECT
OF
CERTIFICATION.—One-stop 
centers certified under this subsection shall be eligi-
ble to receive the infrastructure grants authorized 
under subsection (h). 
‘‘(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 (b)(2)(B) 
for a fiscal year shall be provided to the Gov-
ernor by such programs to carry out this sub-
section.
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‘‘(B) DETERMINATION
OF
GOVERNOR.— 
Subject to subparagraph (C), the Governor, in 
consultation with the State board, shall deter-
mine 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 de-
scribed in paragraph (3). 
‘‘(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
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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. 
‘‘(iii) 
NATIVE
AMERICAN
PRO-
GRAMS.—Native American programs estab-
lished under section 166 shall not be sub-
ject to the provisions of this subsection. 
The method for determining the appro-
priate portion of funds to be provided by 
such Native American programs to pay for 
the costs of infrastructure of a one-stop 
center certified under subsection (g) shall 
be determined as part of the development 
of the memorandum of understanding 
under subsection (c) for the one-stop cen-
ter and shall be stated in the memo-
randum. 
‘‘(2) ALLOCATION
BY
GOVERNOR.—From the 
funds provided under paragraph (1), the Governor 
shall allocate funds to local areas in accordance with
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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, equipment (in-
cluding adaptive technology for individuals with dis-
abilities), strategic planning activities for the center, 
and common outreach activities. 
‘‘(i) OTHER FUNDS.— 
‘‘(1) IN GENERAL.—In addition to the funds 
provided to carry out subsection (h), a portion of
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funds made available under Federal law authorizing 
the one-stop partner programs described in sub-
section (b)(1)(B) and participating partner pro-
grams described in subsection (b)(2)(B), or the 
noncash resources available under such programs 
shall be used to pay the costs relating to the oper-
ation of the one-stop delivery system that are not 
paid for from the funds provided under subsection 
(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 core serv-
ices 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.’’.
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SEC. 109. 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) IN GENERAL.—The Governor shall establish cri-
teria and procedures regarding the eligibility of providers 
of training services described in section 134(c)(4) to re-
ceive funds provided under section 133(b) for the provision 
of such training services. 
‘‘(b) CRITERIA.— 
‘‘(1) IN
GENERAL.—The criteria established 
pursuant to subsection (a) shall take into account 
the performance of providers of training services 
with respect to the indicators described in section 
136 or other appropriate indicators (taking into con-
sideration the characteristics of the population 
served and relevant economic conditions), and such 
other factors as the Governor determines are appro-
priate to ensure the quality of services, the account-
ability of providers, how the centers ensure that 
such providers meet the needs of local employers and 
participants, whether providers of training allow par-
ticipants to attain a certification, certificate, or mas-
tery, and the informed choice of participants under 
chapter 5. Such criteria shall require that the pro-
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vider submit appropriate, accurate and timely infor-
mation to the State for purposes of carrying out 
subsection (d). The criteria shall also provide for 
periodic review and renewal of eligibility under this 
section for providers of training services. The Gov-
ernor may authorize local areas in the State to es-
tablish additional criteria or to modify the criteria 
established by the Governor under this section for 
purposes of determining the eligibility of providers of 
training services to provide such services in the local 
area. 
‘‘(2) 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 identify 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 identify the respective roles of the 
State and local areas in receiving and reviewing applica-
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tions and in making determinations of eligibility based on 
the criteria established under this section. The procedures 
shall also establish a process for a provider of training 
services to appeal a denial or termination of eligibility 
under this section that includes an opportunity for a hear-
ing and prescribes appropriate time limits to ensure 
prompt resolution of the appeal. 
‘‘(d) INFORMATION
TO ASSIST PARTICIPANTS
IN 
CHOOSING PROVIDERS.— 
‘‘(1) IN GENERAL.—In order to facilitate and 
assist participants under chapter 5 in choosing pro-
viders of training services, the Governor shall ensure 
that an appropriate list or lists of providers deter-
mined eligible under this section in the State, ac-
companied by such information as the Governor de-
termines is appropriate, is provided to the local 
boards in the State to be made available to such 
participants and to members of the public through 
the one-stop delivery system in the State. 
‘‘(2) SPECIAL
RULE.—An entity that carries 
out programs under the Act of August 16, 1937 
(commonly known as the ‘National Apprenticeship 
Act’, 50 Stat. 664, chapter 663; 29 U.S.C. 50 et 
seq.) shall be included on the list of eligible pro-
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viders described in paragraph (1) for so long as such 
entity remains certified by the Department of Labor. 
‘‘(e) AGREEMENTS WITH OTHER STATES.—States 
may enter into agreements, on a reciprocal basis, to per-
mit eligible providers of training services to accept indi-
vidual training accounts provided in another State. 
‘‘(f) RECOMMENDATIONS.—In developing the criteria, 
procedures, and information required under this section, 
the Governor shall solicit and take into consideration the 
recommendations of local boards and providers of training 
services within the State. 
‘‘(g) OPPORTUNITY TO SUBMIT COMMENTS.—During 
the development of the criteria, procedures, and informa-
tion required under this section, the Governor shall pro-
vide an opportunity for interested members of the public, 
including representatives of business and labor organiza-
tions, to submit comments regarding such criteria, proce-
dures, and information. 
‘‘(h) 
ON-THE-JOB
TRAINING
OR
CUSTOMIZED 
TRAINING EXCEPTION.— 
‘‘(1) IN
GENERAL.—Providers of on-the-job 
training or customized training shall not be subject 
to the requirements of subsections (a) through (g). 
‘‘(2) COLLECTION AND DISSEMINATION OF IN-
FORMATION.—A one-stop operator in a local area
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shall collect such performance information from on- 
the-job training and customized training providers 
as the Governor may require, determine whether the 
providers meet such performance criteria as the Gov-
ernor may require, and disseminate information 
identifying providers that meet the criteria as eligi-
ble providers, and the performance information, 
through the one-stop delivery system. Providers de-
termined to meet the criteria shall be considered to 
be identified as eligible providers of training serv-
ices.’’. 
SEC. 110. ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES. 
(a) ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES.— 
Section 123 (29 U.S.C. 2843) is amended to read as fol-
lows: 
‘‘SEC. 123. ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES. 
‘‘(a) IN GENERAL.—From the funds allocated under 
section 128(b) to a local area, the local board for such 
area shall award grants or contracts on a competitive basis 
to providers of youth activities identified based on the cri-
teria in the State plan and shall conduct oversight with 
respect to such providers. 
‘‘(b) EXCEPTIONS.—A local board may award grants 
or contracts on a sole-source basis if such board deter-
mines there are an insufficient number of eligible pro-
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viders of training services in the local area involved (such 
as rural areas) for grants to be awarded on a competitive 
basis under subsection (a).’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
in section 1(b) is amended by amending the item related 
to section 123 to read as follows: 
‘‘Sec. 123. Eligible providers of youth activities.’’. 
SEC. 111. YOUTH ACTIVITIES. 
(a) STATE ALLOTMENTS.— 
(1) IN GENERAL.—Section 127(a) (29 U.S.C. 
2852(a)) is amended to read as follows: 
‘‘(a) ALLOTMENT AMONG STATES.— 
‘‘(1) YOUTH ACTIVITIES.— 
‘‘(A) YOUTH CHALLENGE GRANTS.— 
‘‘(i) RESERVATION
OF
FUNDS.—Of 
the amount appropriated under section 
137(a) for each fiscal year, the Secretary 
shall reserve 25 percent to provide youth 
challenge grants under section 169. 
‘‘(ii) 
LIMITATION.—Notwithstanding 
clause (i), if the amount appropriated 
under section 137(a) for a fiscal year ex-
ceeds $1,000,000,000, the Secretary shall 
reserve $250,000,000 to provide youth 
challenge grants under section 169.
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‘‘(B) OUTLYING AREAS AND NATIVE AMER-
ICANS.— 
‘‘(i) IN GENERAL.—After determining 
the amount to be reserved under subpara-
graph (A), of the remainder of the amount 
appropriated under section 137(a) for each 
fiscal year the Secretary shall— 
‘‘(I) reserve not more than 1⁄4 of 
one percent of such amount to provide 
assistance to the outlying areas to 
carry out youth activities and state-
wide workforce investment activities; 
and 
‘‘(II) reserve not more than 1 
and 1⁄2 percent of such amount to 
provide youth activities under section 
166 (relating to Native Americans). 
‘‘(ii) RESTRICTION.—The Republic of 
Palau shall cease to be eligible to receive 
funding under this subparagraph upon en-
tering into an agreement for extension of 
United States educational assistance under 
the Compact of Free Association (approved 
by the Compact of Free Association 
Amendments Act of 2003 (Public Law