134 
(2) in paragraph (1)(A)(ii), by striking ‘‘sub-
section 
(b)(2)(C)’’ 
and 
inserting 
‘‘subsection 
(b)(2)(B)’’; and 
(3) by amending paragraph (3) to read as fol-
lows: 
‘‘(3) DETERMINATIONS.—In determining such 
local levels of performance, the local board, the chief 
elected official, and the Governor shall ensure such 
levels are adjusted based on the specific economic 
characteristics (such as unemployment rates and job 
losses or gains in particular industries), demographic 
characteristics, or other characteristics of the popu-
lation to be served in the local area, such as poor 
work history, lack of work experience, dislocation 
from high-wage employment, low levels of literacy or 
English proficiency, disability status, including the 
number of veterans with disabilities, and welfare de-
pendency.’’. 
(c) REPORT.—Section 136(d) (29 U.S.C. 2871(d)) is 
amended— 
(1) in paragraph (1), by striking ‘‘and the cus-
tomer satisfaction indicator’’ in both places that it 
appears; 
(2) in paragraph (2)— 
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srobinson on DSK4SPTVN1PROD with BILLS
135 
(A) in subparagraph (A), by striking ‘‘sec-
tion 
134(d)(4)’’ 
and 
inserting 
‘‘section 
134(c)(4)’’; 
(B) in subparagraph (E), by striking ‘‘(ex-
cluding participants who received only self-serv-
ice and informational activities); and’’ and in-
serting a semicolon; 
(C) in subparagraph (F), by striking the 
period and inserting ‘‘; and’’; and 
(D) by adding at the end the following: 
‘‘(G) the number of participants who have 
received services other than followup services, 
authorized under this title, in the form of work 
ready services described in section 134(c)(2), 
and training services described in section 
134(c)(4), respectively; 
‘‘(H) the number of participants who have 
received followup services authorized under this 
title; and 
‘‘(I) the cost per participant for services 
authorized under this title.’’; and 
(3) by adding at the end the following: 
‘‘(4) DATA VALIDATION.—In preparing the re-
ports described in this subsection, the States shall 
establish procedures, consistent with guidelines 
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srobinson on DSK4SPTVN1PROD with BILLS
136 
issued by the Secretary, to ensure the information 
contained in the report is valid and reliable.’’. 
(d) SANCTIONS
FOR STATE.—Section 136(g) (29 
U.S.C. 2871(g)) is amended— 
(1) in paragraph (1)(A), by striking ‘‘or (B)’’; 
and 
(2) in paragraph (2), by striking ‘‘section 503’’ 
and inserting ‘‘section 136(i)’’. 
(e) SANCTIONS FOR LOCAL AREAS.—Section 136(h) 
(29 U.S.C. 2871(h)) is amended— 
(1) in paragraph (1), by striking ‘‘or (B)’’; and 
(2) by amending paragraph (2)(B) to read as 
follows: 
‘‘(B) APPEAL TO GOVERNOR.—A local area 
that is subject to a reorganization plan under 
subparagraph (A) may, not later than 30 days 
after receiving notice of the reorganization plan, 
appeal to the Governor to rescind or revise such 
plan. In such case, the Governor shall make a 
final decision not later than 30 days after the 
receipt of the appeal.’’. 
(f) INCENTIVE GRANTS.—Section 136(i) (29 U.S.C. 
2871(i)) is amended to read as follows: 
‘‘(i) INCENTIVE GRANTS FOR STATES AND LOCAL 
AREAS.— 
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137 
‘‘(1) INCENTIVE GRANTS FOR STATES.— 
‘‘(A) IN
GENERAL.—From funds appro-
priated under section 174, the Secretary may 
award incentive grants to States for exemplary 
performance in carrying programs under chap-
ters 4 and 5 of this subtitle. Such awards may 
be based on States meeting or exceeding the 
performance measures established under this 
section, on the performance of the State in 
serving special populations, including the levels 
of service provided and the performance out-
comes, and such other factors relating to the 
performance of the State under this title as the 
Secretary determines is appropriate. 
‘‘(B) USE OF FUNDS.—The funds awarded 
to a State under this paragraph may be used to 
carry out any activities authorized under chap-
ters 4 and 5 of this title, including— 
‘‘(i) activities that provide technical 
assistance to local areas to replicate best 
practices for workforce and education pro-
grams; 
‘‘(ii) activities that support the needs 
of businesses, especially for incumbent 
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138 
workers and enhancing opportunities for 
retention and advancement; 
‘‘(iii) activities that support linkages 
between the workforce and education pro-
grams, and secondary, post-secondary, or 
career and technical education programs, 
including activities under the Carl D. Per-
kins Career and Technical Education Act 
(20 U.S.C. 2301 et seq.), the Adult Edu-
cation and Family Literacy Act (20 U.S.C. 
9201 et seq.), and the Rehabilitation Act 
of 1973 (29 U.S.C. 701 et seq.); 
‘‘(iv) activities that support regional 
economic development plans that support 
high-wage, high-skill, or high-demand occu-
pations leading to self-sufficiency; 
‘‘(v) activities that coordinate the 
workforce and education programs with 
other Federal and State programs related 
to the workforce and education programs; 
‘‘(vi) activities that support the devel-
opment of an integrated performance in-
formation system that includes common 
measures for one-stop partner programs 
described in section 121; 
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139 
‘‘(vii) activities that support activities 
to improve performance in workforce and 
education programs and program coordina-
tion of workforce and education programs; 
or 
‘‘(viii) activities that leverage addi-
tional training resources, other than those 
provided through workforce and education 
programs, for adults and youth. 
‘‘(2) INCENTIVE GRANTS FOR LOCAL AREAS.— 
‘‘(A) IN GENERAL.—From funds reserved 
under sections 128(a) and 133(a), the Governor 
may award incentive grants to local areas for 
exemplary performance with respect to the 
measures established under this section and 
with the performance of the local area in serv-
ing special populations, including the levels of 
service and the performance outcomes. 
‘‘(B) USE OF FUNDS.—The funds awarded 
to a local area may be used to carry out activi-
ties authorized for local areas under chapters 4 
and 5 of this title, the Adult Education and 
Family Literacy Act, and the Rehabilitation Act 
of 1973 (referred to in this subsection as ‘work-
force and education programs’), and such inno-
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