II 113th CONGRESS 1st Session S. 1370 IN THE SENATE OF THE UNITED STATES July 25, 2013 Mrs. Murray introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions A BILL To establish partnerships to create or enhance educational and skills development pathways to 21st century careers, and for other purposes.

1. Short title; table of contents (a) Short title This Act may be cited as the Promoting Innovations to 21st Century Careers Act . (b) Table of contents The table of contents of this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. Findings; purposes. Sec. 3. Definitions. TITLE I—Career pathways grants Sec. 101. State partnership planning grants. Sec. 102. State partnership implementation grants. Sec. 103. Regional partnership subgrants. Sec. 104. State partnership transition grants. TITLE II—Career pathways partnership supplemental grants Sec. 201. State partnership supplemental grants program authorized. Sec. 202. Types of supplemental grants. TITLE III—General provisions Sec. 301. Establishment of the National Academic and Career Innovation Center. Sec. 302. Accountability and performance measurement. Sec. 303. Evaluation and research. Sec. 304. Benefits and labor standards. Sec. 305. Sunshine provision. Sec. 306. Authorization of appropriations and distribution. 2. Findings; purposes (a) Findings Congress finds the following: (1) A highly skilled and agile workforce is necessary to compete in the global economy and maintain the standard of living of the United States. (2) According to a 2011 report by the Alliance for Excellent Education, nearly 7,000 students drop out of high school every day. Annually, 1,200,000 students will not graduate from high school with their peers as scheduled. (3) High school dropouts have a high social cost. According to a 2009 study by Northeastern University, when compared to high school graduates, high school dropouts will cost the taxpayers an average of $292,000. And for high school dropouts between the ages of 16 and 24, incarceration rates are 63 times higher than among college graduates. (4) According to the United States Census Bureau, on average a student who drops out of high school will have an annual income $20,241. That is $10,386 less than an individual with a high school diploma, and $36,424 less than an individual with a bachelor’s degree. (5) According to the National Center for Education Statistics, 21 percent of first-year undergraduate students in the 2007–2008 academic school year reported taking at least one remedial course. Twenty-four percent of first-time undergraduate community college students reported taking a least one remedial course. (6) According to a 2011 report by the American College Testing Program (ACT), by 2018, 30,000,000 new and replacement jobs will require some postsecondary education. The current decline in postsecondary credential attainment threatens the ability of American businesses to compete globally. Currently, about 90,000,000 Americans (half of the U.S. workforce) lack the skills required to function well in the global economy or to earn family sustaining wages. (7) According to the findings of a 2006 study conducted by the American College Testing Program (ACT), the skills required for high school students to be ready to successfully enter postsecondary education and to enter workforce training programs are comparable. The report found that high school graduates need a comparable level of readiness in reading and mathematics to enter college-level courses without remediation and to enter workforce training programs in jobs that are likely to offer family-supporting wages and the potential for career advancement. (8) According to a 2003 report for the Educational Testing Service, about 40 percent of American adults do not have skills typical of those with some college, but the fastest job growth will occur in those jobs in which incumbent workers currently have skill levels reflecting at least some postsecondary education. (9) An increase in a country’s overall level of educational attainment leads to an increase in its overall rate of economic growth. According to a 2009 Mckinsey & Company report, if the United States had in recent years closed the gap between its educational achievement levels and those of better-performing nations such as Finland and Korea, gross domestic product in 2008 could have been $1,300,000,000 to $2,300,000,000 higher. This represents 9 to 16 percent of gross domestic product. (10) According to the American College Testing Program’s (ACT) analysis of the data from a 2009 Organization for Economic Co-operation and Development repot, if current trends in postsecondary credential attainment continue for the United States, the next generation of American workers will be less educated than the previous generation for the first time in the history of the United States. (b) Purposes The purposes of this Act are— (1) to increase the graduation rate of students from high school; (2) to increase the number of high school students prepared with 21st century skills for college-level work and workforce development after graduation from secondary school; (3) to improve the long-term labor market prospects for young people; (4) to establish State and regional partnerships among education, business, labor, and workforce and economic development leaders for the purposes of— (A) creating or enhancing educational pathways for high school students to postsecondary education, including registered apprenticeship programs, and to 21st century careers; (B) aligning the requirements for successfully exiting secondary education and entering postsecondary education and workforce development; and (C) developing a coherent vision for community development that complements and coordinates ongoing and new efforts in education and workforce and economic development; (5) to increase the use of industry-based skill standards, such as those certifications developed by the Manufacturing Skill Standards Council and the National Institute for Metalworking Skills; and (6) to increase the number of highly skilled and agile workers available to employers, particularly in high skill, high demand industries. 3. Definitions In this Act: (1) At-risk youth The term at-risk youth means a high school student who— (A) is economically disadvantaged, as determined by the student being— (i) eligible for free or reduced price lunch under the Richard B. Russell National School Lunch Act ( 42 U.S.C. 1751 et seq. ); (ii) eligible to receive medical assistance under the State Medicaid program established under title XIX of the Social Security Act ( 42 U.S.C. 1396 et seq. ); or (iii) a member of a family receiving assistance under the State program funded under part A of title IV of the Social Security Act ( 42 U.S.C. 601 et seq. ); (B) is at risk for academic failure; (C) is a student with disabilities; (D) is a student who is a homeless child or youth, as defined in section 725 of the McKinney-Vento Homeless Assistance Act ( 42 U.S.C. 11434a ); (E) is a migrant student or a student with limited English proficiency; (F) is a youth offender; or (G) is in foster care or is aging out of the foster care system. (2) Board The term Board means the National Academic and Career Innovation Center Board established under section 301(d). (3) Career pathway The term career pathway means a rigorous, engaging, and high-quality set of courses and services that— (A) includes an articulated sequence of academic and career courses, including 21st century skills; (B) is aligned with the needs of high skill, high demand industries in a region or State; (C) prepares students for entry into the full range of postsecondary education options, including registered apprenticeships, and careers; (D) provides academic and career counseling in student-to-counselor ratios that allow students to make informed decisions about academic and career options; (E) meets State academic standards, State requirements for secondary school graduation and is aligned with requirements for entry into postsecondary education, and applicable industry standards; and (F) leads to 2 or more credentials, including— (i) a secondary school diploma; and (ii) a postsecondary degree, an apprenticeship or other occupational certification, a certificate, or a license. (4) Center The term Center means the National Academic and Career Innovation Center established under section 301. (5) Director The term Director means the Director of the National Academic and Career Innovation Center. (6) Dropout recovery The term dropout recovery means a wide range of effective efforts to provide former high school students who did not graduate from secondary school in a standard number of years with an opportunity to earn a secondary school diploma and continue onto postsecondary education. (7) High school student The term high school student means a student who is enrolled in a public secondary school— (A) in one of grades 9 through 12; or (B) in the case of a student enrolled in a secondary school approved by a State to issue a regular diploma concurrently with a postsecondary degree or with not more than 2 years' worth of postsecondary academic credit, in grade 13. (8) High skill, high demand industry (A) In general The term high skill, high demand industry means an industry that— (i) has a significant current or potential impact on the regional economy overall; (ii) brings net dollars into a region or is critical to attracting and sustaining businesses within the industry; (iii) stimulates the growth of other supporting businesses, or the growth of other industries or economic sectors within the region; (iv) provides workers with competitive and family-supporting wages and benefits that increase the strength and vitality of the entire regional economy; and (v) provides opportunities for career advancement. (B) Determination The determination of whether an industry is a high skill, high demand industry shall be made using State or regional business and labor market projections and an analysis of real time data derived from labor market transactions. (9) Institution of higher education The term institution of higher education has the meaning given the term in section 101 of the Higher Education Act of 1965 ( 20 U.S.C. 1001 ). (10) Local educational agency The term local educational agency has the meaning given the term in section 9101 of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 7801 ). (11) One-stop center The term one-stop center means a one-stop center described in section 134(c) of the Workforce Investment Act of 1998 (29 U.S.C. 2864(c)). (12) Pathways grants The term pathways grants means the grants authorized under title I (excluding section 103) and title II. (13) Postsecondary education The term postsecondary education means— (A) not less than a 1-year program of instruction offered by an institution of higher education that is acceptable for credit toward an associate or a baccalaureate degree; or (B) a certificate or registered apprenticeship program at the postsecondary level offered by an institution of higher education or a nonprofit educational institution. (14) Regional partnership The term regional partnership means a regional pathways partnership receiving funds under section 103. (15) Registered apprenticeship program The term registered apprenticeship program means an industry skills training program at the postsecondary level that combines technical and theoretical training through structured on-the-job learning with related instruction (in classrooms or through distance learning) while an individual is employed, working under the direction of qualified personnel or a mentor, and earning incremental wage increases aligned to enhanced job proficiency, resulting in the acquisition of a nationally recognized and portable certificate, under a plan approved by the Office of Apprenticeship or a State agency recognized by the Department of Labor. (16) Secondary school The term secondary school has the meaning given the term in section 9101 of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 7801 ). (17) State The term State means each of the several States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands. (18) State educational agency The term State educational agency has the meaning given the term in section 9101 of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 7801 ). (19) State P–16 or P–20 Council The term State P–16 or P–20 Council means a body of public officials and public and private sector leaders that— (A) is established by a State executive order, statute, or voluntary agreement and may be regularly chaired or co-chaired by the Governor of the State; (B) sets formal, aligned expectations for a seamless system of education from the earliest years of a child’s development through the kindergarten through grade 12 system and into and through postsecondary education; (C) acts as a venue for collaboration across early learning, including preschool (the P ) through the first 4 years of higher education (the 16 ) or through doctoral and professional schools (the 20 ); and (D) receives State, foundation, business, or other funding to carry out the body's agenda. (20) State partnership The term State partnership means a State pathways partnership as established or appointed under section 101(b)(1). (21) State workforce investment board The term State workforce investment board has the meaning given the term State board in section 101 of the Workforce Investment Act of 1998 (29 U.S.C. 2801). (22) Work-based experience The term work-based experience means an activity for high school students, postsecondary students, or teachers that provides career knowledge, skills, and abilities, including job-shadowing and internships. I Career pathways grants 101. State partnership planning grants (a) Grants authorized (1) In general The Director is authorized to award planning grants to eligible State partnerships for the purpose of enabling the State partnerships to complete comprehensive planning to carry out activities establishing career pathways. (2) Grant period A planning grant awarded under this section shall be for a period of not more than 1 year. (3) Maximum amount A planning grant awarded under this section may not be more than $250,000. (4) Nonrenewability The Director shall not award a State partnership more than 1 planning grant under this section. (b) Eligibility (1) In general An entity shall be a State pathways partnership for purposes of this Act if the entity— (A) has been established as the State pathways partnership by the Governor of a State and is composed of the members described in paragraph (3); or (B) has been appointed by the Governor of a State as the State pathways partnership under paragraph (2). (2) Appointment of organization The Governor may appoint an existing education, workforce, or economic development organization, such as the State workforce investment board, the State P–16 or P–20 Council, a joint labor-management partnership organization, or a business-education partnership, as the State pathways partnership for purposes of this Act if the organization— (A) includes, or modifies the members of the organization to include, the representatives required under paragraph (3)(A); or (B) establishes a subcommittee that includes such representatives and uses such subcommittee to carry out the duties of the State partnership under this Act. (3) Partners (A) Required partners A State pathways partnership shall include a representative from each of the following: (i) Public secondary education, who shall be the chief State school officer. (ii) A public 2-year institution of higher education. (iii) A public 4-year institution of higher education. (iv) A business and trade organization. (v) An economic development entity. (vi) The State workforce investment board. (vii) The State employment security agency. (viii) The recognized State federation of labor. (ix) A joint apprenticeship and training committee. (x) A labor organization that represents teachers. (xi) The State P–16 or P–20 Council, if such a council exists in the State. (B) Other partners A State pathways partnership may include other members, such as— (i) additional representatives described in subparagraph (A); (ii) additional representatives of public secondary education, such as the chief State school officer responsible for career and technical education; or (iii) nontraditional participants, including representatives from philanthropic organizations or members of regional partnerships. (4) State authority The Governor of a State receiving a planning grant under this section has the authority to appoint a fiscal and an administrative agent for the State partnership. (c) Application (1) In general Each State partnership desiring a planning grant under this section shall submit an application to the Director at such time, in such manner, and accompanied by such information as the Director may reasonably require. (2) Contents Each application submitted under this subsection shall— (A) describe the members of the State partnership; (B) describe the activities for which assistance under this section is sought, including the process by which the applicable industry standards for a career pathway supported under the grant will be identified and considered; (C) describe proposed performance benchmarks to be used to measure progress under the planning grant; (D) provide a budget for use of funds to complete required activities in section (d); and (E) provide such additional assurances and information as the Director determines to be essential to ensure compliance with the requirements of this section. (3) Performance benchmarks Before a State partnership receives a planning grant under this section, the State partnership and the Director shall jointly determine the performance benchmarks that shall be established for the purposes of the planning grant. (d) Required activities A State partnership receiving funds under this subsection shall carry out all of the following: (1) Analyze State labor market information in order to create career pathways and carry out the purposes of this Act. (2) Identify and agree on State or regional high skill, high demand industries for the purposes of planning career pathways. (3) Identify existing Federal, State, and private resources for youth development and plan to leverage other existing Federal, State, and private resources to strengthen partnerships and implementation grant activities. (4) (A) Provide a description of existing (as of the time of the application)— (i) State academic standards for secondary school graduation and industry standards; (ii) State requirements for secondary school graduation and entry requirements for postsecondary education; (iii) State policies or models for career and guidance counseling; and (iv) career pathway-related programs and activities for secondary school students, such as programs of study under the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2301 et seq.), or early college or dual enrollment programs. (B) A State partnership may use an already completed review of the information described in subparagraph (A) that has been completed by the State P–16 or P–20 Council, or other entity recognized by the State, if the review is not more than 2 years old. If the review does not contain all of the information required in clauses (i) through (iv) of subparagraph (A), the State partnership shall complete the missing components. (5) Plan for the alignment of State requirements for secondary school graduation and entry to postsecondary education. (6) Identify possible areas in which statewide teacher and administration professional development or teacher certification related to promising practices in career pathways will be needed and plan for such professional development. (7) Plan for and create a State partnership implementation plan to submit to the Center. (8) Determine the criteria for selecting regional partnerships for implementation subgrants in accordance with section 102(e)(1), which— (A) will incorporate the concepts of career pathways and high skill, high demand industries; and (B) may incorporate criteria such as low graduation rates and low academic achievement in the schools served by the regional partnership. (e) Matching requirement Each State partnership receiving a planning grant under this section shall provide an amount, in cash or in-kind, that is not less than 15 percent of the amount of the grant, to carry out the activities supported by the grant. The matching requirement under this subsection may be provided from funds available from other Federal, State, local, or private sources to carry out such activities. (f) Reporting requirement Not later than 1 year after an eligible State partnership receives a planning grant under this section, the partnership shall submit a report to the Director on the State’s performance of the activities described in subsection (d). The report shall include— (1) a description of the use of funds, including matching funds required under subsection (e), to carry out required activities under subsection (d); and (2) a description of the progress of the State partnership in meeting the performance benchmarks under subsection (c)(3). 102. State partnership implementation grants (a) Grants authorized (1) In general The Director is authorized to award implementation grants, on a competitive basis, to eligible State partnerships described in subsection (c) to enable the State partnerships to establish or enhance career pathways. (2) Grant period An implementation grant awarded under this section shall be for a period of not more than 5 years. (3) Nonrenewability (A) In general The Director shall not award a State partnership more than 1 implementation grant under this section except as provided in subparagraph (B). (B) Exception In cases where the Director determines that the State partnership is high performing and the activities supported by the State partnership warrant additional grant funding, the Director may continue to provide funding to a State partnership through a transition grant under section 104. (b) Use of funds An eligible State partnership that receives an implementation grant under this section— (1) may reserve not more than 20 percent of the grant funds to carry out the activities described in paragraphs (2) through (5) of subsection (e); and (2) shall use not less than 80 percent of the grant funds to make subgrants to regional partnerships in accordance with subsection (e)(1). (c) Eligibility To be eligible for an implementation grant under this section, a State partnership described in section 101(b) shall have— (1) received a planning grant under section 101 and completed all requirements of such grant; or (2) completed a satisfactory application, including a plan to coordinate with required partners and complete the required activities described in section 101(d) during the 5-year period of an implementation grant under this section. (3) State partnership authority A State partnership receiving an implementation grant under this section shall appoint a fiscal and an administrative agent for the implementation of such grant. (d) Application (1) In general Each eligible State partnership desiring an implementation grant under this section shall submit an application to the Director at such time, in such manner, and accompanied by such information as the Director may reasonably require. (2) Contents Each application submitted under this subsection shall include— (A) a description of the members of the State partnership; (B) a description of how the State partnership completed the required activities described in section 101(d), if applicable or, in the case of a State partnership that has not completed such activities, a description of how the State partnership plans to complete such activities, including a description of the process by which career pathways will be selected and any applicable industry standards for the career pathways will be identified and considered; (C) a description of the activities for which assistance under this section is sought, including a description of the career pathways that will be supported by such activities; (D) a description of how the State partnership will coordinate with required partners and complete the required partnership activities described in subsection (e) over the 5-year duration of an implementation grant awarded under this section; (E) a budget proposal of the cost of the activities supported by the implementation grant, and a timeline for the provision of the matching funds required under subsection (f); (F) proposed performance measures in accordance with section 302 to be used to assess and evaluate the progress of the career pathways activities of regional partnerships; (G) a description of how the State partnership will collect long-term aggregated data on students assisted under the implementation grant, in accordance with section 444 of the General Education Provisions Act (the Family Educational Rights and Privacy Act of 1974) ( 20 U.S.C. 1232g ), for purposes of reporting progress in grant activities; and (H) such additional assurances as the Director determines to be essential to ensure compliance with the requirements of this section. (e) Required activities An eligible State partnership receiving an implementation grant under this section shall— (1) award subgrants to eligible regional partnerships in accordance with section 103; (2) develop and implement coherent, early, and sustained statewide academic and career guidance strategies linked to high skill, high demand industries; (3) collect data from regional partnerships on the performance measures selected by the partnership and Director in accordance with section 302 for career pathways activities carried out by the regional partnerships; (4) convene the State partnership members on a regular basis, and at least on a semiannual basis; (5) assist regional partnerships to create coherent career pathways, including the provision of technical assistance and capacity building activities, such as the dissemination of best practices and tools within the State; (6) provide any necessary statewide teacher and school administrator professional development related to career pathways and coordinate with existing professional development efforts or activities; (7) in consultation with regional partnerships, make recommendations on State and local policies to foster the development of career pathways for high school students; and (8) in coordination with regional partnerships, conduct ongoing studies to continuously improve career pathways, including testing innovative approaches, within the State in order to achieve high level performance and to maximize coordination of the studies with the Center's studies under title III. (f) Matching requirement (1) In general Each State partnership receiving an implementation grant under this section shall provide an amount, in cash or in-kind, that is not less than 25 percent of the amount of the grant, to carry out the activities supported by the grant. The matching requirement under this subsection may be provided from funds available from other Federal, State, local, or private sources to carry out such activities. (2) Timing of matching contribution An eligible State partnership may satisfy the matching requirement of an implementation grant awarded under this section at any time during the 5-year duration of the grant, as specified in the budget proposal that is submitted in the application process and approved by the Director. (g) Reporting requirement For each year of the grant period, each eligible State partnership receiving an implementation grant under this section shall submit a report to the Director on the State’s performance of the activities described in subsection (e). Each report shall include— (1) a description of the use of funds, including matched funds, to complete required activities under subsection (d); and (2) a description of the performance of the State partnership in meeting the performance measures under section 302. 103. Regional partnership subgrants (a) In general The administrative agent appointed under section 102(c)(3) by a State partnership receiving an implementation grant under such section shall, on behalf of the State partnership, award subgrants, on a competitive basis, to eligible regional partnerships to enable the eligible regional partnerships to establish or enhance career pathways. (b) Eligibility for subgrants (1) Required partners In order for a regional area of a State served by a State partnership receiving an implementation grant under section 102 to participate in the subgrant program under this section, the regional area shall form a regional pathways partnership that includes a representative from each of the following: (A) Public secondary education, who may be a representative of a local educational agency. (B) Postsecondary education, including public 2-year and 4-year postsecondary education institutions. (C) A business or trade organization. (D) The local workforce investment board (meaning a local board, as defined in section 101 of the Workforce Investment Act of 1998 ( 29 U.S.C. 2801 )). (E) An economic development entity. (F) Local elected officials. (G) A central labor council. (H) A labor organization that represents teachers. (I) High school students and postsecondary education students. (J) Parents or legal guardians of high school students and postsecondary education students. (K) A community-based organization that is relevant to career pathways. (2) Other partners A regional partnership may include other members, such as additional representatives described in paragraph (1), representatives of educational service agencies, or nontraditional participants, including representatives from philanthropic organizations. (3) Designation A regional area may agree to designate an existing education, workforce, or economic development organization such as a local workforce investment board, regional economic development authority, joint labor management partnership organization, or business-education partnership, as the regional pathways partnership for purposes of this Act if the organization— (A) includes, or modifies the members of the organization to include, the representatives required under paragraph (1); or (B) establishes a subcommittee that includes such representatives and uses such subcommittee to carry out the duties of the regional partnership under this Act. (c) Regional partnership authority A regional partnership shall choose an entity to be the fiscal agent and an entity to be the administrative agent for the subgrant funds received under this section. (d) Application for subgrant (1) In general Each regional partnership desiring a subgrant under this section shall submit an application to the State partnership at such time, in such manner, and accompanied by such information as the State partnership may reasonably require. (2) Contents Each application submitted pursuant to this subsection shall include— (A) a description of the activities for which assistance under this section is sought, including activities to address the needs of at-risk youth; (B) (i) a description of the career pathways, including the applicable industry standards used for the career pathways, that will be supported by such activities, including, as applicable, a description of the types of industry certification assessments to be funded under subsection (f)(1); and (ii) information describing how the partnership incorporates the concepts of the career pathways and high skill, high demand industries; (C) proposed performance measures in accordance with section 302 to be used to assess and evaluate the progress of the career pathways activities under this section; (D) a budget for use of funds to complete the required activities in subsection (e); (E) a definition of the geographic boundaries of the region to be served by the career pathways initiatives, including whether the region is— (i) a local workforce investment area established under section 116 of the Workforce Investment Act of 1998 ( 29 U.S.C. 2831 ); (ii) an economic development area as defined by the State; or (iii) justified on other criteria, including— (I) the alignment of labor market areas; (II) school districts and education service agencies; (III) postsecondary educational institutions and area career and technical schools; (IV) geographic distances; or (V) regional resources that are available to effectively administer the activities carried out under this section; (F) a description of how meetings of the regional partnership will be convened on a regular basis; (G) an assurance that employers providing student work-based experiences will provide or arrange for the necessary liability coverage as determined by the participating secondary schools; and (H) such additional assurances as the State partnership determines to be essential to ensure compliance with the requirements of this section. (e) Use of funds (1) Reservation of amounts Of the subgrant amount received by an eligible regional partnership under this section— (A) not less than 85 percent of the subgrant funds shall be used to carry out the activities described in subparagraphs (A) through (D) of paragraph (2); and (B) a total of not more than 15 percent of the subgrant funds shall be spent to— (i) carry out the activities described in subparagraphs (E) through (G) of paragraph (2); (ii) pay for the costs associated with the fiscal or administrative agent; or (iii) sustain the regional partnership. (2) Required activities A regional partnership receiving a subgrant under this section shall use subgrant funds to— (A) establish or enhance career pathways for high school students in high skill, high demand industries; (B) establish or designate an intermediary with demonstrated experience in working with schools serving high school students, postsecondary education, and the workforce delivery system, and within the partnership area that shall under financial agreement with the regional partnership— (i) coordinate career pathways activities; (ii) conduct community outreach and informational activities related to career pathways; (iii) consider the needs of individual school districts in the regional partnership area; (iv) identify academic and career counseling options and resources (such as the one-stop career center career services, including resources and services funded under the Wagner-Peyser Act ( 29 U.S.C. 49 et seq. )) to counsel students and the students' families in the development of career pathways plans to ensure that students' course crediting and content requirements for secondary school graduation and entrance into postsecondary education are aligned and that shall have a ratio of students to counselors of not more than 1:150; and (v) develop work-based experiences for high school students and teachers; (C) train and provide professional development to individuals providing academic and career counseling options in the area served by the regional partnership, or designate the intermediary described in subparagraph (B) to provide such training and professional development; (D) develop and implement a dropout recovery strategy for entry into career pathways for former high school students who have dropped out of school; (E) complete a community asset map or build upon an existing analysis of resources by workforce boards or other entities to identify those existing resources that can be leveraged in a region and the gaps that need to be addressed to strengthen connections between effective education and career success; (F) coordinate with existing support services for students; and (G) track and report on the progress of the regional partnership in meeting performance goals negotiated with the State partnership. (f) Optional activities A regional partnership receiving a subgrant under this section may— (1) provide funds for student fees and books and equipment fees associated with completing industry certification assessments, or examinations for Advanced Placement and International Baccalaureate courses, for high school students who are at or below 200 percent of the Federal poverty level line, in order to support a career pathway in a high skill, high demand industry for such students; (2) provide funds for costs associated with student work-based experiences in high skill, high demand industries, except that no such funds shall be used to pay wages; (3) create 1-to-1 mentorships between the most at-risk youth in a career pathway and responsible, supportive adults within the region as identified by the regional partnership; (4) assist students in identifying and completing financial aid applications for postsecondary education; and (5) provide funds to expand the scope of career services for career pathway students offered by one-stop centers within the region. (g) Reporting requirement For each year of the grant period, each eligible regional partnership receiving a subgrant under this section shall submit a report to the State partnership on the partnership's performance on the activities described in subsection (e). Each report shall include— (1) a description of the use of funds, including any matched funds, to complete the required activities under subsection (e); and (2) a description of the performance of the partnership in meeting the performance measures, as described in section 302 consistent with section 444 of the General Education Provisions Act. 104. State partnership transition grants (a) Grants authorized (1) In general The Director is authorized to award transition grants, on a competitive basis, to eligible State partnerships described in subsection (b) to enable the State partnerships to continue successful career pathways programs, while increasing State and regional investment and gradually decreasing Federal funds. (2) Grant period A transition grant awarded under this section shall be for a period of not more than 3 years. (3) Nonrenewability The Director shall not award a State partnership more than 1 transition grant under this section. (b) Eligibility To be eligible for a transition grant under this section, a State partnership shall have received an implementation grant under section 102 and satisfactorily completed all requirements of such grant. (c) Application (1) In general Each eligible State partnership desiring a transition grant under this section shall submit an application to the Director at such time, in such manner, and accompanied by such information as the Director may reasonably require. (2) Contents Each application submitted under this subsection shall provide— (A) a description of the activities for which assistance under this section is sought; (B) a description of how the State partnership has made progress on the activities described in section 102(e); (C) description of how the State partnership will coordinate with required partners and complete the required partnership activities described in subsection (d) over the duration of a grant awarded under this section; (D) a budget proposal of the cost of the activities supported by the transition grant, and a timeline for the provision of the matching funds required under subsection (e); (E) proposed performance measures in accordance with section 302 to be used to assess and evaluate the progress of the activities of State partnerships under this section; and (F) such additional assurances as the Director determines to be essential to ensure compliance with the requirements of this section. (d) Activities A State partnership receiving a transition grant under this section— (1) shall use grant funds to continue the activities required under section 102(e); and (2) may use grant funds to expand career exploration and guidance activities to students in grades lower than grade 9, with priority given to serving such students who are at risk of failure to graduate, based on indicators for middle school students predictive of whether or not a student is on track to graduate from secondary school with a regular diploma. (e) Matching requirement (1) In general Each State partnership receiving a transition grant under this section shall provide, from funds available from other Federal, State, local, or private sources to carry out the activities supported by the transition grant— (A) for the first year of the grant, an amount that is not less than 25 percent of the amount of the grant for such year; (B) for the second year of the grant, an amount that is not less than 50 percent of the amount of the grant for such year; and (C) for the third year of the grant, an amount that is not less than 75 percent of the amount of the grant for such year. (2) Use and type of matching funds The matching funds required under paragraph (1) may be provided in cash or in-kind and shall be used to carry out the activities supported by the transition grant under this section. (f) Reporting Requirement For each year of the grant period, each eligible State partnership receiving a transition grant under this section shall submit a report to the Director on the State’s performance of the activities described in subsection (d). Each report shall include— (1) a description of the use of funds, including matched funds, to complete the required activities described in subsection (d); and (2) a description of the performance of the State partnership in meeting the performance measures, as described in section 302. II Career pathways partnership supplemental grants 201. State partnership supplemental grants program authorized (a) Purposes The purposes of this title are— (1) to enhance the capacity of States and regions to offer career pathways to high school students; (2) to enhance one-stop career services for youth to more effectively provide career exploration and guidance services to high school students and postsecondary students; and (3) to increase the number of registered apprenticeship programs in high skill, high demand industries. (b) Grants authorized The Director is authorized to award, on a competitive basis, supplemental grants described in section 202 to States to enable the States to carry out the activities described in such section. (c) Duration of grant Each eligible State receiving a grant under this title shall use the grant funds within a 5-year period, as designated by the Director. (d) Non-Renewability An eligible State may not receive more than 1 grant under each subsection of section 202. 202. Types of supplemental grants (a) Career pathways curriculum development grants (1) Purposes The purposes of a grant under this subsection are— (A) to increase the number of innovative, high quality, rigorous, engaging, and relevant career pathways curricula available for the purpose of instructing high school students through the development of new, or enhancement of existing, model courses of study focused on high skill, high demand industries; (B) to support the development of career pathways curricula that develop and reinforce reading and mathematics skills for high school students, including through the real world application of academics; and (C) to establish teacher training processes that will provide effective professional development in the application of each career pathways course sequence assisted under this subsection. (2) Applications (A) In general The Governor of a State, in partnership with the State partnership serving the State, may submit an application for a curriculum grant under this subsection to the Director at such time, in such manner, and containing such information as the Director may require. (B) Peer review Applications for a curriculum grant under this subsection shall be peer reviewed by a panel of experts in curriculum development, career pathways or career and technical education, and workforce development and industry. (C) Contents Each application submitted under this paragraph shall— (i) be submitted during the period that the State partnership serving the State is receiving an implementation grant under section 102; (ii) demonstrate a need for the curriculum grant; (iii) describe the activities for which assistance under this subsection is sought, including— (I) how the applicant will carry out the activities described in paragraph (4); (II) how the applicant will include the industry standards of the relevant industries in the development of the curriculum and, in the case of an applicant using grant funds to carry out paragraph (5)(A), the industry certificates to be used; (III) how the applicant will collaborate with and incorporate input from representatives from the State partnership members in the development of the curriculum; and (IV) the research or evidence that supports the key curriculum theories and activities of the proposed career pathways curriculum; (iv) include a budget of the cost of the project and a timeline for the provision of the matching funds required under paragraph (6); (v) include a description of the performance benchmarks to be used to measure the development, implementation, distribution, and professional development concerning career pathways curriculum; (vi) provide an assurance that curricula and other products or materials developed under this Act will be made available to the Center for distribution; and (vii) provide such additional assurances as the Director determines to be essential to ensure compliance with the requirements of this title. (3) Fiscal and administration agent The Governor of a State receiving a curriculum grant under this subsection shall appoint the State educational agency to serve as the fiscal agent and administer the grant funds. (4) Required activities A State receiving a curriculum grant under this subsection shall use the grant funds— (A) to develop a curriculum with industry engagement that— (i) provides a logical sequence of integrated academic and career-related coursework focused on a specific high skill, high demand industry and meets regional or national workforce needs; (ii) incorporates rigorous academic content from core academic subjects, as defined in section 9101 of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 7801 ), in a majority of the courses within each curricular sequence of study, so that a majority of courses are eligible for academic credit, and links the material in each course to State academic content standards; (iii) provides academic rigor to career pathways courses; (iv) emphasizes the development of communication skills, such as reading, writing, speaking, mathematic, and science skills across all courses and provides for the development of work readiness skills and 21st century work skills, including problem solving skills, communication skills, analytic skills, time management, teamwork, and technological prowess; (v) provides knowledge of all aspects of an industry; (vi) uses best practices within curriculum development theory, including rigorous standards, higher order thinking skills, real world applications, project-based learning, contextual learning, and other practices; (vii) incorporates opportunities for work-based experience within each career pathways course sequence; and (viii) prepares high school students for postsecondary education and skills development programs; (B) to create curriculum materials and instructional resources that will support the teaching and learning of the career pathways curriculum developed under this subsection; and (C) to develop a statewide teacher professional development implementation plan that will describe the model of professional development used for teacher training, including courses that will increase the capacity of teachers to effectively implement the career pathways curriculum developed under this subsection, and a description of the costs of such a program. (5) Optional use of funds In addition to the required activities under subsection (g), a State receiving a grant under this subsection may use the grant funds— (A) to create career and technical education course sequences that lead to an industry certificate; (B) to develop and include transitional mathematics and reading courses for students who struggle to meet the academic requirements necessary to enter and successfully complete postsecondary education or workforce development; or (C) to provide options for high school students to concurrently earn college credit through establishing college course articulation agreements. (6) Matching requirement Each State partnership receiving a curriculum grant under this subsection shall provide an amount, in cash or in-kind, that is not less than 25 percent of the amount of the grant, to carry out the activities supported by the grant. The matching requirement under this subsection may be provided from funds available from other Federal, State, local, or private sources to carry out such activities. (7) Evaluation and reporting requirement Each State partnership in a State receiving a curriculum grant under this subsection shall annually report to the Director regarding— (A) the progress made on the activities described in paragraph (4), including the progress made in the development and distribution of the career pathways curriculum assisted through the grant; (B) the data and information gathered to benchmark appropriate outcomes of the curriculum development, implementation, distribution, and professional development, which may include student outcomes; (C) the use of grant funds, including matched funds, by the State; and (D) the State's progress on the performance benchmarks described in paragraph (2)(C) that are established with the agreement of the Director. (8) Rule of construction Nothing in this section shall be construed to authorize an officer or employee of the Federal Government to mandate, direct, or control a State's, local educational agency's, or school's specific instructional content, academic achievement standards or assessments, curriculum, or program of instruction. (b) Career pathways capacity expansion and modernization grants (1) Purpose The purpose of this subsection is to enable States to better prepare students for postsecondary education and careers in State and regional high skill, high demand industries by providing eligible States with grants in order to expand, enhance, and modernize school facilities and equipment to reflect the requirements of State and regional high skill, high demand industries. (2) Definition of qualifying region In this subsection, the term qualifying region means a region of a State that has a regional partnership that has— (A) previously received a partnership implementation subgrant under section 103; and (B) a low graduation rate, compared to the State average, or a high percentage of at-risk youth, compared to the State average. (3) Application (A) In general A Governor of a State, in partnership with the State partnership serving the State, desiring an expansion and modernization grant under this section shall submit an application to the Director at such time, in such manner, and accompanied by such information as the Director may reasonably require. (B) Contents Each application submitted under subparagraph (A) shall— (i) be submitted during the period that the State partnership serving the State is receiving an implementation grant under section 102; (ii) demonstrate a need for the expansion, enhancement, or modernization of existing facilities or equipment as of the date of the application, in qualifying regions; (iii) describe the activities for which assistance under this subsection is sought; (iv) describe creative arrangements to maximize the use of the facilities and equipment that are expanded, enhanced, or modernized with grant funds under this subsection, by sharing the facilities and equipment with other schools or postsecondary programs; (v) include a budget of the cost of the project and a timeline for the provision of the matching funds required under paragraph (6); (vi) describe the performance benchmarks to be used to measure the State's progress in implementing a grant under this subsection; and (vii) provide such additional assurances as the Director determines to be essential to ensure compliance with the requirements of this title. (4) Fiscal and administration agent The Governor of a State receiving an expansion and modernization grant under this subsection shall appoint the State facilities authority or State agency responsible for school construction and renovation to serve as the fiscal agent and administer the grant funds. (5) Required activities A State receiving an expansion and modernization grant under this subsection shall use the grant funds to— (A) make necessary expansions or enhancements to existing facilities in qualifying regions; and (B) modernize equipment essential to instruction within the career pathways curriculum. (6) Non-Federal funds matching requirement Each State partnership receiving an expansion and modernization grant under this subsection shall provide, from non-Federal sources, an amount that is not less than 50 percent of the amount of the grant, to carry out the activities supported by the grant. The matching requirement under this paragraph may be provided in cash or in-kind. (7) Evaluation and reporting requirements Each State partnership in a State receiving an expansion and modernization grant under this subsection shall annually submit a report to the Director regarding— (A) the State's progress made on the activities described in paragraph (5); (B) the use of grant funds by the State; and (C) the State's progress on the performance benchmarks described in paragraph (3)(B) that are established with the agreement of the Director. (c) Registered Apprenticeship Grants in high skill, high demand industries (1) Purpose The purpose of this subsection is to enable States to expand or create registered apprenticeship programs in high skill, high demand industries. (2) Application (A) In general The Governor, in partnership with the State partnership serving the State, may submit an application for an apprenticeship grant under this subsection to the Director at such time, in such manner, and containing such information as the Director may require. (B) Contents Each application submitted under subparagraph (A) shall— (i) be submitted during the period that the State partnership serving the State is receiving an implementation grant under section 102; (ii) demonstrate a need for creation or expansion of registered apprenticeship programs in high skill, high demand industries; (iii) describe the activities for which assistance under this subsection is sought; (iv) describe the performance benchmarks to be used to measure the development, implementation, and distribution concerning registered apprenticeship programs; (v) include a budget of the cost of the project and a timeline for the provision of the matching funds required under paragraph (5); and (vi) provide such additional assurances as the Director determines to be essential to ensure compliance with the requirements of this title. (3) Fiscal and administration agent In the case of a State receiving an apprenticeship grant under this subsection— (A) that has a State apprenticeship council recognized by the Department of Labor, the State apprenticeship council administrative agency shall serve as the fiscal agent and administer the grant funds; or (B) where the Office of Apprenticeship of the Department of Labor administers the registered apprenticeship program, the Governor of the State shall appoint the appropriate State agency to serve as the fiscal agent and administer the grant funds. (4) Required activities An eligible State receiving an apprenticeship grant under this subsection shall use the grant funds for activities necessary to create or expand registered apprenticeship programs in high skill, high demand industries, including— (A) developing and administering a new or enhancing an existing registered apprenticeship program in a high skill, high demand industry as identified by the State; (B) registering the apprenticeship program with the Department of Labor; (C) providing or arranging for equipment necessary for training in the registered apprenticeship program; (D) developing skills-based theoretical and technical classroom and on-the-job curricula; (E) identifying and training, as appropriate, instructors for the registered apprenticeship program; and (F) conducting outreach and marketing about the registered apprenticeship program to interested stakeholders, including secondary schools serving high school students. (5) Prohibited Use A State partnership receiving an apprenticeship grant under this subsection shall not use any Federal funds provided under the grant to pay wages or provide benefits to workers. (6) Non-Federal funds matching requirement Each State partnership receiving an apprenticeship grant under this subsection shall provide, from non-Federal sources, an amount that is not less than 25 percent of the amount of the grant, to carry out the activities supported by the grant. The matching requirement under this paragraph may be provided in cash or in-kind. (7) Evaluation and reporting requirement Each State partnership in a State receiving an apprenticeship grant under this subsection shall annually submit a report to the Director regarding— (A) the progress made on the activities described in paragraph (4); (B) the use of grant funds, including matched funds, by the State; and (C) the State's progress on the performance benchmarks described in paragraph (2)(B) that are established with the agreement of the Director. (d) Youth one-Stop career services enhancement grant (1) Purpose The purpose of this subsection is to enable States to make career services available through one-stop centers— (A) more welcoming and user-friendly for secondary school students; and (B) more accessible to such students while in school. (2) Application (A) In general The Governor of a State, in partnership with the State partnership serving the State, may submit an application for a career services enhancement grant under this subsection to the Director at such time, in such manner, and containing such information as the Director may require. (B) Contents Each application submitted under subparagraph (A) shall— (i) be submitted during the period that the State partnership serving the State is receiving an implementation grant under section 102; (ii) demonstrate a need for the enhancement or expansion of one-stop career guidance and exploration services for high school students; (iii) describe the activities for which assistance under this subsection is sought; (iv) describe the performance benchmarks to be used to measure the State's progress in implementing a grant under this subsection; (v) include a budget of the cost of the project and a timeline for the provision of the matching funds required under paragraph (5); and (vi) provide such additional assurances as the Director determines to be essential to ensure compliance with the requirements of this subsection. (3) Fiscal and administration agent The Governor of a State receiving a career services enhancement grant under this subsection shall appoint the State workforce investment board or the State workforce administrative entity as the fiscal agent and the entity responsible for administering the grant. The State workforce investment board shall give preference for resources available under this grant to one-stop centers in regions with regional partnerships receiving a subgrant under section 103. (4) Required activities A State receiving a career services enhancement grant under this subsection shall use the grant funds to expand or enhance career guidance and exploration services for students provided through one-stop centers, including resources funded under the Wagner-Peyser Act (29 U.S.C. 49 et seq.), by— (A) enhancing services for students participating in career pathways, such as enhancing— (i) job search and placement assistance and, as appropriate, career counseling; (ii) the provision of employment statistics information, including the provision of accurate information related to local, regional, and national labor market areas, which may include— (I) job vacancy listings in the labor market area; (II) information on the job skills necessary to obtain those jobs; and (III) information related to local occupations in demand and the earnings and skill requirements of such occupations; (iii) the provision of performance information and program cost information on eligible providers of training described in section 122 of the Workforce Investment Act of 1998 ( 29 U.S.C. 2842 ); (iv) comprehensive and specialized assessments of skill levels and development of plans to identify and attain career goals; (v) individual counseling and career planning; and (vi) short-term prevocational services, such as the development of learning skills, presentation skills, resume writing skills, interviewing skills, punctuality, and professional conduct, among others, to prepare individuals for unsubsidized employment; or (B) providing one-stop center career services in proximity to high school students, subject to the requirements of section 134(c) of the Workforce Investment Act of 1998 ( 29 U.S.C. 2864(c) ). (5) Matching requirement Each State partnership receiving a career services enhancement grant under this subsection shall provide an amount, in cash or in-kind, that is not less than 50 percent of the amount of the grant, to carry out the activities supported by the grant. The matching requirement under this subsection may be provided from funds available from other Federal, State, local, or private sources to carry out such activities. (6) Evaluation and reporting requirement Each eligible State partnership in a State receiving a career services enhancement grant under this subsection shall submit a report to the Director regarding— (A) the progress made on the activities described in paragraph (4); (B) the use of grant funds, including matched funds, by the State partnership; and (C) the State's progress on the performance benchmarks described in paragraph (2)(B) that are established with the agreement of the Director. III General provisions 301. Establishment of the National Academic and Career Innovation Center (a) Purpose The purpose of this section is to establish a National Academic and Career Innovation Center that— (1) encourages innovations to address the constant changes in the highly competitive global economy; (2) serves as a national resource for State partnerships and regional partnerships in the United States by— (A) disseminating information on research and best practices regarding the development of career pathways; (B) disseminating demonstrated curricula developed by States; and (C) supporting the efforts of State partnerships and regional partnerships to offer career pathways of proven effectiveness; (3) designs and conducts performance evaluations of career pathways activities, to determine whether the short- and long-term goals of the activities are being met; and (4) administers, oversees, and evaluates all career pathways grants. (b) Establishment (1) In general There is established the National Academic and Career Innovation Center, which shall be administered under the terms of an interagency agreement entered into by the Secretary of Education, the Secretary of Labor, and the Secretary of Commerce (in this section referred to as the Interagency Group ). (2) Offices The Center shall have offices separate from the offices of the Department of Education, the Department of Labor, and the Department of Commerce. (3) Recommendations The Interagency Group shall consider the recommendations of the Board, established under subsection (d), in planning the goals of the Center and in implementing any programs to achieve such goals. (c) Duties (1) In general In order to serve as a national resource for States and regions creating and implementing career pathways in the United States, the Center is authorized— (A) to administer and oversee grants and contracts under this Act; (B) to conduct evaluations and research in accordance with section 303 to determine the effectiveness of the career pathways initiative under this Act; (C) to make findings as to whether the goals of the career pathways initiatives under this Act have been met by the grant programs created under this Act; (D) to work with State partnerships and regional partnerships to develop performance measures, in accordance with section 302, to determine whether the short- and long-term goals of the activities being funded by the career pathways grants described in this Act are being met; (E) to advise Congress and the Departments of Labor, Education, and Commerce on the development and continuous improvement of career pathways; (F) to communicate and coordinate with the Departments of Labor, Education, and Commerce on related activities administered by one or more of the Departments; and (G) to disseminate information, through online and other resources that are easily accessible, that shall— (i) consist of— (I) model career pathways curricula developed under section 202(a); and (II) proven best practices and career resources, including multi-media information and products identified by the Center, other entities, and repositories of information; and (ii) facilitate the ability of secondary schools serving high school students or other educational entities to access and implement model career pathways curricula if the schools or entities so choose. (2) Grants and contracts The Center may award grants to, or enter into contracts or cooperative agreements with, individuals, public or private institutions, agencies, or organizations, to carry out the activities of the Center. (3) Disclosures The Center shall publicly disclose, through an easily accessible website, the Center’s justification for the Center's decision to approve or reject each application for a grant under this Act and, in the case of an application that is approved, the amount of the grant awarded. (4) Prohibition on required use of a curriculum The Director shall not— (A) use online resources supported under this section to develop a national curriculum; or (B) require States to use any model career pathways curriculum included in the online resources. (d) National Academic and Career Innovation Center Board (1) Establishment (A) In general There shall be a National Academic and Career Innovation Center Board, which shall consist of 15 individuals appointed by the President with the advice and consent of the Senate. (B) Composition The Board shall be comprised of individuals who are not otherwise officers or employees of the Federal Government and who are representative of— (i) public secondary education; (ii) public postsecondary education, including 2-year and 4-year institutions of higher education; (iii) businesses and trade organizations that demonstrate an interest in career pathways; (iv) high school students or postsecondary students, including at-risk youth; (v) workforce development; (vi) economic development; (vii) State and local governments; (viii) parents or legal guardians of students; and (ix) labor organizations. (2) Duties The Board shall— (A) make recommendations concerning the appointment of the Director and staff of the Center; (B) advise the Center and the Interagency Group on a vision of career pathways that— (i) create opportunities for high school students to make successful transitions to postsecondary education and employment and improve the long-term economic prosperity for themselves and their families; and (ii) play an integral part in the larger workforce and economic development systems; (C) provide independent advice on the operation of the Center; and (D) receive reports from the Interagency Group and the Director. (3) Appointments (A) In general Each member of the Board shall be appointed for a term of 5 years, except that the initial terms for members may be 1, 2, or 3 years in order to establish a rotation in which 1/3 of the members are selected in each of the first 3 years of a 5-year cycle. (B) Term limit Any such member may be appointed for not more than 1 full term. (C) Vacancies Any vacancy in the Board shall not affect the powers of the Board, but shall be filled in the same manner as the original appointment. (D) Election of officers The Board shall elect a Chairperson and Vice Chairperson of the Board from among the members of the Board. (E) Meetings The Board shall meet at the call of the Chairperson or a majority of the members of the Board. (e) Director The Board, after considering recommendations made by the Interagency Group, shall appoint and fix the pay of a Director. (f) Gifts, bequests, and devises (1) In general The Center may accept, administer, and use for the purposes of the Center gifts or donations of services, money, or property, whether real or personal, tangible or intangible. (2) Rules The Board shall establish written rules setting forth the criteria to be used by the Center in determining whether the acceptance of contributions of services, money, or property whether real or personal, tangible or intangible, would reflect unfavorably upon the ability of the Center or any employee to carry out the responsibilities of the Center or employee, or official duties, in a fair and objective manner, or would compromise the integrity or the appearance of the integrity of the Center’s programs or any official involved in those programs. (g) Funding Any amounts appropriated to the Secretary of Education, the Secretary of Labor, the Secretary of Commerce, or the head of any other department that participates in the Center, for the purposes that the Center is authorized to perform under this Act, may be provided to the Center for such purposes. 302. Accountability and performance measurement (a) Purpose The purpose of this section is to establish an accountability system, comprised of the activities described in this section, in order to— (1) assess the effectiveness of State and regional activities assisted under this Act to help high school students successfully transition from secondary school to postsecondary education and employment primarily in high skill, high demand industries by acquiring the skills and knowledge that lead to long-term career success; (2) improve the State and regional career pathways activities assisted under this Act; (3) assess the effectiveness of State and regional career pathways activities in creating a highly skilled and agile workforce that meets 21st century skill demands; (4) maximize the return on investment of Federal funds in State and regional career pathways activities assisted under this Act; and (5) assess the effectiveness of State and regional career pathways in connecting efforts in education, economic, and workforce development. (b) Performance measures (1) In general For each State partnership and regional partnership, performance measures shall consist of the indicators of performance described in paragraph (2) and the level of performance described in paragraph (3). (2) Indicators of performance The indicators of performance shall consist of the following: (A) Interim indicators (i) Student participation in a career pathway. (ii) Student attainment of a secondary school diploma, disaggregated by the subgroups described in section 1111(b)(2)(C)(v)(II) of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 6311(b)(2)(C)(v)(II) ). (iii) Student participation in a career pathway and attainment of a secondary school diploma, disaggregated by the subgroups described in such section 1111(b)(2)(C)(v)(II). (B) Transitional indicators (i) Student acquisition of a secondary school diploma and entrance into postsecondary education or employment. (ii) Student acquisition of a secondary school diploma and entrance into postsecondary education or employment related to a high skill, high demand industry. (iii) Attainment of 1 or more recognized credentials, which may include a certificate, license, journey-status card, or associate degree or baccalaureate degree. (iv) Attainment of 1 or more recognized credentials, which may include a certificate, license, journey-status card, or associate degree or baccalaureate degree related to a high skill, high demand industry. (C) Long-term indicators (i) Employment of individuals who participated in a career pathway and attained a secondary school diploma or a credential. (ii) Employment of individuals who participated in a career pathway and attained a secondary school diploma or a credential related to a high skill, high demand industry. (iii) The initial wage or salary level of individuals who participated in a career pathway and attained a secondary school diploma. (iv) The initial wage or salary level of individuals who participated in a career pathway and attained a secondary school diploma and a credential. (D) Additional indicators A State partnership may identify in the State implementation application additional indicators that regional partnerships receiving a subgrant from the State partnership shall use to evaluate career pathways activities supported by the subgrant. (3) Level of performance For each indicator of performance, there shall be a level of performance expressed in objective, quantifiable, and measurable form and in a way to show the progress of the State toward continuously improving performance. (4) State performance measures (A) In general Each State partnership that receives an implementation grant under section 102 or a transition grant under section 104 shall reach agreement with the Director on the performance measures for the years covered by the implementation grant or the transition grant as a condition of receiving the grant. The performance measures shall take into account the State’s economic conditions, student characteristics, graduation rates, and the activities or services provided supported by the grants. (B) Adjustments If unanticipated circumstances arise in a State resulting in a significant change in the State’s economic conditions, student characteristics, secondary school graduation rates, or activities or services provided, the State partnership Governor may request that the Director adjust the level of performance for the State. (5) Regional performance measures (A) In general Each regional partnership that receives a career pathways subgrant under section 103 shall reach agreement with the State partnership on the regional levels of performance for each core indicator and any additional indicators that the State partnership may establish in accordance with this subsection for the years covered by the grant as a condition of receiving the subgrant. The performance measures shall take into account the economic conditions, student characteristics, graduation rates, and activities or services provided within the region. (B) Adjustments If unanticipated circumstances arise in a region, resulting in a significant change in the economic conditions, student characteristics, graduation rates, or activities or services provided, the regional partnership may request that the State partnership adjust the level of performance. (6) Calculation rules (A) Wage records In measuring progress in labor market-related core indicators, a State partnership or regional partnership shall use wage records, consistent with State law and by making arrangements through the Secretary of Labor, to ensure that the wage records of any State or region are available to any other State or region to the extent required by the other State or region to complete the annual report required under this section. (B) Reentering students If a student exits the education system at any point during secondary school or postsecondary education, a State partnership or regional partnership shall include the student in the required performance data if the student reenrolls in public education before the student attains the age of 24. (c) Reports (1) In general Each State partnership that receives a grant under this Act shall annually, for each year of the grant, provide a report to the Center that includes the progress of the State in accomplishing the performance measures or benchmarks for the State, which annual report shall include— (A) information on the progress each region receiving a career pathways subgrant made in accomplishing its performance measures; (B) the costs of the career pathways activities supported under the implementation grant under section 102 and any supplemental grants received by the State under title II, including— (i) the type of cost, such as cash, personnel, equipment, supplies, or materials, or other cost; and (ii) the sources used to pay such costs, such as funding from other Federal, State, or local public programs or private sector or philanthropic contributions, and the dollar value of the resources leveraged to cover such costs and support the activities; and (C) any fiscal and management accountability information required by the Center, using sound financial and management practices. (2) Valid and reliable information In preparing the State reports under this subsection, each State partnership shall establish procedures, consistent with guidelines issued by the Center, to ensure that the information contained in the reports is valid and reliable. (d) FERPA In carrying out the requirements of this section, each State, State partnership, and regional partnership shall comply with section 444 of the General Education Provisions Act (the Family Educational Rights and Privacy Act of 1974) (20 U.S.C. 1232g). (e) Availability of information The Director shall make the information in the State partnership reports required under this section available, through publication and other appropriate methods, to— (1) the Secretary of Commerce, the Secretary of Education, and the Secretary of Labor; (2) the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Education and Labor of the House of Representatives; and (3) the public. 303. Evaluation and research (a) In general The Director is authorized to conduct evaluation and research, either directly or through grants or contracts, to determine the effectiveness of the career pathway initiatives under this Act in meeting the purposes of this Act. Research topics may include— (1) effective activities and interventions to engage high school students and help the students transition to postsecondary education and careers, including improving outcomes for at-risk youth; (2) effective improvements to data systems to better enable States and regions to measure student academic and career longitudinal outcomes; and (3) the taxpayer return on investment in the career pathways initiative under this Act and the participant return on investment in the career pathways initiatives under this Act. (b) Award basis Each grant or contract awarded under subsection (a) that is in an amount that exceeds $200,000 shall be awarded only on a competitive basis, except that a noncompetitive award of more than $200,000 may be made in the case of a project that is funded jointly with other public or private entities that provide a substantial portion of assistance under the grant or contract for the project. (c) Peer review The Center shall utilize a peer review process— (1) to review all applications for research and evaluation grants and contracts in excess of $500,000; and (2) to review and designate the exemplary and promising career pathways curricula, practices, and model approaches. (d) Methodology Evaluations conducted under this section shall utilize appropriate methodology and research designs. (e) Distribution Not later than 60 days after the completion of a final research or evaluation report under this subsection, the Director shall— (1) make the final report available to the public and to the States; and (2) submit the final report, accompanied by the recommendations of the Center, as appropriate to the Secretary of Commerce, the Secretary of Education, and the Secretary of Labor, and the appropriate committees of Congress. (f) Affect on other programs The Secretary of Commerce, the Secretary of Education, and the Secretary of Labor shall take the findings of the evaluation and research described in this section and the reports under section 302(f) into account. 304. Benefits and labor standards (a) In general The provisions of subsection (a)(1), paragraphs (2), (3), and (4) of subsection (b), and subsection (c), of section 181 of the Workforce Investment Act of 1988 ( 29 U.S.C. 2931 ) that apply to individuals participating in activities under title I of that Act ( 29 U.S.C. 2801 et seq. ), shall apply in the same manner to individuals participating in programs under this Act. (b) References For purposes of the application described in subsection (a), a reference to— (1) funds or a recipient of funds under that title shall be considered to be a reference to funds or a recipient of funds under this Act; (2) a requirement or violation of that title shall be considered to be a reference to a requirement or violation of this Act; and (3) the Secretary of Labor shall be considered to be a reference to the Center. 305. Sunshine provision Each State partnership and regional partnership receiving a grant or subgrant under this Act shall make available to the public— (1) on a regular basis through open meetings— (A) information about the activities of the State partnership or regional partnership, respectively, including information on the State plan under section 101 and how to provide comments prior to the State partnership's submission of the plan; and (B) information about the membership of the State partnership or regional partnership, respectively; and (2) upon request, the minutes of the formal meetings of the State partnership or regional partnership, respectively. 306. Authorization of appropriations and distribution (a) Authorization of appropriations There is authorized to be appropriated to the Center to carry out the activities described in this Act, such sums as may be necessary for each of the fiscal years 2014 through 2022. (b) Distribution (1) In general Of the amount appropriated under subsection (a) for fiscal year 2014, the Center shall use— (A) $12,000,000 to carry out section 101; (B) a total of $600,000,000 to carry out sections 102, 103, and 104; (C) $300,000,000 to carry out section 201; and (D) $18,000,000 to carry out title III. (2) Ratable reduction In the event that the amounts appropriated under this section for fiscal year 2014 is less than the amounts required to carry out paragraph (1), the Center shall ratably reduce each such amount for such fiscal year.