I 
112TH CONGRESS 
2D SESSION 
H. R. 4297 
To reform and strengthen the workforce investment system of the Nation 
to put Americans back to work and make the United States more 
competitive in the 21st century. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 29, 2012 
Ms. FOXX (for herself, Mr. MCKEON, and Mr. HECK) introduced the following 
bill; which was referred to the Committee on Education and the Work-
force, and in addition to the Committees on the Judiciary, Agriculture, 
Energy and Commerce, and Transportation and Infrastructure, for a pe-
riod to be subsequently determined by the Speaker, in each case for con-
sideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
A BILL 
To reform and strengthen the workforce investment system 
of the Nation to put Americans back to work and make 
the United States more competitive in the 21st century. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Workforce Investment 
Improvement Act of 2012’’. 
SEC. 2. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
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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 
Sec. 101. Definitions. 
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. 
Sec. 116. Technical assistance. 
Sec. 117. Evaluations. 
Sec. 118. Amendments to section 173. 
Sec. 119. Requirements and restrictions. 
Sec. 120. Prompt allocation of funds. 
Sec. 121. Fiscal controls; Sanctions. 
Sec. 122. Reports to congress. 
Sec. 123. Administrative provisions. 
Sec. 124. State legislative authority. 
Sec. 125. Continuation of State activities and policies. 
Sec. 126. General program requirements. 
Sec. 127. 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. Conforming amendment to table of contents. 
TITLE V—AMENDMENTS TO THE REHABILITATION ACT OF 1973 
Sec. 501. Findings. 
Sec. 502. Rehabilitation services administration. 
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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 repeals. 
Sec. 511. Repeal of title VI. 
Sec. 512. Chairperson. 
Sec. 513. Authorizations of appropriations. 
Sec. 514. Conforming amendments. 
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 (20 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 2013 and succeeding fiscal years. 
TITLE I—AMENDMENTS TO THE 
WORKFORCE 
INVESTMENT 
ACT OF 1998 
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-
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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 subtitle 
D), local grant recipients, local fiscal agents or local 
grant subrecipients, and one-stop operators in the 
performance of administrative functions and in car-
rying out activities under this title which are not re-
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lated to the direct provision of workforce investment 
services (including services to participants and em-
ployers). 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 
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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), by striking 
‘‘intensive 
services 
described 
in 
section 
134(d)(3)’’ and inserting ‘‘work ready services 
described in section 134(c)(2)’’; 
(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 
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the 
criteria 
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 dependent 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 because of a de-
ployment (as defined in section 991(b) of 
title 10, United States Code, or pursuant 
to paragraph (4) of such section), a call or 
order to active duty pursuant to a provi-
sion 
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’’; 
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(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 134(c)(2);’’; and 
(C) by striking subparagraph (C); 
(13) in paragraph (15), 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: 
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‘‘(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 striking paragraph (33) and redesig-
nating paragraphs (34) through (53) as paragraphs 
(33) through (52), respectively; 
(17) by striking ‘‘134(a)(1)(A)’’ and replacing 
with ‘‘134(a)(1)(B)’’; 
(18) by amending paragraph (48) (as so redes-
ignated) to read as follows: 
‘‘(48) 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 (49) (as so redes-
ignated) to read as follows: 
‘‘(49) 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).’’; and 
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(20) in paragraph (51) by striking ‘‘, and youth 
activity.’’. 
SEC. 102. PURPOSE. 
Section 106 (20 U.S.C. 2811) is amended by insert-
ing 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 (20 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, 
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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.’’; 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) by amending subsection (c) by striking 
‘‘(b)(1)(C)(i)’’ and replacing with ‘‘(b)(1)(B)(i)’’; 
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(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 under section 132(b). 
‘‘(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 agency or related entity 
in developing such system. 
‘‘(4) BUSINESS ENGAGEMENT.—Develop strate-
gies across local areas that meet the needs of busi-
nesses and support economic growth in the State by 
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enhancing communication, coordination, and collabo-
ration among businesses, 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 of man-
agement of the funds provided for State em-
ployment 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).’’; 
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(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 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 and 
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other occupations important to the State econ-
omy; 
‘‘(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— 
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‘‘(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) by amending paragraph (12) (as so re-
designated) by striking ‘‘(111)(f) and 117(g)’’ 
and inserting ‘‘111(e) and 117(f)’’; 
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(I) by amending paragraph (13) (as so re-
designated) by striking ‘‘134(c)’’ and inserting 
‘‘121(e)’’; 
(J) by amending paragraph (14) (as so re-
designated) by striking ‘‘116(a)(5)’’ and insert-
ing ‘‘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 the Supple-
mental Nutrition Assistance Program), 
English learners, homeless individuals, in-
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dividuals training for nontraditional em-
ployment, youth, older workers, ex-offend-
ers, migrant and seasonal farmworkers, 
refugee and entrants, veterans (including 
disabled and homeless veterans), and Na-
tive 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 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 
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‘‘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 businesses, in-
cluding businesses in in-demand industries and 
occupations important to the State economy; 
‘‘(B) to meet the needs of businesses in the 
State; and 
‘‘(C) to better coordinate workforce devel-
opment programs with economic development; 
‘‘(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; 
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‘‘(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 and 
partnerships with non-profit organizations (including 
community, faith-based, and philanthropic organiza-
tions) that provide employment-related, training, 
and complementary services, to enhance the quality 
and comprehensiveness of services available to par-
ticipants under this title; and 
‘‘(22) a description of the process and method-
ology for determining— 
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‘‘(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).’’; 
(3) in subsection (c), by striking ‘‘period, 
that—’’ 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 (20 U.S.C. 2831) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1)— 
(i) in subparagraph (A)— 
(I) by striking ‘‘Except as pro-
vided in subsection (b), and consistent 
with paragraphs (2), (3), and (4), in’’ 
and inserting ‘‘In’’; and 
(II) by striking ‘‘127 or’’; and 
(ii) by amending subparagraph (B) to 
read as follows: 
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‘‘(B) CONSIDERATIONS.—In making the 
designation of local areas, the Governor shall 
take into consideration the following: 
‘‘(i) The extent to which such local 
areas are consistent with labor market 
areas. 
‘‘(ii) The extent to which labor market 
areas align with economic development re-
gions. 
‘‘(iii) Whether such local areas have 
the appropriate education and training 
providers to meet the needs of the local 
workforce. 
‘‘(iv) The distance that individuals 
will need to travel to receive services pro-
vided in such local areas.’’; 
(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).’’; 
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(C) by striking paragraph (3) and insert-
ing the following: 
‘‘(3) DESIGNATION ON RECOMMENDATION OF 
STATE BOARD.—The Governor may approve a re-
quest from any unit of general local government (in-
cluding a combination of such units) for designation 
as a local area under paragraph (1) if the State 
board determines, taking into account the factors 
described in clauses (i) through (iv) of paragraph 
(1)(B), and recommends to the Governor, that such 
area shall be so designated.’’; 
(D) by striking paragraph (4); and 
(E) by redesignating paragraph (5) as 
paragraph (4); 
(2) by amending subsection (b) to read as fol-
lows: 
‘‘(b) SINGLE STATES.—Consistent with subsection 
(a)(1)(B), the Governor may designate a 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 
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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 subparagraph (A) of paragraph 
(2)— 
(i) by striking ‘‘include—’’ and all 
that follows through ‘‘representatives’’ and 
inserting ‘‘include representatives’’; 
(ii) by striking clauses (ii) through 
(vi); 
(iii) by redesignating subclauses (I) 
through (III) as clauses (i) through (iii), 
respectively; 
(iv) by striking clause (ii) (as so re-
designated) and inserting the following: 
‘‘(ii) represent businesses, including large 
and small businesses, with immediate and 
long-term employment opportunities in in- 
demand industries and other occupations 
important to the local economy; and’’; and 
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(v) by striking the semicolon at the 
end of clause (iii) (as so redesignated) and 
inserting ‘‘; and’’; 
(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)’’; 
(C) 
in 
paragraph 
(5) 
by 
striking 
‘‘(2)(A)(i)’’ and inserting ‘‘(2)(A)’’; and 
(D) by striking subsection (c)(1)(C); 
(2) 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— 
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‘‘(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 
may use existing analysis by the local economic 
development agency or related entity in order to 
carry out requirements of subparagraph (A)(i). 
‘‘(3) 
BUSINESS
ENGAGEMENT.—The 
local 
Board shall meet the needs of business and support 
economic growth in the local area by enhancing com-
munication, coordination, and collaboration among 
businesses, economic development agencies, and 
service providers. 
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‘‘(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-
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‘‘(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. 
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‘‘(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 of man-
agement of the funds provided for local employ-
ment 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 
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under this subtitle and carried out in the local area, 
including in remote areas.’’; 
(3) 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,’’; 
(4) in subsection (f), by striking paragraph (2) 
and inserting 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.’’; 
(5) in subsection (g)(1), by inserting ‘‘or par-
ticipate in action taken’’ after ‘‘vote’’; and 
(6) 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’’; 
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(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— 
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‘‘(A) to more fully engage businesses, in-
cluding businesses in in-demand industries and 
occupations important to the local economy; 
‘‘(B) to meet the needs of businesses in the 
local area; and 
‘‘(C) to better coordinate workforce devel-
opment programs with economic development; 
‘‘(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 and other occupations important to the 
local economy, and 
‘‘(C) to address critical skill gaps within 
and across industries; 
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‘‘(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 to make available 
comprehensive, high-quality services to individ-
uals with disabilities; 
‘‘(B) consistent with section 188 and Exec-
utive Order 13217 (42 U.S.C. 12131 note), 
serve the employment and training needs of in-
dividuals with disabilities; 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; 
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‘‘(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), English learners, homeless indi-
viduals, individuals training for nontraditional em-
ployment, youth, older workers, ex-offenders, mi-
grant and seasonal farmworkers, refugee and en-
trants, veterans (including disabled veterans and 
homeless veterans), and Native Americans; 
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‘‘(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; and 
‘‘(12) 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 programs and 
activities carried out by the entity, includ-
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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 the 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 clause (vi); and 
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(ii) by redesignating clauses (vii) 
through (xii) as clauses (vi) through (xi), 
respectively; and 
(C) in paragraph (2)(B)— 
(i) by striking clause (ii) and (v); 
(ii) by redesignating clauses (iii) 
through (iv) as clauses (ii) through (iii), 
respectively; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(iv) employment and training pro-
grams administered by the Commissioner 
of the Social Security Administration; 
‘‘(v) employment and training pro-
grams carried out by the Administrator of 
the Small Business Administration; 
‘‘(vi) employment, training, and lit-
eracy services carried out by public librar-
ies; and 
‘‘(vii) 
other 
appropriate 
Federal, 
State, or local programs, including pro-
grams in the private sector.’’; 
(2) in subsection (c)(2), by amending subpara-
graph (A) to read as follows: 
‘‘(A) provisions describing— 
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‘‘(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; 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 2-year 
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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.— 
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‘‘(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)(G) 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 
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(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 
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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 
periodically certifying one-stop centers for the 
purpose of awarding the one-stop infrastructure 
funding described in subsection (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 
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‘‘(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 (b)(2)(B) 
for a fiscal year shall be provided to the Gov-
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ernor by such programs to carry out this sub-
section. 
‘‘(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, 
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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 
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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 
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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 adaptive 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-
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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.— 
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‘‘(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 
an associate degree, baccalaureate degree, 
or industry-recognized certification; 
‘‘(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. 
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‘‘(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)(1). A 
provider described in paragraph (2)(B) shall be in-
cluded on the list of eligible providers of training 
services described in subsection (d)(1) 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 
(taking into consideration the characteristics of 
the population served and relevant economic 
conditions); 
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‘‘(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 degree or an industry-rec-
ognized certification, certificate, or mastery; 
‘‘(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— 
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‘‘(A) information on degrees and industry- 
recognized certifications received by such par-
ticipants; 
‘‘(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 (taking into consideration the charac-
teristics of the population served and relevant 
economic conditions), which shall include infor-
mation specifying the percentage of such par-
ticipants who entered unsubsidized employment 
in an occupation related to the program. 
‘‘(3) RENEWAL.—The criteria established by 
the Governor shall also provide for biennial review 
and renewal of eligibility under this section for pro-
viders 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 
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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-
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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.— 
‘‘(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, includ-
ing information regarding the occupations in de-
mand that relate to the training programs of such 
providers and the accompanying information de-
scribed in paragraph (2), 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) AVAILABILITY THROUGH ONE-STOP DELIV-
ERY SYSTEM.—The list and the accompanying infor-
mation shall be made available to such participants 
and to members of the public through the one-stop 
delivery system in the State. 
‘‘(e) ENFORCEMENT.— 
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‘‘(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. 
‘‘(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 
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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-
mit eligible providers of training services to accept career 
enhancement accounts provided in another State. 
‘‘(g) RECOMMENDATIONS.—In developing the cri-
teria, procedures, and information required under this sec-
tion, the Governor shall solicit and take into consideration 
the recommendations of local boards and providers of 
training services within the State. 
‘‘(h) OPPORTUNITY TO SUBMIT COMMENTS.—Dur-
ing the development of the criteria, procedures, require-
ments for information, and the list of eligible providers 
required under this section, the Governor shall provide an 
opportunity for interested members of the public to submit 
comments regarding such criteria, procedures, and infor-
mation. 
‘‘(i) ON-THE-JOB TRAINING OR CUSTOMIZED TRAIN-
ING EXCEPTION.— 
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‘‘(1) IN
GENERAL.—Providers of on-the-job 
training or customized training shall not be subject 
to the requirements of subsections (a) through (d). 
‘‘(2) COLLECTION AND DISSEMINATION OF IN-
FORMATION.—A one-stop operator in a local area 
shall collect such performance information from on- 
the-job training and customized training providers 
as the Governor may require, determine whether the 
providers meet such performance criteria as the Gov-
ernor may require, and disseminate information 
identifying providers that meet the criteria as eligi-
ble providers, and the performance information, 
through the one-stop delivery system. Providers de-
termined to meet the criteria shall be considered to 
be identified as eligible providers of training serv-
ices.’’. 
SEC. 110. 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 
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(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 2 percent of the total amount ap-
propriated under section 137 for a fiscal year, of 
which— 
‘‘(A) not less than 90 percent shall be used 
for national emergency grants under section 
173; 
‘‘(B) not more than 5 percent may be used 
to provide technical assistance under section 
170; and 
‘‘(C) not more than 5 percent may be used 
for evaluations under section 172; 
‘‘(2) reserve not more than 1 percent of the 
total amount appropriated under section 137 for a 
fiscal year to make grants to, and enter into con-
tracts or cooperative agreements with Indian tribes, 
tribal organizations, Alaska-Native entities, Indian- 
controlled organizations serving Indians, or Native 
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Hawaiian organizations to carry out employment 
and training activities; and 
‘‘(3) from the remaining amount appropriated 
under section 137 for a fiscal year (after reserving 
funds under paragraphs (1) and (2)), make allot-
ments in accordance with subsection (b) of this sec-
tion.’’; 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)(3) 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-
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ment of the Workforce Investment Improve-
ment Act of 2012. 
‘‘(2) STATES.— 
‘‘(A) IN GENERAL.—After determining the 
amount to be reserved under subparagraph (A), 
the Secretary shall allot the remainder of the 
amount referred to in subsection (a)(3) 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; 
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‘‘(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 a fiscal year that is less than 90 per-
cent of the allotment percentage 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 subparagraph for a fiscal 
year that is more than 130 percent of the 
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allotment percentage 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 subparagraph for a fis-
cal year that is less than 2⁄10 of 1 percent of the 
remainder described in subparagraph (A) for 
the fiscal year. 
‘‘(E) DEFINITIONS.—For the purpose of 
the formula specified in this subparagraph: 
‘‘(i) ALLOCATION PERCENTAGE.—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 Americans Act of 1965, and 
sections 1 through 13 of the Wagner- 
Peyser Act of 1933, as such provi-
sions were in effect on the day before 
the date of enactment of the Work-
force Investment Improvement Act of 
2012, that is received under such pro-
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visions by the local area involved for 
fiscal year 2012; and 
‘‘(II) used with respect to fiscal 
year 2013 or a subsequent year, 
means the percentage of the funds de-
scribed in subclause (I) that is re-
ceived through an allocation made 
under this clause 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 not less 
than age 16 and not more than age 72.’’. 
SEC. 112. WITHIN STATE ALLOCATIONS. 
Section 133 is amended— 
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(1) by amending subsection (a) to read as fol-
lows: 
‘‘(a) RESERVATIONS FOR STATEWIDE EMPLOYMENT 
AND TRAINING ACTIVITIES.— 
‘‘(1) IN GENERAL.—The Governor of a State 
shall reserve up to 5 percent of the total amount al-
lotted to the State under section 132(b)(2) for a fis-
cal year to carry out the statewide activities de-
scribed in paragraphs (2) and (3) of 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 10 percent for statewide rapid 
response activities described in section 134(a)(4). 
‘‘(3) 
STATEWIDE
YOUTH
CHALLENGE 
GRANTS.—The Governor of a State shall reserve up 
to 18 percent of the total amount allotted to the 
State under section 132(b)(2) for a fiscal year to 
carry out statewide activities described in section 
134(a)(5). 
‘‘(4) STATEWIDE ADULTS WITH BARRIERS TO 
EMPLOYMENT GRANTS.—The Governor of a State 
shall reserve 2 percent of the total amount allotted 
to the State under section 132(b)(2) for a fiscal year 
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to carry out statewide activities described in section 
134(a)(6).’’; 
(2) by amending subsection (b) to read as fol-
lows: 
‘‘(b) WITHIN STATE ALLOCATION.— 
‘‘(1) STATEWIDE EMPLOYMENT AND TRAINING 
ACTIVITIES.—The Governor, acting in accordance 
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); 
‘‘(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); and 
‘‘(C) award the funds that are reserved by 
the State under subsection (a)(4) through com-
petitive grants to eligible entities, in accordance 
with section 134(a)(1)(D). 
‘‘(2) FORMULA ALLOCATIONS FOR THE WORK-
FORCE INVESTMENT FUND.— 
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‘‘(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)(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 allotment under this paragraph 
for a fiscal year that is less than 90 per-
cent of the allocation percentage of the 
local area for the preceding 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 subpara-
graph for a fiscal year that is more than 
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130 percent 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, and sections 1 through 
13 of the Wagner-Peyser Act of 1933, as 
such provisions were in effect on the day 
before the date of enactment of the Work-
force Investment Improvement Act of 
2012, that is received under such provi-
sions by the local area involved for fiscal 
year 2012; and 
‘‘(ii) used with respect to fiscal year 
2013 or a subsequent year, means the per-
centage of the funds described in clause (i) 
that is received through an allocation made 
under this clause for the fiscal year.’’; 
(3) in subsection (c)— 
(A) by amending paragraph (1) to read as 
follows: 
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‘‘(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 
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(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). 
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‘‘(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
YOUTH
CHALLENGE 
GRANTS.—Funds reserved by a Governor for a 
State as described in section 133(a)(3) shall be 
used to carry out the Statewide Youth Chal-
lenge Grant competition described in paragraph 
(5). 
‘‘(D) STATEWIDE ADULTS WITH BARRIERS 
TO EMPLOYMENT GRANTS.—Funds reserved by 
a Governor for a State as described in section 
133(a)(4) shall be used to carry out the State-
wide Adults with Barriers to Employment 
Grant competition described in paragraph (6). 
‘‘(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) supporting the provision of work 
ready services described in subsection (c)(2) in 
the one-stop delivery system; 
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‘‘(B) implementing innovative programs 
and strategies designed to meet the needs of all 
businesses in the State, including small busi-
nesses, which may include incumbent worker 
training programs, sectoral and industry cluster 
strategies and partnerships, including regional 
skills alliances, sectoral skills partnerships (in 
which representatives of multiple employers for 
a specific industry sector or group of related oc-
cupations, economic development agencies, pro-
viders of training services described in sub-
section (c)(4), labor federations, and other enti-
ties that can provide needed supportive services 
tailored to the needs of workers in that sector 
or group, for a local area or region, identify 
gaps between the current and expected demand 
and supply of labor and skills in that sector or 
group for that area or region and develop a 
strategic skills gap action plan), career ladder 
programs, 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 
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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; and 
‘‘(C) 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. 
‘‘(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) 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; 
‘‘(B) providing technical assistance and ca-
pacity building to local areas, one-stop opera-
tors, one-stop partners, and eligible providers, 
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including the development and training of staff, 
the development of exemplary program activi-
ties, and the provision of technical assistance to 
local areas that fail to meet local performance 
measures; 
‘‘(C) operating a fiscal and management 
accountability system under section 136(f); 
‘‘(D) carrying out monitoring and over-
sight of activities carried out under this chap-
ter; 
‘‘(E) developing strategies for effectively 
integrating programs and services among one- 
stop partners; and 
‘‘(F) 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. 
‘‘(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-
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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
YOUTH
CHALLENGE 
GRANTS.— 
‘‘(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 
entities to carry out programs and activi-
ties authorized under this paragraph to as-
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sist eligible youth in acquiring the edu-
cation and skills, credentials, and employ-
ment experience necessary to succeed in 
the labor market. 
‘‘(B) ELIGIBLE
ENTITY
DEFINED.—For 
purposes of this paragraph, the term ‘eligible 
entity’ means— 
‘‘(i) a local board or a consortium of 
local boards; 
‘‘(ii) a nonprofit entity, for-profit enti-
ty, or a consortium of nonprofit or for- 
profit entities with a demonstrated record 
of— 
‘‘(I) placing youth into year- 
round employment; 
‘‘(II) successfully implementing 
dropout recovery activities, or 
‘‘(III) successfully implementing 
intensive and fully supervised pro-
grams of education, career training, 
and work experience; or 
‘‘(iii) a consortium of the entities de-
scribed in clauses (i) and (ii). 
‘‘(C) GRANT PERIOD.— 
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‘‘(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) AUTHORITY TO REQUIRE MATCH.—A 
Governor of a State may require that eligible 
entities receiving grants under this paragraph 
provide a non-Federal share of the cost of ac-
tivities carried out under this paragraph. 
‘‘(E) ELIGIBLE YOUTH.—To be eligible to 
participate in activities under this paragraph, 
an individual shall be a youth between the ages 
16 and 24 as of the time the eligibility deter-
mination is made by the Governor of the State 
who is— 
‘‘(i) a secondary school dropout; 
‘‘(ii) a member of a low-income fam-
ily; 
‘‘(iii) a youth in foster care (including 
youth aging out of foster care); 
‘‘(iv) a youth offender; 
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‘‘(v) a youth who is an individual with 
a disability; 
‘‘(vi) a child of incarcerated parents; 
or 
‘‘(vii) a migrant youth. 
‘‘(F) USE OF FUNDS.—An eligible entity 
receiving a grant under this paragraph shall use 
such funds for activities that are designed to 
assist eligible youth in acquiring the education 
and skills, credentials, and employment experi-
ence that are necessary to succeed in the labor 
market by carrying out at least one of the fol-
lowing: 
‘‘(i) Training and internships for out- 
of-school youth in in-demand industries or 
occupations important to the State and 
local economy. 
‘‘(ii) Dropout recovery activities that 
are designed to lead to the attainment of 
a secondary school diploma, General Edu-
cation Development (GED) credential, or 
other State-recognized equivalent (includ-
ing recognized alternative standards for in-
dividuals with disabilities). 
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‘‘(iii) Activities designed to assist spe-
cial youth populations, such as court-in-
volved youth, homeless youth, foster-chil-
dren, young parents, and youth with dis-
abilities. 
‘‘(iv) Activities combining remediation 
of academic skills, work readiness training, 
and work experience, and including link-
ages to postsecondary education and train-
ing, apprenticeships, and career-ladder em-
ployment. 
‘‘(v) Operating a residential center, 
such as a Job Corps Center described in 
subparagraph (I) if the requirements de-
scribed in clause (iii) of such subparagraph 
are met, that shall be operated so as to 
provide enrollees, in a well-supervised set-
ting, with access to activities described in 
this subparagraph. 
‘‘(vi) Other evidence-based strategies 
or activities designed to improve the edu-
cation and employment outcomes for 
youth. 
‘‘(G) APPLICATIONS.—To be eligible to re-
ceive a grant under this paragraph, an eligible 
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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 plans submitted under sec-
tion 118 with respect to the areas of the 
State that will be the focus of grant activi-
ties under this paragraph; 
‘‘(ii) a description of the educational 
and skills training programs and activities 
the eligible entity will provide to eligible 
youth 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 
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and activities will improve the education 
and skills training for eligible youth; 
‘‘(v) a description of youth popu-
lations to be served and the skill needs of 
those populations, and the manner in 
which eligible youth will be recruited and 
selected as participants; 
‘‘(vi) a description of the private and 
public, and local and State resources that 
will be leveraged, in addition to the grant 
funds provided under this paragraph, to 
provide the programs and activities under 
this paragraph, and how the entity will en-
sure the sustainability of such programs 
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 youth specified in section 
136(b)(2)(A)(ii); and 
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‘‘(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. 
‘‘(H) FACTORS FOR AWARD.— 
‘‘(i) 
IN
GENERAL.—In 
awarding 
grants under this paragraph, a State shall 
consider— 
‘‘(I) the quality of the proposed 
programs and activities; 
‘‘(II) the goals to be achieved; 
‘‘(III) the likelihood of successful 
implementation; 
‘‘(IV) the extent to which the 
proposed programs and activities— 
‘‘(aa) are based on proven 
strategies or demonstrated re-
sults; or 
‘‘(bb) will expand the edu-
cation and skills training for eli-
gible youth; 
‘‘(V) the extent of collaboration 
with the State and local workforce in-
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vestment systems in carrying out the 
proposed programs and activities; 
‘‘(VI) the extent of employer in-
volvement in the proposed programs 
and activities; 
‘‘(VII) whether there are other 
Federal and non-Federal funds avail-
able for similar activities to the pro-
posed programs and activities, and the 
additional State, local, and private re-
sources that will be provided to carry 
out the proposed programs and activi-
ties; 
‘‘(VIII) the quality of the pro-
posed programs and activities in meet-
ing the needs of the eligible youth to 
be served; and 
‘‘(IX) the extent to which the 
proposed programs and activities will 
expand on the work ready and train-
ing services provided to individuals be-
tween 16 and 24 years of age pro-
vided under section 134. 
‘‘(ii) EQUITABLE
GEOGRAPHIC
DIS-
TRIBUTION.—In awarding grants under 
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this paragraph the State shall ensure an 
equitable distribution of such grants across 
geographically diverse areas. 
‘‘(I) USE OF FUNDS FOR JOB CORPS CEN-
TERS.— 
‘‘(i) IN
GENERAL.—If the require-
ments described in clause (iii) are met, an 
eligible entity may use a grant received 
under this paragraph to operate a Job 
Corps Center that was established under 
subtitle C, as in effect on the day before 
the enactment of the Workforce Invest-
ment Improvement Act of 2012, and that 
is in existence on the day before the enact-
ment of such Act to— 
‘‘(I) provide work-based learning 
throughout the enrollment of the en-
rollees of such Center; and 
‘‘(II) assist the enrollees in ob-
taining meaningful unsubsidized em-
ployment, participating in secondary 
or postsecondary education programs, 
enrolling in other suitable career 
training 
programs, 
or 
satisfying 
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Armed Forces requirements, on com-
pletion of their enrollment. 
‘‘(ii) LIMITATION.—An eligible entity 
may use not more than 10 percent of the 
grant funds received under this paragraph 
for construction and facilities improvement 
of a Job Corps Center. 
‘‘(iii) REQUIREMENTS.—In order for 
an eligible entity to operate a Job Corps 
Center under clause (i), the following re-
quirements shall be met: 
‘‘(I) The State has submitted to 
the Secretary, a written request for 
the appropriate title and deed for 
such Job Corps Center, and has been 
granted such title and deed under 
clause (iv)(I). 
‘‘(II) The State agency, or appro-
priate agency responsible for inspect-
ing public buildings and safeguarding 
the health of disadvantaged students, 
has conducted an in-person review of 
the physical condition and health-re-
lated activities of the Job Corps Cen-
ter. Such review shall include a pass-
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ing rate of occupancy under State and 
local ordinances. 
‘‘(III) 
The 
State 
has 
dem-
onstrated, as part of the State plan in 
section 112, that it has developed and 
will enforce professional standards of 
conduct. 
‘‘(iv) SECRETARIAL ACTIONS.— 
‘‘(I) IN GENERAL.—Upon receiv-
ing a written request from a State 
under clause (iii)(I), the Secretary, in 
coordination with the Administrator 
of the General Services Administra-
tion, shall transfer the title and deed 
for the appropriate Job Corps Center 
to the State within 30 days. The Sec-
retary shall be prohibited from impos-
ing any requirement on a State in ex-
change for such title and deed. 
‘‘(II) TRANSITION.—After 365 
calendar days after the date of enact-
ment of the Workforce Investment 
Improvement Act of 2012, the Sec-
retary shall transfer all Job Corps 
Centers with respect to which the Sec-
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retary has not received a written re-
quest under clause (iii)(I) to the Ad-
ministrator of the General Services 
Administration for disposal of excess 
Federal real property. 
‘‘(6) STATEWIDE GRANTS FOR ADULTS WITH 
BARRIERS TO EMPLOYMENT.— 
‘‘(A) IN GENERAL.—Of the funds reserved 
as described in section 133(a)(4), 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 
under subparagraph (G). 
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‘‘(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 under subparagraph (F). 
‘‘(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-
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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 adult 
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 plans submitted under sec-
tion 118 with respect to the areas of the 
State that will be the focus of grant activi-
ties under this paragraph; 
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‘‘(ii) a description of the educational 
and skills training programs and activities 
the eligible entities 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 and 
public, and local and State resources that 
will be leveraged, in addition to the grant 
funds provided under this paragraph to 
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provide the programs and activities under 
this paragraph, and how the entity will en-
sure the sustainability of such programs 
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; 
‘‘(x) a description of the estimated 
savings that would result from the im-
proved outcomes, including to other pro-
grams or units of government; and 
‘‘(xi) any other criteria the Governor 
may require. 
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‘‘(G) PERFORMANCE OUTCOMES AND CRI-
TERIA.—Not later than 6 months after the date 
of the enactment of the Workforce Investment 
Improvement Act of 2012, the Governor of the 
State shall establish and publish specific per-
formance measures for the initial qualification 
of eligible entities to receive a grant under this 
section. At a minimum, to receive an award an 
eligible entity shall— 
‘‘(i) identify a particular program 
area and client population that is not 
achieving optimal outcomes; 
‘‘(ii) provide evidence that the pro-
posed strategy would achieve better results; 
‘‘(iii) clearly articulate and quantify 
the improved outcomes of such new ap-
proach; 
‘‘(iv) identify data that would be re-
quired to evaluate whether outcomes are 
being achieved for a target population and 
a comparison group; 
‘‘(v) identify estimated savings that 
would result from the improved outcomes, 
including to other programs or units of 
government; 
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‘‘(vi) demonstrate the capacity to col-
lect required data, track outcomes, and 
validate those outcomes; and 
‘‘(vii) any other criteria the Governor 
may require. 
‘‘(7) LIMITATION.—Not more than 5 percent of 
the funds allotted under section 132(b) to a State 
and reserved as described in section 133(a)(1) may 
be used by the State for administrative activities 
carried out under this subsection.’’; 
(2) by amending subsection (b) to read as fol-
lows: 
‘‘(b) LOCAL EMPLOYMENT AND TRAINING ACTIVI-
TIES.— 
‘‘(1) IN GENERAL.—Funds allocated to a local 
area under section 133(b)(2)— 
‘‘(A) shall be used to carry out employ-
ment and training activities described in section 
(c); and 
‘‘(B) may be used to carry out employment 
and training activities described in section (e).’’. 
(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)— 
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(A) by amending paragraph (1) to read as 
follows: 
‘‘(1) IN GENERAL.—Funds allocated to a local 
area under section 133(b)(2) 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) by striking ‘‘core services’’ and in-
serting ‘‘work ready services’’; 
(iii) by striking ‘‘who are adults or 
dislocated workers’’; 
(iv) in subparagraph (A), by inserting 
‘‘and assistance in obtaining eligibility de-
terminations under the other one-stop 
partner programs through such activities 
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as assisting in the submission of applica-
tions, the provision of information on the 
results of such applications, the provision 
of intake services and information, and, 
where appropriate and consistent with the 
authorizing statute of the one-stop partner 
program, determinations of eligibility’’ 
after ‘‘subtitle’’; 
(v) by amending subparagraph (D) to 
read as follows: 
‘‘(D) 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 
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established under section 303(j) of the So-
cial Security Act (42 U.S.C. 503(j));’’; 
(vi) in subparagraph (E), by striking 
‘‘employment 
statistics’’ 
and 
inserting 
‘‘workforce and labor market’’; 
(vii) in subparagraph (F), by striking 
‘‘and eligible providers of youth activities 
described in section 123,’’; 
(viii) in subparagraph (I), by inserting 
‘‘and the administration of the work test 
for the unemployment compensation sys-
tem’’ after ‘‘compensation’’; 
(ix) by amending subparagraph (J) to 
read as follows: 
‘‘(J) 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’’; and 
(x) by redesignating subparagraph 
(K) as subparagraph (U); and 
(xi) by inserting the following new 
subparagraphs after subparagraph (J): 
‘‘(K) the provision of information from of-
ficial publications of the Internal Revenue Serv-
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ice regarding Federal tax credits available to in-
dividuals relating to education, job training and 
employment; 
‘‘(L) 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; 
‘‘(M) development of an individual employ-
ment plan, to identify the employment goals, 
appropriate achievement objectives, and appro-
priate combination of services for the participa-
tion to achieve the employment goals; 
‘‘(N) group counseling; 
‘‘(O) individual counseling and career plan-
ning; 
‘‘(P) case management; 
‘‘(Q) short-term pre-career services, includ-
ing development of learning skills, communica-
tions skills, interviewing skills, punctuality, per-
sonal maintenance skills, and professional con-
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