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‘‘(B) OUT-OF-SCHOOL YOUTH.—In this title
the term ‘out-of-school youth’ means an indi-
vidual who is—
‘‘(i) not younger than age 16 nor older
than age 21; and
‘‘(ii) one of the following:
‘‘(I) A school dropout.
‘‘(II) A youth who is within the
age for compulsory school attendance,
but has not attended school for at least
1 school year calendar quarter.
‘‘(III) A recipient of a secondary
school diploma or its equivalent who
is—
‘‘(aa) deficient in basic skills,
including limited English pro-
ficiency;
‘‘(bb) a low-income indi-
vidual; and
‘‘(cc) 
not 
attending 
any
school.
‘‘(IV) Subject to the juvenile or
adult justice system or ordered by a
court to an alternative school.
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‘‘(V) A low-income individual who
is pregnant or parenting and not at-
tending any school.
‘‘(VI) A youth who is not attend-
ing school or a youth attending an al-
ternative school, who is homeless, a
runaway, a foster child, a child eligible
for assistance under section 477 of the
Social Security Act (42 U.S.C. 677), or
in an out-of-home placement.
‘‘(VII) A low-income individual
who is not attending school and re-
quires additional assistance to enter or
complete an educational program or to
secure or hold employment.
‘‘(C) IN-SCHOOL
YOUTH.—In this section
the term ‘in-school youth’ means an individual
who is—
‘‘(i) not younger than age 14 nor older
than age 21;
‘‘(ii) a low-income individual; and
‘‘(iii) one or more of the following:
‘‘(I) Deficient in basic literacy
skills, including limited English pro-
ficiency.
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‘‘(II) Homeless, a runaway, a fos-
ter child, a child eligible for assistance
under section 477 of the Social Secu-
rity Act (42 U.S.C. 677), or in an out-
of-home placement.
‘‘(III) Pregnant or parenting.
‘‘(IV) An offender (other than an
individual described in subparagraph
(B)(ii)(IV)).
‘‘(V) An individual who requires
additional assistance to complete an
educational program or to secure or
hold employment.
‘‘(2) EXCEPTION.—Not more than 5 percent of
the individuals assisted under this section in each
local area, in the case of individuals for whom low
income is a requirement for eligibility under this sec-
tion, may be individuals who are not low income.
‘‘(3) LIMITATIONS ON ACTIVITIES FOR IN-SCHOOL
YOUTH.—
‘‘(A) IN GENERAL.—For any program year,
not more than 60 percent of the funds available
for statewide activities under subsection (b), and
not more than 60 percent of funds available to
local areas under subsection (c), may be used to
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provide activities for in-school youth meeting the
requirements of paragraph (1)(B).
‘‘(B) EXCEPTION.—A State that receives a
minimum allotment under section 127(b)(1) in
accordance with section 127(b)(1)(C)(iv) or
under section 132(b)(1) in accordance with sec-
tion 132(b)(1)(B)(iv)(II) may increase the per-
centage described in subparagraph (A) for a
local area in the State, if—
‘‘(i) after an analysis of the eligible
youth population in the local area, the
State determines that the local area will be
unable to use at least 40 percent of the
funds available for activities under sub-
section (b) or (c) to serve out-of-school youth
due to a low number of out-of-school youth;
and
‘‘(ii)(I) the State submits to the Sec-
retary, for the local area, a request includ-
ing a proposed increased percentage for
purposes of subparagraph (A), and the sum-
mary of the eligible youth population anal-
ysis; and
‘‘(II) the request is approved by the
Secretary.
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‘‘(4) CONSISTENCY WITH COMPULSORY SCHOOL
ATTENDANCE LAWS.—In providing assistance under
this section to an individual who is required to attend
school under applicable State compulsory school at-
tendance laws, the priority in providing such assist-
ance shall be for the individual to attend school regu-
larly.’’.
(e) STATEWIDE
ACTIVITIES.—Section 129(b) (29
U.S.C. 2854(b)) is amended to read as follows:
‘‘(b) STATEWIDE ACTIVITIES.—
‘‘(1) IN GENERAL.—Funds reserved by a Gov-
ernor for a State as described in sections 128(a) and
133(a)(1) shall be used, regardless of whether the
funds were allotted to the State under section
127(b)(1)(C) or under paragraph (1)(B) or (2)(B) of
section 132(b) for statewide activities, which may
include—
‘‘(A) conducting—
‘‘(i) evaluations under section 136(e) of
activities authorized under this chapter and
chapter 5 in coordination with evaluations
carried out by the Secretary under section
172;
‘‘(ii) research; and
‘‘(iii) demonstration projects;
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‘‘(B) providing incentive grants to local
areas for regional cooperation among local
boards (including local boards in a designated
region as described in section 116(c)), for local
coordination of activities carried out under this
title, and for performance by local areas as de-
scribed in section 136(i)(2);
‘‘(C) providing technical assistance and ca-
pacity building activities to local areas, one-stop
operators, one-stop partners, and eligible pro-
viders, including the development and training
of staff, the development of exemplary program
activities, the provision of technical assistance to
local areas that fail to meet local performance
measures described in section 136(c), and the
provision of technology to facilitate remote access
to services provided through the one-stop delivery
system in the State;
‘‘(D) operating a fiscal and management
accountability information system under section
136(f);
‘‘(E) carrying out monitoring and oversight
of activities carried out under this chapter and
chapter 5, which may include a review com-