Text: H.R.803 — 113th Congress (2013-2014)All Bill Information (Except Text)

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Public Law No: 113-128 (07/22/2014)




[113th Congress Public Law 128]
[From the U.S. Government Printing Office]



[[Page 128 STAT. 1425]]

Public Law 113-128
113th Congress

                                 An Act


 
 To amend the Workforce Investment Act of 1998 to strengthen the United 
States workforce development system through innovation in, and alignment 
and improvement of, employment, training, and education programs in the 
 United States, and to promote individual and national economic growth, 
     and for other purposes. <<NOTE: July 22, 2014 -  [H.R. 803]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Workforce 
Innovation and Opportunity Act.>> 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) <<NOTE: 29 USC 3101 note.>>  Short Title.--This Act may be cited 
as the ``Workforce Innovation and Opportunity Act''.

    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
Sec. 3. Definitions.

                TITLE I--WORKFORCE DEVELOPMENT ACTIVITIES

                      Subtitle A--System Alignment

                       Chapter 1--State Provisions

Sec. 101. State workforce development boards.
Sec. 102. Unified State plan.
Sec. 103. Combined State plan.

                       Chapter 2--Local Provisions

Sec. 106. Workforce development areas.
Sec. 107. Local workforce development boards.
Sec. 108. Local plan.

                       Chapter 3--Board Provisions

Sec. 111. Funding of State and local boards.

                  Chapter 4--Performance Accountability

Sec. 116. Performance accountability system.

        Subtitle B--Workforce Investment Activities and Providers

        Chapter 1--Workforce Investment Activities and Providers

Sec. 121. Establishment of one-stop delivery systems.
Sec. 122. Identification of eligible providers of training services.
Sec. 123. Eligible providers of youth workforce investment activities.

            Chapter 2--Youth Workforce Investment Activities

Sec. 126. General authorization.
Sec. 127. State allotments.
Sec. 128. Within State allocations.
Sec. 129. Use of funds for youth workforce investment activities.

     Chapter 3--Adult and Dislocated Worker Employment and Training 
                               Activities

Sec. 131. General authorization.

[[Page 128 STAT. 1426]]

Sec. 132. State allotments.
Sec. 133. Within State allocations.
Sec. 134. Use of funds for employment and training activities.

           Chapter 4--General Workforce Investment Provisions

Sec. 136. Authorization of appropriations.

                          Subtitle C--Job Corps

Sec. 141. Purposes.
Sec. 142. Definitions.
Sec. 143. Establishment.
Sec. 144. Individuals eligible for the Job Corps.
Sec. 145. Recruitment, screening, selection, and assignment of 
           enrollees.
Sec. 146. Enrollment.
Sec. 147. Job Corps centers.
Sec. 148. Program activities.
Sec. 149. Counseling and job placement.
Sec. 150. Support.
Sec. 151. Operations.
Sec. 152. Standards of conduct.
Sec. 153. Community participation.
Sec. 154. Workforce councils.
Sec. 155. Advisory committees.
Sec. 156. Experimental projects and technical assistance.
Sec. 157. Application of provisions of Federal law.
Sec. 158. Special provisions.
Sec. 159. Management information.
Sec. 160. General provisions.
Sec. 161. Job Corps oversight and reporting.
Sec. 162. Authorization of appropriations.

                      Subtitle D--National Programs

Sec. 166. Native American programs.
Sec. 167. Migrant and seasonal farmworker programs.
Sec. 168. Technical assistance.
Sec. 169. Evaluations and research.
Sec. 170. National dislocated worker grants.
Sec. 171. YouthBuild program.
Sec. 172. Authorization of appropriations.

                       Subtitle E--Administration

Sec. 181. Requirements and restrictions.
Sec. 182. Prompt allocation of funds.
Sec. 183. Monitoring.
Sec. 184. Fiscal controls; sanctions.
Sec. 185. Reports; recordkeeping; investigations.
Sec. 186. Administrative adjudication.
Sec. 187. Judicial review.
Sec. 188. Nondiscrimination.
Sec. 189. Secretarial administrative authorities and responsibilities.
Sec. 190. Workforce flexibility plans.
Sec. 191. State legislative authority.
Sec. 192. Transfer of Federal equity in State employment security agency 
           real property to the States.
Sec. 193. Continuation of State activities and policies.
Sec. 194. General program requirements.
Sec. 195. Restrictions on lobbying activities.

                 TITLE II--ADULT EDUCATION AND LITERACY

Sec. 201. Short title.
Sec. 202. Purpose.
Sec. 203. Definitions.
Sec. 204. Home schools.
Sec. 205. Rule of construction regarding postsecondary transition and 
           concurrent enrollment activities.
Sec. 206. Authorization of appropriations.

                     Subtitle A--Federal Provisions

Sec. 211. Reservation of funds; grants to eligible agencies; allotments.
Sec. 212. Performance accountability system.

[[Page 128 STAT. 1427]]

                      Subtitle B--State Provisions

Sec. 221. State administration.
Sec. 222. State distribution of funds; matching requirement.
Sec. 223. State leadership activities.
Sec. 224. State plan.
Sec. 225. Programs for corrections education and other institutionalized 
           individuals.

                      Subtitle C--Local Provisions

Sec. 231. Grants and contracts for eligible providers.
Sec. 232. Local application.
Sec. 233. Local administrative cost limits.

                     Subtitle D--General Provisions

Sec. 241. Administrative provisions.
Sec. 242. National leadership activities.
Sec. 243. Integrated English literacy and civics education.

             TITLE III--AMENDMENTS TO THE WAGNER-PEYSER ACT

Sec. 301. Employment service offices.
Sec. 302. Definitions.
Sec. 303. Federal and State employment service offices.
Sec. 304. Allotment of sums.
Sec. 305. Use of sums.
Sec. 306. State plan.
Sec. 307. Performance measures.
Sec. 308. Workforce and labor market information system.

         TITLE IV--AMENDMENTS TO THE REHABILITATION ACT OF 1973

                   Subtitle A--Introductory Provisions

Sec. 401. References.
Sec. 402. Findings, purpose, policy.
Sec. 403. Rehabilitation Services Administration.
Sec. 404. Definitions.
Sec. 405. Administration of the Act.
Sec. 406. Reports.
Sec. 407. Evaluation and information.
Sec. 408. Carryover.
Sec. 409. Traditionally underserved populations.

             Subtitle B--Vocational Rehabilitation Services

Sec. 411. Declaration of policy; authorization of appropriations.
Sec. 412. State plans.
Sec. 413. Eligibility and individualized plan for employment.
Sec. 414. Vocational rehabilitation services.
Sec. 415. State Rehabilitation Council.
Sec. 416. Evaluation standards and performance indicators.
Sec. 417. Monitoring and review.
Sec. 418. Training and services for employers.
Sec. 419. State allotments.
Sec. 420. Payments to States.
Sec. 421. Client assistance program.
Sec. 422. Pre-employment transition services.
Sec. 423. American Indian vocational rehabilitation services.
Sec. 424. Vocational rehabilitation services client information.

                    Subtitle C--Research and Training

Sec. 431. Purpose.
Sec. 432. Authorization of appropriations.
Sec. 433. National Institute on Disability, Independent Living, and 
           Rehabilitation Research.
Sec. 434. Interagency committee.
Sec. 435. Research and other covered activities.
Sec. 436. Disability, Independent Living, and Rehabilitation Research 
           Advisory Council.
Sec. 437. Definition of covered school.

     Subtitle D--Professional Development and Special Projects and 
                              Demonstration

Sec. 441. Purpose; training.

[[Page 128 STAT. 1428]]

Sec. 442. Demonstration, training, and technical assistance programs.
Sec. 443. Migrant and seasonal farmworkers; recreational programs.

               Subtitle E--National Council on Disability

Sec. 451. Establishment.
Sec. 452. Report.
Sec. 453. Authorization of appropriations.

                     Subtitle F--Rights and Advocacy

Sec. 456. Interagency Committee, Board, and Council.
Sec. 457. Protection and advocacy of individual rights.
Sec. 458. Limitations on use of subminimum wage.

 Subtitle G--Employment Opportunities for Individuals With Disabilities

Sec. 461. Employment opportunities for individuals with disabilities.

  Subtitle H--Independent Living Services and Centers for Independent 
                                 Living

          Chapter 1--Individuals With Significant Disabilities

                    subchapter a--general provisions

Sec. 471. Purpose.
Sec. 472. Administration of the independent living program.
Sec. 473. Definitions.
Sec. 474. State plan.
Sec. 475. Statewide Independent Living Council.
Sec. 475A. Responsibilities of the Administrator.

                subchapter b--independent living services

Sec. 476. Administration.

              subchapter c--centers for independent living

Sec. 481. Program authorization.
Sec. 482. Centers.
Sec. 483. Standards and assurances.
Sec. 484. Authorization of appropriations.

  Chapter 2--Independent Living Services for Older Individuals Who Are 
                                  Blind

Sec. 486. Independent living services for older individuals who are 
           blind.
Sec. 487. Program of grants.
Sec. 488. Independent living services for older individuals who are 
           blind authorization of appropriations.

                     Subtitle I--General Provisions

Sec. 491. Transfer of functions regarding independent living to 
           Department of Health and Human Services, and savings 
           provisions.
Sec. 492. Table of contents.

                       TITLE V--GENERAL PROVISIONS

                    Subtitle A--Workforce Investment

Sec. 501. Privacy.
Sec. 502. Buy-American requirements.
Sec. 503. Transition provisions.
Sec. 504. Reduction of reporting burdens and requirements.
Sec. 505. Report on data capability of Federal and State databases and 
           data exchange agreements.
Sec. 506. Effective dates.

                  Subtitle B--Amendments to Other Laws

Sec. 511. Repeal of the Workforce Investment Act of 1998.
Sec. 512. Conforming amendments.
Sec. 513. References.

SEC. 2. <<NOTE: 29 USC 3101.>>  PURPOSES.

    The purposes of this Act are the following:
            (1) To increase, for individuals in the United States, 
        particularly those individuals with barriers to employment,

[[Page 128 STAT. 1429]]

        access to and opportunities for the employment, education, 
        training, and support services they need to succeed in the labor 
        market.
            (2) To support the alignment of workforce investment, 
        education, and economic development systems in support of a 
        comprehensive, accessible, and high-quality workforce 
        development system in the United States.
            (3) To improve the quality and labor market relevance of 
        workforce investment, education, and economic development 
        efforts to provide America's workers with the skills and 
        credentials necessary to secure and advance in employment with 
        family-sustaining wages and to provide America's employers with 
        the skilled workers the employers need to succeed in a global 
        economy.
            (4) To promote improvement in the structure of and delivery 
        of services through the United States workforce development 
        system to better address the employment and skill needs of 
        workers, jobseekers, and employers.
            (5) To increase the prosperity of workers and employers in 
        the United States, the economic growth of communities, regions, 
        and States, and the global competitiveness of the United States.
            (6) For purposes of subtitle A and B of title I, to provide 
        workforce investment activities, through statewide and local 
        workforce development systems, that increase the employment, 
        retention, and earnings of participants, and increase attainment 
        of recognized postsecondary credentials by participants, and as 
        a result, improve the quality of the workforce, reduce welfare 
        dependency, increase economic self-sufficiency, meet the skill 
        requirements of employers, and enhance the productivity and 
        competitiveness of the Nation.
SEC. 3. <<NOTE: 29 USC 3102.>>  DEFINITIONS.

    In this Act, and the core program provisions that are not in this 
Act, except as otherwise expressly provided:
            (1) Administrative costs.--The term ``administrative costs'' 
        means expenditures incurred by State boards and local boards, 
        direct recipients (including State grant recipients under 
        subtitle B of title I and recipients of awards under subtitles C 
        and D of title I), local grant recipients, local fiscal agents 
        or local grant subrecipients, and one-stop operators in the 
        performance of administrative functions and in carrying out 
        activities under title I that are not related to the direct 
        provision of workforce investment services (including services 
        to participants and employers). Such costs include both 
        personnel and nonpersonnel costs and both direct and indirect 
        costs.
            (2) Adult.--Except as otherwise specified in section 132, 
        the term ``adult'' means an individual who is age 18 or older.
            (3) Adult education; adult education and literacy 
        activities.--The terms ``adult education'' and ``adult education 
        and literacy activities'' have the meanings given the terms in 
        section 203.
            (4) Area career and technical education school.--The term 
        ``area career and technical education school'' has the meaning 
        given the term in section 3 of the Carl D. Perkins Career and 
        Technical Education Act of 2006 (20 U.S.C. 2302).

[[Page 128 STAT. 1430]]

            (5) Basic skills deficient.--The term ``basic skills 
        deficient'' means, with respect to an individual--
                    (A) who is a youth, that the individual has English 
                reading, writing, or computing skills at or below the 
                8th grade level on a generally accepted standardized 
                test; or
                    (B) who is a youth or adult, that the individual is 
                unable to compute or solve problems, or read, write, or 
                speak English, at a level necessary to function on the 
                job, in the individual's family, or in society.
            (6) Career and technical education.--The term ``career and 
        technical education'' has the meaning given the term in section 
        3 of the Carl D. Perkins Career and Technical Education Act of 
        2006 (20 U.S.C. 2302).
            (7) Career pathway.--The term ``career pathway'' means a 
        combination of rigorous and high-quality education, training, 
        and other services that--
                    (A) aligns with the skill needs of industries in the 
                economy of the State or regional economy involved;
                    (B) prepares an individual to be successful in any 
                of a full range of secondary or postsecondary education 
                options, including apprenticeships registered under the 
                Act of August 16, 1937 (commonly known as the ``National 
                Apprenticeship Act''; 50 Stat. 664, chapter 663; 29 
                U.S.C. 50 et seq.) (referred to individually in this Act 
                as an ``apprenticeship'', except in section 171);
                    (C) includes counseling to support an individual in 
                achieving the individual's education and career goals;
                    (D) includes, as appropriate, education offered 
                concurrently with and in the same context as workforce 
                preparation activities and training for a specific 
                occupation or occupational cluster;
                    (E) organizes education, training, and other 
                services to meet the particular needs of an individual 
                in a manner that accelerates the educational and career 
                advancement of the individual to the extent practicable;
                    (F) enables an individual to attain a secondary 
                school diploma or its recognized equivalent, and at 
                least 1 recognized postsecondary credential; and
                    (G) helps an individual enter or advance within a 
                specific occupation or occupational cluster.
            (8) Career planning.--The term ``career planning'' means the 
        provision of a client-centered approach in the delivery of 
        services, designed--
                    (A) to prepare and coordinate comprehensive 
                employment plans, such as service strategies, for 
                participants to ensure access to necessary workforce 
                investment activities and supportive services, using, 
                where feasible, computer-based technologies; and
                    (B) to provide job, education, and career 
                counseling, as appropriate during program participation 
                and after job placement.
            (9) Chief elected official.--The term ``chief elected 
        official'' means--
                    (A) the chief elected executive officer of a unit of 
                general local government in a local area; and
                    (B) in a case in which a local area includes more 
                than 1 unit of general local government, the individuals

[[Page 128 STAT. 1431]]

                designated under the agreement described in section 
                107(c)(1)(B).
            (10) Community-based organization.--The term ``community-
        based organization'' means a private nonprofit organization 
        (which may include a faith-based organization), that is 
        representative of a community or a significant segment of a 
        community and that has demonstrated expertise and effectiveness 
        in the field of workforce development.
            (11) Competitive integrated employment.--The term 
        ``competitive integrated employment'' has the meaning given the 
        term in section 7 of the Rehabilitation Act of 1973 (29 U.S.C. 
        705), for individuals with disabilities.
            (12) Core program.--The term ``core programs'' means a 
        program authorized under a core program provision.
            (13) Core program provision.--The term ``core program 
        provision'' means--
                    (A) chapters 2 and 3 of subtitle B of title I 
                (relating to youth workforce investment activities and 
                adult and dislocated worker employment and training 
                activities);
                    (B) title II (relating to adult education and 
                literacy activities);
                    (C) sections 1 through 13 of the Wagner-Peyser Act 
                (29 U.S.C. 49 et seq.) (relating to employment 
                services); and
                    (D) title I of the Rehabilitation Act of 1973 (29 
                U.S.C. 720 et seq.), other than section 112 or part C of 
                that title (29 U.S.C. 732, 741) (relating to vocational 
                rehabilitation services).
            (14) Customized training.--The term ``customized training'' 
        means training--
                    (A) that is designed to meet the specific 
                requirements of an employer (including a group of 
                employers);
                    (B) that is conducted with a commitment by the 
                employer to employ an individual upon successful 
                completion of the training; and
                    (C) for which the employer pays--
                          (i) a significant portion of the cost of 
                      training, as determined by the local board 
                      involved, taking into account the size of the 
                      employer and such other factors as the local board 
                      determines to be appropriate, which may include 
                      the number of employees participating in training, 
                      wage and benefit levels of those employees (at 
                      present and anticipated upon completion of the 
                      training), relation of the training to the 
                      competitiveness of a participant, and other 
                      employer-provided training and advancement 
                      opportunities; and
                          (ii) in the case of customized training (as 
                      defined in subparagraphs (A) and (B)) involving an 
                      employer located in multiple local areas in the 
                      State, a significant portion of the cost of the 
                      training, as determined by the Governor of the 
                      State, taking into account the size of the 
                      employer and such other factors as the Governor 
                      determines to be appropriate.
            (15) Dislocated worker.--The term ``dislocated worker'' 
        means an individual who--
                    (A)(i) has been terminated or laid off, or who has 
                received a notice of termination or layoff, from 
                employment;

[[Page 128 STAT. 1432]]

                    (ii)(I) is eligible for or has exhausted entitlement 
                to unemployment compensation; or
                    (II) has been employed for a duration sufficient to 
                demonstrate, to the appropriate entity at a one-stop 
                center referred to in section 121(e), attachment to the 
                workforce, but is not eligible for unemployment 
                compensation due to insufficient earnings or having 
                performed services for an employer that were not covered 
                under a State unemployment compensation law; and
                    (iii) is unlikely to return to a previous industry 
                or occupation;
                    (B)(i) has been terminated or laid off, or has 
                received a notice of termination or layoff, from 
                employment as a result of any permanent closure of, or 
                any substantial layoff at, a plant, facility, or 
                enterprise;
                    (ii) is employed at a facility at which the employer 
                has made a general announcement that such facility will 
                close within 180 days; or
                    (iii) for purposes of eligibility to receive 
                services other than training services described in 
                section 134(c)(3), career services described in section 
                134(c)(2)(A)(xii), or supportive services, is employed 
                at a facility at which the employer has made a general 
                announcement that such facility will close;
                    (C) was self-employed (including employment as a 
                farmer, a rancher, or a fisherman) but is unemployed as 
                a result of general economic conditions in the community 
                in which the individual resides or because of natural 
                disasters;
                    (D) is a displaced homemaker; or
                    (E)(i) is the spouse of a member of the Armed Forces 
                on active duty (as defined in section 101(d)(1) of title 
                10, United States Code), and who has experienced a loss 
                of employment as a direct result of relocation to 
                accommodate a permanent change in duty station of such 
                member; or
                    (ii) is the spouse of a member of the Armed Forces 
                on active duty and who meets the criteria described in 
                paragraph (16)(B).
            (16) Displaced homemaker.--The term ``displaced homemaker'' 
        means an individual who has been providing unpaid services to 
        family members in the home and who--
                    (A)(i) has been dependent on the income of another 
                family member but is no longer supported by that income; 
                or
                    (ii) is the dependent spouse of a member of the 
                Armed Forces on active duty (as defined in section 
                101(d)(1) of title 10, United States Code) and whose 
                family income is significantly reduced because of a 
                deployment (as defined in section 991(b) of title 10, 
                United States Code, or pursuant to paragraph (4) of such 
                section), a call or order to active duty pursuant to a 
                provision of law referred to in section 101(a)(13)(B) of 
                title 10, United States Code, a permanent change of 
                station, or the service-connected (as defined in section 
                101(16) of title 38, United States Code) death or 
                disability of the member; and
                    (B) is unemployed or underemployed and is 
                experiencing difficulty in obtaining or upgrading 
                employment.

[[Page 128 STAT. 1433]]

            (17) Economic development agency.--The term ``economic 
        development agency'' includes a local planning or zoning 
        commission or board, a community development agency, or another 
        local agency or institution responsible for regulating, 
        promoting, or assisting in local economic development.
            (18) Eligible youth.--Except as provided in subtitles C and 
        D of title I, the term ``eligible youth'' means an in-school 
        youth or out-of-school youth.
            (19) Employment and training activity.--The term 
        ``employment and training activity'' means an activity described 
        in section 134 that is carried out for an adult or dislocated 
        worker.
            (20) English language acquisition program.--The term 
        ``English language acquisition program'' has the meaning given 
        the term in section 203.
            (21) English language learner.--The term ``English language 
        learner'' has the meaning given the term in section 203.
            (22) Governor.--The term ``Governor'' means the chief 
        executive of a State or an outlying area.
            (23) In-demand industry sector or occupation.--
                    (A) In general.--The term ``in-demand industry 
                sector or occupation'' means--
                          (i) an industry sector that has a substantial 
                      current or potential impact (including through 
                      jobs that lead to economic self-sufficiency and 
                      opportunities for advancement) on the State, 
                      regional, or local economy, as appropriate, and 
                      that contributes to the growth or stability of 
                      other supporting businesses, or the growth of 
                      other industry sectors; or
                          (ii) an occupation that currently has or is 
                      projected to have a number of positions (including 
                      positions that lead to economic self-sufficiency 
                      and opportunities for advancement) in an industry 
                      sector so as to have a significant impact on the 
                      State, regional, or local economy, as appropriate.
                    (B) Determination.--The determination of whether an 
                industry sector or occupation is in-demand under this 
                paragraph shall be made by the State board or local 
                board, as appropriate, using State and regional business 
                and labor market projections, including the use of labor 
                market information.
            (24) Individual with a barrier to employment.--The term 
        ``individual with a barrier to employment'' means a member of 1 
        or more of the following populations:
                    (A) Displaced homemakers.
                    (B) Low-income individuals.
                    (C) Indians, Alaska Natives, and Native Hawaiians, 
                as such terms are defined in section 166.
                    (D) Individuals with disabilities, including youth 
                who are individuals with disabilities.
                    (E) Older individuals.
                    (F) Ex-offenders.
                    (G) Homeless individuals (as defined in section 
                41403(6) of the Violence Against Women Act of 1994 (42 
                U.S.C. 14043e-2(6))), or homeless children and youths 
                (as

[[Page 128 STAT. 1434]]

                defined in section 725(2) of the McKinney-Vento Homeless 
                Assistance Act (42 U.S.C. 11434a(2))).
                    (H) Youth who are in or have aged out of the foster 
                care system.
                    (I) Individuals who are English language learners, 
                individuals who have low levels of literacy, and 
                individuals facing substantial cultural barriers.
                    (J) Eligible migrant and seasonal farmworkers, as 
                defined in section 167(i).
                    (K) Individuals within 2 years of exhausting 
                lifetime eligibility under part A of title IV of the 
                Social Security Act (42 U.S.C. 601 et seq.).
                    (L) Single parents (including single pregnant 
                women).
                    (M) Long-term unemployed individuals.
                    (N) Such other groups as the Governor involved 
                determines to have barriers to employment.
            (25) Individual with a disability.--
                    (A) In general.--The term ``individual with a 
                disability'' means an individual with a disability as 
                defined in section 3 of the Americans with Disabilities 
                Act of 1990 (42 U.S.C. 12102).
                    (B) Individuals with disabilities.--The term 
                ``individuals with disabilities'' means more than 1 
                individual with a disability.
            (26) Industry or sector partnership.--The term ``industry or 
        sector partnership'' means a workforce collaborative, convened 
        by or acting in partnership with a State board or local board, 
        that--
                    (A) organizes key stakeholders in an industry 
                cluster into a working group that focuses on the shared 
                goals and human resources needs of the industry cluster 
                and that includes, at the appropriate stage of 
                development of the partnership--
                          (i) representatives of multiple businesses or 
                      other employers in the industry cluster, including 
                      small and medium-sized employers when practicable;
                          (ii) 1 or more representatives of a recognized 
                      State labor organization or central labor council, 
                      or another labor representative, as appropriate; 
                      and
                          (iii) 1 or more representatives of an 
                      institution of higher education with, or another 
                      provider of, education or training programs that 
                      support the industry cluster; and
                    (B) may include representatives of--
                          (i) State or local government;
                          (ii) State or local economic development 
                      agencies;
                          (iii) State boards or local boards, as 
                      appropriate;
                          (iv) a State workforce agency or other entity 
                      providing employment services;
                          (v) other State or local agencies;
                          (vi) business or trade associations;
                          (vii) economic development organizations;
                          (viii) nonprofit organizations, community-
                      based organizations, or intermediaries;
                          (ix) philanthropic organizations;
                          (x) industry associations; and

[[Page 128 STAT. 1435]]

                          (xi) other organizations, as determined to be 
                      necessary by the members comprising the industry 
                      or sector partnership.
            (27) In-school youth.--The term ``in-school youth'' means a 
        youth described in section 129(a)(1)(C).
            (28) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given the 
        term in section 101, and subparagraphs (A) and (B) of section 
        102(a)(1), of the Higher Education Act of 1965 (20 U.S.C. 1001, 
        1002(a)(1)).
            (29) Integrated education and training.--The term 
        ``integrated education and training'' has the meaning given the 
        term in section 203.
            (30) Labor market area.--The term ``labor market area'' 
        means an economically integrated geographic area within which 
        individuals can reside and find employment within a reasonable 
        distance or can readily change employment without changing their 
        place of residence. Such an area shall be identified in 
        accordance with criteria used by the Bureau of Labor Statistics 
        of the Department of Labor in defining such areas or similar 
        criteria established by a Governor.
            (31) Literacy.--The term ``literacy'' has the meaning given 
        the term in section 203.
            (32) Local area.--The term ``local area'' means a local 
        workforce investment area designated under section 106, subject 
        to sections 106(c)(3)(A), 107(c)(4)(B)(i), and 189(i).
            (33) Local board.--The term ``local board'' means a local 
        workforce development board established under section 107, 
        subject to section 107(c)(4)(B)(i).
            (34) 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).
            (35) Local plan.--The term ``local plan'' means a plan 
        submitted under section 108, subject to section 106(c)(3)(B).
            (36) Low-income individual.--
                    (A) In general.--The term ``low-income individual'' 
                means an individual who--
                          (i) receives, or in the past 6 months has 
                      received, or is a member of a family that is 
                      receiving or in the past 6 months has received, 
                      assistance through the supplemental nutrition 
                      assistance program established under the Food and 
                      Nutrition Act of 2008 (7 U.S.C. 2011 et seq.), the 
                      program of block grants to States for temporary 
                      assistance for needy families program under part A 
                      of title IV of the Social Security Act (42 U.S.C. 
                      601 et seq.), or the supplemental security income 
                      program established under title XVI of the Social 
                      Security Act (42 U.S.C. 1381 et seq.), or State or 
                      local income-based public assistance;
                          (ii) is in a family with total family income 
                      that does not exceed the higher of--
                                    (I) the poverty line; or
                                    (II) 70 percent of the lower living 
                                standard income level;
                          (iii) is a homeless individual (as defined in 
                      section 41403(6) of the Violence Against Women Act 
                      of 1994

[[Page 128 STAT. 1436]]

                      (42 U.S.C. 14043e-2(6))), or a homeless child or 
                      youth (as defined under section 725(2) of the 
                      McKinney-Vento Homeless Assistance Act (42 U.S.C. 
                      11434a(2)));
                          (iv) receives or is eligible to receive a free 
                      or reduced price lunch under the Richard B. 
                      Russell National School Lunch Act (42 U.S.C. 1751 
                      et seq.);
                          (v) is a foster child on behalf of whom State 
                      or local government payments are made; or
                          (vi) is an individual with a disability whose 
                      own income meets the income requirement of clause 
                      (ii), but who is a member of a family whose income 
                      does not meet this requirement.
                    (B) Lower living standard income level.--The term 
                ``lower living standard income level'' means that income 
                level (adjusted for regional, metropolitan, urban, and 
                rural differences and family size) determined annually 
                by the Secretary of Labor based on the most recent lower 
                living family budget issued by the Secretary.
            (37) Nontraditional employment.--The term ``nontraditional 
        employment'' refers to occupations or fields of work, for which 
        individuals from the gender involved comprise less than 25 
        percent of the individuals employed in each such occupation or 
        field of work.
            (38) Offender.--The term ``offender'' means an adult or 
        juvenile--
                    (A) who is or has been subject to any stage of the 
                criminal justice process, and for whom services under 
                this Act may be beneficial; or
                    (B) who requires assistance in overcoming artificial 
                barriers to employment resulting from a record of arrest 
                or conviction.
            (39) Older individual.--The term ``older individual'' means 
        an individual age 55 or older.
            (40) One-stop center.--The term ``one-stop center'' means a 
        site described in section 121(e)(2).
            (41) One-stop operator.--The term ``one-stop operator'' 
        means 1 or more entities designated or certified under section 
        121(d).
            (42) One-stop partner.--The term ``one-stop partner'' 
        means--
                    (A) an entity described in section 121(b)(1); and
                    (B) an entity described in section 121(b)(2) that is 
                participating, with the approval of the local board and 
                chief elected official, in the operation of a one-stop 
                delivery system.
            (43) One-stop partner program.--The term ``one-stop partner 
        program'' means a program or activities described in section 
        121(b) of a one-stop partner.
            (44) On-the-job training.--The term ``on-the-job training'' 
        means training by an employer that is provided to a paid 
        participant while engaged in productive work in a job that--
                    (A) provides knowledge or skills essential to the 
                full and adequate performance of the job;
                    (B) is made available through a program that 
                provides reimbursement to the employer of up to 50 
                percent of the wage rate of the participant, except as 
                provided in section 134(c)(3)(H), for the extraordinary 
                costs of providing

[[Page 128 STAT. 1437]]

                the training and additional supervision related to the 
                training; and
                    (C) is limited in duration as appropriate to the 
                occupation for which the participant is being trained, 
                taking into account the content of the training, the 
                prior work experience of the participant, and the 
                service strategy of the participant, as appropriate.
            (45) Outlying area.--The term ``outlying area'' means--
                    (A) American Samoa, Guam, the Commonwealth of the 
                Northern Mariana Islands, and the United States Virgin 
                Islands; and
                    (B) the Republic of Palau, except during any period 
                for which the Secretary of Labor and the Secretary of 
                Education determine that a Compact of Free Association 
                is in effect and contains provisions for training and 
                education assistance prohibiting the assistance provided 
                under this Act.
            (46) Out-of-school youth.--The term ``out-of-school youth'' 
        means a youth described in section 129(a)(1)(B).
            (47) Pay-for-performance contract strategy.--The term ``pay-
        for-performance contract strategy'' means a procurement strategy 
        that uses pay-for-performance contracts in the provision of 
        training services described in section 134(c)(3) or activities 
        described in section 129(c)(2), and includes--
                    (A) contracts, each of which shall specify a fixed 
                amount that will be paid to an eligible service provider 
                (which may include a local or national community-based 
                organization or intermediary, community college, or 
                other training provider, that is eligible under section 
                122 or 123, as appropriate) based on the achievement of 
                specified levels of performance on the primary 
                indicators of performance described in section 
                116(b)(2)(A) for target populations as identified by the 
                local board (including individuals with barriers to 
                employment), within a defined timetable, and which may 
                provide for bonus payments to such service provider to 
                expand capacity to provide effective training;
                    (B) a strategy for independently validating the 
                achievement of the performance described in subparagraph 
                (A); and
                    (C) a description of how the State or local area 
                will reallocate funds not paid to a provider because the 
                achievement of the performance described in subparagraph 
                (A) did not occur, for further activities related to 
                such a procurement strategy, subject to section 
                189(g)(4).
            (48) Planning region.--The term ``planning region'' means a 
        region described in subparagraph (B) or (C) of section 
        106(a)(2), subject to section 107(c)(4)(B)(i).
            (49) Poverty line.--The term ``poverty line'' means the 
        poverty line (as defined by the Office of Management and Budget, 
        and revised annually in accordance with section 673(2) of the 
        Community Services Block Grant Act (42 U.S.C. 9902(2))) 
        applicable to a family of the size involved.
            (50) Public assistance.--The term ``public assistance'' 
        means Federal, State, or local government cash payments for 
        which eligibility is determined by a needs or income test.
            (51) Rapid response activity.--The term ``rapid response 
        activity'' means an activity provided by a State, or by an 
        entity

[[Page 128 STAT. 1438]]

        designated by a State, with funds provided by the State under 
        section 134(a)(1)(A), in the case of a permanent closure or mass 
        layoff at a plant, facility, or enterprise, or a natural or 
        other disaster, that results in mass job dislocation, in order 
        to assist dislocated workers in obtaining reemployment as soon 
        as possible, with services including--
                    (A) the establishment of onsite contact with 
                employers and employee representatives--
                          (i) immediately after the State is notified of 
                      a current or projected permanent closure or mass 
                      layoff; or
                          (ii) in the case of a disaster, immediately 
                      after the State is made aware of mass job 
                      dislocation as a result of such disaster;
                    (B) the provision of information on and access to 
                available employment and training activities;
                    (C) assistance in establishing a labor-management 
                committee, voluntarily agreed to by labor and 
                management, with the ability to devise and implement a 
                strategy for assessing the employment and training needs 
                of dislocated workers and obtaining services to meet 
                such needs;
                    (D) the provision of emergency assistance adapted to 
                the particular closure, layoff, or disaster; and
                    (E) the provision of assistance to the local 
                community in developing a coordinated response and in 
                obtaining access to State economic development 
                assistance.
            (52) Recognized postsecondary credential.--The term 
        ``recognized postsecondary credential'' means a credential 
        consisting of an industry-recognized certificate or 
        certification, a certificate of completion of an apprenticeship, 
        a license recognized by the State involved or Federal 
        Government, or an associate or baccalaureate degree.
            (53) Region.--The term ``region'', used without further 
        description, means a region identified under section 106(a), 
        subject to section 107(c)(4)(B)(i) and except as provided in 
        section 106(b)(1)(B)(ii).
            (54) School dropout.--The term ``school dropout'' means an 
        individual who is no longer attending any school and who has not 
        received a secondary school diploma or its recognized 
        equivalent.
            (55) 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).
            (56) State.--The term ``State'' means each of the several 
        States of the United States, the District of Columbia, and the 
        Commonwealth of Puerto Rico.
            (57) State board.--The term ``State board'' means a State 
        workforce development board established under section 101.
            (58) State plan.--The term ``State plan'', used without 
        further description, means a unified State plan under section 
        102 or a combined State plan under section 103.
            (59) Supportive services.--The term ``supportive services'' 
        means services such as transportation, child care, dependent 
        care, housing, and needs-related payments, that are necessary to 
        enable an individual to participate in activities authorized 
        under this Act.

[[Page 128 STAT. 1439]]

            (60) Training services.--The term ``training services'' 
        means services described in section 134(c)(3).
            (61) Unemployed individual.--The term ``unemployed 
        individual'' means an individual who is without a job and who 
        wants and is available for work. The determination of whether an 
        individual is without a job, for purposes of this paragraph, 
        shall be made in accordance with the criteria used by the Bureau 
        of Labor Statistics of the Department of Labor in defining 
        individuals as unemployed.
            (62) Unit of general local government.--The term ``unit of 
        general local government'' means any general purpose political 
        subdivision of a State that has the power to levy taxes and 
        spend funds, as well as general corporate and police powers.
            (63) Veteran; related definition.--
                    (A) Veteran.--The term ``veteran'' has the meaning 
                given the term in section 101 of title 38, United States 
                Code.
                    (B) Recently separated veteran.--The term ``recently 
                separated veteran'' means any veteran who applies for 
                participation under this Act within 48 months after the 
                discharge or release from active military, naval, or air 
                service.
            (64) Vocational rehabilitation program.--The term 
        ``vocational rehabilitation program'' means a program authorized 
        under a provision covered under paragraph (13)(D).
            (65) Workforce development activity.--The term ``workforce 
        development activity'' means an activity carried out through a 
        workforce development program.
            (66) Workforce development program.--The term ``workforce 
        development program'' means a program made available through a 
        workforce development system.
            (67) Workforce development system.--The term ``workforce 
        development system'' means a system that makes available the 
        core programs, the other one-stop partner programs, and any 
        other programs providing employment and training services as 
        identified by a State board or local board.
            (68) Workforce investment activity.--The term ``workforce 
        investment activity'' means an employment and training activity, 
        and a youth workforce investment activity.
            (69) Workforce preparation activities.--The term ``workforce 
        preparation activities'' has the meaning given the term in 
        section 203.
            (70) Workplace learning advisor.--The term ``workplace 
        learning advisor'' means an individual employed by an 
        organization who has the knowledge and skills necessary to 
        advise other employees of that organization about the education, 
        skill development, job training, career counseling services, and 
        credentials, including services provided through the workforce 
        development system, required to progress toward career goals of 
        such employees in order to meet employer requirements related to 
        job openings and career advancements that support economic self-
        sufficiency.
            (71) Youth workforce investment activity.--The term ``youth 
        workforce investment activity'' means an activity described in 
        section 129 that is carried out for eligible youth (or as 
        described in section 129(a)(3)(A)).

[[Page 128 STAT. 1440]]

                TITLE I--WORKFORCE DEVELOPMENT ACTIVITIES

                      Subtitle A--System Alignment

                       CHAPTER 1--STATE PROVISIONS

SEC. 101. <<NOTE: 29 USC 3111.>>  STATE WORKFORCE DEVELOPMENT 
                        BOARDS.

    (a) In General.--The Governor of a State shall establish a State 
workforce development board to carry out the functions described in 
subsection (d).
    (b) Membership.--
            (1) In general.--The State board shall include--
                    (A) the Governor;
                    (B) a member of each chamber of the State 
                legislature (to the extent consistent with State law), 
                appointed by the appropriate presiding officers of such 
                chamber; and
                    (C) members appointed by the Governor, of which--
                          (i) a majority shall be representatives of 
                      businesses in the State, who--
                                    (I) are owners of businesses, chief 
                                executives or operating officers of 
                                businesses, or other business executives 
                                or employers with optimum policymaking 
                                or hiring authority, and who, in 
                                addition, may be members of a local 
                                board described in section 
                                107(b)(2)(A)(i);
                                    (II) represent businesses (including 
                                small businesses), or organizations 
                                representing businesses described in 
                                this subclause, that provide employment 
                                opportunities that, at a minimum, 
                                include high-quality, work-relevant 
                                training and development in in-demand 
                                industry sectors or occupations in the 
                                State; and
                                    (III) are appointed from among 
                                individuals nominated by State business 
                                organizations and business trade 
                                associations;
                          (ii) not less than 20 percent shall be 
                      representatives of the workforce within the State, 
                      who--
                                    (I) shall include representatives of 
                                labor organizations, who have been 
                                nominated by State labor federations;
                                    (II) shall include a representative, 
                                who shall be a member of a labor 
                                organization or a training director, 
                                from a joint labor-management 
                                apprenticeship program, or if no such 
                                joint program exists in the State, such 
                                a representative of an apprenticeship 
                                program in the State;
                                    (III) may include representatives of 
                                community-based organizations that have 
                                demonstrated experience and expertise in 
                                addressing the employment, training, or 
                                education needs of individuals with 
                                barriers to employment, including 
                                organizations that serve veterans or 
                                that provide or support competitive, 
                                integrated employment for individuals 
                                with disabilities; and

[[Page 128 STAT. 1441]]

                                    (IV) may include representatives of 
                                organizations that have demonstrated 
                                experience and expertise in addressing 
                                the employment, training, or education 
                                needs of eligible youth, including 
                                representatives of organizations that 
                                serve out-of-school youth; and
                          (iii) the balance--
                                    (I) shall include representatives of 
                                government, who--
                                            (aa) shall include the lead 
                                        State officials with primary 
                                        responsibility for the core 
                                        programs; and
                                            (bb) shall include chief 
                                        elected officials (collectively 
                                        representing both cities and 
                                        counties, where appropriate); 
                                        and
                                    (II) may include such other 
                                representatives and officials as the 
                                Governor may designate, such as--
                                            (aa) the State agency 
                                        officials from agencies that are 
                                        one-stop partners not specified 
                                        in subclause (I) (including 
                                        additional one-stop partners 
                                        whose programs are covered by 
                                        the State plan, if any);
                                            (bb) State agency officials 
                                        responsible for economic 
                                        development or juvenile justice 
                                        programs in the State;
                                            (cc) individuals who 
                                        represent an Indian tribe or 
                                        tribal organization, as such 
                                        terms are defined in section 
                                        166(b); and
                                            (dd) State agency officials 
                                        responsible for education 
                                        programs in the State, including 
                                        chief executive officers of 
                                        community colleges and other 
                                        institutions of higher 
                                        education.
            (2) Diverse and distinct representation.--The members of the 
        State board shall represent diverse geographic areas of the 
        State, including urban, rural, and suburban areas.
            (3) No representation of multiple categories.--No person 
        shall serve as a member for more than 1 of--
                    (A) the category described in paragraph (1)(C)(i); 
                or
                    (B) 1 category described in a subclause of clause 
                (ii) or (iii) of paragraph (1)(C).

    (c) Chairperson.--The Governor shall select a chairperson for the 
State board from among the representatives described in subsection 
(b)(1)(C)(i).
    (d) Functions.--The State board shall assist the Governor in--
            (1) the development, implementation, and modification of the 
        State plan;
            (2) consistent with paragraph (1), the review of statewide 
        policies, of statewide programs, and of recommendations on 
        actions that should be taken by the State to align workforce 
        development programs in the State in a manner that supports a 
        comprehensive and streamlined workforce development system in 
        the State, including the review and provision of comments on the 
        State plans, if any, for programs and activities of one-stop 
        partners that are not core programs;

[[Page 128 STAT. 1442]]

            (3) the development and continuous improvement of the 
        workforce development system in the State, including--
                    (A) the identification of barriers and means for 
                removing barriers to better coordinate, align, and avoid 
                duplication among the programs and activities carried 
                out through the system;
                    (B) the development of strategies to support the use 
                of career pathways for the purpose of providing 
                individuals, including low-skilled adults, youth, and 
                individuals with barriers to employment (including 
                individuals with disabilities), with workforce 
                investment activities, education, and supportive 
                services to enter or retain employment;
                    (C) the development of strategies for providing 
                effective outreach to and improved access for 
                individuals and employers who could benefit from 
                services provided through the workforce development 
                system;
                    (D) the development and expansion of strategies for 
                meeting the needs of employers, workers, and jobseekers, 
                particularly through industry or sector partnerships 
                related to in-demand industry sectors and occupations;
                    (E) the identification of regions, including 
                planning regions, for the purposes of section 106(a), 
                and the designation of local areas under section 106, 
                after consultation with local boards and chief elected 
                officials;
                    (F) the development and continuous improvement of 
                the one-stop delivery system in local areas, including 
                providing assistance to local boards, one-stop 
                operators, one-stop partners, and providers with 
                planning and delivering services, including training 
                services and supportive services, to support effective 
                delivery of services to workers, jobseekers, and 
                employers; and
                    (G) the development of strategies to support staff 
                training and awareness across programs supported under 
                the workforce development system;
            (4) the development and updating of comprehensive State 
        performance accountability measures, including State adjusted 
        levels of performance, to assess the effectiveness of the core 
        programs in the State as required under section 116(b);
            (5) the identification and dissemination of information on 
        best practices, including best practices for--
                    (A) the effective operation of one-stop centers, 
                relating to the use of business outreach, partnerships, 
                and service delivery strategies, including strategies 
                for serving individuals with barriers to employment;
                    (B) the development of effective local boards, which 
                may include information on factors that contribute to 
                enabling local boards to exceed negotiated local levels 
                of performance, sustain fiscal integrity, and achieve 
                other measures of effectiveness; and
                    (C) effective training programs that respond to 
                real-time labor market analysis, that effectively use 
                direct assessment and prior learning assessment to 
                measure an individual's prior knowledge, skills, 
                competencies, and experiences, and that evaluate such 
                skills, and competencies for adaptability, to support 
                efficient placement into employment or career pathways;

[[Page 128 STAT. 1443]]

            (6) the development and review of statewide policies 
        affecting the coordinated provision of services through the 
        State's one-stop delivery system described in section 121(e), 
        including the development of--
                    (A) objective criteria and procedures for use by 
                local boards in assessing the effectiveness and 
                continuous improvement of one-stop centers described in 
                such section;
                    (B) guidance for the allocation of one-stop center 
                infrastructure funds under section 121(h); and
                    (C) policies relating to the appropriate roles and 
                contributions of entities carrying out one-stop partner 
                programs within the one-stop delivery system, including 
                approaches to facilitating equitable and efficient cost 
                allocation in such system;
            (7) the development of strategies for technological 
        improvements to facilitate access to, and improve the quality 
        of, services and activities provided through the one-stop 
        delivery system, including such improvements to--
                    (A) enhance digital literacy skills (as defined in 
                section 202 of the Museum and Library Services Act (20 
                U.S.C. 9101); referred to in this Act as ``digital 
                literacy skills'');
                    (B) accelerate the acquisition of skills and 
                recognized postsecondary credentials by participants;
                    (C) strengthen the professional development of 
                providers and workforce professionals; and
                    (D) ensure such technology is accessible to 
                individuals with disabilities and individuals residing 
                in remote areas;
            (8) the development of strategies for aligning technology 
        and data systems across one-stop partner programs to enhance 
        service delivery and improve efficiencies in reporting on 
        performance accountability measures (including the design and 
        implementation of common intake, data collection, case 
        management information, and performance accountability 
        measurement and reporting processes and the incorporation of 
        local input into such design and implementation, to improve 
        coordination of services across one-stop partner programs);
            (9) the development of allocation formulas for the 
        distribution of funds for employment and training activities for 
        adults, and youth workforce investment activities, to local 
        areas as permitted under sections 128(b)(3) and 133(b)(3);
            (10) the preparation of the annual reports described in 
        paragraphs (1) and (2) of section 116(d);
            (11) the development of the statewide workforce and labor 
        market information system described in section 15(e) of the 
        Wagner-Peyser Act (29 U.S.C. 49l-2(e)); and
            (12) the development of such other policies as may promote 
        statewide objectives for, and enhance the performance of, the 
        workforce development system in the State.

    (e) Alternative Entity.--
            (1) In general.--For the purposes of complying with 
        subsections (a), (b), and (c), a State may use any State entity 
        (including a State council, State workforce development board 
        (within the meaning of the Workforce Investment Act of 1998, as 
        in effect on the day before the date of enactment of this Act), 
        combination of regional workforce development boards, or similar 
        entity) that--

[[Page 128 STAT. 1444]]

                    (A) was in existence on the day before the date of 
                enactment of the Workforce Investment Act of 1998;
                    (B) is substantially similar to the State board 
                described in subsections (a) through (c); and
                    (C) includes representatives of business in the 
                State and representatives of labor organizations in the 
                State.
            (2) References.--A reference in this Act, or a core program 
        provision that is not in this Act, to a State board shall be 
        considered to include such an entity.

    (f) Conflict of Interest.--A member of a State board may not--
            (1) vote on a matter under consideration by the State 
        board--
                    (A) regarding the provision of services by such 
                member (or by an entity that such member represents); or
                    (B) that would provide direct financial benefit to 
                such member or the immediate family of such member; or
            (2) engage in any other activity determined by the Governor 
        to constitute a conflict of interest as specified in the State 
        plan.

    (g) <<NOTE: Public information. Plan.>>  Sunshine Provision.--The 
State board shall make available to the public, on a regular basis 
through electronic means and open meetings, information regarding the 
activities of the State board, including information regarding the State 
plan, or a modification to the State plan, prior to submission of the 
plan or modification of the plan, respectively, information regarding 
membership, and, on request, minutes of formal meetings of the State 
board.

    (h) Authority To Hire Staff.--
            (1) In general.--The State board may hire a director and 
        other staff to assist in carrying out the functions described in 
        subsection (d) using funds available as described in section 
        129(b)(3) or 134(a)(3)(B)(i).
            (2) <<NOTE: Applicability.>>  Qualifications.--The State 
        board shall establish and apply a set of objective 
        qualifications for the position of director, that ensures that 
        the individual selected has the requisite knowledge, skills, and 
        abilities, to meet identified benchmarks and to assist in 
        effectively carrying out the functions of the State board.
            (3) Limitation on rate.--The director and staff described in 
        paragraph (1) shall be subject to the limitations on the payment 
        of salary and bonuses described in section 194(15).
SEC. 102. <<NOTE: 29 USC 3112.>>  UNIFIED STATE PLAN.

    (a) Plan.--For a State to be eligible to receive allotments for the 
core programs, the Governor shall submit to the Secretary of Labor for 
the approval process described under subsection (c)(2), a unified State 
plan. The unified State plan shall outline a 4-year strategy for the 
core programs of the State and meet the requirements of this section.
    (b) Contents.--
            (1) Strategic planning elements.--The unified State plan 
        shall include strategic planning elements consisting of a 
        strategic vision and goals for preparing an educated and skilled 
        workforce, that include--
                    (A) an analysis of the economic conditions in the 
                State, including--

[[Page 128 STAT. 1445]]

                          (i) existing and emerging in-demand industry 
                      sectors and occupations; and
                          (ii) the employment needs of employers, 
                      including a description of the knowledge, skills, 
                      and abilities, needed in those industries and 
                      occupations;
                    (B) an analysis of the current workforce, employment 
                and unemployment data, labor market trends, and the 
                educational and skill levels of the workforce, including 
                individuals with barriers to employment (including 
                individuals with disabilities), in the State;
                    (C) an analysis of the workforce development 
                activities (including education and training) in the 
                State, including an analysis of the strengths and 
                weaknesses of such activities, and the capacity of State 
                entities to provide such activities, in order to address 
                the identified education and skill needs of the 
                workforce and the employment needs of employers in the 
                State;
                    (D) a description of the State's strategic vision 
                and goals for preparing an educated and skilled 
                workforce (including preparing youth and individuals 
                with barriers to employment) and for meeting the skilled 
                workforce needs of employers, including goals relating 
                to performance accountability measures based on primary 
                indicators of performance described in section 
                116(b)(2)(A), in order to support economic growth and 
                economic self-sufficiency, and of how the State will 
                assess the overall effectiveness of the workforce 
                investment system in the State; and
                    (E) taking into account analyses described in 
                subparagraphs (A) through (C), a strategy for aligning 
                the core programs, as well as other resources available 
                to the State, to achieve the strategic vision and goals 
                described in subparagraph (D).
            (2) Operational planning elements.--
                    (A) In general.--The unified State plan shall 
                include the operational planning elements contained in 
                this paragraph, which shall support the strategy 
                described in paragraph (1)(E), including a description 
                of how the State board will implement the functions 
                under section 101(d).
                    (B) Implementation of state strategy.--The unified 
                State plan shall describe how the lead State agency with 
                responsibility for the administration of a core program 
                will implement the strategy described in paragraph 
                (1)(E), including a description of--
                          (i) the activities that will be funded by the 
                      entities carrying out the respective core programs 
                      to implement the strategy and how such activities 
                      will be aligned across the programs and among the 
                      entities administering the programs, including 
                      using co-enrollment and other strategies;
                          (ii) how the activities described in clause 
                      (i) will be aligned with activities provided under 
                      employment, training, education, including career 
                      and technical education, and human services 
                      programs not covered by the plan, as appropriate, 
                      assuring coordination of, and avoiding duplication 
                      among, the activities referred to in this clause;

[[Page 128 STAT. 1446]]

                          (iii) how the entities carrying out the 
                      respective core programs will coordinate 
                      activities and provide comprehensive, high-quality 
                      services including supportive services, to 
                      individuals;
                          (iv) how the State's strategy will engage the 
                      State's community colleges and area career and 
                      technical education schools as partners in the 
                      workforce development system and enable the State 
                      to leverage other Federal, State, and local 
                      investments that have enhanced access to workforce 
                      development programs at those institutions;
                          (v) how the activities described in clause (i) 
                      will be coordinated with economic development 
                      strategies and activities in the State; and
                          (vi) how the State's strategy will improve 
                      access to activities leading to a recognized 
                      postsecondary credential (including a credential 
                      that is an industry-recognized certificate or 
                      certification, portable, and stackable).
                    (C) State operating systems and policies.--The 
                unified State plan shall describe the State operating 
                systems and policies that will support the 
                implementation of the strategy described in paragraph 
                (1)(E), including a description of--
                          (i) the State board, including the activities 
                      to assist members of the State board and the staff 
                      of such board in carrying out the functions of the 
                      State board effectively (but funds for such 
                      activities may not be used for long-distance 
                      travel expenses for training or development 
                      activities available locally or regionally);
                          (ii)(I) how the respective core programs will 
                      be assessed each year, including an assessment of 
                      the quality, effectiveness, and improvement of 
                      programs (analyzed by local area, or by provider), 
                      based on State performance accountability measures 
                      described in section 116(b); and
                          (II) how other one-stop partner programs will 
                      be assessed each year;
                          (iii) the results of an assessment of the 
                      effectiveness of the core programs and other one-
                      stop partner programs during the preceding 2-year 
                      period;
                          (iv) the methods and factors the State will 
                      use in distributing funds under the core programs, 
                      in accordance with the provisions authorizing such 
                      distributions;
                          (v)(I) how the lead State agencies with 
                      responsibility for the administration of the core 
                      programs will align and integrate available 
                      workforce and education data on core programs, 
                      unemployment insurance programs, and education 
                      through postsecondary education;
                          (II) how such agencies will use the workforce 
                      development system to assess the progress of 
                      participants that are exiting from core programs 
                      in entering, persisting in, and completing 
                      postsecondary education, or entering or remaining 
                      in employment; and

[[Page 128 STAT. 1447]]

                          (III) the privacy safeguards incorporated in 
                      such system, including safeguards required by 
                      section 444 of the General Education Provisions 
                      Act (20 U.S.C. 1232g) and other applicable Federal 
                      laws;
                          (vi) how the State will implement the priority 
                      of service provisions for veterans in accordance 
                      with the requirements of section 4215 of title 38, 
                      United States Code;
                          (vii) how the one-stop delivery system, 
                      including one-stop operators and the one-stop 
                      partners, will comply with section 188, if 
                      applicable, and applicable provisions of the 
                      Americans with Disabilities Act of 1990 (42 U.S.C. 
                      12101 et seq.), regarding the physical and 
                      programmatic accessibility of facilities, 
                      programs, services, technology, and materials, for 
                      individuals with disabilities, including complying 
                      through providing staff training and support for 
                      addressing the needs of individuals with 
                      disabilities; and
                          (viii) such other operational planning 
                      elements as the Secretary of Labor or the 
                      Secretary of Education, as appropriate, determines 
                      to be necessary for effective State operating 
                      systems and policies.
                    (D) Program-specific requirements.--The unified 
                State plan shall include--
                          (i) with respect to activities carried out 
                      under subtitle B, a description of--
                                    (I) State policies or guidance, for 
                                the statewide workforce development 
                                system and for use of State funds for 
                                workforce investment activities;
                                    (II) the local areas designated in 
                                the State, including the process used 
                                for designating local areas, and the 
                                process used for identifying any 
                                planning regions under section 106(a), 
                                including a description of how the State 
                                consulted with the local boards and 
                                chief elected officials in determining 
                                the planning regions;
                                    (III) the appeals process referred 
                                to in section 106(b)(5), relating to 
                                designation of local areas;
                                    (IV) the appeals process referred to 
                                in section 121(h)(2)(E), relating to 
                                determinations for infrastructure 
                                funding; and
                                    (V) with respect to youth workforce 
                                investment activities authorized in 
                                section 129, information identifying the 
                                criteria to be used by local boards in 
                                awarding grants for youth workforce 
                                investment activities and describing how 
                                the local boards will take into 
                                consideration the ability of the 
                                providers to meet performance 
                                accountability measures based on primary 
                                indicators of performance for the youth 
                                program as described in section 
                                116(b)(2)(A)(ii) in awarding such 
                                grants;
                          (ii) with respect to activities carried out 
                      under title II, a description of--
                                    (I) how the eligible agency will, if 
                                applicable, align content standards for 
                                adult education with State-adopted 
                                challenging academic content standards, 
                                as adopted under section 1111(b)(1) of 
                                the

[[Page 128 STAT. 1448]]

                                Elementary and Secondary Education Act 
                                of 1965 (20 U.S.C. 6311(b)(1));
                                    (II) how the State will fund local 
                                activities using considerations 
                                specified in section 231(e) for--
                                            (aa) activities under 
                                        section 231(b);
                                            (bb) programs for 
                                        corrections education under 
                                        section 225;
                                            (cc) programs for integrated 
                                        English literacy and civics 
                                        education under section 243; and
                                            (dd) integrated education 
                                        and training;
                                    (III) how the State will use the 
                                funds to carry out activities under 
                                section 223;
                                    (IV) how the State will use the 
                                funds to carry out activities under 
                                section 243;
                                    (V) how the eligible agency will 
                                assess the quality of providers of adult 
                                education and literacy activities under 
                                title II and take actions to improve 
                                such quality, including providing the 
                                activities described in section 
                                223(a)(1)(B);
                          (iii) with respect to programs carried out 
                      under title I of the Rehabilitation Act of 1973 
                      (29 U.S.C. 720 et seq.), other than section 112 or 
                      part C of that title (29 U.S.C. 732, 741), the 
                      information described in section 101(a) of that 
                      Act (29 U.S.C. 721(a)); and
                          (iv) information on such additional specific 
                      requirements for a program referenced in any of 
                      clauses (i) through (iii) or the Wagner-Peyser Act 
                      (29 U.S.C. 49 et seq.) as the Secretary of Labor 
                      determines to be necessary to administer that 
                      program but cannot reasonably be applied across 
                      all such programs.
                    (E) Assurances.--The unified State plan shall 
                include assurances--
                          (i) that the State has established a policy 
                      identifying circumstances that may present a 
                      conflict of interest for a State board or local 
                      board member, or the entity or class of officials 
                      that the member represents, and procedures to 
                      resolve such conflicts;
                          (ii) that the State has established a policy 
                      to provide to the public (including individuals 
                      with disabilities) access to meetings of State 
                      boards and local boards, and information regarding 
                      activities of State boards and local boards, such 
                      as data on board membership and minutes;
                          (iii)(I) that the lead State agencies with 
                      responsibility for the administration of core 
                      programs reviewed and commented on the appropriate 
                      operational planning elements of the unified State 
                      plan, and approved the elements as serving the 
                      needs of the populations served by such programs; 
                      and
                          (II) that the State obtained input into the 
                      development of the unified State plan and provided 
                      an opportunity for comment on the plan by 
                      representatives of local boards and chief elected 
                      officials, businesses, labor organizations, 
                      institutions of higher education, other primary 
                      stakeholders, and the general public

[[Page 128 STAT. 1449]]

                      and that the unified State plan is available and 
                      accessible to the general public;
                          (iv) <<NOTE: Procedures.>>  that the State has 
                      established, in accordance with section 116(i), 
                      fiscal control and fund accounting procedures that 
                      may be necessary to ensure the proper disbursement 
                      of, and accounting for, funds paid to the State 
                      through allotments made for adult, dislocated 
                      worker, and youth programs to carry out workforce 
                      investment activities under chapters 2 and 3 of 
                      subtitle B;
                          (v) that the State has taken appropriate 
                      action to secure compliance with uniform 
                      administrative requirements in this Act, including 
                      that the State will annually monitor local areas 
                      to ensure compliance and otherwise take 
                      appropriate action to secure compliance with the 
                      uniform administrative requirements under section 
                      184(a)(3);
                          (vi) that the State has taken the appropriate 
                      action to be in compliance with section 188, if 
                      applicable;
                          (vii) that the Federal funds received to carry 
                      out a core program will not be expended for any 
                      purpose other than for activities authorized with 
                      respect to such funds under that core program;
                          (viii) that the eligible agency under title II 
                      will--
                                    (I) expend the funds appropriated to 
                                carry out that title only in a manner 
                                consistent with fiscal requirements 
                                under section 241(a) (regarding 
                                supplement and not supplant provisions); 
                                and
                                    (II) ensure that there is at least 1 
                                eligible provider serving each local 
                                area;
                          (ix) that the State will pay an appropriate 
                      share (as defined by the State board) of the costs 
                      of carrying out section 116, from funds made 
                      available through each of the core programs; and
                          (x) regarding such other matters as the 
                      Secretary of Labor or the Secretary of Education, 
                      as appropriate, determines to be necessary for the 
                      administration of the core programs.
            (3) Existing analysis.--As appropriate, a State may use an 
        existing analysis in order to carry out the requirements of 
        paragraph (1) concerning an analysis.

    (c) Plan Submission and Approval.--
            (1) <<NOTE: Deadlines.>>  Submission.--
                    (A) Initial plan.--The initial unified State plan 
                under this section (after the date of enactment of the 
                Workforce Innovation and Opportunity Act) shall be 
                submitted to the Secretary of Labor not later than 120 
                days prior to the commencement of the second full 
                program year after the date of enactment of this Act.
                    (B) <<NOTE: Time period.>>  Subsequent plans.--
                Except as provided in subparagraph (A), a unified State 
                plan shall be submitted to the Secretary of Labor not 
                later than 120 days prior to the end of the 4-year 
                period covered by the preceding unified State plan.
            (2) Submission and approval.--
                    (A) Submission.--In approving a unified State plan 
                under this section, the Secretary shall submit the 
                portion

[[Page 128 STAT. 1450]]

                of the unified State plan covering a program or activity 
                to the head of the Federal agency that administers the 
                program or activity for the approval of such portion by 
                such head.
                    (B) Approval.--A unified State plan shall be subject 
                to the approval of both the Secretary of Labor and the 
                Secretary of Education, after approval of the 
                Commissioner of the Rehabilitation Services 
                Administration for the portion of the plan described in 
                subsection (b)(2)(D)(iii). <<NOTE: Time 
                period. Determination.>>  The plan shall be considered 
                to be approved at the end of the 90-day period beginning 
                on the day the plan is submitted, unless the Secretary 
                of Labor or the Secretary of Education makes a written 
                determination, during the 90-day period, that the plan 
                is inconsistent with the provisions of this section or 
                the provisions authorizing the core programs, as 
                appropriate.
            (3) Modifications.--
                    (A) <<NOTE: Time period. Review.>>  Modifications.--
                At the end of the first 2-year period of any 4-year 
                unified State plan, the State board shall review the 
                unified State plan, and the Governor shall submit 
                modifications to the plan to reflect changes in labor 
                market and economic conditions or in other factors 
                affecting the implementation of the unified State plan.
                    (B) Approval.--A modified unified State plan 
                submitted for the review required under subparagraph (A) 
                shall be subject to the approval requirements described 
                in paragraph (2). A Governor may submit a modified 
                unified State plan at such other times as the Governor 
                determines to be appropriate, and such modified unified 
                State plan shall also be subject to the approval 
                requirements described in paragraph (2).
            (4) <<NOTE: Time period.>>  Early implementers.--The 
        Secretary of Labor, in conjunction with the Secretary of 
        Education, shall establish a process for approving and may 
        approve unified State plans that meet the requirements of this 
        section and are submitted to cover periods commencing prior to 
        the second full program year described in paragraph (1)(A).
SEC. 103. <<NOTE: 29 USC 3113.>>  COMBINED STATE PLAN.

    (a) In General.--
            (1) Authority to submit plan.--A State may develop and 
        submit to the appropriate Secretaries a combined State plan for 
        the core programs and 1 or more of the programs and activities 
        described in paragraph (2) in lieu of submitting 2 or more 
        plans, for the programs and activities and the core programs.
            (2) Programs.--The programs and activities referred to in 
        paragraph (1) are as follows:
                    (A) Career and technical education programs 
                authorized under the Carl D. Perkins Career and 
                Technical Education Act of 2006 (20 U.S.C. 2301 et 
                seq.).
                    (B) Programs authorized under part A of title IV of 
                the Social Security Act (42 U.S.C. 601 et seq.).
                    (C) Programs authorized under section 6(d)(4) of the 
                Food and Nutrition Act of 2008 (7 U.S.C. 2015(d)(4)).
                    (D) Work programs authorized under section 6(o) of 
                the Food and Nutrition Act of 2008 (7 U.S.C. 2015(o)).

[[Page 128 STAT. 1451]]

                    (E) Activities authorized under chapter 2 of title 
                II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.).
                    (F) Activities authorized under chapter 41 of title 
                38, United States Code.
                    (G) Programs authorized under State unemployment 
                compensation laws (in accordance with applicable Federal 
                law).
                    (H) Programs authorized under title V of the Older 
                Americans Act of 1965 (42 U.S.C. 3056 et seq.).
                    (I) Employment and training activities carried out 
                by the Department of Housing and Urban Development.
                    (J) Employment and training activities carried out 
                under the Community Services Block Grant Act (42 U.S.C. 
                9901 et seq.).
                    (K) Programs authorized under section 212 of the 
                Second Chance Act of 2007 (42 U.S.C. 17532).

    (b) Requirements.--
            (1) In general.--The portion of a combined plan covering the 
        core programs shall be subject to the requirements of section 
        102 (including section 102(c)(3)). The portion of such plan 
        covering a program or activity described in subsection (a)(2) 
        shall be subject to the requirements, if any, applicable to a 
        plan or application for assistance for that program or activity, 
        under the Federal law authorizing the program or activity. At 
        the election of the State, section 102(c)(3) may apply to that 
        portion.
            (2) Additional submission not required.--A State that 
        submits a combined plan that is approved under subsection (c) 
        shall not be required to submit any other plan or application in 
        order to receive Federal funds to carry out the core programs or 
        the program or activities described in subsection (a)(2) that 
        are covered by the combined plan.
            (3) Coordination.--A combined plan shall include--
                    (A) a description of the methods used for joint 
                planning and coordination of the core programs and the 
                other programs and activities covered by the combined 
                plan; and
                    (B) an assurance that the methods included an 
                opportunity for the entities responsible for planning or 
                administering the core programs and the other programs 
                and activities to review and comment on all portions of 
                the combined plan.

    (c) Approval by the Appropriate Secretaries.--
            (1) Jurisdiction.--The appropriate Secretary shall have the 
        authority to approve the corresponding portion of a combined 
        plan as described in subsection (d). <<NOTE: Implementation.>>  
        On the approval of the appropriate Secretary, that portion of 
        the combined plan, covering a program or activity, shall be 
        implemented by the State pursuant to that portion of the 
        combined plan, and the Federal law authorizing the program or 
        activity.
            (2) Approval of core programs.--No portion of the plan 
        relating to a core program shall be implemented until the 
        appropriate Secretary approves the corresponding portions of the 
        plan for all core programs.
            (3) <<NOTE: Time periods.>>  Timing of approval.--
                    (A) In general.--Except as provided in subparagraphs 
                (B) and (C), a portion of the combined State plan 
                covering the core programs or a program or activity 
                described in subsection (a)(2) shall be considered to be 
                approved by

[[Page 128 STAT. 1452]]

                the appropriate Secretary at the end of the 90-day 
                period beginning on the day the plan is submitted.
                    (B) Plan approved by 3 or more appropriate 
                secretaries.--If an appropriate Secretary other than the 
                Secretary of Labor or the Secretary of Education has 
                authority to approve a portion of a combined plan, that 
                portion of the combined plan shall be considered to be 
                approved by the appropriate Secretary at the end of the 
                120-day period beginning on the day the plan is 
                submitted.
                    (C) Disapproval.--The portion shall not be 
                considered to be approved if the appropriate Secretary 
                makes a written determination, during the 90-day period 
                (or the 120-day period, for an appropriate Secretary 
                covered by subparagraph (B)), that the portion is not 
                consistent with the requirements of the Federal law 
                authorizing or applicable to the program or activity 
                involved, including the criteria for approval of a plan 
                or application, if any, under such law, or the plan is 
                not consistent with the requirements of this section.
            (4) <<NOTE: Definition.>>  Special rule.--In paragraph (3), 
        the term ``criteria for approval of a plan or application'', 
        with respect to a State and a core program or a program under 
        the Carl D. Perkins Career and Technical Education Act of 2006 
        (20 U.S.C. 2301 et seq.), includes a requirement for agreement 
        between the State and the appropriate Secretaries regarding 
        State performance measures or State performance accountability 
        measures, as the case may be, including levels of performance.

    (d) <<NOTE: Definition.>>  Appropriate Secretary.--In this section, 
the term ``appropriate Secretary'' means--
            (1) with respect to the portion of a combined plan relating 
        to any of the core programs (including a description, and an 
        assurance concerning that program, specified in subsection 
        (b)(3)), the Secretary of Labor and the Secretary of Education; 
        and
            (2) with respect to the portion of a combined plan relating 
        to a program or activity described in subsection (a)(2) 
        (including a description, and an assurance concerning that 
        program or activity, specified in subsection (b)(3)), the head 
        of the Federal agency who exercises plan or application approval 
        authority for the program or activity under the Federal law 
        authorizing the program or activity, or, if there are no 
        planning or application requirements for such program or 
        activity, exercises administrative authority over the program or 
        activity under that Federal law.

                       CHAPTER 2--LOCAL PROVISIONS

SEC. 106. <<NOTE: 29 USC 3121.>>  WORKFORCE DEVELOPMENT AREAS.

    (a) Regions.--
            (1) <<NOTE: Consultation.>>  Identification.--Before the 
        second full program year after the date of enactment of this 
        Act, in order for a State to receive an allotment under section 
        127(b) or 132(b) and as part of the process for developing the 
        State plan, a State shall identify regions in the State after 
        consultation with the local boards and chief elected officials 
        in the local areas and consistent with the considerations 
        described in subsection (b)(1)(B).

[[Page 128 STAT. 1453]]

            (2) Types of regions.--For purposes of this Act, the State 
        shall identify--
                    (A) which regions are comprised of 1 local area that 
                is aligned with the region;
                    (B) which regions are comprised of 2 or more local 
                areas that are (collectively) aligned with the region 
                (referred to as planning regions, consistent with 
                section 3); and
                    (C) which, of the regions described in subparagraph 
                (B), are interstate areas contained within 2 or more 
                States, and consist of labor market areas, economic 
                development areas, or other appropriate contiguous 
                subareas of those States.

    (b) Local Areas.--
            (1) In general.--
                    (A) <<NOTE: Consultation.>>  Process.--Except as 
                provided in subsection (d), and consistent with 
                paragraphs (2) and (3), in order for a State to receive 
                an allotment under section 127(b) or 132(b), the 
                Governor of the State shall designate local workforce 
                development areas within the State--
                          (i) through consultation with the State board; 
                      and
                          (ii) after consultation with chief elected 
                      officials and local boards, and after 
                      consideration of comments received through the 
                      public comment process as described in section 
                      102(b)(2)(E)(iii)(II).
                    (B) Considerations.--The Governor shall designate 
                local areas (except for those local areas described in 
                paragraphs (2) and (3)) based on considerations 
                consisting of the extent to which the areas--
                          (i) are consistent with labor market areas in 
                      the State;
                          (ii) are consistent with regional economic 
                      development areas in the State; and
                          (iii) have available the Federal and non-
                      Federal resources necessary to effectively 
                      administer activities under subtitle B and other 
                      applicable provisions of this Act, including 
                      whether the areas have the appropriate education 
                      and training providers, such as institutions of 
                      higher education and area career and technical 
                      education schools.
            (2) <<NOTE: Time periods.>>  Initial designation.--During 
        the first 2 full program years following the date of enactment 
        of this Act, the Governor shall approve a request for initial 
        designation as a local area from any area that was designated as 
        a local area for purposes of the Workforce Investment Act of 
        1998 for the 2-year period preceding the date of enactment of 
        this Act, performed successfully, and sustained fiscal 
        integrity.
            (3) Subsequent designation.--After the period for which a 
        local area is initially designated under paragraph (2), the 
        Governor shall approve a request for subsequent designation as a 
        local area from such local area, if such area--
                    (A) performed successfully;
                    (B) sustained fiscal integrity; and
                    (C) in the case of a local area in a planning 
                region, met the requirements described in subsection 
                (c)(1).
            (4) <<NOTE: Determination.>>  Designation on recommendation 
        of state board.--The Governor may approve a request from any 
        unit of general

[[Page 128 STAT. 1454]]

        local government (including a combination of such units) for 
        designation of an area as a local area if the State board 
        determines, based on the considerations described in paragraph 
        (1)(B), and recommends to the Governor, that such area should be 
        so designated.
            (5) Appeals.--A unit of general local government (including 
        a combination of such units) or grant recipient that requests 
        but is not granted designation of an area as a local area under 
        paragraph (2) or (3) may submit an appeal to the State board 
        under an appeal process established in the State plan. If the 
        appeal does not result in such a designation, the Secretary of 
        Labor, after receiving a request for review from the unit or 
        grant recipient and on determining that the unit or grant 
        recipient was not accorded procedural rights under the appeals 
        process described in the State plan, as specified in section 
        102(b)(2)(D)(i)(III), or that the area meets the requirements of 
        paragraph (2) or (3), may require that the area be designated as 
        a local area under such paragraph.
            (6) Redesignation assistance.--On the request of all of the 
        local areas in a planning region, the State shall provide 
        funding from funds made available under sections 128(a) and 
        133(a)(1) to assist the local areas in carrying out activities 
        to facilitate the redesignation of the local areas to a single 
        local area.

    (c) Regional Coordination.--
            (1) Regional planning.--The local boards and chief elected 
        officials in each planning region described in subparagraph (B) 
        or (C) of subsection (a)(2) shall engage in a regional planning 
        process that results in--
                    (A) the preparation of a regional plan, as described 
                in paragraph (2);
                    (B) the establishment of regional service 
                strategies, including use of cooperative service 
                delivery agreements;
                    (C) the development and implementation of sector 
                initiatives for in-demand industry sectors or 
                occupations for the region;
                    (D) the collection and analysis of regional labor 
                market data (in conjunction with the State);
                    (E) the establishment of administrative cost 
                arrangements, including the pooling of funds for 
                administrative costs, as appropriate, for the region;
                    (F) the coordination of transportation and other 
                supportive services, as appropriate, for the region;
                    (G) the coordination of services with regional 
                economic development services and providers; and
                    (H) the establishment of an agreement concerning how 
                the planning region will collectively negotiate and 
                reach agreement with Governor on local levels of 
                performance for, and report on, the performance 
                accountability measures described in section 116(c), for 
                local areas or the planning region.
            (2) <<NOTE: Consultation.>>  Regional plans.--The State, 
        after consultation with local boards and chief elected officials 
        for the planning regions, shall require the local boards and 
        chief elected officials within a planning region to prepare, 
        submit, and obtain approval of a single regional plan that 
        includes a description of the activities described in paragraph 
        (1) and that incorporates local

[[Page 128 STAT. 1455]]

        plans for each of the local areas in the planning region. The 
        State shall provide technical assistance and labor market data, 
        as requested by local areas, to assist with such regional 
        planning and subsequent service delivery efforts.
            (3) References.--In this Act, and the core program 
        provisions that are not in this Act:
                    (A) Local area.--Except as provided in section 
                101(d)(9), this section, paragraph (1)(B) or (4) of 
                section 107(c), or section 107(d)(12)(B), or in any text 
                that provides an accompanying provision specifically for 
                a planning region, the term ``local area'' in a 
                provision includes a reference to a planning region for 
                purposes of implementation of that provision by the 
                corresponding local areas in the region.
                    (B) Local plan.--Except as provided in this 
                subsection, the term ``local plan'' includes a reference 
                to the portion of a regional plan developed with respect 
                to the corresponding local area within the region, and 
                any regionwide provision of that plan that impacts or 
                relates to the local area.

    (d) Single State Local Areas.--
            (1) Continuation of previous designation.--The Governor of 
        any State that was a single State local area for purposes of 
        title I of the Workforce Investment Act of 1998, as in effect on 
        July 1, 2013, may designate the State as a single State local 
        area for purposes of this title. In the case of such 
        designation, the Governor shall identify the State as a local 
        area in the State plan.
            (2) Effect on local plan and local functions.--In any case 
        in which a State is designated as a local area pursuant to this 
        subsection, the local plan prepared under section 108 for the 
        area shall be submitted for approval as part of the State plan. 
        In such a State, the State board shall carry out the functions 
        of a local board, as specified in this Act or the provisions 
        authorizing a core program, but the State shall not be required 
        to meet and report on a set of local performance accountability 
        measures.

    (e) Definitions.--For purposes of this section:
            (1) Performed successfully.--The term ``performed 
        successfully'', used with respect to a local area, means the 
        local area met or exceeded the adjusted levels of performance 
        for primary indicators of performance described in section 
        116(b)(2)(A) (or, if applicable, core indicators of performance 
        described in section 136(b)(2)(A) of the Workforce Investment 
        Act of 1998, as in effect the day before the date of enactment 
        of this Act) for each of the last 2 consecutive years for which 
        data are available preceding the determination of performance 
        under this paragraph.
            (2) Sustained fiscal integrity.--The term ``sustained fiscal 
        integrity'', used with respect to a local area, means that the 
        Secretary has not made a formal determination, during either of 
        the last 2 consecutive years preceding the determination 
        regarding such integrity, that either the grant recipient or the 
        administrative entity of the area misexpended funds provided 
        under subtitle B (or, if applicable, title I of the Workforce 
        Investment Act of 1998 as in effect prior to the effective date 
        of such subtitle B) due to willful disregard of

[[Page 128 STAT. 1456]]

        the requirements of the provision involved, gross negligence, or 
        failure to comply with accepted standards of administration.
SEC. 107. <<NOTE: 29 USC 3122.>>  LOCAL WORKFORCE DEVELOPMENT 
                        BOARDS.

    (a) <<NOTE: Certification.>>  Establishment.--Except as provided in 
subsection (c)(2)(A), there shall be established, and certified by the 
Governor of the State, a local workforce development board in each local 
area of a State to carry out the functions described in subsection (d) 
(and any functions specified for the local board under this Act or the 
provisions establishing a core program) for such area.

    (b) Membership.--
            (1) State criteria.--The Governor, in partnership with the 
        State board, shall establish criteria for use by chief elected 
        officials in the local areas for appointment of members of the 
        local boards in such local areas in accordance with the 
        requirements of paragraph (2).
            (2) Composition.--Such criteria shall require that, at a 
        minimum--
                    (A) a majority of the members of each local board 
                shall be representatives of business in the local area, 
                who--
                          (i) are owners of businesses, chief executives 
                      or operating officers of businesses, or other 
                      business executives or employers with optimum 
                      policymaking or hiring authority;
                          (ii) represent businesses, including small 
                      businesses, or organizations representing 
                      businesses described in this clause, that provide 
                      employment opportunities that, at a minimum, 
                      include high-quality, work-relevant training and 
                      development in in-demand industry sectors or 
                      occupations in the local area; and
                          (iii) are appointed from among individuals 
                      nominated by local business organizations and 
                      business trade associations;
                    (B) not less than 20 percent of the members of each 
                local board shall be representatives of the workforce 
                within the local area, who--
                          (i) shall include representatives of labor 
                      organizations (for a local area in which employees 
                      are represented by labor organizations), who have 
                      been nominated by local labor federations, or (for 
                      a local area in which no employees are represented 
                      by such organizations) other representatives of 
                      employees;
                          (ii) shall include a representative, who shall 
                      be a member of a labor organization or a training 
                      director, from a joint labor-management 
                      apprenticeship program, or if no such joint 
                      program exists in the area, such a representative 
                      of an apprenticeship program in the area, if such 
                      a program exists;
                          (iii) may include representatives of 
                      community-based organizations that have 
                      demonstrated experience and expertise in 
                      addressing the employment needs of individuals 
                      with barriers to employment, including 
                      organizations that serve veterans or that provide 
                      or support competitive integrated employment for 
                      individuals with disabilities; and
                          (iv) may include representatives of 
                      organizations that have demonstrated experience 
                      and expertise in

[[Page 128 STAT. 1457]]

                      addressing the employment, training, or education 
                      needs of eligible youth, including representatives 
                      of organizations that serve out-of-school youth;
                    (C) each local board shall include representatives 
                of entities administering education and training 
                activities in the local area, who--
                          (i) shall include a representative of eligible 
                      providers administering adult education and 
                      literacy activities under title II;
                          (ii) shall include a representative of 
                      institutions of higher education providing 
                      workforce investment activities (including 
                      community colleges);
                          (iii) may include representatives of local 
                      educational agencies, and of community-based 
                      organizations with demonstrated experience and 
                      expertise in addressing the education or training 
                      needs of individuals with barriers to employment;
                    (D) each local board shall include representatives 
                of governmental and economic and community development 
                entities serving the local area, who--
                          (i) shall include a representative of economic 
                      and community development entities;
                          (ii) shall include an appropriate 
                      representative from the State employment service 
                      office under the Wagner-Peyser Act (29 U.S.C. 49 
                      et seq.) serving the local area;
                          (iii) shall include an appropriate 
                      representative of the programs carried out under 
                      title I of the Rehabilitation Act of 1973 (29 
                      U.S.C. 720 et seq.), other than section 112 or 
                      part C of that title (29 U.S.C. 732, 741), serving 
                      the local area;
                          (iv) may include representatives of agencies 
                      or entities administering programs serving the 
                      local area relating to transportation, housing, 
                      and public assistance; and
                          (v) may include representatives of 
                      philanthropic organizations serving the local 
                      area; and
                    (E) each local board may include such other 
                individuals or representatives of entities as the chief 
                elected official in the local area may determine to be 
                appropriate.
            (3) Chairperson.--The members of the local board shall elect 
        a chairperson for the local board from among the representatives 
        described in paragraph (2)(A).
            (4) Standing committees.--
                    (A) In general.--The local board may designate and 
                direct the activities of standing committees to provide 
                information and to assist the local board in carrying 
                out activities under this section. Such standing 
                committees shall be chaired by a member of the local 
                board, may include other members of the local board, and 
                shall include other individuals appointed by the local 
                board who are not members of the local board and who the 
                local board determines have appropriate experience and 
                expertise. At a minimum, the local board may designate 
                each of the following:
                          (i) A standing committee to provide 
                      information and assist with operational and other 
                      issues relating

[[Page 128 STAT. 1458]]

                      to the one-stop delivery system, which may include 
                      as members representatives of the one-stop 
                      partners.
                          (ii) A standing committee to provide 
                      information and to assist with planning, 
                      operational, and other issues relating to the 
                      provision of services to youth, which shall 
                      include community-based organizations with a 
                      demonstrated record of success in serving eligible 
                      youth.
                          (iii) A standing committee to provide 
                      information and to assist with operational and 
                      other issues relating to the provision of services 
                      to individuals with disabilities, including issues 
                      relating to compliance with section 188, if 
                      applicable, and applicable provisions of the 
                      Americans with Disabilities Act of 1990 (42 U.S.C. 
                      12101 et seq.) regarding providing programmatic 
                      and physical access to the services, programs, and 
                      activities of the one-stop delivery system, as 
                      well as appropriate training for staff on 
                      providing supports for or accommodations to, and 
                      finding employment opportunities for, individuals 
                      with disabilities.
                    (B) Additional committees.--The local board may 
                designate standing committees in addition to the 
                standing committees specified in subparagraph (A).
                    (C) Designation of entity.--Nothing in this 
                paragraph shall be construed to prohibit the designation 
                of an existing (as of the date of enactment of this Act) 
                entity, such as an effective youth council, to fulfill 
                the requirements of this paragraph as long as the entity 
                meets the requirements of this paragraph.
            (5) Authority of board members.--Members of the board that 
        represent organizations, agencies, or other entities shall be 
        individuals with optimum policymaking authority within the 
        organizations, agencies, or entities. The members of the board 
        shall represent diverse geographic areas within the local area.
            (6) Special rule.--If there are multiple eligible providers 
        serving the local area by administering adult education and 
        literacy activities under title II, or multiple institutions of 
        higher education serving the local area by providing workforce 
        investment activities, each representative on the local board 
        described in clause (i) or (ii) of paragraph (2)(C), 
        respectively, shall be appointed from among individuals 
        nominated by local providers representing such providers or 
        institutions, respectively.

    (c) Appointment and Certification of Board.--
            (1) Appointment of board members and assignment of 
        responsibilities.--
                    (A) In general.--The chief elected official in a 
                local area is authorized to appoint the members of the 
                local board for such area, in accordance with the State 
                criteria established under subsection (b).
                    (B) Multiple units of local government in area.--
                          (i) In general.--In a case in which a local 
                      area includes more than 1 unit of general local 
                      government, the chief elected officials of such 
                      units may execute an agreement that specifies the 
                      respective roles of the individual chief elected 
                      officials--

[[Page 128 STAT. 1459]]

                                    (I) in the appointment of the 
                                members of the local board from the 
                                individuals nominated or recommended to 
                                be such members in accordance with the 
                                criteria established under subsection 
                                (b); and
                                    (II) in carrying out any other 
                                responsibilities assigned to such 
                                officials under this title.
                          (ii) Lack of agreement.--If, after a 
                      reasonable effort, the chief elected officials are 
                      unable to reach agreement as provided under clause 
                      (i), the Governor may appoint the members of the 
                      local board from individuals so nominated or 
                      recommended.
                    (C) Concentrated employment programs.--In the case 
                of an area that was designated as a local area in 
                accordance with section 116(a)(2)(B) of the Workforce 
                Investment Act of 1998 (as in effect on the day before 
                the date of enactment of this Act), and that remains a 
                local area on that date, the governing body of the 
                concentrated employment program involved shall act in 
                consultation with the chief elected official in the 
                local area to appoint members of the local board, in 
                accordance with the State criteria established under 
                subsection (b), and to carry out any other 
                responsibility relating to workforce investment 
                activities assigned to such official under this Act.
            (2) Certification.--
                    (A) In general.--The Governor shall, once every 2 
                years, certify 1 local board for each local area in the 
                State.
                    (B) Criteria.--Such certification shall be based on 
                criteria established under subsection (b), and for a 
                second or subsequent certification, the extent to which 
                the local board has ensured that workforce investment 
                activities carried out in the local area have enabled 
                the local area to meet the corresponding performance 
                accountability measures and achieve sustained fiscal 
                integrity, as defined in section 106(e)(2).
                    (C) Failure to achieve certification.--Failure of a 
                local board to achieve certification shall result in 
                appointment and certification of a new local board for 
                the local area pursuant to the process described in 
                paragraph (1) and this paragraph.
            (3) Decertification.--
                    (A) Fraud, abuse, failure to carry out functions.--
                Notwithstanding paragraph (2), the Governor shall have 
                the authority to decertify a local board at any time 
                after providing notice and an opportunity for comment, 
                for--
                          (i) fraud or abuse; or
                          (ii) failure to carry out the functions 
                      specified for the local board in subsection (d).
                    (B) Nonperformance.--Notwithstanding paragraph (2), 
                the Governor may decertify a local board if a local area 
                fails to meet the local performance accountability 
                measures for such local area in accordance with section 
                116(c) for 2 consecutive program years.
                    (C) <<NOTE: Certification.>>  Reorganization plan.--
                If the Governor decertifies a local board for a local 
                area under subparagraph (A) or (B), the Governor may 
                require that a new local board be appointed and 
                certified for the local area pursuant to

[[Page 128 STAT. 1460]]

                a reorganization plan developed by the Governor, in 
                consultation with the chief elected official in the 
                local area and in accordance with the criteria 
                established under subsection (b).
            (4) Single state local area.--
                    (A) State board.--Notwithstanding subsection (b) and 
                paragraphs (1) and (2), if a State described in section 
                106(d) indicates in the State plan that the State will 
                be treated as a single State local area, for purposes of 
                the application of this Act or the provisions 
                authorizing a core program, the State board shall carry 
                out any of the functions of a local board under this Act 
                or the provisions authorizing a core program, including 
                the functions described in subsection (d).
                    (B) References.--
                          (i) In general.--Except as provided in clauses 
                      (ii) and (iii), with respect to such a State, a 
                      reference in this Act or a core program provision 
                      to a local board shall be considered to be a 
                      reference to the State board, and a reference in 
                      the Act or provision to a local area or region 
                      shall be considered to be a reference to the 
                      State.
                          (ii) Plans.--The State board shall prepare a 
                      local plan under section 108 for the State, and 
                      submit the plan for approval as part of the State 
                      plan.
                          (iii) Performance accountability measures.--
                      The State shall not be required to meet and report 
                      on a set of local performance accountability 
                      measures.

    (d) Functions of Local Board.--Consistent with section 108, the 
functions of the local board shall include the following:
            (1) Local plan.--The local board, in partnership with the 
        chief elected official for the local area involved, shall 
        develop and submit a local plan to the Governor that meets the 
        requirements in section 108. If the local area is part of a 
        planning region that includes other local areas, the local board 
        shall collaborate with the other local boards and chief elected 
        officials from such other local areas in the preparation and 
        submission of a regional plan as described in section 106(c)(2).
            (2) Workforce research and regional labor market analysis.--
        In order to assist in the development and implementation of the 
        local plan, the local board shall--
                    (A) carry out analyses of the economic conditions in 
                the region, the needed knowledge and skills for the 
                region, the workforce in the region, and workforce 
                development activities (including education and 
                training) in the region described in section 
                108(b)(1)(D), and regularly update such information;
                    (B) assist the Governor in developing the statewide 
                workforce and labor market information system described 
                in section 15(e) of the Wagner-Peyser Act (29 U.S.C. 
                49l-2(e)), specifically in the collection, analysis, and 
                utilization of workforce and labor market information 
                for the region; and
                    (C) conduct such other research, data collection, 
                and analysis related to the workforce needs of the 
                regional economy as the board, after receiving input 
                from a wide

[[Page 128 STAT. 1461]]

                array of stakeholders, determines to be necessary to 
                carry out its functions.
            (3) Convening, brokering, leveraging.--The local board shall 
        convene local workforce development system stakeholders to 
        assist in the development of the local plan under section 108 
        and in identifying non-Federal expertise and resources to 
        leverage support for workforce development activities. The local 
        board, including standing committees, may engage such 
        stakeholders in carrying out the functions described in this 
        subsection.
            (4) Employer engagement.--The local board shall lead efforts 
        to engage with a diverse range of employers and with entities in 
        the region involved--
                    (A) to promote business representation (particularly 
                representatives with optimal policymaking or hiring 
                authority from employers whose employment opportunities 
                reflect existing and emerging employment opportunities 
                in the region) on the local board;
                    (B) to develop effective linkages (including the use 
                of intermediaries) with employers in the region to 
                support employer utilization of the local workforce 
                development system and to support local workforce 
                investment activities;
                    (C) to ensure that workforce investment activities 
                meet the needs of employers and support economic growth 
                in the region, by enhancing communication, coordination, 
                and collaboration among employers, economic development 
                entities, and service providers; and
                    (D) to develop and implement proven or promising 
                strategies for meeting the employment and skill needs of 
                workers and employers (such as the establishment of 
                industry and sector partnerships), that provide the 
                skilled workforce needed by employers in the region, and 
                that expand employment and career advancement 
                opportunities for workforce development system 
                participants in in-demand industry sectors or 
                occupations.
            (5) Career pathways development.--The local board, with 
        representatives of secondary and postsecondary education 
        programs, shall lead efforts in the local area to develop and 
        implement career pathways within the local area by aligning the 
        employment, training, education, and supportive services that 
        are needed by adults and youth, particularly individuals with 
        barriers to employment.
            (6) Proven and promising practices.--The local board shall 
        lead efforts in the local area to--
                    (A) identify and promote proven and promising 
                strategies and initiatives for meeting the needs of 
                employers, and workers and jobseekers (including 
                individuals with barriers to employment) in the local 
                workforce development system, including providing 
                physical and programmatic accessibility, in accordance 
                with section 188, if applicable, and applicable 
                provisions of the Americans with Disabilities Act of 
                1990 (42 U.S.C. 12101 et seq.), to the one-stop delivery 
                system; and
                    (B) identify and disseminate information on proven 
                and promising practices carried out in other local areas 
                for meeting such needs.

[[Page 128 STAT. 1462]]

            (7) Technology.--The local board shall develop strategies 
        for using technology to maximize the accessibility and 
        effectiveness of the local workforce development system for 
        employers, and workers and jobseekers, by--
                    (A) facilitating connections among the intake and 
                case management information systems of the one-stop 
                partner programs to support a comprehensive workforce 
                development system in the local area;
                    (B) facilitating access to services provided through 
                the one-stop delivery system involved, including 
                facilitating the access in remote areas;
                    (C) identifying strategies for better meeting the 
                needs of individuals with barriers to employment, 
                including strategies that augment traditional service 
                delivery, and increase access to services and programs 
                of the one-stop delivery system, such as improving 
                digital literacy skills; and
                    (D) leveraging resources and capacity within the 
                local workforce development system, including resources 
                and capacity for services for individuals with barriers 
                to employment.
            (8) Program oversight.--The local board, in partnership with 
        the chief elected official for the local area, shall--
                    (A)(i) conduct oversight for local youth workforce 
                investment activities authorized under section 129(c), 
                local employment and training activities authorized 
                under subsections (c) and (d) of section 134, and the 
                one-stop delivery system in the local area; and
                    (ii) ensure the appropriate use and management of 
                the funds provided under subtitle B for the activities 
                and system described in clause (i); and
                    (B) for workforce development activities, ensure the 
                appropriate use, management, and investment of funds to 
                maximize performance outcomes under section 116.
            (9) Negotiation of local performance accountability 
        measures.--The local board, the chief elected official, and the 
        Governor shall negotiate and reach agreement on local 
        performance accountability measures as described in section 
        116(c).
            (10) Selection of operators and providers.--
                    (A) Selection of one-stop operators.--Consistent 
                with section 121(d), the local board, with the agreement 
                of the chief elected official for the local area--
                          (i) <<NOTE: Certification.>>  shall designate 
                      or certify one-stop operators as described in 
                      section 121(d)(2)(A); and
                          (ii) may terminate for cause the eligibility 
                      of such operators.
                    (B) Selection of youth providers.--Consistent with 
                section 123, the local board--
                          (i) shall identify eligible providers of youth 
                      workforce investment activities in the local area 
                      by awarding grants or contracts on a competitive 
                      basis (except as provided in section 123(b)), 
                      based on the recommendations of the youth standing 
                      committee, if such a committee is established for 
                      the local area under subsection (b)(4); and
                          (ii) may terminate for cause the eligibility 
                      of such providers.

[[Page 128 STAT. 1463]]

                    (C) Identification of eligible providers of training 
                services.--Consistent with section 122, the local board 
                shall identify eligible providers of training services 
                in the local area.
                    (D) Identification of eligible providers of career 
                services.--If the one-stop operator does not provide 
                career services described in section 134(c)(2) in a 
                local area, the local board shall identify eligible 
                providers of those career services in the local area by 
                awarding contracts.
                    (E) Consumer choice requirements.--Consistent with 
                section 122 and paragraphs (2) and (3) of section 
                134(c), the local board shall work with the State to 
                ensure there are sufficient numbers and types of 
                providers of career services and training services 
                (including eligible providers with expertise in 
                assisting individuals with disabilities and eligible 
                providers with expertise in assisting adults in need of 
                adult education and literacy activities) serving the 
                local area and providing the services involved in a 
                manner that maximizes consumer choice, as well as 
                providing opportunities that lead to competitive 
                integrated employment for individuals with disabilities.
            (11) Coordination with education providers.--
                    (A) In general.--The local board shall coordinate 
                activities with education and training providers in the 
                local area, including providers of workforce investment 
                activities, providers of adult education and literacy 
                activities under title II, providers of career and 
                technical education (as defined in section 3 of the Carl 
                D. Perkins Career and Technical Education Act of 2006 
                (20 U.S.C. 2302)) and local agencies administering plans 
                under title I of the Rehabilitation Act of 1973 (29 
                U.S.C. 720 et seq.), other than section 112 or part C of 
                that title (29 U.S.C. 732, 741).
                    (B) Applications and agreements.--The coordination 
                described in subparagraph (A) shall include--
                          (i) consistent with section 232--
                                    (I) reviewing the applications to 
                                provide adult education and literacy 
                                activities under title II for the local 
                                area, submitted under such section to 
                                the eligible agency by eligible 
                                providers, to determine whether such 
                                applications are consistent with the 
                                local plan; and
                                    (II) <<NOTE: Recommenda- tion.>>  
                                making recommendations to the eligible 
                                agency to promote alignment with such 
                                plan; and
                          (ii) replicating cooperative agreements in 
                      accordance with subparagraph (B) of section 
                      101(a)(11) of the Rehabilitation Act of 1973 (29 
                      U.S.C. 721(a)(11)), and implementing cooperative 
                      agreements in accordance with that section with 
                      the local agencies administering plans under title 
                      I of that Act (29 U.S.C. 720 et seq.) (other than 
                      section 112 or part C of that title (29 U.S.C. 
                      732, 741) and subject to section 121(f)), with 
                      respect to efforts that will enhance the provision 
                      of services to individuals with disabilities and 
                      other individuals, such as cross training of 
                      staff, technical assistance, use and sharing of 
                      information, cooperative

[[Page 128 STAT. 1464]]

                      efforts with employers, and other efforts at 
                      cooperation, collaboration, and coordination.
                    (C) <<NOTE: Definition.>>  Cooperative agreement.--
                In this paragraph, the term ``cooperative agreement'' 
                means an agreement entered into by a State designated 
                agency or State designated unit under subparagraph (A) 
                of section 101(a)(11) of the Rehabilitation Act of 1973.
            (12) Budget and administration.--
                    (A) Budget.--The local board shall develop a budget 
                for the activities of the local board in the local area, 
                consistent with the local plan and the duties of the 
                local board under this section, subject to the approval 
                of the chief elected official.
                    (B) Administration.--
                          (i) Grant recipient.--
                                    (I) In general.--The chief elected 
                                official in a local area shall serve as 
                                the local grant recipient for, and shall 
                                be liable for any misuse of, the grant 
                                funds allocated to the local area under 
                                sections 128 and 133, unless the chief 
                                elected official reaches an agreement 
                                with the Governor for the Governor to 
                                act as the local grant recipient and 
                                bear such liability.
                                    (II) Designation.--In order to 
                                assist in administration of the grant 
                                funds, the chief elected official or the 
                                Governor, where the Governor serves as 
                                the local grant recipient for a local 
                                area, may designate an entity to serve 
                                as a local grant subrecipient for such 
                                funds or as a local fiscal agent. Such 
                                designation shall not relieve the chief 
                                elected official or the Governor of the 
                                liability for any misuse of grant funds 
                                as described in subclause (I).
                                    (III) Disbursal.--The local grant 
                                recipient or an entity designated under 
                                subclause (II) shall disburse the grant 
                                funds for workforce investment 
                                activities at the direction of the local 
                                board, pursuant to the requirements of 
                                this title. The local grant recipient or 
                                entity designated under subclause (II) 
                                shall disburse the funds immediately on 
                                receiving such direction from the local 
                                board.
                          (ii) Grants and donations.--The local board 
                      may solicit and accept grants and donations from 
                      sources other than Federal funds made available 
                      under this Act.
                          (iii) Tax-exempt status.--For purposes of 
                      carrying out duties under this Act, local boards 
                      may incorporate, and may operate as entities 
                      described in section 501(c)(3) of the Internal 
                      Revenue Code of 1986 that are exempt from taxation 
                      under section 501(a) of such Code.
            (13) Accessibility for individuals with disabilities.--The 
        local board shall annually assess the physical and programmatic 
        accessibility, in accordance with section 188, if applicable, 
        and applicable provisions of the Americans with Disabilities Act 
        of 1990 (42 U.S.C. 12101 et seq.), of all one-stop centers in 
        the local area.

[[Page 128 STAT. 1465]]

    (e) <<NOTE: Public information.>>  Sunshine Provision.--The local 
board shall make available to the public, on a regular basis through 
electronic means and open meetings, information regarding the activities 
of the local board, including information regarding the local plan prior 
to submission of the plan, and regarding membership, the designation and 
certification of one-stop operators, and the award of grants or 
contracts to eligible providers of youth workforce investment 
activities, and on request, minutes of formal meetings of the local 
board.

    (f) Staff.--
            (1) In general.--The local board may hire a director and 
        other staff to assist in carrying out the functions described in 
        subsection (d) using funds available under sections 128(b) and 
        133(b) as described in section 128(b)(4).
            (2) Qualifications.--The local board shall establish and 
        apply a set of objective qualifications for the position of 
        director, that ensures that the individual selected has the 
        requisite knowledge, skills, and abilities, to meet identified 
        benchmarks and to assist in effectively carrying out the 
        functions of the local board.
            (3) Limitation on rate.--The director and staff described in 
        paragraph (1) shall be subject to the limitations on the payment 
        of salaries and bonuses described in section 194(15).

    (g) Limitations.--
            (1) Training services.--
                    (A) In general.--Except as provided in subparagraph 
                (B), no local board may provide training services.
                    (B) Waivers of training prohibition.--The Governor 
                of the State in which a local board is located may, 
                pursuant to a request from the local board, grant a 
                written waiver of the prohibition set forth in 
                subparagraph (A) (relating to the provision of training 
                services) for a program of training services, if the 
                local board--
                          (i) submits to the Governor a proposed request 
                      for the waiver that includes--
                                    (I) satisfactory evidence that there 
                                is an insufficient number of eligible 
                                providers of such a program of training 
                                services to meet local demand in the 
                                local area;
                                    (II) information demonstrating that 
                                the board meets the requirements for an 
                                eligible provider of training services 
                                under section 122; and
                                    (III) information demonstrating that 
                                the program of training services 
                                prepares participants for an in-demand 
                                industry sector or occupation in the 
                                local area;
                          (ii) <<NOTE: Public information. Time 
                      period.>>  makes the proposed request available to 
                      eligible providers of training services and other 
                      interested members of the public for a public 
                      comment period of not less than 30 days; and
                          (iii) includes, in the final request for the 
                      waiver, the evidence and information described in 
                      clause (i) and the comments received pursuant to 
                      clause (ii).
                    (C) <<NOTE: Applicability. Time period.>>  
                Duration.--A waiver granted to a local board under 
                subparagraph (B) shall apply for a period that shall not 
                exceed the duration of the local plan. The waiver may be 
                renewed for additional periods under subsequent local

[[Page 128 STAT. 1466]]

                plans, not to exceed the durations of such subsequent 
                plans, pursuant to requests from the local board, if the 
                board meets the requirements of subparagraph (B) in 
                making the requests.
                    (D) <<NOTE: Determination.>>  Revocation.--The 
                Governor shall have the authority to revoke the waiver 
                during the appropriate period described in subparagraph 
                (C) if the Governor determines the waiver is no longer 
                needed or that the local board involved has engaged in a 
                pattern of inappropriate referrals to training services 
                operated by the local board.
            (2) Career services; designation or certification as one-
        stop operators.--A local board may provide career services 
        described in section 134(c)(2) through a one-stop delivery 
        system or be designated or certified as a one-stop operator only 
        with the agreement of the chief elected official in the local 
        area and the Governor.
            (3) Limitation on authority.--Nothing in this Act shall be 
        construed to provide a local board with the authority to mandate 
        curricula for schools.

    (h) Conflict of Interest.--A member of a local board, or a member of 
a standing committee, may not--
            (1) vote on a matter under consideration by the local 
        board--
                    (A) regarding the provision of services by such 
                member (or by an entity that such member represents); or
                    (B) that would provide direct financial benefit to 
                such member or the immediate family of such member; or
            (2) engage in any other activity determined by the Governor 
        to constitute a conflict of interest as specified in the State 
        plan.

    (i) Alternative Entity.--
            (1) In general.--For purposes of complying with subsections 
        (a), (b), and (c), a State may use any local entity (including a 
        local council, regional workforce development board, or similar 
        entity) that--
                    (A) is established to serve the local area (or the 
                service delivery area that most closely corresponds to 
                the local area);
                    (B) was in existence on the day before the date of 
                enactment of this Act, pursuant to State law; and
                    (C) includes--
                          (i) representatives of business in the local 
                      area; and
                          (ii)(I) representatives of labor organizations 
                      (for a local area in which employees are 
                      represented by labor organizations), nominated by 
                      local labor federations; or
                          (II) other representatives of employees in the 
                      local area (for a local area in which no employees 
                      are represented by such organizations).
            (2) References.--A reference in this Act or a core program 
        provision to a local board, shall include a reference to such an 
        entity.
SEC. 108. <<NOTE: 29 USC 3123.>>  LOCAL PLAN.

    (a) In General.--Each local board shall develop and submit to the 
Governor a comprehensive 4-year local plan, in partnership

[[Page 128 STAT. 1467]]

with the chief elected official. The local plan shall support the 
strategy described in the State plan in accordance with section 
102(b)(1)(E), and otherwise be consistent with the State 
plan. <<NOTE: Compliance.>>  If the local area is part of a planning 
region, the local board shall comply with section 106(c) in the 
preparation and submission of a regional plan. <<NOTE: Time 
period. Review.>>  At the end of the first 2-year period of the 4-year 
local plan, each local board shall review the local plan and the local 
board, in partnership with the chief elected official, shall prepare and 
submit modifications to the local plan to reflect changes in labor 
market and economic conditions or in other factors affecting the 
implementation of the local plan.

    (b) Contents.--The local plan shall include--
            (1) a description of the strategic planning elements 
        consisting of--
                    (A) an analysis of the regional economic conditions 
                including--
                          (i) existing and emerging in-demand industry 
                      sectors and occupations; and
                          (ii) the employment needs of employers in 
                      those industry sectors and occupations;
                    (B) an analysis of the knowledge and skills needed 
                to meet the employment needs of the employers in the 
                region, including employment needs in in-demand industry 
                sectors and occupations;
                    (C) an analysis of the workforce in the region, 
                including current labor force employment (and 
                unemployment) data, and information on labor market 
                trends, and the educational and skill levels of the 
                workforce in the region, including individuals with 
                barriers to employment;
                    (D) an analysis of the workforce development 
                activities (including education and training) in the 
                region, including an analysis of the strengths and 
                weaknesses of such services, and the capacity to provide 
                such services, to address the identified education and 
                skill needs of the workforce and the employment needs of 
                employers in the region;
                    (E) a description of the local board's strategic 
                vision and goals for preparing an educated and skilled 
                workforce (including youth and individuals with barriers 
                to employment), including goals relating to the 
                performance accountability measures based on primary 
                indicators of performance described in section 
                116(b)(2)(A) in order to support regional economic 
                growth and economic self-sufficiency; and
                    (F) taking into account analyses described in 
                subparagraphs (A) through (D), a strategy to work with 
                the entities that carry out the core programs to align 
                resources available to the local area, to achieve the 
                strategic vision and goals described in subparagraph 
                (E);
            (2) a description of the workforce development system in the 
        local area that identifies the programs that are included in 
        that system and how the local board will work with the entities 
        carrying out core programs and other workforce development 
        programs to support alignment to provide services, including 
        programs of study authorized under the Carl D. Perkins Career 
        and Technical Education Act of 2006 (20 U.S.C. 2301 et seq.), 
        that support the strategy identified in the State plan under 
        section 102(b)(1)(E);

[[Page 128 STAT. 1468]]

            (3) a description of how the local board, working with the 
        entities carrying out core programs, will expand access to 
        employment, training, education, and supportive services for 
        eligible individuals, particularly eligible individuals with 
        barriers to employment, including how the local board will 
        facilitate the development of career pathways and co-enrollment, 
        as appropriate, in core programs, and improve access to 
        activities leading to a recognized postsecondary credential 
        (including a credential that is an industry-recognized 
        certificate or certification, portable, and stackable);
            (4) a description of the strategies and services that will 
        be used in the local area--
                    (A) in order to--
                          (i) facilitate engagement of employers, 
                      including small employers and employers in in-
                      demand industry sectors and occupations, in 
                      workforce development programs;
                          (ii) support a local workforce development 
                      system that meets the needs of businesses in the 
                      local area;
                          (iii) better coordinate workforce development 
                      programs and economic development; and
                          (iv) strengthen linkages between the one-stop 
                      delivery system and unemployment insurance 
                      programs; and
                    (B) that may include the implementation of 
                initiatives such as incumbent worker training programs, 
                on-the-job training programs, customized training 
                programs, industry and sector strategies, career 
                pathways initiatives, utilization of effective business 
                intermediaries, and other business services and 
                strategies, designed to meet the needs of employers in 
                the corresponding region in support of the strategy 
                described in paragraph (1)(F);
            (5) a description of how the local board will coordinate 
        workforce investment activities carried out in the local area 
        with economic development activities carried out in the region 
        in which the local area is located (or planning region), and 
        promote entrepreneurial skills training and microenterprise 
        services;
            (6) a description of the one-stop delivery system in the 
        local area, including--
                    (A) a description of how the local board will ensure 
                the continuous improvement of eligible providers of 
                services through the system and ensure that such 
                providers meet the employment needs of local employers, 
                and workers and jobseekers;
                    (B) a description of how the local board will 
                facilitate access to services provided through the one-
                stop delivery system, including in remote areas, through 
                the use of technology and through other means;
                    (C) a description of how entities within the one-
                stop delivery system, including one-stop operators and 
                the one-stop partners, will comply with section 188, if 
                applicable, and applicable provisions of the Americans 
                with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) 
                regarding the physical and programmatic accessibility of 
                facilities, programs and services, technology, and 
                materials for individuals with disabilities, including 
                providing staff training and support

[[Page 128 STAT. 1469]]

                for addressing the needs of individuals with 
                disabilities; and
                    (D) a description of the roles and resource 
                contributions of the one-stop partners;
            (7) a description and assessment of the type and 
        availability of adult and dislocated worker employment and 
        training activities in the local area;
            (8) a description of how the local board will coordinate 
        workforce investment activities carried out in the local area 
        with statewide rapid response activities, as described in 
        section 134(a)(2)(A);
            (9) a description and assessment of the type and 
        availability of youth workforce investment activities in the 
        local area, including activities for youth who are individuals 
        with disabilities, which description and assessment shall 
        include an identification of successful models of such youth 
        workforce investment activities;
            (10) a description of how the local board will coordinate 
        education and workforce investment activities carried out in the 
        local area with relevant secondary and postsecondary education 
        programs and activities to coordinate strategies, enhance 
        services, and avoid duplication of services;
            (11) a description of how the local board will coordinate 
        workforce investment activities carried out under this title in 
        the local area with the provision of transportation, including 
        public transportation, and other appropriate supportive services 
        in the local area;
            (12) a description of plans and strategies for, and 
        assurances concerning, maximizing coordination of services 
        provided by the State employment service under the Wagner-Peyser 
        Act (29 U.S.C. 49 et seq.) and services provided in the local 
        area through the one-stop delivery system, to improve service 
        delivery and avoid duplication of services;
            (13) a description of how the local board will coordinate 
        workforce investment activities carried out under this title in 
        the local area with the provision of adult education and 
        literacy activities under title II in the local area, including 
        a description of how the local board will carry out, consistent 
        with subparagraphs (A) and (B)(i) of section 107(d)(11) and 
        section 232, the review of local applications submitted under 
        title II;
            (14) a description of the replicated cooperative agreements 
        (as defined in section 107(d)(11)) between the local board or 
        other local entities described in section 101(a)(11)(B) of the 
        Rehabilitation Act of 1973 (29 U.S.C. 721(a)(11)(B)) and the 
        local office of a designated State agency or designated State 
        unit administering programs carried out under title I of such 
        Act (29 U.S.C. 720 et seq.) (other than section 112 or part C of 
        that title (29 U.S.C. 732, 741) and subject to section 121(f)) 
        in accordance with section 101(a)(11) of such Act (29 U.S.C. 
        721(a)(11)) with respect to efforts that will enhance the 
        provision of services to individuals with disabilities and to 
        other individuals, such as cross training of staff, technical 
        assistance, use and sharing of information, cooperative efforts 
        with employers, and other efforts at cooperation, collaboration, 
        and coordination;
            (15) an identification of the entity responsible for the 
        disbursal of grant funds described in section 
        107(d)(12)(B)(i)(III),

[[Page 128 STAT. 1470]]

        as determined by the chief elected official or the Governor 
        under section 107(d)(12)(B)(i);
            (16) a description of the competitive process to be used to 
        award the subgrants and contracts in the local area for 
        activities carried out under this title;
            (17) a description of the local levels of performance 
        negotiated with the Governor and chief elected official pursuant 
        to section 116(c), to be used to measure the performance of the 
        local area and to be used by the local board for measuring the 
        performance of the local fiscal agent (where appropriate), 
        eligible providers under subtitle B, and the one-stop delivery 
        system, in the local area;
            (18) a description of the actions the local board will take 
        toward becoming or remaining a high-performing board, consistent 
        with the factors developed by the State board pursuant to 
        section 101(d)(6);
            (19) a description of how training services under chapter 3 
        of subtitle B will be provided in accordance with section 
        134(c)(3)(G), including, if contracts for the training services 
        will be used, how the use of such contracts will be coordinated 
        with the use of individual training accounts under that chapter 
        and how the local board will ensure informed customer choice in 
        the selection of training programs regardless of how the 
        training services are to be provided;
            (20) a description of the process used by the local board, 
        consistent with subsection (d), to provide an opportunity for 
        public comment, including comment by representatives of 
        businesses and comment by representatives of labor 
        organizations, and input into the development of the local plan, 
        prior to submission of the plan;
            (21) a description of how one-stop centers are implementing 
        and transitioning to an integrated, technology-enabled intake 
        and case management information system for programs carried out 
        under this Act and programs carried out by one-stop partners; 
        and
            (22) such other information as the Governor may require.

    (c) Existing Analysis.--As appropriate, a local area may use an 
existing analysis in order to carry out the requirements of subsection 
(b)(1) concerning an analysis.
    (d) Process.--Prior to the date on which the local board submits a 
local plan under this section, the local board shall--
            (1) <<NOTE: Records. Public information.>>  make available 
        copies of a proposed local plan to the public through electronic 
        and other means, such as public hearings and local news media;
            (2) <<NOTE: Deadline. Time period.>>  allow members of the 
        public, including representatives of business, representatives 
        of labor organizations, and representatives of education to 
        submit to the local board comments on the proposed local plan, 
        not later than the end of the 30-day period beginning on the 
        date on which the proposed local plan is made available; and
            (3) include with the local plan submitted to the Governor 
        under this section any such comments that represent disagreement 
        with the plan.

    (e) <<NOTE: Time period. Effective date.>>  Plan Submission and 
Approval.--A local plan submitted to the Governor under this section 
(including a modification to such a local plan) shall be considered to 
be approved by the Governor at the end of the 90-day period beginning on 
the day the

[[Page 128 STAT. 1471]]

Governor receives the plan (including such a modification), unless the 
Governor makes a written determination during the 90-day period that--
            (1) deficiencies in activities carried out under this 
        subtitle or subtitle B have been identified, through audits 
        conducted under section 184 or otherwise, and the local area has 
        not made acceptable progress in implementing corrective measures 
        to address the deficiencies;
            (2) the plan does not comply with the applicable provisions 
        of this Act; or
            (3) the plan does not align with the State plan, including 
        failing to provide for alignment of the core programs to support 
        the strategy identified in the State plan in accordance with 
        section 102(b)(1)(E).

                       CHAPTER 3--BOARD PROVISIONS

SEC. 111. <<NOTE: 29 USC 3131.>>  FUNDING OF STATE AND LOCAL 
                        BOARDS.

    (a) State Boards.--In funding a State board under this subtitle, a 
State--
            (1) shall use funds available as described in section 
        129(b)(3) or 134(a)(3)(B); and
            (2) may use non-Federal funds available to the State that 
        the State determines are appropriate and available for that use.

    (b) Local Boards.--In funding a local board under this subtitle, the 
chief elected official and local board for the local area--
            (1) shall use funds available as described in section 
        128(b)(4); and
            (2) may use non-Federal funds available to the local area 
        that the chief elected official and local board determine are 
        appropriate and available for that use.

                  CHAPTER 4--PERFORMANCE ACCOUNTABILITY

SEC. 116. <<NOTE: 29 USC 3141.>>  PERFORMANCE ACCOUNTABILITY 
                        SYSTEM.

    (a) <<NOTE: Applicability. Assessment.>>  Purpose.--The purpose of 
this section is to establish performance accountability measures that 
apply across the core programs to assess the effectiveness of States and 
local areas (for core programs described in subtitle B) in achieving 
positive outcomes for individuals served by those programs.

    (b) State Performance Accountability Measures.--
            (1) In general.--For each State, the performance 
        accountability measures for the core programs shall consist of--
                    (A)(i) the primary indicators of performance 
                described in paragraph (2)(A); and
                    (ii) the additional indicators of performance (if 
                any) identified by the State under paragraph (2)(B); and
                    (B) a State adjusted level of performance for each 
                indicator described in subparagraph (A).
            (2) Indicators of performance.--
                    (A) Primary indicators of performance.--
                          (i) In general.--The State primary indicators 
                      of performance for activities provided under the 
                      adult and dislocated worker programs authorized 
                      under chapter 3 of subtitle B, the program of 
                      adult education and literacy activities authorized 
                      under title II, the

[[Page 128 STAT. 1472]]

                      employment services program authorized under 
                      sections 1 through 13 of the Wagner-Peyser Act (29 
                      U.S.C. 49 et seq.) (except that subclauses (IV) 
                      and (V) shall not apply to such program), and the 
                      program authorized under title I of the 
                      Rehabilitation Act of 1973 (29 U.S.C. 720 et 
                      seq.), other than section 112 or part C of that 
                      title (29 U.S.C. 732, 741), shall consist of--
                                    (I) the percentage of program 
                                participants who are in unsubsidized 
                                employment during the second quarter 
                                after exit from the program;
                                    (II) the percentage of program 
                                participants who are in unsubsidized 
                                employment during the fourth quarter 
                                after exit from the program;
                                    (III) the median earnings of program 
                                participants who are in unsubsidized 
                                employment during the second quarter 
                                after exit from the program;
                                    (IV) the percentage of program 
                                participants who obtain a recognized 
                                postsecondary credential, or a secondary 
                                school diploma or its recognized 
                                equivalent (subject to clause (iii)), 
                                during participation in or within 1 year 
                                after exit from the program;
                                    (V) the percentage of program 
                                participants who, during a program year, 
                                are in an education or training program 
                                that leads to a recognized postsecondary 
                                credential or employment and who are 
                                achieving measurable skill gains toward 
                                such a credential or employment; and
                                    (VI) the indicators of effectiveness 
                                in serving employers established 
                                pursuant to clause (iv).
                          (ii) Primary indicators for eligible youth.--
                      The primary indicators of performance for the 
                      youth program authorized under chapter 2 of 
                      subtitle B shall consist of--
                                    (I) the percentage of program 
                                participants who are in education or 
                                training activities, or in unsubsidized 
                                employment, during the second quarter 
                                after exit from the program;
                                    (II) the percentage of program 
                                participants who are in education or 
                                training activities, or in unsubsidized 
                                employment, during the fourth quarter 
                                after exit from the program; and
                                    (III) the primary indicators of 
                                performance described in subclauses 
                                (III) through (VI) of subparagraph 
                                (A)(i).
                          (iii) Indicator relating to credential.--For 
                      purposes of clause (i)(IV), or clause (ii)(III) 
                      with respect to clause (i)(IV), program 
                      participants who obtain a secondary school diploma 
                      or its recognized equivalent shall be included in 
                      the percentage counted as meeting the criterion 
                      under such clause only if such participants, in 
                      addition to obtaining such diploma or its 
                      recognized equivalent, have obtained or retained 
                      employment or are in an education or training 
                      program leading to a recognized postsecondary 
                      credential within 1 year after exit from the 
                      program.

[[Page 128 STAT. 1473]]

                          (iv) <<NOTE: Consultation.>>  Indicator for 
                      services to employers.--Prior to the commencement 
                      of the second full program year after the date of 
                      enactment of this Act, for purposes of clauses 
                      (i)(VI), or clause (ii)(III) with respect to 
                      clause (i)(IV), the Secretary of Labor and the 
                      Secretary of Education, after consultation with 
                      the representatives described in paragraph (4)(B), 
                      shall jointly develop and establish, for purposes 
                      of this subparagraph, 1 or more primary indicators 
                      of performance that indicate the effectiveness of 
                      the core programs in serving employers.
                    (B) Additional indicators.--A State may identify in 
                the State plan additional performance accountability 
                indicators.
            (3) Levels of performance.--
                    (A) State adjusted levels of performance for primary 
                indicators.--
                          (i) In general.--For each State submitting a 
                      State plan, there shall be established, in 
                      accordance with this subparagraph, levels of 
                      performance for each of the corresponding primary 
                      indicators of performance described in paragraph 
                      (2) for each of the programs described in clause 
                      (ii).
                          (ii) Included programs.--The programs included 
                      under clause (i) are--
                                    (I) the youth program authorized 
                                under chapter 2 of subtitle B;
                                    (II) the adult program authorized 
                                under chapter 3 of subtitle B;
                                    (III) the dislocated worker program 
                                authorized under chapter 3 of subtitle 
                                B;
                                    (IV) the program of adult education 
                                and literacy activities authorized under 
                                title II;
                                    (V) the employment services program 
                                authorized under sections 1 through 13 
                                of the Wagner-Peyser Act (29 U.S.C. 49 
                                et seq.); and
                                    (VI) the program authorized under 
                                title I of the Rehabilitation Act of 
                                1973 (29 U.S.C. 720 et seq.), other than 
                                section 112 or part C of that title (29 
                                U.S.C. 732, 741).
                          (iii) <<NOTE: Time period.>>  Identification 
                      in state plan.--Each State shall identify, in the 
                      State plan, expected levels of performance for 
                      each of the corresponding primary indicators of 
                      performance for each of the programs described in 
                      clause (ii) for the first 2 program years covered 
                      by the State plan.
                          (iv) Agreement on state adjusted levels of 
                      performance.--
                                    (I) First 2 years.--The State shall 
                                reach agreement with the Secretary of 
                                Labor, in conjunction with the Secretary 
                                of Education on levels of performance 
                                for each indicator described in clause 
                                (iii) for each of the programs described 
                                in clause (ii) for each of the first 2 
                                program years covered by the State plan. 
                                In reaching the agreement, the State and 
                                the Secretary of Labor in conjunction 
                                with the Secretary of Education shall 
                                take into

[[Page 128 STAT. 1474]]

                                account the levels identified in the 
                                State plan under clause (iii) and the 
                                factors described in clause (v). The 
                                levels agreed to shall be considered to 
                                be the State adjusted levels of 
                                performance for the State for such 
                                program years and shall be incorporated 
                                into the State plan prior to the 
                                approval of such plan.
                                    (II) Third and fourth year.--The 
                                State and the Secretary of Labor, in 
                                conjunction with the Secretary of 
                                Education, shall reach agreement, prior 
                                to the third program year covered by the 
                                State plan, on levels of performance for 
                                each indicator described in clause (iii) 
                                for each of the programs described in 
                                clause (ii) for each of the third and 
                                fourth program years covered by the 
                                State plan. In reaching the agreement, 
                                the State and Secretary of Labor, in 
                                conjunction with the Secretary of 
                                Education, shall take into account the 
                                factors described in clause (v). The 
                                levels agreed to shall be considered to 
                                be the State adjusted levels of 
                                performance for the State for such 
                                program years and shall be incorporated 
                                into the State plan as a modification to 
                                the plan.
                          (v) Factors.--In reaching the agreements 
                      described in clause (iv), the State and 
                      Secretaries shall--
                                    (I) take into account how the levels 
                                involved compare with the State adjusted 
                                levels of performance established for 
                                other States;
                                    (II) ensure that the levels involved 
                                are adjusted, using the objective 
                                statistical model established by the 
                                Secretaries pursuant to clause (viii), 
                                based on--
                                            (aa) the differences among 
                                        States in actual economic 
                                        conditions (including 
                                        differences in unemployment 
                                        rates and job losses or gains in 
                                        particular industries); and
                                            (bb) the characteristics of 
                                        participants when the 
                                        participants entered the program 
                                        involved, including indicators 
                                        of poor work history, lack of 
                                        work experience, lack of 
                                        educational or occupational 
                                        skills attainment, dislocation 
                                        from high-wage and high-benefit 
                                        employment, low levels of 
                                        literacy or English proficiency, 
                                        disability status, homelessness, 
                                        ex-offender status, and welfare 
                                        dependency;
                                    (III) take into account the extent 
                                to which the levels involved promote 
                                continuous improvement in performance 
                                accountability on the performance 
                                accountability measures by such State 
                                and ensure optimal return on the 
                                investment of Federal funds; and
                                    (IV) take into account the extent to 
                                which the levels involved will assist 
                                the State in meeting the goals described 
                                in clause (vi).
                          (vi) <<NOTE: Consultation.>>  Goals.--In order 
                      to promote enhanced performance outcomes and to 
                      facilitate the process of

[[Page 128 STAT. 1475]]

                      reaching agreements with the States under clause 
                      (iv), the Secretary of Labor, in conjunction with 
                      the Secretary of Education, shall establish 
                      performance goals for the core programs, in 
                      accordance with the Government Performance and 
                      Results Act of 1993 (Public Law 103-62; 107 Stat. 
                      285) and the amendments made by that Act, and in 
                      consultation with States and other appropriate 
                      parties. Such goals shall be long-term goals for 
                      the adjusted levels of performance to be achieved 
                      by each of the programs described in clause (ii) 
                      regarding the corresponding primary indicators of 
                      performance described in paragraph (2)(A).
                          (vii) Revisions based on economic conditions 
                      and individuals served during the program year.--
                      The Secretary of Labor, in conjunction with the 
                      Secretary of Education, shall, in accordance with 
                      the objective statistical model developed pursuant 
                      to clause (viii), revise the State adjusted levels 
                      of performance applicable for each of the programs 
                      described in clause (ii), for a program year and a 
                      State, to reflect the actual economic conditions 
                      and characteristics of participants (as described 
                      in clause (v)(II)) in that program during such 
                      program year in such State.
                          (viii) <<NOTE: Consultation.>>  Statistical 
                      adjustment model.--The Secretary of Labor and the 
                      Secretary of Education, after consultation with 
                      the representatives described in paragraph (4)(B), 
                      shall develop and disseminate an objective 
                      statistical model that will be used to make the 
                      adjustments in the State adjusted levels of 
                      performance for actual economic conditions and 
                      characteristics of participants under clauses (v) 
                      and (vii).
                    (B) Levels of performance for additional 
                indicators.--The State may identify, in the State plan, 
                State levels of performance for each of the additional 
                indicators identified under paragraph (2)(B). Such 
                levels shall be considered to be State adjusted levels 
                of performance for purposes of this section.
            (4) Definitions of indicators of performance.--
                    (A) <<NOTE: Consultation.>>  In general.--In order 
                to ensure nationwide comparability of performance data, 
                the Secretary of Labor and the Secretary of Education, 
                after consultation with representatives described in 
                subparagraph (B), shall issue definitions for the 
                indicators described in paragraph (2).
                    (B) Representatives.--The representatives referred 
                to in subparagraph (A) are representatives of States and 
                political subdivisions, business and industry, 
                employees, eligible providers of activities carried out 
                through the core programs, educators, researchers, 
                participants, the lead State agency officials with 
                responsibility for the programs carried out through the 
                core programs, individuals with expertise in serving 
                individuals with barriers to employment, and other 
                interested parties.

    (c) Local Performance Accountability Measures for Subtitle B.--

[[Page 128 STAT. 1476]]

            (1) In general.--For each local area in a State designated 
        under section 106, the local performance accountability measures 
        for each of the programs described in subclauses (I) through 
        (III) of subsection (b)(3)(A)(ii) shall consist of--
                    (A)(i) the primary indicators of performance 
                described in subsection (b)(2)(A) that are applicable to 
                such programs; and
                    (ii) additional indicators of performance, if any, 
                identified by the State for such programs under 
                subsection (b)(2)(B); and
                    (B) the local level of performance for each 
                indicator described in subparagraph (A).
            (2) <<NOTE: Negotiation.>>  Local level of performance.--The 
        local board, the chief elected official, and the Governor shall 
        negotiate and reach agreement on local levels of performance 
        based on the State adjusted levels of performance established 
        under subsection (b)(3)(A).
            (3) Adjustment factors.--In negotiating the local levels of 
        performance, the local board, the chief elected official, and 
        the Governor shall make adjustments for the expected economic 
        conditions and the expected characteristics of participants to 
        be served in the local area, using the statistical adjustment 
        model developed pursuant to subsection (b)(3)(A)(viii). In 
        addition, the negotiated local levels of performance applicable 
        to a program year shall be revised to reflect the actual 
        economic conditions experienced and the characteristics of the 
        populations served in the local area during such program year 
        using the statistical adjustment model.

    (d) Performance Reports.--
            (1) In general.--Not later than 12 months after the date of 
        enactment of this Act, the Secretary of Labor, in conjunction 
        with the Secretary of Education, shall develop a template for 
        performance reports that shall be used by States, local boards, 
        and eligible providers of training services under section 122 to 
        report on outcomes achieved by the core programs. In developing 
        such templates, the Secretary of Labor, in conjunction with the 
        Secretary of Education, will take into account the need to 
        maximize the value of the templates for workers, jobseekers, 
        employers, local elected officials, State officials, Federal 
        policymakers, and other key stakeholders.
            (2) Contents of state performance reports.--The performance 
        report for a State shall include, subject to paragraph (5)(C)--
                    (A) information specifying the levels of performance 
                achieved with respect to the primary indicators of 
                performance described in subsection (b)(2)(A) for each 
                of the programs described in subsection (b)(3)(A)(ii) 
                and the State adjusted levels of performance with 
                respect to such indicators for each program;
                    (B) information specifying the levels of performance 
                achieved with respect to the primary indicators of 
                performance described in subsection (b)(2)(A) for each 
                of the programs described in subsection (b)(3)(A)(ii) 
                with respect to individuals with barriers to employment, 
                disaggregated by each subpopulation of such individuals, 
                and by race, ethnicity, sex, and age;

[[Page 128 STAT. 1477]]

                    (C) the total number of participants served by each 
                of the programs described in subsection (b)(3)(A)(ii);
                    (D) the number of participants who received career 
                and training services, respectively, during the most 
                recent program year and the 3 preceding program years, 
                and the amount of funds spent on each type of service;
                    (E) the number of participants who exited from 
                career and training services, respectively, during the 
                most recent program year and the 3 preceding program 
                years;
                    (F) the average cost per participant of those 
                participants who received career and training services, 
                respectively, during the most recent program year and 
                the 3 preceding program years;
                    (G) the percentage of participants in a program 
                authorized under this subtitle who received training 
                services and obtained unsubsidized employment in a field 
                related to the training received;
                    (H) the number of individuals with barriers to 
                employment served by each of the programs described in 
                subsection (b)(3)(A)(ii), disaggregated by each 
                subpopulation of such individuals;
                    (I) the number of participants who are enrolled in 
                more than 1 of the programs described in subsection 
                (b)(3)(A)(ii);
                    (J) the percentage of the State's annual allotment 
                under section 132(b) that the State spent on 
                administrative costs;
                    (K) in the case of a State in which local areas are 
                implementing pay-for-performance contract strategies for 
                programs--
                          (i) the performance of service providers 
                      entering into contracts for such strategies, 
                      measured against the levels of performance 
                      specified in the contracts for such strategies; 
                      and
                          (ii) an evaluation of the design of the 
                      programs and performance of the strategies, and, 
                      where possible, the level of satisfaction with the 
                      strategies among employers and participants 
                      benefitting from the strategies; and
                    (L) other information that facilitates comparisons 
                of programs with programs in other States.
            (3) Contents of local area performance reports.--The 
        performance reports for a local area shall include, subject to 
        paragraph (6)(C)--
                    (A) the information specified in subparagraphs (A) 
                through (L) of paragraph (2), for each of the programs 
                described in subclauses (I) through (III) of subsection 
                (b)(3)(A)(ii);
                    (B) the percentage of the local area's allocation 
                under sections 128(b) and 133(b) that the local area 
                spent on administrative costs; and
                    (C) other information that facilitates comparisons 
                of programs with programs in other local areas (or 
                planning regions, as appropriate).
            (4) Contents of eligible training providers performance 
        reports.--The performance report for an eligible provider of 
        training services under section 122 shall include, subject

[[Page 128 STAT. 1478]]

        to paragraph (6)(C), with respect to each program of study (or 
        the equivalent) of such provider--
                    (A) information specifying the levels of performance 
                achieved with respect to the primary indicators of 
                performance described in subclauses (I) through (IV) of 
                subsection (b)(2)(A)(i) with respect to all individuals 
                engaging in the program of study (or the equivalent);
                    (B) the total number of individuals exiting from the 
                program of study (or the equivalent);
                    (C) the total number of participants who received 
                training services through each of the adult program and 
                the dislocated worker program authorized under chapter 3 
                of subtitle B, disaggregated by the type of entity that 
                provided the training, during the most recent program 
                year and the 3 preceding program years;
                    (D) the total number of participants who exited from 
                training services, disaggregated by the type of entity 
                that provided the training, during the most recent 
                program year and the 3 preceding program years;
                    (E) the average cost per participant for the 
                participants who received training services, 
                disaggregated by the type of entity that provided the 
                training, during the most recent program year and the 3 
                preceding program years; and
                    (F) the number of individuals with barriers to 
                employment served by each of the adult program and the 
                dislocated worker program authorized under chapter 3 of 
                subtitle B, disaggregated by each subpopulation of such 
                individuals, and by race, ethnicity, sex, and age.
            (5) <<NOTE: Procedures.>>  Data validation.--In preparing 
        the State reports described in this subsection, each State shall 
        establish procedures, consistent with guidelines issued by the 
        Secretary, in conjunction with the Secretary of Education, to 
        ensure the information contained in the reports is valid and 
        reliable.
            (6) Publication.--
                    (A) State performance reports.--The Secretary of 
                Labor and the Secretary of Education shall annually make 
                available (including by electronic means), in an easily 
                understandable format, the performance reports for 
                States containing the information described in paragraph 
                (2).
                    (B) Local area and eligible training provider 
                performance reports.--The State shall make available 
                (including by electronic means), in an easily 
                understandable format, the performance reports for the 
                local areas containing the information described in 
                paragraph (3) and the performance reports for eligible 
                providers of training services containing the 
                information described in paragraph (4).
                    (C) Rules for reporting of data.--The disaggregation 
                of data under this subsection shall not be required when 
                the number of participants in a category is insufficient 
                to yield statistically reliable information or when the 
                results would reveal personally identifiable information 
                about an individual participant.
                    (D) Dissemination to congress.--The Secretary of 
                Labor and the Secretary of Education shall make 
                available (including by electronic means) a summary of 
                the reports, and the reports, required under this 
                subsection to the

[[Page 128 STAT. 1479]]

                Committee on Education and the Workforce of the House of 
                Representatives and the Committee on Health, Education, 
                Labor, and Pensions of the Senate. <<NOTE: Recommenda- 
                tions.>>  The Secretaries shall prepare and make 
                available with the reports a set of recommendations for 
                improvements in and adjustments to pay-for-performance 
                contract strategies used under subtitle B.

    (e) Evaluation of State Programs.--
            (1) In general.--Using funds authorized under a core program 
        and made available to carry out this section, the State, in 
        coordination with local boards in the State and the State 
        agencies responsible for the administration of the core 
        programs, shall conduct ongoing evaluations of activities 
        carried out in the State under such programs. The State, local 
        boards, and State agencies shall conduct the evaluations in 
        order to promote, establish, implement, and utilize methods for 
        continuously improving core program activities in order to 
        achieve high-level performance within, and high-level outcomes 
        from, the workforce development system. The State shall 
        coordinate the evaluations with the evaluations provided for by 
        the Secretary of Labor and the Secretary of Education under 
        section 169, section 242(c)(2)(D), and sections 12(a)(5), 14, 
        and 107 of the Rehabilitation Act of 1973 (29 U.S.C. 709(a)(5), 
        711, 727) (applied with respect to programs carried out under 
        title I of that Act (29 U.S.C. 720 et seq.)) and the 
        investigations provided for by the Secretary of Labor under 
        section 10(b) of the Wagner-Peyser Act (29 U.S.C. 49i(b)).
            (2) Design.--The evaluations conducted under this subsection 
        shall be designed in conjunction with the State board, State 
        agencies responsible for the administration of the core 
        programs, and local boards and shall include analysis of 
        customer feedback and outcome and process measures in the 
        statewide workforce development system. The evaluations shall 
        use designs that employ the most rigorous analytical and 
        statistical methods that are reasonably feasible, such as the 
        use of control groups.
            (3) <<NOTE: Public information.>>  Results.--The State shall 
        annually prepare, submit to the State board and local boards in 
        the State, and make available to the public (including by 
        electronic means), reports containing the results of evaluations 
        conducted under this subsection, to promote the efficiency and 
        effectiveness of the workforce development system.
            (4) Cooperation with federal evaluations.--The State shall, 
        to the extent practicable, cooperate in the conduct of 
        evaluations (including related research projects) provided for 
        by the Secretary of Labor or the Secretary of Education under 
        the provisions of Federal law identified in paragraph (1). Such 
        cooperation shall include the provision of data (in accordance 
        with appropriate privacy protections established by the 
        Secretary of Labor), the provision of responses to surveys, and 
        allowing site visits in a timely manner, for the Secretaries or 
        their agents.

    (f) Sanctions for State Failure To Meet State Performance 
Accountability Measures.--
            (1) States.--

[[Page 128 STAT. 1480]]

                    (A) Technical assistance.--If a State fails to meet 
                the State adjusted levels of performance relating to 
                indicators described in subsection (b)(2)(A) for a 
                program for any program year, the Secretary of Labor and 
                the Secretary of Education shall provide technical 
                assistance, including assistance in the development of a 
                performance improvement plan.
                    (B) <<NOTE: Determination.>>  Reduction in amount of 
                grant.--If such failure continues for a second 
                consecutive year, or (except in the case of exceptional 
                circumstances as determined by the Secretary of Labor or 
                the Secretary of Education, as appropriate) a State 
                fails to submit a report under subsection (d) for any 
                program year, the percentage of each amount that would 
                (in the absence of this paragraph) be reserved by the 
                Governor under section 128(a) for the immediately 
                succeeding program year shall be reduced by 5 percentage 
                points until such date as the Secretary of Labor or the 
                Secretary of Education, as appropriate, determines that 
                the State meets such State adjusted levels of 
                performance and has submitted such reports for the 
                appropriate program years.

    (g) Sanctions for Local Area Failure To Meet Local Performance 
Accountability Measures.--
            (1) Technical assistance.--If a local area fails to meet 
        local performance accountability measures established under 
        subsection (c) for the youth, adult, or dislocated worker 
        program authorized under chapter 2 or 3 of subtitle B for a 
        program described in subsection (d)(2)(A) for any program year, 
        the Governor, or upon request by the Governor, the Secretary of 
        Labor, shall provide technical assistance, which may include 
        assistance in the development of a performance improvement plan 
        or the development of a modified local plan (or regional plan).
            (2) Corrective actions.--
                    (A) <<NOTE: Reorganization plan.>>  In general.--If 
                such failure continues for a third consecutive year, the 
                Governor shall take corrective actions, which shall 
                include development of a reorganization plan through 
                which the Governor shall--
                          (i) require the appointment and certification 
                      of a new local board, consistent with the criteria 
                      established under section 107(b);
                          (ii) prohibit the use of eligible providers 
                      and one-stop partners identified as achieving a 
                      poor level of performance; or
                          (iii) take such other significant actions as 
                      the Governor determines are appropriate.
                    (B) <<NOTE: Deadlines.>>  Appeal by local area.--
                          (i) Appeal to governor.--The local board and 
                      chief elected official for 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.
                          (ii) Subsequent action.--The local board and 
                      chief elected official for a local area may, not 
                      later

[[Page 128 STAT. 1481]]

                      than 30 days after receiving a decision from the 
                      Governor pursuant to clause (i), appeal such 
                      decision to the Secretary of Labor. In such case, 
                      the Secretary shall make a final decision not 
                      later than 30 days after the receipt of the 
                      appeal.
                    (C) Effective date.--The decision made by the 
                Governor under subparagraph (B)(i) shall become 
                effective at the time the Governor issues the decision 
                pursuant to such clause. Such decision shall remain 
                effective unless the Secretary of Labor rescinds or 
                revises such plan pursuant to subparagraph (B)(ii).

    (h) Establishing Pay-for-Performance Contract Strategy Incentives.--
Using non-Federal funds, the Governor may establish incentives for local 
boards to implement pay-for-performance contract strategies for the 
delivery of training services described in section 134(c)(3) or 
activities described in section 129(c)(2) in the local areas served by 
the local boards.
    (i) Fiscal and Management Accountability Information Systems.--
            (1) <<NOTE: Guidelines. Consultation.>>  In general.--Using 
        funds authorized under a core program and made available to 
        carry out this chapter, the Governor, in coordination with the 
        State board, the State agencies administering the core programs, 
        local boards, and chief elected officials in the State, shall 
        establish and operate a fiscal and management accountability 
        information system based on guidelines established by the 
        Secretary of Labor and the Secretary of Education after 
        consultation with the Governors of States, chief elected 
        officials, and one-stop partners. Such guidelines shall promote 
        efficient collection and use of fiscal and management 
        information for reporting and monitoring the use of funds 
        authorized under the core programs and for preparing the annual 
        report described in subsection (d).
            (2) Wage records.--In measuring the progress of the State on 
        State and local performance accountability measures, a State 
        shall utilize quarterly wage records, consistent with State law. 
        The Secretary of Labor shall make arrangements, consistent with 
        State law, to ensure that the wage records of any State are 
        available to any other State to the extent that such wage 
        records are required by the State in carrying out the State plan 
        of the State or completing the annual report described in 
        subsection (d).
            (3) Confidentiality.--In carrying out the requirements of 
        this Act, the State shall comply with section 444 of the General 
        Education Provisions Act (20 U.S.C. 1232g).

        Subtitle B--Workforce Investment Activities and Providers

        CHAPTER 1--WORKFORCE INVESTMENT ACTIVITIES AND PROVIDERS

SEC. 121. <<NOTE: 29 USC 3151.>>  ESTABLISHMENT OF ONE-STOP 
                        DELIVERY SYSTEMS.

    (a) In General.--Consistent with an approved State plan, the local 
board for a local area, with the agreement of the chief elected official 
for the local area, shall--

[[Page 128 STAT. 1482]]

            (1) <<NOTE: Memorandum.>>  develop and enter into the 
        memorandum of understanding described in subsection (c) with 
        one-stop partners;
            (2) <<NOTE: Certification.>>  designate or certify one-stop 
        operators under subsection (d); and
            (3) conduct oversight with respect to the one-stop delivery 
        system in the local area.

    (b) One-stop Partners.--
            (1) Required partners.--
                    (A) Roles and responsibilities of one-stop 
                partners.--Each entity that carries out a program or 
                activities described in subparagraph (B) in a local area 
                shall--
                          (i) provide access through the one-stop 
                      delivery system to such program or activities 
                      carried out by the entity, including making the 
                      career services described in section 134(c)(2) 
                      that are applicable to the program or activities 
                      available at the one-stop centers (in addition to 
                      any other appropriate locations);
                          (ii) use a portion of the funds available for 
                      the program and activities to maintain the one-
                      stop delivery system, including payment of the 
                      infrastructure costs of one-stop centers in 
                      accordance with subsection (h);
                          (iii) <<NOTE: Memorandum.>>  enter into a 
                      local memorandum of understanding with the local 
                      board, relating to the operation of the one-stop 
                      system, that meets the requirements of subsection 
                      (c);
                          (iv) participate in the operation of the one-
                      stop system consistent with the terms of the 
                      memorandum of understanding, the requirements of 
                      this title, and the requirements of the Federal 
                      laws authorizing the program or activities; and
                          (v) provide representation on the State board 
                      to the extent provided under section 101.
                    (B) Programs and activities.--The programs and 
                activities referred to in subparagraph (A) consist of--
                          (i) programs authorized under this title;
                          (ii) programs authorized under the Wagner-
                      Peyser Act (29 U.S.C. 49 et seq.);
                          (iii) adult education and literacy activities 
                      authorized under title II;
                          (iv) programs authorized under title I of the 
                      Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.) 
                      (other than section 112 or part C of title I of 
                      such Act (29 U.S.C. 732, 741);
                          (v) activities authorized under title V of the 
                      Older Americans Act of 1965 (42 U.S.C. 3056 et 
                      seq.);
                          (vi) career and technical education programs 
                      at the postsecondary level authorized under the 
                      Carl D. Perkins Career and Technical Education Act 
                      of 2006 (20 U.S.C. 2301 et seq.);
                          (vii) activities authorized under chapter 2 of 
                      title II of the Trade Act of 1974 (19 U.S.C. 2271 
                      et seq.);
                          (viii) activities authorized under chapter 41 
                      of title 38, United States Code;
                          (ix) employment and training activities 
                      carried out under the Community Services Block 
                      Grant Act (42 U.S.C. 9901 et seq.);

[[Page 128 STAT. 1483]]

                          (x) employment and training activities carried 
                      out by the Department of Housing and Urban 
                      Development;
                          (xi) programs authorized under State 
                      unemployment compensation laws (in accordance with 
                      applicable Federal law);
                          (xii) programs authorized under section 212 of 
                      the Second Chance Act of 2007 (42 U.S.C. 17532); 
                      and
                          (xiii) programs authorized under part A of 
                      title IV of the Social Security Act (42 U.S.C. 601 
                      et seq.), subject to subparagraph (C).
                    (C) Determination by the governor.--
                          (i) In general.--An entity that carries out a 
                      program referred to in subparagraph (B)(xiii) 
                      shall be included in the one-stop partners for the 
                      local area, as a required partner, for purposes of 
                      this Act and the other core program provisions 
                      that are not part of this Act, unless the Governor 
                      provides the notification described in clause 
                      (ii).
                          (ii) Notification.--The notification referred 
                      to in clause (i) is a notification that--
                                    (I) is made in writing of a 
                                determination by the Governor not to 
                                include such entity in the one-stop 
                                partners described in clause (i); and
                                    (II) is provided to the Secretary of 
                                Labor (referred to in this subtitle, and 
                                subtitles C through E, as the 
                                ``Secretary'') and the Secretary of 
                                Health and Human Services.
            (2) Additional partners.--
                    (A) In general.--With the approval of the local 
                board and chief elected official, in addition to the 
                entities described in paragraph (1), other entities that 
                carry out workforce development programs described in 
                subparagraph (B) may be one-stop partners for the local 
                area and carry out the responsibilities described in 
                paragraph (1)(A).
                    (B) Programs.--The programs referred to in 
                subparagraph (A) may include--
                          (i) employment and training programs 
                      administered by the Social Security 
                      Administration, including the Ticket to Work and 
                      Self-Sufficiency Program established under section 
                      1148 of the Social Security Act (42 U.S.C. 1320b-
                      19);
                          (ii) employment and training programs carried 
                      out by the Small Business Administration;
                          (iii) programs authorized under section 
                      6(d)(4) of the Food and Nutrition Act of 2008 (7 
                      U.S.C. 2015(d)(4));
                          (iv) work programs authorized under section 
                      6(o) of the Food and Nutrition Act of 2008 (7 
                      U.S.C. 2015(o));
                          (v) programs carried out under section 112 of 
                      the Rehabilitation Act of 1973 (29 U.S.C. 732);
                          (vi) programs authorized under the National 
                      and Community Service Act of 1990 (42 U.S.C. 12501 
                      et seq.); and

[[Page 128 STAT. 1484]]

                          (vii) other appropriate Federal, State, or 
                      local programs, including employment, education, 
                      and training programs provided by public libraries 
                      or in the private sector.

    (c) Memorandum of Understanding.--
            (1) Development.--The local board, with the agreement of the 
        chief elected official, shall develop and enter into a 
        memorandum of understanding (between the local board and the 
        one-stop partners), consistent with paragraph (2), concerning 
        the operation of the one-stop delivery system in the local area.
            (2) Contents.--Each memorandum of understanding shall 
        contain--
                    (A) provisions describing--
                          (i) the services to be provided through the 
                      one-stop delivery system consistent with the 
                      requirements of this section, including the manner 
                      in which the services will be coordinated and 
                      delivered through such system;
                          (ii) how the costs of such services and the 
                      operating costs of such system will be funded, 
                      including--
                                    (I) funding through cash and in-kind 
                                contributions (fairly evaluated), which 
                                contributions may include funding from 
                                philanthropic organizations or other 
                                private entities, or through other 
                                alternative financing options, to 
                                provide a stable and equitable funding 
                                stream for ongoing one-stop delivery 
                                system operations; and
                                    (II) funding of the infrastructure 
                                costs of one-stop centers in accordance 
                                with subsection (h);
                          (iii) methods of referral of individuals 
                      between the one-stop operator and the one-stop 
                      partners for appropriate services and activities;
                          (iv) methods to ensure the needs of workers 
                      and youth, and individuals with barriers to 
                      employment, including individuals with 
                      disabilities, are addressed in the provision of 
                      necessary and appropriate access to services, 
                      including access to technology and materials, made 
                      available through the one-stop delivery system; 
                      and
                          (v) the duration of the memorandum of 
                      understanding and the procedures for amending the 
                      memorandum during the duration of the memorandum, 
                      and assurances that such memorandum shall be 
                      reviewed not less than once every 3-year period to 
                      ensure appropriate funding and delivery of 
                      services; and
                    (B) such other provisions, consistent with the 
                requirements of this title, as the parties to the 
                agreement determine to be appropriate.

    (d) One-stop Operators.--
            (1) Local designation and certification.--Consistent with 
        paragraphs (2) and (3), the local board, with the agreement of 
        the chief elected official, is authorized to designate or 
        certify one-stop operators and to terminate for cause the 
        eligibility of such operators.
            (2) Eligibility.--To be eligible to receive funds made 
        available under this subtitle to operate a one-stop center 
        referred

[[Page 128 STAT. 1485]]

        to in subsection (e), an entity (which may be a consortium of 
        entities)--
                    (A) shall be designated or certified as a one-stop 
                operator through a competitive process; and
                    (B) shall be an entity (public, private, or 
                nonprofit), or consortium of entities (including a 
                consortium of entities that, at a minimum, includes 3 or 
                more of the one-stop partners described in subsection 
                (b)(1)), of demonstrated effectiveness, located in the 
                local area, which may include--
                          (i) an institution of higher education;
                          (ii) an employment service State agency 
                      established under the Wagner-Peyser Act (29 U.S.C. 
                      49 et seq.), on behalf of the local office of the 
                      agency;
                          (iii) a community-based organization, 
                      nonprofit organization, or intermediary;
                          (iv) a private for-profit entity;
                          (v) a government agency; and
                          (vi) another interested organization or 
                      entity, which may include a local chamber of 
                      commerce or other business organization, or a 
                      labor organization.
            (3) Exception.--Elementary schools and secondary schools 
        shall not be eligible for designation or certification as one-
        stop operators, except that nontraditional public secondary 
        schools and area career and technical education schools may be 
        eligible for such designation or certification.
            (4) Additional requirements.--The State and local boards 
        shall ensure that in carrying out activities under this title, 
        one-stop operators--
                    (A) disclose any potential conflicts of interest 
                arising from the relationships of the operators with 
                particular training service providers or other service 
                providers;
                    (B) do not establish practices that create 
                disincentives to providing services to individuals with 
                barriers to employment who may require longer-term 
                services, such as intensive employment, training, and 
                education services; and
                    (C) <<NOTE: Compliance.>>  comply with Federal 
                regulations, and procurement policies, relating to the 
                calculation and use of profits.

    (e) Establishment of One-stop Delivery System.--
            (1) In general.--There shall be established in each local 
        area in a State that receives an allotment under section 132(b) 
        a one-stop delivery system, which shall--
                    (A) provide the career services described in section 
                134(c)(2);
                    (B) provide access to training services as described 
                in section 134(c)(3), including serving as the point of 
                access to training services for participants in 
                accordance with section 134(c)(3)(G);
                    (C) provide access to the employment and training 
                activities carried out under section 134(d), if any;
                    (D) provide access to programs and activities 
                carried out by one-stop partners described in subsection 
                (b); and
                    (E) provide access to the data, information, and 
                analysis described in section 15(a) of the Wagner-Peyser 
                Act (29 U.S.C. 49l-2(a)) and all job search, placement, 
                recruitment, and other labor exchange services 
                authorized under the Wagner-Peyser Act (29 U.S.C. 49 et 
                seq.).
            (2) One-stop delivery.--The one-stop delivery system--

[[Page 128 STAT. 1486]]

                    (A) at a minimum, shall make each of the programs, 
                services, and activities described in paragraph (1) 
                accessible at not less than 1 physical center in each 
                local area of the State; and
                    (B) may also make programs, services, and activities 
                described in paragraph (1) available--
                          (i) through a network of affiliated sites that 
                      can provide 1 or more of the programs, services, 
                      and activities to individuals; and
                          (ii) through a network of eligible one-stop 
                      partners--
                                    (I) in which each partner provides 1 
                                or more of the programs, services, and 
                                activities to such individuals and is 
                                accessible at an affiliated site that 
                                consists of a physical location or an 
                                electronically or technologically linked 
                                access point; and
                                    (II) that assures individuals that 
                                information on the availability of the 
                                career services will be available 
                                regardless of where the individuals 
                                initially enter the statewide workforce 
                                development system, including 
                                information made available through an 
                                access point described in subclause (I);
                    (C) may have specialized centers to address special 
                needs, such as the needs of dislocated workers, youth, 
                or key industry sectors or clusters; and
                    (D) as applicable and practicable, shall make 
                programs, services, and activities accessible to 
                individuals through electronic means in a manner that 
                improves efficiency, coordination, and quality in the 
                delivery of one-stop partner services.
            (3) Colocation of wagner-peyser services.--Consistent with 
        section 3(d) of the Wagner-Peyser Act (29 U.S.C. 49b(d)), and in 
        order to improve service delivery, avoid duplication of 
        services, and enhance coordination of services, including 
        location of staff to ensure access to services in underserved 
        areas, the employment service offices in each State shall be 
        colocated with one-stop centers established under this title.
            (4) Use of common one-stop delivery system identifier.--In 
        addition to using any State or locally developed identifier, 
        each one-stop delivery system shall include in the 
        identification of products, programs, activities, services, 
        facilities, and related property and materials, a common one-
        stop delivery system 
        identifier. <<NOTE: Consultation. Deadline.>>  The identifier 
        shall be developed by the Secretary, in consultation with heads 
        of other appropriate departments and agencies, and 
        representatives of State boards and local boards and of other 
        stakeholders in the one-stop delivery system, not later than the 
        beginning of the second full program year after the date of 
        enactment of this Act. Such common identifier may consist of a 
        logo, phrase, or other identifier that informs users of the one-
        stop delivery system that such products, programs, activities, 
        services, facilities, property, or materials are being provided 
        through such system. Nothing in this paragraph shall be 
        construed to prohibit one-stop partners, States, or local areas 
        from having additional identifiers.

    (f) Application to Certain Vocational Rehabilitation Programs.--

[[Page 128 STAT. 1487]]

            (1) Limitation.--Nothing in this section shall be construed 
        to apply to part C of title I of the Rehabilitation Act of 1973 
        (29 U.S.C. 741).
            (2) Client assistance.--Nothing in this Act shall be 
        construed to require that any entity carrying out a client 
        assistance program authorized under section 112 of the 
        Rehabilitation Act of 1973 (29 U.S.C. 732)--
                    (A) be included as a mandatory one-stop partner 
                under subsection (b)(1); or
                    (B) if the entity is included as an additional one-
                stop partner under subsection (b)(2)--
                          (i) violate the requirement of section 
                      112(c)(1)(A) of that Act (29 U.S.C. 732(c)(1)(A)) 
                      that the entity be independent of any agency that 
                      provides treatment, services, or rehabilitation to 
                      individuals under that Act; or
                          (ii) carry out any activity not authorized 
                      under section 112 of that Act (including 
                      appropriate Federal regulations).

    (g) Certification and Continuous Improvement of One-stop Centers.--
            
        (1) <<NOTE: Consultation. Criteria. Procedures. Assessment. Time 
        period.>>  In general.--In order to be eligible to receive 
        infrastructure funding described in subsection (h), the State 
        board, in consultation with chief elected officials and local 
        boards, shall establish objective criteria and procedures for 
        use by local boards in assessing at least once every 3 years the 
        effectiveness, physical and programmatic accessibility in 
        accordance with section 188, if applicable, and the Americans 
        with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.), and 
        continuous improvement of one-stop centers and the one-stop 
        delivery system, consistent with the requirements of section 
        101(d)(6).
            (2) Criteria.--The criteria and procedures developed under 
        this subsection shall include standards relating to service 
        coordination achieved by the one-stop delivery system with 
        respect to the programs administered by the one-stop partners at 
        the one-stop centers. Such criteria and procedures shall--
                    (A) <<NOTE: Consultation.>>  be developed in a 
                manner that is consistent with the guidelines, guidance, 
                and policies provided by the Governor and by the State 
                board, in consultation with the chief elected officials 
                and local boards, for such partners' participation under 
                subsections (h)(1) and (i); and
                    (B) include such factors relating to the 
                effectiveness, accessibility, and improvement of the 
                one-stop delivery system as the State board determines 
                to be appropriate, including at a minimum how well the 
                one-stop center--
                          (i) supports the achievement of the negotiated 
                      local levels of performance for the indicators of 
                      performance described in section 116(b)(2) for the 
                      local area;
                          (ii) integrates available services; and
                          (iii) meets the workforce development and 
                      employment needs of local employers and 
                      participants.
            (3) Local criteria.--Consistent with the criteria developed 
        under paragraph (1) by the State, a local board in the State may 
        develop additional criteria (or higher levels of service 
        coordination than required for the State-developed criteria) 
        relating to service coordination achieved by the one-stop

[[Page 128 STAT. 1488]]

        delivery system, for purposes of assessments described in 
        paragraph (1), in order to respond to labor market, economic, 
        and demographic, conditions and trends in the local area.
            (4) Effect of certification.--One-stop centers certified 
        under this subsection shall be eligible to receive the 
        infrastructure funding described in subsection (h).
            (5) Review and update.--The criteria and procedures 
        established under this subsection shall be reviewed and updated 
        by the State board or the local board, as the case may be, as 
        part of the biennial process for review and modification of 
        State and local plans described in sections 102(c)(2) and 
        108(a).

    (h) Funding of One-stop Infrastructure.--
            (1) In general.--
                    (A) Options for infrastructure funding.--
                          (i) Local options.--The local board, chief 
                      elected officials, and one-stop partners described 
                      in subsection (b)(1) in a local area may fund the 
                      costs of infrastructure of one-stop centers in the 
                      local area through--
                                    (I) methods agreed on by the local 
                                board, chief elected officials, and one-
                                stop partners (and described in the 
                                memorandum of understanding described in 
                                subsection (c)); or
                                    (II) if no consensus agreement on 
                                methods is reached under subclause (I), 
                                the State infrastructure funding 
                                mechanism described in paragraph (2).
                          (ii) Failure to reach consensus agreement on 
                      funding methods.--Beginning July <<NOTE: Effective 
                      date. Applicability.>>  1, 2016, if the local 
                      board, chief elected officials, and one-stop 
                      partners described in subsection (b)(1) in a local 
                      area fail to reach consensus agreement on methods 
                      of sufficiently funding the costs of 
                      infrastructure of one-stop centers for a program 
                      year, the State infrastructure funding mechanism 
                      described in paragraph (2) shall be applicable to 
                      such local area for that program year and for each 
                      subsequent program year for which those entities 
                      and individuals fail to reach such agreement.
                    (B) <<NOTE: Consultation.>>  Guidance for 
                infrastructure funding.--In addition to carrying out the 
                requirements relating to the State infrastructure 
                funding mechanism described in paragraph (2), the 
                Governor, after consultation with chief elected 
                officials, local boards, and the State board, and 
                consistent with the guidance and policies provided by 
                the State board under subparagraphs (B) and (C)(i) of 
                section 101(d)(7), shall provide, for the use of local 
                areas under subparagraph (A)(i)(I)--
                          (i) guidelines for State-administered one-stop 
                      partner programs, for determining such programs' 
                      contributions to a one-stop delivery system, based 
                      on such programs' proportionate use of such system 
                      consistent with chapter II of title 2, Code of 
                      Federal Regulations (or any corresponding similar 
                      regulation or ruling), including determining 
                      funding for the costs of infrastructure, which 
                      contributions shall be negotiated pursuant to the 
                      memorandum of understanding under subsection (c); 
                      and

[[Page 128 STAT. 1489]]

                          (ii) guidance to assist local boards, chief 
                      elected officials, and one-stop partners in local 
                      areas in determining equitable and stable methods 
                      of funding the costs of infrastructure of one-stop 
                      centers in such areas.
            (2) State one-stop infrastructure funding.--
                    (A) Definition.--In this paragraph, the term 
                ``covered portion'', used with respect to funding for a 
                fiscal year for a program described in subsection 
                (b)(1), means a portion determined under subparagraph 
                (C) of the Federal funds provided to a State (including 
                local areas within the State) under the Federal law 
                authorizing that program described in subsection (b)(1) 
                for the fiscal year (taking into account the 
                availability of funding for purposes related to 
                infrastructure from philanthropic organizations, private 
                entities, or other alternative financing options).
                    (B) Partner contributions.--Subject to subparagraph 
                (D), for local areas in a State that are not covered by 
                paragraph (1)(A)(i)(I), the covered portions of funding 
                for a fiscal year shall be provided to the Governor from 
                the programs described in subsection (b)(1), to assist 
                in paying the costs of infrastructure of one-stop 
                centers in those local areas of the State not adequately 
                funded under the option described in paragraph 
                (1)(A)(i)(I).
                    (C) Determination of governor.--
                          (i) <<NOTE: Consultation.>>  In general.--
                      Subject to clause (ii) and subparagraph (D), the 
                      Governor, after consultation with chief elected 
                      officials, local boards, and the State board, 
                      shall determine the portion of funds to be 
                      provided under subparagraph (B) by each one-stop 
                      partner from each program described in 
                      subparagraph (B). In making such determination for 
                      the purpose of determining funding contributions, 
                      for funding pursuant to clause (i)(II) or (ii) of 
                      paragraph (1)(A) by each partner, the Governor 
                      shall calculate amounts for the proportionate use 
                      of the one-stop centers in the State, consistent 
                      with chapter II of title 2, Code of Federal 
                      Regulations (or any corresponding similar 
                      regulation or ruling), taking into account the 
                      costs of administration of the one-stop delivery 
                      system for purposes not related to one-stop 
                      centers, for each partner. The Governor shall 
                      exclude from such determination of funds the 
                      amounts for proportionate use of one-stop centers 
                      attributable to the programs of one-stop partners 
                      for those local areas of the State where the costs 
                      of infrastructure of one-stop centers are funded 
                      under the option described in paragraph 
                      (1)(A)(i)(I). The Governor shall also take into 
                      account the statutory requirements for each 
                      partner program and the partner program's ability 
                      to fulfill such requirements.
                          (ii) <<NOTE: Consultation.>>  Special rule.--
                      In a State in which the State constitution or a 
                      State statute places policymaking authority that 
                      is independent of the authority of the Governor in 
                      an entity or official with respect to the funds 
                      provided for adult education and literacy 
                      activities authorized under title II, 
                      postsecondary career and technical education 
                      activities authorized under the Carl D. Perkins 
                      Career and Technical Education Act

[[Page 128 STAT. 1490]]

                      of 2006 (20 U.S.C. 2301 et seq.), or vocational 
                      rehabilitation services offered under a provision 
                      covered by section 3(13)(D), the determination 
                      described in clause (i) with respect to the 
                      programs authorized under that title, Act, or 
                      provision shall be made by the chief officer of 
                      the entity, or the official, with such authority 
                      in consultation with the Governor.
                    (D) Limitations.--
                          (i) Provision from administrative funds.--
                                    (I) In general.--Subject to 
                                subclause (II), the funds provided under 
                                this paragraph by each one-stop partner 
                                shall be provided only from funds 
                                available for the costs of 
                                administration under the program 
                                administered by such partner, and shall 
                                be subject to the program's limitations 
                                with respect to the portion of funds 
                                under such program that may be used for 
                                administration.
                                    (II) Exceptions.--Nothing in this 
                                clause shall be construed to apply to 
                                the programs carried out under this 
                                title, or under title V of the Older 
                                Americans Act of 1965 (42 U.S.C. 3056 et 
                                seq.).
                          (ii) <<NOTE: Applicability.>>  Cap on required 
                      contributions.--For local areas in a State that 
                      are not covered by paragraph (1)(A)(i)(I), the 
                      following rules shall apply:
                                    (I) Wia formula programs and 
                                employment service.--The portion of 
                                funds required to be contributed under 
                                this paragraph from a program authorized 
                                under chapter 2 or 3, or the Wagner-
                                Peyser Act (29 U.S.C. 49 et seq.) shall 
                                not exceed 3 percent of the amount of 
                                Federal funds provided to carry out that 
                                program in the State for a fiscal year.
                                    (II) Other one-stop partners.--The 
                                portion of funds required to be 
                                contributed under this paragraph from a 
                                program described in subsection (b)(1) 
                                other than the programs described in 
                                subclause (I) shall not exceed 1.5 
                                percent of the amount of Federal funds 
                                provided to carry out that program in 
                                the State for a fiscal year.
                                    (III) Vocational rehabilitation.--
                                Notwithstanding subclauses (I) and (II), 
                                an entity administering a program 
                                described in subsection (b)(1)(B)(iv) 
                                shall not be required to provide from 
                                that program, under this paragraph, a 
                                portion that exceeds--
                                            (aa) 0.75 percent of the 
                                        amount of Federal funds provided 
                                        to carry out such program in the 
                                        State for the second full 
                                        program year that begins after 
                                        the date of enactment of this 
                                        Act;
                                            (bb) 1.0 percent of the 
                                        amount provided to carry out 
                                        such program in the State for 
                                        the third full program year that 
                                        begins after such date;
                                            (cc) 1.25 percent of the 
                                        amount provided to carry out 
                                        such program in the State for

[[Page 128 STAT. 1491]]

                                        the fourth full program year 
                                        that begins after such date; and
                                            (dd) 1.5 percent of the 
                                        amount provided to carry out 
                                        such program in the State for 
                                        the fifth and each succeeding 
                                        full program year that begins 
                                        after such date.
                          (iii) Federal direct spending programs.--For 
                      local areas in a State that are not covered by 
                      paragraph (1)(A)(i)(I), an entity administering a 
                      program funded with direct spending as defined in 
                      section 250(c)(8) of the Balanced Budget and 
                      Emergency Deficit Control Act of 1985, as in 
                      effect on February 15, 2014 (2 U.S.C. 900(c)(8)) 
                      shall not be required to provide, for purposes of 
                      this paragraph, an amount in excess of the amount 
                      determined under subparagraph (C)(i) to be 
                      equivalent to the cost of the proportionate use of 
                      the one-stop centers for the one-stop partner for 
                      such program in the State.
                          (iv) Native american programs.--One-stop 
                      partners for Native American programs established 
                      under section 166 shall not be subject to the 
                      provisions of this subsection (other than this 
                      clause) or subsection (i). For purposes of 
                      subsection (c)(2)(A)(ii)(II), the method for 
                      determining the appropriate portion of funds to be 
                      provided by such partners to pay for the costs of 
                      infrastructure of a one-stop center shall be 
                      determined as part of the development of the 
                      memorandum of understanding under subsection (c) 
                      for the one-stop center and shall be stated in the 
                      memorandum.
                    (E) Appeal by one-stop partners.--The Governor shall 
                establish a process, described under section 
                102(b)(2)(D)(i)(IV), for a one-stop partner 
                administering a program described in subsection (b)(1) 
                to appeal a determination regarding the portion of funds 
                to be provided under this paragraph. Such a 
                determination may be appealed under the process on the 
                basis that such determination is inconsistent with the 
                requirements of this paragraph. Such process shall 
                ensure prompt resolution of the appeal in order to 
                ensure the funds are distributed in a timely manner, 
                consistent with the requirements of section 182(e).
            (3) Allocation by governor.--
                    (A) In general.--From the funds provided under 
                paragraph (1), the Governor shall allocate the funds to 
                local areas described in subparagraph (B) in accordance 
                with the formula established under subparagraph (B) for 
                the purposes of assisting in paying the costs of 
                infrastructure of one-stop centers.
                    (B) Allocation formula.--The State board shall 
                develop a formula to be used by the Governor to allocate 
                the funds provided under paragraph (1) to local areas 
                not funding costs of infrastructure under the option 
                described in paragraph (1)(A)(i)(I). The formula shall 
                be based on factors including the number of one-stop 
                centers in a local area, the population served by such 
                centers, the services provided by such centers, and 
                other factors relating to

[[Page 128 STAT. 1492]]

                the performance of such centers that the State board 
                determines are appropriate.
            (4) <<NOTE: Definition.>>  Costs of infrastructure.--In this 
        subsection, the term ``costs of infrastructure'', used with 
        respect to a one-stop center, means the nonpersonnel costs that 
        are necessary for the general operation of the one-stop center, 
        including the rental costs of the facilities, the costs of 
        utilities and maintenance, equipment (including assessment-
        related products and assistive technology for individuals with 
        disabilities), and technology to facilitate access to the one-
        stop center, including the center's planning and outreach 
        activities.

    (i) Other Funds.--
            (1) In general.--Subject to the memorandum of understanding 
        described in subsection (c) for the one-stop delivery system 
        involved, in addition to the funds provided to carry out 
        subsection (h), a portion of funds made available under Federal 
        law authorizing the programs described in subsection (b) and 
        administered by one-stop partners, or the noncash resources 
        available under such programs, shall be used to pay the 
        additional costs relating to the operation of the one-stop 
        delivery system that are not paid from the funds provided under 
        subsection (h), as determined in accordance with paragraph (3), 
        to the extent not inconsistent with the Federal law involved. 
        Such costs shall include the costs of the provision of career 
        services described in section 134(c)(2) applicable to each 
        program and may include common costs that are not paid from the 
        funds provided under subsection (h).
            (2) Shared services.--The costs described under paragraph 
        (1) may include costs of services that are authorized for and 
        may be commonly provided through the one-stop partner programs 
        to any individual, such as initial intake, assessment of needs, 
        appraisal of basic skills, identification of appropriate 
        services to meet such needs, referrals to other one-stop 
        partners, and other similar services.
            (3) Determination and guidance.--The method for determining 
        the appropriate portion of funds and noncash resources to be 
        provided by the one-stop partner for each program under 
        paragraph (1) for a one-stop center shall be determined as part 
        of the development of the memorandum of understanding under 
        subsection (c) for the one-stop center and shall be stated in 
        the memorandum. The State board shall provide guidance to 
        facilitate the determination, for purposes of the memorandum of 
        understanding, of an appropriate allocation of the funds and 
        noncash resources in local areas, consistent with the 
        requirements of section 101(d)(6)(C).
SEC. 122. <<NOTE: 29 USC 3152.>>  IDENTIFICATION OF ELIGIBLE 
                        PROVIDERS OF TRAINING SERVICES.

    (a) Eligibility.--
            
        (1) <<NOTE: Consultation. Criteria. Requirements. Procedures.>>  
        In general.--Except as provided in subsection (h), the Governor, 
        after consultation with the State board, shall establish 
        criteria, information requirements, and procedures regarding the 
        eligibility of providers of training services to receive funds 
        provided under section 133(b) for the provision of training 
        services in local areas in the State.

[[Page 128 STAT. 1493]]

            (2) Providers.--Subject to the provisions of this section, 
        to be eligible to receive those funds for the provision of 
        training services, the provider shall be--
                    (A) an institution of higher education that provides 
                a program that leads to a recognized postsecondary 
                credential;
                    (B) an entity that carries out programs registered 
                under the Act of August 16, 1937 (commonly known as the 
                ``National Apprenticeship Act''; 50 Stat. 664, chapter 
                663; 29 U.S.C. 50 et seq.); or
                    (C) another public or private provider of a program 
                of training services, which may include joint labor-
                management organizations, and eligible providers of 
                adult education and literacy activities under title II 
                if such activities are provided in combination with 
                occupational skills training.
            (3) <<NOTE: Compliance.>>  Inclusion in list of eligible 
        providers.--A provider described in subparagraph (A) or (C) of 
        paragraph (2) shall comply with the criteria, information 
        requirements, and procedures established under this section to 
        be included on the list of eligible providers of training 
        services described in subsection (d). A provider described in 
        paragraph (2)(B) shall be included and maintained on the list of 
        eligible providers of training services described in subsection 
        (d) for so long as the corresponding program of the provider 
        remains registered as described in paragraph (2)(B).

    (b) Criteria and Information Requirements.--
            (1) State criteria.--In establishing criteria pursuant to 
        subsection (a), the Governor shall take into account each of the 
        following:
                    (A) The performance of providers of training 
                services with respect to--
                          (i) the performance accountability measures 
                      and other matters for which information is 
                      required under paragraph (2); and
                          (ii) other appropriate measures of performance 
                      outcomes determined by the Governor for those 
                      participants receiving training services under 
                      this subtitle (taking into consideration the 
                      characteristics of the population served and 
                      relevant economic conditions), and the outcomes of 
                      the program through which those training services 
                      were provided for students in general with respect 
                      to employment and earnings as defined under 
                      section 116(b)(2).
                    (B) The need to ensure access to training services 
                throughout the State, including in rural areas, and 
                through the use of technology.
                    (C) Information reported to State agencies with 
                respect to Federal and State programs involving training 
                services (other than the program carried out under this 
                subtitle), including one-stop partner programs.
                    (D) The degree to which the training programs of 
                such providers relate to in-demand industry sectors and 
                occupations in the State.
                    (E) The requirements for State licensing of 
                providers of training services, and the licensing status 
                of providers of training services if applicable.

[[Page 128 STAT. 1494]]

                    (F) Ways in which the criteria can encourage, to the 
                extent practicable, the providers to use industry-
                recognized certificates or certifications.
                    (G) The ability of the providers to offer programs 
                that lead to recognized postsecondary credentials.
                    (H) The quality of a program of training services, 
                including a program of training services that leads to a 
                recognized postsecondary credential.
                    (I) The ability of the providers to provide training 
                services to individuals who are employed and individuals 
                with barriers to employment.
                    (J) Such other factors as the Governor determines 
                are appropriate to ensure--
                          (i) the accountability of the providers;
                          (ii) that the one-stop centers in the State 
                      will ensure that such providers meet the needs of 
                      local employers and participants;
                          (iii) the informed choice of participants 
                      among training services providers; and
                          (iv) that the collection of information 
                      required to demonstrate compliance with the 
                      criteria is not unduly burdensome or costly to 
                      providers.
            (2) State information requirements.--The information 
        requirements established by the Governor shall require that a 
        provider of training services submit appropriate, accurate, and 
        timely information to the State, to enable the State to carry 
        out subsection (d), with respect to participants receiving 
        training services under this subtitle in the applicable program, 
        including--
                    (A) information on the performance of the provider 
                with respect to the performance accountability measures 
                described in section 116 for such participants (taking 
                into consideration the characteristics of the population 
                served and relevant economic conditions), and 
                information specifying the percentage of such 
                participants who entered unsubsidized employment in an 
                occupation related to the program, to the extent 
                practicable;
                    (B) information on recognized postsecondary 
                credentials received by such participants;
                    (C) information on cost of attendance, including 
                costs of tuition and fees, for participants in the 
                program;
                    (D) information on the program completion rate for 
                such participants; and
                    (E) information on the criteria described in 
                paragraph (1).
            (3) Local criteria and information requirements.--A local 
        board in the State may establish criteria and information 
        requirements in addition to the criteria and information 
        requirements established by the Governor, or may require higher 
        levels of performance than required for the criteria established 
        by the Governor, for purposes of determining the eligibility of 
        providers of training services to receive funds described in 
        subsection (a) for the provision of training services in the 
        local area involved.
            (4) Criteria and information requirements to establish 
        initial eligibility.--

[[Page 128 STAT. 1495]]

                    (A) Purpose.--The purpose of this paragraph is to 
                enable the providers of programs carried out under 
                chapter 3 to offer the highest quality training services 
                and be responsive to in-demand and emerging industries 
                by providing training services for those industries.
                    (B) Initial eligibility.--Providers may seek initial 
                eligibility under this paragraph as providers of 
                training services and may receive that initial 
                eligibility for only 1 fiscal year for a particular 
                program. The criteria and information requirements 
                established by the Governor under this paragraph shall 
                require that a provider who has not previously been an 
                eligible provider of training services under this 
                section (or section 122 of the Workforce Investment Act 
                of 1998, as in effect on the day before the date of 
                enactment of this Act) provide the information described 
                in subparagraph (C).
                    (C) Information.--The provider shall provide 
                verifiable program-specific performance information 
                based on criteria established by the State as described 
                in subparagraph (D) that supports the provider's ability 
                to serve participants under this subtitle.
                    (D) Criteria.--The criteria described in 
                subparagraph (C) shall include at least--
                          (i) a factor related to indicators described 
                      in section 116;
                          (ii) a factor concerning whether the provider 
                      is in a partnership with business;
                          (iii) other factors that indicate high-quality 
                      training services, including the factor described 
                      in paragraph (1)(H); and
                          (iv) a factor concerning alignment of the 
                      training services with in-demand industry sectors 
                      and occupations, to the extent practicable.
                    (E) Provision.--The provider shall provide the 
                information described in subparagraph (C) to the 
                Governor and the local board in a manner that will 
                permit the Governor and the local board to make a 
                decision on inclusion of the provider on the list of 
                eligible providers described in subsection (d).
                    (F) Limitation.--A provider that receives initial 
                eligibility under this paragraph for a program shall be 
                subject to the requirements under subsection (c) for 
                that program after such initial eligibility expires.

    (c) Procedures.--
            (1) Application procedures.--The procedures established 
        under subsection (a) shall identify the application process for 
        a provider of training services to become eligible to receive 
        funds provided under section 133(b) for the provision of 
        training services. The procedures shall identify the respective 
        roles of the State and local areas in receiving and reviewing 
        the applications and in making determinations of such 
        eligibility based on the criteria, information, and procedures 
        established under this section. The procedures shall also 
        establish a process for a provider of training services to 
        appeal a denial or termination of eligibility under this section 
        that includes an opportunity for a hearing and prescribes 
        appropriate time limits to ensure prompt resolution of the 
        appeal.

[[Page 128 STAT. 1496]]

            (2) Renewal procedures.--The procedures established by the 
        Governor shall also provide for biennial review and renewal of 
        eligibility under this section for providers of training 
        services.

    (d) List and Information to Assist Participants in Choosing 
Providers.--
            (1) In general.--In order to facilitate and assist 
        participants in choosing employment and training activities and 
        in choosing providers of training services, the Governor shall 
        ensure that an appropriate list of providers determined to be 
        eligible under this section to offer a program in the State 
        (and, as appropriate, in a local area), accompanied by 
        information identifying the recognized postsecondary credential 
        offered by the provider and other appropriate information, is 
        prepared. The list shall be provided to the local boards in the 
        State, and made available to such participants and to members of 
        the public through the one-stop delivery system in the State.
            (2) Accompanying information.--The accompanying information 
        shall--
                    (A) with respect to providers described in 
                subparagraphs (A) and (C) of subsection (a)(2), consist 
                of information provided by such providers, disaggregated 
                by local areas served, as applicable, in accordance with 
                subsection (b);
                    (B) with respect to providers described in 
                subsection (b)(4), consist of information provided by 
                such providers in accordance with subsection (b)(4); and
                    (C) such other information as the Governor 
                determines to be appropriate.
            (3) <<NOTE: Public information.>>  Availability.--The list 
        and the accompanying information shall be made available to such 
        participants and to members of the public through the one-stop 
        delivery system in the State, in a manner that does not reveal 
        personally identifiable information about an individual 
        participant.
            (4) Limitation.--In carrying out the requirements of this 
        subsection, no personally identifiable information regarding a 
        student, including a Social Security number, student 
        identification number, or other identifier, may be disclosed 
        without the prior written consent of the parent or student in 
        compliance with section 444 of the General Education Provisions 
        Act (20 U.S.C. 1232g).

    (e) <<NOTE: Recommenda- tions.>>  Opportunity to Submit Comments.--
In establishing, under this section, criteria, information requirements, 
procedures, and the list of eligible providers described in subsection 
(d), the Governor shall provide an opportunity for interested members of 
the public to make recommendations and submit comments regarding such 
criteria, information requirements, procedures, and list.

    (f) Enforcement.--
            (1) <<NOTE: Determination. Termination. Time period.>>  In 
        general.--The procedures established under this section shall 
        provide the following:
                    (A) Intentionally supplying inaccurate 
                information.--Upon a determination, by an individual or 
                entity specified in the procedures, that a provider of 
                training services, or individual providing information 
                on behalf of the provider, violated this section (or 
                section 122 of the Workforce Investment Act of 1998, as 
                in effect on the

[[Page 128 STAT. 1497]]

                day before the date of enactment of this Act) by 
                intentionally supplying inaccurate information under 
                this section, the eligibility of such provider to 
                receive funds under chapter 3 shall be terminated for a 
                period of time that is not less than 2 years.
                    (B) Substantial violations.--Upon a determination, 
                by an individual or entity specified in the procedures, 
                that a provider of training services substantially 
                violated any requirement under this title (or title I of 
                the Workforce Investment Act of 1998, as in effect on 
                the day before such date of enactment), the eligibility 
                of such provider to receive funds under chapter 3 for 
                the program involved shall be terminated for a period of 
                not less than 2 years.
                    (C) Repayment.--A provider of training services 
                whose eligibility is terminated under subparagraph (A) 
                or (B) shall be liable for the repayment of funds 
                received under chapter 5 of subtitle B of title I of the 
                Workforce Investment Act of 1998, as in effect on the 
                day before such date of enactment, or chapter 3 of this 
                subtitle during a period of violation described in such 
                subparagraph.
            (2) Construction.--Paragraph (1) shall be construed to 
        provide remedies and penalties that supplement, but shall not 
        supplant, civil and criminal remedies and penalties specified in 
        other provisions of law.

    (g) Agreements With Other States.--States may enter into agreements, 
on a reciprocal basis, to permit eligible providers of training services 
to accept individual training accounts provided in another State.
    (h) On-the-job Training, Customized Training, Incumbent Worker 
Training, and Other Training Exceptions.--
            (1) In general.--Providers of on-the-job training, 
        customized training, incumbent worker training, internships, and 
        paid or unpaid work experience opportunities, or transitional 
        employment shall not be subject to the requirements of 
        subsections (a) through (f).
            (2) Collection and dissemination of information.--A one-stop 
        operator in a local area shall collect such performance 
        information from providers of on-the-job training, customized 
        training, incumbent worker training, internships, paid or unpaid 
        work experience opportunities, and transitional employment as 
        the Governor may require, and use the information to determine 
        whether the providers meet such performance criteria as the 
        Governor may require. The one-stop operator shall disseminate 
        information identifying such providers that meet the criteria as 
        eligible providers, and the performance information, through the 
        one-stop delivery system. Providers determined to meet the 
        criteria shall be considered to be identified as eligible 
        providers of training services.

    (i) <<NOTE: Deadline. Termination date.>>  Transition Period for 
Implementation.--The Governor and local boards shall implement the 
requirements of this section not later than 12 months after the date of 
enactment of this Act. In order to facilitate early implementation of 
this section, the Governor may establish transition procedures under 
which providers eligible to provide training services under chapter 5 of 
subtitle B of title I of the Workforce Investment Act of 1998, as such 
chapter was in effect on the day before the date of enactment of this 
Act, may continue to be eligible to provide such services

[[Page 128 STAT. 1498]]

until December 31, 2015, or until such earlier date as the Governor 
determines to be appropriate.
SEC. 123. <<NOTE: 29 USC 3153.>>  ELIGIBLE PROVIDERS OF YOUTH 
                        WORKFORCE INVESTMENT ACTIVITIES.

    (a) <<NOTE: Grants. Contracts.>>  In General.--From the funds 
allocated under section 128(b) to a local area, the local board for such 
area shall award grants or contracts on a competitive basis to providers 
of youth workforce investment activities identified based on the 
criteria in the State plan (including such quality criteria as the 
Governor shall establish for a training program that leads to a 
recognized postsecondary credential), and taking into consideration the 
ability of the providers to meet performance accountability measures 
based on primary indicators of performance for the youth program as 
described in section 116(b)(2)(A)(ii), as described in section 
102(b)(2)(D)(i)(V), and shall conduct oversight with respect to such 
providers.

    (b) <<NOTE: Determination.>>  Exceptions.--A local board may award 
grants or contracts on a sole-source basis if such board determines 
there is an insufficient number of eligible providers of youth workforce 
investment activities in the local area involved (such as a rural area) 
for grants and contracts to be awarded on a competitive basis under 
subsection (a).

            CHAPTER 2--YOUTH WORKFORCE INVESTMENT ACTIVITIES

SEC. 126. <<NOTE: Grants. 29 USC 3161.>>  GENERAL AUTHORIZATION.

    The Secretary shall make an allotment under section 127(b)(1)(C) to 
each State that meets the requirements of section 102 or 103 and a grant 
under section 127(b)(1)(B) to each outlying area that complies with the 
requirements of this title, to assist the State or outlying area, and to 
enable the State or outlying area to assist local areas, for the purpose 
of providing workforce investment activities for eligible youth in the 
State or outlying area and in the local areas.
SEC. 127. <<NOTE: 29 USC 3162.>>  STATE ALLOTMENTS.

    (a) In General.--The Secretary shall--
            (1) for each fiscal year for which the amount appropriated 
        under section 136(a) exceeds $925,000,000, reserve 4 percent of 
        the excess amount to provide youth workforce investment 
        activities under section 167 (relating to migrant and seasonal 
        farmworkers); and
            (2) use the remainder of the amount appropriated under 
        section 136(a) for a fiscal year to make allotments and grants 
        in accordance with subsection (b).

    (b) Allotment Among States.--
            (1) Youth workforce investment activities.--
                    (A) Native americans.--From the amount appropriated 
                under section 136(a) for a fiscal year that is not 
                reserved under subsection (a)(1), the Secretary shall 
                reserve not more than 1\1/2\ percent of such amount to 
                provide youth workforce investment activities under 
                section 166 (relating to Native Americans).
                    (B) Outlying areas.--
                          (i) In general.--From the amount appropriated 
                      under section 136(a) for each fiscal year that is 
                      not reserved under subsection (a)(1) and 
                      subparagraph (A),

[[Page 128 STAT. 1499]]

                      the Secretary shall reserve not more than \1/4\ of 
                      1 percent of such amount to provide assistance to 
                      the outlying areas to carry out youth workforce 
                      investment activities and statewide workforce 
                      investment activities.
                          (ii) Limitation for outlying areas.--
                                    (I) Competitive grants.--The 
                                Secretary shall use funds reserved under 
                                clause (i) to award grants to outlying 
                                areas to carry out youth workforce 
                                investment activities and statewide 
                                workforce investment activities.
                                    (II) Award basis.--The Secretary 
                                shall award grants pursuant to subclause 
                                (I) on a competitive basis and pursuant 
                                to the recommendations of experts in the 
                                field of employment and training, 
                                working through the Pacific Region 
                                Educational Laboratory in Honolulu, 
                                Hawaii.
                                    (III) Administrative costs.--The 
                                Secretary may provide not more than 5 
                                percent of the funds made available for 
                                grants under subclause (I) to pay the 
                                administrative costs of the Pacific 
                                Region Educational Laboratory in 
                                Honolulu, Hawaii, regarding activities 
                                assisted under this clause.
                          (iii) Additional requirement.--The provisions 
                      of section 501 of Public Law 95-134 (48 U.S.C. 
                      1469a), permitting the consolidation of grants by 
                      the outlying areas, shall not apply to assistance 
                      provided to those areas, including Palau, under 
                      this subparagraph.
                    (C) States.--
                          (i) In general.--From the remainder of the 
                      amount appropriated under section 136(a) for a 
                      fiscal year that exists after the Secretary 
                      determines the amounts to be reserved under 
                      subsection (a)(1) and subparagraphs (A) and (B), 
                      the Secretary shall make allotments to the States 
                      in accordance with clause (ii) for youth workforce 
                      investment activities and statewide workforce 
                      investment activities.
                          (ii) Formula.--Subject to clauses (iii) and 
                      (iv), of the remainder--
                                    (I) 33\1/3\ percent shall be 
                                allotted on the basis of the relative 
                                number of unemployed individuals in 
                                areas of substantial unemployment in 
                                each State, compared to the total number 
                                of unemployed individuals in areas of 
                                substantial unemployment in all States;
                                    (II) 33\1/3\ percent shall be 
                                allotted on the basis of the relative 
                                excess number of unemployed individuals 
                                in each State, compared to the total 
                                excess number of unemployed individuals 
                                in all States; and
                                    (III) 33\1/3\ percent shall be 
                                allotted on the basis of the relative 
                                number of disadvantaged youth in each 
                                State, compared to the total number of 
                                disadvantaged youth in all States, 
                                except as described in clause (iii).
                          (iii) Calculation.--In determining an 
                      allotment under clause (ii)(III) for any State in 
                      which there is

[[Page 128 STAT. 1500]]

                      an area that was designated as a local area as 
                      described in section 107(c)(1)(C), the allotment 
                      shall be based on the higher of--
                                    (I) the number of individuals who 
                                are age 16 through 21 in families with 
                                an income below the low-income level in 
                                such area; or
                                    (II) the number of disadvantaged 
                                youth in such area.
                          (iv) Minimum and maximum percentages and 
                      minimum allotments.--In making allotments under 
                      this subparagraph, the Secretary shall ensure the 
                      following:
                                    (I) Minimum percentage and 
                                allotment.--Subject to subclause (IV), 
                                the Secretary shall ensure that no State 
                                shall receive an allotment for a fiscal 
                                year that is less than the greater of--
                                            (aa) an amount based on 90 
                                        percent of the allotment 
                                        percentage of the State for the 
                                        preceding fiscal year; or
                                            (bb) 100 percent of the 
                                        allotments of the State under 
                                        section 127(b)(1)(C) of the 
                                        Workforce Investment Act of 1998 
                                        (as in effect on the day before 
                                        the date of enactment of this 
                                        Act) for fiscal year 2014.
                                    (II) Small state minimum 
                                allotment.--Subject to subclauses (I), 
                                (III), and (IV), the Secretary shall 
                                ensure that no State shall receive an 
                                allotment under this subparagraph that 
                                is less than the total of--
                                            (aa) \3/10\ of 1 percent of 
                                        $1,000,000,000 of the remainder 
                                        described in clause (i) for the 
                                        fiscal year; and
                                            (bb) if the remainder 
                                        described in clause (i) for the 
                                        fiscal year exceeds 
                                        $1,000,000,000, \2/5\ of 1 
                                        percent of the excess.
                                    (III) Maximum percentage.--Subject 
                                to subclause (I), the Secretary shall 
                                ensure that no State shall receive an 
                                allotment percentage for a fiscal year 
                                that is more than 130 percent of the 
                                allotment percentage of the State for 
                                the preceding fiscal year.
                                    (IV) Minimum funding.--In any fiscal 
                                year in which the remainder described in 
                                clause (i) does not exceed 
                                $1,000,000,000, the minimum allotments 
                                under subclauses (I) and (II) shall be 
                                calculated by the methodology specified 
                                in section 127(b)(1)(C)(iv)(IV) of the 
                                Workforce Investment Act of 1998 (as in 
                                effect on the day before the date of 
                                enactment of this Act).
            (2) Definitions.--For the purpose of the formula specified 
        in paragraph (1)(C):
                    (A) Allotment percentage.--The term ``allotment 
                percentage'', used with respect to fiscal year 2015 or a 
                subsequent fiscal year, means a percentage of the 
                remainder described in paragraph (1)(C)(i) that is 
                received through an allotment made under paragraph 
                (1)(C) for the fiscal year. The term, used with respect 
                to fiscal year

[[Page 128 STAT. 1501]]

                2014, means the percentage of the amount allotted to 
                States under section 127(b)(1)(C) of the Workforce 
                Investment Act of 1998 (as in effect on the day before 
                the date of enactment of this Act) that is received 
                under such section by the State involved for fiscal year 
                2014.
                    (B) Area of substantial unemployment.--The term 
                ``area of substantial unemployment'' means any area that 
                is of sufficient size and scope to sustain a program of 
                workforce investment activities carried out under this 
                subtitle and that has an average rate of unemployment of 
                at least 6.5 percent for the most recent 12 months, as 
                determined by the Secretary. For purposes of this 
                subparagraph, determinations of areas of substantial 
                unemployment shall be made once each fiscal year.
                    (C) Disadvantaged youth.--Subject to paragraph (3), 
                the term ``disadvantaged youth'' means an individual who 
                is age 16 through 21 who received an income, or is a 
                member of a family that received a total family income, 
                that, in relation to family size, does not exceed the 
                higher of--
                          (i) the poverty line; or
                          (ii) 70 percent of the lower living standard 
                      income level.
                    (D) Excess number.--The term ``excess number'' 
                means, used with respect to the excess number of 
                unemployed individuals within a State, the higher of--
                          (i) the number that represents the number of 
                      unemployed individuals in excess of 4.5 percent of 
                      the civilian labor force in the State; or
                          (ii) the number that represents the number of 
                      unemployed individuals in excess of 4.5 percent of 
                      the civilian labor force in areas of substantial 
                      unemployment in such State.
                    (E) Low-income level.--The term ``low-income level'' 
                means $7,000 with respect to income in 1969, and for any 
                later year means that amount that bears the same 
                relationship to $7,000 as the Consumer Price Index for 
                that year bears to the Consumer Price Index for 1969, 
                rounded to the nearest $1,000.
            (3) Special rule.--For the purpose of the formula specified 
        in paragraph (1)(C), the Secretary shall, as appropriate and to 
        the extent practicable, exclude college students and members of 
        the Armed Forces from the determination of the number of 
        disadvantaged youth.

    (c) Reallotment.--
            (1) In general.--The Secretary shall, in accordance with 
        this subsection, reallot to eligible States amounts that are 
        made available to States from allotments made under this section 
        or a corresponding provision of the Workforce Investment Act of 
        1998 for youth workforce investment activities and statewide 
        workforce investment activities (referred to individually in 
        this subsection as a ``State allotment'') and that are available 
        for reallotment.
            (2) Amount.--The amount available for reallotment for a 
        program year is equal to the amount by which the unobligated 
        balance of the State allotment, at the end of the program year 
        prior to the program year for which the determination

[[Page 128 STAT. 1502]]

        under this paragraph is made, exceeds 20 percent of such 
        allotment for the prior program year.
            (3) Reallotment.--In making reallotments to eligible States 
        of amounts available pursuant to paragraph (2) for a program 
        year, the Secretary shall allot to each eligible State an amount 
        based on the relative amount of the State allotment for the 
        program year for which the determination is made, as compared to 
        the total amount of the State allotments for all eligible States 
        for such program year.
            (4) Eligibility.--For purposes of this subsection, an 
        eligible State means a State that does not have an amount 
        available for reallotment under paragraph (2) for the program 
        year for which the determination under paragraph (2) is made.
            (5) Procedures.--The Governor shall prescribe uniform 
        procedures for the obligation of funds by local areas within the 
        State in order to avoid the requirement that funds be made 
        available for reallotment under this subsection. The Governor 
        shall further prescribe equitable procedures for making funds 
        available from the State and local areas in the event that a 
        State is required to make funds available for reallotment under 
        this subsection.
SEC. 128. <<NOTE: 29 USC 3163.>>  WITHIN STATE ALLOCATIONS.

    (a) Reservations for Statewide Activities.--
            (1) In general.--The Governor shall reserve not more than 15 
        percent of each of the amounts allotted to the State under 
        section 127(b)(1)(C) and paragraphs (1)(B) and (2)(B) of section 
        132(b) for a fiscal year for statewide workforce investment 
        activities.
            (2) Use of funds.--Regardless of whether the reserved 
        amounts were allotted under section 127(b)(1)(C), or under 
        paragraph (1)(B) or (2)(B) of section 132(b), the Governor may 
        use the reserved amounts to carry out statewide activities under 
        section 129(b) or statewide employment and training activities, 
        for adults or dislocated workers, under section 134(a).

    (b) Within State Allocations.--
            (1) <<NOTE: Consulting.>>  Methods.--The Governor, acting in 
        accordance with the State plan, and after consulting with chief 
        elected officials and local boards in the local areas, shall 
        allocate the funds that are allotted to the State for youth 
        activities and statewide workforce investment activities under 
        section 127(b)(1)(C) and are not reserved under subsection (a), 
        in accordance with paragraph (2) or (3).
            (2) Formula allocation.--
                    (A) Youth activities.--
                          (i) Allocation.--In allocating the funds 
                      described in paragraph (1) to local areas, a State 
                      may allocate--
                                    (I) 33\1/3\ percent of the funds on 
                                the basis described in section 
                                127(b)(1)(C)(ii)(I);
                                    (II) 33\1/3\ percent of the funds on 
                                the basis described in section 
                                127(b)(1)(C)(ii)(II); and
                                    (III) 33\1/3\ percent of the funds 
                                on the basis described in clauses 
                                (ii)(III) and (iii) of section 
                                127(b)(1)(C).
                          (ii) Minimum percentage.--The local area shall 
                      not receive an allocation percentage for a fiscal 
                      year that is less than 90 percent of the average 
                      allocation

[[Page 128 STAT. 1503]]

                      percentage of the local area for the 2 preceding 
                      fiscal years. Amounts necessary for increasing 
                      such allocations to local areas to comply with the 
                      preceding sentence shall be obtained by ratably 
                      reducing the allocations to be made to other local 
                      areas under this subparagraph.
                          (iii) Definition.--In this subparagraph, the 
                      term ``allocation percentage'', used with respect 
                      to fiscal year 2015 or a subsequent fiscal year, 
                      means a percentage of the funds referred to in 
                      clause (i), received through an allocation made 
                      under this subparagraph, for the fiscal year. The 
                      term, used with respect to fiscal year 2013 or 
                      2014, means a percentage of the funds referred to 
                      in section 128(b)(1) of the Workforce Investment 
                      Act of 1998 (as in effect on the day before the 
                      date of enactment of this Act), received through 
                      an allocation made under paragraph (2) or (3) of 
                      section 128(b) of the Workforce Investment Act of 
                      1998 (as so in effect), for the fiscal year 2013 
                      or 2014, respectively.
                    (B) Application.--For purposes of carrying out 
                subparagraph (A)--
                          (i) references in section 127(b) to a State 
                      shall be deemed to be references to a local area;
                          (ii) references in section 127(b) to all 
                      States shall be deemed to be references to all 
                      local areas in the State involved; and
                          (iii) except as described in clause (i), 
                      references in section 127(b)(1) to the term 
                      ``excess number'' shall be considered to be 
                      references to the term as defined in section 
                      127(b)(2).
            (3) Youth discretionary allocation.--In lieu of making the 
        allocation described in paragraph (2), in allocating the funds 
        described in paragraph (1) to local areas, a State may 
        distribute--
                    (A) a portion equal to not less than 70 percent of 
                the funds in accordance with paragraph (2)(A); and
                    (B) the remaining portion of the funds on the basis 
                of a formula that--
                          (i) incorporates additional factors (other 
                      than the factors described in paragraph (2)(A)) 
                      relating to--
                                    (I) excess youth poverty in urban, 
                                rural, and suburban local areas; and
                                    (II) excess unemployment above the 
                                State average in urban, rural, and 
                                suburban local areas; and
                          (ii) was developed by the State board and 
                      approved by the Secretary as part of the State 
                      plan.
            (4) Local administrative cost limit.--
                    (A) In general.--Of the amount allocated to a local 
                area under this subsection and section 133(b) for a 
                fiscal year, not more than 10 percent of the amount may 
                be used by the local board involved for the 
                administrative costs of carrying out local workforce 
                investment activities under this chapter or chapter 3.
                    (B) Use of funds.--Funds made available for 
                administrative costs under subparagraph (A) may be used 
                for the

[[Page 128 STAT. 1504]]

                administrative costs of any of the local workforce 
                investment activities described in this chapter or 
                chapter 3, regardless of whether the funds were 
                allocated under this subsection or section 133(b).

    (c) Reallocation Among Local Areas.--
            (1) <<NOTE: Consultation.>>  In general.--The Governor may, 
        in accordance with this subsection and after consultation with 
        the State board, reallocate to eligible local areas within the 
        State amounts that are made available to local areas from 
        allocations made under this section or a corresponding provision 
        of the Workforce Investment Act of 1998 for youth workforce 
        investment activities (referred to individually in this 
        subsection as a ``local allocation'') and that are available for 
        reallocation.
            (2) Amount.--The amount available for reallocation for a 
        program year is equal to the amount by which the unobligated 
        balance of the local allocation, at the end of the program year 
        prior to the program year for which the determination under this 
        paragraph is made, exceeds 20 percent of such allocation for the 
        prior program year.
            (3) Reallocation.--In making reallocations to eligible local 
        areas of amounts available pursuant to paragraph (2) for a 
        program year, the Governor shall allocate to each eligible local 
        area within the State an amount based on the relative amount of 
        the local allocation for the program year for which the 
        determination is made, as compared to the total amount of the 
        local allocations for all eligible local areas in the State for 
        such program year.
            (4) Eligibility.--For purposes of this subsection, an 
        eligible local area means a local area that does not have an 
        amount available for reallocation under paragraph (2) for the 
        program year for which the determination under paragraph (2) is 
        made.
SEC. 129. <<NOTE: 29 USC 3164.>>  USE OF FUNDS FOR YOUTH WORKFORCE 
                        INVESTMENT ACTIVITIES.

    (a) Youth Participant Eligibility.--
            (1) <<NOTE: Definitions.>>  Eligibility.--
                    (A) In general.--To be eligible to participate in 
                activities carried out under this chapter during any 
                program year an individual shall, at the time the 
                eligibility determination is made, be an out-of-school 
                youth or an in-school youth.
                    (B) Out-of-school youth.--In this title, the term 
                ``out-of-school youth'' means an individual who is--
                          (i) not attending any school (as defined under 
                      State law);
                          (ii) not younger than age 16 or older than age 
                      24; and
                          (iii) one or more of the following:
                                    (I) A school dropout.
                                    (II) A youth who is within the age 
                                of compulsory school attendance, but has 
                                not attended school for at least the 
                                most recent complete school year 
                                calendar quarter.
                                    (III) A recipient of a secondary 
                                school diploma or its recognized 
                                equivalent who is a low-income 
                                individual and is--

[[Page 128 STAT. 1505]]

                                            (aa) basic skills deficient; 
                                        or
                                            (bb) an English language 
                                        learner.
                                    (IV) An individual who is subject to 
                                the juvenile or adult justice system.
                                    (V) A homeless individual (as 
                                defined in section 41403(6) of the 
                                Violence Against Women Act of 1994 (42 
                                U.S.C. 14043e-2(6))), a homeless child 
                                or youth (as defined in section 725(2) 
                                of the McKinney-Vento Homeless 
                                Assistance Act (42 U.S.C. 11434a(2))), a 
                                runaway, in foster care or has aged out 
                                of the foster care system, 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.
                                    (VI) An individual who is pregnant 
                                or parenting.
                                    (VII) A youth who is an individual 
                                with a disability.
                                    (VIII) A low-income individual who 
                                requires 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) attending school (as defined by State 
                      law);
                          (ii) not younger than age 14 or (unless an 
                      individual with a disability who is attending 
                      school under State law) older than age 21;
                          (iii) a low-income individual; and
                          (iv) one or more of the following:
                                    (I) Basic skills deficient.
                                    (II) An English language learner.
                                    (III) An offender.
                                    (IV) A homeless individual (as 
                                defined in section 41403(6) of the 
                                Violence Against Women Act of 1994 (42 
                                U.S.C. 14043e-2(6))), a homeless child 
                                or youth (as defined in section 725(2) 
                                of the McKinney-Vento Homeless 
                                Assistance Act (42 U.S.C. 11434a(2))), a 
                                runaway, in foster care or has aged out 
                                of the foster care system, 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.
                                    (V) Pregnant or parenting.
                                    (VI) A youth who is an individual 
                                with a disability.
                                    (VII) An individual who requires 
                                additional assistance to complete an 
                                educational program or to secure or hold 
                                employment.
            (2) Special rule.--For the purpose of this subsection, the 
        term ``low-income'', used with respect to an individual, also 
        includes a youth living in a high-poverty area.
            (3) Exception and limitation.--
                    (A) Exception for persons who are not low-income 
                individuals.--
                          (i) Definition.--In this subparagraph, the 
                      term ``covered individual'' means an in-school 
                      youth, or an

[[Page 128 STAT. 1506]]

                      out-of-school youth who is described in subclause 
                      (III) or (VIII) of paragraph (1)(B)(iii).
                          (ii) Exception.--In each local area, not more 
                      than 5 percent of the individuals assisted under 
                      this section may be persons who would be covered 
                      individuals, except that the persons are not low-
                      income individuals.
                    (B) Limitation.--In each local area, not more than 5 
                percent of the in-school youth assisted under this 
                section may be eligible under paragraph (1) because the 
                youth are in-school youth described in paragraph 
                (1)(C)(iv)(VII).
            (4) Out-of-school priority.--
                    (A) In general.--For any program year, not less than 
                75 percent of the funds allotted under section 
                127(b)(1)(C), reserved under section 128(a), and 
                available for statewide activities under subsection (b), 
                and not less than 75 percent of funds available to local 
                areas under subsection (c), shall be used to provide 
                youth workforce investment activities for out-of-school 
                youth.
                    (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 section 132(b)(1)(B)(iv) may decrease 
                the percentage described in subparagraph (A) to not less 
                than 50 percent for a local area in the State, if--
                          (i) after an analysis of the in-school youth 
                      and out-of-school youth populations in the local 
                      area, the State determines that the local area 
                      will be unable to use at least 75 percent of the 
                      funds available for activities under subsection 
                      (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 Secretary, 
                      for the local area, a request including a proposed 
                      percentage decreased to not less than 50 percent 
                      for purposes of subparagraph (A), and a summary of 
                      the analysis described in clause (i); and
                          (II) the request is approved by the Secretary.
            (5) 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 attendance laws, the priority in providing such 
        assistance shall be for the individual to attend school 
        regularly.

    (b) Statewide Activities.--
            (1) Required statewide youth activities.--Funds reserved by 
        a Governor 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 shall 
        include--
                    (A) conducting evaluations under section 116(e) of 
                activities authorized under this chapter and chapter 3 
                in coordination with evaluations carried out by the 
                Secretary under section 169(a);
                    (B) disseminating a list of eligible providers of 
                youth workforce investment activities, as determined 
                under section 123;

[[Page 128 STAT. 1507]]

                    (C) providing assistance to local areas as described 
                in subsections (b)(6) and (c)(2) of section 106, for 
                local coordination of activities carried out under this 
                title;
                    (D) operating a fiscal and management accountability 
                information system under section 116(i);
                    (E) carrying out monitoring and oversight of 
                activities carried out under this chapter and chapter 3, 
                which may include a review comparing the services 
                provided to male and female youth; and
                    (F) providing additional assistance to local areas 
                that have high concentrations of eligible youth.
            (2) Allowable statewide youth activities.--Funds reserved by 
        a Governor as described in sections 128(a) and 133(a)(1) may 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) research related to meeting the education 
                      and employment needs of eligible youth; and
                          (ii) demonstration projects related to meeting 
                      the education and employment needs of eligible 
                      youth;
                    (B) supporting the development of alternative, 
                evidence-based programs and other activities that 
                enhance the choices available to eligible youth and 
                encourage such youth to reenter and complete secondary 
                education, enroll in postsecondary education and 
                advanced training, progress through a career pathway, 
                and enter into unsubsidized employment that leads to 
                economic self-sufficiency;
                    (C) supporting the provision of career services 
                described in section 134(c)(2) in the one-stop delivery 
                system in the State;
                    (D) supporting financial literacy, including--
                          (i) supporting the ability of participants to 
                      create household budgets, initiate savings plans, 
                      and make informed financial decisions about 
                      education, retirement, home ownership, wealth 
                      building, or other savings goals;
                          (ii) supporting the ability to manage 
                      spending, credit, and debt, including credit card 
                      debt, effectively;
                          (iii) increasing awareness of the availability 
                      and significance of credit reports and credit 
                      scores in obtaining credit, including determining 
                      their accuracy (and how to correct inaccuracies in 
                      the reports and scores), and their effect on 
                      credit terms;
                          (iv) supporting the ability to understand, 
                      evaluate, and compare financial products, 
                      services, and opportunities; and
                          (v) supporting activities that address the 
                      particular financial literacy needs of non-English 
                      speakers, including providing the support through 
                      the development and distribution of multilingual 
                      financial literacy and education materials; and
                    (E) providing technical assistance to, as 
                appropriate, local boards, chief elected officials, one-
                stop operators, one-stop partners, and eligible 
                providers, in local areas, which

[[Page 128 STAT. 1508]]

                provision of technical assistance shall include 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 accountability measures described in section 
                116(c), and the provision of technology to facilitate 
                remote access to services provided through the one-stop 
                delivery system in the State.
            (3) Limitation.--Not more than 5 percent of the funds 
        allotted to a State under section 127(b)(1)(C) shall be used by 
        the State for administrative activities carried out under this 
        subsection or section 134(a).

    (c) Local Elements and Requirements.--
            (1) Program design.--Funds allocated to a local area for 
        eligible youth under section 128(b) shall be used to carry out, 
        for eligible youth, programs that--
                    (A) provide an objective assessment of the academic 
                levels, skill levels, and service needs of each 
                participant, which assessment shall include a review of 
                basic skills, occupational skills, prior work 
                experience, employability, interests, aptitudes 
                (including interests and aptitudes for nontraditional 
                jobs), supportive service needs, and developmental needs 
                of such participant, for the purpose of identifying 
                appropriate services and career pathways for 
                participants, except that a new assessment of a 
                participant is not required if the provider carrying out 
                such a program determines it is appropriate to use a 
                recent assessment of the participant conducted pursuant 
                to another education or training program;
                    (B) develop service strategies for each participant 
                that are directly linked to 1 or more of the indicators 
                of performance described in section 116(b)(2)(A)(ii), 
                and that shall identify career pathways that include 
                education and employment goals (including, in 
                appropriate circumstances, nontraditional employment), 
                appropriate achievement objectives, and appropriate 
                services for the participant taking into account the 
                assessment conducted pursuant to subparagraph (A), 
                except that a new service strategy for a participant is 
                not required if the provider carrying out such a program 
                determines it is appropriate to use a recent service 
                strategy developed for the participant under another 
                education or training program;
                    (C) provide--
                          (i) activities leading to the attainment of a 
                      secondary school diploma or its recognized 
                      equivalent, or a recognized postsecondary 
                      credential;
                          (ii) preparation for postsecondary educational 
                      and training opportunities;
                          (iii) strong linkages between academic 
                      instruction (based on State academic content and 
                      student academic achievement standards established 
                      under section 1111 of the Elementary and Secondary 
                      Education Act of 1965 (20 U.S.C. 6311)) and 
                      occupational education that lead to the attainment 
                      of recognized postsecondary credentials;
                          (iv) preparation for unsubsidized employment 
                      opportunities, in appropriate cases; and

[[Page 128 STAT. 1509]]

                          (v) effective connections to employers, 
                      including small employers, in in-demand industry 
                      sectors and occupations of the local and regional 
                      labor markets; and
                    (D) at the discretion of the local board, implement 
                a pay-for-performance contract strategy for elements 
                described in paragraph (2), for which the local board 
                may reserve and use not more than 10 percent of the 
                total funds allocated to the local area under section 
                128(b).
            (2) Program elements.--In order to support the attainment of 
        a secondary school diploma or its recognized equivalent, entry 
        into postsecondary education, and career readiness for 
        participants, the programs described in paragraph (1) shall 
        provide elements consisting of--
                    (A) tutoring, study skills training, instruction, 
                and evidence-based dropout prevention and recovery 
                strategies that lead to completion of the requirements 
                for a secondary school diploma or its recognized 
                equivalent (including a recognized certificate of 
                attendance or similar document for individuals with 
                disabilities) or for a recognized postsecondary 
                credential;
                    (B) alternative secondary school services, or 
                dropout recovery services, as appropriate;
                    (C) paid and unpaid work experiences that have as a 
                component academic and occupational education, which may 
                include--
                          (i) summer employment opportunities and other 
                      employment opportunities available throughout the 
                      school year;
                          (ii) pre-apprenticeship programs;
                          (iii) internships and job shadowing; and
                          (iv) on-the-job training opportunities;
                    (D) occupational skill training, which shall include 
                priority consideration for training programs that lead 
                to recognized postsecondary credentials that are aligned 
                with in-demand industry sectors or occupations in the 
                local area involved, if the local board determines that 
                the programs meet the quality criteria described in 
                section 123;
                    (E) education offered concurrently with and in the 
                same context as workforce preparation activities and 
                training for a specific occupation or occupational 
                cluster;
                    (F) leadership development opportunities, which may 
                include community service and peer-centered activities 
                encouraging responsibility and other positive social and 
                civic behaviors, as appropriate;
                    (G) supportive services;
                    (H) adult mentoring for the period of participation 
                and a subsequent period, for a total of not less than 12 
                months;
                    (I) followup services for not less than 12 months 
                after the completion of participation, as appropriate;
                    (J) comprehensive guidance and counseling, which may 
                include drug and alcohol abuse counseling and referral, 
                as appropriate;
                    (K) financial literacy education;
                    (L) entrepreneurial skills training;

[[Page 128 STAT. 1510]]

                    (M) services that provide labor market and 
                employment information about in-demand industry sectors 
                or occupations available in the local area, such as 
                career awareness, career counseling, and career 
                exploration services; and
                    (N) activities that help youth prepare for and 
                transition to postsecondary education and training.
            (3) Additional requirements.--
                    (A) Information and referrals.--Each local board 
                shall ensure that each participant shall be provided--
                          (i) information on the full array of 
                      applicable or appropriate services that are 
                      available through the local board or other 
                      eligible providers or one-stop partners, including 
                      those providers or partners receiving funds under 
                      this subtitle; and
                          (ii) referral to appropriate training and 
                      educational programs that have the capacity to 
                      serve the participant either on a sequential or 
                      concurrent basis.
                    (B) Applicants not meeting enrollment 
                requirements.--Each eligible provider of a program of 
                youth workforce investment activities shall ensure that 
                an eligible applicant who does not meet the enrollment 
                requirements of the particular program or who cannot be 
                served shall be referred for further assessment, as 
                necessary, and referred to appropriate programs in 
                accordance with subparagraph (A) to meet the basic 
                skills and training needs of the applicant.
                    (C) Involvement in design and implementation.--The 
                local board shall ensure that parents, participants, and 
                other members of the community with experience relating 
                to programs for youth are involved in the design and 
                implementation of the programs described in paragraph 
                (1).
            (4) Priority.--Not less than 20 percent of the funds 
        allocated to the local area as described in paragraph (1) shall 
        be used to provide in-school youth and out-of-school youth with 
        activities under paragraph (2)(C).
            (5) Rule of construction.--Nothing in this chapter shall be 
        construed to require that each of the elements described in 
        subparagraphs of paragraph (2) be offered by each provider of 
        youth services.
            (6) Prohibitions.--
                    (A) Prohibition against federal control of 
                education.--No provision of this Act shall be construed 
                to authorize any department, agency, officer, or 
                employee of the United States to exercise any direction, 
                supervision, or control over the curriculum, program of 
                instruction, administration, or personnel of any 
                educational institution, school, or school system, or 
                over the selection of library resources, textbooks, or 
                other printed or published instructional materials by 
                any educational institution, school, or school system.
                    (B) Noninterference and nonreplacement of regular 
                academic requirements.--No funds described in paragraph 
                (1) shall be used to provide an activity for eligible 
                youth who are not school dropouts if participation in 
                the activity would interfere with or replace the regular 
                academic requirements of the youth.

[[Page 128 STAT. 1511]]

            (7) Linkages.--In coordinating the programs authorized under 
        this section, local boards shall establish linkages with local 
        educational agencies responsible for services to participants as 
        appropriate.
            (8) Volunteers.--The local board shall make opportunities 
        available for individuals who have successfully participated in 
        programs carried out under this section to volunteer assistance 
        to participants in the form of mentoring, tutoring, and other 
        activities.

     CHAPTER 3--ADULT AND DISLOCATED WORKER EMPLOYMENT AND TRAINING 
                               ACTIVITIES

SEC. 131. <<NOTE: 29 USC 3171.>>  GENERAL AUTHORIZATION.

    The Secretary shall make allotments under paragraphs (1)(B) and 
(2)(B) of section 132(b) to each State that meets the requirements of 
section 102 or 103 and grants under paragraphs (1)(A) and (2)(A) of 
section 132(b) to each outlying area that complies with the requirements 
of this title, to assist the State or outlying area, and to enable the 
State or outlying area to assist local areas, for the purpose of 
providing workforce investment activities for adults, and dislocated 
workers, in the State or outlying area and in the local areas.
SEC. 132. <<NOTE: 29 USC 3172.>>  STATE ALLOTMENTS.

    (a) In General.--The Secretary shall--
            (1) <<NOTE: Grants.>>  make allotments and grants from the 
        amount appropriated under section 136(b) for a fiscal year in 
        accordance with subsection (b)(1); and
            (2)(A) reserve 20 percent of the amount appropriated under 
        section 136(c) for the fiscal year for use under subsection 
        (b)(2)(A), and under sections 168(b) (relating to dislocated 
        worker technical assistance), 169(c) (relating to dislocated 
        worker projects), and 170 (relating to national dislocated 
        worker grants); and
            (B) make allotments from 80 percent of the amount 
        appropriated under section 136(c) for the fiscal year in 
        accordance with subsection (b)(2)(B).

    (b) Allotment Among States.--
            (1) Adult employment and training activities.--
                    (A) Reservation for outlying areas.--
                          (i) In general.--From the amount made 
                      available under subsection (a)(1) for a fiscal 
                      year, the Secretary shall reserve not more than 
                      \1/4\ of 1 percent of such amount to provide 
                      assistance to the outlying areas.
                          (ii) Applicability of additional 
                      requirements.--From the amount reserved under 
                      clause (i), the Secretary shall provide assistance 
                      to the outlying areas for adult employment and 
                      training activities and statewide workforce 
                      investment activities in accordance with the 
                      requirements of section 127(b)(1)(B).
                    (B) States.--
                          (i) <<NOTE: Determination.>>  In general.--
                      After determining the amount to be reserved under 
                      subparagraph (A), the Secretary shall allot the 
                      remainder of the amount made available under 
                      subsection (a)(1) for that fiscal year to the 
                      States pursuant to clause (ii) for adult 
                      employment and

[[Page 128 STAT. 1512]]

                      training activities and statewide workforce 
                      investment activities.
                          (ii) Formula.--Subject to clauses (iii) and 
                      (iv), of the remainder--
                                    (I) 33\1/3\ percent shall be 
                                allotted on the basis of the relative 
                                number of unemployed individuals in 
                                areas of substantial unemployment in 
                                each State, compared to the total number 
                                of unemployed individuals in areas of 
                                substantial unemployment in all States;
                                    (II) 33\1/3\ percent shall be 
                                allotted on the basis of the relative 
                                excess number of unemployed individuals 
                                in each State, compared to the total 
                                excess number of unemployed individuals 
                                in all States; and
                                    (III) 33\1/3\ percent shall be 
                                allotted on the basis of the relative 
                                number of disadvantaged adults in each 
                                State, compared to the total number of 
                                disadvantaged adults in all States, 
                                except as described in clause (iii).
                          (iii) Calculation.--In determining an 
                      allotment under clause (ii)(III) for any State in 
                      which there is an area that was designated as a 
                      local area as described in section 107(c)(1)(C), 
                      the allotment shall be based on the higher of--
                                    (I) the number of adults in families 
                                with an income below the low-income 
                                level in such area; or
                                    (II) the number of disadvantaged 
                                adults in such area.
                          (iv) Minimum and maximum percentages and 
                      minimum allotments.--In making allotments under 
                      this subparagraph, the Secretary shall ensure the 
                      following:
                                    (I) Minimum percentage and 
                                allotment.--Subject to subclause (IV), 
                                the Secretary shall ensure that no State 
                                shall receive an allotment for a fiscal 
                                year that is an amount based on 90 
                                percent of the allotment percentage of 
                                the State for the preceding fiscal year.
                                    (II) Small state minimum 
                                allotment.--Subject to subclauses (I), 
                                (III), and (IV), the Secretary shall 
                                ensure that no State shall receive an 
                                allotment under this subparagraph that 
                                is less than the total of--
                                            (aa) \3/10\ of 1 percent of 
                                        $960,000,000 of the remainder 
                                        described in clause (i) for the 
                                        fiscal year; and
                                            (bb) if the remainder 
                                        described in clause (i) for the 
                                        fiscal year exceeds 
                                        $960,000,000, \2/5\ of 1 percent 
                                        of the excess.
                                    (III) Maximum percentage.--Subject 
                                to subclause (I), the Secretary shall 
                                ensure that no State shall receive an 
                                allotment percentage for a fiscal year 
                                that is more than 130 percent of the 
                                allotment percentage of the State for 
                                the preceding fiscal year.

[[Page 128 STAT. 1513]]

                                    (IV) Minimum funding.--In any fiscal 
                                year in which the remainder described in 
                                clause (i) does not exceed $960,000,000, 
                                the minimum allotments under subclauses 
                                (I) and (II) shall be calculated by the 
                                methodology specified in section 
                                132(b)(1)(B)(iv)(IV) of the Workforce 
                                Investment Act of 1998 (as in effect on 
                                the day before the date of enactment of 
                                this Act).
                          (v) Definitions.--For the purpose of the 
                      formula specified in this subparagraph:
                                    (I) Adult.--The term ``adult'' means 
                                an individual who is not less than age 
                                22 and not more than age 72.
                                    (II) Allotment percentage.--The term 
                                ``allotment percentage'', used with 
                                respect to fiscal year 2015 or a 
                                subsequent fiscal year, means a 
                                percentage of the remainder described in 
                                clause (i) that is received through an 
                                allotment made under this subparagraph 
                                for the fiscal year. The term, used with 
                                respect to fiscal year 2014, means the 
                                percentage of the amount allotted to 
                                States under section 132(b)(1)(B) of the 
                                Workforce Investment Act of 1998 (as in 
                                effect on the day before the date of 
                                enactment of this Act) that is received 
                                under such section by the State involved 
                                for fiscal year 2014.
                                    (III) Area of substantial 
                                unemployment.--The term ``area of 
                                substantial unemployment'' means any 
                                area that is of sufficient size and 
                                scope to sustain a program of workforce 
                                investment activities carried out under 
                                this subtitle and that has an average 
                                rate of unemployment of at least 6.5 
                                percent for the most recent 12 months, 
                                as determined by the Secretary. For 
                                purposes of this subclause, 
                                determinations of areas of substantial 
                                unemployment shall be made once each 
                                fiscal year.
                                    (IV) Disadvantaged adult.--Subject 
                                to subclause (V), the term 
                                ``disadvantaged adult'' means an adult 
                                who received an income, or is a member 
                                of a family that received a total family 
                                income, that, in relation to family 
                                size, does not exceed the higher of--
                                            (aa) the poverty line; or
                                            (bb) 70 percent of the lower 
                                        living standard income level.
                                    (V) Disadvantaged adult special 
                                rule.--The Secretary shall, as 
                                appropriate and to the extent 
                                practicable, exclude college students 
                                and members of the Armed Forces from the 
                                determination of the number of 
                                disadvantaged adults.
                                    (VI) Excess number.--The term 
                                ``excess number'' means, used with 
                                respect to the excess number of 
                                unemployed individuals within a State, 
                                the higher of--
                                            (aa) the number that 
                                        represents the number of 
                                        unemployed individuals in excess

[[Page 128 STAT. 1514]]

                                        of 4.5 percent of the civilian 
                                        labor force in the State; or
                                            (bb) the number that 
                                        represents the number of 
                                        unemployed individuals in excess 
                                        of 4.5 percent of the civilian 
                                        labor force in areas of 
                                        substantial unemployment in such 
                                        State.
                                    (VII) Low-income level.--The term 
                                ``low-income level'' means $7,000 with 
                                respect to income in 1969, and for any 
                                later year means that amount that bears 
                                the same relationship to $7,000 as the 
                                Consumer Price Index for that year bears 
                                to the Consumer Price Index for 1969, 
                                rounded to the nearest $1,000.
            (2) Dislocated worker employment and training activities.--
                    (A) Reservation for outlying areas.--
                          (i) In general.--From the amount made 
                      available under subsection (a)(2)(A) for a fiscal 
                      year, the Secretary shall reserve not more than 
                      \1/4\ of 1 percent of the amount appropriated 
                      under section 136(c) for the fiscal year to 
                      provide assistance to the outlying areas.
                          (ii) Applicability of additional 
                      requirements.--From the amount reserved under 
                      clause (i), the Secretary shall provide assistance 
                      to the outlying areas for dislocated worker 
                      employment and training activities and statewide 
                      workforce investment activities in accordance with 
                      the requirements of section 127(b)(1)(B).
                    (B) States.--
                          (i) In general.--The Secretary shall allot the 
                      amount referred to in subsection (a)(2)(B) for a 
                      fiscal year to the States pursuant to clause (ii) 
                      for dislocated worker employment and training 
                      activities and statewide workforce investment 
                      activities.
                          (ii) Formula.--Subject to clause (iii), of the 
                      amount--
                                    (I) 33\1/3\ percent shall be 
                                allotted on the basis of the relative 
                                number of unemployed individuals in each 
                                State, compared to the total number of 
                                unemployed individuals in all States;
                                    (II) 33\1/3\ percent shall be 
                                allotted on the basis of the relative 
                                excess number of unemployed individuals 
                                in each State, compared to the total 
                                excess number of unemployed individuals 
                                in all States; and
                                    (III) 33\1/3\ percent shall be 
                                allotted on the basis of the relative 
                                number of individuals in each State who 
                                have been unemployed for 15 weeks or 
                                more, compared to the total number of 
                                individuals in all States who have been 
                                unemployed for 15 weeks or more.
                          (iii) Minimum and maximum percentages and 
                      minimum allotments.--In making allotments under

[[Page 128 STAT. 1515]]

                      this subparagraph, for fiscal year 2016 and each 
                      subsequent fiscal year, the Secretary shall ensure 
                      the following:
                                    (I) Minimum percentage and 
                                allotment.--The Secretary shall ensure 
                                that no State shall receive an allotment 
                                for a fiscal year that is an amount 
                                based on 90 percent of the allotment 
                                percentage of the State for the 
                                preceding fiscal year.
                                    (II) Maximum percentage.--Subject to 
                                subclause (I), the Secretary shall 
                                ensure that no State shall receive an 
                                allotment percentage for a fiscal year 
                                that is more than 130 percent of the 
                                allotment percentage of the State for 
                                the preceding fiscal year.
                          (iv) Definitions.--For the purpose of the 
                      formula specified in this subparagraph:
                                    (I) Allotment percentage.--The term 
                                ``allotment percentage'', used with 
                                respect to fiscal year 2015 or a 
                                subsequent fiscal year, means a 
                                percentage of the amount described in 
                                clause (i) that is received through an 
                                allotment made under this subparagraph 
                                for the fiscal year.
                                    (II) Excess number.--The term 
                                ``excess number'' means, used with 
                                respect to the excess number of 
                                unemployed individuals within a State, 
                                the number that represents the number of 
                                unemployed individuals in excess of 4.5 
                                percent of the civilian labor force in 
                                the State.

    (c) Reallotment.--
            (1) In general.--The Secretary shall, in accordance with 
        this subsection, reallot to eligible States amounts that are 
        made available to States from allotments made under this section 
        or a corresponding provision of the Workforce Investment Act of 
        1998 for employment and training activities and statewide 
        workforce investment activities (referred to individually in 
        this subsection as a ``State allotment'') and that are available 
        for reallotment.
            (2) Amount.--The amount available for reallotment for a 
        program year for programs funded under subsection (b)(1)(B) 
        (relating to adult employment and training) or for programs 
        funded under subsection (b)(2)(B) (relating to dislocated worker 
        employment and training) is equal to the amount by which the 
        unobligated balance of the State allotments for adult employment 
        and training activities or dislocated worker employment and 
        training activities, respectively, at the end of the program 
        year prior to the program year for which the determination under 
        this paragraph is made, exceeds 20 percent of such allotments 
        for the prior program year.
            (3) Reallotment.--In making reallotments to eligible States 
        of amounts available pursuant to paragraph (2) for a program 
        year, the Secretary shall allot to each eligible State an amount 
        based on the relative amount of the State allotment under 
        paragraph (1)(B) or (2)(B), respectively, of subsection (b) for 
        the program year for which the determination is made, as 
        compared to the total amount of the State allotments under

[[Page 128 STAT. 1516]]

        paragraph (1)(B) or (2)(B), respectively, of subsection (b) for 
        all eligible States for such program year.
            (4) Eligibility.--For purposes of this subsection, an 
        eligible State means--
                    (A) with respect to funds allotted through a State 
                allotment for adult employment and training activities, 
                a State that does not have an amount of such funds 
                available for reallotment under paragraph (2) for the 
                program year for which the determination under paragraph 
                (2) is made; and
                    (B) with respect to funds allotted through a State 
                allotment for dislocated worker employment and training 
                activities, a State that does not have an amount of such 
                funds available for reallotment under paragraph (2) for 
                the program year for which the determination under 
                paragraph (2) is made.
            (5) Procedures.--The Governor shall prescribe uniform 
        procedures for the obligation of funds by local areas within the 
        State in order to avoid the requirement that funds be made 
        available for reallotment under this subsection. The Governor 
        shall further prescribe equitable procedures for making funds 
        available from the State and local areas in the event that a 
        State is required to make funds available for reallotment under 
        this subsection.
SEC. 133. <<NOTE: 29 USC 3173.>>  WITHIN STATE ALLOCATIONS.

    (a) Reservations for State Activities.--
            (1) Statewide workforce investment activities.--The Governor 
        shall make the reservation required under section 128(a).
            (2) Statewide rapid response activities.--The Governor shall 
        reserve not more than 25 percent of the total amount allotted to 
        the State under section 132(b)(2)(B) for a fiscal year for 
        statewide rapid response activities described in section 
        134(a)(2)(A).

    (b) Within State Allocation.--
            (1) <<NOTE: Consultation.>>  Methods.--The Governor, acting 
        in accordance with the State plan, and after consulting with 
        chief elected officials and local boards in the local areas, 
        shall allocate--
                    (A) the funds that are allotted to the State for 
                adult employment and training activities and statewide 
                workforce investment activities under section 
                132(b)(1)(B) and are not reserved under subsection 
                (a)(1), in accordance with paragraph (2) or (3); and
                    (B) the funds that are allotted to the State for 
                dislocated worker employment and training activities and 
                statewide workforce investment activities under section 
                132(b)(2)(B) and are not reserved under paragraph (1) or 
                (2) of subsection (a), in accordance with paragraph (2).
            (2) Formula allocations.--
                    (A) Adult employment and training activities.--
                          (i) Allocation.--In allocating the funds 
                      described in paragraph (1)(A) to local areas, a 
                      State may allocate--
                                    (I) 33\1/3\ percent of the funds on 
                                the basis described in section 
                                132(b)(1)(B)(ii)(I);

[[Page 128 STAT. 1517]]

                                    (II) 33\1/3\ percent of the funds on 
                                the basis described in section 
                                132(b)(1)(B)(ii)(II); and
                                    (III) 33\1/3\ percent of the funds 
                                on the basis described in clauses 
                                (ii)(III) and (iii) of section 
                                132(b)(1)(B).
                          (ii) Minimum percentage.--The local area shall 
                      not receive an allocation percentage for a fiscal 
                      year that is less than 90 percent of the average 
                      allocation percentage of the local area for the 2 
                      preceding fiscal years. Amounts necessary for 
                      increasing such allocations to local areas to 
                      comply with the preceding sentence shall be 
                      obtained by ratably reducing the allocations to be 
                      made to other local areas under this subparagraph.
                          (iii) Definition.--In this subparagraph, the 
                      term ``allocation percentage'', used with respect 
                      to fiscal year 2015 or a subsequent fiscal year, 
                      means a percentage of the funds referred to in 
                      clause (i), received through an allocation made 
                      under this subparagraph, for the fiscal year. The 
                      term, used with respect to fiscal year 2013 or 
                      2014, means a percentage of the amount allocated 
                      to local areas under paragraphs (2)(A) and (3) of 
                      section 133(b) of the Workforce Investment Act of 
                      1998 (as in effect on the day before the date of 
                      enactment of this Act), received through an 
                      allocation made under paragraph (2)(A) or (3) of 
                      that section for fiscal year 2013 or 2014, 
                      respectively.
                    (B) Dislocated worker employment and training 
                activities.--
                          (i) Allocation.--In allocating the funds 
                      described in paragraph (1)(B) to local areas, a 
                      State shall allocate the funds based on an 
                      allocation formula prescribed by the Governor of 
                      the State. Such formula may be amended by the 
                      Governor not more than once for each program year. 
                      Such formula shall utilize the most appropriate 
                      information available to the Governor to 
                      distribute amounts to address the State's worker 
                      readjustment assistance needs.
                          (ii) Information.--The information described 
                      in clause (i) shall include insured unemployment 
                      data, unemployment concentrations, plant closing 
                      and mass layoff data, declining industries data, 
                      farmer-rancher economic hardship data, and long-
                      term unemployment data.
                          (iii) Minimum percentage.--The local area 
                      shall not receive an allocation percentage for 
                      fiscal year 2016 or a subsequent fiscal year that 
                      is less than 90 percent of the average allocation 
                      percentage of the local area for the 2 preceding 
                      fiscal years. Amounts necessary for increasing 
                      such allocations to local areas to comply with the 
                      preceding sentence shall be obtained by ratably 
                      reducing the allocations to be made to other local 
                      areas under this subparagraph.
                          (iv) Definition.--In this subparagraph, the 
                      term ``allocation percentage'', used with respect 
                      to fiscal year 2015 or a subsequent fiscal year, 
                      means a percentage of the funds referred to in 
                      clause (i), received through

[[Page 128 STAT. 1518]]

                      an allocation made under this subparagraph for the 
                      fiscal year. The term, used with respect to fiscal 
                      year 2014, means a percentage of the amount 
                      allocated to local areas under section 
                      133(b)(2)(B) of the Workforce Investment Act of 
                      1998 (as in effect on the day before the date of 
                      enactment of this Act), received through an 
                      allocation made under that section for fiscal year 
                      2014.
                    (C) Application.--For purposes of carrying out 
                subparagraph (A)--
                          (i) references in section 132(b) to a State 
                      shall be deemed to be references to a local area;
                          (ii) references in section 132(b) to all 
                      States shall be deemed to be references to all 
                      local areas in the State involved; and
                          (iii) except as described in clause (i), 
                      references in section 132(b)(1) to the term 
                      ``excess number'' shall be considered to be 
                      references to the term as defined in section 
                      132(b)(1).
            (3) Adult employment and training discretionary 
        allocations.--In lieu of making the allocation described in 
        paragraph (2)(A), in allocating the funds described in paragraph 
        (1)(A) to local areas, a State may distribute--
                    (A) a portion equal to not less than 70 percent of 
                the funds in accordance with paragraph (2)(A); and
                    (B) the remaining portion of the funds on the basis 
                of a formula that--
                          (i) incorporates additional factors (other 
                      than the factors described in paragraph (2)(A)) 
                      relating to--
                                    (I) excess poverty in urban, rural, 
                                and suburban local areas; and
                                    (II) excess unemployment above the 
                                State average in urban, rural, and 
                                suburban local areas; and
                          (ii) was developed by the State board and 
                      approved by the Secretary as part of the State 
                      plan.
            (4) Transfer authority.--A local board may transfer, if such 
        a transfer is approved by the Governor, up to and including 100 
        percent of the funds allocated to the local area under paragraph 
        (2)(A) or (3), and up to and including 100 percent of the funds 
        allocated to the local area under paragraph (2)(B), for a fiscal 
        year between--
                    (A) adult employment and training activities; and
                    (B) dislocated worker employment and training 
                activities.
            (5) Allocation.--
                    (A) In general.--The Governor shall allocate the 
                funds described in paragraph (1) to local areas under 
                paragraphs (2) and (3) for the purpose of providing a 
                single system of employment and training activities for 
                adults and dislocated workers in accordance with 
                subsections (c) and (d) of section 134.
                    (B) Additional requirements.--
                          (i) Adults.--Funds allocated under paragraph 
                      (2)(A) or (3) shall be used by a local area to 
                      contribute to the costs of the one-stop delivery 
                      system described in section 121(e) as determined 
                      under section 121(h)

[[Page 128 STAT. 1519]]

                      and to pay for employment and training activities 
                      provided to adults in the local area, consistent 
                      with section 134.
                          (ii) Dislocated workers.--Funds allocated 
                      under paragraph (2)(B) shall be used by a local 
                      area to contribute to the costs of the one-stop 
                      delivery system described in section 121(e) as 
                      determined under section 121(h) and to pay for 
                      employment and training activities provided to 
                      dislocated workers in the local area, consistent 
                      with section 134.

    (c) Reallocation Among Local Areas.--
            (1) <<NOTE: Consultation.>>  In general.--The Governor may, 
        in accordance with this subsection and after consultation with 
        the State board, reallocate to eligible local areas within the 
        State amounts that are made available to local areas from 
        allocations made under paragraph (2)(A) or (3) of subsection (b) 
        or a corresponding provision of the Workforce Investment Act of 
        1998 for adult employment and training activities, or under 
        subsection (b)(2)(B) or a corresponding provision of the 
        Workforce Investment Act of 1998 for dislocated worker 
        employment and training activities (referred to individually in 
        this subsection as a ``local allocation'') and that are 
        available for reallocation.
            (2) Amount.--The amount available for reallocation for a 
        program year--
                    (A) for adult employment and training activities is 
                equal to the amount by which the unobligated balance of 
                the local allocation under paragraph (2)(A) or (3) of 
                subsection (b) for such activities, at the end of the 
                program year prior to the program year for which the 
                determination under this subparagraph is made, exceeds 
                20 percent of such allocation for the prior program 
                year; and
                    (B) for dislocated worker employment and training 
                activities is equal to the amount by which the 
                unobligated balance of the local allocation under 
                subsection (b)(2)(B) for such activities, at the end of 
                the program year prior to the program year for which the 
                determination under this subparagraph is made, exceeds 
                20 percent of such allocation for the prior program 
                year.
            (3) Reallocation.--In making reallocations to eligible local 
        areas of amounts available pursuant to paragraph (2) for a 
        program year, the Governor shall allocate to each eligible local 
        area within the State--
                    (A) with respect to such available amounts that were 
                allocated under paragraph (2)(A) or (3) of subsection 
                (b), an amount based on the relative amount of the local 
                allocation under paragraph (2)(A) or (3) of subsection 
                (b), as appropriate, for the program year for which the 
                determination is made, as compared to the total amount 
                of the local allocations under paragraph (2)(A) or (3) 
                of subsection (b), as appropriate, for all eligible 
                local areas in the State for such program year; and
                    (B) with respect to such available amounts that were 
                allocated under subsection (b)(2)(B), an amount based on 
                the relative amount of the local allocation under 
                subsection (b)(2)(B) for the program year for which the 
                determination is made, as compared to the total amount 
                of the local

[[Page 128 STAT. 1520]]

                allocations under subsection (b)(2)(B) for all eligible 
                local areas in the State for such program year.
            (4) Eligibility.--For purposes of this subsection, an 
        eligible local area means--
                    (A) with respect to funds allocated through a local 
                allocation for adult employment and training activities, 
                a local area that does not have an amount of such funds 
                available for reallocation under paragraph (2) for the 
                program year for which the determination under paragraph 
                (2) is made; and
                    (B) with respect to funds allocated through a local 
                allocation for dislocated worker employment and training 
                activities, a local area that does not have an amount of 
                such funds available for reallocation under paragraph 
                (2) for the program year for which the determination 
                under paragraph (2) is made.
SEC. 134. <<NOTE: 29 USC 3174.>>  USE OF FUNDS FOR EMPLOYMENT AND 
                        TRAINING ACTIVITIES.

    (a) Statewide Employment and Training Activities.--
            (1) In general.--Funds reserved by a Governor--
                    (A) as described in section 133(a)(2) shall be used 
                to carry out the statewide rapid response activities 
                described in paragraph (2)(A); and
                    (B) as described in sections 128(a) and 133(a)(1)--
                          (i) shall be used to carry out the statewide 
                      employment and training activities described in 
                      paragraph (2)(B); and
                          (ii) may be used to carry out any of the 
                      statewide employment and training activities 
                      described in paragraph (3),
                regardless of whether the funds were allotted to the 
                State under section 127(b)(1) or under paragraph (1) or 
                (2) of section 132(b).
            (2) Required statewide employment and training activities.--
                    (A) Statewide rapid response activities.--
                          (i) In general.--A State shall carry out 
                      statewide rapid response activities using funds 
                      reserved by the Governor for the State under 
                      section 133(a)(2), which activities shall 
                      include--
                                    (I) provision of rapid response 
                                activities, carried out in local areas 
                                by the State or by an entity designated 
                                by the State, working in conjunction 
                                with the local boards and the chief 
                                elected officials for the local areas; 
                                and
                                    (II) provision of additional 
                                assistance to local areas that 
                                experience disasters, mass layoffs, or 
                                plant closings, or other events that 
                                precipitate substantial increases in the 
                                number of unemployed individuals, 
                                carried out in local areas by the State, 
                                working in conjunction with the local 
                                boards and the chief elected officials 
                                for the local areas.
                          (ii) Use of unobligated funds.--Funds reserved 
                      by a Governor under section 133(a)(2), and section 
                      133(a)(2) of the Workforce Investment Act of 1998 
                      (as in effect on the day before the date of 
                      enactment of

[[Page 128 STAT. 1521]]

                      this Act), to carry out this subparagraph that 
                      remain unobligated after the first program year 
                      for which such funds were allotted may be used by 
                      the Governor to carry out statewide activities 
                      authorized under subparagraph (B) or paragraph 
                      (3)(A), in addition to activities under this 
                      subparagraph.
                    (B) Statewide employment and training activities.--
                Funds reserved by a Governor under sections 128(a)(1) 
                and 133(a)(1) and not used under paragraph (1)(A) 
                (regardless of whether the funds were allotted to the 
                States under section 127(b)(1)(C) or paragraph (1)(B) or 
                (2)(B) of section 132(b)) shall be used for statewide 
                employment and training activities, including--
                          (i) providing assistance to--
                                    (I) State entities and agencies, 
                                local areas, and one-stop partners in 
                                carrying out the activities described in 
                                the State plan, including the 
                                coordination and alignment of data 
                                systems used to carry out the 
                                requirements of this Act;
                                    (II) local areas for carrying out 
                                the regional planning and service 
                                delivery efforts required under section 
                                106(c);
                                    (III) local areas by providing 
                                information on and support for the 
                                effective development, convening, and 
                                implementation of industry or sector 
                                partnerships; and
                                    (IV) local areas, one-stop 
                                operators, one-stop partners, and 
                                eligible providers, including the 
                                development and training of staff, which 
                                may include the development and training 
                                of staff to provide opportunities for 
                                individuals with barriers to employment 
                                to enter in-demand industry sectors or 
                                occupations and nontraditional 
                                occupations, the development of 
                                exemplary program activities, and the 
                                provision of technical assistance to 
                                local areas that fail to meet local 
                                performance accountability measures 
                                described in section 116(c);
                          (ii) providing assistance to local areas as 
                      described in section 106(b)(6);
                          (iii) operating a fiscal and management 
                      accountability information system in accordance 
                      with section 116(i);
                          (iv) carrying out monitoring and oversight of 
                      activities carried out under this chapter and 
                      chapter 2;
                          (v) disseminating--
                                    (I) <<NOTE: List.>>  the State list 
                                of eligible providers of training 
                                services, including eligible providers 
                                of nontraditional training services and 
                                eligible providers of apprenticeship 
                                programs described in section 
                                122(a)(2)(B);
                                    (II) information identifying 
                                eligible providers of on-the-job 
                                training, customized training, incumbent 
                                worker training, internships, paid or 
                                unpaid work experience opportunities, or 
                                transitional jobs;
                                    (III) information on effective 
                                outreach to, partnerships with, and 
                                services for, business;

[[Page 128 STAT. 1522]]

                                    (IV) information on effective 
                                service delivery strategies to serve 
                                workers and job seekers;
                                    (V) performance information and 
                                information on the cost of attendance 
                                (including tuition and fees) for 
                                participants in applicable programs, as 
                                described in subsections (d) and (h) of 
                                section 122; and
                                    (VI) information on physical and 
                                programmatic accessibility, in 
                                accordance with section 188, if 
                                applicable, and the Americans with 
                                Disabilities Act of 1990 (42 U.S.C. 
                                12101 et seq.), for individuals with 
                                disabilities; and
                          (vi) <<NOTE: Evaluations.>>  conducting 
                      evaluations under section 116(e) of activities 
                      authorized under this chapter and chapter 2 in 
                      coordination with evaluations carried out by the 
                      Secretary under section 169(a).
            (3) Allowable statewide employment and training 
        activities.--
                    (A) In general.--Funds reserved by a Governor under 
                sections 128(a)(1) and 133(a)(1) and not used under 
                paragraph (1)(A) or (2)(B) (regardless of whether the 
                funds were allotted to the State under section 
                127(b)(1)(C) or paragraph (1)(B) or (2)(B) of section 
                132(b)) may be used to carry out additional statewide 
                employment and training activities, which may include--
                          (i) implementing innovative programs and 
                      strategies designed to meet the needs of all 
                      employers (including small employers) in the 
                      State, which programs and strategies may include 
                      incumbent worker training programs, customized 
                      training, sectoral and industry cluster strategies 
                      and implementation of industry or sector 
                      partnerships, career pathway programs, 
                      microenterprise and entrepreneurial training and 
                      support programs, utilization of effective 
                      business intermediaries, layoff aversion 
                      strategies, activities to improve linkages between 
                      the one-stop delivery system in the State and all 
                      employers (including small employers) in the 
                      State, and other business services and strategies 
                      that better engage employers in workforce 
                      investment activities and make the workforce 
                      development system more relevant to the needs of 
                      State and local businesses, consistent with the 
                      objectives of this title;
                          (ii) developing strategies for effectively 
                      serving individuals with barriers to employment 
                      and for coordinating programs and services among 
                      one-stop partners;
                          (iii) the development or identification of 
                      education and training programs that respond to 
                      real-time labor market analysis, that utilize 
                      direct assessment and prior learning assessment to 
                      measure and provide credit for prior knowledge, 
                      skills, competencies, and experiences, that 
                      evaluate such skills and competencies for 
                      adaptability, that ensure credits are portable and 
                      stackable for more skilled employment, and that 
                      accelerate course or credential completion;

[[Page 128 STAT. 1523]]

                          (iv) implementing programs to increase the 
                      number of individuals training for and placed in 
                      nontraditional employment;
                          (v) carrying out activities to facilitate 
                      remote access to services, including training 
                      services described in subsection (c)(3), provided 
                      through a one-stop delivery system, including 
                      facilitating access through the use of technology;
                          (vi) supporting the provision of career 
                      services described in subsection (c)(2) in the 
                      one-stop delivery systems in the State;
                          (vii) coordinating activities with the child 
                      welfare system to facilitate provision of services 
                      for children and youth who are eligible for 
                      assistance under section 477 of the Social 
                      Security Act (42 U.S.C. 677);
                          (viii) activities--
                                    (I) to improve coordination of 
                                workforce investment activities with 
                                economic development activities;
                                    (II) to improve coordination of 
                                employment and training activities 
                                with--
                                            (aa) child support services, 
                                        and assistance provided by State 
                                        and local agencies carrying out 
                                        part D of title IV of the Social 
                                        Security Act (42 U.S.C. 651 et 
                                        seq.);
                                            (bb) cooperative extension 
                                        programs carried out by the 
                                        Department of Agriculture;
                                            (cc) programs carried out in 
                                        local areas for individuals with 
                                        disabilities, including programs 
                                        carried out by State agencies 
                                        relating to intellectual 
                                        disabilities and developmental 
                                        disabilities, activities carried 
                                        out by Statewide Independent 
                                        Living Councils established 
                                        under section 705 of the 
                                        Rehabilitation Act of 1973 (29 
                                        U.S.C. 796d), programs funded 
                                        under part B of chapter 1 of 
                                        title VII of such Act (29 U.S.C. 
                                        796e et seq.), and activities 
                                        carried out by centers for 
                                        independent living, as defined 
                                        in section 702 of such Act (29 
                                        U.S.C. 796a);
                                            (dd) adult education and 
                                        literacy activities, including 
                                        those provided by public 
                                        libraries;
                                            (ee) activities in the 
                                        corrections system that assist 
                                        ex-offenders in reentering the 
                                        workforce; and
                                            (ff) financial literacy 
                                        activities including those 
                                        described in section 
                                        129(b)(2)(D); and
                                    (III) consisting of development and 
                                dissemination of workforce and labor 
                                market information;
                          (ix) conducting research and demonstration 
                      projects related to meeting the employment and 
                      education needs of adult and dislocated workers;
                          (x) implementing promising services for 
                      workers and businesses, which may include 
                      providing support for education, training, skill 
                      upgrading, and statewide networking for employees 
                      to become workplace

[[Page 128 STAT. 1524]]

                      learning advisors and maintain proficiency in 
                      carrying out the activities associated with such 
                      advising;
                          (xi) providing incentive grants to local areas 
                      for performance by the local areas on local 
                      performance accountability measures described in 
                      section 116(c);
                          (xii) adopting, calculating, or commissioning 
                      for approval an economic self-sufficiency standard 
                      for the State that specifies the income needs of 
                      families, by family size, the number and ages of 
                      children in the family, and substate geographical 
                      considerations;
                          (xiii) developing and disseminating common 
                      intake procedures and related items, including 
                      registration processes, materials, or software; 
                      and
                          (xiv) providing technical assistance to local 
                      areas that are implementing pay-for-performance 
                      contract strategies, which technical assistance 
                      may include providing assistance with data 
                      collection, meeting data entry requirements, 
                      identifying levels of performance, and conducting 
                      evaluations of such strategies.
                    (B) Limitation.--
                          (i) In general.--Of the funds allotted to a 
                      State under sections 127(b) and 132(b) and 
                      reserved as described in sections 128(a) and 
                      133(a)(1) for a fiscal year--
                                    (I) not more than 5 percent of the 
                                amount allotted under section 127(b)(1);
                                    (II) not more than 5 percent of the 
                                amount allotted under section 132(b)(1); 
                                and
                                    (III) not more than 5 percent of the 
                                amount allotted under section 132(b)(2),
                      may be used by the State for the administration of 
                      statewide youth workforce investment activities 
                      carried out under section 129 and statewide 
                      employment and training activities carried out 
                      under this section.
                          (ii) Use of funds.--Funds made available for 
                      administrative costs under clause (i) may be used 
                      for the administrative cost of any of the 
                      statewide youth workforce investment activities or 
                      statewide employment and training activities, 
                      regardless of whether the funds were allotted to 
                      the State under section 127(b)(1) or paragraph (1) 
                      or (2) of section 132(b).

    (b) Local Employment and Training Activities.--Funds allocated to a 
local area for adults under paragraph (2)(A) or (3), as appropriate, of 
section 133(b), and funds allocated to a local area for dislocated 
workers under section 133(b)(2)(B)--
            (1) shall be used to carry out employment and training 
        activities described in subsection (c) for adults or dislocated 
        workers, respectively; and
            (2) may be used to carry out employment and training 
        activities described in subsection (d) for adults or dislocated 
        workers, respectively.

    (c) Required Local Employment and Training Activities.--
            (1) In general.--
                    (A) Allocated funds.--Funds allocated to a local 
                area for adults under paragraph (2)(A) or (3), as 
                appropriate, of section 133(b), and funds allocated to 
                the local area

[[Page 128 STAT. 1525]]

                for dislocated workers under section 133(b)(2)(B), shall 
                be used--
                          (i) to establish a one-stop delivery system 
                      described in section 121(e);
                          (ii) to provide the career services described 
                      in paragraph (2) to adults and dislocated workers, 
                      respectively, through the one-stop delivery system 
                      in accordance with such paragraph;
                          (iii) to provide training services described 
                      in paragraph (3) to adults and dislocated workers, 
                      respectively, described in such paragraph;
                          (iv) to establish and develop relationships 
                      and networks with large and small employers and 
                      their intermediaries; and
                          (v) to develop, convene, or implement industry 
                      or sector partnerships.
                    (B) Other funds.--Consistent with subsections (h) 
                and (i) of section 121, a portion of the funds made 
                available under Federal law authorizing the programs and 
                activities described in section 121(b)(1)(B), including 
                the Wagner-Peyser Act (29 U.S.C. 49 et seq.), shall be 
                used as described in clauses (i) and (ii) of 
                subparagraph (A), to the extent not inconsistent with 
                the Federal law involved.
            (2) Career services.--
                    (A) Services provided.--Funds described in paragraph 
                (1) shall be used to provide career services, which 
                shall be available to individuals who are adults or 
                dislocated workers through the one-stop delivery system 
                and shall, at a minimum, include--
                          (i) <<NOTE: Determinations.>>  determinations 
                      of whether the individuals are eligible to receive 
                      assistance under this subtitle;
                          (ii) outreach, intake (which may include 
                      worker profiling), and orientation to the 
                      information and other services available through 
                      the one-stop delivery system;
                          (iii) <<NOTE: Assessment.>>  initial 
                      assessment of skill levels (including literacy, 
                      numeracy, and English language proficiency), 
                      aptitudes, abilities (including skills gaps), and 
                      supportive service needs;
                          (iv) labor exchange services, including--
                                    (I) job search and placement 
                                assistance and, in appropriate cases, 
                                career counseling, including--
                                            (aa) provision of 
                                        information on in-demand 
                                        industry sectors and 
                                        occupations; and
                                            (bb) provision of 
                                        information on nontraditional 
                                        employment; and
                                    (II) appropriate recruitment and 
                                other business services on behalf of 
                                employers, including small employers, in 
                                the local area, which services may 
                                include services described in this 
                                subsection, such as providing 
                                information and referral to specialized 
                                business services not traditionally 
                                offered through the one-stop delivery 
                                system;
                          (v) provision of referrals to and coordination 
                      of activities with other programs and services, 
                      including programs and services within the one-
                      stop delivery

[[Page 128 STAT. 1526]]

                      system and, in appropriate cases, other workforce 
                      development programs;
                          (vi) provision of workforce and labor market 
                      employment statistics information, including the 
                      provision of accurate information relating to 
                      local, regional, and national labor market areas, 
                      including--
                                    (I) job vacancy listings in such 
                                labor market areas;
                                    (II) information on job skills 
                                necessary to obtain the jobs described 
                                in subclause (I); and
                                    (III) information relating to local 
                                occupations in demand and the earnings, 
                                skill requirements, and opportunities 
                                for advancement for such occupations; 
                                and
                          (vii) provision of performance information and 
                      program cost information on eligible providers of 
                      training services as described in section 122, 
                      provided by program, and eligible providers of 
                      youth workforce investment activities described in 
                      section 123, providers of adult education 
                      described in title II, providers of career and 
                      technical education activities at the 
                      postsecondary level, and career and technical 
                      education activities available to school dropouts, 
                      under the Carl D. Perkins Career and Technical 
                      Education Act of 2006 (20 U.S.C. 2301 et seq.), 
                      and providers of vocational rehabilitation 
                      services described in title I of the 
                      Rehabilitation Act of 1973 (29 U.S.C. 720 et 
                      seq.);
                          (viii) provision of information, in formats 
                      that are usable by and understandable to one-stop 
                      center customers, regarding how the local area is 
                      performing on the local performance accountability 
                      measures described in section 116(c) and any 
                      additional performance information with respect to 
                      the one-stop delivery system in the local area;
                          (ix)(I) provision of information, in formats 
                      that are usable by and understandable to one-stop 
                      center customers, relating to the availability of 
                      supportive services or assistance, including child 
                      care, child support, medical or child health 
                      assistance under title XIX or XXI of the Social 
                      Security Act (42 U.S.C. 1396 et seq. and 1397aa et 
                      seq.), benefits under the supplemental nutrition 
                      assistance program established under the Food and 
                      Nutrition Act of 2008 (7 U.S.C. 2011 et seq.), 
                      assistance through the earned income tax credit 
                      under section 32 of the Internal Revenue Code of 
                      1986, and assistance under a State program for 
                      temporary assistance for needy families funded 
                      under part A of title IV of the Social Security 
                      Act (42 U.S.C. 601 et seq.) and other supportive 
                      services and transportation provided through funds 
                      made available under such part, available in the 
                      local area; and
                          (II) referral to the services or assistance 
                      described in subclause (I), as appropriate;
                          (x) <<NOTE: Claims.>>  provision of 
                      information and assistance regarding filing claims 
                      for unemployment compensation;

[[Page 128 STAT. 1527]]

                          (xi) assistance in establishing eligibility 
                      for programs of financial aid assistance for 
                      training and education programs that are not 
                      funded under this Act;
                          (xii) services, if determined to be 
                      appropriate in order for an individual to obtain 
                      or retain employment, that consist of--
                                    (I) comprehensive and specialized 
                                assessments of the skill levels and 
                                service needs of adults and dislocated 
                                workers, which may include--
                                            (aa) diagnostic testing and 
                                        use of other assessment tools; 
                                        and
                                            (bb) in-depth interviewing 
                                        and evaluation to identify 
                                        employment barriers and 
                                        appropriate employment goals;
                                    (II) development of an individual 
                                employment plan, to identify the 
                                employment goals, appropriate 
                                achievement objectives, and appropriate 
                                combination of services for the 
                                participant to achieve the employment 
                                goals, including providing information 
                                on eligible providers of training 
                                services pursuant to paragraph 
                                (3)(F)(ii), and career pathways to 
                                attain career objectives;
                                    (III) group counseling;
                                    (IV) individual counseling;
                                    (V) career planning;
                                    (VI) short-term prevocational 
                                services, including development of 
                                learning skills, communication skills, 
                                interviewing skills, punctuality, 
                                personal maintenance skills, and 
                                professional conduct, to prepare 
                                individuals for unsubsidized employment 
                                or training;
                                    (VII) internships and work 
                                experiences that are linked to careers;
                                    (VIII) workforce preparation 
                                activities;
                                    (IX) financial literacy services, 
                                such as the activities described in 
                                section 129(b)(2)(D);
                                    (X) out-of-area job search 
                                assistance and relocation assistance; or
                                    (XI) English language acquisition 
                                and integrated education and training 
                                programs; and
                          (xiii) <<NOTE: Time period.>>  followup 
                      services, including counseling regarding the 
                      workplace, for participants in workforce 
                      investment activities authorized under this 
                      subtitle who are placed in unsubsidized 
                      employment, for not less than 12 months after the 
                      first day of the employment, as appropriate.
                    (B) Use of previous assessments.--A one-stop 
                operator or one-stop partner shall not be required to 
                conduct a new interview, evaluation, or assessment of a 
                participant under subparagraph (A)(xii) if the one-stop 
                operator or one-stop partner determines that it is 
                appropriate to use a recent interview, evaluation, or 
                assessment of the participant conducted pursuant to 
                another education or training program.
                    (C) Delivery of services.--The career services 
                described in subparagraph (A) shall be provided through 
                the one-stop delivery system--

[[Page 128 STAT. 1528]]

                          (i) directly through one-stop operators 
                      identified pursuant to section 121(d); or
                          (ii) <<NOTE: Contracts.>>  through contracts 
                      with service providers, which may include 
                      contracts with public, private for-profit, and 
                      private nonprofit service providers, approved by 
                      the local board.
            (3) Training services.--
                    (A) In general.--
                          (i) Eligibility.--Except as provided in clause 
                      (ii), funds allocated to a local area for adults 
                      under paragraph (2)(A) or (3), as appropriate, of 
                      section 133(b), and funds allocated to the local 
                      area for dislocated workers under section 
                      133(b)(2)(B), shall be used to provide training 
                      services to adults and dislocated workers, 
                      respectively--
                                    (I) who, after an interview, 
                                evaluation, or assessment, and career 
                                planning, have been determined by a one-
                                stop operator or one-stop partner, as 
                                appropriate, to--
                                            (aa) be unlikely or unable 
                                        to obtain or retain employment, 
                                        that leads to economic self-
                                        sufficiency or wages comparable 
                                        to or higher than wages from 
                                        previous employment, through the 
                                        career services described in 
                                        paragraph (2)(A)(xii);
                                            (bb) be in need of training 
                                        services to obtain or retain 
                                        employment that leads to 
                                        economic self-sufficiency or 
                                        wages comparable to or higher 
                                        than wages from previous 
                                        employment; and
                                            (cc) have the skills and 
                                        qualifications to successfully 
                                        participate in the selected 
                                        program of training services;
                                    (II) who select programs of training 
                                services that are directly linked to the 
                                employment opportunities in the local 
                                area or the planning region, or in 
                                another area to which the adults or 
                                dislocated workers are willing to 
                                commute or relocate;
                                    (III) who meet the requirements of 
                                subparagraph (B); and
                                    (IV) who are determined to be 
                                eligible in accordance with the priority 
                                system in effect under subparagraph (E).
                          (ii) Use of previous assessments.--A one-stop 
                      operator or one-stop partner shall not be required 
                      to conduct a new interview, evaluation, or 
                      assessment of a participant under clause (i) if 
                      the one-stop operator or one-stop partner 
                      determines that it is appropriate to use a recent 
                      interview, evaluation, or assessment of the 
                      participant conducted pursuant to another 
                      education or training program.
                          (iii) Rule of construction.--Nothing in this 
                      subparagraph shall be construed to mean an 
                      individual is required to receive career services 
                      prior to receiving training services.
                    (B) Qualification.--

[[Page 128 STAT. 1529]]

                          (i) Requirement.--Notwithstanding section 479B 
                      of the Higher Education Act of 1965 (20 U.S.C. 
                      1087uu) and except as provided in clause (ii), 
                      provision of such training services shall be 
                      limited to individuals who--
                                    (I) are unable to obtain other grant 
                                assistance for such services, including 
                                Federal Pell Grants established under 
                                subpart 1 of part A of title IV of the 
                                Higher Education Act of 1965 (20 U.S.C. 
                                1070a et seq.); or
                                    (II) require assistance beyond the 
                                assistance made available under other 
                                grant assistance programs, including 
                                Federal Pell Grants.
                          (ii) Reimbursements.--Training services may be 
                      provided under this paragraph to an individual who 
                      otherwise meets the requirements of this paragraph 
                      while an application for a Federal Pell Grant is 
                      pending, except that if such individual is 
                      subsequently awarded a Federal Pell Grant, 
                      appropriate reimbursement shall be made to the 
                      local area from such Federal Pell Grant.
                          (iii) Consideration.--In determining whether 
                      an individual requires assistance under clause 
                      (i)(II), a one-stop operator (or one-stop partner, 
                      where appropriate) may take into consideration the 
                      full cost of participating in training services, 
                      including the costs of dependent care and 
                      transportation, and other appropriate costs.
                    (C) Provider qualification.--Training services shall 
                be provided through providers identified in accordance 
                with section 122.
                    (D) Training services.--Training services may 
                include--
                          (i) occupational skills training, including 
                      training for nontraditional employment;
                          (ii) on-the-job training;
                          (iii) incumbent worker training in accordance 
                      with subsection (d)(4);
                          (iv) programs that combine workplace training 
                      with related instruction, which may include 
                      cooperative education programs;
                          (v) training programs operated by the private 
                      sector;
                          (vi) skill upgrading and retraining;
                          (vii) entrepreneurial training;
                          (viii) transitional jobs in accordance with 
                      subsection (d)(5);
                          (ix) job readiness training provided in 
                      combination with services described in any of 
                      clauses (i) through (viii);
                          (x) adult education and literacy activities, 
                      including activities of English language 
                      acquisition and integrated education and training 
                      programs, provided concurrently or in combination 
                      with services described in any of clauses (i) 
                      through (vii); and
                          (xi) customized training conducted with a 
                      commitment by an employer or group of employers to 
                      employ

[[Page 128 STAT. 1530]]

                      an individual upon successful completion of the 
                      training.
                    (E) Priority.--With respect to funds allocated to a 
                local area for adult employment and training activities 
                under paragraph (2)(A) or (3) of section 133(b), 
                priority shall be given to recipients of public 
                assistance, other low-income individuals, and 
                individuals who are basic skills deficient for receipt 
                of career services described in paragraph (2)(A)(xii) 
                and training services. The appropriate local board and 
                the Governor shall direct the one-stop operators in the 
                local area with regard to making determinations related 
                to such priority.
                    (F) Consumer choice requirements.--
                          (i) In general.--Training services provided 
                      under this paragraph shall be provided in a manner 
                      that maximizes consumer choice in the selection of 
                      an eligible provider of such services.
                          (ii) Eligible providers.--Each local board, 
                      through one-stop centers, shall make available the 
                      list of eligible providers of training services 
                      described in section 122(d), and accompanying 
                      information, in accordance with section 122(d).
                          (iii) Individual training accounts.--An 
                      individual who seeks training services and who is 
                      eligible pursuant to subparagraph (A), may, in 
                      consultation with a career planner, select an 
                      eligible provider of training services from the 
                      list of providers described in clause (ii). Upon 
                      such selection, the one-stop operator involved 
                      shall, to the extent practicable, refer such 
                      individual to the eligible provider of training 
                      services, and arrange for payment for such 
                      services through an individual training account.
                          (iv) Coordination.--Each local board may, 
                      through one-stop centers, coordinate funding for 
                      individual training accounts with funding from 
                      other Federal, State, local, or private job 
                      training programs or sources to assist the 
                      individual in obtaining training services.
                          (v) Additional information.--Priority 
                      consideration shall, consistent with clause (i), 
                      be given to programs that lead to recognized 
                      postsecondary credentials that are aligned with 
                      in-demand industry sectors or occupations in the 
                      local area involved.
                    (G) Use of individual training accounts.--
                          (i) In general.--Except as provided in clause 
                      (ii), training services provided under this 
                      paragraph shall be provided through the use of 
                      individual training accounts in accordance with 
                      this paragraph, and shall be provided to eligible 
                      individuals through the one-stop delivery system.
                          (ii) <<NOTE: Determinations.>>  Training 
                      contracts.--Training services authorized under 
                      this paragraph may be provided pursuant to a 
                      contract for services in lieu of an individual 
                      training account if--
                                    (I) the requirements of subparagraph 
                                (F) are met;

[[Page 128 STAT. 1531]]

                                    (II) such services are on-the-job 
                                training, customized training, incumbent 
                                worker training, or transitional 
                                employment;
                                    (III) the local board determines 
                                there are an insufficient number of 
                                eligible providers of training services 
                                in the local area involved (such as in a 
                                rural area) to accomplish the purposes 
                                of a system of individual training 
                                accounts;
                                    (IV) the local board determines that 
                                there is a training services program of 
                                demonstrated effectiveness offered in 
                                the local area by a community-based 
                                organization or another private 
                                organization to serve individuals with 
                                barriers to employment;
                                    (V) the local board determines 
                                that--
                                            (aa) it would be most 
                                        appropriate to award a contract 
                                        to an institution of higher 
                                        education or other eligible 
                                        provider of training services in 
                                        order to facilitate the training 
                                        of multiple individuals in in-
                                        demand industry sectors or 
                                        occupations; and
                                            (bb) such contract does not 
                                        limit customer choice; or
                                    (VI) the contract is a pay-for-
                                performance contract.
                          (iii) Linkage to occupations in demand.--
                      Training services provided under this paragraph 
                      shall be directly linked to an in-demand industry 
                      sector or occupation in the local area or the 
                      planning region, or in another area to which an 
                      adult or dislocated worker receiving such services 
                      is willing to relocate, except that a local board 
                      may approve training services for occupations 
                      determined by the local board to be in sectors of 
                      the economy that have a high potential for 
                      sustained demand or growth in the local area.
                          (iv) <<NOTE: Contracts.>>  Rule of 
                      construction.--Nothing in this paragraph shall be 
                      construed to preclude the combined use of 
                      individual training accounts and contracts in the 
                      provision of training services, including 
                      arrangements that allow individuals receiving 
                      individual training accounts to obtain training 
                      services that are contracted for under clause 
                      (ii).
                    (H) Reimbursement for on-the-job training.--
                          (i) Reimbursement level.--For purposes of the 
                      provision of on-the-job training under this 
                      paragraph, the Governor or local board involved 
                      may increase the amount of the reimbursement 
                      described in section 3(44) to an amount of up to 
                      75 percent of the wage rate of a participant for a 
                      program carried out under chapter 2 or this 
                      chapter, if, respectively--
                                    (I) the Governor approves the 
                                increase with respect to a program 
                                carried out with funds reserved by the 
                                State under that chapter, taking into 
                                account the factors described in clause 
                                (ii); or

[[Page 128 STAT. 1532]]

                                    (II) the local board approves the 
                                increase with respect to a program 
                                carried out with funds allocated to a 
                                local area under such chapter, taking 
                                into account those factors.
                          (ii) Factors.--For purposes of clause (i), the 
                      Governor or local board, respectively, shall take 
                      into account factors consisting of--
                                    (I) the characteristics of the 
                                participants;
                                    (II) the size of the employer;
                                    (III) the quality of employer-
                                provided training and advancement 
                                opportunities; and
                                    (IV) such other factors as the 
                                Governor or local board, respectively, 
                                may determine to be appropriate, which 
                                may include the number of employees 
                                participating in the training, wage and 
                                benefit levels of those employees (at 
                                present and anticipated upon completion 
                                of the training), and relation of the 
                                training to the competitiveness of a 
                                participant.

    (d) Permissible Local Employment and Training Activities.--
            (1) In general.--
                    (A) Activities.--Funds allocated to a local area for 
                adults under paragraph (2)(A) or (3), as appropriate, of 
                section 133(b), and funds allocated to the local area 
                for dislocated workers under section 133(b)(2)(B), may 
                be used to provide, through the one-stop delivery system 
                involved (and through collaboration with the local 
                board, for the purpose of the activities described in 
                clauses (vii) and (ix))--
                          (i) customized screening and referral of 
                      qualified participants in training services 
                      described in subsection (c)(3) to employers;
                          (ii) customized employment-related services to 
                      employers, employer associations, or other such 
                      organizations on a fee-for-service basis;
                          (iii) implementation of a pay-for-performance 
                      contract strategy for training services, for which 
                      the local board may reserve and use not more than 
                      10 percent of the total funds allocated to the 
                      local area under paragraph (2) or (3) of section 
                      133(b);
                          (iv) customer support to enable individuals 
                      with barriers to employment (including individuals 
                      with disabilities) and veterans, to navigate among 
                      multiple services and activities for such 
                      populations;
                          (v) technical assistance for one-stop 
                      operators, one-stop partners, and eligible 
                      providers of training services, regarding the 
                      provision of services to individuals with 
                      disabilities in local areas, including the 
                      development and training of staff, the provision 
                      of outreach, intake, assessments, and service 
                      delivery, the coordination of services across 
                      providers and programs, and the development of 
                      performance accountability measures;
                          (vi) employment and training activities 
                      provided in coordination with--
                                    (I) child support enforcement 
                                activities of the State and local 
                                agencies carrying out part D of

[[Page 128 STAT. 1533]]

                                title IV of the Social Security Act (42 
                                U.S.C. 651 et seq.);
                                    (II) child support services, and 
                                assistance, provided by State and local 
                                agencies carrying out part D of title IV 
                                of the Social Security Act (42 U.S.C. 
                                651 et seq.);
                                    (III) cooperative extension programs 
                                carried out by the Department of 
                                Agriculture; and
                                    (IV) activities to facilitate remote 
                                access to services provided through a 
                                one-stop delivery system, including 
                                facilitating access through the use of 
                                technology;
                          (vii) activities--
                                    (I) to improve coordination between 
                                workforce investment activities and 
                                economic development activities carried 
                                out within the local area involved, and 
                                to promote entrepreneurial skills 
                                training and microenterprise services;
                                    (II) to improve services and 
                                linkages between the local workforce 
                                investment system (including the local 
                                one-stop delivery system) and employers, 
                                including small employers, in the local 
                                area, through services described in this 
                                section; and
                                    (III) to strengthen linkages between 
                                the one-stop delivery system and 
                                unemployment insurance programs;
                          (viii) training programs for displaced 
                      homemakers and for individuals training for 
                      nontraditional occupations, in conjunction with 
                      programs operated in the local area;
                          (ix) activities to provide business services 
                      and strategies that meet the workforce investment 
                      needs of area employers, as determined by the 
                      local board, consistent with the local plan under 
                      section 108, which services--
                                    (I) may be provided through 
                                effective business intermediaries 
                                working in conjunction with the local 
                                board, and may also be provided on a 
                                fee-for-service basis or through the 
                                leveraging of economic development, 
                                philanthropic, and other public and 
                                private resources in a manner determined 
                                appropriate by the local board; and
                                    (II) may include--
                                            (aa) developing and 
                                        implementing industry sector 
                                        strategies (including strategies 
                                        involving industry partnerships, 
                                        regional skills alliances, 
                                        industry skill panels, and 
                                        sectoral skills partnerships);
                                            (bb) developing and 
                                        delivering innovative workforce 
                                        investment services and 
                                        strategies for area employers, 
                                        which may include career 
                                        pathways, skills upgrading, 
                                        skill standard development and 
                                        certification for recognized 
                                        postsecondary credential or 
                                        other employer use, 
                                        apprenticeship, and other 
                                        effective initiatives for 
                                        meeting the workforce investment 
                                        needs of area employers and 
                                        workers;

[[Page 128 STAT. 1534]]

                                            (cc) assistance to area 
                                        employers in managing reductions 
                                        in force in coordination with 
                                        rapid response activities 
                                        provided under subsection 
                                        (a)(2)(A) and with strategies 
                                        for the aversion of layoffs, 
                                        which strategies may include 
                                        early identification of firms at 
                                        risk of layoffs, use of 
                                        feasibility studies to assess 
                                        the needs of and options for at-
                                        risk firms, and the delivery of 
                                        employment and training 
                                        activities to address risk 
                                        factors; and
                                            (dd) the marketing of 
                                        business services offered under 
                                        this title, to appropriate area 
                                        employers, including small and 
                                        mid-sized employers;
                          (x) activities to adjust the economic self-
                      sufficiency standards referred to in subsection 
                      (a)(3)(A)(xii) for local factors, or activities to 
                      adopt, calculate, or commission for approval, 
                      economic self-sufficiency standards for the local 
                      areas that specify the income needs of families, 
                      by family size, the number and ages of children in 
                      the family, and substate geographical 
                      considerations;
                          (xi) improved coordination between employment 
                      and training activities and programs carried out 
                      in the local area for individuals with 
                      disabilities, including programs carried out by 
                      State agencies relating to intellectual 
                      disabilities and developmental disabilities, 
                      activities carried out by Statewide Independent 
                      Living Councils established under section 705 of 
                      the Rehabilitation Act of 1973 (29 U.S.C. 796d), 
                      programs funded under part B of chapter 1 of title 
                      VII of such Act (29 U.S.C. 796e et seq.), and 
                      activities carried out by centers for independent 
                      living, as defined in section 702 of such Act (29 
                      U.S.C. 796a); and
                          (xii) implementation of promising services to 
                      workers and businesses, which may include support 
                      for education, training, skill upgrading, and 
                      statewide networking for employees to become 
                      workplace learning advisors and maintain 
                      proficiency in carrying out the activities 
                      associated with such advising.
                    (B) Work support activities for low-wage workers.--
                          (i) In general.--Funds allocated to a local 
                      area for adults under paragraph (2)(A) or (3), as 
                      appropriate, of section 133(b), and funds 
                      allocated to the local area for dislocated workers 
                      under section 133(b)(2)(B), may be used to 
                      provide, through the one-stop delivery system 
                      involved, work support activities designed to 
                      assist low-wage workers in retaining and enhancing 
                      employment. The one-stop partners of the system 
                      shall coordinate the appropriate programs and 
                      resources of the partners with the activities and 
                      resources provided under this subparagraph.
                          (ii) Activities.--The work support activities 
                      described in clause (i) may include the provision 
                      of activities described in this section through 
                      the one-stop delivery system in a manner that 
                      enhances the

[[Page 128 STAT. 1535]]

                      opportunities of such workers to participate in 
                      the activities, such as the provision of 
                      activities described in this section during 
                      nontraditional hours and the provision of onsite 
                      child care while such activities are being 
                      provided.
            (2) Supportive services.--Funds allocated to a local area 
        for adults under paragraph (2)(A) or (3), as appropriate, of 
        section 133(b), and funds allocated to the local area for 
        dislocated workers under section 133(b)(2)(B), may be used to 
        provide supportive services to adults and dislocated workers, 
        respectively--
                    (A) who are participating in programs with 
                activities authorized in paragraph (2) or (3) of 
                subsection (c); and
                    (B) who are unable to obtain such supportive 
                services through other programs providing such services.
            (3) Needs-related payments.--
                    (A) In general.--Funds allocated to a local area for 
                adults under paragraph (2)(A) or (3), as appropriate, of 
                section 133(b), and funds allocated to the local area 
                for dislocated workers under section 133(b)(2)(B), may 
                be used to provide needs-related payments to adults and 
                dislocated workers, respectively, who are unemployed and 
                do not qualify for (or have ceased to qualify for) 
                unemployment compensation for the purpose of enabling 
                such individuals to participate in programs of training 
                services under subsection (c)(3).
                    (B) <<NOTE: Time periods.>>  Additional eligibility 
                requirements.--In addition to the requirements contained 
                in subparagraph (A), a dislocated worker who has ceased 
                to qualify for unemployment compensation may be eligible 
                to receive needs-related payments under this paragraph 
                only if such worker was enrolled in the training 
                services--
                          (i) by the end of the 13th week after the most 
                      recent layoff that resulted in a determination of 
                      the worker's eligibility for employment and 
                      training activities for dislocated workers under 
                      this subtitle; or
                          (ii) if later, by the end of the 8th week 
                      after the worker is informed that a short-term 
                      layoff will exceed 6 months.
                    (C) Level of payments.--The level of a needs-related 
                payment made to a dislocated worker under this paragraph 
                shall not exceed the greater of--
                          (i) the applicable level of unemployment 
                      compensation; or
                          (ii) if such worker did not qualify for 
                      unemployment compensation, an amount equal to the 
                      poverty line, for an equivalent period, which 
                      amount shall be adjusted to reflect changes in 
                      total family income.
            (4) Incumbent worker training programs.--
                    (A) In general.--
                          (i) Standard reservation of funds.--The local 
                      board may reserve and use not more than 20 percent 
                      of the funds allocated to the local area involved 
                      under section 133(b) to pay for the Federal share 
                      of the cost of providing training through a 
                      training program for incumbent workers, carried 
                      out in accordance with this paragraph.

[[Page 128 STAT. 1536]]

                          (ii) Determination of eligibility.--For the 
                      purpose of determining the eligibility of an 
                      employer to receive funding under clause (i), the 
                      local board shall take into account factors 
                      consisting of--
                                    (I) the characteristics of the 
                                participants in the program;
                                    (II) the relationship of the 
                                training to the competitiveness of a 
                                participant and the employer; and
                                    (III) such other factors as the 
                                local board may determine to be 
                                appropriate, which may include the 
                                number of employees participating in the 
                                training, the wage and benefit levels of 
                                those employees (at present and 
                                anticipated upon completion of the 
                                training), and the existence of other 
                                training and advancement opportunities 
                                provided by the employer.
                          (iii) Statewide impact.--The Governor or State 
                      board involved may make recommendations to the 
                      local board for providing incumbent worker 
                      training that has statewide impact.
                    (B) Training activities.--The training program for 
                incumbent workers carried out under this paragraph shall 
                be carried out by the local board in conjunction with 
                the employers or groups of employers of such workers 
                (which may include employers in partnership with other 
                entities for the purposes of delivering training) for 
                the purpose of assisting such workers in obtaining the 
                skills necessary to retain employment or avert layoffs.
                    (C) Employer payment of non-federal share.--
                Employers participating in the program carried out under 
                this paragraph shall be required to pay for the non-
                Federal share of the cost of providing the training to 
                incumbent workers of the employers.
                    (D) Non-federal share.--
                          (i) Factors.--Subject to clause (ii), the 
                      local board shall establish the non-Federal share 
                      of such cost (taking into consideration such other 
                      factors as the number of employees participating 
                      in the training, the wage and benefit levels of 
                      the employees (at the beginning and anticipated 
                      upon completion of the training), the relationship 
                      of the training to the competitiveness of the 
                      employer and employees, and the availability of 
                      other employer-provided training and advancement 
                      opportunities.
                          (ii) Limits.--The non-Federal share shall not 
                      be less than--
                                    (I) 10 percent of the cost, for 
                                employers with not more than 50 
                                employees;
                                    (II) 25 percent of the cost, for 
                                employers with more than 50 employees 
                                but not more than 100 employees; and
                                    (III) 50 percent of the cost, for 
                                employers with more than 100 employees.
                          (iii) Calculation of employer share.--The non-
                      Federal share provided by an employer 
                      participating in the program may include the 
                      amount of the wages

[[Page 128 STAT. 1537]]

                      paid by the employer to a worker while the worker 
                      is attending a training program under this 
                      paragraph. The employer may provide the share in 
                      cash or in kind, fairly evaluated.
            (5) Transitional jobs.--The local board may use not more 
        than 10 percent of the funds allocated to the local area 
        involved under section 133(b) to provide transitional jobs under 
        subsection (c)(3) that--
                    (A) are time-limited work experiences that are 
                subsidized and are in the public, private, or nonprofit 
                sectors for individuals with barriers to employment who 
                are chronically unemployed or have an inconsistent work 
                history;
                    (B) are combined with comprehensive employment and 
                supportive services; and
                    (C) are designed to assist the individuals described 
                in subparagraph (A) to establish a work history, 
                demonstrate success in the workplace, and develop the 
                skills that lead to entry into and retention in 
                unsubsidized employment.

           CHAPTER 4--GENERAL WORKFORCE INVESTMENT PROVISIONS

SEC. 136. <<NOTE: 29 USC 3181.>>  AUTHORIZATION OF APPROPRIATIONS.

    (a) Youth Workforce Investment Activities.--There are authorized to 
be appropriated to carry out the activities described in section 127(a), 
$820,430,000 for fiscal year 2015, $883,800,000 for fiscal year 2016, 
$902,139,000 for fiscal year 2017, $922,148,000 for fiscal year 2018, 
$943,828,000 for fiscal year 2019, and $963,837,000 for fiscal year 
2020.
    (b) Adult Employment and Training Activities.--There are authorized 
to be appropriated to carry out the activities described in section 
132(a)(1), $766,080,000 for fiscal year 2015, $825,252,000 for fiscal 
year 2016, $842,376,000 for fiscal year 2017, $861,060,000 for fiscal 
year 2018, $881,303,000 for fiscal year 2019, and $899,987,000 for 
fiscal year 2020.
    (c) Dislocated Worker Employment and Training Activities.--There are 
authorized to be appropriated to carry out the activities described in 
section 132(a)(2), $1,222,457,000 for fiscal year 2015, $1,316,880,000 
for fiscal year 2016, $1,344,205,000 for fiscal year 2017, 
$1,374,019,000 for fiscal year 2018, $1,406,322,000 for fiscal year 
2019, and $1,436,137,000 for fiscal year 2020.

                          Subtitle C--Job Corps

SEC. 141. <<NOTE: 29 USC 3191.>>  PURPOSES.

    The purposes of this subtitle are--
            (1) to maintain a national Job Corps program, carried out in 
        partnership with States and communities, to--
                    (A) assist eligible youth to connect to the labor 
                force by providing them with intensive social, academic, 
                career and technical education, and service-learning 
                opportunities, in primarily residential centers, in 
                order for such youth to obtain secondary school diplomas 
                or recognized postsecondary credentials leading to--

[[Page 128 STAT. 1538]]

                          (i) successful careers, in in-demand industry 
                      sectors or occupations or the Armed Forces, that 
                      will result in economic self-sufficiency and 
                      opportunities for advancement; or
                          (ii) enrollment in postsecondary education, 
                      including an apprenticeship program; and
                    (B) support responsible citizenship;
            (2) to set forth standards and procedures for selecting 
        individuals as enrollees in the Job Corps;
            (3) to authorize the establishment of Job Corps centers in 
        which enrollees will participate in intensive programs of 
        activities described in this subtitle; and
            (4) to prescribe various other powers, duties, and 
        responsibilities incident to the operation and continuing 
        development of the Job Corps.
SEC. 142. <<NOTE: 29 USC 3192.>>  DEFINITIONS.

    In this subtitle:
            (1) Applicable local board.--The term ``applicable local 
        board'' means a local board--
                    (A) that provides information for a Job Corps center 
                on local employment opportunities and the job skills 
                needed to obtain the opportunities; and
                    (B) that serves communities in which the graduates 
                of the Job Corps center seek employment.
            (2) Applicable one-stop center.--The term ``applicable one-
        stop center'' means a one-stop center that provides services, 
        such as referral, assessment, recruitment, and placement, to 
        support the purposes of the Job Corps.
            (3) Enrollee.--The term ``enrollee'' means an individual who 
        has voluntarily applied for, been selected for, and enrolled in 
        the Job Corps program, and remains with the program, but has not 
        yet become a graduate.
            (4) Former enrollee.--The term ``former enrollee'' means an 
        individual who has voluntarily applied for, been selected for, 
        and enrolled in the Job Corps program, but left the program 
        prior to becoming a graduate.
            (5) Graduate.--The term ``graduate'' means an individual who 
        has voluntarily applied for, been selected for, and enrolled in 
        the Job Corps program and who, as a result of participation in 
        the Job Corps program, has received a secondary school diploma 
        or recognized equivalent, or completed the requirements of a 
        career and technical education and training program that 
        prepares individuals for employment leading to economic self-
        sufficiency or entrance into postsecondary education or 
        training.
            (6) Job corps.--The term ``Job Corps'' means the Job Corps 
        described in section 143.
            (7) Job corps center.--The term ``Job Corps center'' means a 
        center described in section 147.
            (8) Operator.--The term ``operator'' means an entity 
        selected under this subtitle to operate a Job Corps center.
            (9) Region.--The term ``region'' means an area defined by 
        the Secretary.
            (10) Service provider.--The term ``service provider'' means 
        an entity selected under this subtitle to provide services 
        described in this subtitle to a Job Corps center.

[[Page 128 STAT. 1539]]

SEC. 143. <<NOTE: 29 USC 3193.>>  ESTABLISHMENT.

    There shall be within the Department of Labor a ``Job Corps''.
SEC. 144. <<NOTE: 29 USC 3194.>>  INDIVIDUALS ELIGIBLE FOR THE JOB 
                        CORPS.

    (a) In General.--To be eligible to become an enrollee, an individual 
shall be--
            (1) not less than age 16 and not more than age 21 on the 
        date of enrollment, except that--
                    (A) not more than 20 percent of the individuals 
                enrolled in the Job Corps may be not less than age 22 
                and not more than age 24 on the date of enrollment; and
                    (B) either such maximum age limitation may be waived 
                by the Secretary, in accordance with regulations of the 
                Secretary, in the case of an individual with a 
                disability;
            (2) a low-income individual; and
            (3) an individual who is one or more of the following:
                    (A) Basic skills deficient.
                    (B) A school dropout.
                    (C) A homeless individual (as defined in section 
                41403(6) of the Violence Against Women Act of 1994 (42 
                U.S.C. 14043e-2(6))), a homeless child or youth (as 
                defined in section 725(2) of the McKinney-Vento Homeless 
                Assistance Act (42 U.S.C. 11434a(2))), a runaway, an 
                individual in foster care, or an individual who was in 
                foster care and has aged out of the foster care system.
                    (D) A parent.
                    (E) An individual who requires additional education, 
                career and technical education or training, or workforce 
                preparation skills to be able to obtain and retain 
                employment that leads to economic self-sufficiency.

    (b) Special Rule for Veterans.--Notwithstanding the requirement of 
subsection (a)(2), a veteran shall be eligible to become an enrollee 
under subsection (a) if the individual--
            (1) meets the requirements of paragraphs (1) and (3) of such 
        subsection; and
            (2) <<NOTE: Time period.>>  does not meet the requirement of 
        subsection (a)(2) because the military income earned by such 
        individual within the 6-month period prior to the individual's 
        application for Job Corps prevents the individual from meeting 
        such requirement.
SEC. 145. <<NOTE: 29 USC 3195.>>  RECRUITMENT, SCREENING, 
                        SELECTION, AND ASSIGNMENT OF ENROLLEES.

    (a) Standards and Procedures.--
            (1) In general.--The Secretary shall prescribe specific 
        standards and procedures for the recruitment, screening, and 
        selection of eligible applicants for the Job Corps, after 
        considering recommendations from Governors of States, local 
        boards, and other interested parties.
            (2) Methods.--In prescribing standards and procedures under 
        paragraph (1), the Secretary, at a minimum, shall--
                    (A) <<NOTE: Deadline.>>  prescribe procedures for 
                informing enrollees that drug tests will be administered 
                to the enrollees and the results received within 45 days 
                after the enrollees enroll in the Job Corps;
                    (B) establish standards for recruitment of Job Corps 
                applicants;

[[Page 128 STAT. 1540]]

                    (C) establish standards and procedures for--
                          (i) determining, for each applicant, whether 
                      the educational and career and technical education 
                      and training needs of the applicant can best be 
                      met through the Job Corps program or an 
                      alternative program in the community in which the 
                      applicant resides; and
                          (ii) obtaining from each applicant pertinent 
                      data relating to background, needs, and interests 
                      for determining eligibility and potential 
                      assignment;
                    (D) where appropriate, take measures to improve the 
                professional capability of the individuals conducting 
                screening of the applicants; and
                    (E) assure appropriate representation of enrollees 
                from urban areas and from rural areas.
            (3) Implementation.--The standards and procedures shall be 
        implemented through arrangements with--
                    (A) applicable one-stop centers;
                    (B) organizations that have a demonstrated record of 
                effectiveness in serving at-risk youth and placing such 
                youth into employment, including community action 
                agencies, business organizations, or labor 
                organizations; and
                    (C) child welfare agencies that are responsible for 
                children and youth eligible for benefits and services 
                under section 477 of the Social Security Act (42 U.S.C. 
                677).
            (4) Consultation.--The standards and procedures shall 
        provide for necessary consultation with individuals and 
        organizations, including court, probation, parole, law 
        enforcement, education, welfare, and medical authorities and 
        advisers.
            (5) <<NOTE: Contracts.>>  Reimbursement.--The Secretary is 
        authorized to enter into contracts with and make payments to 
        individuals and organizations for the cost of conducting 
        recruitment, screening, and selection of eligible applicants for 
        the Job Corps, as provided for in this section. The Secretary 
        shall make no payment to any individual or organization solely 
        as compensation for referring the names of applicants for the 
        Job Corps.

    (b) Special Limitations on Selection.--
            (1) <<NOTE: Determination.>>  In general.--No individual 
        shall be selected as an enrollee unless the individual or 
        organization implementing the standards and procedures described 
        in subsection (a) determines that--
                    (A) there is a reasonable expectation that the 
                individual considered for selection can participate 
                successfully in group situations and activities, and is 
                not likely to engage in behavior that would prevent 
                other enrollees from receiving the benefit of the Job 
                Corps program or be incompatible with the maintenance of 
                sound discipline and satisfactory relationships between 
                the Job Corps center to which the individual might be 
                assigned and communities surrounding the Job Corps 
                center;
                    (B) the individual manifests a basic understanding 
                of both the rules to which the individual will be 
                subject and of the consequences of failure to observe 
                the rules, and agrees to comply with such rules; and
                    (C) the individual has passed a background check 
                conducted in accordance with procedures established by 
                the Secretary and with applicable State and local laws.

[[Page 128 STAT. 1541]]

            (2) Individuals on probation, parole, or supervised 
        release.--An individual on probation, parole, or supervised 
        release may be selected as an enrollee only if release from the 
        supervision of the probation or parole official involved is 
        satisfactory to the official and the Secretary and does not 
        violate applicable laws (including regulations). No individual 
        shall be denied a position in the Job Corps solely on the basis 
        of individual contact with the criminal justice system except 
        for a disqualifying conviction as specified in paragraph (3).
            (3) Individuals convicted of certain crimes.--An individual 
        shall not be selected as an enrollee if the individual has been 
        convicted of a felony consisting of murder (as described in 
        section 1111 of title 18, United States Code), child abuse, or a 
        crime involving rape or sexual assault.

    (c) Assignment Plan.--
            (1) <<NOTE: Time period.>>  In general.--Every 2 years, the 
        Secretary shall develop and implement a plan for assigning 
        enrollees to Job Corps centers. In developing the plan, the 
        Secretary shall, based on the analysis described in paragraph 
        (2), establish targets, applicable to each Job Corps center, 
        for--
                    (A) the maximum attainable percentage of enrollees 
                at the Job Corps center that reside in the State in 
                which the center is located; and
                    (B) the maximum attainable percentage of enrollees 
                at the Job Corps center that reside in the region in 
                which the center is located, and in surrounding regions.
            (2) <<NOTE: Time period. Consultation.>>  Analysis.--In 
        order to develop the plan described in paragraph (1), every 2 
        years the Secretary, in consultation with operators of Job Corps 
        centers, shall analyze relevant factors relating to each Job 
        Corps center, including--
                    (A) the size of the population of individuals 
                eligible to participate in Job Corps in the State and 
                region in which the Job Corps center is located, and in 
                surrounding regions;
                    (B) the relative demand for participation in the Job 
                Corps in the State and region, and in surrounding 
                regions;
                    (C) the capacity and utilization of the Job Corps 
                center, including the education, training, and 
                supportive services provided through the center; and
                    (D) the performance of the Job Corps center relating 
                to the expected levels of performance for the indicators 
                described in section 159(c)(1), and whether any actions 
                have been taken with respect to such center pursuant to 
                paragraphs (2) and (3) of section 159(f).

    (d) Assignment of Individual Enrollees.--
            (1) In general.--After an individual has been selected for 
        the Job Corps in accordance with the standards and procedures of 
        the Secretary under subsection (a), the enrollee shall be 
        assigned to the Job Corps center that offers the type of career 
        and technical education and training selected by the individual 
        and, among the centers that offer such education and training, 
        is closest to the home of the individual. <<NOTE: Waiver 
        authority.>>  The Secretary may waive this requirement if--
                    (A) the enrollee would be unduly delayed in 
                participating in the Job Corps program because the 
                closest center is operating at full capacity; or

[[Page 128 STAT. 1542]]

                    (B) the parent or guardian of the enrollee requests 
                assignment of the enrollee to another Job Corps center 
                due to circumstances in the community of the enrollee 
                that would impair prospects for successful participation 
                in the Job Corps program.
            (2) Enrollees who are younger than 18.--An enrollee who is 
        younger than 18 shall not be assigned to a Job Corps center 
        other than the center closest to the home that offers the career 
        and technical education and training desired by the enrollee 
        pursuant to paragraph (1) if the parent or guardian of the 
        enrollee objects to the assignment.
SEC. 146. <<NOTE: 29 USC 3196.>>  ENROLLMENT.

    (a) Relationship Between Enrollment and Military Obligations.--
Enrollment in the Job Corps shall not relieve any individual of 
obligations under the Military Selective Service Act (50 U.S.C. App. 451 
et seq.).
    (b) Period of Enrollment.--No individual may be enrolled in the Job 
Corps for more than 2 years, except--
            (1) in a case in which completion of an advanced career 
        training program under section 148(c) would require an 
        individual to participate in the Job Corps for not more than one 
        additional year;
            (2) in the case of an individual with a disability who would 
        reasonably be expected to meet the standards for a Job Corps 
        graduate, as defined under section 142(5), if allowed to 
        participate in the Job Corps for not more than 1 additional 
        year;
            (3) in the case of an individual who participates in 
        national service, as authorized by a Civilian Conservation 
        Center program, who would be granted an enrollment extension in 
        the Job Corps for the amount of time equal to the period of 
        national service; or
            (4) as the Secretary may authorize in a special case.
SEC. 147. <<NOTE: 29 USC 3197.>>  JOB CORPS CENTERS.

    (a) Operators and Service Providers.--
            (1) Eligible entities.--
                    (A) <<NOTE: Contracts.>>  Operators.--The Secretary 
                shall enter into an agreement with a Federal, State, or 
                local agency, an area career and technical education 
                school, a residential career and technical education 
                school, or a private organization, for the operation of 
                each Job Corps center.
                    (B) Providers.--The Secretary may enter into an 
                agreement with a local entity, or other entity with the 
                necessary capacity, to provide activities described in 
                this subtitle to a Job Corps center.
            (2) Selection process.--
                    (A) Competitive basis.--Except as provided in 
                subsections (a) and (b) of section 3304 of title 41, 
                United States Code, the Secretary shall select on a 
                competitive basis an entity to operate a Job Corps 
                center and entities to provide activities described in 
                this subtitle to the Job Corps 
                center. <<NOTE: Consultation.>>  In developing a 
                solicitation for an operator or service provider, the 
                Secretary shall consult with the Governor of the State 
                in which the center is located, the workforce council 
                for the Job Corps center (if established), and the 
                applicable local board regarding the contents of

[[Page 128 STAT. 1543]]

                such solicitation, including elements that will promote 
                the consistency of the activities carried out through 
                the center with the objectives set forth in the State 
                plan or in a local plan.
                    (B) Recommendations and considerations.--
                          (i) Operators.--In selecting an entity to 
                      operate a Job Corps center, the Secretary shall 
                      consider--
                                    (I) the ability of the entity to 
                                coordinate the activities carried out 
                                through the Job Corps center with 
                                activities carried out under the 
                                appropriate State plan and local plans;
                                    (II) the ability of the entity to 
                                offer career and technical education and 
                                training that has been proposed by the 
                                workforce council under section 154(c), 
                                and the degree to which such education 
                                and training reflects employment 
                                opportunities in the local areas in 
                                which enrollees at the center intend to 
                                seek employment;
                                    (III) the degree to which the entity 
                                demonstrates relationships with the 
                                surrounding communities, employers, 
                                labor organizations, State boards, local 
                                boards, applicable one-stop centers, and 
                                the State and region in which the center 
                                is located;
                                    (IV) the performance of the entity, 
                                if any, relating to operating or 
                                providing activities described in this 
                                subtitle to a Job Corps center, 
                                including information regarding the 
                                entity in any reports developed by the 
                                Office of Inspector General of the 
                                Department of Labor and the entity's 
                                demonstrated effectiveness in assisting 
                                individuals in achieving the primary 
                                indicators of performance for eligible 
                                youth described in section 
                                116(b)(2)(A)(ii); and
                                    (V) the ability of the entity to 
                                demonstrate a record of successfully 
                                assisting at-risk youth to connect to 
                                the workforce, including providing them 
                                with intensive academics and career and 
                                technical education and training.
                          (ii) Providers.--In selecting a service 
                      provider for a Job Corps center, the Secretary 
                      shall consider the factors described in clause 
                      (i).
            (3) Additional selection factors.--To be eligible to operate 
        a Job Corps center, an entity shall submit to the Secretary, at 
        such time and in such manner as the Secretary may require, 
        information related to additional selection factors, which shall 
        include the following:
                    (A) A description of the program activities that 
                will be offered at the center and how the academics and 
                career and technical education and training reflect 
                State and local employment opportunities, including 
                opportunities in in-demand industry sectors and 
                occupations recommended by the workforce council under 
                section 154(c)(2)(A).
                    (B) A description of the counseling, placement, and 
                support activities that will be offered at the center, 
                including a description of the strategies and procedures 
                the entity will use to place graduates into unsubsidized

[[Page 128 STAT. 1544]]

                employment or education leading to a recognized 
                postsecondary credential upon completion of the program.
                    (C) A description of the demonstrated record of 
                effectiveness that the entity has in placing at-risk 
                youth into employment and postsecondary education, 
                including past performance of operating a Job Corps 
                center under this subtitle or subtitle C of title I of 
                the Workforce Investment Act of 1998, and as 
                appropriate, the entity's demonstrated effectiveness in 
                assisting individuals in achieving the indicators of 
                performance for eligible youth described in section 
                116(b)(2)(A)(ii).
                    (D) A description of the relationships that the 
                entity has developed with State boards, local boards, 
                applicable one-stop centers, employers, labor 
                organizations, State and local educational agencies, and 
                the surrounding communities in which the center is 
                located, in an effort to promote a comprehensive 
                statewide workforce development system.
                    (E) A description of the entity's ability to 
                coordinate the activities carried out through the Job 
                Corps center with activities carried out under the 
                appropriate State plan and local plans.
                    (F) A description of the strong fiscal controls the 
                entity has in place to ensure proper accounting of 
                Federal funds, and a description of how the entity will 
                meet the requirements of section 159(a).
                    (G) A description of the steps to be taken to 
                control costs in accordance with section 159(a)(3).
                    (H) A detailed budget of the activities that will be 
                supported using funds under this subtitle and non-
                Federal resources.
                    (I) An assurance the entity is licensed to operate 
                in the State in which the center is located.
                    (J) An assurance the entity will comply with basic 
                health and safety codes, which shall include the 
                disciplinary measures described in section 152(b).
                    (K) Any other information on additional selection 
                factors that the Secretary may require.

    (b) High-performing Centers.--
            (1) <<NOTE: Applicability.>>  In general.--If an entity 
        meets the requirements described in paragraph (2) as applied to 
        a particular Job Corps center, such entity shall be allowed to 
        compete in any competitive selection process carried out for an 
        award to operate such center.
            (2) High performance.--An entity shall be considered to be 
        an operator of a high-performing center if the Job Corps center 
        operated by the entity--
                    (A) is ranked among the top 20 percent of Job Corps 
                centers for the most recent preceding program year; and
                    (B) <<NOTE: Time periods.>>  meets the expected 
                levels of performance established under section 
                159(c)(1) and, with respect to each of the primary 
                indicators of performance for eligible youth described 
                in section 116(b)(2)(A)(ii)--
                          (i) for the period of the most recent 
                      preceding 3 program years for which information is 
                      available at the time the determination is made, 
                      achieved an average of 100 percent, or higher, of 
                      the expected level

[[Page 128 STAT. 1545]]

                      of performance established under section 159(c)(1) 
                      for the indicator; and
                          (ii) for the most recent preceding program 
                      year for which information is available at the 
                      time the determination is made, achieved 100 
                      percent, or higher, of the expected level of 
                      performance established under such section for the 
                      indicator.
            (3) Transition.--If any of the program years described in 
        paragraph (2)(B) precedes the implementation of the 
        establishment of expected levels of performance under section 
        159(c) and the application of the primary indicators of 
        performance for eligible youth described in section 
        116(b)(2)(A)(ii), an entity shall be considered an operator of a 
        high-performing center during that period if the Job Corps 
        center operated by the entity--
                    (A) <<NOTE: Time periods.>>  meets the requirements 
                of paragraph (2)(B) with respect to such preceding 
                program years using the performance of the Job Corps 
                center regarding the national goals or targets 
                established by the Office of the Job Corps under the 
                previous performance accountability system for--
                          (i) the 6-month follow-up placement rate of 
                      graduates in employment, the military, education, 
                      or training;
                          (ii) the 12-month follow-up placement rate of 
                      graduates in employment, the military, education, 
                      or training;
                          (iii) the 6-month follow-up average weekly 
                      earnings of graduates;
                          (iv) the rate of attainment of secondary 
                      school diplomas or their recognized equivalent;
                          (v) the rate of attainment of completion 
                      certificates for career and technical training;
                          (vi) average literacy gains; and
                          (vii) average numeracy gains; or
                    (B) is ranked among the top 5 percent of Job Corps 
                centers for the most recent preceding program year.

    (c) Character and Activities.--Job Corps centers may be residential 
or nonresidential in character, and shall be designed and operated so as 
to provide enrollees, in a well-supervised setting, with access to 
activities described in this subtitle. In any year, no more than 20 
percent of the individuals enrolled in the Job Corps may be 
nonresidential participants in the Job Corps.
    (d) Civilian Conservation Centers.--
            (1) <<NOTE: Contracts. Urban and rural areas.>>  In 
        general.--The Job Corps centers may include Civilian 
        Conservation Centers, operated under an agreement between the 
        Secretary of Labor and the Secretary of Agriculture, that are 
        located primarily in rural areas. Such centers shall provide, in 
        addition to academics, career and technical education and 
        training, and workforce preparation skills training, programs of 
        work experience to conserve, develop, or manage public natural 
        resources or public recreational areas or to develop community 
        projects in the public interest.
            (2) Assistance during disasters.--Enrollees in Civilian 
        Conservation Centers may provide assistance in addressing 
        national, State, and local disasters, consistent with current 
        child labor laws (including regulations). The Secretary of 
        Agriculture shall ensure that with respect to the provision of 
        such

[[Page 128 STAT. 1546]]

        assistance the enrollees are properly trained, equipped, 
        supervised, and dispatched consistent with standards for the 
        conservation and rehabilitation of wildlife established under 
        the Fish and Wildlife Coordination Act (16 U.S.C. 661 et seq.).
            (3) <<NOTE: Designation.>>  National liaison.--The Secretary 
        of Agriculture shall designate a Job Corps National Liaison to 
        support the agreement under this section between the Departments 
        of Labor and Agriculture.

    (e) Indian Tribes.--
            (1) General authority.--The Secretary may enter into 
        agreements with Indian tribes to operate Job Corps centers for 
        Indians.
            (2) Definitions.--In this subsection, the terms ``Indian'' 
        and ``Indian tribe'' have the meanings given such terms in 
        subsections (d) and (e), respectively, of section 4 of the 
        Indian Self-Determination and Education Assistance Act (25 
        U.S.C. 450b).

    (f) <<NOTE: Time periods.>>  Length of Agreement.--The agreement 
described in subsection (a)(1)(A) shall be for not more than a 2-year 
period. The Secretary may exercise any contractual option to renew the 
agreement in 1-year increments for not more than 3 additional years, 
consistent with the requirements of subsection (g).

    (g) <<NOTE: Time periods.>>  Renewal Conditions.--
            (1) In general.--Subject to paragraph (2), the Secretary 
        shall not renew the terms of an agreement for any 1-year 
        additional period described in subsection (f) for an entity to 
        operate a particular Job Corps center if, for both of the 2 most 
        recent preceding program years for which information is 
        available at the time the determination is made, or if a second 
        program year is not available, the preceding year for which 
        information is available, such center--
                    (A) has been ranked in the lowest 10 percent of Job 
                Corps centers; and
                    (B) failed to achieve an average of 50 percent or 
                higher of the expected level of performance under 
                section 159(c)(1) with respect to each of the primary 
                indicators of performance for eligible youth described 
                in section 116(b)(2)(A)(ii).
            (2) <<NOTE: Determination.>>  Exception.--Notwithstanding 
        paragraph (1), the Secretary may exercise an option to renew the 
        agreement for no more than 2 additional years if the Secretary 
        determines such renewal would be in the best interest of the Job 
        Corps program, taking into account factors including--
                    (A) significant improvements in program performance 
                in carrying out a performance improvement plan under 
                section 159(f)(2);
                    (B) that the performance is due to circumstances 
                beyond the control of the entity, such as an emergency 
                or disaster, as defined in section 170(a)(1);
                    (C) a significant disruption in the operations of 
                the center, including in the ability to continue to 
                provide services to students, or significant increase in 
                the cost of such operations; or
                    (D) a significant disruption in the procurement 
                process with respect to carrying out a competition for 
                the selection of a center operator.
            (3) Detailed explanation.--If the Secretary exercises an 
        option under paragraph (2), the Secretary shall provide, to

[[Page 128 STAT. 1547]]

        the Committee on Education and the Workforce of the House of 
        Representatives and the Committee on Health, Education, Labor, 
        and Pensions of the Senate, a detailed explanation of the 
        rationale for exercising such option.
            (4) Additional considerations.--The Secretary shall only 
        renew the agreement of an entity to operate a Job Corps center 
        if the entity--
                    (A) has a satisfactory record of integrity and 
                business ethics;
                    (B) has adequate financial resources to perform the 
                agreement;
                    (C) has the necessary organization, experience, 
                accounting and operational controls, and technical 
                skills; and
                    (D) is otherwise qualified and eligible under 
                applicable laws and regulations, including that the 
                contractor is not under suspension or debarred from 
                eligibility for Federal contracts.
SEC. 148. <<NOTE: 29 USC 3198.>>  PROGRAM ACTIVITIES.

    (a) Activities Provided by Job Corps Centers.--
            (1) In general.--Each Job Corps center shall provide 
        enrollees with an intensive, well organized, and fully 
        supervised program of education, including English language 
        acquisition programs, career and technical education and 
        training, work experience, work-based learning, recreational 
        activities, physical rehabilitation and development, driver's 
        education, and counseling, which may include information about 
        financial literacy. Each Job Corps center shall provide 
        enrollees assigned to the center with access to career services 
        described in clauses (i) through (xi) of section 134(c)(2)(A).
            (2) Relationship to opportunities.--The activities provided 
        under this subsection shall be targeted to helping enrollees, on 
        completion of their enrollment--
                    (A) secure and maintain meaningful unsubsidized 
                employment;
                    (B) enroll in and complete secondary education or 
                postsecondary education or training programs, including 
                other suitable career and technical education and 
                training, and apprenticeship programs; or
                    (C) satisfy Armed Forces requirements.
            (3) Link to employment opportunities.--The career and 
        technical education and training provided shall be linked to 
        employment opportunities in in-demand industry sectors and 
        occupations in the State or local area in which the Job Corps 
        center is located and, to the extent practicable, in the State 
        or local area in which the enrollee intends to seek employment 
        after graduation.

    (b) Academic and Career and Technical Education and Training.--The 
Secretary may arrange for career and technical education and training of 
enrollees through local public or private educational agencies, career 
and technical educational institutions, technical institutes, or 
national service providers, whenever such entities provide education and 
training substantially equivalent in cost and quality to that which the 
Secretary could provide through other means.
    (c) Advanced Career Training Programs.--

[[Page 128 STAT. 1548]]

            (1) <<NOTE: Time period.>>  In general.--The Secretary may 
        arrange for programs of advanced career training for selected 
        enrollees in which the enrollees may continue to participate for 
        a period of not to exceed 1 year in addition to the period of 
        participation to which the enrollees would otherwise be limited. 
        The advanced career training may be provided through the 
        eligible providers of training services identified under section 
        122.
            (2) Benefits.--During the period of participation in an 
        advanced career training program, an enrollee shall be eligible 
        for full Job Corps benefits, or a monthly stipend equal to the 
        average value of the residential support, food, allowances, and 
        other benefits provided to enrollees assigned to residential Job 
        Corps centers.
            (3) <<NOTE: Standards.>>  Demonstration.--The Secretary 
        shall develop standards by which any operator seeking to enroll 
        additional enrollees in an advanced career training program 
        shall demonstrate, before the operator may carry out such 
        additional enrollment, that--
                    (A) participants in such program have achieved a 
                satisfactory rate of completion and placement in 
                training-related jobs; and
                    (B) <<NOTE: Time period.>>  for the most recently 
                preceding 2 program years, such operator has, on 
                average, met or exceeded the expected levels of 
                performance under section 159(c)(1) for each of the 
                primary indicators of performance for eligible youth 
                described in section 116(b)(2)(A)(ii).

    (d) <<NOTE: Time period.>>  Graduate Services.--In order to promote 
the retention of graduates in employment or postsecondary education, the 
Secretary shall arrange for the provision of job placement and support 
services to graduates for up to 12 months after the date of graduation. 
Multiple resources, including one-stop partners, may support the 
provision of these services, including services from the State 
vocational rehabilitation agency, to supplement job placement and job 
development efforts for Job Corps graduates who are individuals with 
disabilities.

    (e) Child Care.--The Secretary shall, to the extent practicable, 
provide child care at or near Job Corps centers, for individuals who 
require child care for their children in order to participate in the Job 
Corps.
SEC. 149. <<NOTE: 29 USC 3199.>>  COUNSELING AND JOB PLACEMENT.

    (a) Assessment and Counseling.--The Secretary shall arrange for 
assessment and counseling for each enrollee at regular intervals to 
measure progress in the academic and career and technical education and 
training programs carried out through the Job Corps.
    (b) Placement.--The Secretary shall arrange for assessment and 
counseling for enrollees prior to their scheduled graduations to 
determine their capabilities and, based on their capabilities, shall 
place the enrollees in employment leading to economic self-sufficiency 
for which the enrollees are trained or assist the enrollees in 
participating in further activities described in this subtitle. In 
arranging for the placement of graduates in jobs, the Secretary shall 
utilize the one-stop delivery system to the maximum extent practicable.
    (c) <<NOTE: Determination.>>  Status and Progress.--The Secretary 
shall determine the status and progress of enrollees scheduled for 
graduation and make

[[Page 128 STAT. 1549]]

every effort to assure that their needs for further activities described 
in this subtitle are met.

    (d) Services to Former Enrollees.--The Secretary may provide such 
services as the Secretary determines to be appropriate under this 
subtitle to former enrollees.
SEC. 150. <<NOTE: 29 USC 3200.>>  SUPPORT.

    (a) Personal Allowances.--The Secretary may provide enrollees 
assigned to Job Corps centers with such personal allowances as the 
Secretary may determine to be necessary or appropriate to meet the needs 
of the enrollees.
    (b) Transition Allowances.--The Secretary shall arrange for a 
transition allowance to be paid to graduates. The transition allowance 
shall be incentive-based to reflect a graduate's completion of academic, 
career and technical education or training, and attainment of recognized 
postsecondary credentials.
    (c) <<NOTE: Time period.>>  Transition Support.--The Secretary may 
arrange for the provision of 3 months of employment services for former 
enrollees.
SEC. 151. <<NOTE: 29 USC 3201.>>  OPERATIONS.

    (a) Operating Plan.--The provisions of the contract between the 
Secretary and an entity selected to operate a Job Corps center shall, at 
a minimum, serve as an operating plan for the Job Corps center.
    (b) Additional Information.--The Secretary may require the operator, 
in order to remain eligible to operate the Job Corps center, to submit 
such additional information as the Secretary may require, which shall be 
considered part of the operating plan.
    (c) <<NOTE: Public information.>>  Availability.--The Secretary 
shall make the operating plan described in subsections (a) and (b), 
excluding any proprietary information, available to the public.
SEC. 152. <<NOTE: 29 USC 3202.>>  STANDARDS OF CONDUCT.

    (a) Provision and Enforcement.--The Secretary shall provide, and 
directors of Job Corps centers shall stringently enforce, standards of 
conduct within the centers. Such standards of conduct shall include 
provisions forbidding the actions described in subsection (b)(2)(A).
    (b) Disciplinary Measures.--
            (1) In general.--To promote the proper behavioral standards 
        in the Job Corps, the directors of Job Corps centers shall have 
        the authority to take appropriate disciplinary measures against 
        enrollees if such a director determines that an enrollee has 
        committed a violation of the standards of conduct. The director 
        shall dismiss the enrollee from the Job Corps if the director 
        determines that the retention of the enrollee in the Job Corps 
        will jeopardize the enforcement of such standards, threaten the 
        safety of staff, students, or the local community, or diminish 
        the opportunities of other enrollees.
            (2) Zero tolerance policy and drug testing.--
                    (A) Guidelines.--The Secretary shall adopt 
                guidelines establishing a zero tolerance policy for an 
                act of violence, for use, sale, or possession of a 
                controlled substance, for abuse of alcohol, or for other 
                illegal or disruptive activity.
                    (B) Drug testing.--The Secretary shall require drug 
                testing of all enrollees for controlled substances in 
                accordance with procedures prescribed by the Secretary 
                under section 145(a).

[[Page 128 STAT. 1550]]

                    (C) Definitions.--In this paragraph:
                          (i) Controlled substance.--The term 
                      ``controlled substance'' has the meaning given the 
                      term in section 102 of the Controlled Substances 
                      Act (21 U.S.C. 802).
                          (ii) Zero tolerance policy.--The term ``zero 
                      tolerance policy'' means a policy under which an 
                      enrollee shall be automatically dismissed from the 
                      Job Corps after a determination by the director 
                      that the enrollee has carried out an action 
                      described in subparagraph (A).

    (c) Appeal.--A disciplinary measure taken by a director under this 
section shall be subject to expeditious appeal in accordance with 
procedures established by the Secretary.
SEC. 153. <<NOTE: 29 USC 3203.>>  COMMUNITY PARTICIPATION.

    (a) Business and Community Participation.--The director of each Job 
Corps center shall ensure the establishment and development of the 
mutually beneficial business and community relationships and networks 
described in subsection (b), including the use of local boards, in order 
to enhance the effectiveness of such centers.
    (b) Networks.--The activities carried out by each Job Corps center 
under this section shall include--
            (1) establishing and developing relationships and networks 
        with--
                    (A) local and distant employers, to the extent 
                practicable, in coordination with entities carrying out 
                other Federal and non-Federal programs that conduct 
                similar outreach to employers;
                    (B) applicable one-stop centers and applicable local 
                boards, for the purpose of providing--
                          (i) information to, and referral of, potential 
                      enrollees; and
                          (ii) job opportunities for Job Corps 
                      graduates; and
                    (C)(i) entities carrying out relevant apprenticeship 
                programs and youth programs;
                    (ii) labor-management organizations and local labor 
                organizations;
                    (iii) employers and contractors that support 
                national training contractor programs; and
                    (iv) community-based organizations, non-profit 
                organizations, and intermediaries providing workforce 
                development-related services; and
            (2) establishing and developing relationships with members 
        of the community in which the Job Corps center is located, 
        informing members of the community about the projects of the Job 
        Corps center and changes in the rules, procedures, or activities 
        of the center that may affect the community, and planning events 
        of mutual interest to the community and the Job Corps center.

    (c) <<NOTE: Time period.>>  New Centers.--The director of a Job 
Corps center that is not yet operating shall ensure the establishment 
and development of the relationships and networks described in 
subsection (b) at least 3 months prior to the date on which the center 
accepts the first enrollee at the center.

[[Page 128 STAT. 1551]]

SEC. 154. <<NOTE: 29 USC 3204.>>  WORKFORCE COUNCILS.

    (a) <<NOTE: Establishment. Procedures.>>  In General.--Each Job 
Corps center shall have a workforce council, appointed by the director 
of the center, in accordance with procedures established by the 
Secretary.

    (b) Workforce Council Composition.--
            (1) In general.--A workforce council shall be comprised of--
                    (A) a majority of members who shall be owners of 
                business concerns, chief executives or chief operating 
                officers of nongovernmental employers, or other private 
                sector employers, who--
                          (i) have substantial management, hiring, or 
                      policy responsibility; and
                          (ii) represent businesses with employment 
                      opportunities that reflect the employment 
                      opportunities of the applicable local areas in 
                      which enrollees will be seeking employment;
                    (B) representatives of labor organizations (where 
                present) and representatives of employees; and
                    (C) enrollees and graduates of the Job Corps.
            (2) Local board.--The workforce council may include members 
        of the applicable local boards who meet the requirements 
        described in paragraph (1).
            (3) Employers outside of local area.--The workforce council 
        for a Job Corps center may include, or otherwise provide for 
        consultation with, employers from outside the local area who are 
        likely to hire a significant number of enrollees from the Job 
        Corps center.
            (4) Special rule for single state local areas.--In the case 
        of a single State local area designated under section 106(d), 
        the workforce council shall include a representative of the 
        State Board.

    (c) Responsibilities.--The responsibilities of the workforce council 
shall be--
            (1) to work closely with all applicable local boards in 
        order to determine, and recommend to the Secretary, appropriate 
        career and technical education and training for the center;
            (2) to review all the relevant labor market information, 
        including related information in the State plan or the local 
        plan, to--
                    (A) recommend the in-demand industry sectors or 
                occupations in the area in which the Job Corps center 
                operates;
                    (B) determine the employment opportunities in the 
                local areas in which the enrollees intend to seek 
                employment after graduation;
                    (C) determine the skills and education that are 
                necessary to obtain the employment opportunities; and
                    (D) recommend to the Secretary the type of career 
                and technical education and training that should be 
                implemented at the center to enable the enrollees to 
                obtain the employment opportunities; and
            (3) to meet at least once every 6 months to reevaluate the 
        labor market information, and other relevant information, to 
        determine, and recommend to the Secretary, any necessary changes 
        in the career and technical education and training provided at 
        the center.

[[Page 128 STAT. 1552]]

    (d) <<NOTE: Time period.>>  New Centers.--The workforce council for 
a Job Corps center that is not yet operating shall carry out the 
responsibilities described in subsection (c) at least 3 months prior to 
the date on which the center accepts the first enrollee at the center.
SEC. 155. <<NOTE: 29 USC 3205.>>  ADVISORY COMMITTEES.

    The Secretary may establish and use advisory committees in 
connection with the operation of the Job Corps program, and the 
operation of Job Corps centers, whenever the Secretary determines that 
the availability of outside advice and counsel on a regular basis would 
be of substantial benefit in identifying and overcoming problems, in 
planning program or center development, or in strengthening 
relationships between the Job Corps and agencies, institutions, or 
groups engaged in related activities.
SEC. 156. <<NOTE: 29 USC 3206.>>  EXPERIMENTAL PROJECTS AND 
                        TECHNICAL ASSISTANCE.

    (a) Projects.--The Secretary may carry out experimental, research, 
or demonstration projects relating to carrying out the Job Corps 
program. <<NOTE: Waiver authority. Deadline.>>  The Secretary may waive 
any provisions of this subtitle that the Secretary finds would prevent 
the Secretary from carrying out the projects if the Secretary informs 
the Committee on Education and the Workforce of the House of 
Representatives and the Committee on Health, Education, Labor, and 
Pensions of the Senate, in writing, not less than 90 days in advance of 
issuing such waiver.

    (b) Technical Assistance.--From the funds provided under section 162 
(for the purposes of administration), the Secretary may reserve \1/4\ of 
1 percent to provide, directly or through grants, contracts, or other 
agreements or arrangements as the Secretary considers appropriate, 
technical assistance for the Job Corps program for the purpose of 
improving program quality. Such assistance shall include--
            (1) assisting Job Corps centers and programs--
                    (A) in correcting deficiencies under, and violations 
                of, this subtitle;
                    (B) in meeting or exceeding the expected levels of 
                performance under section 159(c)(1) for the indicators 
                of performance described in section 116(b)(2)(A);
                    (C) in the development of sound management 
                practices, including financial management procedures; 
                and
            (2) assisting entities, including entities not currently 
        operating a Job Corps center, in developing the additional 
        selection factors information described in section 147(a)(3).
SEC. 157. <<NOTE: 29 USC 3207.>>  APPLICATION OF PROVISIONS OF 
                        FEDERAL LAW.

    (a) Enrollees Not Considered To Be Federal Employees.--
            (1) In general.--Except as otherwise provided in this 
        subsection and in section 8143(a) of title 5, United States 
        Code, enrollees shall not be considered to be Federal employees 
        and shall not be subject to the provisions of law relating to 
        Federal employment, including such provisions regarding hours of 
        work, rates of compensation, leave, unemployment compensation, 
        and Federal employee benefits.
            (2) Provisions relating to taxes and social security 
        benefits.--For purposes of the Internal Revenue Code of 1986 and 
        title II of the Social Security Act (42 U.S.C. 401 et seq.), 
        enrollees shall be deemed to be employees of the United States 
        and any service performed by an individual as an enrollee

[[Page 128 STAT. 1553]]

        shall be deemed to be performed in the employ of the United 
        States.
            (3) Provisions relating to compensation to federal employees 
        for work injuries.--For purposes of subchapter I of chapter 81 
        of title 5, United States Code (relating to compensation to 
        Federal employees for work injuries), enrollees shall be deemed 
        to be civil employees of the Government of the United States 
        within the meaning of the term ``employee'' as defined in 
        section 8101 of title 5, United States Code, and the provisions 
        of such subchapter shall apply as specified in section 8143(a) 
        of title 5, United States Code.
            (4) Federal tort claims provisions.--For purposes of the 
        Federal tort claims provisions in title 28, United States Code, 
        enrollees shall be considered to be employees of the Government.

    (b) Adjustments and Settlements.--Whenever the Secretary finds a 
claim for damages to a person or property resulting from the operation 
of the Job Corps to be a proper charge against the United States, and 
the claim is not cognizable under section 2672 of title 28, United 
States Code, the Secretary may adjust and settle the claim in an amount 
not exceeding $1,500.
    (c) Personnel of the Uniformed Services.--Personnel of the uniformed 
services who are detailed or assigned to duty in the performance of 
agreements made by the Secretary for the support of the Job Corps shall 
not be counted in computing strength under any law limiting the strength 
of such services or in computing the percentage authorized by law for 
any grade in such services.
SEC. 158. <<NOTE: 29 USC 3208.>>  SPECIAL PROVISIONS.

    (a) Enrollment.--The Secretary shall ensure that women and men have 
an equal opportunity to participate in the Job Corps program, consistent 
with section 145.
    (b) Studies, Evaluations, Proposals, and Data.--The Secretary shall 
assure that all studies, evaluations, proposals, and data produced or 
developed with Federal funds in the course of carrying out the Job Corps 
program shall become the property of the United States.
    (c) Transfer of Property.--
            (1) In general.--Notwithstanding chapter 5 of title 40, 
        United States Code, and any other provision of law, the 
        Secretary and the Secretary of Education shall receive priority 
        by the Secretary of Defense for the direct transfer, on a 
        nonreimbursable basis, of the property described in paragraph 
        (2) for use in carrying out programs under this Act or under any 
        other Act.
            (2) <<NOTE: Determination.>>  Property.--The property 
        described in this paragraph is real and personal property under 
        the control of the Department of Defense that is not used by 
        such Department, including property that the Secretary of 
        Defense determines is in excess of current and projected 
        requirements of such Department.

    (d) Gross Receipts.--Transactions conducted by a private for-profit 
or nonprofit entity that is an operator or service provider for a Job 
Corps center shall not be considered to be generating gross receipts. 
Such an operator or service provider shall not be liable, directly or 
indirectly, to any State or subdivision of a State (nor to any person 
acting on behalf of such a State or subdivision) for any gross receipts 
taxes, business privilege taxes measured

[[Page 128 STAT. 1554]]

by gross receipts, or any similar taxes imposed on, or measured by, 
gross receipts in connection with any payments made to or by such entity 
for operating or providing services to a Job Corps center. Such an 
operator or service provider shall not be liable to any State or 
subdivision of a State to collect or pay any sales, excise, use, or 
similar tax imposed on the sale to or use by such operator or service 
provider of any property, service, or other item in connection with the 
operation of or provision of services to a Job Corps center.
    (e) Management Fee.--The Secretary shall provide each operator and 
(in an appropriate case, as determined by the Secretary) service 
provider with an equitable and negotiated management fee of not less 
than 1 percent of the amount of the funding provided under the 
appropriate agreement specified in section 147.
    (f) Donations.--The Secretary may accept on behalf of the Job Corps 
or individual Job Corps centers charitable donations of cash or other 
assistance, including equipment and materials, if such donations are 
available for appropriate use for the purposes set forth in this 
subtitle.
    (g) Sale of Property.--Notwithstanding any other provision of law, 
if the Administrator of General Services sells a Job Corps center 
facility, the Administrator shall transfer the proceeds from the sale to 
the Secretary, who shall use the proceeds to carry out the Job Corps 
program.
SEC. 159. <<NOTE: 29 USC 3209.>>  MANAGEMENT INFORMATION.

    (a) Financial Management Information System.--
            (1) <<NOTE: Procedures.>>  In general.--The Secretary shall 
        establish procedures to ensure that each operator, and each 
        service provider, maintains a financial management information 
        system that will provide--
                    (A) accurate, complete, and current disclosures of 
                the costs of Job Corps operations; and
                    (B) sufficient data for the effective evaluation of 
                activities carried out through the Job Corps program.
            (2) Accounts.--Each operator and service provider shall 
        maintain funds received under this subtitle in accounts in a 
        manner that ensures timely and accurate reporting as required by 
        the Secretary.
            (3) Fiscal responsibility.--Operators shall remain fiscally 
        responsible and control costs, regardless of whether the funds 
        made available for Job Corps centers are incrementally increased 
        or decreased between fiscal years.

    (b) Audit.--
            (1) Access.--The Secretary, the Inspector General of the 
        Department of Labor, the Comptroller General of the United 
        States, and any of their duly authorized representatives, shall 
        have access to any books, documents, papers, and records of the 
        operators and service providers described in subsection (a) that 
        are pertinent to the Job Corps program, for purposes of 
        conducting surveys, audits, and evaluations of the operators and 
        service providers.
            (2) Surveys, audits, and evaluations.--The Secretary shall 
        survey, audit, or evaluate, or arrange for the survey, audit, or 
        evaluation of, the operators and service providers, using 
        Federal auditors or independent public accountants. <<NOTE: Time 
        period.>>  The

[[Page 128 STAT. 1555]]

        Secretary shall conduct such surveys, audits, or evaluations not 
        less often than once every 3 years.

    (c) Information on Indicators of Performance.--
            (1) Levels of performance and indicators.--The Secretary 
        shall annually establish expected levels of performance for a 
        Job Corps center and the Job Corps program relating to each of 
        the primary indicators of performance for eligible youth 
        described in section 116(b)(2)(A)(ii).
            (2) Performance of recruiters.--The Secretary shall also 
        establish performance indicators, and expected levels of 
        performance on the performance indicators, for recruitment 
        service providers serving the Job Corps program. The performance 
        indicators shall relate to--
                    (A) the number of enrollees recruited, compared to 
                the established goals for such recruitment, and the 
                number of enrollees who remain committed to the program 
                for 90 days after enrollment; and
                    (B) the measurements described in subparagraphs (I), 
                (L), and (M) of subsection (d)(1).
            (3) Performance of career transition service providers.--The 
        Secretary shall also establish performance indicators, and 
        expected performance levels on the performance indicators, for 
        career transition service providers serving the Job Corps 
        program. The performance indicators shall relate to--
                    (A) the primary indicators of performance for 
                eligible youth described in section 116(b)(2)(A)(ii); 
                and
                    (B) the measurements described in subparagraphs (D), 
                (E), (H), (J), and (K) of subsection (d)(1).
            (4) Report.--The Secretary shall collect, and annually 
        submit to the Committee on Education and the Workforce of the 
        House of Representatives and the Committee on Health, Education, 
        Labor, and Pensions of the Senate, a report including--
                    (A) information on the performance of each Job Corps 
                center, and the Job Corps program, based on the 
                performance indicators described in paragraph (1), as 
                compared to the expected level of performance 
                established under such paragraph for each performance 
                indicator; and
                    (B) information on the performance of the service 
                providers described in paragraphs (2) and (3) on the 
                performance indicators established under such 
                paragraphs, as compared to the expected level of 
                performance established for each performance indicator.

    (d) Additional Information.--
            (1) In general.--The Secretary shall also collect, and 
        submit in the report described in subsection (c)(4), information 
        on the performance of each Job Corps center, and the Job Corps 
        program, regarding--
                    (A) the number of enrollees served;
                    (B) demographic information on the enrollees served, 
                including age, race, gender, and education and income 
                level;
                    (C) the number of graduates of a Job Corps center;
                    (D) the number of graduates who entered the Armed 
                Forces;
                    (E) the number of graduates who entered 
                apprenticeship programs;

[[Page 128 STAT. 1556]]

                    (F) the number of graduates who received a regular 
                secondary school diploma;
                    (G) the number of graduates who received a State 
                recognized equivalent of a secondary school diploma;
                    (H) the number of graduates who entered unsubsidized 
                employment related to the career and technical education 
                and training received through the Job Corps program and 
                the number who entered unsubsidized employment not 
                related to the education and training received;
                    (I) the percentage and number of former enrollees, 
                including the number dismissed under the zero tolerance 
                policy described in section 152(b);
                    (J) the percentage and number of graduates who enter 
                postsecondary education;
                    (K) the average wage of graduates who enter 
                unsubsidized employment--
                          (i) on the first day of such employment; and
                          (ii) on the day that is 6 months after such 
                      first day;
                    (L) the percentages of enrollees described in 
                subparagraphs (A) and (B) of section 145(c)(1), as 
                compared to the percentage targets established by the 
                Secretary under such section for the center;
                    (M) the cost per enrollee, which is calculated by 
                comparing the number of enrollees at the center in a 
                program year to the total budget for such center in the 
                same program year;
                    (N) the cost per graduate, which is calculated by 
                comparing the number of graduates of the center in a 
                program year compared to the total budget for such 
                center in the same program year; and
                    (O) any additional information required by the 
                Secretary.
            (2) Rules for reporting of data.--The disaggregation of data 
        under this subsection shall not be required when the number of 
        individuals in a category is insufficient to yield statistically 
        reliable information or when the results would reveal personally 
        identifiable information about an individual.

    (e) Methods.--The Secretary shall collect the information described 
in subsections (c) and (d), using methods described in section 116(i)(2) 
and consistent with State law, by entering into agreements with the 
States to access such data for Job Corps enrollees, former enrollees, 
and graduates.
    (f) Performance Assessments and Improvements.--
            (1) Assessments.--The Secretary shall conduct an annual 
        assessment of the performance of each Job Corps center. Based on 
        the assessment, the Secretary shall take measures to 
        continuously improve the performance of the Job Corps program.
            (2) <<NOTE: Plan.>>  Performance improvement.--With respect 
        to a Job Corps center that fails to meet the expected levels of 
        performance relating to the primary indicators of performance 
        specified in subsection (c)(1), the Secretary shall develop and 
        implement a performance improvement plan. <<NOTE: Time 
        period.>>  Such a plan shall require action to be taken during a 
        1-year period, including--
                    (A) providing technical assistance to the center;

[[Page 128 STAT. 1557]]

                    (B) changing the career and technical education and 
                training offered at the center;
                    (C) changing the management staff of the center;
                    (D) replacing the operator of the center;
                    (E) reducing the capacity of the center;
                    (F) relocating the center; or
                    (G) closing the center.
            (3) Additional performance improvement.--In addition to the 
        performance improvement plans required under paragraph (2), the 
        Secretary may develop and implement additional performance 
        improvement plans. Such a plan shall require improvements, 
        including the actions described in such paragraph, for a Job 
        Corps center that fails to meet criteria established by the 
        Secretary other than the expected levels of performance 
        described in such paragraph.
            (4) <<NOTE: Consultation.>>  Civilian conservation 
        centers.--With respect to a Civilian Conservation Center that 
        fails to meet the expected levels of performance relating to the 
        primary indicators of performance specified in subsection (c)(1) 
        or fails to improve performance as described in paragraph (2) 
        after 3 program years, the Secretary, in consultation with the 
        Secretary of Agriculture, shall select an entity to operate the 
        Civilian Conservation Center on a competitive basis, in 
        accordance with the requirements of section 147.

    (g) Participant Health and Safety.--
            (1) <<NOTE: Review.>>  Center.--The Secretary shall ensure 
        that a review by an appropriate Federal, State, or local entity 
        of the physical condition and health-related activities of each 
        Job Corps center occurs annually.
            (2) <<NOTE: Compliance.>>  Work-based learning locations.--
        The Secretary shall require that an entity that has entered into 
        a contract to provide work-based learning activities for any Job 
        Corps enrollee under this subtitle shall comply with the 
        Occupational Safety and Health Act of 1970 (29 U.S.C. 651 et 
        seq.) or, as appropriate, under the corresponding State 
        Occupational Safety and Health Act of 1970 requirements in the 
        State in which such activities occur.

    (h) <<NOTE: Review.>>  Buildings and Facilities.--The Secretary 
shall collect, and submit in the report described in subsection (c)(4), 
information regarding the state of Job Corps buildings and facilities. 
Such report shall include--
            (1) a review of requested construction, rehabilitation, and 
        acquisition projects, by each Job Corps center; and
            (2) a review of new facilities under construction.

    (i) National and Community Service.--The Secretary shall include in 
the report described in subsection (c)(4) available information 
regarding the national and community service activities of enrollees, 
particularly those enrollees at Civilian Conservation Centers.
    (j) Closure of Job Corps Center.--Prior to the closure of any Job 
Corps center, the Secretary shall ensure--
            (1) <<NOTE: Public information. Federal Register, 
        publication.>>  that the proposed decision to close the center 
        is announced in advance to the general public through 
        publication in the Federal Register or other appropriate means;
            (2) the establishment of a reasonable comment period, not to 
        exceed 30 days, for interested individuals to submit written 
        comments to the Secretary; and

[[Page 128 STAT. 1558]]

            (3) <<NOTE: Notification.>>  that the Member of Congress who 
        represents the district in which such center is located is 
        notified within a reasonable period of time in advance of any 
        final decision to close the center.
SEC. 160. <<NOTE: 29 USC 3210.>>  GENERAL PROVISIONS.

    The Secretary is authorized to--
            (1) <<NOTE: Determination.>>  disseminate, with regard to 
        the provisions of section 3204 of title 39, United States Code, 
        data and information in such forms as the Secretary shall 
        determine to be appropriate, to public agencies, private 
        organizations, and the general public;
            (2) subject to section 157(b), collect or compromise all 
        obligations to or held by the Secretary and exercise all legal 
        or equitable rights accruing to the Secretary in connection with 
        the payment of obligations until such time as such obligations 
        may be referred to the Attorney General for suit or collection; 
        and
            (3) expend funds made available for purposes of this 
        subtitle--
                    (A) for printing and binding, in accordance with 
                applicable law (including regulation); and
                    (B) without regard to any other law (including 
                regulation), for rent of buildings and space in 
                buildings and for repair, alteration, and improvement of 
                buildings and space in buildings rented by the 
                Secretary, except that the Secretary shall not expend 
                funds under the authority of this subparagraph--
                          (i) except when necessary to obtain an item, 
                      service, or facility, that is required in the 
                      proper administration of this subtitle, and that 
                      otherwise could not be obtained, or could not be 
                      obtained in the quantity or quality needed, or at 
                      the time, in the form, or under the conditions in 
                      which the item, service, or facility is needed; 
                      and
                          (ii) prior to having given written 
                      notification to the Administrator of General 
                      Services (if the expenditure would affect an 
                      activity that otherwise would be under the 
                      jurisdiction of the General Services 
                      Administration) of the intention of the Secretary 
                      to make the expenditure, and the reasons and 
                      justifications for the expenditure.
SEC. 161. <<NOTE: 29 USC 3211.>>  JOB CORPS OVERSIGHT AND 
                        REPORTING.

    (a) Temporary Financial Reporting.--
            (1) In general.--During the periods described in paragraphs 
        (2) and (3)(B), the Secretary shall prepare and submit to the 
        applicable committees financial reports regarding the Job Corps 
        program under this subtitle. Each such financial report shall 
        include--
                    (A) information regarding the implementation of the 
                financial oversight measures suggested in the May 31, 
                2013, report of the Office of Inspector General of the 
                Department of Labor entitled ``The U.S. Department of 
                Labor's Employment and Training Administration Needs to 
                Strengthen Controls over Job Corps Funds'';

[[Page 128 STAT. 1559]]

                    (B) a description of any budgetary shortfalls for 
                the program for the period covered by the financial 
                report, and the reasons for such shortfalls; and
                    (C) a description and explanation for any approval 
                for contract expenditures that are in excess of the 
                amounts provided for under the contract.
            (2) <<NOTE: Effective date.>>  Timing of reports.--The 
        Secretary shall submit a financial report under paragraph (1) 
        once every 6 months beginning on the date of enactment of this 
        Act, for a 3-year period. After the completion of such 3-year 
        period, the Secretary shall submit a financial report under such 
        paragraph once a year for the next 2 years, unless additional 
        reports are required under paragraph (3)(B).
            (3) Reporting requirements in cases of budgetary 
        shortfalls.--If any financial report required under this 
        subsection finds that the Job Corps program under this subtitle 
        has a budgetary shortfall for the period covered by the report, 
        the Secretary shall--
                    (A) not later than 90 days after the budgetary 
                shortfall was identified, submit a report to the 
                applicable committees explaining how the budgetary 
                shortfall will be addressed; and
                    (B) submit an additional financial report under 
                paragraph (1) for each 6-month period subsequent to the 
                finding of the budgetary shortfall until the Secretary 
                demonstrates, through such report, that the Job Corps 
                program has no budgetary shortfall.

    (b) <<NOTE: Deadline.>>  Third-party Review.--Every 5 years after 
the date of enactment of this Act, the Secretary shall provide for a 
third-party review of the Job Corps program under this subtitle that 
addresses all of the areas described in subparagraphs (A) through (G) of 
section 169(a)(2). The results of the review shall be submitted to the 
Committee on Education and the Workforce of the House of Representatives 
and the Committee on Health, Education, Labor, and Pensions of the 
Senate.

    (c) <<NOTE: Deadline. Determination.>>  Criteria for Job Corps 
Center Closures.--By not later than December 1, 2014, the Secretary 
shall establish written criteria that the Secretary shall use to 
determine when a Job Corps center supported under this subtitle is to be 
closed and how to carry out such closure, and shall submit such criteria 
to the applicable committees.

    (d) Definition of Applicable Committees.--In this section, the term 
``applicable committees'' means--
            (1) the Committee on Education and the Workforce of the 
        House of Representatives;
            (2) the Subcommittee on Labor, Health and Human Services, 
        Education, and Related Agencies of the Committee of 
        Appropriations of the House of Representatives;
            (3) the Committee on Health, Education, Labor, and Pensions 
        of the Senate; and
            (4) the Subcommittee on Labor, Health and Human Services, 
        Education, and Related Agencies of the Committee of 
        Appropriations of the Senate.
SEC. 162. <<NOTE: 29 USC 3212.>>  AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this subtitle--

[[Page 128 STAT. 1560]]

            (1) $1,688,155,000 for fiscal year 2015;
            (2) $1,818,548,000 for fiscal year 2016;
            (3) $1,856,283,000 for fiscal year 2017;
            (4) $1,897,455,000 for fiscal year 2018;
            (5) $1,942,064,000 for fiscal year 2019; and
            (6) $1,983,236,000 for fiscal year 2020.

                      Subtitle D--National Programs

SEC. 166. <<NOTE: 29 USC 3221.>>  NATIVE AMERICAN PROGRAMS.

    (a) Purpose.--
            (1) In general.--The purpose of this section is to support 
        employment and training activities for Indian, Alaska Native, 
        and Native Hawaiian individuals in order--
                    (A) to develop more fully the academic, 
                occupational, and literacy skills of such individuals;
                    (B) to make such individuals more competitive in the 
                workforce and to equip them with the entrepreneurial 
                skills necessary for successful self-employment; and
                    (C) to promote the economic and social development 
                of Indian, Alaska Native, and Native Hawaiian 
                communities in accordance with the goals and values of 
                such communities.
            (2) Indian policy.--All programs assisted under this section 
        shall be administered in a manner consistent with the principles 
        of the Indian Self-Determination and Education Assistance Act 
        (25 U.S.C. 450 et seq.) and the government-to-government 
        relationship between the Federal Government and Indian tribal 
        governments.

    (b) Definitions.--As used in this section:
            (1) Alaska native.--The term ``Alaska Native'' includes a 
        Native and a descendant of a Native, as such terms are defined 
        in subsections (b) and (r) of section 3 of the Alaska Native 
        Claims Settlement Act (43 U.S.C. 1602(b), (r)).
            (2) Indian, indian tribe, and tribal organization.--The 
        terms ``Indian'', ``Indian tribe'', and ``tribal organization'' 
        have the meanings given such terms in subsections (d), (e), and 
        (l), respectively, of section 4 of the Indian Self-Determination 
        and Education Assistance Act (25 U.S.C. 450b).
            (3) Native hawaiian and native hawaiian organization.--The 
        terms ``Native Hawaiian'' and ``Native Hawaiian organization'' 
        have the meanings given such terms in section 7207 of the Native 
        Hawaiian Education Act (20 U.S.C. 7517).

    (c) <<NOTE: Deadline. Grants. Contracts.>>  Program Authorized.--
Every 4 years, the Secretary shall, on a competitive basis, make grants 
to, or enter into contracts or cooperative agreements with, Indian 
tribes, tribal organizations, Alaska Native entities, Indian-controlled 
organizations serving Indians, or Native Hawaiian organizations to carry 
out the authorized activities described in subsection (d).

    (d) Authorized Activities.--
            (1) In general.--Funds made available under subsection (c) 
        shall be used to carry out the activities described in paragraph 
        (2) that--
                    (A) are consistent with this section; and
                    (B) are necessary to meet the needs of Indians, 
                Alaska Natives, or Native Hawaiians preparing to enter, 
                reenter,

[[Page 128 STAT. 1561]]

                or retain unsubsidized employment leading to self-
                sufficiency.
            (2) Workforce development activities and supplemental 
        services.--
                    (A) In general.--Funds made available under 
                subsection (c) shall be used for--
                          (i) comprehensive workforce development 
                      activities for Indians, Alaska Natives, or Native 
                      Hawaiians, including training on entrepreneurial 
                      skills; or
                          (ii) supplemental services for Indian, Alaska 
                      Native, or Native Hawaiian youth on or near Indian 
                      reservations and in Oklahoma, Alaska, or Hawaii.
                    (B) Special rule.--Notwithstanding any other 
                provision of this section, individuals who were eligible 
                to participate in programs under section 401 of the Job 
                Training Partnership Act (as such section was in effect 
                on the day before the date of enactment of the Workforce 
                Investment Act of 1998) shall be eligible to participate 
                in an activity assisted under this section.

    (e) Program Plan.--In order to receive a grant or enter into a 
contract or cooperative agreement under this section, an entity 
described in subsection (c) shall submit to the Secretary a program plan 
that describes a 4-year strategy for meeting the needs of Indian, Alaska 
Native, or Native Hawaiian individuals, as appropriate, in the area 
served by such entity. Such plan shall--
            (1) be consistent with the purpose of this section;
            (2) identify the population to be served;
            (3) identify the education and employment needs of the 
        population to be served and the manner in which the activities 
        to be provided will strengthen the ability of the individuals 
        served to obtain or retain unsubsidized employment leading to 
        self-sufficiency;
            (4) describe the activities to be provided and the manner in 
        which such activities are to be integrated with other 
        appropriate activities; and
            (5) describe, after the entity submitting the plan consults 
        with the Secretary, the performance accountability measures to 
        be used to assess the performance of entities in carrying out 
        the activities assisted under this section, which shall include 
        the primary indicators of performance described in section 
        116(b)(2)(A) and expected levels of performance for such 
        indicators, in accordance with subsection (h).

    (f) Consolidation of Funds.--Each entity receiving assistance under 
subsection (c) may consolidate such assistance with assistance received 
from related programs in accordance with the provisions of the Indian 
Employment, Training and Related Services Demonstration Act of 1992 (25 
U.S.C. 3401 et seq.).
    (g) Nonduplicative and Nonexclusive Services.--Nothing in this 
section shall be construed--
            (1) to limit the eligibility of any entity described in 
        subsection (c) to participate in any activity offered by a State 
        or local entity under this Act; or
            (2) to preclude or discourage any agreement, between any 
        entity described in subsection (c) and any State or local 
        entity, to facilitate the provision of services by such entity 
        or to the population served by such entity.

    (h) Performance Accountability Measures.--

[[Page 128 STAT. 1562]]

            (1) Additional performance indicators and standards.--
                    (A) <<NOTE: Consultation. Applicability.>>  
                Development of indicators and standards.--The Secretary, 
                in consultation with the Native American Employment and 
                Training Council, shall develop a set of performance 
                indicators and standards that is in addition to the 
                primary indicators of performance described in section 
                116(b)(2)(A) and that shall be applicable to programs 
                under this section.
                    (B) Special considerations.--Such performance 
                indicators and standards shall take into account--
                          (i) the purpose of this section as described 
                      in subsection (a)(1);
                          (ii) the needs of the groups served by this 
                      section, including the differences in needs among 
                      such groups in various geographic service areas; 
                      and
                          (iii) the economic circumstances of the 
                      communities served, including differences in 
                      circumstances among various geographic service 
                      areas.
            (2) Agreement on adjusted levels of performance.--The 
        Secretary and the entity described in subsection (c) shall reach 
        agreement on the levels of performance for each of the primary 
        indicators of performance described in section 116(b)(2)(A), 
        taking into account economic conditions, characteristics of the 
        individuals served, and other appropriate factors and using, to 
        the extent practicable, the statistical adjustment model under 
        section 116(b)(3)(A)(viii). The levels agreed to shall be the 
        adjusted levels of performance and shall be incorporated in the 
        program plan.

    (i) Administrative Provisions.--
            (1) Organizational unit established.--The Secretary shall 
        designate a single organizational unit within the Department of 
        Labor that shall have primary responsibility for the 
        administration of the activities authorized under this section.
            (2) <<NOTE: Consultation.>>  Regulations.--The Secretary 
        shall consult with the entities described in subsection (c) in--
                    (A) establishing regulations to carry out this 
                section, including regulations relating to the 
                performance accountability measures for entities 
                receiving assistance under this section; and
                    (B) developing a funding distribution plan that 
                takes into consideration previous levels of funding 
                (prior to the date of enactment of this Act) to such 
                entities.
            (3) Waivers.--
                    (A) In general.--With respect to an entity described 
                in subsection (c), the Secretary, notwithstanding any 
                other provision of law, may, pursuant to a request 
                submitted by such entity that meets the requirements 
                established under subparagraph (B), waive any of the 
                statutory or regulatory requirements of this title that 
                are inconsistent with the specific needs of the entity 
                described in such subsection, except that the Secretary 
                may not waive requirements relating to wage and labor 
                standards, worker rights, participation and protection 
                of workers and participants, grievance procedures, and 
                judicial review.
                    (B) <<NOTE: Plan.>>  Request and approval.--An 
                entity described in subsection (c) that requests a 
                waiver under subparagraph

[[Page 128 STAT. 1563]]

                (A) shall submit a plan to the Secretary to improve the 
                program of workforce investment activities carried out 
                by the entity, which plan shall meet the requirements 
                established by the Secretary and shall be generally 
                consistent with the requirements of section 
                189(i)(3)(B).
            (4) Advisory council.--
                    (A) <<NOTE: Establishment. Consultation.>>  In 
                general.--Using funds made available to carry out this 
                section, the Secretary shall establish a Native American 
                Employment and Training Council to facilitate the 
                consultation described in paragraph (2) and to provide 
                the advice described in subparagraph (C).
                    (B) Composition.--The Council shall be composed of 
                individuals, appointed by the Secretary, who are 
                representatives of the entities described in subsection 
                (c).
                    (C) Duties.--The Council shall advise the Secretary 
                on the operation and administration of the programs 
                assisted under this section, including the selection of 
                the individual appointed as head of the unit established 
                under paragraph (1).
                    (D) Personnel matters.--
                          (i) Compensation of members.--Members of the 
                      Council shall serve without compensation.
                          (ii) Travel expenses.--The members of the 
                      Council shall be allowed travel expenses, 
                      including per diem in lieu of subsistence, at 
                      rates authorized for employees of agencies under 
                      subchapter I of chapter 57 of title 5, United 
                      States Code, while away from their homes or 
                      regular places of business in the performance of 
                      services for the Council.
                          (iii) Administrative support.--The Secretary 
                      shall provide the Council with such administrative 
                      support as may be necessary to perform the 
                      functions of the Council.
                    (E) Chairperson.--The Council shall select a 
                chairperson from among its members.
                    (F) Meetings.--The Council shall meet not less than 
                twice each year.
                    (G) Application.--Section 14 of the Federal Advisory 
                Committee Act (5 U.S.C. App.) shall not apply to the 
                Council.
            (5) Technical assistance.--The Secretary, acting through the 
        unit established under paragraph (1), is authorized to provide 
        technical assistance to entities described in subsection (c) 
        that receive assistance under such subsection to enable such 
        entities to improve the activities authorized under this section 
        that are provided by such entities.
            (6) Agreement for certain federally recognized indian tribes 
        to transfer funds to the program.--A federally recognized Indian 
        tribe that administers funds provided under this section and 
        funds provided by more than one State under other sections of 
        this title may enter into an agreement with the Secretary and 
        the Governors of the affected States to transfer the funds 
        provided by the States to the program administered by the tribe 
        under this section.

[[Page 128 STAT. 1564]]

    (j) <<NOTE: Grants. Contracts.>>  Compliance With Single Audit 
Requirements; Related Requirement.--Grants made and contracts and 
cooperative agreements entered into under this section shall be subject 
to the requirements of chapter 75 of subtitle V of title 31, United 
States Code, and charging of costs under this section shall be subject 
to appropriate circulars issued by the Office of Management and Budget.

    (k) Assistance to Unique Populations in Alaska and Hawaii.--
            (1) In general.--Notwithstanding any other provision of law, 
        the Secretary is authorized to award grants, on a competitive 
        basis, to entities with demonstrated experience and expertise in 
        developing and implementing programs for the unique populations 
        who reside in Alaska or Hawaii, including public and private 
        nonprofit organizations, tribal organizations, American Indian 
        tribal colleges or universities, institutions of higher 
        education, or consortia of such organizations or institutions, 
        to improve job training and workforce investment activities for 
        such unique populations.
            (2) Authorization of appropriations.--There are authorized 
        to be appropriated to carry out this subsection--
                    (A) $461,000 for fiscal year 2015;
                    (B) $497,000 for fiscal year 2016;
                    (C) $507,000 for fiscal year 2017;
                    (D) $518,000 for fiscal year 2018;
                    (E) $530,000 for fiscal year 2019; and
                    (F) $542,000 for fiscal year 2020.
SEC. 167. <<NOTE: Grants. Contracts. 29 USC 3222. Deadline.>>  
                        MIGRANT AND SEASONAL FARMWORKER PROGRAMS.

    (a) In General.--Every 4 years, the Secretary shall, on a 
competitive basis, make grants to, or enter into contracts with, 
eligible entities to carry out the activities described in subsection 
(d).
    (b) Eligible Entities.--To be eligible to receive a grant or enter 
into a contract under this section, an entity shall have an 
understanding of the problems of eligible migrant and seasonal 
farmworkers (including dependents), a familiarity with the area to be 
served, and the ability to demonstrate a capacity to administer and 
deliver effectively a diversified program of workforce investment 
activities (including youth workforce investment activities) and related 
assistance for eligible migrant and seasonal farmworkers.
    (c) Program Plan.--
            (1) In general.--To be eligible to receive a grant or enter 
        into a contract under this section, an entity described in 
        subsection (b) shall submit to the Secretary a plan that 
        describes a 4-year strategy for meeting the needs of eligible 
        migrant and seasonal farmworkers in the area to be served by 
        such entity.
            (2) Contents.--Such plan shall--
                    (A) describe the population to be served and 
                identify the education and employment needs of the 
                population to be served and the manner in which the 
                services to be provided will strengthen the ability of 
                the eligible migrant and seasonal farmworkers and 
                dependents to obtain or retain unsubsidized employment, 
                or stabilize their unsubsidized employment, including 
                upgraded employment in agriculture;

[[Page 128 STAT. 1565]]

                    (B) describe the related assistance and supportive 
                services to be provided and the manner in which such 
                assistance and services are to be integrated and 
                coordinated with other appropriate services;
                    (C) describe the performance accountability measures 
                to be used to assess the performance of such entity in 
                carrying out the activities assisted under this section, 
                which shall include the expected levels of performance 
                for the primary indicators of performance described in 
                section 116(b)(2)(A);
                    (D) describe the availability and accessibility of 
                local resources, such as supportive services, services 
                provided through one-stop delivery systems, and 
                education and training services, and how the resources 
                can be made available to the population to be served; 
                and
                    (E) describe the plan for providing services under 
                this section, including strategies and systems for 
                outreach, career planning, assessment, and delivery 
                through one-stop delivery systems.
            (3) Agreement on adjusted levels of performance.--The 
        Secretary and the entity described in subsection (b) shall reach 
        agreement on the levels of performance for each of the primary 
        indicators of performance described in section 116(b)(2)(A), 
        taking into account economic conditions, characteristics of the 
        individuals served, and other appropriate factors, and using, to 
        the extent practicable, the statistical adjustment model under 
        section 116(b)(3)(A)(viii). The levels agreed to shall be the 
        adjusted levels of performance and shall be incorporated in the 
        program plan.
            (4) Administration.--Grants and contracts awarded under this 
        section shall be centrally administered by the Department of 
        Labor and competitively awarded by the Secretary using 
        procedures consistent with standard Federal Government 
        competitive procurement policies.

    (d) Authorized Activities.--Funds made available under this section 
and section 127(a)(1) shall be used to carry out workforce investment 
activities (including youth workforce investment activities) and provide 
related assistance for eligible migrant and seasonal farmworkers, which 
may include--
            (1) outreach, employment, training, educational assistance, 
        literacy assistance, English language and literacy instruction, 
        pesticide and worker safety training, housing (including 
        permanent housing), supportive services, and school dropout 
        prevention and recovery activities;
            (2) followup services for those individuals placed in 
        employment;
            (3) self-employment and related business or micro-enterprise 
        development or education as needed by eligible individuals as 
        identified pursuant to the plan required by subsection (c);
            (4) customized career and technical education in occupations 
        that will lead to higher wages, enhanced benefits, and long-term 
        employment in agriculture or another area; and
            (5) technical assistance to improve coordination of services 
        and implement best practices relating to service delivery 
        through one-stop delivery systems.

    (e) Consultation With Governors and Local Boards.--In making grants 
and entering into contracts under this section, the

[[Page 128 STAT. 1566]]

Secretary shall consult with the Governors and local boards of the 
States in which the eligible entities will carry out the activities 
described in subsection (d).
    (f) <<NOTE: Consultation.>>  Regulations.--The Secretary shall 
consult with eligible migrant and seasonal farmworkers groups and States 
in establishing regulations to carry out this section, including 
regulations relating to how economic and demographic barriers to 
employment of eligible migrant and seasonal farmworkers should be 
considered and included in the negotiations leading to the adjusted 
levels of performance described in subsection (c)(3).

    (g) Compliance With Single Audit Requirements; Related 
Requirement.--Grants made and contracts entered into under this section 
shall be subject to the requirements of chapter 75 of subtitle V of 
title 31, United States Code and charging of costs under this section 
shall be subject to appropriate circulars issued by the Office of 
Management and Budget.
    (h) Funding Allocation.--From the funds appropriated and made 
available to carry out this section, the Secretary shall reserve not 
more than 1 percent for discretionary purposes, such as providing 
technical assistance to eligible entities.
    (i) Definitions.--In this section:
            (1) Eligible migrant and seasonal farmworkers.--The term 
        ``eligible migrant and seasonal farmworkers'' means individuals 
        who are eligible migrant farmworkers or are eligible seasonal 
        farmworkers.
            (2) Eligible migrant farmworker.--The term ``eligible 
        migrant farmworker'' means--
                    (A) an eligible seasonal farmworker described in 
                paragraph (3)(A) whose agricultural labor requires 
                travel to a job site such that the farmworker is unable 
                to return to a permanent place of residence within the 
                same day; and
                    (B) a dependent of the farmworker described in 
                subparagraph (A).
            (3) Eligible seasonal farmworker.--The term ``eligible 
        seasonal farmworker'' means--
                    (A) a low-income individual who--
                          (i) for 12 consecutive months out of the 24 
                      months prior to application for the program 
                      involved, has been primarily employed in 
                      agricultural or fish farming labor that is 
                      characterized by chronic unemployment or 
                      underemployment; and
                          (ii) faces multiple barriers to economic self-
                      sufficiency; and
                    (B) a dependent of the person described in 
                subparagraph (A).
SEC. 168. <<NOTE: 29 USC 3223.>>  TECHNICAL ASSISTANCE.

    (a) General Technical Assistance.--
            (1) In general.--The Secretary shall ensure that the 
        Department has sufficient capacity to, and does, provide, 
        coordinate, and support the development of, appropriate 
        training, technical assistance, staff development, and other 
        activities, including--
                    (A) assistance in replicating programs of 
                demonstrated effectiveness, to States and localities;

[[Page 128 STAT. 1567]]

                    (B) the training of staff providing rapid response 
                services;
                    (C) the training of other staff of recipients of 
                funds under this title, including the staff of local 
                boards and State boards;
                    (D) the training of members of State boards and 
                local boards;
                    (E) assistance in the development and implementation 
                of integrated, technology-enabled intake and case 
                management information systems for programs carried out 
                under this Act and programs carried out by one-stop 
                partners, such as standard sets of technical 
                requirements for the systems, offering interfaces that 
                States could use in conjunction with their current (as 
                of the first date of implementation of the systems) 
                intake and case management information systems that 
                would facilitate shared registration across programs;
                    (F) assistance regarding accounting and program 
                operations to States and localities (when such 
                assistance would not supplant assistance provided by the 
                State);
                    (G) peer review activities under this title; and
                    (H) in particular, assistance to States in making 
                transitions to implement the provisions of this Act.
            (2) Form of assistance.--
                    (A) <<NOTE: Consultation.>>  In general.--In order 
                to carry out paragraph (1) on behalf of a State or 
                recipient of financial assistance under section 166 or 
                167, the Secretary, after consultation with the State or 
                grant recipient, may award grants or enter into 
                contracts or cooperative agreements.
                    (B) <<NOTE: Grants. Contracts.>>  Limitation.--
                Grants or contracts awarded under paragraph (1) to 
                entities other than States or local units of government 
                that are for amounts in excess of $100,000 shall only be 
                awarded on a competitive basis.

    (b) Dislocated Worker Technical Assistance.--
            (1) Authority.--Of the amounts available pursuant to section 
        132(a)(2)(A), the Secretary shall reserve not more than 5 
        percent of such amounts to provide technical assistance to 
        States that do not meet the State performance accountability 
        measures for the primary indicators of performance described in 
        section 116(b)(2)(A)(i) with respect to employment and training 
        activities for dislocated workers. Using such reserved funds, 
        the Secretary may provide such assistance to other States, local 
        areas, and other entities involved in providing assistance to 
        dislocated workers, to promote the continuous improvement of 
        assistance provided to dislocated workers, under this title.
            (2) Training.--Amounts reserved under this subsection may be 
        used to provide for the training of staff, including 
        specialists, who provide rapid response services. Such training 
        shall include instruction in proven methods of promoting, 
        establishing, and assisting labor-management committees. Such 
        projects shall be administered through the Employment and 
        Training Administration of the Department.

    (c) Promising and Proven Practices Coordination.--The Secretary 
shall--
            (1) establish a system through which States may share 
        information regarding promising and proven practices with

[[Page 128 STAT. 1568]]

        regard to the operation of workforce investment activities under 
        this Act;
            (2) <<NOTE: Evaluation.>>  evaluate and disseminate 
        information regarding such promising and proven practices and 
        identify knowledge gaps; and
            (3) <<NOTE: Research.>>  commission research under section 
        169(b) to address knowledge gaps identified under paragraph (2).
SEC. 169. <<NOTE: 29 USC 3224.>>  EVALUATIONS AND RESEARCH.

    (a) Evaluations.--
            (1) Evaluations of programs and activities carried out under 
        this title.--
                    (A) In general.--For the purpose of improving the 
                management and effectiveness of programs and activities 
                carried out under this title, the Secretary, through 
                grants, contracts, or cooperative agreements, shall 
                provide for the continuing evaluation of the programs 
                and activities under this title, including those 
                programs and activities carried out under this section.
                    (B) Periodic independent evaluation.--The 
                evaluations carried out under this paragraph shall 
                include an independent evaluation, at least once every 4 
                years, of the programs and activities carried out under 
                this title.
            (2) Evaluation subjects.--Each evaluation carried out under 
        paragraph (1) shall address--
                    (A) the general effectiveness of such programs and 
                activities in relation to their cost, including the 
                extent to which the programs and activities--
                          (i) improve the employment competencies of 
                      participants in comparison to comparably-situated 
                      individuals who did not participate in such 
                      programs and activities; and
                          (ii) to the extent feasible, increase the 
                      level of total employment over the level that 
                      would have existed in the absence of such programs 
                      and activities;
                    (B) the effectiveness of the performance 
                accountability measures relating to such programs and 
                activities;
                    (C) the effectiveness of the structure and 
                mechanisms for delivery of services through such 
                programs and activities, including the coordination and 
                integration of services through such programs and 
                activities;
                    (D) the impact of such programs and activities on 
                the community, businesses, and participants involved;
                    (E) the impact of such programs and activities on 
                related programs and activities;
                    (F) the extent to which such programs and activities 
                meet the needs of various demographic groups; and
                    (G) such other factors as may be appropriate.
            (3) Evaluations of other programs and activities.--The 
        Secretary may conduct evaluations of other federally funded 
        employment-related programs and activities under other 
        provisions of law.
            (4) Techniques.--Evaluations conducted under this subsection 
        shall utilize appropriate and rigorous methodology and research 
        designs, including the use of control groups chosen by 
        scientific random assignment methodologies. The Secretary shall 
        conduct at least 1 multisite control group evaluation under

[[Page 128 STAT. 1569]]

        this subsection by the end of fiscal year 2019, and thereafter 
        shall ensure that such an analysis is included in the 
        independent evaluation described in paragraph (1)(B) that is 
        conducted at least once every 4 years.
            (5) Reports.--The entity carrying out an evaluation 
        described in paragraph (1) or (2) shall prepare and submit to 
        the Secretary a draft report and a final report containing the 
        results of the evaluation.
            (6) Reports to congress.--Not later than 30 days after the 
        completion of a draft report under paragraph (5), the Secretary 
        shall transmit the draft report to the Committee on Education 
        and the Workforce of the House of Representatives and the 
        Committee on Health, Education, Labor and Pensions of the 
        Senate. Not later than 60 days after the completion of a final 
        report under such paragraph, the Secretary shall transmit the 
        final report to such committees.
            (7) <<NOTE: Deadline.>>  Public availability.--Not later 
        than 30 days after the date the Secretary transmits the final 
        report as described in paragraph (6), the Secretary shall make 
        that final report available to the general public on the 
        Internet, on the Web site of the Department of Labor.
            (8) <<NOTE: Time period. Effective date.>>  Publication of 
        reports.--If an entity that enters into a contract or other 
        arrangement with the Secretary to conduct an evaluation of a 
        program or activity under this subsection requests permission 
        from the Secretary to publish a report resulting from the 
        evaluation, such entity may publish the report unless the 
        Secretary denies the request during the 90-day period beginning 
        on the date the Secretary receives such request.
            (9) Coordination.--The Secretary shall ensure the 
        coordination of evaluations carried out by States pursuant to 
        section 116(e) with the evaluations carried out under this 
        subsection.

    (b) Research, Studies, and Multistate Projects.--
            (1) <<NOTE: Consultation. Time periods. Federal Register, 
        publication. Plan.>>  In general.--After consultation with 
        States, localities, and other interested parties, the Secretary 
        shall, every 2 years, publish in the Federal Register, a plan 
        that describes the research, studies, and multistate project 
        priorities of the Department of Labor concerning employment and 
        training for the 5-year period following the submission of the 
        plan. The plan shall be consistent with the purposes of this 
        title, including the purpose of aligning and coordinating core 
        programs with other one-stop partner programs. Copies of the 
        plan shall be transmitted to the Committee on Education and the 
        Workforce of the House of Representatives, the Committee on 
        Health, Education, Labor, and Pensions of the Senate, the 
        Department of Education, and other relevant Federal agencies.
            (2) Factors.--The plan published under paragraph (1) shall 
        contain strategies to address national employment and training 
        problems and take into account factors such as--
                    (A) the availability of existing research (as of the 
                date of the publication);
                    (B) the need to ensure results that have interstate 
                validity;
                    (C) the benefits of economies of scale and the 
                efficiency of proposed projects; and

[[Page 128 STAT. 1570]]

                    (D) the likelihood that the results of the projects 
                will be useful to policymakers and stakeholders in 
                addressing employment and training problems.
            (3) <<NOTE: Grants. Contracts.>>  Research projects.--The 
        Secretary shall, through grants or contracts, carry out research 
        projects that will contribute to the solution of employment and 
        training problems in the United States and that are consistent 
        with the priorities specified in the plan published under 
        paragraph (1).
            (4) Studies and reports.--
                    (A) Net impact studies and reports.--The Secretary 
                of Labor, in coordination with the Secretary of 
                Education and other relevant Federal agencies, may 
                conduct studies to determine the net impact and best 
                practices of programs, services, and activities carried 
                out under this Act.
                    (B) Study on resources available to assist 
                disconnected youth.--The Secretary of Labor, in 
                coordination with the Secretary of Education, may 
                conduct a study examining the characteristics of 
                eligible youth that result in such youth being 
                significantly disconnected from education and workforce 
                participation, the ways in which such youth could have 
                greater opportunities for education attainment and 
                obtaining employment, and the resources available to 
                assist such youth in obtaining the skills, credentials, 
                and work experience necessary to become economically 
                self-sufficient.
                    (C) Study of effectiveness of workforce development 
                system in meeting business needs.--Using funds available 
                to carry out this subsection jointly with funds 
                available to the Secretary of Commerce, the 
                Administrator of the Small Business Administration, and 
                the Secretary of Education, the Secretary of Labor, in 
                coordination with the Secretary of Commerce, the 
                Administrator of the Small Business Administration, and 
                the Secretary of Education, may conduct a study of the 
                effectiveness of the workforce development system in 
                meeting the needs of business, such as through the use 
                of industry or sector partnerships, with particular 
                attention to the needs of small business, including in 
                assisting workers to obtain the skills needed to utilize 
                emerging technologies.
                    (D) Study on participants entering nontraditional 
                occupations.--The Secretary of Labor, in coordination 
                with the Secretary of Education, may conduct a study 
                examining the number and percentage of individuals who 
                receive employment and training activities and who enter 
                nontraditional occupations, successful strategies to 
                place and support the retention of individuals in 
                nontraditional employment (such as by providing post-
                placement assistance to participants in the form of exit 
                interviews, mentoring, networking, and leadership 
                development), and the degree to which recipients of 
                employment and training activities are informed of the 
                possibility of, or directed to begin, training or 
                education needed for entrance into nontraditional 
                occupations.
                    (E) Study on performance indicators.--The Secretary 
                of Labor, in coordination with the Secretary of 
                Education, may conduct studies to determine the 
                feasibility

[[Page 128 STAT. 1571]]

                of, and potential means to replicate, measuring the 
                compensation, including the wages, benefits, and other 
                incentives provided by an employer, received by program 
                participants by using data other than or in addition to 
                data available through wage records, for potential use 
                as a performance indicator.
                    (F) Study on job training for recipients of public 
                housing assistance.--The Secretary of Labor, in 
                coordination with the Secretary of Housing and Urban 
                Development, may conduct studies to assist public 
                housing authorities to provide, to recipients of public 
                housing assistance, job training programs that 
                successfully upgrade job skills and employment in, and 
                access to, jobs with opportunity for advancement and 
                economic self-sufficiency for such recipients.
                    (G) Study on improving employment prospects for 
                older individuals.--
                The <<NOTE: Coordination.>> Secretary of Labor, in 
                coordination with the Secretary of Education and the 
                Secretary of Health and Human Services, may conduct 
                studies that lead to better design and implementation 
                of, in conjunction with employers, local boards or State 
                boards, community colleges or area career and technical 
                education schools, and other organizations, effective 
                evidence-based strategies to provide services to workers 
                who are low-income, low-skilled older individuals that 
                increase the workers' skills and employment prospects.
                    (H) Study on prior learning.--The Secretary of 
                Labor, in coordination with other heads of Federal 
                agencies, as appropriate, may conduct studies that, 
                through convening stakeholders from the fields of 
                education, workforce, business, labor, defense, and 
                veterans services, and experts in such fields, develop 
                guidelines for assessing, accounting for, and utilizing 
                the prior learning of individuals, including dislocated 
                workers and veterans, in order to provide the 
                individuals with postsecondary educational credit for 
                such prior learning that leads to the attainment of a 
                recognized postsecondary credential identified under 
                section 122(d) and employment.
                    (I) Study on career pathways for health care 
                providers and providers of early education and child 
                care.--The Secretary of Labor, in coordination with the 
                Secretary of Education and the Secretary of Health and 
                Human Services, shall conduct a multistate study to 
                develop, implement, and build upon career advancement 
                models and practices for low-wage health care providers 
                or providers of early education and child care, 
                including faculty education and distance education 
                programs.
                    (J) Study on equivalent pay.--The Secretary shall 
                conduct a multistate study to develop and disseminate 
                strategies for ensuring that programs and activities 
                carried out under this Act are placing individuals in 
                jobs, education, and training that lead to equivalent 
                pay for men and women, including strategies to increase 
                the participation of women in high-wage, high-demand 
                occupations in which women are underrepresented.
                    (K) Reports.--The Secretary shall prepare and 
                disseminate to the Committee on Health, Education, 
                Labor,

[[Page 128 STAT. 1572]]

                and Pensions of the Senate and the Committee on 
                Education and the Workforce of the House of 
                Representatives, and to the public, including through 
                electronic means, reports containing the results of the 
                studies conducted under this paragraph.
            (5) Multistate projects.--
                    (A) Authority.--The Secretary may, through grants or 
                contracts, carry out multistate projects that require 
                demonstrated expertise that is available at the national 
                level to effectively disseminate best practices and 
                models for implementing employment and training 
                services, address the specialized employment and 
                training needs of particular service populations, or 
                address industry-wide skill shortages, to the extent 
                such projects are consistent with the priorities 
                specified in the plan published under paragraph (1).
                    (B) Design of grants.--Agreements for grants or 
                contracts awarded under this paragraph shall be designed 
                to obtain information relating to the provision of 
                services under different economic conditions or to 
                various demographic groups in order to provide guidance 
                at the national and State levels about how best to 
                administer specific employment and training services.
            (6) <<NOTE: Grants. Contracts.>>  Limitations.--
                    (A) Competitive awards.--A grant or contract awarded 
                for carrying out a project under this subsection in an 
                amount that exceeds $100,000 shall be awarded only on a 
                competitive basis, except that a noncompetitive award 
                may be made in the case of a project that is funded 
                jointly with other public or private sector entities 
                that provide a substantial portion of assistance under 
                the grant or contract for the project.
                    (B) Time limits.--A grant or contract shall not be 
                awarded under this subsection to the same organization 
                for more than 3 consecutive years unless such grant or 
                contract is competitively reevaluated within such 
                period.
                    (C) Peer review.--
                          (i) In general.--The Secretary shall utilize a 
                      peer review process--
                                    (I) to review and evaluate all 
                                applications for grants in amounts that 
                                exceed $500,000 that are submitted under 
                                this section; and
                                    (II) to review and designate 
                                exemplary and promising programs under 
                                this section.
                          (ii) Availability of funds.--The Secretary is 
                      authorized to use funds provided under this 
                      section to carry out peer review activities under 
                      this subparagraph.
                    (D) Priority.--In awarding grants or contracts under 
                this subsection, priority shall be provided to entities 
                with recognized expertise in the methods, techniques, 
                and knowledge of workforce investment activities. The 
                Secretary shall establish appropriate time limits for 
                the duration of such projects.

    (c) Dislocated Worker Projects.--Of the amount made available 
pursuant to section 132(a)(2)(A) for any program year, the Secretary 
shall use not more than 10 percent of such amount

[[Page 128 STAT. 1573]]

to carry out demonstration and pilot projects, multiservice projects, 
and multistate projects relating to the employment and training needs of 
dislocated workers. Of the requirements of this section, such projects 
shall be subject only to the provisions relating to review and 
evaluation of applications under subsection (b)(6)(C). Such projects may 
include demonstration and pilot projects relating to promoting self-
employment, promoting job creation, averting dislocations, assisting 
dislocated farmers, assisting dislocated fishermen, and promoting public 
works. Such projects shall be administered by the Secretary, acting 
through the Assistant Secretary for Employment and Training.
SEC. 170. <<NOTE: 29 USC 3225.>>  NATIONAL DISLOCATED WORKER 
                        GRANTS.

    (a) Definitions.--In this section:
            (1) Emergency or disaster.--The term ``emergency or 
        disaster'' means--
                    (A) an emergency or a major disaster, as defined in 
                paragraphs (1) and (2), respectively, of section 102 of 
                the Robert T. Stafford Disaster Relief and Emergency 
                Assistance Act (42 U.S.C. 5122 (1) and (2)); or
                    (B) an emergency or disaster situation of national 
                significance that could result in a potentially large 
                loss of employment, as declared or otherwise recognized 
                by the chief official of a Federal agency with authority 
                for or jurisdiction over the Federal response to the 
                emergency or disaster situation.
            (2) Disaster area.--The term ``disaster area'' means an area 
        that has suffered or in which has occurred an emergency or 
        disaster.

    (b) In General.--
            (1) Grants.--The Secretary is authorized to award national 
        dislocated worker grants--
                    (A) to an entity described in subsection (c)(1)(B) 
                to provide employment and training assistance to workers 
                affected by major economic dislocations, such as plant 
                closures, mass layoffs, or closures and realignments of 
                military installations;
                    (B) to provide assistance to--
                          (i) the Governor of any State within the 
                      boundaries of which is a disaster area, to provide 
                      disaster relief employment in the disaster area; 
                      or
                          (ii) the Governor of any State to which a 
                      substantial number of workers from an area in 
                      which an emergency or disaster has been declared 
                      or otherwise recognized have relocated;
                    (C) to provide additional assistance to a State 
                board or local board for eligible dislocated workers in 
                a case in which the State board or local board has 
                expended the funds provided under this section to carry 
                out activities described in subparagraphs (A) and (B) 
                and can demonstrate the need for additional funds to 
                provide appropriate services for such workers, in 
                accordance with requirements prescribed by the 
                Secretary; and
                    (D) to provide additional assistance to a State 
                board or local board serving an area where--
                          (i) a higher-than-average demand for 
                      employment and training activities for dislocated 
                      members of the

[[Page 128 STAT. 1574]]

                      Armed Forces, spouses described in section 
                      3(15)(E), or members of the Armed Forces described 
                      in subsection (c)(2)(A)(iv), exceeds State and 
                      local resources for providing such activities; and
                          (ii) such activities are to be carried out in 
                      partnership with the Department of Defense and 
                      Department of Veterans Affairs transition 
                      assistance programs.
            (2) <<NOTE: Deadline.>>  Decisions and obligations.--The 
        Secretary shall issue a final decision on an application for a 
        national dislocated worker grant under this subsection not later 
        than 45 calendar days after receipt of the 
        application. <<NOTE: Notice. Deadline.>> The Secretary shall 
        issue a notice of obligation for such grant not later than 10 
        days after the award of such grant.

    (c) Employment and Training Assistance Requirements.--
            (1) Grant recipient eligibility.--
                    (A) Application.--To be eligible to receive a grant 
                under subsection (b)(1)(A), an entity shall submit an 
                application to the Secretary at such time, in such 
                manner, and containing such information as the Secretary 
                may require.
                    (B) Eligible entity.--In this paragraph, the term 
                ``entity'' means a State, a local board, an entity 
                described in section 166(c), an entity determined to be 
                eligible by the Governor of the State involved, and any 
                other entity that demonstrates to the Secretary the 
                capability to effectively respond to the circumstances 
                relating to particular dislocations.
            (2) Participant eligibility.--
                    (A) In general.--In order to be eligible to receive 
                employment and training assistance under a national 
                dislocated worker grant awarded pursuant to subsection 
                (b)(1)(A), an individual shall be--
                          (i) a dislocated worker;
                          (ii) <<NOTE: Time period.>>  a civilian 
                      employee of the Department of Defense or the 
                      Department of Energy employed at a military 
                      installation that is being closed, or that will 
                      undergo realignment, within the next 24 months 
                      after the date of the determination of 
                      eligibility;
                          (iii) <<NOTE: Determination.>>  an individual 
                      who is employed in a nonmanagerial position with a 
                      Department of Defense contractor, who is 
                      determined by the Secretary of Defense to be at 
                      risk of termination from employment as a result of 
                      reductions in defense expenditures, and whose 
                      employer is converting operations from defense to 
                      nondefense applications in order to prevent worker 
                      layoffs; or
                          (iv) a member of the Armed Forces who--
                                    (I) was on active duty or full-time 
                                National Guard duty;
                                    (II)(aa) is involuntarily separated 
                                (as defined in section 1141 of title 10, 
                                United States Code) from active duty or 
                                full-time National Guard duty; or
                                    (bb) is separated from active duty 
                                or full-time National Guard duty 
                                pursuant to a special separation 
                                benefits program under section 1174a of 
                                title

[[Page 128 STAT. 1575]]

                                10, United States Code, or the voluntary 
                                separation incentive program under 
                                section 1175 of that title;
                                    (III) is not entitled to retired or 
                                retained pay incident to the separation 
                                described in subclause (II); and
                                    (IV) <<NOTE: Time period. Effective 
                                date.>>  applies for such employment and 
                                training assistance before the end of 
                                the 180-day period beginning on the date 
                                of that separation.
                    (B) Retraining assistance.--The individuals 
                described in subparagraph (A)(iii) shall be eligible for 
                retraining assistance to upgrade skills by obtaining 
                marketable skills needed to support the conversion 
                described in subparagraph (A)(iii).
                    (C) <<NOTE: Publication.>>  Additional 
                requirements.--The Secretary shall establish and publish 
                additional requirements related to eligibility for 
                employment and training assistance under the national 
                dislocated worker grants to ensure effective use of the 
                funds available for this purpose.
                    (D) Definitions.--In this paragraph, the terms 
                ``military installation'' and ``realignment'' have the 
                meanings given the terms in section 2910 of the Defense 
                Base Closure and Realignment Act of 1990 (Public Law 
                101-510; 10 U.S.C. 2687 note).

    (d) Disaster Relief Employment Assistance Requirements.--
            (1) In general.--Funds made available under subsection 
        (b)(1)(B)--
                    (A) shall be used, in coordination with the 
                Administrator of the Federal Emergency Management 
                Agency, as applicable, to provide disaster relief 
                employment on projects that provide food, clothing, 
                shelter, and other humanitarian assistance for emergency 
                and disaster victims, and projects regarding demolition, 
                cleaning, repair, renovation, and reconstruction of 
                damaged and destroyed structures, facilities, and lands 
                located within the disaster area and in offshore areas 
                related to the emergency or disaster;
                    (B) may be expended through public and private 
                agencies and organizations engaged in such projects; and
                    (C) may be expended to provide employment and 
                training activities.
            (2) Eligibility.--An individual shall be eligible to be 
        offered disaster relief employment under subsection (b)(1)(B) if 
        such individual--
                    (A) is a dislocated worker;
                    (B) is a long-term unemployed individual;
                    (C) is temporarily or permanently laid off as a 
                consequence of the emergency or disaster; or
                    (D) in the case of an individual who is self-
                employed, becomes unemployed or significantly 
                underemployed as a result of the emergency or disaster.
            (3) <<NOTE: Time period.>>  Limitations on disaster relief 
        employment.--
                    (A) In general.--Except as provided in subparagraph 
                (B), no individual shall be employed under subsection 
                (b)(1)(B) for more than 12 months for work related to 
                recovery from a single emergency or disaster.

[[Page 128 STAT. 1576]]

                    (B) Extension.--At the request of a State, the 
                Secretary may extend such employment, related to 
                recovery from a single emergency or disaster involving 
                the State, for not more than an additional 12 months.
            (4) Use of available funds.--Funds made available under 
        subsection (b)(1)(B) shall be available to assist workers 
        described in paragraph (2) who are affected by an emergency or 
        disaster, including workers who have relocated from an area in 
        which an emergency or disaster has been declared or otherwise 
        recognized, as 
        appropriate. <<NOTE: Determination. Notification.>> Under 
        conditions determined by the Secretary and following 
        notification to the Secretary, a State may use such funds, that 
        are appropriated for any fiscal year and available for 
        expenditure under any grant awarded to the State under this 
        section, to provide any assistance authorized under this 
        subsection. Funds used pursuant to the authority provided under 
        this paragraph shall be subject to the liability and 
        reimbursement requirements described in paragraph (5).
            (5) Liability and reimbursement.--Nothing in this Act shall 
        be construed to relieve liability, by a responsible party that 
        is liable under Federal law, for any costs incurred by the 
        United States under subsection (b)(1)(B) or this subsection, 
        including the responsibility to provide reimbursement for such 
        costs to the United States.
SEC. 171. <<NOTE: 29 USC 3226.>>  YOUTHBUILD PROGRAM.

    (a) Statement of Purpose.--The purposes of this section are--
            (1) to enable disadvantaged youth to obtain the education 
        and employment skills necessary to achieve economic self-
        sufficiency in occupations in demand and postsecondary education 
        and training opportunities;
            (2) to provide disadvantaged youth with opportunities for 
        meaningful work and service to their communities;
            (3) to foster the development of employment and leadership 
        skills and commitment to community development among youth in 
        low-income communities;
            (4) to expand the supply of permanent affordable housing for 
        homeless individuals and low-income families by utilizing the 
        energies and talents of disadvantaged youth; and
            (5) to improve the quality and energy efficiency of 
        community and other nonprofit and public facilities, including 
        those facilities that are used to serve homeless and low-income 
        families.

    (b) Definitions.--In this section:
            (1) Adjusted income.--The term ``adjusted income'' has the 
        meaning given the term in section 3(b) of the United States 
        Housing Act of 1937 (42 U.S.C. 1437a(b)).
            (2) Applicant.--The term ``applicant'' means an eligible 
        entity that has submitted an application under subsection (c).
            (3) Eligible entity.--The term ``eligible entity'' means a 
        public or private nonprofit agency or organization (including a 
        consortium of such agencies or organizations), including--
                    (A) a community-based organization;
                    (B) a faith-based organization;
                    (C) an entity carrying out activities under this 
                title, such as a local board;
                    (D) a community action agency;

[[Page 128 STAT. 1577]]

                    (E) a State or local housing development agency;
                    (F) an Indian tribe or other agency primarily 
                serving Indians;
                    (G) a community development corporation;
                    (H) a State or local youth service or conservation 
                corps; and
                    (I) any other entity eligible to provide education 
                or employment training under a Federal program (other 
                than the program carried out under this section).
            (4) Homeless individual.--The term ``homeless individual'' 
        means a homeless individual (as defined in section 41403(6) of 
        the Violence Against Women Act of 1994 (42 U.S.C. 14043e-2(6))) 
        or a homeless child or youth (as defined in section 725(2) of 
        the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
        11434a(2))).
            (5) Housing development agency.--The term ``housing 
        development agency'' means any agency of a State or local 
        government, or any private nonprofit organization, that is 
        engaged in providing housing for homeless individuals or low-
        income families.
            (6) Income.--The term ``income'' has the meaning given the 
        term in section 3(b) of the United States Housing Act of 1937 
        (42 U.S.C. 1437a(b)).
            (7) Indian; indian tribe.--The terms ``Indian'' and ``Indian 
        tribe'' have the meanings given such terms in section 4 of the 
        Indian Self-Determination and Education Assistance Act (25 
        U.S.C. 450b).
            (8) Low-income family.--The term ``low-income family'' means 
        a family described in section 3(b)(2) of the United States 
        Housing Act of 1937 (42 U.S.C. 1437a(b)(2)).
            (9) Qualified national nonprofit agency.--The term 
        ``qualified national nonprofit agency'' means a nonprofit agency 
        that--
                    (A) has significant national experience providing 
                services consisting of training, information, technical 
                assistance, and data management to YouthBuild programs 
                or similar projects; and
                    (B) has the capacity to provide those services.
            (10) Registered apprenticeship program.--The term 
        ``registered apprenticeship program'' means an apprenticeship 
        program--
                    (A) registered under the Act of August 16, 1937 
                (commonly known as the ``National Apprenticeship Act''; 
                50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.); and
                    (B) that meets such other criteria as may be 
                established by the Secretary under this section.
            (11) Transitional housing.--The term ``transitional 
        housing'' has the meaning given the term in section 401(29) of 
        the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
        11360(29)).
            (12) Youthbuild program.--The term ``YouthBuild program'' 
        means any program that receives assistance under this section 
        and provides disadvantaged youth with opportunities for 
        employment, education, leadership development, and training 
        through the rehabilitation (which, for purposes of this section, 
        shall include energy efficiency enhancements) or

[[Page 128 STAT. 1578]]

        construction of housing for homeless individuals and low-income 
        families, and of public facilities.

    (c) YouthBuild Grants.--
            (1) Amounts of grants.--The Secretary is authorized to make 
        grants to applicants for the purpose of carrying out YouthBuild 
        programs approved under this section.
            (2) Eligible activities.--An entity that receives a grant 
        under this subsection shall use the funds made available through 
        the grant to carry out a YouthBuild program, which may include 
        the following activities:
                    (A) Education and workforce investment activities 
                including--
                          (i) work experience and skills training 
                      (coordinated, to the maximum extent feasible, with 
                      preapprenticeship and registered apprenticeship 
                      programs) in the activities described in 
                      subparagraphs (B) and (C) related to 
                      rehabilitation or construction, and, if approved 
                      by the Secretary, in additional in-demand industry 
                      sectors or occupations in the region in which the 
                      program operates;
                          (ii) occupational skills training;
                          (iii) other paid and unpaid work experiences, 
                      including internships and job shadowing;
                          (iv) services and activities designed to meet 
                      the educational needs of participants, including--
                                    (I) basic skills instruction and 
                                remedial education;
                                    (II) language instruction 
                                educational programs for participants 
                                who are English language learners;
                                    (III) secondary education services 
                                and activities, including tutoring, 
                                study skills training, and school 
                                dropout prevention and recovery 
                                activities, designed to lead to the 
                                attainment of a secondary school diploma 
                                or its recognized equivalent (including 
                                recognized certificates of attendance or 
                                similar documents for individuals with 
                                disabilities);
                                    (IV) counseling and assistance in 
                                obtaining postsecondary education and 
                                required financial aid; and
                                    (V) alternative secondary school 
                                services;
                          (v) counseling services and related 
                      activities, such as comprehensive guidance and 
                      counseling on drug and alcohol abuse and referral;
                          (vi) activities designed to develop employment 
                      and leadership skills, which may include community 
                      service and peer-centered activities encouraging 
                      responsibility and other positive social 
                      behaviors, and activities related to youth policy 
                      committees that participate in decision-making 
                      related to the program;
                          (vii) supportive services and provision of 
                      need-based stipends necessary to enable 
                      individuals to participate in the program and to 
                      assist individuals, for a period not to exceed 12 
                      months after the completion of training, in 
                      obtaining or retaining employment,

[[Page 128 STAT. 1579]]

                      or applying for and transitioning to postsecondary 
                      education or training; and
                          (viii) job search and assistance.
                    (B) Supervision and training for participants in the 
                rehabilitation or construction of housing, including 
                residential housing for homeless individuals or low-
                income families, or transitional housing for homeless 
                individuals, and, if approved by the Secretary, in 
                additional in-demand industry sectors or occupations in 
                the region in which the program operates.
                    (C) Supervision and training for participants--
                          (i) in the rehabilitation or construction of 
                      community and other public facilities, except that 
                      not more than 15 percent of funds appropriated to 
                      carry out this section may be used for such 
                      supervision and training; and
                          (ii) if approved by the Secretary, in 
                      additional in-demand industry sectors or 
                      occupations in the region in which the program 
                      operates.
                    (D) Payment of administrative costs of the 
                applicant, including recruitment and selection of 
                participants, except that not more than 10 percent of 
                the amount of assistance provided under this subsection 
                to the grant recipient may be used for such costs.
                    (E) Adult mentoring.
                    (F) Provision of wages, stipends, or benefits to 
                participants in the program.
                    (G) Ongoing training and technical assistance that 
                are related to developing and carrying out the program.
                    (H) Follow-up services.
            (3) Application.--
                    (A) Form and procedure.--To be qualified to receive 
                a grant under this subsection, an eligible entity shall 
                submit an application at such time, in such manner, and 
                containing such information as the Secretary may 
                require.
                    (B) Minimum requirements.--The Secretary shall 
                require that the application contain, at a minimum--
                          (i) labor market information for the labor 
                      market area where the proposed program will be 
                      implemented, including both current data (as of 
                      the date of submission of the application) and 
                      projections on career opportunities in 
                      construction and in-demand industry sectors or 
                      occupations;
                          (ii) a request for the grant, specifying the 
                      amount of the grant requested and its proposed 
                      uses;
                          (iii) a description of the applicant and a 
                      statement of its qualifications, including a 
                      description of the applicant's relationship with 
                      local boards, one-stop operators, local unions, 
                      entities carrying out registered apprenticeship 
                      programs, other community groups, and employers, 
                      and the applicant's past experience, if any, with 
                      rehabilitation or construction of housing or 
                      public facilities, and with youth education and 
                      employment training programs;
                          (iv) a description of the proposed site for 
                      the proposed program;

[[Page 128 STAT. 1580]]

                          (v) a description of the educational and job 
                      training activities, work opportunities, 
                      postsecondary education and training 
                      opportunities, and other services that will be 
                      provided to participants, and how those 
                      activities, opportunities, and services will 
                      prepare youth for employment in in-demand industry 
                      sectors or occupations in the labor market area 
                      described in clause (i);
                          (vi)(I) a description of the proposed 
                      activities to be undertaken under the grant 
                      related to rehabilitation or construction, and, in 
                      the case of an applicant requesting approval from 
                      the Secretary to also carry out additional 
                      activities related to in-demand industry sectors 
                      or occupations, a description of such additional 
                      proposed activities; and
                          (II) the anticipated schedule for carrying out 
                      all activities proposed under subclause (I);
                          (vii) a description of the manner in which 
                      eligible youth will be recruited and selected as 
                      participants, including a description of 
                      arrangements that will be made with local boards, 
                      one-stop operators, faith- and community-based 
                      organizations, State educational agencies or local 
                      educational agencies (including agencies of Indian 
                      tribes), public assistance agencies, the courts of 
                      jurisdiction, agencies operating shelters for 
                      homeless individuals and other agencies that serve 
                      youth who are homeless individuals, foster care 
                      agencies, and other appropriate public and private 
                      agencies;
                          (viii) a description of the special outreach 
                      efforts that will be undertaken to recruit 
                      eligible young women (including young women with 
                      dependent children) as participants;
                          (ix) a description of the specific role of 
                      employers in the proposed program, such as their 
                      role in developing the proposed program and 
                      assisting in service provision and in placement 
                      activities;
                          (x) a description of how the proposed program 
                      will be coordinated with other Federal, State, and 
                      local activities and activities conducted by 
                      Indian tribes, such as local workforce investment 
                      activities, career and technical education and 
                      training programs, adult and language instruction 
                      educational programs, activities conducted by 
                      public schools, activities conducted by community 
                      colleges, national service programs, and other job 
                      training provided with funds available under this 
                      title;
                          (xi) assurances that there will be a 
                      sufficient number of adequately trained 
                      supervisory personnel in the proposed program;
                          (xii) a description of the levels of 
                      performance to be achieved with respect to the 
                      primary indicators of performance for eligible 
                      youth described in section 116(b)(2)(A)(ii);
                          (xiii) a description of the applicant's 
                      relationship with local building trade unions 
                      regarding their involvement in training to be 
                      provided through the proposed program, the 
                      relationship of the proposed

[[Page 128 STAT. 1581]]

                      program to established registered apprenticeship 
                      programs and employers, the ability of the 
                      applicant to grant an industry-recognized 
                      certificate or certification through the program, 
                      and the quality of the program leading to the 
                      certificate or certification;
                          (xiv) a description of activities that will be 
                      undertaken to develop the leadership skills of 
                      participants;
                          (xv) a detailed budget and a description of 
                      the system of fiscal controls, and auditing and 
                      accountability procedures, that will be used to 
                      ensure fiscal soundness for the proposed program;
                          (xvi) a description of the commitments for any 
                      additional resources (in addition to the funds 
                      made available through the grant) to be made 
                      available to the proposed program from--
                                    (I) the applicant;
                                    (II) recipients of other Federal, 
                                State, or local housing and community 
                                development assistance that will sponsor 
                                any part of the rehabilitation or 
                                construction, operation and maintenance, 
                                or other housing and community 
                                development activities undertaken as 
                                part of the proposed program; or
                                    (III) entities carrying out other 
                                Federal, State, or local activities or 
                                activities conducted by Indian tribes, 
                                including career and technical education 
                                and training programs, adult and 
                                language instruction educational 
                                programs, and job training provided with 
                                funds available under this title;
                          (xvii) information identifying, and a 
                      description of, the financing proposed for any--
                                    (I) rehabilitation of the property 
                                involved;
                                    (II) acquisition of the property; or
                                    (III) construction of the property;
                          (xviii) information identifying, and a 
                      description of, the entity that will operate and 
                      manage the property;
                          (xix) information identifying, and a 
                      description of, the data collection systems to be 
                      used;
                          (xx) <<NOTE: Certification.>>  a 
                      certification, by a public official responsible 
                      for the housing strategy for the State or unit of 
                      general local government within which the proposed 
                      program is located, that the proposed program is 
                      consistent with the housing strategy; and
                          (xxi) <<NOTE: Certification.>>  a 
                      certification that the applicant will comply with 
                      the requirements of the Fair Housing Act (42 
                      U.S.C. 3601 et seq.) and will affirmatively 
                      further fair housing.
            (4) Selection criteria.--For an applicant to be eligible to 
        receive a grant under this subsection, the applicant and the 
        applicant's proposed program shall meet such selection criteria 
        as the Secretary shall establish under this section, which shall 
        include criteria relating to--
                    (A) the qualifications or potential capabilities of 
                an applicant;
                    (B) an applicant's potential for developing a 
                successful YouthBuild program;

[[Page 128 STAT. 1582]]

                    (C) the need for an applicant's proposed program, as 
                determined by the degree of economic distress of the 
                community from which participants would be recruited 
                (measured by indicators such as poverty, youth 
                unemployment, and the number of individuals who have 
                dropped out of secondary school) and of the community in 
                which the housing and community and public facilities 
                proposed to be rehabilitated or constructed is located 
                (measured by indicators such as incidence of 
                homelessness, shortage of affordable housing, and 
                poverty);
                    (D) the commitment of an applicant to providing 
                skills training, leadership development, and education 
                to participants;
                    (E) the focus of a proposed program on preparing 
                youth for in-demand industry sectors or occupations, or 
                postsecondary education and training opportunities;
                    (F) the extent of an applicant's coordination of 
                activities to be carried out through the proposed 
                program with local boards, one-stop operators, and one-
                stop partners participating in the operation of the one-
                stop delivery system involved, or the extent of the 
                applicant's good faith efforts in achieving such 
                coordination;
                    (G) the extent of the applicant's coordination of 
                activities with public education, criminal justice, 
                housing and community development, national service, or 
                postsecondary education or other systems that relate to 
                the goals of the proposed program;
                    (H) the extent of an applicant's coordination of 
                activities with employers in the local area involved;
                    (I) the extent to which a proposed program provides 
                for inclusion of tenants who were previously homeless 
                individuals in the rental housing provided through the 
                program;
                    (J) the commitment of additional resources (in 
                addition to the funds made available through the grant) 
                to a proposed program by--
                          (i) an applicant;
                          (ii) recipients of other Federal, State, or 
                      local housing and community development assistance 
                      who will sponsor any part of the rehabilitation or 
                      construction, operation and maintenance, or other 
                      housing and community development activities 
                      undertaken as part of the proposed program; or
                          (iii) entities carrying out other Federal, 
                      State, or local activities or activities conducted 
                      by Indian tribes, including career and technical 
                      education and training programs, adult and 
                      language instruction educational programs, and job 
                      training provided with funds available under this 
                      title;
                    (K) the applicant's potential to serve different 
                regions, including rural areas and States that have not 
                previously received grants for YouthBuild programs; and
                    (L) such other factors as the Secretary determines 
                to be appropriate for purposes of carrying out the 
                proposed program in an effective and efficient manner.
            (5) <<NOTE: Notification. Deadline.>>  Approval.--To the 
        extent practicable, the Secretary shall notify each applicant, 
        not later than 5 months after the

[[Page 128 STAT. 1583]]

        date of receipt of the application by the Secretary, whether the 
        application is approved or not approved.

    (d) Use of Housing Units.--Residential housing units rehabilitated 
or constructed using funds made available under subsection (c), shall be 
available solely--
            (1) for rental by, or sale to, homeless individuals or low-
        income families; or
            (2) for use as transitional or permanent housing, for the 
        purpose of assisting in the movement of homeless individuals to 
        independent living.

    (e) Additional Program Requirements.--
            (1) Eligible participants.--
                    (A) In general.--Except as provided in subparagraph 
                (B), an individual may participate in a YouthBuild 
                program only if such individual is--
                          (i) not less than age 16 and not more than age 
                      24, on the date of enrollment;
                          (ii) a member of a low-income family, a youth 
                      in foster care (including youth aging out of 
                      foster care), a youth offender, a youth who is an 
                      individual with a disability, a child of 
                      incarcerated parents, or a migrant youth; and
                          (iii) a school dropout, or an individual who 
                      was a school dropout and has subsequently 
                      reenrolled.
                    (B) Exception for individuals not meeting income or 
                educational need requirements.--Not more than 25 percent 
                of the participants in such program may be individuals 
                who do not meet the requirements of clause (ii) or (iii) 
                of subparagraph (A), but who--
                          (i) are basic skills deficient, despite 
                      attainment of a secondary school diploma or its 
                      recognized equivalent (including recognized 
                      certificates of attendance or similar documents 
                      for individuals with disabilities); or
                          (ii) have been referred by a local secondary 
                      school for participation in a YouthBuild program 
                      leading to the attainment of a secondary school 
                      diploma.
            (2) <<NOTE: Time period.>>  Participation limitation.--An 
        eligible individual selected for participation in a YouthBuild 
        program shall be offered full-time participation in the program 
        for a period of not less than 6 months and not more than 24 
        months.
            (3) Minimum time devoted to educational services and 
        activities.--A YouthBuild program receiving assistance under 
        subsection (c) shall be structured so that participants in the 
        program are offered--
                    (A) education and related services and activities 
                designed to meet educational needs, such as those 
                specified in clauses (iv) through (vii) of subsection 
                (c)(2)(A), during at least 50 percent of the time during 
                which the participants participate in the program; and
                    (B) work and skill development activities, such as 
                those specified in clauses (i), (ii), (iii), and (viii) 
                of subsection (c)(2)(A), during at least 40 percent of 
                the time during which the participants participate in 
                the program.
            (4) Authority restriction.--No provision of this section may 
        be construed to authorize any agency, officer, or employee of 
        the United States to exercise any direction, supervision,

[[Page 128 STAT. 1584]]

        or control over the curriculum, program of instruction, 
        administration, or personnel of any educational institution 
        (including a school) or school system, or over the selection of 
        library resources, textbooks, or other printed or published 
        instructional materials by any educational institution or school 
        system.
            (5) State and local standards.--All educational programs and 
        activities supported with funds provided under subsection (c) 
        shall be consistent with applicable State and local educational 
        standards. Standards and procedures for the programs and 
        activities that relate to awarding academic credit for and 
        certifying educational attainment in such programs and 
        activities shall be consistent with applicable State and local 
        educational standards.

    (f) Levels of Performance and Indicators.--
            (1) In general.--The Secretary shall annually establish 
        expected levels of performance for YouthBuild programs relating 
        to each of the primary indicators of performance for eligible 
        youth activities described in section 116(b)(2)(A)(ii).
            (2) Additional indicators.--The Secretary may establish 
        expected levels of performance for additional indicators for 
        YouthBuild programs, as the Secretary determines appropriate.

    (g) Management and Technical Assistance.--
            (1) Secretary assistance.--The Secretary may enter into 
        contracts with 1 or more entities to provide assistance to the 
        Secretary in the management, supervision, and coordination of 
        the program carried out under this section.
            (2) Technical assistance.--
                    (A) Contracts and grants.--The Secretary shall enter 
                into contracts with or make grants to 1 or more 
                qualified national nonprofit agencies, in order to 
                provide training, information, technical assistance, 
                program evaluation, and data management to recipients of 
                grants under subsection (c).
                    (B) Reservation of funds.--Of the amounts available 
                under subsection (i) to carry out this section for a 
                fiscal year, the Secretary shall reserve 5 percent to 
                carry out subparagraph (A).
            (3) Capacity building grants.--
                    (A) In general.--In each fiscal year, the Secretary 
                may use not more than 3 percent of the amounts available 
                under subsection (i) to award grants to 1 or more 
                qualified national nonprofit agencies to pay for the 
                Federal share of the cost of capacity building 
                activities.
                    (B) Federal share.--The Federal share of the cost 
                described in subparagraph (A) shall be 25 percent. The 
                non-Federal share shall be provided from private 
                sources.

    (h) Subgrants and Contracts.--Each recipient of a grant under 
subsection (c) to carry out a YouthBuild program shall provide the 
services and activities described in this section directly or through 
subgrants, contracts, or other arrangements with local educational 
agencies, institutions of higher education, State or local housing 
development agencies, other public agencies, including agencies of 
Indian tribes, or private organizations.
    (i) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            (1) $77,534,000 for fiscal year 2015;
            (2) $83,523,000 for fiscal year 2016;

[[Page 128 STAT. 1585]]

            (3) $85,256,000 for fiscal year 2017;
            (4) $87,147,000 for fiscal year 2018;
            (5) $89,196,000 for fiscal year 2019; and
            (6) $91,087,000 for fiscal year 2020.
SEC. 172. <<NOTE: 29 USC 3227.>>  AUTHORIZATION OF APPROPRIATIONS.

    (a) Native American Programs.--There are authorized to be 
appropriated to carry out section 166 (not including subsection (k) of 
such section)--
            (1) $46,082,000 for fiscal year 2015;
            (2) $49,641,000 for fiscal year 2016;
            (3) $50,671,000 for fiscal year 2017;
            (4) $51,795,000 for fiscal year 2018;
            (5) $53,013,000 for fiscal year 2019; and
            (6) $54,137,000 for fiscal year 2020.

    (b) Migrant and Seasonal Farmworker Programs.--There are authorized 
to be appropriated to carry out section 167--
            (1) $81,896,000 for fiscal year 2015;
            (2) $88,222,000 for fiscal year 2016;
            (3) $90,052,000 for fiscal year 2017;
            (4) $92,050,000 for fiscal year 2018;
            (5) $94,214,000 for fiscal year 2019; and
            (6) $96,211,000 for fiscal year 2020.

    (c) Technical Assistance.--There are authorized to be appropriated 
to carry out section 168--
            (1) $3,000,000 for fiscal year 2015;
            (2) $3,232,000 for fiscal year 2016;
            (3) $3,299,000 for fiscal year 2017;
            (4) $3,372,000 for fiscal year 2018;
            (5) $3,451,000 for fiscal year 2019; and
            (6) $3,524,000 for fiscal year 2020.

    (d) Evaluations and Research.--There are authorized to be 
appropriated to carry out section 169--
            (1) $91,000,000 for fiscal year 2015;
            (2) $98,029,000 for fiscal year 2016;
            (3) $100,063,000 for fiscal year 2017;
            (4) $102,282,000 for fiscal year 2018;
            (5) $104,687,000 for fiscal year 2019; and
            (6) $106,906,000 for fiscal year 2020.

    (e) Assistance for Veterans.--If, as of the date of enactment of 
this Act, any unobligated funds appropriated to carry out section 168 of 
the Workforce Investment Act of 1998, as in effect on the day before the 
date of enactment of this Act, remain available, the Secretary of Labor 
shall continue to use such funds to carry out such section, as in effect 
on such day, until all of such funds are expended.
    (f) Assistance for Eligible Workers.--If, as of the date of 
enactment of this Act, any unobligated funds appropriated to carry out 
subsections (f) and (g) of section 173 of the Workforce Investment Act 
of 1998, as in effect on the day before the date of enactment of this 
Act, remain available, the Secretary of Labor shall continue to use such 
funds to carry out such subsections, as in effect on such day, until all 
of such funds are expended.

[[Page 128 STAT. 1586]]

                       Subtitle E--Administration

SEC. 181. <<NOTE: 29 USC 3241.>>  REQUIREMENTS AND RESTRICTIONS.

    (a) Benefits.--
            (1) Wages.--
                    (A) In general.--Individuals in on-the-job training 
                or individuals employed in activities under this title 
                shall be compensated at the same rates, including 
                periodic increases, as trainees or employees who are 
                similarly situated in similar occupations by the same 
                employer and who have similar training, experience, and 
                skills, and such rates shall be in accordance with 
                applicable law, but in no event less than the higher of 
                the rate specified in section 6(a)(1) of the Fair Labor 
                Standards Act of 1938 (29 U.S.C. 206(a)(1)) or the 
                applicable State or local minimum wage law.
                    (B) Rule of construction.--The reference in 
                subparagraph (A) to section 6(a)(1) of the Fair Labor 
                Standards Act of 1938 (29 U.S.C. 206(a)(1)) shall not be 
                applicable for individuals in territorial jurisdictions 
                in which section 6(a)(1) of the Fair Labor Standards Act 
                of 1938 (29 U.S.C. 206(a)(1)) does not apply.
            (2) Treatment of allowances, earnings, and payments.--
        Allowances, earnings, and payments to individuals participating 
        in programs under this title shall not be considered as income 
        for the purposes of determining eligibility for and the amount 
        of income transfer and in-kind aid furnished under any Federal 
        or federally assisted program based on need, other than as 
        provided under the Social Security Act (42 U.S.C. 301 et seq.).

    (b) Labor Standards.--
            (1) Limitations on activities that impact wages of 
        employees.--No funds provided under this title shall be used to 
        pay the wages of incumbent employees during their participation 
        in economic development activities provided through a statewide 
        workforce development system.
            (2) Displacement.--
                    (A) Prohibition.--A participant in a program or 
                activity authorized under this title (referred to in 
                this section as a ``specified activity'') shall not 
                displace (including a partial displacement, such as a 
                reduction in the hours of nonovertime work, wages, or 
                employment benefits) any currently employed employee (as 
                of the date of the participation).
                    (B) Prohibition on impairment of contracts.--A 
                specified activity shall not impair an existing contract 
                for services or collective bargaining agreement, and no 
                such activity that would be inconsistent with the terms 
                of a collective bargaining agreement shall be undertaken 
                without the written concurrence of the labor 
                organization and employer concerned.
            (3) Other prohibitions.--A participant in a specified 
        activity shall not be employed in a job if--
                    (A) any other individual is on layoff from the same 
                or any substantially equivalent job;

[[Page 128 STAT. 1587]]

                    (B) the employer has terminated the employment of 
                any regular employee or otherwise reduced the workforce 
                of the employer with the intention of filling the 
                vacancy so created with the participant; or
                    (C) the job is created in a promotional line that 
                will infringe in any way upon the promotional 
                opportunities of currently employed individuals (as of 
                the date of the participation).
            (4) <<NOTE: Applicability.>>  Health and safety.--Health and 
        safety standards established under Federal and State law 
        otherwise applicable to working conditions of employees shall be 
        equally applicable to working conditions of participants engaged 
        in specified activities. To the extent that a State workers' 
        compensation law applies, workers' compensation shall be 
        provided to participants on the same basis as the compensation 
        is provided to other individuals in the State in similar 
        employment.
            (5) Employment conditions.--Individuals in on-the-job 
        training or individuals employed in programs and activities 
        under this title shall be provided benefits and working 
        conditions at the same level and to the same extent as other 
        trainees or employees working a similar length of time and doing 
        the same type of work.
            (6) Opportunity to submit comments.--Interested members of 
        the public, including representatives of businesses and of labor 
        organizations, shall be provided an opportunity to submit 
        comments to the Secretary with respect to programs and 
        activities proposed to be funded under subtitle B.
            (7) No impact on union organizing.--Each recipient of funds 
        under this title shall provide to the Secretary assurances that 
        none of such funds will be used to assist, promote, or deter 
        union organizing.

    (c) Grievance Procedure.--
            (1) In general.--Each State and local area receiving an 
        allotment or allocation under this title shall establish and 
        maintain a procedure for grievances or complaints alleging 
        violations of the requirements of this title from participants 
        and other interested or affected 
        parties. <<NOTE: Hearings. Deadline.>> Such procedure shall 
        include an opportunity for a hearing and be completed within 60 
        days after the filing of the grievance or complaint.
            (2) <<NOTE: Time periods.>>  Investigation.--
                    (A) In general.--The Secretary shall investigate an 
                allegation of a violation described in paragraph (1) 
                if--
                          (i) a decision relating to such violation has 
                      not been reached within 60 days after the date of 
                      the filing of the grievance or complaint and 
                      either party appeals to the Secretary; or
                          (ii) a decision relating to such violation has 
                      been reached within such 60 days and the party to 
                      which such decision is adverse appeals such 
                      decision to the Secretary.
                    (B) <<NOTE: Determination.>>  Additional 
                requirement.--The Secretary shall make a final 
                determination relating to an appeal made under 
                subparagraph (A) no later than 120 days after receiving 
                such appeal.
            (3) Remedies.--Remedies that may be imposed under this 
        section for a violation of any requirement of this title shall 
        be limited--

[[Page 128 STAT. 1588]]

                    (A) to suspension or termination of payments under 
                this title;
                    (B) to prohibition of placement of a participant 
                with an employer that has violated any requirement under 
                this title;
                    (C) where applicable, to reinstatement of an 
                employee, payment of lost wages and benefits, and 
                reestablishment of other relevant terms, conditions, and 
                privileges of employment; and
                    (D) where appropriate, to other equitable relief.
            (4) Rule of construction.--Nothing in paragraph (3) shall be 
        construed to prohibit a grievant or complainant from pursuing a 
        remedy authorized under another Federal, State, or local law for 
        a violation of this title.

    (d) Relocation.--
            (1) Prohibition on use of funds to encourage or induce 
        relocation.--No funds provided under this title shall be used, 
        or proposed for use, to encourage or induce the relocation of a 
        business or part of a business if such relocation would result 
        in a loss of employment for any employee of such business at the 
        original location and such original location is within the 
        United States.
            (2) <<NOTE: Deadline.>>  Prohibition on use of funds after 
        relocation.--No funds provided under this title for an 
        employment or training activity shall be used for customized or 
        skill training, on-the-job training, incumbent worker training, 
        transitional employment, or company-specific assessments of job 
        applicants or employees, for any business or part of a business 
        that has relocated, until the date that is 120 days after the 
        date on which such business commences operations at the new 
        location, if the relocation of such business or part of a 
        business results in a loss of employment for any employee of 
        such business at the original location and such original 
        location is within the United States.
            (3) <<NOTE: Determination.>>  Repayment.--If the Secretary 
        determines that a violation of paragraph (1) or (2) has 
        occurred, the Secretary shall require the State that has 
        violated such paragraph (or that has provided funding to an 
        entity that has violated such paragraph) to repay to the United 
        States an amount equal to the amount expended in violation of 
        such paragraph.

    (e) Limitation on Use of Funds.--No funds available to carry out an 
activity under this title shall be used for employment generating 
activities, investment in revolving loan funds, capitalization of 
businesses, investment in contract bidding resource centers, economic 
development activities, or similar activities, that are not directly 
related to training for eligible individuals under this title. No funds 
received to carry out an activity under subtitle B shall be used for 
foreign travel.
    (f) Testing and Sanctioning for Use of Controlled Substances.--
            (1) In general.--Notwithstanding any other provision of law, 
        a State shall not be prohibited by the Federal Government from--
                    (A) testing participants in programs under subtitle 
                B for the use of controlled substances; and
                    (B) sanctioning such participants who test positive 
                for the use of such controlled substances.

[[Page 128 STAT. 1589]]

            (2) Additional requirements.--
                    (A) Period of sanction.--In sanctioning participants 
                in a program under subtitle B who test positive for the 
                use of controlled substances--
                          (i) with respect to the first occurrence for 
                      which a participant tests positive, a State may 
                      exclude the participant from the program for a 
                      period not to exceed 6 months; and
                          (ii) with respect to the second occurrence and 
                      each subsequent occurrence for which a participant 
                      tests positive, a State may exclude the 
                      participant from the program for a period not to 
                      exceed 2 years.
                    (B) Appeal.--The testing of participants and the 
                imposition of sanctions under this subsection shall be 
                subject to expeditious appeal in accordance with due 
                process procedures established by the State.
                    (C) <<NOTE: Procedures.>>  Privacy.--A State shall 
                establish procedures for testing participants for the 
                use of controlled substances that ensure a maximum 
                degree of privacy for the participants.
            (3) Funding requirement.--In testing and sanctioning of 
        participants for the use of controlled substances in accordance 
        with this subsection, the only Federal funds that a State may 
        use are the amounts made available for the administration of 
        statewide workforce investment activities under section 
        134(a)(3)(B).

    (g) Subgrant Authority.--A recipient of grant funds under this title 
shall have the authority to enter into subgrants in order to carry out 
the grant, subject to such conditions as the Secretary may establish.
SEC. 182. <<NOTE: Grants. 29 USC 3242.>>  PROMPT ALLOCATION OF 
                        FUNDS.

    (a) Allotments Based on Latest Available Data.--All allotments to 
States and grants to outlying areas under this title shall be based on 
the latest available data and estimates satisfactory to the Secretary. 
All data relating to disadvantaged adults and disadvantaged youth shall 
be based on the most recent satisfactory data from the Bureau of the 
Census.
    (b) Publication in Federal Register Relating to Formula Funds.--
Whenever the Secretary allots funds required to be allotted under this 
title, the Secretary shall publish in a timely fashion in the Federal 
Register the amount proposed to be distributed to each recipient of the 
funds.
    (c) <<NOTE: Deadlines.>>  Requirement for Funds Distributed by 
Formula.--All funds required to be allotted under section 127 or 132 
shall be allotted within 45 days after the date of enactment of the Act 
appropriating the funds, except that, if such funds are appropriated in 
advance as authorized by section 189(g), such funds shall be allotted or 
allocated not later than the March 31 preceding the program year for 
which such funds are to be available for obligation.

    (d) <<NOTE: Deadline.>>  Publication in Federal Register Relating to 
Discretionary Funds.--Whenever the Secretary utilizes a formula to allot 
or allocate funds made available for distribution at the Secretary's 
discretion under this title, the Secretary shall, not later than 30 days 
prior to such allotment or allocation, publish for comment in the 
Federal Register the formula, the rationale for the formula, and the 
proposed amounts to be distributed to each

[[Page 128 STAT. 1590]]

State and local area. After consideration of any comments received, the 
Secretary shall publish final allotments and allocations in the Federal 
Register.

    (e) <<NOTE: Deadlines.>>  Availability of Funds.--Funds shall be 
made available under section 128, and funds shall be made available 
under section 133, for a local area not later than 30 days after the 
date the funds are made available to the Governor involved, under 
section 127 or 132 (as the case may be), or 7 days after the date the 
local plan for the area is approved, whichever is later.
SEC. 183. <<NOTE: 29 USC 3243.>>  MONITORING.

    (a) In General.--The Secretary is authorized to monitor all 
recipients of financial assistance under this title to determine whether 
the recipients are complying with the provisions of this title, 
including the regulations issued under this title.
    (b) Investigations.--The Secretary may investigate any matter the 
Secretary determines to be necessary to determine the compliance of the 
recipients with this title, including the regulations issued under this 
title. The investigations authorized by this subsection may include 
examining records (including making certified copies of the records), 
questioning employees, and entering any premises or onto any site in 
which any part of a program or activity of such a recipient is conducted 
or in which any of the records of the recipient are kept.
    (c) <<NOTE: Applicability.>>  Additional Requirement.--For the 
purpose of any investigation or hearing conducted under this title by 
the Secretary, the provisions of section 9 of the Federal Trade 
Commission Act (15 U.S.C. 49) (relating to the attendance of witnesses 
and the production of documents) apply to the Secretary, in the same 
manner and to the same extent as the provisions apply to the Federal 
Trade Commission.
SEC. 184. <<NOTE: 29 USC 3244.>>  FISCAL CONTROLS; SANCTIONS.

    (a) Establishment of Fiscal Controls by States.--
            (1) <<NOTE: Procedures.>>  In general.--Each State shall 
        establish such fiscal control and fund accounting procedures as 
        may be necessary to assure the proper disbursal of, and 
        accounting for, Federal funds allocated to local areas under 
        subtitle B. Such procedures shall ensure that all financial 
        transactions carried out under subtitle B are conducted and 
        records maintained in accordance with generally accepted 
        accounting principles applicable in each State.
            (2) Cost principles.--
                    (A) <<NOTE: Compliance.>>  In general.--Each State 
                (including the Governor of the State), local area 
                (including the chief elected official for the area), and 
                provider receiving funds under this title shall comply 
                with the applicable uniform cost principles included in 
                appropriate circulars or rules of the Office of 
                Management and Budget for the type of entity receiving 
                the funds.
                    (B) Exception.--The funds made available to a State 
                for administration of statewide workforce investment 
                activities in accordance with section 134(a)(3)(B) shall 
                be allocable to the overall administration of workforce 
                investment activities, but need not be specifically 
                allocable to--
                          (i) the administration of adult employment and 
                      training activities;

[[Page 128 STAT. 1591]]

                          (ii) the administration of dislocated worker 
                      employment and training activities; or
                          (iii) the administration of youth workforce 
                      investment activities.
            (3) Uniform administrative requirements.--
                    (A) <<NOTE: Compliance.>>  In general.--Each State 
                (including the Governor of the State), local area 
                (including the chief elected official for the area), and 
                provider receiving funds under this title shall comply 
                with the appropriate uniform administrative requirements 
                for grants and agreements applicable for the type of 
                entity receiving the funds, as promulgated in circulars 
                or rules of the Office of Management and Budget.
                    (B) <<NOTE: Contracts.>>  Additional requirement.--
                Procurement transactions under this title between local 
                boards and units of State or local governments shall be 
                conducted only on a cost-reimbursable basis.
            (4) Monitoring.--Each Governor of a State shall conduct on 
        an annual basis onsite monitoring of each local area within the 
        State to ensure compliance with the uniform administrative 
        requirements referred to in paragraph (3).
            (5) <<NOTE: Determination.>>  Action by governor.--If the 
        Governor determines that a local area is not in compliance with 
        the uniform administrative requirements referred to in paragraph 
        (3), the Governor shall--
                    (A) require corrective action to secure prompt 
                compliance with the requirements; and
                    (B) impose the sanctions provided under subsection 
                (b) in the event of failure to take the required 
                corrective action.
            (6) <<NOTE: Deadline.>>  Certification.--The Governor shall, 
        every 2 years, certify to the Secretary that--
                    (A) the State has implemented the uniform 
                administrative requirements referred to in paragraph 
                (3);
                    (B) the State has monitored local areas to ensure 
                compliance with the uniform administrative requirements 
                as required under paragraph (4); and
                    (C) the State has taken appropriate action to secure 
                compliance with the requirements pursuant to paragraph 
                (5).
            (7) <<NOTE: Determination.>>  Action by the secretary.--If 
        the Secretary determines that the Governor has not fulfilled the 
        requirements of this subsection, the Secretary shall--
                    (A) require corrective action to secure prompt 
                compliance with the requirements of this subsection; and
                    (B) impose the sanctions provided under subsection 
                (e) in the event of failure of the Governor to take the 
                required appropriate action to secure compliance with 
                the requirements.

    (b) Substantial Violation.--
            (1) <<NOTE: Determination.>>  Action by governor.--If, as a 
        result of financial and compliance audits or otherwise, the 
        Governor determines that there is a substantial violation of a 
        specific provision of this title, and corrective action has not 
        been taken, the Governor shall--
                    (A) <<NOTE: Notice.>>  issue a notice of intent to 
                revoke approval of all or part of the local plan 
                affected; or
                    (B) <<NOTE: Reorganization plan.>>  impose a 
                reorganization plan, which may include--

[[Page 128 STAT. 1592]]

                          (i) decertifying the local board involved;
                          (ii) prohibiting the use of eligible 
                      providers;
                          (iii) selecting an alternative entity to 
                      administer the program for the local area 
                      involved;
                          (iv) merging the local area into one or more 
                      other local areas; or
                          (v) making such other changes as the Secretary 
                      or Governor determines to be necessary to secure 
                      compliance with the provision.
            (2) Appeal.--
                    (A) <<NOTE: Effective date.>>  In general.--The 
                actions taken by the Governor pursuant to subparagraphs 
                (A) and (B) of paragraph (1) may be appealed to the 
                Secretary and shall not become effective until--
                          (i) the time for appeal has expired; or
                          (ii) the Secretary has issued a decision.
                    (B) <<NOTE: Deadline.>>  Additional requirement.--
                The Secretary shall make a final decision under 
                subparagraph (A) not later than 45 days after the 
                receipt of the appeal.
            (3) Action by the secretary.--If the Governor fails to take 
        promptly an action required under paragraph (1), the Secretary 
        shall take such action.

    (c) Repayment of Certain Amounts to the United States.--
            (1) In general.--Every recipient of funds under this title 
        shall repay to the United States amounts found not to have been 
        expended in accordance with this title.
            (2) <<NOTE: Determination.>>  Offset of repayment amount.--
        If the Secretary determines that a State has expended funds 
        received under this title in a manner contrary to the 
        requirements of this title, the Secretary may require repayment 
        by offsetting the amount of such expenditures against any other 
        amount to which the State is or may be entitled under this 
        title, except as provided under subsection (d)(1).
            (3) Repayment from deduction by state.--If the Secretary 
        requires a State to repay funds as a result of a determination 
        that a local area of the State has expended funds in a manner 
        contrary to the requirements of this title, the Governor of the 
        State may use an amount deducted under paragraph (4) to repay 
        the funds, except as provided under subsection (e).
            (4) Deduction by state.--The Governor may deduct an amount 
        equal to the misexpenditure described in paragraph (3) from 
        subsequent program year (subsequent to the program year for 
        which the determination was made) allocations to the local area 
        from funds reserved for the administrative costs of the local 
        programs involved, as appropriate.
            (5) Limitations.--A deduction made by a State as described 
        in paragraph (4) shall not be made until such time as the 
        Governor has taken appropriate corrective action to ensure full 
        compliance with this title within such local area with regard to 
        appropriate expenditures of funds under this title.

    (d) Repayment of Amounts.--
            (1) <<NOTE: Determination.>>  In general.--Each recipient of 
        funds under this title shall be liable to repay the amounts 
        described in subsection (c)(1), from funds other than funds 
        received under this title, upon a determination by the Secretary 
        that the misexpenditure of the amounts was due to willful 
        disregard of the requirements

[[Page 128 STAT. 1593]]

        of this title, gross negligence, failure to observe accepted 
        standards of administration, or a pattern of misexpenditure 
        described in subsection (c)(1). <<NOTE: Notice.>> No such 
        determination shall be made under this subsection or subsection 
        (c) until notice and opportunity for a fair hearing have been 
        given to the recipient.
            (2) <<NOTE: Contracts. Determination.>>  Factors in imposing 
        sanctions.--In determining whether to impose any sanction 
        authorized by this section against a recipient of funds under 
        this title for violations of this title (including applicable 
        regulations) by a subgrantee or contractor of such recipient, 
        the Secretary shall first determine whether such recipient has 
        adequately demonstrated that the recipient has--
                    (A) established and adhered to an appropriate 
                system, for entering into and monitoring subgrant 
                agreements and contracts with subgrantees and 
                contractors, that contains acceptable standards for 
                ensuring accountability;
                    (B) entered into a written subgrant agreement or 
                contract with such a subgrantee or contractor that 
                established clear goals and obligations in unambiguous 
                terms;
                    (C) acted with due diligence to monitor the 
                implementation of the subgrant agreement or contract, 
                including carrying out the appropriate monitoring 
                activities (including audits) at reasonable intervals; 
                and
                    (D) taken prompt and appropriate corrective action 
                upon becoming aware of any evidence of a violation of 
                this title, including regulations issued under this 
                title, by such subgrantee or contractor.
            (3) Waiver.--If the Secretary determines that the recipient 
        has demonstrated substantial compliance with the requirements of 
        paragraph (2), the Secretary may waive the imposition of 
        sanctions authorized by this section upon such recipient. The 
        Secretary is authorized to impose any sanction consistent with 
        the provisions of this title and with any applicable Federal or 
        State law directly against any subgrantee or contractor for 
        violation of this title, including regulations issued under this 
        title.

    (e) <<NOTE: Determination.>>  Immediate Termination or Suspension of 
Assistance in Emergency Situations.--
In <<NOTE: Notice. Deadline.>> emergency situations, if the Secretary 
determines it is necessary to protect the integrity of the funds or 
ensure the proper operation of the program or activity involved, the 
Secretary may immediately terminate or suspend financial assistance, in 
whole or in part, to the recipient if the recipient is given prompt 
notice and the opportunity for a subsequent hearing within 30 days after 
such termination or suspension. The Secretary shall not delegate any of 
the functions or authority specified in this subsection, other than to 
an officer whose appointment is required to be made by and with the 
advice and consent of the Senate.

    (f) <<NOTE: Determination. Deadline.>>  Discrimination Against 
Participants.--If the Secretary determines that any recipient under this 
title has discharged or in any other manner discriminated against a 
participant or against any individual in connection with the 
administration of the program involved, or against any individual 
because such individual has filed any complaint or instituted or caused 
to be instituted any proceeding under or related to this title, or has 
testified or is about to testify in any such proceeding or an 
investigation under

[[Page 128 STAT. 1594]]

or related to this title, or otherwise unlawfully denied to any 
individual a benefit to which that individual is entitled under the 
provisions of this title, including regulations issued under this title, 
the Secretary shall, within 30 days, take such action or order such 
corrective measures, as necessary, with respect to the recipient or the 
aggrieved individual, or both.

    (g) Remedies.--The remedies described in this section shall not be 
considered to be the exclusive remedies available for violations 
described in this section.
SEC. 185. <<NOTE: 29 USC 3245.>>  REPORTS; RECORDKEEPING; 
                        INVESTIGATIONS.

    (a) Recipient Recordkeeping and Reports.--
            (1) In general.--Recipients of funds under this title shall 
        keep records that are sufficient to permit the preparation of 
        reports required by this title and to permit the tracing of 
        funds to a level of expenditure adequate to ensure that the 
        funds have not been spent unlawfully.
            (2) Records and reports regarding general performance.--
        Every such recipient shall maintain such records and submit such 
        reports, in such form and containing such information, as the 
        Secretary may require regarding the performance of programs and 
        activities carried out under this title. Such records and 
        reports shall be submitted to the Secretary but shall not be 
        required to be submitted more than once each quarter unless 
        specifically requested by Congress or a committee of Congress, 
        in which case an estimate regarding such information may be 
        provided.
            (3) Maintenance of standardized records.--In order to allow 
        for the preparation of the reports required under subsection 
        (c), such recipients shall maintain standardized records for all 
        individual participants and provide to the Secretary a 
        sufficient number of such records to provide for an adequate 
        analysis of the records.
            (4) Availability to the public.--
                    (A) In general.--Except as provided in subparagraph 
                (B), records maintained by such recipients pursuant to 
                this subsection shall be made available to the public 
                upon request.
                    (B) Exception.--Subparagraph (A) shall not apply 
                to--
                          (i) information, the disclosure of which would 
                      constitute a clearly unwarranted invasion of 
                      personal privacy; and
                          (ii) trade secrets, or commercial or financial 
                      information, that is--
                                    (I) obtained from a person; and
                                    (II) privileged or confidential.
                    (C) Fees to recover costs.--Such recipients may 
                charge fees sufficient to recover costs applicable to 
                the processing of requests for records under 
                subparagraph (A).

    (b) Investigations of Use of Funds.--
            (1) In general.--
                    (A) Secretary.--In order to evaluate compliance with 
                the provisions of this title, the Secretary shall 
                conduct, in several States, in each fiscal year, 
                investigations of the use of funds received by 
                recipients under this title.
                    (B) Comptroller general of the united states.--In 
                order to ensure compliance with the provisions of this

[[Page 128 STAT. 1595]]

                title, the Comptroller General of the United States may 
                conduct investigations of the use of funds received 
                under this title by any recipient.
            (2) Prohibition.--In conducting any investigation under this 
        title, the Secretary or the Comptroller General of the United 
        States may not request the compilation of any information that 
        the recipient is not otherwise required to compile and that is 
        not readily available to such recipient.
            (3) Audits.--
                    (A) <<NOTE: Deadline.>>  In general.--In carrying 
                out any audit under this title (other than any initial 
                audit survey or any audit investigating possible 
                criminal or fraudulent conduct), either directly or 
                through grant or contract, the Secretary, the Inspector 
                General of the Department of Labor, or the Comptroller 
                General of the United States shall furnish to the State, 
                recipient, or other entity to be audited, advance 
                notification of the overall objectives and purposes of 
                the audit, and any extensive recordkeeping or data 
                requirements to be met, not later than 14 days (or as 
                soon as practicable) prior to the commencement of the 
                audit.
                    (B) Notification requirement.--If the scope, 
                objectives, or purposes of the audit change 
                substantially during the course of the audit, the entity 
                being audited shall be notified of the change as soon as 
                practicable.
                    (C) Additional requirement.--The reports on the 
                results of such audits shall cite the law, regulation, 
                policy, or other criteria applicable to any finding 
                contained in the reports.
                    (D) Rule of construction.--Nothing contained in this 
                title shall be construed so as to be inconsistent with 
                the Inspector General Act of 1978 (5 U.S.C. App.) or 
                government auditing standards issued by the Comptroller 
                General of the United States.

    (c) <<NOTE: Contracts.>>  Grantee Information Responsibilities.--
Each State, each local board, and each recipient (other than a 
subrecipient, subgrantee, or contractor of a recipient) receiving funds 
under this title--
            (1) shall make readily accessible such reports concerning 
        its operations and expenditures as shall be prescribed by the 
        Secretary;
            (2) <<NOTE: Guidelines.>>  shall prescribe and maintain 
        comparable management information systems, in accordance with 
        guidelines that shall be prescribed by the Secretary, designed 
        to facilitate the uniform compilation, cross tabulation, and 
        analysis of programmatic, participant, and financial data, on 
        statewide, local area, and other appropriate bases, necessary 
        for reporting, monitoring, and evaluating purposes, including 
        data necessary to comply with section 188;
            (3) shall monitor the performance of providers in complying 
        with the terms of grants, contracts, or other agreements made 
        pursuant to this title; and
            (4) shall, to the extent practicable, submit or make 
        available (including through electronic means) any reports, 
        records, plans, or any other data that are required to be 
        submitted or made available, respectively, under this title.

    (d) Information To Be Included in Reports.--

[[Page 128 STAT. 1596]]

            (1) In general.--The reports required in subsection (c) 
        shall include information regarding programs and activities 
        carried out under this title pertaining to--
                    (A) the relevant demographic characteristics 
                (including race, ethnicity, sex, and age) and other 
                related information regarding participants;
                    (B) the programs and activities in which 
                participants are enrolled, and the length of time that 
                participants are engaged in such programs and 
                activities;
                    (C) outcomes of the programs and activities for 
                participants, including the occupations of participants, 
                and placement for participants in nontraditional 
                employment;
                    (D) specified costs of the programs and activities; 
                and
                    (E) information necessary to prepare reports to 
                comply with section 188.
            (2) Additional requirement.--The Secretary shall ensure that 
        all elements of the information required for the reports 
        described in paragraph (1) are defined and that the information 
        is reported uniformly.

    (e) Quarterly Financial Reports.--
            (1) In general.--Each local board in a State shall submit 
        quarterly financial reports to the Governor with respect to 
        programs and activities carried out under this title. Such 
        reports shall include information identifying all program and 
        activity costs by cost category in accordance with generally 
        accepted accounting principles and by year of the appropriation 
        involved.
            (2) Additional requirement.--Each State shall submit to the 
        Secretary, and the Secretary shall submit to the Committee on 
        Health, Education, Labor, and Pensions of the Senate and the 
        Committee on Education and the Workforce of the House of 
        Representatives, on a quarterly basis, a summary of the reports 
        submitted to the Governor pursuant to paragraph (1).

    (f) Maintenance of Additional Records.--Each State and local board 
shall maintain records with respect to programs and activities carried 
out under this title that identify--
            (1) any income or profits earned, including such income or 
        profits earned by subrecipients; and
            (2) any costs incurred (such as stand-in costs) that are 
        otherwise allowable except for funding limitations.

    (g) Cost Categories.--In requiring entities to maintain records of 
costs by cost category under this title, the Secretary shall require 
only that the costs be categorized as administrative or programmatic 
costs.
SEC. 186. <<NOTE: 29 USC 3246.>>  ADMINISTRATIVE ADJUDICATION.

    (a) In General.--Whenever any applicant for financial assistance 
under this title is dissatisfied because the Secretary has made a 
determination not to award financial assistance in whole or in part to 
such applicant, the applicant may request a hearing before an 
administrative law judge of the Department of Labor. A similar hearing 
may also be requested by any recipient for whom a corrective action has 
been required or a sanction has been imposed by the Secretary under 
section 184.
    (b) <<NOTE: Deadlines.>>  Appeal.--The decision of the 
administrative law judge shall constitute final action by the Secretary 
unless, within 20 days

[[Page 128 STAT. 1597]]

after receipt of the decision of the administrative law judge, a party 
dissatisfied with the decision or any part of the decision has filed 
exceptions with the Secretary specifically identifying the procedure, 
fact, law, or policy to which exception is taken. Any exception not 
specifically urged during the 20-day period shall be deemed to have been 
waived. <<NOTE: Notification.>> After the 20-day period the decision of 
the administrative law judge shall become the final decision of the 
Secretary unless the Secretary, within 30 days after such filing, 
notifies the parties that the case involved has been accepted for 
review.

    (c) Time Limit.--Any case accepted for review by the Secretary under 
subsection (b) shall be decided within 180 days after such acceptance. 
If the case is not decided within the 180-day period, the decision of 
the administrative law judge shall become the final decision of the 
Secretary at the end of the 180-day period.
    (d) <<NOTE: Applicability.>>  Additional Requirement.--The 
provisions of section 187 shall apply to any final action of the 
Secretary under this section.
SEC. 187. <<NOTE: 29 USC 3247.>>  JUDICIAL REVIEW.

    (a) <<NOTE: Deadlines.>>  Review.--
            (1) Petition.--With respect to any final order by the 
        Secretary under section 186 by which the Secretary awards, 
        declines to award, or only conditionally awards, financial 
        assistance under this title, or any final order of the Secretary 
        under section 186 with respect to a corrective action or 
        sanction imposed under section 184, any party to a proceeding 
        that resulted in such final order may obtain review of such 
        final order in the United States Court of Appeals having 
        jurisdiction over the applicant for or recipient of the funds 
        involved, by filing a review petition within 30 days after the 
        date of issuance of such final order.
            (2) <<NOTE: Records.>>  Action on petition.--The clerk of 
        the court shall transmit a copy of the review petition to the 
        Secretary, who shall file the record on which the final order 
        was entered as provided in section 2112 of title 28, United 
        States Code. The filing of a review petition shall not stay the 
        order of the Secretary, unless the court orders a stay. 
        Petitions filed under this subsection shall be heard 
        expeditiously, if possible within 10 days after the date of 
        filing of a reply to the petition.
            (3) Standard and scope of review.--No objection to the order 
        of the Secretary shall be considered by the court unless the 
        objection was specifically urged, in a timely manner, before the 
        Secretary. The review shall be limited to questions of law and 
        the findings of fact of the Secretary shall be conclusive if 
        supported by substantial evidence.

    (b) Judgment.--The court shall have jurisdiction to make and enter a 
decree affirming, modifying, or setting aside the order of the Secretary 
in whole or in part. The judgment of the court regarding the order shall 
be final, subject to certiorari review by the Supreme Court as provided 
in section 1254(1) of title 28, United States Code.
SEC. 188. <<NOTE: 29 USC 3248.>>  NONDISCRIMINATION.

    (a) In General.--
            (1) Federal financial assistance.--For the purpose of 
        applying the prohibitions against discrimination on the basis of 
        age under the Age Discrimination Act of 1975 (42 U.S.C. 6101 et 
        seq.), on the basis of disability under section 504

[[Page 128 STAT. 1598]]

        of the Rehabilitation Act of 1973 (29 U.S.C. 794), on the basis 
        of sex under title IX of the Education Amendments of 1972 (20 
        U.S.C. 1681 et seq.), or on the basis of race, color, or 
        national origin under title VI of the Civil Rights Act of 1964 
        (42 U.S.C. 2000d et seq.), programs and activities funded or 
        otherwise financially assisted in whole or in part under this 
        Act are considered to be programs and activities receiving 
        Federal financial assistance.
            (2) Prohibition of discrimination regarding participation, 
        benefits, and employment.--No individual shall be excluded from 
        participation in, denied the benefits of, subjected to 
        discrimination under, or denied employment in the administration 
        of or in connection with, any such program or activity because 
        of race, color, religion, sex (except as otherwise permitted 
        under title IX of the Education Amendments of 1972), national 
        origin, age, disability, or political affiliation or belief.
            (3) Prohibition on assistance for facilities for sectarian 
        instruction or religious worship.--Participants shall not be 
        employed under this title to carry out the construction, 
        operation, or maintenance of any part of any facility that is 
        used or to be used for sectarian instruction or as a place for 
        religious worship (except with respect to the maintenance of a 
        facility that is not primarily or inherently devoted to 
        sectarian instruction or religious worship, in a case in which 
        the organization operating the facility is part of a program or 
        activity providing services to participants).
            (4) Prohibition on discrimination on basis of participant 
        status.--No person may discriminate against an individual who is 
        a participant in a program or activity that receives funds under 
        this title, with respect to the terms and conditions affecting, 
        or rights provided to, the individual, solely because of the 
        status of the individual as a participant.
            (5) Prohibition on discrimination against certain 
        noncitizens.--Participation in programs and activities or 
        receiving funds under this title shall be available to citizens 
        and nationals of the United States, lawfully admitted permanent 
        resident aliens, refugees, asylees, and parolees, and other 
        immigrants authorized by the Attorney General to work in the 
        United States.

    (b) <<NOTE: Notification. Compliance.>>  Action of Secretary.--
Whenever the Secretary finds that a State or other recipient of funds 
under this title has failed to comply with a provision of law referred 
to in subsection (a)(1), or with paragraph (2), (3), (4), or (5) of 
subsection (a), including an applicable regulation prescribed to carry 
out such provision or paragraph, the Secretary shall notify such State 
or recipient and shall request that the State or recipient 
comply. <<NOTE: Time period.>> If within a reasonable period of time, 
not to exceed 60 days, the State or recipient fails or refuses to 
comply, the Secretary may--
            (1) refer the matter to the Attorney General with a 
        recommendation that an appropriate civil action be instituted; 
        or
            (2) take such other action as may be provided by law.

    (c) Action of Attorney General.--When a matter is referred to the 
Attorney General pursuant to subsection (b)(1), or whenever the Attorney 
General has reason to believe that a State or other recipient of funds 
under this title is engaged in a pattern or practice of discrimination 
in violation of a provision of law referred to

[[Page 128 STAT. 1599]]

in subsection (a)(1) or in violation of paragraph (2), (3), (4), or (5) 
of subsection (a), the Attorney General may bring a civil action in any 
appropriate district court of the United States for such relief as may 
be appropriate, including injunctive relief.
    (d) Job Corps.--For the purposes of this section, Job Corps members 
shall be considered to be the ultimate beneficiaries of Federal 
financial assistance.
    (e) <<NOTE: Deadline. Procedures.>>  Regulations.--The Secretary 
shall issue regulations necessary to implement this section not later 
than 1 year after the date of enactment of the Workforce Innovation and 
Opportunity Act. Such regulations shall adopt standards for determining 
discrimination and procedures for enforcement that are consistent with 
the Acts referred to in subsection (a)(1), as well as procedures to 
ensure that complaints filed under this section and such Acts are 
processed in a manner that avoids duplication of effort.
SEC. 189. <<NOTE: 29 USC 3249.>>  SECRETARIAL ADMINISTRATIVE 
                        AUTHORITIES AND RESPONSIBILITIES.

    (a) <<NOTE: Federal Register, publication. Time period.>>  In 
General.--In accordance with chapter 5 of title 5, United States Code, 
the Secretary may prescribe rules and regulations to carry out this 
title, only to the extent necessary to administer and ensure compliance 
with the requirements of this title. Such rules and regulations may 
include provisions making adjustments authorized by section 6504 of 
title 31, United States Code. All such rules and regulations shall be 
published in the Federal Register at least 30 days prior to their 
effective dates. Copies of each such rule or regulation shall be 
transmitted to the appropriate committees of Congress on the date of 
such publication and shall contain, with respect to each material 
provision of such rule or regulation, a citation to the particular 
substantive section of law that is the basis for the provision.

    (b) Acquisition of Certain Property and Services.--The Secretary is 
authorized, in carrying out this title, to accept, purchase, or lease in 
the name of the Department of Labor, and employ or dispose of in 
furtherance of the purposes of this title, any money or property, real, 
personal, or mixed, tangible or intangible, received by gift, devise, 
bequest, or otherwise, and to accept voluntary and uncompensated 
services notwithstanding the provisions of section 1342 of title 31, 
United States Code.
    (c) Authority To Enter Into Certain Agreements and To Make Certain 
Expenditures.--The Secretary may make such grants, enter into such 
contracts or agreements, establish such procedures, and make such 
payments, in installments and in advance or by way of reimbursement, or 
otherwise allocate or expend such funds under this title, as may be 
necessary to carry out this title, including making expenditures for 
construction, repairs, and capital improvements, and including making 
necessary adjustments in payments on account of over-payments or 
underpayments.
    (d) Annual Report.--The Secretary shall prepare and submit to the 
Committee on Education and the Workforce of the House of Representatives 
and the Committee on Health, Education, Labor, and Pensions of the 
Senate an annual report regarding the programs and activities funded 
under this title. The Secretary shall include in such report--

[[Page 128 STAT. 1600]]

            (1) a summary of the achievements, failures, and challenges 
        of the programs and activities in meeting the objectives of this 
        title;
            (2) a summary of major findings from research, evaluations, 
        pilot projects, and experiments conducted under this title in 
        the fiscal year prior to the submission of the report;
            (3) recommendations for modifications in the programs and 
        activities based on analysis of such findings; and
            (4) such other recommendations for legislative or 
        administrative action as the Secretary determines to be 
        appropriate.

    (e) <<NOTE: Applicability.>>  Utilization of Services and 
Facilities.--The Secretary is authorized, in carrying out this title, 
under the same procedures as are applicable under subsection (c) or to 
the extent permitted by law other than this title, to accept and use the 
services and facilities of departments, agencies, and establishments of 
the United States. The Secretary is also authorized, in carrying out 
this title, to accept and use the services and facilities of the 
agencies of any State or political subdivision of a State, with the 
consent of the State or political subdivision.

    (f) Obligational Authority.--Notwithstanding any other provision of 
this title, the Secretary shall have no authority to enter into 
contracts, grant agreements, or other financial assistance agreements 
under this title, except to such extent and in such amounts as are 
provided in advance in appropriations Acts.
    (g) Program Year.--
            (1) <<NOTE: Effective dates.>>  In general.--
                    (A) Program year.--Except as provided in 
                subparagraph (B), appropriations for any fiscal year for 
                programs and activities funded under this title shall be 
                available for obligation only on the basis of a program 
                year. The program year shall begin on July 1 in the 
                fiscal year for which the appropriation is made.
                    (B) Youth workforce investment activities.--The 
                Secretary may make available for obligation, beginning 
                April 1 of any fiscal year, funds appropriated for such 
                fiscal year to carry out youth workforce investment 
                activities under subtitle B and activities under section 
                171.
            (2) Availability.--
                    (A) In general.--Funds obligated for any program 
                year for a program or activity funded under subtitle B 
                may be expended by each State receiving such funds 
                during that program year and the 2 succeeding program 
                years. Funds received by local areas from States under 
                subtitle B during a program year may be expended during 
                that program year and the succeeding program year.
                    (B) Certain national activities.--
                          (i) In general.--Funds obligated for any 
                      program year for any program or activity carried 
                      out under section 169 shall remain available until 
                      expended.
                          (ii) Incremental funding basis.--A contract or 
                      arrangement entered into under the authority of 
                      subsection (a) or (b) of section 169 (relating to 
                      evaluations, research projects, studies and 
                      reports, and multistate projects), including a 
                      long-term, nonseverable services contract, may be 
                      funded on an incremental basis with annual 
                      appropriations or other available funds.

[[Page 128 STAT. 1601]]

                    (C) Special rule.--No amount of the funds obligated 
                for a program year for a program or activity funded 
                under this title shall be deobligated on account of a 
                rate of expenditure that is consistent with a State 
                plan, an operating plan described in section 151, or a 
                plan, grant agreement, contract, application, or other 
                agreement described in subtitle D, as appropriate.
                    (D) Funds for pay-for-performance contract 
                strategies.--Funds used to carry out pay-for-performance 
                contract strategies by local areas shall remain 
                available until expended.

    (h) Enforcement of Military Selective Service Act.--The Secretary 
shall ensure that each individual participating in any program or 
activity established under this title, or receiving any assistance or 
benefit under this title, has not violated section 3 of the Military 
Selective Service Act (50 U.S.C. App. 453) by not presenting and 
submitting to registration as required pursuant to such section. The 
Director of the Selective Service System shall cooperate with the 
Secretary to enable the Secretary to carry out this subsection.
    (i) Waivers.--
            (1) <<NOTE: Deadline.>>  Special rule regarding designated 
        areas.--A State that has enacted, not later than December 31, 
        1997, a State law providing for the designation of service 
        delivery areas for the delivery of workforce investment 
        activities, may use such areas as local areas under this title, 
        notwithstanding section 106.
            (2) <<NOTE: Deadline.>>  Special rule regarding sanctions.--
        A State that has enacted, not later than December 31, 1997, a 
        State law providing for the sanctioning of such service delivery 
        areas for failure to meet performance accountability measures 
        for workforce investment activities, may use the State law to 
        sanction local areas for failure to meet State performance 
        accountability measures under this title.
            (3) General waivers of statutory or regulatory 
        requirements.--
                    (A) <<NOTE: Consultation.>>  General authority.--
                Notwithstanding any other provision of law, the 
                Secretary may waive for a State, or a local area in a 
                State, pursuant to a request submitted by the Governor 
                of the State (in consultation with appropriate local 
                elected officials) with a plan that meets the 
                requirements of subparagraph (B)--
                          (i) any of the statutory or regulatory 
                      requirements of subtitle A, subtitle B, or this 
                      subtitle (except for requirements relating to wage 
                      and labor standards, including nondisplacement 
                      protections, worker rights, participation and 
                      protection of workers and participants, grievance 
                      procedures and judicial review, nondiscrimination, 
                      allocation of funds to local areas, eligibility of 
                      providers or participants, the establishment and 
                      functions of local areas and local boards, the 
                      funding of infrastructure costs for one-stop 
                      centers, and procedures for review and approval of 
                      plans, and other requirements relating to the 
                      basic purposes of this title); and
                          (ii) any of the statutory or regulatory 
                      requirements of sections 8 through 10 of the 
                      Wagner-Peyser Act

[[Page 128 STAT. 1602]]

                      (29 U.S.C. 49g through 49i) (excluding 
                      requirements relating to the provision of services 
                      to unemployment insurance claimants and veterans, 
                      and requirements relating to universal access to 
                      basic labor exchange services without cost to 
                      jobseekers).
                    (B) <<NOTE: Plan.>>  Requests.--A Governor 
                requesting a waiver under subparagraph (A) shall submit 
                a plan to the Secretary to improve the statewide 
                workforce development system that--
                          (i) identifies the statutory or regulatory 
                      requirements that are requested to be waived and 
                      the goals that the State or local area in the 
                      State, as appropriate, intends to achieve as a 
                      result of the waiver;
                          (ii) describes the actions that the State or 
                      local area, as appropriate, has undertaken to 
                      remove State or local statutory or regulatory 
                      barriers;
                          (iii) describes the goals of the waiver and 
                      the expected programmatic outcomes if the request 
                      is granted;
                          (iv) describes the individuals impacted by the 
                      waiver; and
                          (v) describes the process used to monitor the 
                      progress in implementing such a waiver, and the 
                      process by which notice and, in the case of a 
                      waiver for a local area, an opportunity to comment 
                      on such request has been provided to the local 
                      board for the local area for which the waiver is 
                      requested.
                    (C) <<NOTE: Deadline.>>  Conditions.--Not later than 
                90 days after the date of the original submission of a 
                request for a waiver under subparagraph (A), the 
                Secretary shall provide a waiver under this subsection 
                if and only to the extent that--
                          (i) <<NOTE: Determination.>>  the Secretary 
                      determines that the requirements requested to be 
                      waived impede the ability of the State or local 
                      area, as appropriate, to implement the plan 
                      described in subparagraph (B); and
                          (ii) <<NOTE: Memorandum.>>  the State has 
                      executed a memorandum of understanding with the 
                      Secretary requiring such State to meet, or ensure 
                      that the local area for which the waiver is 
                      requested meets, agreed-upon outcomes and to 
                      implement other appropriate measures to ensure 
                      accountability.
                    (D) Expedited determination regarding provision of 
                waivers.--If the Secretary has approved a waiver of 
                statutory or regulatory requirements for a State or 
                local area pursuant to this subsection, the Secretary 
                shall expedite the determination regarding the provision 
                of that waiver, for another State or local area if such 
                waiver is in accordance with the approved State or local 
                plan, as appropriate.
SEC. 190. <<NOTE: 29 USC 3250.>>  WORKFORCE FLEXIBILITY PLANS.

    (a) <<NOTE: Waiver authority.>>  Plans.--A State may submit to the 
Secretary, and the Secretary may approve, a workforce flexibility plan 
under which the State is authorized to waive, in accordance with the 
plan--

[[Page 128 STAT. 1603]]

            (1) any of the statutory or regulatory requirements 
        applicable under this title to local areas, pursuant to 
        applications for such waivers from the local areas, except for 
        requirements relating to the basic purposes of this title, wage 
        and labor standards, grievance procedures and judicial review, 
        nondiscrimination, eligibility of participants, allocation of 
        funds to local areas, establishment and functions of local areas 
        and local boards, procedures for review and approval of local 
        plans, and worker rights, participation, and protection;
            (2) any of the statutory or regulatory requirements 
        applicable under sections 8 through 10 of the Wagner-Peyser Act 
        (29 U.S.C. 49g through 49i) to the State (excluding requirements 
        relating to the provision of services to unemployment insurance 
        claimants and veterans, and requirements relating to universal 
        access to basic labor exchange services without cost to 
        jobseekers); and
            (3) any of the statutory or regulatory requirements 
        applicable under the Older Americans Act of 1965 (42 U.S.C. 3001 
        et seq.) to State agencies on aging with respect to activities 
        carried out using funds allotted under section 506(b) of such 
        Act (42 U.S.C. 3056d(b)), except for requirements relating to 
        the basic purposes of such Act, wage and labor standards, 
        eligibility of participants in the activities, and standards for 
        grant agreements.

    (b) Content of Plans.--A workforce flexibility plan implemented by a 
State under subsection (a) shall include descriptions of--
            (1)(A) the process by which local areas in the State may 
        submit and obtain approval by the State of applications for 
        waivers of requirements applicable under this title; and
            (B) the requirements described in subparagraph (A) that are 
        likely to be waived by the State under the plan;
            (2) the requirements applicable under sections 8 through 10 
        of the Wagner-Peyser Act that are proposed to be waived, if any;
            (3) the requirements applicable under the Older Americans 
        Act of 1965 that are proposed to be waived, if any;
            (4) the outcomes to be achieved by the waivers described in 
        paragraphs (1) through (3); and
            (5) other measures to be taken to ensure appropriate 
        accountability for Federal funds in connection with the waivers.

    (c) Periods.--The Secretary may approve a workforce flexibility plan 
for a period of not more than 5 years.
    (d) <<NOTE: Notice. Public information.>>  Opportunity for Public 
Comments.--Prior to submitting a workforce flexibility plan to the 
Secretary for approval, the State shall provide to all interested 
parties and to the general public adequate notice of and a reasonable 
opportunity for comment on the waiver requests proposed to be 
implemented pursuant to such plan.
SEC. 191. <<NOTE: 29 USC 3251.>>  STATE LEGISLATIVE AUTHORITY.

    (a) Authority of State Legislature.--Nothing in this title shall be 
interpreted to preclude the enactment of State legislation providing for 
the implementation, consistent with the provisions of this title, of the 
activities assisted under this title. Any funds received by a State 
under this title shall be subject to appropriation

[[Page 128 STAT. 1604]]

by the State legislature, consistent with the terms and conditions 
required under this title.
    (b) Interstate Compacts and Cooperative Agreements.--In the event 
that compliance with provisions of this title would be enhanced by 
compacts and cooperative agreements between States, the consent of 
Congress is given to States to enter into such compacts and agreements 
to facilitate such compliance, subject to the approval of the Secretary.
SEC. 192. <<NOTE: 29 USC 3252.>>  TRANSFER OF FEDERAL EQUITY IN 
                        STATE EMPLOYMENT SECURITY AGENCY REAL 
                        PROPERTY TO THE STATES.

    (a) Transfer of Federal Equity.--Notwithstanding any other provision 
of law, any Federal equity acquired in real property through grants to 
States awarded under title III of the Social Security Act (42 U.S.C. 501 
et seq.) or under the Wagner-Peyser Act (29 U.S.C. 49 et seq.) is 
transferred to the States that used the grants for the acquisition of 
such equity. The portion of any real property that is attributable to 
the Federal equity transferred under this section shall be used to carry 
out activities authorized under this Act, title III of the Social 
Security Act, or the Wagner-Peyser Act. Any disposition of such real 
property shall be carried out in accordance with the procedures 
prescribed by the Secretary and the portion of the proceeds from the 
disposition of such real property that is attributable to the Federal 
equity transferred under this section shall be used to carry out 
activities authorized under this Act, title III of the Social Security 
Act, or the Wagner-Peyser Act.
    (b) Limitation on Use.--A State shall not use funds awarded under 
this Act, title III of the Social Security Act, or the Wagner-Peyser Act 
to amortize the costs of real property that is purchased by any State on 
or after the date of enactment of the Revised Continuing Appropriations 
Resolution, 2007.
SEC. 193. <<NOTE: 29 USC 3253.>>  CONTINUATION OF STATE ACTIVITIES 
                        AND POLICIES.

    (a) In General.--Notwithstanding any other provision of this title, 
the Secretary may not deny approval of a State plan for a covered State, 
or an application of a covered State for financial assistance, under 
this title, or find a covered State (including a State board or 
Governor), or a local area (including a local board or chief elected 
official) in a covered State, in violation of a provision of this title, 
on the basis that--
            (1)(A) the State proposes to allocate or disburse, 
        allocates, or disburses, within the State, funds made available 
        to the State under section 127 or 132 in accordance with the 
        allocation formula for the type of activities involved, or in 
        accordance with a disbursal procedure or process, used by the 
        State under prior consistent State laws; or
            (B) a local board in the State proposes to disburse, or 
        disburses, within the local area, funds made available to the 
        State under section 127 or 132 in accordance with a disbursal 
        procedure or process used by a private industry council under 
        prior consistent State law;
            (2) the State proposes to carry out or carries out a State 
        procedure through which local areas use, as fiscal agents for 
        funds made available to the State under section 127 or 132 and 
        allocated within the State, fiscal agents selected in accordance 
        with a process established under prior consistent State laws;

[[Page 128 STAT. 1605]]

            (3) the State proposes to carry out or carries out a State 
        procedure through which the local boards in the State (or the 
        local boards, the chief elected officials in the State, and the 
        Governor) designate or select the one-stop partners and one-stop 
        operators of the statewide system in the State under prior 
        consistent State laws, in lieu of making the designation or 
        certification described in section 121 (regardless of the date 
        the one-stop delivery systems involved have been established);
            (4) the State proposes to carry out or carries out a State 
        procedure through which the persons responsible for selecting 
        eligible providers for purposes of subtitle B are permitted to 
        determine that a provider shall not be selected to provide both 
        intake services under section 134(c)(2) and training services 
        under section 134(c)(3), under prior consistent State laws;
            (5) the State proposes to designate or designates a State 
        board, or proposes to assign or assigns functions and roles of 
        the State board (including determining the time periods for 
        development and submission of a State plan required under 
        section 102 or 103), for purposes of subtitle A in accordance 
        with prior consistent State laws; or
            (6) a local board in the State proposes to use or carry out, 
        uses, or carries out a local plan (including assigning functions 
        and roles of the local board) for purposes of subtitle A in 
        accordance with the authorities and requirements applicable to 
        local plans and private industry councils under prior consistent 
        State laws.

    (b) Definition.--In this section:
            (1) Covered state.--The term ``covered State'' means a State 
        that enacted State laws described in paragraph (2).
            (2) Prior consistent state laws.--The term ``prior 
        consistent State laws'' means State laws, not inconsistent with 
        the Job Training Partnership Act or any other applicable Federal 
        law, that took effect on September 1, 1993, September 1, 1995, 
        and September 1, 1997.
SEC. 194. <<NOTE: 29 USC 3254.>>  GENERAL PROGRAM REQUIREMENTS.

    Except as otherwise provided in this title, the following conditions 
apply to all programs under this title:
            (1) Each program under this title shall provide employment 
        and training opportunities to those who can benefit from, and 
        who are most in need of, such opportunities. In addition, the 
        recipients of Federal funding for programs under this title 
        shall make efforts to develop programs that contribute to 
        occupational development, upward mobility, development of new 
        careers, and opportunities for nontraditional employment.
            (2) Funds provided under this title shall only be used for 
        activities that are in addition to activities that would 
        otherwise be available in the local area in the absence of such 
        funds.
            (3)(A) Any local area may enter into an agreement with 
        another local area (including a local area that is a city or 
        county within the same labor market) to pay or share the cost of 
        educating, training, or placing individuals participating in 
        programs assisted under this title, including the provision of 
        supportive services.

[[Page 128 STAT. 1606]]

            (B) Such agreement shall be approved by each local board for 
        a local area entering into the agreement and shall be described 
        in the local plan under section 108.
            (4) On-the-job training contracts under this title, shall 
        not be entered into with employers who have received payments 
        under previous contracts under this Act or the Workforce 
        Investment Act of 1998 and have exhibited a pattern of failing 
        to provide on-the-job training participants with continued long-
        term employment as regular employees with wages and employment 
        benefits (including health benefits) and working conditions at 
        the same level and to the same extent as other employees working 
        a similar length of time and doing the same type of work.
            (5) No person or organization may charge an individual a fee 
        for the placement or referral of the individual in or to a 
        workforce investment activity under this title.
            (6) The Secretary shall not provide financial assistance for 
        any program under this title that involves political activities.
            (7)(A) Income under any program administered by a public or 
        private nonprofit entity may be retained by such entity only if 
        such income is used to continue to carry out the program.
            (B) Income subject to the requirements of subparagraph (A) 
        shall include--
                    (i) receipts from goods or services (including 
                conferences) provided as a result of activities funded 
                under this title;
                    (ii) funds provided to a service provider under this 
                title that are in excess of the costs associated with 
                the services provided; and
                    (iii) interest income earned on funds received under 
                this title.
            (C) <<NOTE: Records.>>  For purposes of this paragraph, each 
        entity receiving financial assistance under this title shall 
        maintain records sufficient to determine the amount of such 
        income received and the purposes for which such income is 
        expended.
            (8)(A) <<NOTE: Notification.>>  The Secretary shall notify 
        the Governor and the appropriate local board and chief elected 
        official of, and consult with the Governor and such board and 
        official concerning, any activity to be funded by the Secretary 
        under this title within the corresponding State or local area.
            (B) The Governor shall notify the appropriate local board 
        and chief elected official of, and consult with such board and 
        official concerning, any activity to be funded by the Governor 
        under this title within the corresponding local area.
            (9)(A) All education programs for youth supported with funds 
        provided under chapter 2 of subtitle B shall be consistent with 
        applicable State and local educational standards.
            (B) Standards and procedures with respect to awarding 
        academic credit and certifying educational attainment in 
        programs conducted under such chapter shall be consistent with 
        the requirements of applicable State and local law, including 
        regulation.
            (10) No funds available under this title may be used for 
        public service employment except as specifically authorized 
        under this title.

[[Page 128 STAT. 1607]]

            (11) The Federal requirements governing the title, use, and 
        disposition of real property, equipment, and supplies purchased 
        with funds provided under this title shall be the corresponding 
        Federal requirements generally applicable to such items 
        purchased through Federal grants to States and local 
        governments.
            (12) Nothing in this title shall be construed to provide an 
        individual with an entitlement to a service under this title.
            (13) Services, facilities, or equipment funded under this 
        title may be used, as appropriate, on a fee-for-service basis, 
        by employers in a local area in order to provide employment and 
        training activities to incumbent workers--
                    (A) when such services, facilities, or equipment are 
                not in use for the provision of services for eligible 
                participants under this title;
                    (B) if such use for incumbent workers would not have 
                an adverse effect on the provision of services to 
                eligible participants under this title; and
                    (C) if the income derived from such fees is used to 
                carry out the programs authorized under this title.
            (14) Funds provided under this title shall not be used to 
        establish or operate a stand-alone fee-for-service enterprise in 
        a situation in which a private sector employment agency (as 
        defined in section 701 of the Civil Rights Act of 1964 (42 
        U.S.C. 2000e)) is providing full access to similar or related 
        services in such a manner as to fully meet the identified need. 
        For purposes of this paragraph, such an enterprise does not 
        include a one-stop delivery system described in section 121(e).
            (15)(A) None of the funds available under this title shall 
        be used by a recipient or subrecipient of such funds to pay the 
        salary and bonuses of an individual, either as direct costs or 
        indirect costs, at a rate in excess of the annual rate of basic 
        pay prescribed for level II of the Executive Schedule under 
        section 5313 of title 5, United States Code.
            (B) The limitation described in subparagraph (A) shall not 
        apply to vendors providing goods and services as defined in 
        Office of Management and Budget Circular A-133. In a case in 
        which a State is a recipient of such funds, the State may 
        establish a lower limit than is provided in subparagraph (A) for 
        salaries and bonuses of those receiving salaries and bonuses 
        from a subrecipient of such funds, taking into account factors 
        including the relative cost of living in the State, the 
        compensation levels for comparable State or local government 
        employees, and the size of the organizations that administer the 
        Federal programs involved.
SEC. 195. <<NOTE: 29 USC 3255.>>  RESTRICTIONS ON LOBBYING 
                        ACTIVITIES.

    (a) Publicity Restrictions.--
            (1) In general.--No funds provided under this Act shall be 
        used for--
                    (A) publicity or propaganda purposes; or
                    (B) the preparation, distribution, or use of any 
                kit, pamphlet, booklet, publication, electronic 
                communication, radio, television, or video presentation 
                designed to support or defeat--

[[Page 128 STAT. 1608]]

                          (i) the enactment of legislation before 
                      Congress or any State or local legislature or 
                      legislative body; or
                          (ii) any proposed or pending regulation, 
                      administrative action, or order issued by the 
                      executive branch of any State or local government.
            (2) Exception.--Paragraph (1) shall not apply to--
                    (A) normal and recognized executive-legislative 
                relationships;
                    (B) the preparation, distribution, or use of the 
                materials described in paragraph (1)(B) in presentation 
                to Congress or any State or local legislature or 
                legislative body; or
                    (C) such preparation, distribution, or use of such 
                materials in presentation to the executive branch of any 
                State or local government.

    (b) Salary Restrictions.--
            (1) In general.--No funds provided under this Act shall be 
        used to pay the salary or expenses of any grant or contract 
        recipient, or agent acting for such recipient, related to any 
        activity designed to influence the enactment or issuance of 
        legislation, appropriations, regulations, administrative action, 
        or an Executive order proposed or pending before Congress or any 
        State government, or a State or local legislature or legislative 
        body.
            (2) Exception.--Paragraph (1) shall not apply to--
                    (A) normal and recognized executive-legislative 
                relationships; or
                    (B) participation by an agency or officer of a 
                State, local, or tribal government in policymaking and 
                administrative processes within the executive branch of 
                that government.

 TITLE II--ADULT EDUCATION <<NOTE: Adult Education and Family Literacy 
Act.>>  AND LITERACY
SEC. 201. <<NOTE: 29 USC 3101 note.>>  SHORT TITLE.

    This title may be cited as the ``Adult Education and Family Literacy 
Act''.
SEC. 202. <<NOTE: 29 USC 3271.>>  PURPOSE.

    It is the purpose of this title to create a partnership among the 
Federal Government, States, and localities to provide, on a voluntary 
basis, adult education and literacy activities, in order to--
            (1) assist adults to become literate and obtain the 
        knowledge and skills necessary for employment and economic self-
        sufficiency;
            (2) assist adults who are parents or family members to 
        obtain the education and skills that--
                    (A) are necessary to becoming full partners in the 
                educational development of their children; and
                    (B) lead to sustainable improvements in the economic 
                opportunities for their family;

[[Page 128 STAT. 1609]]

            (3) assist adults in attaining a secondary school diploma 
        and in the transition to postsecondary education and training, 
        including through career pathways; and
            (4) assist immigrants and other individuals who are English 
        language learners in--
                    (A) improving their--
                          (i) reading, writing, speaking, and 
                      comprehension skills in English; and
                          (ii) mathematics skills; and
                    (B) acquiring an understanding of the American 
                system of Government, individual freedom, and the 
                responsibilities of citizenship.
SEC. 203. <<NOTE: 29 USC 3272.>>  DEFINITIONS.

    In this title:
            (1) Adult education.--The term ``adult education'' means 
        academic instruction and education services below the 
        postsecondary level that increase an individual's ability to--
                    (A) read, write, and speak in English and perform 
                mathematics or other activities necessary for the 
                attainment of a secondary school diploma or its 
                recognized equivalent;
                    (B) transition to postsecondary education and 
                training; and
                    (C) obtain employment.
            (2) Adult education and literacy activities.--The term 
        ``adult education and literacy activities'' means programs, 
        activities, and services that include adult education, literacy, 
        workplace adult education and literacy activities, family 
        literacy activities, English language acquisition activities, 
        integrated English literacy and civics education, workforce 
        preparation activities, or integrated education and training.
            (3) Eligible agency.--The term ``eligible agency'' means the 
        sole entity or agency in a State or an outlying area responsible 
        for administering or supervising policy for adult education and 
        literacy activities in the State or outlying area, respectively, 
        consistent with the law of the State or outlying area, 
        respectively.
            (4) Eligible individual.--The term ``eligible individual'' 
        means an individual--
                    (A) who has attained 16 years of age;
                    (B) who is not enrolled or required to be enrolled 
                in secondary school under State law; and
                    (C) who--
                          (i) is basic skills deficient;
                          (ii) does not have a secondary school diploma 
                      or its recognized equivalent, and has not achieved 
                      an equivalent level of education; or
                          (iii) is an English language learner.
            (5) Eligible provider.--The term ``eligible provider'' means 
        an organization that has demonstrated effectiveness in providing 
        adult education and literacy activities that may include--
                    (A) a local educational agency;
                    (B) a community-based organization or faith-based 
                organization;
                    (C) a volunteer literacy organization;

[[Page 128 STAT. 1610]]

                    (D) an institution of higher education;
                    (E) a public or private nonprofit agency;
                    (F) a library;
                    (G) a public housing authority;
                    (H) a nonprofit institution that is not described in 
                any of subparagraphs (A) through (G) and has the ability 
                to provide adult education and literacy activities to 
                eligible individuals;
                    (I) a consortium or coalition of the agencies, 
                organizations, institutions, libraries, or authorities 
                described in any of subparagraphs (A) through (H); and
                    (J) a partnership between an employer and an entity 
                described in any of subparagraphs (A) through (I).
            (6) English language acquisition program.--The term 
        ``English language acquisition program'' means a program of 
        instruction--
                    (A) designed to help eligible individuals who are 
                English language learners achieve competence in reading, 
                writing, speaking, and comprehension of the English 
                language; and
                    (B) that leads to--
                          (i)(I) attainment of a secondary school 
                      diploma or its recognized equivalent; and
                          (II) transition to postsecondary education and 
                      training; or
                          (ii) employment.
            (7) English language learner.--The term ``English language 
        learner'' when used with respect to an eligible individual, 
        means an eligible individual who has limited ability in reading, 
        writing, speaking, or comprehending the English language, and--
                    (A) whose native language is a language other than 
                English; or
                    (B) who lives in a family or community environment 
                where a language other than English is the dominant 
                language.
            (8) Essential components of reading instruction.--The term 
        ``essential components of reading instruction'' has the meaning 
        given the term in section 1208 of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 6368).
            (9) Family literacy activities.--The term ``family literacy 
        activities'' means activities that are of sufficient intensity 
        and quality, to make sustainable improvements in the economic 
        prospects for a family and that better enable parents or family 
        members to support their children's learning needs, and that 
        integrate all of the following activities:
                    (A) Parent or family adult education and literacy 
                activities that lead to readiness for postsecondary 
                education or training, career advancement, and economic 
                self-sufficiency.
                    (B) Interactive literacy activities between parents 
                or family members and their children.
                    (C) Training for parents or family members regarding 
                how to be the primary teacher for their children and 
                full partners in the education of their children.
                    (D) An age-appropriate education to prepare children 
                for success in school and life experiences.

[[Page 128 STAT. 1611]]

            (10) 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).
            (11) Integrated education and training.--The term 
        ``integrated education and training'' means a service approach 
        that provides adult education and literacy activities 
        concurrently and contextually with workforce preparation 
        activities and workforce training for a specific occupation or 
        occupational cluster for the purpose of educational and career 
        advancement.
            (12) Integrated english literacy and civics education.--The 
        term ``integrated English literacy and civics education'' means 
        education services provided to English language learners who are 
        adults, including professionals with degrees and credentials in 
        their native countries, that enables such adults to achieve 
        competency in the English language and acquire the basic and 
        more advanced skills needed to function effectively as parents, 
        workers, and citizens in the United States. Such services shall 
        include instruction in literacy and English language acquisition 
        and instruction on the rights and responsibilities of 
        citizenship and civic participation, and may include workforce 
        training.
            (13) Literacy.--The term ``literacy'' means an individual's 
        ability to read, write, and speak in English, compute, and solve 
        problems, at levels of proficiency necessary to function on the 
        job, in the family of the individual, and in society.
            (14) Postsecondary educational institution.--The term 
        ``postsecondary educational institution'' means--
                    (A) an institution of higher education that provides 
                not less than a 2-year program of instruction that is 
                acceptable for credit toward a bachelor's degree;
                    (B) a tribally controlled college or university; or
                    (C) a nonprofit educational institution offering 
                certificate or apprenticeship programs at the 
                postsecondary level.
            (15) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.
            (16) Workplace adult education and literacy activities.--The 
        term ``workplace adult education and literacy activities'' means 
        adult education and literacy activities offered by an eligible 
        provider in collaboration with an employer or employee 
        organization at a workplace or an off-site location that is 
        designed to improve the productivity of the workforce.
            (17) Workforce preparation activities.--The term ``workforce 
        preparation activities'' means activities, programs, or services 
        designed to help an individual acquire a combination of basic 
        academic skills, critical thinking skills, digital literacy 
        skills, and self-management skills, including competencies in 
        utilizing resources, using information, working with others, 
        understanding systems, and obtaining skills necessary for 
        successful transition into and completion of postsecondary 
        education or training, or employment.
SEC. 204. <<NOTE: 29 USC 3273.>>  HOME SCHOOLS.

    Nothing in this title shall be construed to affect home schools, 
whether a home school is treated as a home school or a private school 
under State law, or to compel a parent or family member

[[Page 128 STAT. 1612]]

engaged in home schooling to participate in adult education and literacy 
activities.
SEC. 205. <<NOTE: 29 USC 3274.>>  RULE OF CONSTRUCTION REGARDING 
                        POSTSECONDARY TRANSITION AND CONCURRENT 
                        ENROLLMENT ACTIVITIES.

    Nothing in this title shall be construed to prohibit or discourage 
the use of funds provided under this title for adult education and 
literacy activities that help eligible individuals transition to 
postsecondary education and training or employment, or for concurrent 
enrollment activities.
SEC. 206. <<NOTE: 29 USC 3275.>>  AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this title 
$577,667,000 for fiscal year 2015, $622,286,000 for fiscal year 2016, 
$635,198,000 for fiscal year 2017, $649,287,000 for fiscal year 2018, 
$664,552,000 for fiscal year 2019, and $678,640,000 for fiscal year 
2020.

                     Subtitle A--Federal Provisions

SEC. 211. <<NOTE: 29 USC 3291.>>  RESERVATION OF FUNDS; GRANTS TO 
                        ELIGIBLE AGENCIES; ALLOTMENTS.

    (a) Reservation of Funds.--From the sum appropriated under section 
206 for a fiscal year, the Secretary--
            (1) shall reserve 2 percent to carry out section 242, except 
        that the amount so reserved shall not exceed $15,000,000; and
            (2) shall reserve 12 percent of the amount that remains 
        after reserving funds under paragraph (1) to carry out section 
        243.

    (b) Grants to Eligible Agencies.--
            (1) In general.--From the sum appropriated under section 206 
        and not reserved under subsection (a) for a fiscal year, the 
        Secretary shall award a grant to each eligible agency having a 
        unified State plan approved under section 102 or a combined 
        State plan approved under section 103 in an amount equal to the 
        sum of the initial allotment under subsection (c)(1) and the 
        additional allotment under subsection (c)(2) for the eligible 
        agency for the fiscal year, subject to subsections (f) and (g), 
        to enable the eligible agency to carry out the activities 
        assisted under this title.
            (2) Purpose of grants.--The Secretary may award a grant 
        under paragraph (1) only if the eligible entity involved agrees 
        to expend the grant for adult education and literacy activities 
        in accordance with the provisions of this title.

    (c) Allotments.--
            (1) Initial allotments.--From the sum appropriated under 
        section 206 and not reserved under subsection (a) for a fiscal 
        year, the Secretary shall allot to each eligible agency having a 
        unified State plan approved under section 102 or a combined 
        State plan approved under section 103--
                    (A) $100,000, in the case of an eligible agency 
                serving an outlying area; and
                    (B) $250,000, in the case of any other eligible 
                agency.
            (2) Additional allotments.--From the sum appropriated under 
        section 206, not reserved under subsection (a), and not

[[Page 128 STAT. 1613]]

        allotted under paragraph (1), for a fiscal year, the Secretary 
        shall allot to each eligible agency that receives an initial 
        allotment under paragraph (1) an additional amount that bears 
        the same relationship to such sum as the number of qualifying 
        adults in the State or outlying area served by the eligible 
        agency bears to the number of such adults in all States and 
        outlying areas.

    (d) <<NOTE: Definition.>>  Qualifying Adult.--For the purpose of 
subsection (c)(2), the term ``qualifying adult'' means an adult who--
            (1) is at least 16 years of age;
            (2) is beyond the age of compulsory school attendance under 
        the law of the State or outlying area;
            (3) does not have a secondary school diploma or its 
        recognized equivalent; and
            (4) is not enrolled in secondary school.

    (e) Special Rule.--
            (1) <<NOTE: Territories.>>  In general.--From amounts made 
        available under subsection (c) for the Republic of Palau, the 
        Secretary shall award grants to Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, or the Republic of 
        Palau to carry out activities described in this title in 
        accordance with the provisions of this title, as determined by 
        the Secretary.
            (2) Award basis.--The Secretary shall award grants pursuant 
        to paragraph (1) on a competitive basis and pursuant to the 
        recommendations from the Pacific Region Educational Laboratory 
        in Honolulu, Hawaii.
            (3) Termination of eligibility.--Notwithstanding any other 
        provision of law, the Republic of Palau shall be eligible to 
        receive a grant under this title except during the period 
        described in section 3(45).
            (4) Administrative costs.--The Secretary may provide not 
        more than 5 percent of the funds made available for grants under 
        this subsection to pay the administrative costs of the Pacific 
        Region Educational Laboratory regarding activities assisted 
        under this subsection.

    (f) Hold-harmless Provisions.--
            (1) In general.--Notwithstanding subsection (c), for fiscal 
        year 2015 and each succeeding fiscal year, no eligible agency 
        shall receive an allotment under this section that is less than 
        90 percent of the allotment the eligible agency received for the 
        preceding fiscal year under this section.
            (2) Ratable reduction.--If for any fiscal year the amount 
        available for allotment under this title is insufficient to 
        satisfy the provisions of paragraph (1) the Secretary shall 
        ratably reduce the payments to all eligible agencies, as 
        necessary.

    (g) Reallotment.--The portion of any eligible agency's allotment 
under this title for a fiscal year that the Secretary determines will 
not be required for the period such allotment is available for carrying 
out activities under this title, shall be available for reallotment from 
time to time, on such dates during such period as the Secretary shall 
fix, to other eligible agencies in proportion to the original allotments 
to such agencies under this title for such year.

[[Page 128 STAT. 1614]]

SEC. 212. <<NOTE: 29 USC 3292.>>  PERFORMANCE ACCOUNTABILITY 
                        SYSTEM.

    Programs and activities authorized in this title are subject to the 
performance accountability provisions described in section 116.

                      Subtitle B--State Provisions

SEC. 221. <<NOTE: 29 USC 3301.>>  STATE ADMINISTRATION.

    Each eligible agency shall be responsible for the State or outlying 
area administration of activities under this title, including--
            (1) the development, implementation, and monitoring of the 
        relevant components of the unified State plan in section 102 or 
        the combined State plan in section 103;
            (2) consultation with other appropriate agencies, groups, 
        and individuals that are involved in, or interested in, the 
        development and implementation of activities assisted under this 
        title; and
            (3) coordination and nonduplication with other Federal and 
        State education, training, corrections, public housing, and 
        social service programs.
SEC. 222. <<NOTE: 29 USC 3302.>>  STATE DISTRIBUTION OF FUNDS; 
                        MATCHING REQUIREMENT.

    (a) State Distribution of Funds.--Each eligible agency receiving a 
grant under section 211(b) for a fiscal year--
            (1) shall use not less than 82.5 percent of the grant funds 
        to award grants and contracts under section 231 and to carry out 
        section 225, of which not more than 20 percent of such amount 
        shall be available to carry out section 225;
            (2) shall use not more than 12.5 percent of the grant funds 
        to carry out State leadership activities under section 223; and
            (3) shall use not more than 5 percent of the grant funds, or 
        $85,000, whichever is greater, for the administrative expenses 
        of the eligible agency.

    (b) Matching Requirement.--
            (1) In general.--In order to receive a grant from the 
        Secretary under section 211(b) each eligible agency shall 
        provide, for the costs to be incurred by the eligible agency in 
        carrying out the adult education and literacy activities for 
        which the grant is awarded, a non-Federal contribution in an 
        amount that is not less than--
                    (A) in the case of an eligible agency serving an 
                outlying area, 12 percent of the total amount of funds 
                expended for adult education and literacy activities in 
                the outlying area, except that the Secretary may 
                decrease the amount of funds required under this 
                subparagraph for an eligible agency; and
                    (B) in the case of an eligible agency serving a 
                State, 25 percent of the total amount of funds expended 
                for adult education and literacy activities in the 
                State.
            (2) Non-federal contribution.--An eligible agency's non-
        Federal contribution required under paragraph (1) may be 
        provided in cash or in kind, fairly evaluated, and shall include 
        only non-Federal funds that are used for adult education and 
        literacy activities in a manner that is consistent with the 
        purpose of this title.

[[Page 128 STAT. 1615]]

SEC. 223. <<NOTE: 29 USC 3303.>>  STATE LEADERSHIP ACTIVITIES.

    (a) Activities.--
            (1) Required.--Each eligible agency shall use funds made 
        available under section 222(a)(2) for the following adult 
        education and literacy activities to develop or enhance the 
        adult education system of the State or outlying area:
                    (A) The alignment of adult education and literacy 
                activities with other core programs and one-stop 
                partners, including eligible providers, to implement the 
                strategy identified in the unified State plan under 
                section 102 or the combined State plan under section 
                103, including the development of career pathways to 
                provide access to employment and training services for 
                individuals in adult education and literacy activities.
                    (B) The establishment or operation of high quality 
                professional development programs to improve the 
                instruction provided pursuant to local activities 
                required under section 231(b), including instruction 
                incorporating the essential components of reading 
                instruction as such components relate to adults, 
                instruction related to the specific needs of adult 
                learners, instruction provided by volunteers or by 
                personnel of a State or outlying area, and dissemination 
                of information about models and promising practices 
                related to such programs.
                    (C) The provision of technical assistance to 
                eligible providers of adult education and literacy 
                activities receiving funds under this title, including--
                          (i) the development and dissemination of 
                      instructional and programmatic practices based on 
                      the most rigorous or scientifically valid research 
                      available and appropriate, in reading, writing, 
                      speaking, mathematics, English language 
                      acquisition programs, distance education, and 
                      staff training;
                          (ii) the role of eligible providers as a one-
                      stop partner to provide access to employment, 
                      education, and training services; and
                          (iii) assistance in the use of technology, 
                      including for staff training, to eligible 
                      providers, especially the use of technology to 
                      improve system efficiencies.
                    (D) The monitoring and evaluation of the quality of, 
                and the improvement in, adult education and literacy 
                activities and the dissemination of information about 
                models and proven or promising practices within the 
                State.
            (2) Permissible activities.--Each eligible agency may use 
        funds made available under section 222(a)(2) for 1 or more of 
        the following adult education and literacy activities:
                    (A) The support of State or regional networks of 
                literacy resource centers.
                    (B) The development and implementation of technology 
                applications, translation technology, or distance 
                education, including professional development to support 
                the use of instructional technology.
                    (C) Developing and disseminating curricula, 
                including curricula incorporating the essential 
                components of reading instruction as such components 
                relate to adults.
                    (D) Developing content and models for integrated 
                education and training and career pathways.

[[Page 128 STAT. 1616]]

                    (E) The provision of assistance to eligible 
                providers in developing and implementing programs that 
                achieve the objectives of this title and in measuring 
                the progress of those programs in achieving such 
                objectives, including meeting the State adjusted levels 
                of performance described in section 116(b)(3).
                    (F) The development and implementation of a system 
                to assist in the transition from adult education to 
                postsecondary education, including linkages with 
                postsecondary educational institutions or institutions 
                of higher education.
                    (G) Integration of literacy and English language 
                instruction with occupational skill training, including 
                promoting linkages with employers.
                    (H) Activities to promote workplace adult education 
                and literacy activities.
                    (I) Identifying curriculum frameworks and aligning 
                rigorous content standards that--
                          (i) specify what adult learners should know 
                      and be able to do in the areas of reading and 
                      language arts, mathematics, and English language 
                      acquisition; and
                          (ii) take into consideration the following:
                                    (I) State adopted academic 
                                standards.
                                    (II) The current adult skills and 
                                literacy assessments used in the State 
                                or outlying area.
                                    (III) The primary indicators of 
                                performance described in section 116.
                                    (IV) Standards and academic 
                                requirements for enrollment in 
                                nonremedial, for-credit courses in 
                                postsecondary educational institutions 
                                or institutions of higher education 
                                supported by the State or outlying area.
                                    (V) Where appropriate, the content 
                                of occupational and industry skill 
                                standards widely used by business and 
                                industry in the State or outlying area.
                    (J) Developing and piloting of strategies for 
                improving teacher quality and retention.
                    (K) The development and implementation of programs 
                and services to meet the needs of adult learners with 
                learning disabilities or English language learners, 
                which may include new and promising assessment tools and 
                strategies that are based on scientifically valid 
                research, where appropriate, and identify the needs and 
                capture the gains of such students at the lowest 
                achievement levels.
                    (L) Outreach to instructors, students, and 
                employers.
                    (M) Other activities of statewide significance that 
                promote the purpose of this title.

    (b) Collaboration.--In carrying out this section, eligible agencies 
shall collaborate where possible, and avoid duplicating efforts, in 
order to maximize the impact of the activities described in subsection 
(a).
    (c) State-imposed Requirements.--Whenever a State or outlying area 
implements any rule or policy relating to the administration or 
operation of a program authorized under this title that has the effect 
of imposing a requirement that is not imposed under Federal law 
(including any rule or policy based on a State or

[[Page 128 STAT. 1617]]

outlying area interpretation of a Federal statute, regulation, or 
guideline), the State or outlying area shall identify, to eligible 
providers, the rule or policy as being imposed by the State or outlying 
area.
SEC. 224. <<NOTE: 29 USC 3304.>>  STATE PLAN.

    Each State desiring to receive funds under this title for any fiscal 
year shall submit and have approved a unified State plan in accordance 
with section 102 or a combined State plan in accordance with section 
103.
SEC. 225. <<NOTE: 29 USC 3305.>>  PROGRAMS FOR CORRECTIONS 
                        EDUCATION AND OTHER INSTITUTIONALIZED 
                        INDIVIDUALS.

    (a) Program Authorized.--From funds made available under section 
222(a)(1) for a fiscal year, each eligible agency shall carry out 
corrections education and education for other institutionalized 
individuals.
    (b) Uses of Funds.--The funds described in subsection (a) shall be 
used for the cost of educational programs for criminal offenders in 
correctional institutions and for other institutionalized individuals, 
including academic programs for--
            (1) adult education and literacy activities;
            (2) special education, as determined by the eligible agency;
            (3) secondary school credit;
            (4) integrated education and training;
            (5) career pathways;
            (6) concurrent enrollment;
            (7) peer tutoring; and
            (8) transition to re-entry initiatives and other postrelease 
        services with the goal of reducing recidivism.

    (c) Priority.--Each eligible agency that is using assistance 
provided under this section to carry out a program for criminal 
offenders within a correctional institution shall give priority to 
serving individuals who are likely to leave the correctional institution 
within 5 years of participation in the program.
    (d) Report.--In addition to any report required under section 116, 
each eligible agency that receives assistance provided under this 
section shall annually prepare and submit to the Secretary a report on 
the progress, as described in section 116, of the eligible agency with 
respect to the programs and activities carried out under this section, 
including the relative rate of recidivism for the criminal offenders 
served.
    (e) Definitions.--In this section:
            (1) Correctional institution.--The term ``correctional 
        institution'' means any--
                    (A) prison;
                    (B) jail;
                    (C) reformatory;
                    (D) work farm;
                    (E) detention center; or
                    (F) halfway house, community-based rehabilitation 
                center, or any other similar institution designed for 
                the confinement or rehabilitation of criminal offenders.
            (2) Criminal offender.--The term ``criminal offender'' means 
        any individual who is charged with or convicted of any criminal 
        offense.

[[Page 128 STAT. 1618]]

                      Subtitle C--Local Provisions

SEC. 231. <<NOTE: 29 USC 3321.>>  GRANTS AND CONTRACTS FOR 
                        ELIGIBLE PROVIDERS.

    (a) Grants and Contracts.--From grant funds made available under 
section 222(a)(1), each eligible agency shall award multiyear grants or 
contracts, on a competitive basis, to eligible providers within the 
State or outlying area to enable the eligible providers to develop, 
implement, and improve adult education and literacy activities within 
the State.
    (b) Required Local Activities.--The eligible agency shall require 
that each eligible provider receiving a grant or contract under 
subsection (a) use the grant or contract to establish or operate 
programs that provide adult education and literacy activities, including 
programs that provide such activities concurrently.
    (c) Direct and Equitable Access; Same Process.--Each eligible agency 
receiving funds under this title shall ensure that--
            (1) all eligible providers have direct and equitable access 
        to apply and compete for grants or contracts under this section; 
        and
            (2) the same grant or contract announcement process and 
        application process is used for all eligible providers in the 
        State or outlying area.

    (d) Special Rule.--Each eligible agency awarding a grant or contract 
under this section shall not use any funds made available under this 
title for adult education and literacy activities for the purpose of 
supporting or providing programs, services, or activities for 
individuals who are not individuals described in subparagraphs (A) and 
(B) of section 203(4), except that such agency may use such funds for 
such purpose if such programs, services, or activities are related to 
family literacy activities. In providing family literacy activities 
under this title, an eligible provider shall attempt to coordinate with 
programs and services that are not assisted under this title prior to 
using funds for adult education and literacy activities under this title 
for activities other than activities for eligible individuals.
    (e) Considerations.--In awarding grants or contracts under this 
section, the eligible agency shall consider--
            (1) the degree to which the eligible provider would be 
        responsive to--
                    (A) regional needs as identified in the local plan 
                under section 108; and
                    (B) serving individuals in the community who were 
                identified in such plan as most in need of adult 
                education and literacy activities, including 
                individuals--
                          (i) who have low levels of literacy skills; or
                          (ii) who are English language learners;
            (2) the ability of the eligible provider to serve eligible 
        individuals with disabilities, including eligible individuals 
        with learning disabilities;
            (3) past effectiveness of the eligible provider in improving 
        the literacy of eligible individuals, to meet State-adjusted 
        levels of performance for the primary indicators of performance 
        described in section 116, especially with respect to eligible 
        individuals who have low levels of literacy;
            (4) the extent to which the eligible provider demonstrates 
        alignment between proposed activities and services and the

[[Page 128 STAT. 1619]]

        strategy and goals of the local plan under section 108, as well 
        as the activities and services of the one-stop partners;
            (5) whether the eligible provider's program--
                    (A) is of sufficient intensity and quality, and 
                based on the most rigorous research available so that 
                participants achieve substantial learning gains; and
                    (B) uses instructional practices that include the 
                essential components of reading instruction;
            (6) whether the eligible provider's activities, including 
        whether reading, writing, speaking, mathematics, and English 
        language acquisition instruction delivered by the eligible 
        provider, are based on the best practices derived from the most 
        rigorous research available and appropriate, including 
        scientifically valid research and effective educational 
        practice;
            (7) whether the eligible provider's activities effectively 
        use technology, services, and delivery systems, including 
        distance education in a manner sufficient to increase the amount 
        and quality of learning and how such technology, services, and 
        systems lead to improved performance;
            (8) whether the eligible provider's activities provide 
        learning in context, including through integrated education and 
        training, so that an individual acquires the skills needed to 
        transition to and complete postsecondary education and training 
        programs, obtain and advance in employment leading to economic 
        self-sufficiency, and to exercise the rights and 
        responsibilities of citizenship;
            (9) whether the eligible provider's activities are delivered 
        by well-trained instructors, counselors, and administrators who 
        meet any minimum qualifications established by the State, where 
        applicable, and who have access to high quality professional 
        development, including through electronic means;
            (10) whether the eligible provider's activities coordinate 
        with other available education, training, and social service 
        resources in the community, such as by establishing strong links 
        with elementary schools and secondary schools, postsecondary 
        educational institutions, institutions of higher education, 
        local workforce investment boards, one-stop centers, job 
        training programs, and social service agencies, business, 
        industry, labor organizations, community-based organizations, 
        nonprofit organizations, and intermediaries, for the development 
        of career pathways;
            (11) whether the eligible provider's activities offer 
        flexible schedules and coordination with Federal, State, and 
        local support services (such as child care, transportation, 
        mental health services, and career planning) that are necessary 
        to enable individuals, including individuals with disabilities 
        or other special needs, to attend and complete programs;
            (12) whether the eligible provider maintains a high-quality 
        information management system that has the capacity to report 
        measurable participant outcomes (consistent with section 116) 
        and to monitor program performance; and
            (13) whether the local areas in which the eligible provider 
        is located have a demonstrated need for additional English 
        language acquisition programs and civics education programs.

[[Page 128 STAT. 1620]]

SEC. 232. <<NOTE: 29 USC 3322.>>  LOCAL APPLICATION.

    Each eligible provider desiring a grant or contract from an eligible 
agency shall submit an application to the eligible agency containing 
such information and assurances as the eligible agency may require, 
including--
            (1) a description of how funds awarded under this title will 
        be spent consistent with the requirements of this title;
            (2) a description of any cooperative arrangements the 
        eligible provider has with other agencies, institutions, or 
        organizations for the delivery of adult education and literacy 
        activities;
            (3) a description of how the eligible provider will provide 
        services in alignment with the local plan under section 108, 
        including how such provider will promote concurrent enrollment 
        in programs and activities under title I, as appropriate;
            (4) a description of how the eligible provider will meet the 
        State adjusted levels of performance described in section 
        116(b)(3), including how such provider will collect data to 
        report on such performance indicators;
            (5) a description of how the eligible provider will fulfill 
        one-stop partner responsibilities as described in section 
        121(b)(1)(A), as appropriate;
            (6) a description of how the eligible provider will provide 
        services in a manner that meets the needs of eligible 
        individuals; and
            (7) information that addresses the considerations described 
        under section 231(e), as applicable.
SEC. 233. <<NOTE: 29 USC 3323.>>  LOCAL ADMINISTRATIVE COST 
                        LIMITS.

    (a) In General.--Subject to subsection (b), of the amount that is 
made available under this title to an eligible provider--
            (1) not less than 95 percent shall be expended for carrying 
        out adult education and literacy activities; and
            (2) the remaining amount, not to exceed 5 percent, shall be 
        used for planning, administration (including carrying out the 
        requirements of section 116), professional development, and the 
        activities described in paragraphs (3) and (5) of section 232.

    (b) Special Rule.--In cases where the cost limits described in 
subsection (a) are too restrictive to allow for the activities described 
in subsection (a)(2), the eligible provider shall negotiate with the 
eligible agency in order to determine an adequate level of funds to be 
used for noninstructional purposes.

                     Subtitle D--General Provisions

SEC. 241. <<NOTE: 29 USC 3331.>>  ADMINISTRATIVE PROVISIONS.

    (a) Supplement Not Supplant.--Funds made available for adult 
education and literacy activities under this title shall supplement and 
not supplant other State or local public funds expended for adult 
education and literacy activities.
    (b) Maintenance of Effort.--
            (1) In general.--
                    (A) Determination.--An eligible agency may receive 
                funds under this title for any fiscal year if the 
                Secretary finds that the fiscal effort per student or 
                the aggregate

[[Page 128 STAT. 1621]]

                expenditures of such eligible agency for activities 
                under this title, in the second preceding fiscal year, 
                were not less than 90 percent of the fiscal effort per 
                student or the aggregate expenditures of such eligible 
                agency for adult education and literacy activities in 
                the third preceding fiscal year.
                    (B) Proportionate reduction.--Subject to paragraphs 
                (2), (3), and (4), for any fiscal year with respect to 
                which the Secretary determines under subparagraph (A) 
                that the fiscal effort or the aggregate expenditures of 
                an eligible agency for the preceding program year were 
                less than such effort or expenditures for the second 
                preceding program year, the Secretary--
                          (i) <<NOTE: Determination.>>  shall determine 
                      the percentage decreases in such effort or in such 
                      expenditures; and
                          (ii) shall decrease the payment made under 
                      this title for such program year to the agency for 
                      adult education and literacy activities by the 
                      lesser of such percentages.
            (2) Computation.--In computing the fiscal effort and 
        aggregate expenditures under paragraph (1), the Secretary shall 
        exclude capital expenditures and special one-time project costs.
            (3) Decrease in federal support.--If the amount made 
        available for adult education and literacy activities under this 
        title for a fiscal year is less than the amount made available 
        for adult education and literacy activities under this title for 
        the preceding fiscal year, then the fiscal effort per student 
        and the aggregate expenditures of an eligible agency required in 
        order to avoid a reduction under paragraph (1)(B) shall be 
        decreased by the same percentage as the percentage decrease in 
        the amount so made available.
            (4) Waiver.--The Secretary may waive the requirements of 
        this subsection for not more than 1 fiscal year, if the 
        Secretary determines that a waiver would be equitable due to 
        exceptional or uncontrollable circumstances, such as a natural 
        disaster or an unforeseen and precipitous decline in the 
        financial resources of the State or outlying area of the 
        eligible agency. If the Secretary grants a waiver under the 
        preceding sentence for a fiscal year, the level of effort 
        required under paragraph (1) shall not be reduced in the 
        subsequent fiscal year because of the waiver.
SEC. 242. <<NOTE: 29 USC 3332.>>  NATIONAL LEADERSHIP ACTIVITIES.

    (a) In General.--The Secretary shall establish and carry out a 
program of national leadership activities to enhance the quality and 
outcomes of adult education and literacy activities and programs 
nationwide.
    (b) Required Activities.--The national leadership activities 
described in subsection (a) shall include technical assistance, 
including--
            (1) assistance to help States meet the requirements of 
        section 116;
            (2) upon request by a State, assistance provided to eligible 
        providers in using performance accountability measures based on 
        indicators described in section 116, and data systems for the 
        improvement of adult education and literacy activities;

[[Page 128 STAT. 1622]]

            (3) carrying out rigorous research and evaluation on 
        effective adult education and literacy activities, as well as 
        estimating the number of adults functioning at the lowest levels 
        of literacy proficiency, which shall be coordinated across 
        relevant Federal agencies, including the Institute of Education 
        Sciences; and
            (4) carrying out an independent evaluation at least once 
        every 4 years of the programs and activities under this title, 
        taking into consideration the evaluation subjects referred to in 
        section 169(a)(2).

    (c) Allowable Activities.--The national leadership activities 
described in subsection (a) may include the following:
            (1) Technical assistance, including--
                    (A) assistance related to professional development 
                activities, and assistance for the purposes of 
                developing, improving, identifying, and disseminating 
                the most successful methods and techniques for providing 
                adult education and literacy activities, based on 
                scientifically valid research where available;
                    (B) assistance in distance education and promoting 
                and improving the use of technology in the classroom, 
                including instruction in English language acquisition 
                for English language learners;
                    (C) assistance in the development and dissemination 
                of proven models for addressing the digital literacy 
                needs of adults, including older adults; and
                    (D) supporting efforts aimed at strengthening 
                programs at the State and local levels, such as 
                technical assistance in program planning, assessment, 
                evaluation, and monitoring of activities carried out 
                under this title.
            (2) Funding national leadership activities either directly 
        or through grants, contracts, or cooperative agreements awarded 
        on a competitive basis to or with postsecondary educational 
        institutions, institutions of higher education, public or 
        private organizations or agencies (including public libraries), 
        or consortia of such institutions, organizations, or agencies, 
        which may include--
                    (A) developing, improving, and identifying the most 
                successful methods and techniques for addressing the 
                education needs of adults, including instructional 
                practices using the essential components of reading 
                instruction based on the work of the National Institute 
                of Child Health and Human Development;
                    (B) supporting national, regional, or local networks 
                of private nonprofit organizations, public libraries, or 
                institutions of higher education to strengthen the 
                ability of such networks' members to meet the 
                performance requirements described in section 116 of 
                eligible providers;
                    (C) increasing the effectiveness, and improving the 
                quality, of adult education and literacy activities, 
                which may include--
                          (i) carrying out rigorous research;
                          (ii) carrying out demonstration programs;
                          (iii) accelerating learning outcomes for 
                      eligible individuals with the lowest literacy 
                      levels;
                          (iv) developing and promoting career pathways 
                      for eligible individuals;

[[Page 128 STAT. 1623]]

                          (v) promoting concurrent enrollment programs 
                      in adult education and credit bearing 
                      postsecondary coursework;
                          (vi) developing high-quality professional 
                      development activities for eligible providers; and
                          (vii) developing, replicating, and 
                      disseminating information on best practices and 
                      innovative programs, such as--
                                    (I) the identification of effective 
                                strategies for working with adults with 
                                learning disabilities and with adults 
                                who are English language learners;
                                    (II) integrated education and 
                                training programs;
                                    (III) workplace adult education and 
                                literacy activities; and
                                    (IV) postsecondary education and 
                                training transition programs;
                    (D) providing for the conduct of an independent 
                evaluation and assessment of adult education and 
                literacy activities through grants and contracts awarded 
                on a competitive basis, which shall include descriptions 
                of--
                          (i) the effect of performance accountability 
                      measures and other measures of accountability on 
                      the delivery of adult education and literacy 
                      activities;
                          (ii) the extent to which the adult education 
                      and literacy activities increase the literacy 
                      skills of eligible individuals, lead to 
                      involvement in education and training, enhance the 
                      employment and earnings of such participants, and, 
                      if applicable, lead to other positive outcomes, 
                      such as success in re-entry and reductions in 
                      recidivism in the case of prison-based adult 
                      education and literacy activities;
                          (iii) the extent to which the provision of 
                      support services to eligible individuals enrolled 
                      in adult education and literacy activities 
                      increase the rate of enrollment in, and successful 
                      completion of, such programs; and
                          (iv) the extent to which different types of 
                      providers measurably improve the skills of 
                      eligible individuals in adult education and 
                      literacy activities;
                    (E) collecting data, such as data regarding the 
                improvement of both local and State data systems, 
                through technical assistance and development of model 
                performance data collection systems;
                    (F) determining how participation in adult education 
                and literacy activities prepares eligible individuals 
                for entry into postsecondary education and employment 
                and, in the case of programs carried out in correctional 
                institutions, has an effect on recidivism; and
                    (G) other activities designed to enhance the quality 
                of adult education and literacy activities nationwide.
SEC. 243. <<NOTE: 29 USC 3333.>>  INTEGRATED ENGLISH LITERACY AND 
                        CIVICS EDUCATION.

    (a) <<NOTE: Grants.>>  In General.--From funds made available under 
section 211(a)(2) for each fiscal year, the Secretary shall award grants 
to States, from allotments under subsection (b), for integrated

[[Page 128 STAT. 1624]]

English literacy and civics education, in combination with integrated 
education and training activities.

    (b) Allotment.--
            (1) In general.--Subject to paragraph (2), from amounts made 
        available under section 211(a)(2) for a fiscal year, the 
        Secretary shall allocate--
                    (A) 65 percent to the States on the basis of a 
                State's need for integrated English literacy and civics 
                education, as determined by calculating each State's 
                share of a 10-year average of the data of the Office of 
                Immigration Statistics of the Department of Homeland 
                Security for immigrants admitted for legal permanent 
                residence for the 10 most recent years; and
                    (B) 35 percent to the States on the basis of whether 
                the State experienced growth, as measured by the average 
                of the 3 most recent years for which the data of the 
                Office of Immigration Statistics of the Department of 
                Homeland Security for immigrants admitted for legal 
                permanent residence are available.
            (2) Minimum.--No State shall receive an allotment under 
        paragraph (1) in an amount that is less than $60,000.

    (c) Goal.--Each program that receives funding under this section 
shall be designed to--
            (1) prepare adults who are English language learners for, 
        and place such adults in, unsubsidized employment in in-demand 
        industries and occupations that lead to economic self-
        sufficiency; and
            (2) integrate with the local workforce development system 
        and its functions to carry out the activities of the program.

    (d) Report.--The Secretary shall prepare and submit to the Committee 
on Education and the Workforce of the House of Representatives, and the 
Committee on Health, Education, Labor, and Pensions of the Senate and 
make available to the public, a report on the activities carried out 
under this section.

             TITLE III--AMENDMENTS TO THE WAGNER-PEYSER ACT

SEC. 301. EMPLOYMENT SERVICE OFFICES.

    Section 1 of the Wagner-Peyser Act (29 U.S.C. 49) is amended by 
inserting ``service'' before ``offices''.
SEC. 302. DEFINITIONS.

    Section 2 of the Wagner-Peyser Act (29 U.S.C. 49a) is amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1) the terms `chief elected official', `institution of 
        higher education', `one-stop center', `one-stop partner', 
        `training services', `workforce development activity', and 
        `workplace learning advisor', have the meaning given the terms 
        in section 3 of the Workforce Innovation and Opportunity Act;'';
            (2) in paragraph (2)--
                    (A) by striking ``investment board'' each place it 
                appears and inserting ``development board''; and

[[Page 128 STAT. 1625]]

                    (B) by striking ``section 117 of the Workforce 
                Investment Act of 1998'' and inserting ``section 107 of 
                the Workforce Innovation and Opportunity Act'';
            (3) in paragraph (3)--
                    (A) by striking ``134(c)'' and inserting ``121(e)''; 
                and
                    (B) by striking ``Workforce Investment Act of 1998'' 
                and inserting ``Workforce Innovation and Opportunity 
                Act''; and
            (4) in paragraph (4), by striking ``and'' at the end;
            (5) in paragraph (5), by striking the period and inserting 
        ``; and''; and
            (6) by adding at the end the following:
            ``(6) the term `employment service office' means a local 
        office of a State agency; and
            ``(7) except in section 15, the term `State agency', used 
        without further description, means an agency designated or 
        authorized under section 4.''.
SEC. 303. FEDERAL AND STATE EMPLOYMENT SERVICE OFFICES.

    (a) Coordination.--Section 3(a) of the Wagner-Peyser Act (29 U.S.C. 
49b(a)) is amended by striking ``services'' and inserting ``service 
offices''.
    (b) Public Labor Exchange Services System.--Section 3(c) of the 
Wagner-Peyser Act (29 U.S.C. 49b(c)) is amended--
            (1) in paragraph (2), by striking the semicolon and 
        inserting ``, and identify and disseminate information on best 
        practices for such system; and''; and
            (2) by adding at the end the following:
            ``(4) in coordination with the State agencies and the staff 
        of such agencies, assist in the planning and implementation of 
        activities to enhance the professional development and career 
        advancement opportunities of such staff, in order to strengthen 
        the provision of a broad range of career guidance services, the 
        identification of job openings (including providing intensive 
        outreach to small and medium-sized employers and enhanced 
        employer services), the provision of technical assistance and 
        training to other providers of workforce development activities 
        (including workplace learning advisors) relating to counseling 
        and employment-related services, and the development of new 
        strategies for coordinating counseling and technology.''.

    (c) One-stop Centers.--Section 3 of the Wagner-Peyser Act (29 U.S.C. 
49b) is amended by inserting after subsection (c) the following:
    ``(d) In order to improve service delivery, avoid duplication of 
services, and enhance coordination of services, including location of 
staff to ensure access to services under section 7(a) statewide in 
underserved areas, employment service offices in each State shall be 
colocated with one-stop centers.
    ``(e) <<NOTE: Consultation.>>  The Secretary, in consultation with 
States, is authorized to assist the States in the development of 
national electronic tools that may be used to improve access to 
workforce information for individuals through--
            ``(1) the one-stop delivery systems established as described 
        in section 121(e) of the Workforce Innovation and Opportunity 
        Act; and
            ``(2) such other delivery systems as the Secretary 
        determines to be appropriate.''.

[[Page 128 STAT. 1626]]

SEC. 304. ALLOTMENT OF SUMS.

    Section 6 of the Wagner-Peyser Act (29 U.S.C. 49e) is amended--
            (1) in subsection (a), by striking ``amounts appropriated 
        pursuant to section 5'' and inserting ``funds appropriated and 
        (except for Guam) certified under section 5 and made available 
        for allotments under this section''; and
            (2) in subsection (b)(1)--
                    (A) in the matter preceding subparagraph (A)--
                          (i) by inserting before ``the Secretary'' the 
                      following ``after making the allotments required 
                      by subsection (a),''; and
                          (ii) by striking ``sums'' and all that follows 
                      through ``this Act'' and inserting ``funds 
                      described in subsection (a)'';
                    (B) in each of subparagraphs (A) and (B), by 
                striking ``sums'' and inserting ``remainder''; and
                    (C) by adding at the end the following: ``For 
                purposes of this paragraph, the term `State' does not 
                include Guam or the Virgin Islands.''.
SEC. 305. USE OF SUMS.

    (a) Improved Coordination.--Section 7(a)(1) of the Wagner-Peyser Act 
(29 U.S.C. 49f(a)(1)) is amended by inserting ``, including unemployment 
insurance claimants,'' after ``seekers''.
    (b) Resources for Unemployment Insurance Claimants.--Section 7(a)(3) 
of the Wagner-Peyser Act (29 U.S.C. 49f(a)(3)) is amended--
            (1) by striking ``and'' at the end of subparagraph (E);
            (2) in subparagraph (F)--
                    (A) by inserting ``, including making eligibility 
                assessments,'' after ``system''; and
                    (B) by striking the period at the end and inserting 
                ``; and''; and
            (3) by inserting after subparagraph (F) the following:
                    ``(G) providing unemployment insurance claimants 
                with referrals to, and application assistance for, 
                training and education resources and programs, including 
                Federal Pell Grants under subpart 1 of part A of title 
                IV of the Higher Education Act of 1965 (20 U.S.C. 1070a 
                et seq.), educational assistance under chapter 30 of 
                title 38, United States Code (commonly referred to as 
                the Montgomery GI Bill), and chapter 33 of that title 
                (Post-9/11 Veterans Educational Assistance), student 
                assistance under title IV of the Higher Education Act of 
                1965 (20 U.S.C. 1070 et seq.), State student higher 
                education assistance, and training and education 
                programs provided under titles I and II of the Workforce 
                Innovation and Opportunity Act, and title I of the 
                Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.).''.

    (c) State Activities.--Section 7(b) of the Wagner-Peyser Act (29 
U.S.C. 49f(b)) is amended--
            (1) in paragraph (1), by striking ``performance standards 
        established by the Secretary'' and inserting ``the performance 
        accountability measures that are based on indicators described 
        in section 116(b)(2)(A)(i) of the Workforce Innovation and 
        Opportunity Act'';

[[Page 128 STAT. 1627]]

            (2) in paragraph (2), by inserting ``offices'' after 
        ``employment service''; and
            (3) in paragraph (3), by inserting ``, and models for 
        enhancing professional development and career advancement 
        opportunities of State agency staff, as described in section 
        3(c)(4)'' after ``subsection (a)''.

    (d) Providing Additional Funds.--Subsections (c)(2) and (d) of 
section 7 of the Wagner-Peyser Act (29 U.S.C. 49f) are amended by 
striking ``the Workforce Investment Act of 1998'' and inserting ``the 
Workforce Innovation and Opportunity Act''.
    (e) Conforming Amendment.--Section 7(e) of the Wagner-Peyser Act (29 
U.S.C. 49f(e)) is amended by striking ``labor employment statistics'' 
and inserting ``workforce and labor market information''.
SEC. 306. STATE PLAN.

    Section 8 of the Wagner-Peyser Act (29 U.S.C. 49g) is amended to 
read as follows:
    ``Sec. 8.  Any State desiring to receive assistance under section 6 
shall prepare and submit to, and have approved by, the Secretary and the 
Secretary of Education, a State plan in accordance with section 102 or 
103 of the Workforce Innovation and Opportunity Act.''.
SEC. 307. PERFORMANCE MEASURES.

    Section 13(a) of the Wagner-Peyser Act (29 U.S.C. 49l(a)) is amended 
to read as follows:
    ``(a) The activities carried out pursuant to section 7 shall be 
subject to the performance accountability measures that are based on 
indicators described in section 116(b)(2)(A)(i) of the Workforce 
Innovation and Opportunity Act.''.
SEC. 308. WORKFORCE AND LABOR MARKET INFORMATION SYSTEM.

    (a) Heading.--The section heading for section 15 of the Wagner-
Peyser Act (29 U.S.C. 49l-2) is amended by striking ``employment 
statistics'' and inserting ``workforce and labor market information 
system''.
    (b) Name of System.--Section 15(a)(1) of the Wagner-Peyser Act (29 
U.S.C. 49l-2(a)(1)) is amended by striking ``employment statistics 
system of employment statistics'' and inserting ``workforce and labor 
market information system''.
    (c) System Responsibilities.--Section 15(b) of the Wagner-Peyser Act 
(29 U.S.C. 49l-2(b)) is amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1) In general.--
                    ``(A) <<NOTE: Evaluation. Consultation.>>  
                Structure.--The workforce and labor market information 
                system described in subsection (a) shall be evaluated 
                and improved by the Secretary, in consultation with the 
                Workforce Information Advisory Council established in 
                subsection (d).
                    ``(B) Grants and responsibilities.--
                          ``(i) In general.--The Secretary shall carry 
                      out the provisions of this section in a timely 
                      manner, through grants to or agreements with 
                      States.
                          ``(ii) Distribution of funds.--Using amounts 
                      appropriated under subsection (g), the Secretary 
                      shall provide funds through those grants and 
                      agreements. In distributing the funds (relating to 
                      workforce and

[[Page 128 STAT. 1628]]

                      labor market information funding) for fiscal years 
                      2015 through 2020, the Secretary shall continue to 
                      distribute the funds to States in the manner in 
                      which the Secretary distributed funds to the 
                      States under this section for fiscal years 2004 
                      through 2008.''; and
            (2) by striking paragraph (2) and inserting the following:
            ``(2) Duties.--The Secretary, with respect to data 
        collection, analysis, and dissemination of workforce and labor 
        market information for the system, shall carry out the following 
        duties:
                    ``(A) Assign responsibilities within the Department 
                of Labor for elements of the workforce and labor market 
                information system described in subsection (a) to ensure 
                that the statistical and administrative data collected 
                is consistent with appropriate Bureau of Labor 
                Statistics standards and definitions, and that the 
                information is accessible and understandable to users of 
                such data.
                    ``(B) Actively seek the cooperation of heads of 
                other Federal agencies to establish and maintain 
                mechanisms for ensuring complementarity and 
                nonduplication in the development and operation of 
                statistical and administrative data collection 
                activities.
                    ``(C) Solicit, receive, and evaluate the 
                recommendations from the Workforce Information Advisory 
                Council established in subsection (d) concerning the 
                evaluation and improvement of the workforce and labor 
                market information system described in subsection (a) 
                and respond in writing to the Council regarding the 
                recommendations.
                    ``(D) Eliminate gaps and duplication in statistical 
                undertakings.
                    ``(E) Through the Bureau of Labor Statistics and the 
                Employment and Training Administration, and in 
                collaboration with States, develop and maintain the 
                elements of the workforce and labor market information 
                system described in subsection (a), including the 
                development of consistent procedures and definitions for 
                use by the States in collecting the data and information 
                described in subparagraphs (A) and (B) of subsection 
                (a)(1).
                    ``(F) Establish procedures for the system to ensure 
                that--
                          ``(i) such data and information are timely; 
                      and
                          ``(ii) paperwork and reporting for the system 
                      are reduced to a minimum.''.

    (d) Two-year Plan.--Section 15 of the Wagner-Peyser Act (29 U.S.C. 
49l-2) is amended by striking subsection (c) and inserting the 
following:
    ``(c) Two-year Plan.--The Secretary, acting through the Commissioner 
of Labor Statistics and the Assistant Secretary for Employment and 
Training, and in consultation with the Workforce Information Advisory 
Council described in subsection (d) and heads of other appropriate 
Federal agencies, shall prepare a 2-year plan for the workforce and 
labor market information system. The plan shall be developed and 
implemented in a manner that takes into account the activities described 
in State plans submitted by States under section 102 or 103 of the 
Workforce Innovation and Opportunity Act and shall be submitted to the 
Committee on Education

[[Page 128 STAT. 1629]]

and the Workforce of the House of Representatives and the Committee on 
Health, Education, Labor, and Pensions of the Senate. The plan shall 
include--
            ``(1) a description of how the Secretary will work with the 
        States to manage the nationwide workforce and labor market 
        information system described in subsection (a) and the statewide 
        workforce and labor market information systems that comprise the 
        nationwide system;
            ``(2) a description of the steps to be taken in the 
        following 2 years to carry out the duties described in 
        subsection (b)(2);
            ``(3) <<NOTE: Evaluation.>>  an evaluation of the 
        performance of the system, with particular attention to the 
        improvements needed at the State and local levels;
            ``(4) a description of the involvement of States in the 
        development of the plan, through consultation by the Secretary 
        with the Workforce Information Advisory Council in accordance 
        with subsection (d); and
            ``(5) a description of the written recommendations received 
        from the Workforce Information Advisory Council established 
        under subsection (d), and the extent to which those 
        recommendations were incorporated into the plan.''.

    (e) Workforce Information Advisory Council.--Section 15 of the 
Wagner-Peyser Act (29 U.S.C. 49l-2) is amended by striking subsection 
(d) and inserting the following:
    ``(d) Workforce Information Advisory Council.--
            ``(1) <<NOTE: Consultation. Deadline.>>  In general.--The 
        Secretary, through the Commissioner of Labor Statistics and the 
        Assistant Secretary for Employment and Training, shall formally 
        consult at least twice annually with the Workforce Information 
        Advisory Council established in accordance with paragraph (2). 
        Such consultations shall address the evaluation and improvement 
        of the nationwide workforce and labor market information system 
        described in subsection (a) and the statewide workforce and 
        labor market information systems that comprise the nationwide 
        system and how the Department of Labor and the States will 
        cooperate in the management of such systems. <<NOTE: Recommenda- 
        tions.>>  The Council shall provide written recommendations to 
        the Secretary concerning the evaluation and improvement of the 
        nationwide system, including any recommendations regarding the 
        2-year plan described in subsection (c).
            ``(2) Establishment of council.--
                    ``(A) Establishment.--The Secretary shall establish 
                an advisory council that shall be known as the Workforce 
                Information Advisory Council (referred to in this 
                section as the `Council') to participate in the 
                consultations and provide the recommendations described 
                in paragraph (1).
                    ``(B) <<NOTE: Appointments.>>  Membership.--The 
                Secretary shall appoint the members of the Council, 
                which shall consist of--
                          ``(i) 4 members who are representatives of 
                      lead State agencies with responsibility for 
                      workforce investment activities, or State agencies 
                      described in section 4, who have been nominated by 
                      such agencies or by a national organization that 
                      represents such agencies;
                          ``(ii) 4 members who are representatives of 
                      the State workforce and labor market information 
                      directors affiliated with the State agencies that 
                      perform the

[[Page 128 STAT. 1630]]

                      duties described in subsection (e)(2), who have 
                      been nominated by the directors;
                          ``(iii) 1 member who is a representative of 
                      providers of training services under section 122 
                      of the Workforce Innovation and Opportunity Act;
                          ``(iv) 1 member who is a representative of 
                      economic development entities;
                          ``(v) 1 member who is a representative of 
                      businesses, who has been nominated by national 
                      business organizations or trade associations;
                          ``(vi) 1 member who is a representative of 
                      labor organizations, who has been nominated by a 
                      national labor federation;
                          ``(vii) 1 member who is a representative of 
                      local workforce development boards, who has been 
                      nominated by a national organization representing 
                      such boards; and
                          ``(viii) 1 member who is a representative of 
                      research entities that utilize workforce and labor 
                      market information.
                    ``(C) Geographic diversity.--The Secretary shall 
                ensure that the membership of the Council is 
                geographically diverse and that no 2 of the members 
                appointed under clauses (i), (ii), and (vii) represent 
                the same State.
                    ``(D) Period of appointment; vacancies.--
                          ``(i) In general.--Each member of the Council 
                      shall be appointed for a term of 3 years, except 
                      that the initial terms for members may be 1, 2, or 
                      3 years in order to establish a rotation in which 
                      one-third of the members are selected each year. 
                      Any such member may be appointed for not more than 
                      2 consecutive terms.
                          ``(ii) Vacancies.--Any member appointed to 
                      fill a vacancy occurring before the expiration of 
                      the term for which the member's predecessor was 
                      appointed shall be appointed only for the 
                      remainder of that term. A member may serve after 
                      the expiration of that member's term until a 
                      successor has taken office.
                    ``(E) Travel expenses.--The members of the Council 
                shall not receive compensation for the performance of 
                services for the Council, but shall be allowed travel 
                expenses, including per diem in lieu of subsistence, at 
                rates authorized for employees of agencies under 
                subchapter I of chapter 57 of title 5, United States 
                Code, while away from their homes or regular places of 
                business in the performance of services for the Council. 
                Notwithstanding section 1342 of title 31, United States 
                Code, the Secretary may accept the voluntary and 
                uncompensated services of members of the Council.
                    ``(F) Permanent council.--Section 14 of the Federal 
                Advisory Committee Act (5 U.S.C. App.) shall not apply 
                to the Council.''.

    (f) State Responsibilities.--Section 15(e) of the Wagner-Peyser Act 
(29 U.S.C. 49l-2(e)) is amended--
            (1) by striking ``employment statistics'' each place it 
        appears and inserting ``workforce and labor market 
        information'';

[[Page 128 STAT. 1631]]

            (2) in paragraph (1)(A) by striking ``annual plan'' and 
        inserting ``plan described in subsection (c)'';
            (3) in paragraph (2)--
                    (A) in subparagraph (G), by inserting ``and'' at the 
                end;
                    (B) by striking subparagraph (H);
                    (C) in subparagraph (I), by striking ``section 
                136(f)(2) of the Workforce Investment Act of 1998'' and 
                inserting ``section 116(i)(2) of the Workforce 
                Innovation and Opportunity Act''; and
                    (D) by redesignating subparagraph (I) as 
                subparagraph (H).

    (g) Authorization of Appropriations.--Section 15(g) of the Wagner-
Peyser Act (29 U.S.C. 49l-2(g)) is amended by striking ``such sums as 
may be necessary for each of the fiscal years 1999 through 2004'' and 
inserting ``$60,153,000 for fiscal year 2015, $64,799,000 for fiscal 
year 2016, $66,144,000 for fiscal year 2017, $67,611,000 for fiscal year 
2018, $69,200,000 for fiscal year 2019, and $70,667,000 for fiscal year 
2020''.

         TITLE IV--AMENDMENTS TO THE REHABILITATION ACT OF 1973

                   Subtitle A--Introductory Provisions

SEC. 401. REFERENCES.

    Except as otherwise specifically provided, whenever in this title an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a provision, the amendment or repeal shall be considered to be made 
to a provision of the Rehabilitation Act of 1973 (29 U.S.C. 701 et 
seq.).
SEC. 402. FINDINGS, PURPOSE, POLICY.

    (a) Findings.--Section 2(a) (29 U.S.C. 701(a)) is amended--
            (1) in paragraph (4), by striking ``workforce investment 
        systems under title I of the Workforce Investment Act of 1998'' 
        and inserting ``workforce development systems defined in section 
        3 of the Workforce Innovation and Opportunity Act'';
            (2) in paragraph (5), by striking ``and'' at the end;
            (3) in paragraph (6), by striking the period and inserting 
        ``; and''; and
            (4) by adding at the end the following:
            ``(7)(A) a high proportion of students with disabilities is 
        leaving secondary education without being employed in 
        competitive integrated employment, or being enrolled in 
        postsecondary education; and
            ``(B) there is a substantial need to support such students 
        as they transition from school to postsecondary life.''.

    (b) Purpose.--Section 2(b) (29 U.S.C. 701(b)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by striking ``workforce 
                investment systems implemented in accordance with title 
                I of the Workforce Investment Act of 1998'' and 
                inserting ``workforce development systems defined in 
                section 3 of the Workforce Innovation and Opportunity 
                Act''; and

[[Page 128 STAT. 1632]]

                    (B) at the end of subparagraph (F), by striking 
                ``and'';
            (2) by redesignating paragraph (2) as paragraph (3);
            (3) by inserting after paragraph (1) the following:
            ``(2) to maximize opportunities for individuals with 
        disabilities, including individuals with significant 
        disabilities, for competitive integrated employment;'';
            (4) in paragraph (3), as redesignated by paragraph (2), by 
        striking the period at the end and inserting a semicolon; and
            (5) by adding at the end the following:
            ``(4) to increase employment opportunities and employment 
        outcomes for individuals with disabilities, including through 
        encouraging meaningful input by employers and vocational 
        rehabilitation service providers on successful and prospective 
        employment and placement strategies; and
            ``(5) to ensure, to the greatest extent possible, that youth 
        with disabilities and students with disabilities who are 
        transitioning from receipt of special education services under 
        the Individuals with Disabilities Education Act (20 U.S.C. 1400 
        et seq.) and receipt of services under section 504 of this Act 
        have opportunities for postsecondary success.''.
SEC. 403. REHABILITATION SERVICES ADMINISTRATION.

    Section 3 (29 U.S.C. 702) is amended--
            (1) in subsection (a)--
                    (A) in the first sentence, by inserting ``in the 
                Department of Education'' after ``Secretary'';
                    (B) by striking the second sentence and inserting 
                ``Such Administration shall be the principal agency, and 
                the Commissioner shall be the principal officer, of the 
                Department for purposes of carrying out titles I, III, 
                VI, and chapter 2 of title VII.''; and
                    (C) in the fourth and sixth sentences, by inserting 
                ``of Education'' after ``Secretary'' the first place it 
                appears; and
            (2) in subsection (b), by inserting ``of Education'' after 
        ``Secretary''.
SEC. 404. DEFINITIONS.

    Section 7 (29 U.S.C. 705) is amended--
            (1) in paragraph (2)(B)--
                    (A) in clause (iii), by striking ``and'' at the end;
                    (B) in clause (iv), by striking the semicolon and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
                          ``(v) to the maximum extent possible, relies 
                      on information obtained from experiences in 
                      integrated employment settings in the community, 
                      and other integrated community settings;'';
            (2) by striking paragraphs (3) and (4) and inserting the 
        following:
            ``(3) Assistive technology terms.--
                    ``(A) Assistive technology.--The term `assistive 
                technology' has the meaning given such term in section 3 
                of the Assistive Technology Act of 1998 (29 U.S.C. 
                3002).
                    ``(B) Assistive technology device.--The term 
                `assistive technology device' has the meaning given such 
                term in section 3 of the Assistive Technology Act of 
                1998,

[[Page 128 STAT. 1633]]

                except that the reference in such section to the term 
                `individuals with disabilities' shall be deemed to mean 
                more than 1 individual with a disability as defined in 
                paragraph (20)(A)).
                    ``(C) Assistive technology service.--The term 
                `assistive technology service' has the meaning given 
                such term in section 3 of the Assistive Technology Act 
                of 1998, except that the reference in such section--
                          ``(i) to the term `individual with a 
                      disability' shall be deemed to mean an individual 
                      with a disability, as defined in paragraph 
                      (20)(A); and
                          ``(ii) to the term `individuals with 
                      disabilities' shall be deemed to mean more than 1 
                      such individual.'';
            (3) by redesignating paragraph (5) as paragraph (4);
            (4) in paragraph (4), as redesignated by paragraph (3)--
                    (A) by redesignating subparagraphs (O) through (Q) 
                as subparagraphs (P) through (R), respectively;
                    (B) by inserting after subparagraph (N) the 
                following:
                    ``(O) customized employment;''; and
                    (C) in subparagraph (R), as redesignated by 
                subparagraph (A) of this paragraph, by striking ``(P)'' 
                and inserting ``(Q)'';
            (5) by inserting before paragraph (6) the following:
            ``(5) Competitive integrated employment.--The term 
        `competitive integrated employment' means work that is performed 
        on a full-time or part-time basis (including self-employment)--
                    ``(A) for which an individual--
                          ``(i) is compensated at a rate that--
                                    ``(I)(aa) shall be not less than the 
                                higher of the rate specified in section 
                                6(a)(1) of the Fair Labor Standards Act 
                                of 1938 (29 U.S.C. 206(a)(1)) or the 
                                rate specified in the applicable State 
                                or local minimum wage law; and
                                    ``(bb) is not less than the 
                                customary rate paid by the employer for 
                                the same or similar work performed by 
                                other employees who are not individuals 
                                with disabilities, and who are similarly 
                                situated in similar occupations by the 
                                same employer and who have similar 
                                training, experience, and skills; or
                                    ``(II) in the case of an individual 
                                who is self-employed, yields an income 
                                that is comparable to the income 
                                received by other individuals who are 
                                not individuals with disabilities, and 
                                who are self-employed in similar 
                                occupations or on similar tasks and who 
                                have similar training, experience, and 
                                skills; and
                          ``(ii) is eligible for the level of benefits 
                      provided to other employees;
                    ``(B) that is at a location where the employee 
                interacts with other persons who are not individuals 
                with disabilities (not including supervisory personnel 
                or individuals who are providing services to such 
                employee) to the same extent that individuals who are 
                not individuals with disabilities and who are in 
                comparable positions interact with other persons; and

[[Page 128 STAT. 1634]]

                    ``(C) that, as appropriate, presents opportunities 
                for advancement that are similar to those for other 
                employees who are not individuals with disabilities and 
                who have similar positions.'';
            (6) in paragraph (6)(B), by striking ``includes'' and all 
        that follows through ``fees'' and inserting ``includes 
        architects' fees'';
            (7) by inserting after paragraph (6) the following:
            ``(7) Customized employment.--The term `customized 
        employment' means competitive integrated employment, for an 
        individual with a significant disability, that is based on an 
        individualized determination of the strengths, needs, and 
        interests of the individual with a significant disability, is 
        designed to meet the specific abilities of the individual with a 
        significant disability and the business needs of the employer, 
        and is carried out through flexible strategies, such as--
                    ``(A) job exploration by the individual;
                    ``(B) working with an employer to facilitate 
                placement, including--
                          ``(i) customizing a job description based on 
                      current employer needs or on previously 
                      unidentified and unmet employer needs;
                          ``(ii) developing a set of job duties, a work 
                      schedule and job arrangement, and specifics of 
                      supervision (including performance evaluation and 
                      review), and determining a job location;
                          ``(iii) representation by a professional 
                      chosen by the individual, or self-representation 
                      of the individual, in working with an employer to 
                      facilitate placement; and
                          ``(iv) providing services and supports at the 
                      job location.'';
            (8) in paragraph (11)--
                    (A) in subparagraph (C)--
                          (i) by inserting ``of Education'' after 
                      ``Secretary''; and
                          (ii) by inserting ``customized employment,'' 
                      before ``self-employment,'';
            (9) in paragraph (12), by inserting ``of Education'' after 
        ``Secretary'' each place it appears;
            (10) in paragraph (14)(C), by inserting ``of Education'' 
        after ``Secretary'';
            (11) in paragraph (17)--
                    (A) in subparagraph (C), by striking ``and'' at the 
                end;
                    (B) in subparagraph (D), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(E) services that--
                          ``(i) facilitate the transition of individuals 
                      with significant disabilities from nursing homes 
                      and other institutions to home and community-based 
                      residences, with the requisite supports and 
                      services;
                          ``(ii) provide assistance to individuals with 
                      significant disabilities who are at risk of 
                      entering institutions so that the individuals may 
                      remain in the community; and
                          ``(iii) facilitate the transition of youth who 
                      are individuals with significant disabilities, who 
                      were

[[Page 128 STAT. 1635]]

                      eligible for individualized education programs 
                      under section 614(d) of the Individuals with 
                      Disabilities Education Act (20 U.S.C. 1414(d)), 
                      and who have completed their secondary education 
                      or otherwise left school, to postsecondary 
                      life.'';
            (12) in paragraph (18), by striking ``term'' and all that 
        follows through ``includes--'' and inserting ``term `independent 
        living services' includes--'';
            (13) in paragraph (19)--
                    (A) in subparagraph (A), by inserting before the 
                period the following: ``and includes a Native and a 
                descendant of a Native, as such terms are defined in 
                subsections (b) and (r) of section 3 of the Alaska 
                Native Claims Settlement Act (43 U.S.C. 1602)''; and
                    (B) in subparagraph (B), by inserting before the 
                period the following: ``and a tribal organization (as 
                defined in section 4(l) of the Indian Self-Determination 
                and Education Assistance Act (25 U.S.C. 450b(l)))'';
            (14) in paragraph (23), by striking ``section 101'' and 
        inserting ``section 102'';
            (15) by striking paragraph (25) and inserting the following:
            ``(25) Local workforce development board.--The term `local 
        workforce development board' means a local board, as defined in 
        section 3 of the Workforce Innovation and Opportunity Act.'';
            (16) by striking paragraph (37);
            (17) by redesignating paragraphs (29) through (39) as 
        paragraphs (31) through (36), and (38) through (41), 
        respectively;
            (18) by inserting after paragraph (28) the following:
            ``(30) Pre-employment transition services.--The term `pre-
        employment transition services' means services provided in 
        accordance with section 113.'';
            (19) by striking paragraph (33), as redesignated by 
        paragraph (17), and inserting the following:
            ``(33) Secretary.--Unless where the context otherwise 
        requires, the term `Secretary'--
                    ``(A) used in title I, III, IV, V, VI, or chapter 2 
                of title VII, means the Secretary of Education; and
                    ``(B) used in title II or chapter 1 of title VII, 
                means the Secretary of Health and Human Services.'';
            (20) by striking paragraphs (35) and (36), as redesignated 
        by paragraph (17), and inserting the following:
            ``(35) State workforce development board.--The term `State 
        workforce development board' means a State board, as defined in 
        section 3 of the Workforce Innovation and Opportunity Act.
            ``(36) Statewide workforce development system.--The term 
        `statewide workforce development system' means a workforce 
        development system, as defined in section 3 of the Workforce 
        Innovation and Opportunity Act.'';
            (21) by inserting after that paragraph (36) the following:
            ``(37) Student with a disability.--
                    ``(A) In general.--The term `student with a 
                disability' means an individual with a disability who--
                          ``(i)(I)(aa) is not younger than the earliest 
                      age for the provision of transition services under 
                      section

[[Page 128 STAT. 1636]]

                      614(d)(1)(A)(i)(VIII) of the Individuals with 
                      Disabilities Education Act (20 U.S.C. 
                      1414(d)(1)(A)(i)(VIII)); or
                          ``(bb) if the State involved elects to use a 
                      lower minimum age for receipt of pre-employment 
                      transition services under this Act, is not younger 
                      than that minimum age; and
                          ``(II)(aa) is not older than 21 years of age; 
                      or
                          ``(bb) if the State law for the State provides 
                      for a higher maximum age for receipt of services 
                      under the Individuals with Disabilities Education 
                      Act (20 U.S.C. 1400 et seq.), is not older than 
                      that maximum age; and
                          ``(ii)(I) is eligible for, and receiving, 
                      special education or related services under part B 
                      of the Individuals with Disabilities Education Act 
                      (20 U.S.C. 1411 et seq.); or
                          ``(II) is an individual with a disability, for 
                      purposes of section 504.
                    ``(B) Students with disabilities.--The term 
                `students with disabilities' means more than 1 student 
                with a disability.'';
            (22) by striking paragraphs (38) and (39), as redesignated 
        by paragraph (17), and inserting the following:
            ``(38) Supported employment.--The term `supported 
        employment' means competitive integrated employment, including 
        customized employment, or employment in an integrated work 
        setting in which individuals are working on a short-term basis 
        toward competitive integrated employment, that is individualized 
        and customized consistent with the strengths, abilities, 
        interests, and informed choice of the individuals involved, for 
        individuals with the most significant disabilities--
                    ``(A)(i) for whom competitive integrated employment 
                has not historically occurred; or
                    ``(ii) for whom competitive integrated employment 
                has been interrupted or intermittent as a result of a 
                significant disability; and
                    ``(B) who, because of the nature and severity of 
                their disability, need intensive supported employment 
                services and extended services after the transition 
                described in paragraph (13)(C), in order to perform the 
                work involved.
            ``(39) Supported employment services.--The term `supported 
        employment services' means ongoing support services, including 
        customized employment, needed to support and maintain an 
        individual with a most significant disability in supported 
        employment, that--
                    ``(A) are provided singly or in combination and are 
                organized and made available in such a way as to assist 
                an eligible individual to achieve competitive integrated 
                employment;
                    ``(B) are based on a determination of the needs of 
                an eligible individual, as specified in an 
                individualized plan for employment; and
                    ``(C) are provided by the designated State unit for 
                a period of not more than 24 months, except that period 
                may be extended, if necessary, in order to achieve the

[[Page 128 STAT. 1637]]

                employment outcome identified in the individualized plan 
                for employment.'';
            (23) in paragraph (41), as redesignated by paragraph (17), 
        by striking ``as defined in section 101 of the Workforce 
        Investment Act of 1998'' and inserting ``as defined in section 3 
        of the Workforce Innovation and Opportunity Act''; and
            (24) by inserting after paragraph (41), as redesignated by 
        paragraph (17), the following:
            ``(42) Youth with a disability.--
                    ``(A) In general.--The term `youth with a 
                disability' means an individual with a disability who--
                          ``(i) is not younger than 14 years of age; and
                          ``(ii) is not older than 24 years of age.
                    ``(B) Youth with disabilities.--The term `youth with 
                disabilities' means more than 1 youth with a 
                disability.''.
SEC. 405. ADMINISTRATION OF THE ACT.

    (a)  Promulgation.--Section 8(a)(2) (29 U.S.C. 706(a)(2)) is amended 
by inserting ``of Education'' after ``Secretary''.
    (b) Privacy.--Section 11 (29 U.S.C. 708) is amended--
            (1) by inserting ``(a)'' before ``The provisions''; and
            (2) by adding at the end the following:

    ``(b) <<NOTE: Applicability.>>  Section 501 of the Workforce 
Innovation and Opportunity Act shall apply, as specified in that 
section, to amendments to this Act that were made by the Workforce 
Innovation and Opportunity Act.''.

    (c) Administration.--Section 12 (29 U.S.C. 709) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                          (i) by striking ``(1)'' and inserting 
                      ``(1)(A)''; and
                          (ii) by adding at the end the following:
                    ``(B) provide technical assistance to the designated 
                State units on developing successful partnerships with 
                local and multi-State businesses in an effort to 
                increase the employment of individuals with 
                disabilities;
                    ``(C) provide technical assistance to providers and 
                organizations on developing self-employment 
                opportunities and outcomes for individuals with 
                disabilities; and
                    ``(D) provide technical assistance to entities 
                carrying out community rehabilitation programs to build 
                their internal capacity to provide individualized 
                services and supports leading to competitive integrated 
                employment, and to transition individuals with 
                disabilities away from nonintegrated settings;''; and
                    (B) in paragraph (2), by striking ``, centers for 
                independent living,'';
            (2) in subsection (c), by striking ``Commissioner'' the 
        first place it appears and inserting ``Secretary of Education'';
            (3) in subsection (d), by inserting ``of Education'' after 
        ``Secretary'';
            (4) in subsection (e)--
                    (A) by striking ``Rehabilitation Act Amendments of 
                1998'' each place it appears and inserting ``Workforce 
                Innovation and Opportunity Act''; and
                    (B) by inserting ``of Education'' after 
                ``Secretary'';
            (5) in subsection (f), by inserting ``of Education'' after 
        ``Secretary'';

[[Page 128 STAT. 1638]]

            (6)(A) in subsection (c), by striking ``(c)'' and inserting 
        ``(c)(1)'';
            (B) in subsection (d), by striking ``(d)'' and inserting 
        ``(d)(1)'';
            (C) in subsection (e), by striking ``(e)'' and inserting 
        ``(2)'';
            (D) in subsection (f), by striking ``(f)'' and inserting 
        ``(2)''; and
            (E) by moving paragraph (2) (as redesignated by subparagraph 
        (D)) to the end of subsection (c); and
            (7) by inserting after subsection (d) the following:

    ``(e)(1) The Administrator of the Administration for Community 
Living (referred to in this subsection as the `Administrator') may carry 
out the authorities and shall carry out the responsibilities of the 
Commissioner described in paragraphs (1)(A) and (2) through (4) of 
subsection (a), and subsection (b), except that, for purposes of 
applying subsections (a) and (b), a reference in those subsections--
            ``(A) to facilitating meaningful and effective participation 
        shall be considered to be a reference to facilitating meaningful 
        and effective collaboration with independent living programs, 
        and promoting a philosophy of independent living for individuals 
        with disabilities in community activities; and
            ``(B) to training for personnel shall be considered to be a 
        reference to training for the personnel of centers for 
        independent living and Statewide Independent Living Councils.

    ``(2) The Secretary of Health and Human Services may carry out the 
authorities and shall carry out the responsibilities of the Secretary of 
Education described in subsections (c) and (d).
    ``(f)(1) In subsections (a) through (d), a reference to `this Act' 
means a provision of this Act that the Secretary of Education has 
authority to carry out; and
    ``(2) In subsection (e), for purposes of applying subsections (a) 
through (d), a reference in those subsections to `this Act' means a 
provision of this Act that the Secretary of Health and Human Services 
has authority to carry out.''.
SEC. 406. REPORTS.

    Section 13 (29 U.S.C. 710) is amended--
            (1) in section (c)--
                    (A) by striking ``(c)'' and inserting ``(c)(1)''; 
                and
                    (B) in the second sentence, by striking ``section 
                136(d) of the Workforce Investment Act of 1998'' and 
                inserting ``section 116(d)(2) of the Workforce 
                Innovation and Opportunity Act''; and
            (2) by adding at the end the following:

    ``(d) <<NOTE: Public information.>>  The Commissioner shall ensure 
that the report described in this section is made publicly available in 
a timely manner, including through electronic means, in order to inform 
the public about the administration and performance of programs under 
this Act.''.
SEC. 407. EVALUATION AND INFORMATION.

    (a) Evaluation.--Section 14 (29 U.S.C. 711) is amended--
            (1) by inserting ``of Education'' after ``Secretary'' each 
        place it appears;
            (2) in subsection (f)(2), by inserting ``competitive'' 
        before ``integrated employment'';
            (3)(A) in subsection (b), by striking ``(b)'' and inserting 
        ``(b)(1)'';

[[Page 128 STAT. 1639]]

            (B) in subsection (c), by striking ``(c)'' and inserting 
        ``(2)'';
            (C) in subsection (d), by striking ``(d)'' and inserting 
        ``(3)''; and
            (D) by redesignating subsections (e) and (f) as subsections 
        (c) and (d), respectively;
            (4) by inserting after subsection (d), as redesignated by 
        paragraph (3)(D), the following:

    ``(e)(1) The Secretary of Health and Human Services may carry out 
the authorities and shall carry out the responsibilities of the 
Secretary of Education described in subsections (a) and (b).
    ``(2) The Administrator of the Administration for Community Living 
may carry out the authorities and shall carry out the responsibilities 
of the Commissioner described in subsections (a) and (d)(1), except 
that, for purposes of applying those subsections, a reference in those 
subsections to exemplary practices shall be considered to be a reference 
to exemplary practices concerning independent living services and 
centers for independent living.
    ``(f)(1) In subsections (a) through (d), a reference to `this Act' 
means a provision of this Act that the Secretary of Education has 
authority to carry out; and
    ``(2) In subsection (e), for purposes of applying subsections (a), 
(b), and (d), a reference in those subsections to `this Act' means a 
provision of this Act that the Secretary of Health and Human Services 
has authority to carry out.''.
    (b) Information.--Section 15 (29 U.S.C. 712) is amended--
            (1) in subsection (a)--
                    (A) by inserting ``of Education'' after 
                ``Secretary'' each place it appears; and
                    (B) in paragraph (1), by striking ``State workforce 
                investment boards'' and inserting ``State workforce 
                development boards''; and
            (2) in subsection (b), by striking ``Secretary'' and 
        inserting ``Secretary of Education''.
SEC. 408. CARRYOVER.

    Section 19(a)(1) (29 U.S.C. 716(a)(1)) is amended by striking ``part 
B of title VI'' and inserting ``title VI''.
SEC. 409. TRADITIONALLY UNDERSERVED POPULATIONS.

    Section 21 (29 U.S.C. 718) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                          (i) in the first sentence, by striking 
                      ``racial'' and inserting ``demographic'';
                          (ii) in the second sentence--
                                    (I) by striking ``rate of increase'' 
                                the first place it appears and inserting 
                                ``percentage increase from 2000 to 
                                2010'';
                                    (II) by striking ``is 3.2'' and 
                                inserting ``was 9.7'';
                                    (III) by striking ``rate of 
                                increase'' and inserting ``percentage 
                                increase'';
                                    (IV) by striking ``is much'' and 
                                inserting ``was much'';
                                    (V) by striking ``38.6'' and 
                                inserting ``43.0'';
                                    (VI) by striking ``14.6'' and 
                                inserting ``12.3'';
                                    (VII) by striking ``40.1'' and 
                                inserting ``43.2''; and

[[Page 128 STAT. 1640]]

                                    (VIII) by striking ``and other 
                                ethnic groups''; and
                          (iii) by striking the last sentence; and
                    (B) in paragraph (2), by striking the second and 
                third sentences and inserting the following: ``In 2011--
                    ``(A) among Americans ages 16 through 64, the rate 
                of disability was 12.1 percent;
                    ``(B) among African-Americans in that age range, the 
                disability rate was more than twice as high, at 27.1 
                percent; and
                    ``(C) for American Indians and Alaska Natives in the 
                same age range, the disability rate was also more than 
                twice as high, at 27.0 percent.'';
            (2) in subsection (b)(1), by striking ``National Institute 
        on Disability and Rehabilitation Research'' and inserting 
        ``National Institute on Disability, Independent Living, and 
        Rehabilitation Research''; and
            (3) in subsection (c), by striking ``Director'' and 
        inserting ``Director of the National Institute on Disability, 
        Independent Living, and Rehabilitation Research''.

             Subtitle B--Vocational Rehabilitation Services

SEC. 411. DECLARATION OF POLICY; AUTHORIZATION OF APPROPRIATIONS.

    (a) Findings; Purpose; Policy.--Section 100(a) (29 U.S.C. 720(a)) is 
amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (C), by striking ``integrated'' 
                and inserting ``competitive integrated employment'';
                    (B) in subparagraph (D)(iii), by striking ``medicare 
                and medicaid'' and inserting ``Medicare and Medicaid'';
                    (C) in subparagraph (F), by striking ``investment'' 
                and inserting ``development''; and
                    (D) in subparagraph (G)--
                          (i) by striking ``workforce investment 
                      systems'' and inserting ``workforce development 
                      systems''; and
                          (ii) by striking ``workforce investment 
                      activities'' and inserting ``workforce development 
                      activities'';
            (2) in paragraph (2)--
                    (A) in subparagraph (A), by striking ``workforce 
                investment system'' and inserting ``workforce 
                development system''; and
                    (B) in subparagraph (B), by striking ``and informed 
                choice,'' and inserting ``informed choice, and economic 
                self-sufficiency,''; and
            (3) in paragraph (3)--
                    (A) in subparagraph (B), by striking ``gainful 
                employment in integrated settings'' and inserting 
                ``competitive integrated employment''; and
                    (B) in subparagraph (E), by inserting ``should'' 
                before ``facilitate''.

    (b) Authorization of Appropriations.--Section 100(b)(1) (29 U.S.C. 
720(b)(1)) is amended by striking ``such sums as may be

[[Page 128 STAT. 1641]]

necessary for fiscal years 1999 through 2003'' and inserting 
``$3,302,053,000 for each of the fiscal years 2015 through 2020''.
SEC. 412. STATE PLANS.

    (a) Plan Requirements.--Section 101(a) (29 U.S.C. 721(a)) is 
amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by striking ``to 
                participate'' and all that follows and inserting ``to 
                receive funds under this title for a fiscal year, a 
                State shall submit, and have approved by the Secretary 
                and the Secretary of Labor, a unified State plan in 
                accordance with section 102, or a combined State plan in 
                accordance with section 103, of the Workforce Innovation 
                and Opportunity Act. The unified or combined State plan 
                shall include, in the portion of the plan described in 
                section 102(b)(2)(D) of such Act (referred to in this 
                subsection as the `vocational rehabilitation services 
                portion'), the provisions of a State plan for vocational 
                rehabilitation services, described in this 
                subsection.''; and
                    (B) in subparagraph (B)--
                          (i) by striking ``in the State plan for 
                      vocational rehabilitation services,'' and 
                      inserting ``as part of the vocational 
                      rehabilitation services portion of the unified or 
                      combined State plan submitted in accordance with 
                      subparagraph (A),''; and
                          (ii) by striking ``Rehabilitation Act 
                      Amendments of 1998'' and inserting ``Workforce 
                      Innovation and Opportunity Act''; and
                    (C) in subparagraph (C)--
                          (i) by striking ``The State plan shall remain 
                      in effect subject to the submission of such 
                      modifications'' and inserting ``The vocational 
                      rehabilitation services portion of the unified or 
                      combined State plan submitted in accordance with 
                      subparagraph (A) shall remain in effect until the 
                      State submits and receives approval of a new State 
                      plan in accordance with subparagraph (A), or until 
                      the submission of such modifications''; and
                          (ii) by striking ``, until the State submits 
                      and receives approval of a new State plan'';
            (2) in paragraph (2)--
                    (A) in subparagraph (A), by striking ``The State 
                plan'' and inserting ``The State plan for vocational 
                rehabilitation services''; and
                    (B) in subparagraph (B)(ii)--
                          (i) in subclause (II), by inserting ``who is 
                      responsible for the day-to-day operation of the 
                      vocational rehabilitation program'' before the 
                      semicolon;
                          (ii) in subclause (III), by striking ``and'' 
                      at the end;
                          (iii) in subclause (IV), by striking the 
                      period and inserting ``; and''; and
                          (iv) by adding at the end the following:
                                    ``(V) has the sole authority and 
                                responsibility within the designated 
                                State agency described in subparagraph 
                                (A) to expend funds made available

[[Page 128 STAT. 1642]]

                                under this title in a manner that is 
                                consistent with the purposes of this 
                                title.'';
            (3) in paragraph (5)--
                    (A) in subparagraph (C), by striking ``and'' at the 
                end;
                    (B) by redesignating subparagraph (D) as 
                subparagraph (E); and
                    (C) by inserting after subparagraph (C) the 
                following:
                    ``(D) notwithstanding subparagraph (C), permit the 
                State, in its discretion, to elect to serve eligible 
                individuals (whether or not receiving vocational 
                rehabilitation services) who require specific services 
                or equipment to maintain employment; and'';
            (4) in paragraph (7)--
                    (A) in subparagraph (A)(v)--
                          (i) in subclause (I), after ``rehabilitation 
                      technology'' insert the following: ``, including 
                      training implemented in coordination with entities 
                      carrying out State programs under section 4 of the 
                      Assistive Technology Act of 1998 (29 U.S.C. 
                      3003)''; and
                          (ii) in subclause (II), by striking 
                      ``Rehabilitation Act Amendments of 1998'' and 
                      inserting ``Workforce Innovation and Opportunity 
                      Act''; and
                    (B) in subparagraph (B), by striking clause (ii) and 
                inserting the following:
                          ``(ii) the establishment and maintenance of 
                      education and experience requirements, to ensure 
                      that the personnel have a 21st century 
                      understanding of the evolving labor force and the 
                      needs of individuals with disabilities, including 
                      requirements for--
                                    ``(I)(aa) attainment of a 
                                baccalaureate degree in a field of study 
                                reasonably related to vocational 
                                rehabilitation, to indicate a level of 
                                competency and skill demonstrating basic 
                                preparation in a field of study such as 
                                vocational rehabilitation counseling, 
                                social work, psychology, disability 
                                studies, business administration, human 
                                resources, special education, supported 
                                employment, customized employment, 
                                economics, or another field that 
                                reasonably prepares individuals to work 
                                with consumers and employers; and
                                    ``(bb) demonstrated paid or unpaid 
                                experience, for not less than 1 year, 
                                consisting of--
                                            ``(AA) direct work with 
                                        individuals with disabilities in 
                                        a setting such as an independent 
                                        living center;
                                            ``(BB) direct service or 
                                        advocacy activities that provide 
                                        such individual with experience 
                                        and skills in working with 
                                        individuals with disabilities; 
                                        or
                                            ``(CC) direct experience as 
                                        an employer, as a small business 
                                        owner or operator, or in self-
                                        employment, or other experience 
                                        in human resources, recruitment, 
                                        or experience in supervising 
                                        employees, training, or other 
                                        activities that provide 
                                        experience in competitive 
                                        integrated employment 
                                        environments; or

[[Page 128 STAT. 1643]]

                                    ``(II) attainment of a master's or 
                                doctoral degree in a field of study such 
                                as vocational rehabilitation counseling, 
                                law, social work, psychology, disability 
                                studies, business administration, human 
                                resources, special education, 
                                management, public administration, or 
                                another field that reasonably provides 
                                competence in the employment sector, in 
                                a disability field, or in both business-
                                related and rehabilitation-related 
                                fields; and'';
            (5) in paragraph (8)--
                    (A) in subparagraph (A)(i)--
                          (i) by inserting ``an accommodation or 
                      auxiliary aid or service or'' after ``prior to 
                      providing''; and
                          (ii) by striking ``(5)(D)'' and inserting 
                      ``(5)(E)'';
                    (B) in subparagraph (B)--
                          (i) in the matter preceding clause (i)--
                                    (I) by striking ``medicaid'' and 
                                inserting ``Medicaid'';
                                    (II) by striking ``workforce 
                                investment system'' and inserting 
                                ``workforce development system'';
                                    (III) by striking ``(5)(D)'' and 
                                inserting ``(5)(E)'';
                                    (IV) by inserting ``and, if 
                                appropriate, accommodations or auxiliary 
                                aids and services,'' before ``that are 
                                included''; and
                                    (V) by striking ``provision of such 
                                vocational rehabilitation services'' and 
                                inserting ``provision of such vocational 
                                rehabilitation services (including, if 
                                appropriate, accommodations or auxiliary 
                                aids and services)''; and
                          (ii) in clause (iv)--
                                    (I) by striking ``(5)(D)'' and 
                                inserting ``(5)(E)''; and
                                    (II) by inserting ``, and 
                                accommodations or auxiliary aids and 
                                services'' before the period; and
                    (C) in subparagraph (C)(i), by striking ``(5)(D)'' 
                and inserting ``(5)(E)'';
            (6) in paragraph (10)--
                    (A) in subparagraph (B), by striking ``annual'' and 
                all that follows through ``of 1998'' and inserting 
                ``annual reporting of information, on eligible 
                individuals receiving the services, that is necessary to 
                assess the State's performance on the standards and 
                indicators described in section 106(a)'';
                    (B) in subparagraph (C)--
                          (i) in the matter preceding clause (i), by 
                      inserting ``, from each State,'' after 
                      ``additional data'';
                          (ii) by striking clause (i) and inserting:
                          ``(i) the number of applicants and the number 
                      of individuals determined to be eligible or 
                      ineligible for the program carried out under this 
                      title, including the number of individuals 
                      determined to be ineligible (disaggregated by type 
                      of disability and age);'';
                          (iii) in clause (ii)--
                                    (I) in subclause (I), by striking 
                                ``(5)(D)'' and inserting ``(5)(E)'';
                                    (II) in subclause (II), by striking 
                                ``and'' at the end; and

[[Page 128 STAT. 1644]]

                                    (III) by adding at the end the 
                                following:
                                    ``(IV) the number of individuals 
                                with open cases (disaggregated by those 
                                who are receiving training and those who 
                                are in postsecondary education), and the 
                                type of services the individuals are 
                                receiving (including supported 
                                employment);
                                    ``(V) the number of students with 
                                disabilities who are receiving pre-
                                employment transition services under 
                                this title: and
                                    ``(VI) the number of individuals 
                                referred to State vocational 
                                rehabilitation programs by one-stop 
                                operators (as defined in section 3 of 
                                the Workforce Innovation and Opportunity 
                                Act), and the number of individuals 
                                referred to such one-stop operators by 
                                State vocational rehabilitation 
                                programs;''; and
                          (iv) in clause (iv)(I), by inserting before 
                      the semicolon the following: ``and, for those who 
                      achieved employment outcomes, the average length 
                      of time to obtain employment'';
                    (C) in subparagraph (D)(i), by striking ``title I of 
                the Workforce Investment Act of 1998'' and inserting 
                ``title I of the Workforce Innovation and Opportunity 
                Act'';
                    (D) in subparagraph (E)(ii), by striking ``of the 
                State'' and all that follows and inserting ``of the 
                State in meeting the standards and indicators 
                established pursuant to section 106.''; and
                    (E) by adding at the end the following:
                    ``(G) Rules for reporting of data.--The 
                disaggregation of data under this Act shall not be 
                required within a category if the number of individuals 
                in a category is insufficient to yield statistically 
                reliable information, or if the results would reveal 
                personally identifiable information about an individual.
                    ``(H) Comprehensive report.--The State plan shall 
                specify that the Commissioner will provide an annual 
                comprehensive report that includes the reports and data 
                required under this section, as well as a summary of the 
                reports and data, for each fiscal year. The Commissioner 
                shall submit the report to the Committee on Education 
                and the Workforce of the House of Representatives, the 
                Committee on Appropriations of the House of 
                Representatives, the Committee on Health, Education, 
                Labor, and Pensions of the Senate, and the Committee on 
                Appropriations of the Senate, not later than 90 days 
                after the end of the fiscal year involved.'';
            (7) in paragraph (11)--
                    (A) in subparagraph (A)--
                          (i) in the subparagraph header, by striking 
                      ``workforce investment systems'' and inserting 
                      ``workforce development systems'';
                          (ii) in the matter preceding clause (i), by 
                      striking ``workforce investment system'' and 
                      inserting ``workforce development system'';
                          (iii) in clause (i)(II)--
                                    (I) by striking ``investment'' and 
                                inserting ``development''; and

[[Page 128 STAT. 1645]]

                                    (II) by inserting ``(including 
                                programmatic accessibility and physical 
                                accessibility)'' after ``program 
                                accessibility'';
                          (iv) in clause (ii), by striking ``workforce 
                      investment system'' and inserting ``workforce 
                      development system''; and
                          (v) in clause (v), by striking ``workforce 
                      investment system'' and inserting ``workforce 
                      development system'';
                    (B) in subparagraph (B), by striking ``workforce 
                investment system'' and inserting ``workforce 
                development system'';
                    (C) in subparagraph (C)--
                          (i) by inserting ``the State programs carried 
                      out under section 4 of the Assistive Technology 
                      Act of 1998 (29 U.S.C. 3003),'' after 
                      ``including'';
                          (ii) by inserting ``, noneducational agencies 
                      serving out-of-school youth,'' after 
                      ``Agriculture''; and
                          (iii) by striking ``such agencies and 
                      programs'' and inserting ``such Federal, State, 
                      and local agencies and programs''; and
                          (iv) by striking ``workforce investment 
                      system'' and inserting ``workforce development 
                      system'';
                    (D) in subparagraph (D)--
                          (i) in the matter preceding clause (i), by 
                      inserting ``, including pre-employment transition 
                      services,'' before ``under this title'';
                          (ii) in clause (i), by inserting ``, which may 
                      be provided using alternative means for meeting 
                      participation (such as video conferences and 
                      conference calls),'' after ``consultation and 
                      technical assistance''; and
                          (iii) in clause (ii), by striking 
                      ``completion'' and inserting ``implementation'';
                    (E) by redesignating subparagraphs (E) and (F) as 
                subparagraphs (F) and (H), respectively;
                    (F) by inserting after subparagraph (D) the 
                following:
                    ``(E) Coordination with employers.--The State plan 
                shall describe how the designated State unit will work 
                with employers to identify competitive integrated 
                employment opportunities and career exploration 
                opportunities, in order to facilitate the provision of--
                          ``(i) vocational rehabilitation services; and
                          ``(ii) transition services for youth with 
                      disabilities and students with disabilities, such 
                      as pre-employment transition services.'';
                    (G) in subparagraph (F), as redesignated by 
                subparagraph (E) of this paragraph--
                          (i) by inserting ``chapter 1 of'' after ``part 
                      C of''; and
                          (ii) by inserting ``, as appropriate'' before 
                      the period;
                    (H) by inserting after subparagraph (F), as 
                redesignated by subparagraph (E) of this paragraph, the 
                following:
                    ``(G) Cooperative agreement regarding individuals 
                eligible for home and community-based waiver programs.--
                The State plan shall include an assurance that

[[Page 128 STAT. 1646]]

                the designated State unit has entered into a formal 
                cooperative agreement with the State agency responsible 
                for administering the State Medicaid plan under title 
                XIX of the Social Security Act (42 U.S.C. 1396 et seq.) 
                and the State agency with primary responsibility for 
                providing services and supports for individuals with 
                intellectual disabilities and individuals with 
                developmental disabilities, with respect to the delivery 
                of vocational rehabilitation services, including 
                extended services, for individuals with the most 
                significant disabilities who have been determined to be 
                eligible for home and community-based services under a 
                Medicaid waiver, Medicaid State plan amendment, or other 
                authority related to a State Medicaid program.'';
                    (I) in subparagraph (H), as redesignated by 
                subparagraph (E) of this paragraph--
                          (i) in clause (ii)--
                                    (I) by inserting ``on or'' before 
                                ``near''; and
                                    (II) by striking ``and'' at the end;
                          (ii) by redesignating clause (iii) as clause 
                      (iv); and
                          (iii) by inserting after clause (ii) the 
                      following:
                          ``(iii) strategies for the provision of 
                      transition planning, by personnel of the 
                      designated State unit, the State educational 
                      agency, and the recipient of funds under part C, 
                      that will facilitate the development and approval 
                      of the individualized plans for employment under 
                      section 102; and''; and
                    (J) by adding at the end the following:
                    ``(I) Coordination with assistive technology 
                programs.--The State plan shall include an assurance 
                that the designated State unit, and the lead agency and 
                implementing entity (if any) designated by the Governor 
                of the State under section 4 of the Assistive Technology 
                Act of 1998 (29 U.S.C. 3003), have developed working 
                relationships and will enter into agreements for the 
                coordination of their activities, including the referral 
                of individuals with disabilities to programs and 
                activities described in that section.
                    ``(J) Coordination with ticket to work and self-
                sufficiency program.--The State plan shall include an 
                assurance that the designated State unit will coordinate 
                activities with any other State agency that is 
                functioning as an employment network under the Ticket to 
                Work and Self-Sufficiency Program established under 
                section 1148 of the Social Security Act (42 U.S.C. 
                1320b-19).
                    ``(K) Interagency cooperation.--The State plan shall 
                describe how the designated State agency or agencies (if 
                more than 1 agency is designated under paragraph (2)(A)) 
                will collaborate with the State agency responsible for 
                administering the State Medicaid plan under title XIX of 
                the Social Security Act (42 U.S.C. 1396 et seq.), the 
                State agency responsible for providing services for 
                individuals with developmental disabilities, and the 
                State agency responsible for providing mental health 
                services, to develop opportunities for community-based 
                employment in integrated settings, to the greatest 
                extent practicable.'';
            (8) in paragraph (14)--

[[Page 128 STAT. 1647]]

                    (A) in the paragraph header, by striking ``Annual'' 
                and inserting ``Semiannual'';
                    (B) in subparagraph (A)--
                          (i) by striking ``an annual'' and inserting 
                      ``a semiannual'';
                          (ii) by striking ``has achieved an employment 
                      outcome'' and inserting ``is employed'';
                          (iii) by striking ``achievement of the 
                      outcome'' and all that follows through 
                      ``representative)'' and inserting ``beginning of 
                      such employment, and annually thereafter'';
                          (iv) by striking ``to competitive'' and all 
                      that follows and inserting the following: ``to 
                      competitive integrated employment or training for 
                      competitive integrated employment;'';
                    (C) in subparagraph (B), by striking ``and'' at the 
                end;
                    (D) in subparagraph (C), by striking ``the 
                individuals described'' and all that follows and 
                inserting ``individuals described in subparagraph (A) in 
                attaining competitive integrated employment; and''; and
                    (E) by adding at the end the following:
                    ``(D) <<NOTE: Reports. Deadline.>>  an assurance 
                that the State will report the information generated 
                under subparagraphs (A), (B), and (C), for each of the 
                individuals, to the Administrator of the Wage and Hour 
                Division of the Department of Labor for each fiscal 
                year, not later than 60 days after the end of the fiscal 
                year.'';
            (9) in paragraph (15)--
                    (A) in subparagraph (A)--
                          (i) in clause (i)--
                                    (I) in subclause (II), by striking 
                                ``and'' at the end;
                                    (II) in subclause (III)--
                                            (aa) by striking ``workforce 
                                        investment system'' and 
                                        inserting ``workforce 
                                        development system''; and
                                            (bb) by adding ``and'' at 
                                        the end; and
                                    (III) by adding at the end the 
                                following:
                                    ``(IV) youth with disabilities, and 
                                students with disabilities, including 
                                their need for pre-employment transition 
                                services or other transition 
                                services;'';
                          (ii) by redesignating clauses (ii) and (iii) 
                      as clauses (iii) and (iv), respectively; and
                          (iii) by inserting after clause (i) the 
                      following:
                          ``(ii) include an assessment of the needs of 
                      individuals with disabilities for transition 
                      services and pre-employment transition services, 
                      and the extent to which such services provided 
                      under this Act are coordinated with transition 
                      services provided under the Individuals with 
                      Disabilities Education Act (20 U.S.C. 1400 et 
                      seq.) in order to meet the needs of individuals 
                      with disabilities.'';
                    (B) in subparagraph (B)--
                          (i) in clause (ii)--
                                    (I) by striking ``part B of title 
                                VI'' and inserting ``title VI''; and

[[Page 128 STAT. 1648]]

                                    (II) by striking ``and'' at the end;
                          (ii) by redesignating clause (iii) as clause 
                      (iv); and
                          (iii) by inserting after clause (ii) the 
                      following:
                          ``(iii) the number of individuals who are 
                      eligible for services under this title, but are 
                      not receiving such services due to an order of 
                      selection; and''; and
                    (C) in subparagraph (D)--
                          (i) by redesignating clauses (iii) through (v) 
                      as clauses (iv) through (vi), respectively;
                          (ii) by inserting after clause (ii) the 
                      following:
                          ``(iii) the methods to be used to improve and 
                      expand vocational rehabilitation services for 
                      students with disabilities, including the 
                      coordination of services designed to facilitate 
                      the transition of such students from the receipt 
                      of educational services in school to postsecondary 
                      life (including the receipt of vocational 
                      rehabilitation services under this title, 
                      postsecondary education, employment, and pre-
                      employment transition services);''; and
                          (iii) in clause (vi), as redesignated by 
                      clause (i) of this subparagraph, by striking 
                      ``workforce investment system'' and inserting 
                      ``workforce development system'';
            (10) in paragraph (20), in subparagraphs (A) and (B)(i), by 
        striking ``workforce investment system'' and inserting 
        ``workforce development system'';
            (11) in paragraph (22), by striking ``part B of title VI'' 
        and inserting ``title VI''; and
            (12) by adding at the end the following:
            ``(25) Services for students with disabilities.--The State 
        plan shall provide an assurance that, with respect to students 
        with disabilities, the State--
                    ``(A) has developed and will implement--
                          ``(i) strategies to address the needs 
                      identified in the assessments described in 
                      paragraph (15); and
                          ``(ii) strategies to achieve the goals and 
                      priorities identified by the State, in accordance 
                      with paragraph (15), to improve and expand 
                      vocational rehabilitation services for students 
                      with disabilities on a statewide basis; and
                    ``(B) has developed and will implement strategies to 
                provide pre-employment transition services.
            ``(26) Job growth and development.--The State plan shall 
        provide an assurance describing how the State will utilize 
        initiatives involving in-demand industry sectors or occupations 
        under sections 106(c) and 108 of the Workforce Innovation and 
        Opportunity Act to increase competitive integrated employment 
        opportunities for individuals with disabilities.''.

    (b) Approval.--Section 101(b) (29 U.S.C. 721(b)) is amended to read 
as follows:
    ``(b) Submission; Approval; Modification.--The State plan for 
vocational rehabilitation services shall be subject to--
            ``(1) subsection (c) of section 102 of the Workforce 
        Innovation and Opportunity Act, in a case in which that plan is 
        a portion of the unified State plan described in that section 
        102; and

[[Page 128 STAT. 1649]]

            ``(2) subsection (b), and paragraphs (1), (2), and (3) of 
        subsection (c), of section 103 of such Act in a case in which 
        that State plan for vocational rehabilitation services is a 
        portion of the combined State plan described in that section 
        103.''.

    (c) Construction.--Section 101 (29 U.S.C. 721) is amended by adding 
at the end the following:
    ``(c) Construction.--Nothing in this part shall be construed to 
reduce the obligation under the Individuals with Disabilities Education 
Act (20 U.S.C. 1400 et seq.) of a local educational agency or any other 
agency to provide or pay for any transition services that are also 
considered special education or related services and that are necessary 
for ensuring a free appropriate public education to children with 
disabilities within the State involved.''.
SEC. 413. ELIGIBILITY AND INDIVIDUALIZED PLAN FOR EMPLOYMENT.

    (a) Eligibility.--Section 102(a) (29 U.S.C. 722(a)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by striking ``is an'' and 
                inserting ``has undergone an assessment for determining 
                eligibility and vocational rehabilitation needs and as a 
                result has been determined to be an'';
                    (B) in subparagraph (B), by striking ``or regain 
                employment.'' and inserting ``advance in, or regain 
                employment that is consistent with the individual's 
                strengths, resources, priorities, concerns, abilities, 
                capabilities, interests, and informed choice.''; and
                    (C) by adding at the end the following: ``For 
                purposes of an assessment for determining eligibility 
                and vocational rehabilitation needs under this Act, an 
                individual shall be presumed to have a goal of an 
                employment outcome.'';
            (2) in paragraph (2)--
                    (A) in subparagraph (A)--
                          (i) in the subparagraph header, by striking 
                      ``Demonstration'' and inserting ``Applicants''; 
                      and
                          (ii) by striking ``, unless'' and all that 
                      follows and inserting a period; and
                    (B) in subparagraph (B)--
                          (i) in the subparagraph header, by striking 
                      ``Methods'' and inserting ``Responsibilities'';
                          (ii) in the first sentence--
                                    (I) by striking ``In making the 
                                demonstration required under 
                                subparagraph (A),'' and inserting 
                                ``Prior to determining under this 
                                subsection that an applicant described 
                                in subparagraph (A) is unable to benefit 
                                due to the severity of the individual's 
                                disability or that the individual is 
                                ineligible for vocational rehabilitation 
                                services,''; and
                                    (II) by striking ``, except under'' 
                                and all that follows and inserting a 
                                period; and
                          (iii) in the second sentence, by striking 
                      ``individual or to determine'' and all that 
                      follows and inserting ``individual. In providing 
                      the trial experiences, the designated State unit 
                      shall provide the individual with the opportunity 
                      to try different employment experiences, including 
                      supported employment, and the opportunity to 
                      become employed in competitive integrated 
                      employment.'';

[[Page 128 STAT. 1650]]

            (3) in paragraph (3)(A)(ii), by striking ``outcome from'' 
        and all that follows and inserting ``outcome due to the severity 
        of the individual's disability (as of the date of the 
        determination).''; and
            (4) in paragraph (5)--
                    (A) in the matter preceding subparagraph (A)--
                          (i) by striking ``If an individual'' and 
                      inserting ``If, after the designated State unit 
                      carries out the activities described in paragraph 
                      (2)(B), a review of existing data, and, to the 
                      extent necessary, the assessment activities 
                      described in section 7(2)(A)(ii), an individual''; 
                      and
                          (ii) by striking ``title is determined'' and 
                      all that follows through ``not to be'' and 
                      inserting ``title is determined not to be'';
                    (B) by redesignating subparagraphs (A) through (D) 
                as subparagraphs (B) through (E), respectively;
                    (C) by inserting before subparagraph (B), as 
                redesignated by subparagraph (B) of this paragraph, the 
                following:
                    ``(A) the ineligibility determination shall be an 
                individualized one, based on the available data, and 
                shall not be based on assumptions about broad categories 
                of disabilities;''; and
                    (D) in clause (i) of subparagraph (C), as 
                redesignated by subparagraph (B) of this paragraph, by 
                inserting after ``determination'' the following: ``, 
                including the clear and convincing evidence that forms 
                the basis for the determination of ineligibility''.

    (b) Development of an Individualized Plan for Employment, and 
Related Information.--Section 102(b) (29 U.S.C. 722(b)) is amended--
            (1) in paragraph (1)(A)--
                    (A) by striking ``, to the extent determined to be 
                appropriate by the eligible individual,''; and
                    (B) by inserting ``or, as appropriate, a disability 
                advocacy organization'' after ``counselor'';
            (2) by redesignating paragraphs (2) and (3) as paragraphs 
        (3) and (4), respectively;
            (3) by inserting after paragraph (1) the following:
            ``(2) Individuals desiring to enter the workforce.--For an 
        individual entitled to benefits under title II or XVI of the 
        Social Security Act (42 U.S.C. 401 et seq., 1381 et seq.) on the 
        basis of a disability or blindness, the designated State unit 
        shall provide to the individual general information on 
        additional supports and assistance for individuals with 
        disabilities desiring to enter the workforce, including 
        assistance with benefits planning.'';
            (4) in paragraph (3), as redesignated by paragraph (2) of 
        this subsection--
                    (A) in subparagraph (E)--
                          (i) in clause (i), by striking ``and'' at the 
                      end;
                          (ii) in clause (ii), by striking the period 
                      and inserting ``; and''; and
                          (iii) by adding at the end the following:
                          ``(iii) amended, as necessary, to include the 
                      postemployment services and service providers that 
                      are necessary for the individual to maintain or 
                      regain employment, consistent with the 
                      individual's strengths,

[[Page 128 STAT. 1651]]

                      resources, priorities, concerns, abilities, 
                      capabilities, interests, and informed choice.''; 
                      and
                    (B) by adding at the end the following:
                    ``(F) <<NOTE: Deadline.>>  Timeframe for completing 
                the individualized plan for employment.--The 
                individualized plan for employment shall be developed as 
                soon as possible, but not later than a deadline of 90 
                days after the date of the determination of eligibility 
                described in paragraph (1), unless the designated State 
                unit and the eligible individual agree to an extension 
                of that deadline to a specific date by which the 
                individualized plan for employment shall be 
                completed.''; and
            (5) in paragraph (4), as redesignated by paragraph (2) of 
        this subsection--
                    (A) in subparagraph (A), by striking ``choice of 
                the'' and all that follows and inserting ``choice of the 
                eligible individual, consistent with the general goal of 
                competitive integrated employment (except that in the 
                case of an eligible individual who is a student, the 
                description may be a description of the student's 
                projected postschool employment outcome);'';
                    (B) in subparagraph (B)(i)--
                          (i) by redesignating subclause (II) as 
                      subclause (III); and
                          (ii) by striking subclause (I) and inserting 
                      the following:
                          ``(I) needed to achieve the employment 
                      outcome, including, as appropriate--
                                    ``(aa) the provision of assistive 
                                technology devices and assistive 
                                technology services (including referrals 
                                described in section 103(a)(3) to the 
                                device reutilization programs and 
                                demonstrations described in 
                                subparagraphs (B) and (D) of section 
                                4(e)(2) of the Assistive Technology Act 
                                of 1998 (29 U.S.C. 3003(e)(2)) through 
                                agreements developed under section 
                                101(a)(11)(I); and
                                    ``(bb) personal assistance services 
                                (including training in the management of 
                                such services);
                          ``(II) in the case of a plan for an eligible 
                      individual that is a student, the specific 
                      transition services and supports needed to achieve 
                      the student's employment outcome or projected 
                      postschool employment outcome; and'';
                    (C) in subparagraph (F), by striking ``and'' at the 
                end;
                    (D) in subparagraph (G), by striking the period and 
                inserting ``; and''; and
                    (E) by adding at the end the following:
                    ``(H) for an individual who also is receiving 
                assistance from an employment network under the Ticket 
                to Work and Self-Sufficiency Program established under 
                section 1148 of the Social Security Act (42 U.S.C. 
                1320b-19), a description of how responsibility for 
                service delivery will be divided between the employment 
                network and the designated State unit.''.

    (c) Procedures.--Section 102(c) (29 U.S.C. 722(c)) is amended--

[[Page 128 STAT. 1652]]

            (1) in paragraph (1), by adding at the end the following: 
        ``The procedures shall allow an applicant or an eligible 
        individual the opportunity to request mediation, an impartial 
        due process hearing, or both procedures.'';
            (2) in paragraph (2)(A)--
                    (A) in clause (ii), by striking ``and'' at the end;
                    (B) in clause (iii), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
                          ``(iv) any applicable State limit on the time 
                      by which a request for mediation under paragraph 
                      (4) or a hearing under paragraph (5) shall be 
                      made, and any required procedure by which the 
                      request shall be made.''; and
            (3) in paragraph (5)--
                    (A) by striking subparagraph (A) and inserting the 
                following:
                    ``(A) Officer.--A due process hearing described in 
                paragraph (2) shall be conducted by an impartial hearing 
                officer who, on reviewing the evidence presented, shall 
                issue a written decision based on the provisions of the 
                approved State plan, requirements specified in this Act 
                (including regulations implementing this Act), and State 
                regulations and policies that are consistent with the 
                Federal requirements specified in this title. The 
                officer shall provide the written decision to the 
                applicant or eligible individual, or, as appropriate, 
                the applicant's representative or individual's 
                representative, and to the designated State unit. The 
                impartial hearing officer shall have the authority to 
                render a decision and require actions regarding the 
                applicant's or eligible individual's vocational 
                rehabilitation services under this title.''; and
                    (B) in subparagraph (B), by striking ``in laws'' and 
                inserting ``about Federal laws''.
SEC. 414. VOCATIONAL REHABILITATION SERVICES.

    Section 103 (29 U.S.C. 723) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (13), by striking ``workforce 
                investment system'' and inserting ``workforce 
                development system'';
                    (B) by striking paragraph (15) and inserting the 
                following:
            ``(15) transition services for students with disabilities, 
        that facilitate the transition from school to postsecondary 
        life, such as achievement of an employment outcome in 
        competitive integrated employment, or pre-employment transition 
        services;'';
                    (C) by redesignating paragraphs (17) and (18) as 
                paragraphs (19) and (20), respectively; and
                    (D) by inserting after paragraph (16) the following:
            ``(17) customized employment;
            ``(18) encouraging qualified individuals who are eligible to 
        receive services under this title to pursue advanced training in 
        a science, technology, engineering, or mathematics (including 
        computer science) field, medicine, law, or business;''.
            (2) in subsection (b)--

[[Page 128 STAT. 1653]]

                    (A) in paragraph (2)--
                          (i) in subparagraph (A)--
                                    (I) by striking ``(A)''; and
                                    (II) by striking the second sentence 
                                and inserting ``Such programs shall be 
                                used to provide services described in 
                                this section that promote integration 
                                into the community and that prepare 
                                individuals with disabilities for 
                                competitive integrated employment, 
                                including supported employment and 
                                customized employment.''; and
                          (ii) by striking subparagraph (B);
                    (B) by striking paragraph (5) and inserting the 
                following:
            ``(5) Technical assistance to businesses that are seeking to 
        employ individuals with disabilities.''; and
                    (C) by striking paragraph (6) and inserting the 
                following:
            ``(6) Consultation and technical assistance services to 
        assist State educational agencies and local educational agencies 
        in planning for the transition of students with disabilities 
        from school to postsecondary life, including employment.
            ``(7) Transition services to youth with disabilities and 
        students with disabilities, for which a vocational 
        rehabilitation counselor works in concert with educational 
        agencies, providers of job training programs, providers of 
        services under the Medicaid program under title XIX of the 
        Social Security Act (42 U.S.C. 1396 et seq.), entities 
        designated by the State to provide services for individuals with 
        developmental disabilities, centers for independent living (as 
        defined in section 702), housing and transportation authorities, 
        workforce development systems, and businesses and employers.
            ``(8) The establishment, development, or improvement of 
        assistive technology demonstration, loan, reutilization, or 
        financing programs in coordination with activities authorized 
        under the Assistive Technology Act of 1998 (29 U.S.C. 3001 et 
        seq.) to promote access to assistive technology for individuals 
        with disabilities and employers.
            ``(9) <<NOTE: Applicability.>>  Support (including, as 
        appropriate, tuition) for advanced training in a science, 
        technology, engineering, or mathematics (including computer 
        science) field, medicine, law, or business, provided after an 
        individual eligible to receive services under this title, 
        demonstrates--
                    ``(A) such eligibility;
                    ``(B) previous completion of a bachelor's degree 
                program at an institution of higher education or 
                scheduled completion of such degree program prior to 
                matriculating in the program for which the individual 
                proposes to use the support; and
                    ``(C) acceptance by a program at an institution of 
                higher education in the United States that confers a 
                master's degree in a science, technology, engineering, 
                or mathematics (including computer science) field, a 
                juris doctor degree, a master of business administration 
                degree, or a doctor of medicine degree,

[[Page 128 STAT. 1654]]

        except that the limitations of subsection (a)(5) that apply to 
        training services shall apply to support described in this 
        paragraph, and nothing in this paragraph shall prevent any 
        designated State unit from providing similar support to 
        individuals with disabilities within the State who are eligible 
        to receive support under this title and who are not served under 
        this paragraph.''.
SEC. 415. STATE REHABILITATION COUNCIL.

    Section 105 (29 U.S.C. 725) is amended--
            (1) in subsection (b)(1)(A)--
                    (A) by striking clause (ix) and inserting the 
                following:
                          ``(ix) in a State in which one or more 
                      projects are funded under section 121, at least 
                      one representative of the directors of the 
                      projects located in such State;''; and
                    (B) in clause (xi), by striking ``State workforce 
                investment board'' and inserting ``State workforce 
                development board''; and
            (2) in subsection (c)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``State workforce investment board'' and 
                inserting ``State workforce development board''; and
                    (B) in paragraph (6), by striking ``Service Act'' 
                and all that follows and inserting ``Service Act (42 
                U.S.C. 300x-3(a)) and the State workforce development 
                board, and with the activities of entities carrying out 
                programs under the Assistive Technology Act of 1998 (29 
                U.S.C. 3001 et seq.);''.
SEC. 416. EVALUATION STANDARDS AND PERFORMANCE INDICATORS.

    Section 106 (29 U.S.C. 726) is amended--
            (1) by striking subsection (a) and inserting the following:

    ``(a) In General.--
            ``(1) Standards and indicators.--The evaluation standards 
        and performance indicators for the vocational rehabilitation 
        program carried out under this title shall be subject to the 
        performance accountability provisions described in section 
        116(b) of the Workforce Innovation and Opportunity Act.
            ``(2) Additional performance accountability indicators.--A 
        State may establish and provide information on additional 
        performance accountability indicators, which shall be identified 
        in the State plan submitted under section 101.''; and
            (2) in subsection (b)(2)(B)(i), by striking ``review the 
        program'' and all that follows through ``request the State'' and 
        inserting ``on a biannual basis, review the program improvement 
        efforts of the State and, if the State has not improved its 
        performance to acceptable levels, as determined by the 
        Commissioner, direct the State''.
SEC. 417. MONITORING AND REVIEW.

    (a) In General.--Section 107 (29 U.S.C. 727) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (3)(E), by inserting before the 
                period the following: ``, including personnel of a 
                client assistance program under section 112, and past or 
                current recipients of vocational rehabilitation 
                services''; and
                    (B) in paragraph (4)--

[[Page 128 STAT. 1655]]

                          (i) by striking subparagraphs (A) and (B) and 
                      inserting the following:
                    ``(A) the eligibility process, including the process 
                related to the determination of ineligibility under 
                section 102(a)(5);
                    ``(B) the provision of services, including supported 
                employment services and pre-employment transition 
                services, and, if applicable, the order of selection;'';
                          (ii) in subparagraph (C), by striking ``and'' 
                      at the end;
                          (iii) by redesignating subparagraph (D) as 
                      subparagraph (E); and
                          (iv) by inserting after subparagraph (C) the 
                      following:
                    ``(D) data reported under section 101(a)(10)(C)(i); 
                and''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``and'' at the 
                end;
                    (B) in paragraph (2), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(3) provide technical assistance to programs under this 
        title to--
                    ``(A) promote high-quality employment outcomes for 
                individuals with disabilities;
                    ``(B) integrate veterans who are individuals with 
                disabilities into their communities and to support the 
                veterans to obtain and retain competitive integrated 
                employment;
                    ``(C) develop, improve, and disseminate information 
                on procedures, practices, and strategies, including for 
                the preparation of personnel, to better enable 
                individuals with intellectual disabilities and other 
                individuals with disabilities to participate in 
                postsecondary educational experiences and to obtain and 
                retain competitive integrated employment; and
                    ``(D) apply evidence-based findings to facilitate 
                systemic improvements in the transition of youth with 
                disabilities to postsecondary life.''.

    (b) Technical Amendment.--Section 108(a) (29 U.S.C. 728(a)) is 
amended by striking ``part B of title VI'' and inserting ``title VI''.
SEC. 418. TRAINING AND SERVICES FOR EMPLOYERS.

    Section 109 (29 U.S.C. 728a) is amended to read as follows:
``SEC. 109. TRAINING AND SERVICES FOR EMPLOYERS.

    ``A State may expend payments received under section 111 to educate 
and provide services to employers who have hired or are interested in 
hiring individuals with disabilities under programs carried out under 
this title, including--
            ``(1) providing training and technical assistance to 
        employers regarding the employment of individuals with 
        disabilities, including disability awareness, and the 
        requirements of the Americans with Disabilities Act of 1990 (42 
        U.S.C. 12101 et seq.) and other employment-related laws;
            ``(2) working with employers to--
                    ``(A) provide opportunities for work-based learning 
                experiences (including internships, short-term 
                employment,

[[Page 128 STAT. 1656]]

                apprenticeships, and fellowships), and opportunities for 
                pre-employment transition services;
                    ``(B) recruit qualified applicants who are 
                individuals with disabilities;
                    ``(C) train employees who are individuals with 
                disabilities; and
                    ``(D) promote awareness of disability-related 
                obstacles to continued employment;
            ``(3) providing consultation, technical assistance, and 
        support to employers on workplace accommodations, assistive 
        technology, and facilities and workplace access through 
        collaboration with community partners and employers, across 
        States and nationally, to enable the employers to recruit, job 
        match, hire, and retain qualified individuals with disabilities 
        who are recipients of vocational rehabilitation services under 
        this title, or who are applicants for such services; and
            ``(4) assisting employers with utilizing available financial 
        support for hiring or accommodating individuals with 
        disabilities.''.
SEC. 419. STATE ALLOTMENTS.

    Section 110 (29 U.S.C. 730) is amended--
            (1) in subsection (a)(1), by striking ``Subject to the 
        provisions of subsection (c)'' and inserting ``Subject to the 
        provisions of subsections (c) and (d),'';
            (2) in subsection (c)--
                    (A) in paragraph (1), by striking ``1987'' and 
                inserting ``2015''; and
                    (B) in paragraph (2)--
                          (i) by striking ``Secretary'' and all that 
                      follows through ``(B)'' and inserting 
                      ``Secretary,''; and
                          (ii) by striking ``2000 through 2003'' and 
                      inserting ``2015 through 2020''; and
            (3) by adding at the end the following:

    ``(d)(1) From any State allotment under subsection (a) for a fiscal 
year, the State shall reserve not less than 15 percent of the allotted 
funds for the provision of pre-employment transition services.
    ``(2) Such reserved funds shall not be used to pay for the 
administrative costs of providing pre-employment transition services.''.
SEC. 420. PAYMENTS TO STATES.

    Section 111(a)(2)(B) (29 U.S.C. 731(a)(2)(B)) is amended--
            (1) by striking ``For fiscal year 1994 and each fiscal year 
        thereafter, the'' and inserting ``The'';
            (2) by striking ``this title for the previous'' and 
        inserting ``this title for any previous''; and
            (3) by striking ``year preceding the previous'' and 
        inserting ``year preceding that previous''.
SEC. 421. CLIENT ASSISTANCE PROGRAM.

    Section 112 (29 U.S.C. 732) is amended--
            (1) in subsection (a), in the first sentence, by inserting 
        ``including under sections 113 and 511,'' after ``all available 
        benefits under this Act,'';
            (2) in subsection (b), by striking ``not later than October 
        1, 1984,'';

[[Page 128 STAT. 1657]]

            (3) in subsection (e)(1)--
                    (A) in subparagraph (A), by striking ``The Secretary 
                shall allot'' and inserting ``After reserving funds 
                under subparagraphs (E) and (F), the Secretary shall 
                allot the remainder of''; and
                    (B) by adding at the end the following:

    ``(E)(i) <<NOTE: Grants.>>  The Secretary shall reserve funds 
appropriated under subsection (h) to make a grant to the protection and 
advocacy system serving the American Indian Consortium to provide 
services in accordance with this section. The amount of such a grant 
shall be the same amount as is provided to a territory under this 
subsection.

    ``(ii) <<NOTE: Definitions.>>  In this subparagraph:
            ``(I) The term `American Indian Consortium' has the meaning 
        given the term in section 102 of the Developmental Disabilities 
        Assistance and Bill of Rights Act of 2000 (42 U.S.C. 15002).
            ``(II) The term `protection and advocacy system' means a 
        protection and advocacy system established under subtitle C of 
        title I of the Developmental Disabilities Assistance and Bill of 
        Rights Act of 2000 (42 U.S.C. 15041 et seq.).

    ``(F) For any fiscal year for which the amount appropriated under 
subsection (h) equals or exceeds $14,000,000, the Secretary may reserve 
not less than 1.8 percent and not more than 2.2 percent of such amount 
to provide a grant for training and technical assistance for the 
programs established under this section. Such training and technical 
assistance shall be coordinated with activities provided under section 
509(c)(1)(A).''; and
            (4) by striking subsection (h) and inserting the following:

    ``(h) <<NOTE: Appropriation authorization.>>  There are authorized 
to be appropriated to carry out the provisions of this section--
            ``(1) $12,000,000 for fiscal year 2015;
            ``(2) $12,927,000 for fiscal year 2016;
            ``(3) $13,195,000 for fiscal year 2017;
            ``(4) $13,488,000 for fiscal year 2018;
            ``(5) $13,805,000 for fiscal year 2019; and
            ``(6) $14,098,000 for fiscal year 2020.''.
SEC. 422. PRE-EMPLOYMENT TRANSITION SERVICES.

    Part B of title I (29 U.S.C. 730 et seq.) is further amended by 
adding at the end the following:
``SEC. 113. <<NOTE: 29 USC 733.>>  PROVISION OF PRE-EMPLOYMENT 
                        TRANSITION SERVICES.

    ``(a) In General.--From the funds reserved under section 110(d), and 
any funds made available from State, local, or private funding sources, 
each State shall ensure that the designated State unit, in collaboration 
with the local educational agencies involved, shall provide, or arrange 
for the provision of, pre-employment transition services for all 
students with disabilities in need of such services who are eligible or 
potentially eligible for services under this title.
    ``(b) Required Activities.--Funds available under subsection (a) 
shall be used to make available to students with disabilities described 
in subsection (a)--
            ``(1) job exploration counseling;
            ``(2) work-based learning experiences, which may include in-
        school or after school opportunities, or experience outside the 
        traditional school setting (including internships), that is

[[Page 128 STAT. 1658]]

        provided in an integrated environment to the maximum extent 
        possible;
            ``(3) counseling on opportunities for enrollment in 
        comprehensive transition or postsecondary educational programs 
        at institutions of higher education;
            ``(4) workplace readiness training to develop social skills 
        and independent living; and
            ``(5) instruction in self-advocacy, which may include peer 
        mentoring.

    ``(c) Authorized Activities.--Funds available under subsection (a) 
and remaining after the provision of the required activities described 
in subsection (b) may be used to improve the transition of students with 
disabilities described in subsection (a) from school to postsecondary 
education or an employment outcome by--
            ``(1) implementing effective strategies to increase the 
        likelihood of independent living and inclusion in communities 
        and competitive integrated workplaces;
            ``(2) developing and improving strategies for individuals 
        with intellectual disabilities and individuals with significant 
        disabilities to live independently, participate in postsecondary 
        education experiences, and obtain and retain competitive 
        integrated employment;
            ``(3) providing instruction to vocational rehabilitation 
        counselors, school transition personnel, and other persons 
        supporting students with disabilities;
            ``(4) disseminating information about innovative, effective, 
        and efficient approaches to achieve the goals of this section;
            ``(5) coordinating activities with transition services 
        provided by local educational agencies under the Individuals 
        with Disabilities Education Act (20 U.S.C. 1400 et seq.);
            ``(6) applying evidence-based findings to improve policy, 
        procedure, practice, and the preparation of personnel, in order 
        to better achieve the goals of this section;
            ``(7) developing model transition demonstration projects;
            ``(8) establishing or supporting multistate or regional 
        partnerships involving States, local educational agencies, 
        designated State units, developmental disability agencies, 
        private businesses, or other participants to achieve the goals 
        of this section; and
            ``(9) disseminating information and strategies to improve 
        the transition to postsecondary activities of individuals who 
        are members of traditionally unserved populations.

    ``(d) Pre-Employment Transition Coordination.--Each local office of 
a designated State unit shall carry out responsibilities consisting of--
            ``(1) attending individualized education program meetings 
        for students with disabilities, when invited;
            ``(2) working with the local workforce development boards, 
        one-stop centers, and employers to develop work opportunities 
        for students with disabilities, including internships, summer 
        employment and other employment opportunities available 
        throughout the school year, and apprenticeships;
            ``(3) work with schools, including those carrying out 
        activities under section 614(d)(1)(A)(i)(VIII) of the 
        Individuals with Disabilities Education Act (20 U.S.C. 
        1414(d)(1)(A)(i)(VIII)), to coordinate and ensure the provision 
        of pre-employment transition services under this section; and

[[Page 128 STAT. 1659]]

            ``(4) when invited, attend person-centered planning meetings 
        for individuals receiving services under title XIX of the Social 
        Security Act (42 U.S.C. 1396 et seq.).

    ``(e) <<NOTE: Consultation.>>  National Pre-employment Transition 
Coordination.--The Secretary shall support designated State agencies 
providing services under this section, highlight best State practices, 
and consult with other Federal agencies to advance the goals of this 
section.

    ``(f) Support.--In carrying out this section, States shall address 
the transition needs of all students with disabilities, including such 
students with physical, sensory, intellectual, and mental health 
disabilities.''.
SEC. 423. AMERICAN INDIAN VOCATIONAL REHABILITATION SERVICES.

    Section 121 (29 U.S.C. 741) is amended--
            (1) in subsection (a), in the first sentence, by inserting 
        before the period the following: ``(referred to in this section 
        as `eligible individuals'), consistent with such eligible 
        individuals' strengths, resources, priorities, concerns, 
        abilities, capabilities, interests, and informed choice, so that 
        such individuals may prepare for, and engage in, high-quality 
        employment that will increase opportunities for economic self-
        sufficiency'';
            (2) in subsection (b)(1)--
                    (A) in subparagraph (B), by striking ``and'' at the 
                end;
                    (B) in subparagraph (C), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(D) contains assurances that--
                          ``(i) all decisions affecting eligibility for 
                      vocational rehabilitation services, the nature and 
                      scope of available vocational rehabilitation 
                      services and the provision of such services will, 
                      consistent with this title, be made by a 
                      representative of the tribal vocational 
                      rehabilitation program funded through the grant; 
                      and
                          ``(ii) such decisions will not be delegated to 
                      another agency or individual.'';
            (3) by redesignating subsection (c) as subsection (d); and
            (4) by inserting after subsection (b) the following:

    ``(c)(1) <<NOTE: Effective date.>>  From the funds appropriated and 
made available to carry out this part for any fiscal year, beginning 
with fiscal year 2015, the Commissioner shall first reserve not less 
than 1.8 percent and not more than 2 percent of the funds to provide 
training and technical assistance to governing bodies described in 
subsection (a) for such fiscal year.

    ``(2) <<NOTE: Grants. Contracts.>>  From the funds reserved under 
paragraph (1), the Commissioner shall make grants to, or enter into 
contracts or other cooperative agreements with, entities that have 
experience in the operation of vocational rehabilitation services 
programs under this section to provide such training and technical 
assistance with respect to developing, conducting, administering, and 
evaluating such programs.

    ``(3) <<NOTE: Survey.>>  The Commissioner shall conduct a survey of 
the governing bodies regarding training and technical assistance needs 
in order to determine funding priorities for such grants, contracts, or 
cooperative agreements.

    ``(4) To be eligible to receive a grant or enter into a contract or 
cooperative agreement under this section, such an entity shall submit an 
application to the Commissioner at such time, in such

[[Page 128 STAT. 1660]]

manner, and containing a proposal to provide such training and technical 
assistance, and containing such additional information as the 
Commissioner may require. <<NOTE: Peer review.>>  The Commissioner shall 
provide for peer review of applications by panels that include persons 
who are not government employees and who have experience in the 
operation of vocational rehabilitation services programs under this 
section.''.
SEC. 424. VOCATIONAL REHABILITATION SERVICES CLIENT INFORMATION.

    Section 131(a)(2) (29 U.S.C. 751(a)(2)) is amended by striking 
``title I of the Workforce Investment Act of 1998'' and inserting 
``title I of the Workforce Innovation and Opportunity Act''.

                    Subtitle C--Research and Training

SEC. 431. PURPOSE.

    Section 200 (29 U.S.C. 760) is amended--
            (1) in paragraph (1), by inserting ``technical assistance,'' 
        after ``training,'';
            (2) in paragraph (2), by inserting ``technical assistance,'' 
        after ``training,'';
            (3) in paragraph (3), in the matter preceding subparagraph 
        (A)--
                    (A) by inserting ``and use'' after ``transfer''; and
                    (B) by inserting ``, in a timely and efficient 
                manner,'' after ``disabilities''; and
            (4) in paragraph (4), by striking ``distribution'' and 
        inserting ``dissemination'';
            (5) in paragraph (5)--
                    (A) by inserting ``, including individuals with 
                intellectual and psychiatric disabilities,'' after 
                ``disabilities''; and
                    (B) by striking ``and'' after the semicolon;
            (6) by redesignating paragraph (6) as paragraph (7);
            (7) by inserting after paragraph (5) the following:
            ``(6) identify strategies for effective coordination of 
        services to job seekers with disabilities available through 
        programs of one-stop partners, as defined in section 3 of the 
        Workforce Innovation and Opportunity Act;'';
            (8) in paragraph (7), as redesignated by paragraph (6), by 
        striking the period and inserting ``; and''; and
            (9) by adding at the end the following:
            ``(8) identify effective strategies for supporting the 
        employment of individuals with disabilities in competitive 
        integrated employment.''.
SEC. 432. AUTHORIZATION OF APPROPRIATIONS.

    Section 201 (29 U.S.C. 761) is amended to read as follows:
``SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this title 
$103,970,000 for fiscal year 2015, $112,001,000 for fiscal year 2016, 
$114,325,000 for fiscal year 2017, $116,860,000 for fiscal year 2018, 
$119,608,000 for fiscal year 2019, and $122,143,000 for fiscal year 
2020.''.

[[Page 128 STAT. 1661]]

SEC. 433. NATIONAL INSTITUTE ON DISABILITY, INDEPENDENT LIVING, 
                        AND REHABILITATION RESEARCH.

    Section 202 (29 U.S.C. 762) is amended--
            (1) in the section heading, by inserting ``, independent 
        living,'' after ``disability'';
            (2) in subsection (a)--
                    (A) in paragraph (1)--
                          (i) in the matter preceding subparagraph (A), 
                      by striking ``Department of Education'' and all 
                      that follows through ``which'' and inserting 
                      ``Administration for Community Living of the 
                      Department of Health and Human Services a National 
                      Institute on Disability, Independent Living, and 
                      Rehabilitation Research (referred to in this title 
                      as the `Institute'), which''; and
                          (ii) in subparagraph (A)--
                                    (I) in clause (ii), by striking 
                                ``and training; and'' and inserting ``, 
                                training, and technical assistance;'';
                                    (II) by redesignating clause (iii) 
                                as clause (iv); and
                                    (III) by inserting after clause (ii) 
                                the following:
                    ``(iii) outreach and information that clarifies 
                research implications for policy and practice; and''; 
                and
                    (B) in paragraph (2), by striking ``directly'' and 
                all that follows through the period and inserting 
                ``directly responsible to the Administrator for the 
                Administration for Community Living of the Department of 
                Health and Human Services.'';
            (3) in subsection (b)--
                    (A) in paragraph (2), by striking subparagraph (B) 
                and inserting the following:
                    ``(B) private organizations engaged in research 
                relating to--
                          ``(i) independent living;
                          ``(ii) rehabilitation; or
                          ``(iii) providing rehabilitation or 
                      independent living services;'';
                    (B) in paragraph (3), by striking ``in 
                rehabilitation'' and inserting ``on disability, 
                independent living, and rehabilitation'';
                    (C) in paragraph (4)--
                          (i) in the matter preceding subparagraph (A), 
                      by inserting ``education, health and wellness,'' 
                      after ``independent living,''; and
                          (ii) by striking subparagraphs (A) through (D) 
                      and inserting the following:
                    ``(A) public and private entities, including--
                          ``(i) elementary schools and secondary schools 
                      (as defined in section 9101 of the Elementary and 
                      Secondary Education Act of 1965 (20 U.S.C. 7801)); 
                      and
                          ``(ii) institutions of higher education;
                    ``(B) rehabilitation practitioners;
                    ``(C) employers and organizations representing 
                employers with respect to employment-based educational 
                materials or research;

[[Page 128 STAT. 1662]]

                    ``(D) individuals with disabilities (especially such 
                individuals who are members of minority groups or of 
                populations that are unserved or underserved by programs 
                under this Act);
                    ``(E) the individuals' representatives for the 
                individuals described in subparagraph (D); and
                    ``(F) the Committee on Education and the Workforce 
                of the House of Representatives, the Committee on 
                Appropriations of the House of Representatives, the 
                Committee on Health, Education, Labor, and Pensions of 
                the Senate, and the Committee on Appropriations of the 
                Senate;'';
                    (D) in paragraph (6)--
                          (i) by striking ``advances in rehabilitation'' 
                      and inserting ``advances in disability, 
                      independent living, and rehabilitation''; and
                          (ii) by inserting ``education, health and 
                      wellness,'' after ``employment, independent 
                      living,'';
                    (E) by striking paragraph (7);
                    (F) by redesignating paragraphs (8) through (11) as 
                paragraphs (7) through (10), respectively;
                    (G) in paragraph (7), as redesignated by 
                subparagraph (F)--
                          (i) by striking ``health, income,'' and 
                      inserting ``health and wellness, income, 
                      education,''; and
                          (ii) by striking ``and evaluation of 
                      vocational and other'' and inserting ``and 
                      evaluation of independent living, vocational, 
                      and'';
                    (H) in paragraph (8), as redesignated by 
                subparagraph (F), by striking ``with vocational 
                rehabilitation services for the purpose of identifying 
                effective rehabilitation programs and policies that 
                promote the independence of individuals with 
                disabilities and achievement of long-term vocational 
                goals'' and inserting ``with independent living and 
                vocational rehabilitation services for the purpose of 
                identifying effective independent living and 
                rehabilitation programs and policies that promote the 
                independence of individuals with disabilities and 
                achievement of long-term independent living and 
                employment goals''; and
                    (I) in paragraph (9), as redesignated by 
                subparagraph (F), by striking ``and telecommuting; and'' 
                and inserting ``, supported employment (including 
                customized employment), and telecommuting; and'';
            (4) in subsection (d)(1), by striking the second sentence 
        and inserting the following: ``The Director shall be an 
        individual with substantial knowledge of and experience in 
        independent living, rehabilitation, and research 
        administration.'';
            (5) in subsection (f)(1), by striking the second sentence 
        and inserting the following: ``The scientific peer review shall 
        be conducted by individuals who are not Department of Health and 
        Human Services employees. The Secretary shall consider for peer 
        review individuals who are scientists or other experts in 
        disability, independent living, and rehabilitation, including 
        individuals with disabilities and the individuals' 
        representatives, and who have sufficient expertise to review the 
        projects.'';
            (6) in subsection (h)--
                    (A) in paragraph (1)(A)--

[[Page 128 STAT. 1663]]

                          (i) by striking ``priorities for 
                      rehabilitation research,'' and inserting 
                      ``priorities for disability, independent living, 
                      and rehabilitation research,''; and
                          (ii) by inserting ``dissemination,'' after 
                      ``training,''; and
                    (B) in paragraph (2)--
                          (i) in subparagraph (A), by striking 
                      ``especially in the area of employment'' and 
                      inserting ``especially in the areas of employment 
                      and independent living'';
                          (ii) in subparagraph (D)--
                                    (I) by striking ``developed by the 
                                Director'' and inserting ``coordinated 
                                with the strategic plan required under 
                                section 203(c)'';
                                    (II) in clause (i), by striking 
                                ``Rehabilitation'' and inserting 
                                ``Disability, Independent Living, and 
                                Rehabilitation'';
                                    (III) in clause (ii), by striking 
                                ``Commissioner'' and inserting 
                                ``Administrator''; and
                                    (IV) in clause (iv), by striking 
                                ``researchers in the rehabilitation 
                                field'' and inserting ``researchers in 
                                the independent living and 
                                rehabilitation fields'';
                          (iii) by redesignating subparagraphs (E) and 
                      (F) as subparagraphs (F) and (G), respectively;
                          (iv) by inserting after subparagraph (D) the 
                      following:
            ``(E) be developed by the Director;'';
                          (v) in subparagraph (F), as redesignated by 
                      clause (iii), by inserting ``and information that 
                      clarifies implications of the results for 
                      practice,'' after ``covered activities,''; and
                          (vi) in subparagraph (G), as redesignated by 
                      clause (iii), by inserting ``and information that 
                      clarifies implications of the results for 
                      practice'' after ``covered activities'';
            (7) in subsection (j), by striking paragraph (3); and
            (8) by striking subsection (k) and inserting the following:

    ``(k) <<NOTE: Grants.>>  The Director shall make grants to 
institutions of higher education for the training of independent living 
and rehabilitation researchers, including individuals with disabilities 
and traditionally underserved populations of individuals with 
disabilities, as described in section 21, with particular attention to 
research areas that--
            ``(1) support the implementation and objectives of this Act; 
        and
            ``(2) improve the effectiveness of services authorized under 
        this Act.

    ``(l)(1) <<NOTE: Deadlines. Reports.>>  Not later than December 31 
of each year, the Director shall prepare, and submit to the Secretary, 
the Committee on Health, Education, Labor, and Pensions of the Senate, 
and the Committee on Education and the Workforce of the House of 
Representatives, a report on the activities funded under this title.

    ``(2) The report under paragraph (1) shall include--
            ``(A) a compilation and summary of the information provided 
        by recipients of funding for such activities under this title;

[[Page 128 STAT. 1664]]

            ``(B) a summary describing the funding received under this 
        title and the progress of the recipients of the funding in 
        achieving the measurable goals described in section 204(d)(2); 
        and
            ``(C) a summary of implications of research outcomes on 
        practice.

    ``(m)(1) <<NOTE: Determination.>>  If the Director determines that 
an entity that receives funding under this title fails to comply with 
the applicable requirements of this Act, or to make progress toward 
achieving the measurable goals described in section 204(d)(2), with 
respect to the covered activities involved, the Director shall utilize 
available monitoring and enforcement measures.

    ``(2) As part of the annual report required under subsection (l), 
the Secretary shall describe each action taken by the Secretary under 
paragraph (1) and the outcomes of such action.''.
SEC. 434. INTERAGENCY COMMITTEE.

    Section 203 (29 U.S.C. 763) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                          (i) by striking ``conducting rehabilitation 
                      research'' and inserting ``conducting disability, 
                      independent living, and rehabilitation research'';
                          (ii) by striking ``chaired by the Director'' 
                      and inserting ``chaired by the Secretary, or the 
                      Secretary's designee,'';
                          (iii) by inserting ``the Assistant Secretary 
                      of Labor for Disability Employment Policy, the 
                      Secretary of Defense, the Administrator of the 
                      Administration for Community Living,'' after 
                      ``Assistant Secretary for Special Education and 
                      Rehabilitative Services,''; and
                          (iv) by striking ``and the Director of the 
                      National Science Foundation.'' and inserting ``the 
                      Director of the National Science Foundation and 
                      the Administrator of the Small Business 
                      Administration.''; and
                    (B) in paragraph (2), by inserting ``, and for not 
                less than 1 of such meetings at least every 2 years, the 
                Committee shall invite policymakers, representatives 
                from other Federal agencies conducting relevant 
                research, individuals with disabilities, organizations 
                representing individuals with disabilities, researchers, 
                and providers, to offer input on the Committee's work, 
                including the development and implementation of the 
                strategic plan required under subsection (c)'' after 
                ``each year'';
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                          (i) by striking ``from targeted individuals'' 
                      and inserting ``individuals with disabilities''; 
                      and
                          (ii) by inserting ``independent living and'' 
                      before ``rehabilitation''; and
                    (B) in paragraph (2)--
                          (i) in subparagraph (A), by inserting 
                      ``independent living research,'' after ``assistive 
                      technology research,'';
                          (ii) in subparagraph (B), by inserting ``, 
                      independent living research,'' after ``technology 
                      research'';
                          (iii) in subparagraph (D), by striking ``and 
                      research that incorporates the principles of 
                      universal design''

[[Page 128 STAT. 1665]]

                      and inserting ``, independent living research, and 
                      research that incorporates the principles of 
                      universal design''; and
                          (iv) in subparagraph (E), by striking ``and 
                      research that incorporates the principles of 
                      universal design.'' and inserting ``, independent 
                      living research, and research that incorporates 
                      the principles of universal design.'';
            (3) by striking subsection (d);
            (4) by redesignating subsection (c) as subsection (d);
            (5) by inserting after subsection (b) the following:

    ``(c)(1) <<NOTE: Strategic plan.>>  The Committee shall develop a 
comprehensive government wide strategic plan for disability, independent 
living, and rehabilitation research.

    ``(2) The strategic plan shall include, at a minimum--
            ``(A) a description of the--
                    ``(i) measurable goals and objectives;
                    ``(ii) existing resources each agency will devote to 
                carrying out the plan;
                    ``(iii) timetables for completing the projects 
                outlined in the plan; and
                    ``(iv) assignment of responsible individuals and 
                agencies for carrying out the research activities;
            ``(B) research priorities and recommendations;
            ``(C) a description of how funds from each agency will be 
        combined, as appropriate, for projects administered among 
        Federal agencies, and how such funds will be administered;
            ``(D) the development and ongoing maintenance of a 
        searchable government wide inventory of disability, independent 
        living, and rehabilitation research for trend and data analysis 
        across Federal agencies;
            ``(E) guiding principles, policies, and procedures, 
        consistent with the best research practices available, for 
        conducting and administering disability, independent living, and 
        rehabilitation research across Federal agencies; and
            ``(F) a summary of underemphasized and duplicative areas of 
        research.

    ``(3) The strategic plan described in this subsection shall be 
submitted to the President and the Committee on Health, Education, 
Labor, and Pensions of the Senate and the Committee on Education and the 
Workforce of the House of Representatives.'';
            (6) in subsection (d), as redesignated by paragraph (4)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``Committee on Labor and Human Resources of the 
                Senate'' and inserting ``Committee on Health, Education, 
                Labor, and Pensions of the Senate''; and
                    (B) by striking paragraph (1) and inserting the 
                following:
            ``(1) describes the progress of the Committee in fulfilling 
        the duties described in subsections (b) and (c), and including 
        specifically for subsection (c)--
                    ``(A) <<NOTE: Reports.>>  a report of the progress 
                made in implementing the strategic plan, including 
                progress toward implementing the elements described in 
                subsection (c)(2)(A); and
                    ``(B) detailed budget information.''; and
            (7) in subsection (e), by striking paragraph (2) and 
        inserting the following:

[[Page 128 STAT. 1666]]

            ``(2) <<NOTE: Definition.>>  the term `independent living', 
        used in connection with research, means research on issues and 
        topics related to attaining maximum self-sufficiency and 
        function by individuals with disabilities, including research on 
        assistive technology and universal design, employment, 
        education, health and wellness, and community integration and 
        participation.''.
SEC. 435. RESEARCH AND OTHER COVERED ACTIVITIES.

    Section 204 (29 U.S.C. 764) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                          (i) by striking ``pay'' and inserting 
                      ``fund'';
                          (ii) by inserting ``have practical 
                      applications and'' before ``maximize''; and
                          (iii) by striking ``employment, independent 
                      living,'' and inserting ``employment, education, 
                      independent living, health and wellness,'';
                    (B) in paragraph (2)--
                          (i) in subparagraph (A), by inserting ``and 
                      from which the research findings, conclusions, or 
                      recommendations can be transferred to practice'' 
                      after ``State agencies'';
                          (ii) in subparagraph (B)--
                                    (I) by striking clause (ii) and 
                                inserting the following:
            ``(ii) studies and analyses of factors related to 
        industrial, vocational, educational, employment, social, 
        recreational, psychiatric, psychological, economic, and health 
        and wellness variables affecting individuals with disabilities, 
        including traditionally underserved populations as described in 
        section 21, and how those variables affect such individuals' 
        ability to live independently and their participation in the 
        work force;'';
                                    (II) in clause (iii), by striking 
                                ``are homebound'' and all that follows 
                                and inserting ``have significant 
                                challenges engaging in community life 
                                outside their homes and individuals who 
                                are in institutional settings;'';
                                    (III) in clause (iv), by inserting 
                                ``, including the principles of 
                                universal design and the 
                                interoperability of products and 
                                services'' after ``disabilities'';
                                    (IV) in clause (v), by inserting ``, 
                                and to promoting employment 
                                opportunities in competitive integrated 
                                employment'' after ``employment'';
                                    (V) in clause (vi), by striking 
                                ``and'' after the semicolon;
                                    (VI) in clause (vii), by striking 
                                ``and assistive technology.'' and 
                                inserting ``, assistive technology, and 
                                communications technology; and''; and
                                    (VII) by adding at the end the 
                                following:
            ``(viii) studies, analyses, and other activities affecting 
        employment outcomes as defined in section 7(11), including self-
        employment and telecommuting, of individuals with 
        disabilities.''; and
                    (C) by adding at the end the following:

    ``(3) In carrying out this section, the Director shall emphasize 
covered activities that include plans for--

[[Page 128 STAT. 1667]]

            ``(A) <<NOTE: Public information.>>  dissemination of high-
        quality materials, of scientifically valid research results, or 
        of findings, conclusions, and recommendations resulting from 
        covered activities, including through electronic means (such as 
        the website of the Department of Health and Human Services), so 
        that such information is available in a timely manner to the 
        general public; or
            ``(B) the commercialization of marketable products, research 
        results, or findings, resulting from the covered activities.'';
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``(18)'' both 
                places the term appears and inserting ``(17)'';
                    (B) in paragraph (2)--
                          (i) in subparagraph (A), by striking clauses 
                      (i) and (ii) and inserting the following:
            ``(i) be operated in collaboration with institutions of 
        higher education, providers of rehabilitation services, 
        developers or providers of assistive technology devices, 
        assistive technology services, or information technology devices 
        or services, as appropriate, or providers of other appropriate 
        services; and
            ``(ii) serve as centers of national excellence and national 
        or regional resources for individuals with disabilities, as well 
        as providers, educators, and researchers.'';
                          (ii) in subparagraph (B)--
                                    (I) in clause (i)--
                                            (aa) by adding ``independent 
                                        living and'' after ``research 
                                        in'';
                                            (bb) by adding ``independent 
                                        living and'' after ``will 
                                        improve''; and
                                            (cc) by striking ``alleviate 
                                        or stabilize'' and all that 
                                        follows and inserting ``maximize 
                                        health and function (including 
                                        alleviating or stabilizing 
                                        conditions, or preventing 
                                        secondary conditions), and 
                                        promote maximum social and 
                                        economic independence of 
                                        individuals with disabilities, 
                                        including promoting the ability 
                                        of the individuals to prepare 
                                        for, secure, retain, regain, or 
                                        advance in employment;'';
                                    (II) by redesignating clauses (ii), 
                                (iii), and (iv), as clauses (iii), (iv), 
                                and (v), respectively;
                                    (III) by inserting after clause (i) 
                                the following:
            ``(ii) conducting research in, and dissemination of, 
        employer-based practices to facilitate the identification, 
        recruitment, accommodation, advancement, and retention of 
        qualified individuals with disabilities;'';
                                    (IV) in clause (iii), as 
                                redesignated by subclause (II), by 
                                inserting ``independent living and'' 
                                before ``rehabilitation services'';
                                    (V) in clause (iv), as redesignated 
                                by subclause (II)--
                                            (aa) by inserting 
                                        ``independent living and'' 
                                        before ``rehabilitation'' each 
                                        place the term appears; and
                                            (bb) by striking ``and'' 
                                        after the semicolon; and
                                    (VI) by striking clause (v), as 
                                redesignated by subclause (II), and 
                                inserting the following:

[[Page 128 STAT. 1668]]

            ``(v) serving as an informational and technical assistance 
        resource to individuals with disabilities, as well as to 
        providers, educators, and researchers, by providing outreach and 
        information that clarifies research implications for practice 
        and identifies potential new areas of research; and
            ``(vi) developing practical applications for the research 
        findings of the Centers.'';
                          (iii) in subparagraph (C)--
                                    (I) in clause (i), by inserting ``, 
                                including research on assistive 
                                technology devices, assistive technology 
                                services, and accessible electronic and 
                                information technology devices'' after 
                                ``research'';
                                    (II) in clause (ii)--
                                            (aa) by striking ``and 
                                        social'' and inserting ``, 
                                        social, and economic''; and
                                            (bb) by inserting 
                                        ``independent living and'' 
                                        before ``rehabilitation''; and
                                    (III) by striking clauses (iii) and 
                                (iv);
                                    (IV) by redesignating clauses (v) 
                                and (vi) as clauses (iii) and (iv), 
                                respectively;
                                    (V) in clause (iii), as redesignated 
                                by subclause (IV), by striking ``to 
                                develop'' and all that follows and 
                                inserting ``that promotes the emotional, 
                                social, educational, and functional 
                                growth of children who are individuals 
                                with disabilities, as well as their 
                                integration in school, employment, and 
                                community activities;'';
                                    (VI) in clause (iv), as redesignated 
                                by subclause (IV), by striking ``that 
                                will improve'' and all that follows and 
                                inserting ``to develop and evaluate 
                                interventions, policies, and services 
                                that support families of those children 
                                and adults who are individuals with 
                                disabilities;''; and
                                    (VII) by adding at the end the 
                                following:
            ``(v) continuation of research that will improve services 
        and policies that foster the independence and social integration 
        of individuals with disabilities, and enable individuals with 
        disabilities, including individuals with intellectual 
        disabilities and other developmental disabilities, to live in 
        their communities; and
            ``(vi) research, dissemination, and technical assistance, on 
        best practices in vocational rehabilitation, including supported 
        employment and other strategies to promote competitive 
        integrated employment for persons with the most significant 
        disabilities.'';
                          (iv) by striking subparagraph (D) and 
                      inserting the following:

    ``(D) Training of students preparing to be independent living or 
rehabilitation personnel or to provide independent living, 
rehabilitative, assistive, or supportive services (such as 
rehabilitation counseling, personal care services, direct care, job 
coaching, aides in school based settings, or advice or assistance in 
utilizing assistive technology devices, assistive technology services, 
and accessible electronic and information technology devices and 
services) shall be an important priority for each such Center.'';
                          (v) in subparagraph (E), by striking 
                      ``comprehensive'';

[[Page 128 STAT. 1669]]

                          (vi) in subparagraph (G)(i), by inserting 
                      ``independent living and'' before 
                      ``rehabilitation-related'';
                          (vii) by striking subparagraph (I); and
                          (viii) by redesignating subparagraphs (J) 
                      through (O) as subparagraphs (I) through (N), 
                      respectively;
                    (C) in paragraph (3)--
                          (i) in subparagraph (A), by inserting 
                      ``independent living strategies and'' before 
                      ``rehabilitation technology'';
                          (ii) in subparagraph (B)--
                                    (I) in clause (i)(I), by inserting 
                                ``independent living and'' before 
                                ``rehabilitation problems'';
                                    (II) in clause (ii)(II), by striking 
                                ``employment'' and inserting 
                                ``educational, employment,''; and
                                    (III) in clause (iii)(II), by 
                                striking ``employment'' and inserting 
                                ``educational, employment,'';
                          (iii) in subparagraph (D)(i)(II), by striking 
                      ``postschool'' and inserting ``postsecondary 
                      education, competitive integrated employment, and 
                      other age-appropriate''; and
                          (iv) in subparagraph (G)(ii), by inserting 
                      ``the impact of any commercialized product 
                      researched or developed through the Center,'' 
                      after ``individuals with disabilities,'';
                    (D) in paragraph (4)(B)--
                          (i) in clause (i)--
                                    (I) by striking ``vocational'' and 
                                inserting ``independent living, 
                                employment,'';
                                    (II) by striking ``special'' and 
                                inserting ``unique''; and
                                    (III) by inserting ``social and 
                                functional needs, and'' before ``acute 
                                care''; and
                          (ii) in clause (iv), by inserting ``education, 
                      health and wellness,'' after ``employment,'';
                    (E) by striking paragraph (8) and inserting the 
                following:

    ``(8) Grants may be used to conduct a program of joint projects with 
other administrations and offices of the Department of Health and Human 
Services, the National Science Foundation, the Department of Veterans 
Affairs, the Department of Defense, the Federal Communications 
Commission, the National Aeronautics and Space Administration, the Small 
Business Administration, the Department of Labor, other Federal 
agencies, and private industry in areas of joint interest involving 
rehabilitation.'';
                    (F) by striking paragraphs (9) and (11);
                    (G) by redesignating paragraphs (10), (12), (13), 
                (14), (15), (16), (17), and (18), as paragraphs (9), 
                (10), (11), (12), (13), (14), (15), and (16), 
                respectively;
                    (H) in paragraph (11), as redesignated by 
                subparagraph (G)--
                          (i) in the matter preceding subparagraph (A), 
                      by striking ``employment needs of individuals with 
                      disabilities, including'' and inserting 
                      ``employment needs, opportunities, and outcomes 
                      (including those relating to self-employment, 
                      supported employment, and telecommuting) of 
                      individuals with disabilities, including'';

[[Page 128 STAT. 1670]]

                          (ii) in subparagraph (B), by inserting ``and 
                      employment related'' after ``the employment'';
                          (iii) in subparagraph (E), by striking ``and'' 
                      after the semicolon;
                          (iv) in subparagraph (F), by striking the 
                      period at the end and inserting a semicolon; and
                          (v) by adding at the end the following:
            ``(G) develop models to facilitate the successful transition 
        of individuals with disabilities from nonintegrated employment 
        and employment that is compensated at a wage less than the 
        Federal minimum wage to competitive integrated employment;
            ``(H) develop models to maximize opportunities for 
        integrated community living, including employment and 
        independent living, for individuals with disabilities;
            ``(I) provide training and continuing education for 
        personnel involved with community living for individuals with 
        disabilities;
            ``(J) develop model procedures for testing and evaluating 
        the community living related needs of individuals with 
        disabilities;
            ``(K) develop model training programs to teach individuals 
        with disabilities skills which will lead to integrated community 
        living and full participation in the community; and
            ``(L) develop new approaches for long-term services and 
        supports for individuals with disabilities, including supports 
        necessary for competitive integrated employment.'';
                    (I) in paragraph (12), as redesignated by 
                subparagraph (G)--
                          (i) in the matter preceding subparagraph (A), 
                      by inserting ``an independent living or'' after 
                      ``conduct'';
                          (ii) in subparagraph (D), by inserting 
                      ``independent living or'' before 
                      ``rehabilitation''; and
                          (iii) in the matter following subparagraph 
                      (E), by striking ``National Institute on 
                      Disability and Rehabilitation Research'' and 
                      inserting ``National Institute on Disability, 
                      Independent Living, and Rehabilitation Research'';
                    (J) in paragraph (13), as redesignated by 
                subparagraph (G), by inserting ``independent living 
                and'' before ``rehabilitation needs''; and
                    (K) in paragraph (14), as redesignated by 
                subparagraph (G), by striking ``and access to gainful 
                employment.'' and inserting ``, full participation, and 
                economic self-sufficiency.''; and
            (3) by adding at the end the following:

    ``(d)(1) <<NOTE: Grants. Contracts.>>  In awarding grants, 
contracts, or cooperative agreements under this title, the Director 
shall award the funding on a competitive basis.

    ``(2)(A) To be eligible to receive funds under this section for a 
covered activity, an entity described in subsection (a)(1) shall submit 
an application to the Director at such time, in such manner, and 
containing such information as the Director may require.
    ``(B) The application shall include information describing--
            ``(i) measurable goals, as established through section 1115 
        of title 31, United States Code, and a timeline and specific 
        plan for meeting the goals, that the applicant has established;

[[Page 128 STAT. 1671]]

            ``(ii) how the project will address 1 or more of the 
        following: commercialization of a marketable product, technology 
        transfer (if applicable), dissemination of any research results, 
        and other priorities as established by the Director; and
            ``(iii) how the applicant will quantifiably measure the 
        goals to determine whether such goals have been accomplished.

    ``(3)(A) In the case of an application for funding under this 
section to carry out a covered activity that results in the development 
of a marketable product, the application shall also include a 
commercialization and dissemination plan, as appropriate, containing 
commercialization and marketing strategies for the product involved, and 
strategies for disseminating information about the product. The funding 
received under this section shall not be used to carry out the 
commercialization and marketing strategies.
    ``(B) In the case of any other application for funding to carry out 
a covered activity under this section, the application shall also 
include a dissemination plan, containing strategies for disseminating 
educational materials, research results, or findings, conclusions, and 
recommendations, resulting from the covered activity.''.
SEC. 436. DISABILITY, INDEPENDENT LIVING, AND REHABILITATION 
                        RESEARCH ADVISORY COUNCIL.

    Section 205 (29 U.S.C. 765) is amended--
            (1) in the section heading, by inserting ``disability, 
        independent living, and'' before ``rehabilitation'';
            (2) in subsection (a)--
                    (A) by striking ``Department of Education a 
                Rehabilitation Research Advisory Council'' and inserting 
                ``Department of Health and Human Services a Disability, 
                Independent Living, and Rehabilitation Research Advisory 
                Council''; and
                    (B) by inserting ``not less than'' after ``composed 
                of'';
            (3) by striking subsection (c) and inserting the following:

    ``(c) Qualifications.--Members of the Council shall be generally 
representative of the community of disability, independent living, and 
rehabilitation professionals, the community of disability, independent 
living, and rehabilitation researchers, the directors of independent 
living centers and community rehabilitation programs, the business 
community (including a representative of the small business community) 
that has experience with the system of vocational rehabilitation 
services and independent living services carried out under this Act and 
with hiring individuals with disabilities, the community of stakeholders 
involved in assistive technology, the community of covered school 
professionals, and the community of individuals with disabilities, and 
the individuals' representatives. At least one-half of the members shall 
be individuals with disabilities or the individuals' representatives.''; 
and
            (4) in subsection (g), by striking ``Department of 
        Education'' and inserting ``Department of Health and Human 
        Services''.
SEC. 437. DEFINITION OF COVERED SCHOOL.

    Title II (29 U.S.C. 760 et seq.) is amended by adding at the end the 
following:
``SEC. 206. <<NOTE: 29 USC 766.>>  DEFINITION OF COVERED SCHOOL.

    ``In this title, the term `covered school' means an elementary 
school or secondary school (as such terms are defined in section 9101 of 
the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801)) or 
an institution of higher education.''.

[[Page 128 STAT. 1672]]

     Subtitle D--Professional Development and Special Projects and 
                              Demonstration

SEC. 441. PURPOSE; TRAINING.

    (a) Purpose.--Section 301(a) (29 U.S.C. 771(a)) is amended--
            (1) in paragraph (2), by inserting ``and'' after the 
        semicolon;
            (2) by striking paragraphs (3) and (4);
            (3) by redesignating paragraph (5) as paragraph (3); and
            (4) in paragraph (3), as redesignated by paragraph (3), by 
        striking ``workforce investment systems'' and inserting 
        ``workforce development systems''.

    (b) Training.--Section 302 (29 U.S.C. 772) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                          (i) in subparagraph (E), by striking all after 
                      ``deliver'' and inserting ``supported employment 
                      services and customized employment services to 
                      individuals with the most significant 
                      disabilities;'';
                          (ii) in subparagraph (F), by striking ``and'' 
                      after the semicolon;
                          (iii) in subparagraph (G), by striking the 
                      period at the end and inserting ``; and''; and
                          (iv) by adding at the end the following:
                    ``(H) personnel trained in providing assistive 
                technology services.'';
                    (B) in paragraph (4)--
                          (i) in the matter preceding subparagraph (A), 
                      by striking ``title I of the Workforce Investment 
                      Act of 1998'' and inserting ``subtitle B of title 
                      I of the Workforce Innovation and Opportunity 
                      Act'';
                          (ii) in subparagraph (A), by striking 
                      ``workforce investment system'' and inserting 
                      ``workforce development system''; and
                          (iii) in subparagraph (B), by striking 
                      ``section 134(c) of the Workforce Investment Act 
                      of 1998.'' and inserting ``section 121(e) of the 
                      Workforce Innovation and Opportunity Act.''; and
                    (C) in paragraph (5), by striking ``title I of the 
                Workforce Investment Act of 1998'' and inserting 
                ``subtitle B of title I of the Workforce Innovation and 
                Opportunity Act'';
            (2) in subsection (b)(1)(B)(i), by striking ``or prosthetics 
        and orthotics'' and inserting ``prosthetics and orthotics, 
        vision rehabilitation therapy, orientation and mobility 
        instruction, or low vision therapy'';
            (3) in subsection (g)--
                    (A) in the subsection heading, by striking ``and In-
                Service Training'';
                    (B) in paragraph (1), by adding after the period the 
                following: ``Any technical assistance provided to 
                community rehabilitation programs shall be focused on 
                the employment outcome of competitive integrated 
                employment for individuals with disabilities.''; and
                    (C) by striking paragraph (3);
            (4) in subsection (h), by striking ``section 306'' and 
        inserting ``section 304''; and

[[Page 128 STAT. 1673]]

            (5) in subsection (i), by striking ``such sums as may be 
        necessary for each of the fiscal years 1999 through 2003.'' and 
        inserting ``$33,657,000 for fiscal year 2015, $36,257,000 for 
        fiscal year 2016, $37,009,000 for fiscal year 2017, $37,830,000 
        for fiscal year 2018, $38,719,000 for fiscal year 2019, and 
        $39,540,000 for fiscal year 2020.''.
SEC. 442. DEMONSTRATION, TRAINING, AND TECHNICAL ASSISTANCE 
                        PROGRAMS.

    Section 303 (29 U.S.C. 773) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking ``section 306'' 
                and inserting ``section 304'';
                    (B) in paragraph (3)(A), by striking ``National 
                Institute on Disability and Rehabilitation Research'' 
                and inserting ``National Institute on Disability, 
                Independent Living, and Rehabilitation Research'';
                    (C) in paragraph (5)--
                          (i) in subparagraph (A)--
                                    (I) by striking clause (i) and 
                                inserting the following:
                          ``(i) initiatives focused on improving 
                      transition from education, including postsecondary 
                      education, to employment, particularly in 
                      competitive integrated employment, for youth who 
                      are individuals with significant disabilities;''; 
                      and
                                    (II) by striking clause (iii) and 
                                inserting the following:
                          ``(iii) increasing competitive integrated 
                      employment for individuals with significant 
                      disabilities.''; and
                          (ii) in subparagraph (B)(viii), by striking 
                      ``under title I of the Workforce Investment Act of 
                      1998'' and inserting ``under subtitle B of title I 
                      of the Workforce Innovation and Opportunity Act''; 
                      and
                    (D) by striking paragraph (6);
            (2) in subsection (c)--
                    (A) in paragraph (2)--
                          (i) in subparagraph (E), by striking ``and'' 
                      after the semicolon;
                          (ii) by redesignating subparagraph (F) as 
                      subparagraph (G); and
                          (iii) by inserting after subparagraph (E) the 
                      following:
                    ``(F) to provide support and guidance in helping 
                individuals with significant disabilities, including 
                students with disabilities, transition to competitive 
                integrated employment; and'';
                    (B) in paragraph (4)--
                          (i) in subparagraph (A)(ii)--
                                    (I) by inserting ``the'' after 
                                ``closely with''; and
                                    (II) by inserting ``, the community 
                                parent resource centers established 
                                pursuant to section 672 of such Act, and 
                                the eligible entities receiving awards 
                                under section 673 of such Act'' after 
                                ``Individuals with Disabilities 
                                Education Act''; and

[[Page 128 STAT. 1674]]

                          (ii) in subparagraph (C), by inserting ``, and 
                      demonstrate the capacity for serving,'' after 
                      ``shall serve''; and
                    (C) by adding at the end the following:
            ``(8) Reservation.--From the amount appropriated to carry 
        out this section for a fiscal year, 20 percent of such amount or 
        $500,000, whichever is less, may be reserved to carry out 
        paragraph (6).''; and
            (3) by striking subsection (e) and inserting the following:

    ``(e) Authorization of Appropriations.--For the purpose of carrying 
out this section there are authorized to be appropriated $5,796,000 for 
fiscal year 2015, $6,244,000 for fiscal year 2016, $6,373,000 for fiscal 
year 2017, $6,515,000 for fiscal year 2018, $6,668,000 for fiscal year 
2019, and $6,809,000 for fiscal year 2020.''.
SEC. 443. MIGRANT AND SEASONAL FARMWORKERS; RECREATIONAL PROGRAMS.

    The Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.) is amended--
            (1) <<NOTE: 29 USC 774, 775.>>  by striking sections 304 and 
        305;
            (2) <<NOTE: 29 USC 776.>>  by redesignating section 306 as 
        section 304.

               Subtitle E--National Council on Disability

SEC. 451. ESTABLISHMENT.

    Section 400 (29 U.S.C. 780) is amended--
            (1) in subsection (a)(1)--
                    (A) by redesignating subparagraph (C) as 
                subparagraph (D);
                    (B) by striking subparagraphs (A) and (B) and 
                inserting the following:

    ``(A) <<NOTE: Appointments.>>  There is established within the 
Federal Government a National Council on Disability (referred to in this 
title as the `National Council'), which, subject to subparagraph (B), 
shall be composed of 9 members, of which--
            ``(i) 5 shall be appointed by the President;
            ``(ii) 1 shall be appointed by the Majority Leader of the 
        Senate;
            ``(iii) 1 shall be appointed by the Minority Leader of the 
        Senate;
            ``(iv) 1 shall be appointed by the Speaker of the House of 
        Representatives; and
            ``(v) 1 shall be appointed by the Minority Leader of the 
        House of Representatives.

    ``(B) The National Council shall transition from 15 members (as of 
the date of enactment of the Workforce Innovation and Opportunity Act) 
to 9 members as follows:
            ``(i) <<NOTE: Appointments.>>  On the first 4 expirations of 
        National Council terms (after that date), replacement members 
        shall be appointed to the National Council in the following 
        order and manner:
                    ``(I) 1 shall be appointed by the Majority Leader of 
                the Senate.
                    ``(II) 1 shall be appointed by the Minority Leader 
                of the Senate.
                    ``(III) 1 shall be appointed by the Speaker of the 
                House of Representatives.

[[Page 128 STAT. 1675]]

                    ``(IV) 1 shall be appointed by the Minority Leader 
                of the House of Representatives.
            ``(ii) On the next 6 expirations of National Council terms 
        (after the 4 expirations described in clause (i) occur), no 
        replacement members shall be appointed to the National Council.

    ``(C) For any vacancy on the National Council that occurs after the 
transition described in subparagraph (B), the vacancy shall be filled in 
the same manner as the original appointment was made.''; and
                    (C) in subparagraph (D), as redesignated by 
                subparagraph (A) of this paragraph, in the first 
                sentence--
                          (i) by inserting ``national leaders on 
                      disability policy,'' after ``guardians of 
                      individuals with disabilities,''; and
                          (ii) by striking ``policy or programs'' and 
                      inserting ``policy or issues that affect 
                      individuals with disabilities'';
            (2) in subsection (b), by striking ``, except'' and all that 
        follows and inserting a period; and
            (3) in subsection (d), by striking ``Eight'' and inserting 
        ``Five''.
SEC. 452. REPORT.

    Section 401 (29 U.S.C. 781) is amended--
            (1) in paragraphs (1) and (3) of subsection (a), by striking 
        ``National Institute on Disability and Rehabilitation Research'' 
        and inserting ``National Institute on Disability, Independent 
        Living, and Rehabilitation Research''; and
            (2) by striking subsection (c).
SEC. 453. AUTHORIZATION OF APPROPRIATIONS.

    Section 405 (29 U.S.C. 785) is amended by striking ``such sums as 
may be necessary for each of the fiscal years 1999 through 2003.'' and 
inserting ``$3,186,000 for fiscal year 2015, $3,432,000 for fiscal year 
2016, $3,503,000 for fiscal year 2017, $3,581,000 for fiscal year 2018, 
$3,665,000 for fiscal year 2019, and $3,743,000 for fiscal year 2020.''.

                     Subtitle F--Rights and Advocacy

SEC. 456. INTERAGENCY COMMITTEE, BOARD, AND COUNCIL.

    (a) Interagency Committee.--Section 501 (29 U.S.C. 791) is amended--
            (1) by striking subsection (f); and
            (2) by redesignating subsection (g) as subsection (f).

    (b) Architectural and Transportation Barriers Compliance Board.--
Section 502(j) (29 U.S.C. 792(j)) is amended by striking ``such sums as 
may be necessary for each of the fiscal years 1999 through 2003.'' and 
inserting ``$7,448,000 for fiscal year 2015, $8,023,000 for fiscal year 
2016, $8,190,000 for fiscal year 2017, $8,371,000 for fiscal year 2018, 
$8,568,000 for fiscal year 2019, and $8,750,000 for fiscal year 2020.''.
    (c) Program or Activity.--Section 504(b)(2)(B) (29 U.S.C. 
794(b)(2)(B)) is amended by striking ``vocational education'' and 
inserting ``career and technical education''.

[[Page 128 STAT. 1676]]

    (d) Interagency Disability Coordinating Council.--Section 507(a) (29 
U.S.C. 794c(a)) is amended by inserting ``the Chairperson of the 
National Council on Disability,'' before ``and such other''.
SEC. 457. PROTECTION AND ADVOCACY OF INDIVIDUAL RIGHTS.

    Section 509 (29 U.S.C. 794e) is amended--
            (1) in subsection (c)(1)(A), by inserting ``a grant, 
        contract, or cooperative agreement for'' before ``training'';
            (2) in subsection (f)(2)--
                    (A) by striking ``general'' and all that follows 
                through ``records'' and inserting ``general authorities, 
                including the authority to access records''; and
                    (B) by inserting ``of title I'' after ``subtitle 
                C''; and
            (3) in subsection (l), by striking ``such sums as may be 
        necessary for each of the fiscal years 1999 through 2003.'' and 
        inserting ``$17,650,000 for fiscal year 2015, $19,013,000 for 
        fiscal year 2016, $19,408,000 for fiscal year 2017, $19,838,000 
        for fiscal year 2018, $20,305,000 for fiscal year 2019, and 
        $20,735,000 for fiscal year 2020.''.
SEC. 458. LIMITATIONS ON USE OF SUBMINIMUM WAGE.

    (a) In General.--Title V (29 U.S.C. 791 et seq.) is amended by 
adding at the end the following:
``SEC. 511. <<NOTE: Contracts. 29 USC 794g.>>  LIMITATIONS ON USE 
                        OF SUBMINIMUM WAGE.

    ``(a) In General.--No entity, including a contractor or 
subcontractor of the entity, which holds a special wage certificate as 
described in section 14(c) of the Fair Labor Standards Act of 1938 (29 
U.S.C. 214(c)) may compensate an individual with a disability who is age 
24 or younger at a wage (referred to in this section as a `subminimum 
wage') that is less than the Federal minimum wage unless 1 of the 
following conditions is met:
            ``(1) The individual is currently employed, as of the 
        effective date of this section, by an entity that holds a valid 
        certificate pursuant to section 14(c) of the Fair Labor 
        Standards Act of 1938.
            ``(2) The individual, before beginning work that is 
        compensated at a subminimum wage, has completed, and produces 
        documentation indicating completion of, each of the following 
        actions:
                    ``(A) The individual has received pre-employment 
                transition services that are available to the individual 
                under section 113, or transition services under the 
                Individuals with Disabilities Education Act (20 U.S.C. 
                1400 et seq.) such as transition services available to 
                the individual under section 614(d) of that Act (20 
                U.S.C. 1414(d)).
                    ``(B) The individual has applied for vocational 
                rehabilitation services under title I, with the result 
                that--
                          ``(i)(I) the individual has been found 
                      ineligible for such services pursuant to that 
                      title and has documentation consistent with 
                      section 102(a)(5)(C) regarding the determination 
                      of ineligibility; or
                          ``(II)(aa) the individual has been determined 
                      to be eligible for vocational rehabilitation 
                      services;
                          ``(bb) the individual has an individualized 
                      plan for employment under section 102;
                          ``(cc) the individual has been working toward 
                      an employment outcome specified in such 
                      individualized

[[Page 128 STAT. 1677]]

                      plan for employment, with appropriate supports and 
                      services, including supported employment services, 
                      for a reasonable period of time without success; 
                      and
                          ``(dd) the individual's vocational 
                      rehabilitation case is closed; and
                          ``(ii)(I) the individual has been provided 
                      career counseling, and information and referrals 
                      to Federal and State programs and other resources 
                      in the individual's geographic area that offer 
                      employment-related services and supports designed 
                      to enable the individual to explore, discover, 
                      experience, and attain competitive integrated 
                      employment; and
                          ``(II) such counseling and information and 
                      referrals are not for employment compensated at a 
                      subminimum wage provided by an entity described in 
                      this subsection, and such employment-related 
                      services are not compensated at a subminimum wage 
                      and do not directly result in employment 
                      compensated at a subminimum wage provided by an 
                      entity described in this subsection.

    ``(b) Construction.--
            ``(1) Rule.--Nothing in this section shall be construed to--
                    ``(A) change the purpose of this Act described in 
                section 2(b)(2), to empower individuals with 
                disabilities to maximize opportunities for competitive 
                integrated employment; or
                    ``(B) preference employment compensated at a 
                subminimum wage as an acceptable vocational 
                rehabilitation strategy or successful employment 
                outcome, as defined in section 7(11).
            ``(2) Contracts.--A local educational agency (as defined in 
        section 9101 of the Elementary and Secondary Education Act of 
        1965 (20 U.S.C. 7801)) or a State educational agency (as defined 
        in such section) may not enter into a contract or other 
        arrangement with an entity described in subsection (a) for the 
        purpose of operating a program for an individual who is age 24 
        or younger under which work is compensated at a subminimum wage.
            ``(3) Voidability.--The provisions in this section shall be 
        construed in a manner consistent with the provisions of the Fair 
        Labor Standards Act of 1938 (29 U.S.C. 201 et seq.), as amended 
        before or after the effective date of this Act.

    ``(c) During Employment.--
            ``(1) In general.--The entity described in subsection (a) 
        may not continue to employ an individual, regardless of age, at 
        a subminimum wage unless, after the individual begins work at 
        that wage, at the intervals described in paragraph (2), the 
        individual (with, in an appropriate case, the individual's 
        parent or guardian)--
                    ``(A) is provided by the designated State unit 
                career counseling, and information and referrals 
                described in subsection (a)(2)(B)(ii), delivered in a 
                manner that facilitates independent decisionmaking and 
                informed choice, as the individual makes decisions 
                regarding employment and career advancement; and
                    ``(B) is informed by the employer of self-advocacy, 
                self-determination, and peer mentoring training 
                opportunities available in the individual's geographic 
                area, provided by

[[Page 128 STAT. 1678]]

                an entity that does not have any financial interest in 
                the individual's employment outcome, under applicable 
                Federal and State programs or other sources.
            ``(2) <<NOTE: Time period.>>  Timing.--The actions required 
        under subparagraphs (A) and (B) of paragraph (1) shall be 
        carried out once every 6 months for the first year of the 
        individual's employment at a subminimum wage, and annually 
        thereafter for the duration of such employment.
            ``(3) Small business exception.--In the event that the 
        entity described in subsection (a) is a business with fewer than 
        15 employees, such entity can satisfy the requirements of 
        subparagraphs (A) and (B) of paragraph (1) by referring the 
        individual, at the intervals described in paragraph (2), to the 
        designated State unit for the counseling, information, and 
        referrals described in paragraph (1)(A) and the information 
        described in paragraph (1)(B).

    ``(d) Documentation.--
            ``(1) <<NOTE: Consultation.>>  In general.--The designated 
        State unit, in consultation with the State educational agency, 
        shall develop a new process or utilize an existing process, 
        consistent with guidelines developed by the Secretary, to 
        document the completion of the actions described in 
        subparagraphs (A) and (B) of subsection (a)(2) by a youth with a 
        disability who is an individual with a disability.
            ``(2) Documentation process.--Such process shall require 
        that--
                    ``(A) in the case of a student with a disability, 
                for documentation of actions described in subsection 
                (a)(2)(A)--
                          ``(i) if such a student with a disability 
                      receives and completes each category of required 
                      activities in section 113(b), such completion of 
                      services shall be documented by the designated 
                      State unit in a manner consistent with this 
                      section;
                          ``(ii) if such a student with a disability 
                      receives and completes any transition services 
                      available for students with disabilities under the 
                      Individuals with Disabilities Education Act, 
                      including those provided under section 
                      614(d)(1)(A)(i)(VIII) (20 U.S.C. 
                      1414(d)(1)(A)(i)(VIII)), such completion of 
                      services shall be documented by the appropriate 
                      school official responsible for the provision of 
                      such transition services, in a manner consistent 
                      with this section; and
                          ``(iii) the designated State unit shall 
                      provide the final documentation, in a form and 
                      manner consistent with this section, of the 
                      completion of pre-employment transition services 
                      as described in clause (i), or transition services 
                      under the Individuals with Disabilities Education 
                      Act as described in clause (ii), to the student 
                      with a disability within a reasonable period of 
                      time following the completion; and
                    ``(B) when an individual has completed the actions 
                described in subsection (a)(2)(B), the designated State 
                unit shall provide the individual a document indicating 
                such completion, in a manner consistent with this 
                section, within a reasonable time period following the 
                completion of the actions described in this 
                subparagraph.

    ``(e) <<NOTE: Records.>>  Verification.--

[[Page 128 STAT. 1679]]

            ``(1) Before employment.--Before an individual covered by 
        subsection (a)(2) begins work for an entity described in 
        subsection (a) at a subminimum wage, the entity shall review 
        such documentation received by the individual under subsection 
        (d), and provided by the individual to the entity, that 
        indicates that the individual has completed the actions 
        described in subparagraphs (A) and (B) of subsection (a)(2) and 
        the entity shall maintain copies of such documentation.
            ``(2) During employment.--
                    ``(A) In general.--In order to continue to employ an 
                individual at a subminimum wage, the entity described in 
                subsection (a) shall verify completion of the 
                requirements of subsection (c), including reviewing any 
                relevant documents provided by the individual, and shall 
                maintain copies of the documentation described in 
                subsection (d).
                    ``(B) Review of documentation.--The entity described 
                in subsection (a) shall be subject to review of 
                individual documentation described in subsection (d) by 
                a representative working directly for the designated 
                State unit or the Department of Labor at such a time and 
                in such a manner as may be necessary to fulfill the 
                intent of this section, consistent with regulations 
                established by the designated State unit or the 
                Secretary of Labor.

    ``(f) <<NOTE: Definition.>>  Federal Minimum Wage.--In this section, 
the term `Federal minimum wage' means the rate applicable under section 
6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 
206(a)(1)).''.

    (b) <<NOTE: 29 USC 794g note.>>  Effective Date.--This section takes 
effect 2 years after the date of enactment of the Workforce Innovation 
and Opportunity Act.

 Subtitle G--Employment Opportunities for Individuals With Disabilities

SEC. 461. EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH 
                        DISABILITIES.

    Title VI (29 U.S.C. 795 et seq.) is amended--
            (1) <<NOTE: 29 USC 795, 795a. 29 USC 795g prec. 29 USC 795g-
        795n. 29 USC 795g.>>  by striking part A;
            (2) by striking the part heading relating to part B;
            (3) by redesignating sections 621 through 628 as sections 
        602 through 609, respectively;
            (4) in section 602, as redesignated by paragraph (3)--
                    (A) by striking ``part'' and inserting ``title''; 
                and
                    (B) by striking ``individuals with the most 
                significant disabilities'' and all that follows and 
                inserting ``individuals with the most significant 
                disabilities, including youth with the most significant 
                disabilities, to enable such individuals to achieve an 
                employment outcome of supported employment in 
                competitive integrated employment.'';
            (5) <<NOTE: 29 USC 795h.>>  in section 603, as redesignated 
        by paragraph (3)--
                    (A) in subsection (a)--
                          (i) in paragraph (1)--
                                    (I) in the matter preceding 
                                subparagraph (A), by striking ``part'' 
                                and inserting ``title'';
                                    (II) in subparagraph (A), by 
                                inserting ``amount'' after 
                                ``whichever''; and
                                    (III) in subparagraph (B)--

[[Page 128 STAT. 1680]]

                                            (aa) by striking ``part for 
                                        the fiscal year'' and inserting 
                                        ``title for the fiscal year'';
                                            (bb) by striking ``this part 
                                        in fiscal year 1992'' and 
                                        inserting ``part B of this title 
                                        (as in effect on September 30, 
                                        1992) in fiscal year 1992''; and
                                            (cc) by inserting ``amount'' 
                                        after ``whichever''; and
                          (ii) in paragraph (2)(B), by striking ``one-
                      eighth of one percent'' and inserting ``\1/8\ of 1 
                      percent'';
                    (B) in subsection (b)--
                          (i) by inserting ``under subsection (a)'' 
                      after ``allotment to a State'';
                          (ii) by striking ``part'' each place the term 
                      appears and inserting ``title''; and
                          (iii) by striking ``one or more'' and 
                      inserting ``1 or more''; and
                    (C) by adding at the end the following:

    ``(c) Limitations on Administrative Costs.--A State that receives an 
allotment under this title shall not use more than 2.5 percent of such 
allotment to pay for administrative costs.
    ``(d) Services for Youth With the Most Significant Disabilities.--A 
State that receives an allotment under this title shall reserve and 
expend half of such allotment for the provision of supported employment 
services, including extended services, to youth with the most 
significant disabilities in order to assist those youth in achieving an 
employment outcome in supported employment.'';
            (6) by striking section 604, as redesignated by paragraph 
        (3), and inserting the following:
``SEC. 604. <<NOTE: 29 USC 795i.>>  AVAILABILITY OF SERVICES.

    ``(a) Supported Employment Services.--Funds provided under this 
title may be used to provide supported employment services to 
individuals who are eligible under this title.
    ``(b) Extended Services.--
            ``(1) In general.--Except as provided in paragraph (2), 
        funds provided under this title, or title I, may not be used to 
        provide extended services to individuals under this title or 
        title I.
            ``(2) Extended services for youth with the most significant 
        disabilities.--Funds allotted under this title, or title I, and 
        used for the provision of services under this title to youth 
        with the most significant disabilities pursuant to section 
        603(d), may be used to provide extended services to youth with 
        the most significant disabilities. <<NOTE: Time period.>>  Such 
        extended services shall be available for a period not to exceed 
        4 years.'';
            (7) <<NOTE: 29 USC 795j.>>  in section 605, as redesignated 
        by paragraph (3)--
                    (A) in the matter preceding paragraph (1)--
                          (i) by inserting ``, including a youth with a 
                      disability,'' after ``An individual''; and
                          (ii) by striking ``this part'' and inserting 
                      ``this title'';
                    (B) in paragraph (1), by inserting ``under title I'' 
                after ``rehabilitation services'';
                    (C) in paragraph (2), by striking ``and'' after the 
                semicolon;
                    (D) by redesignating paragraph (3) as paragraph (4);

[[Page 128 STAT. 1681]]

                    (E) by inserting after paragraph (2) the following:
            ``(3) for purposes of activities carried out with funds 
        described in section 603(d), the individual is a youth with a 
        disability, as defined in section (7)(42); and''; and
                    (F) in paragraph (4), as redesignated by 
                subparagraph (D), by striking ``assessment of 
                rehabilitation needs'' and inserting ``assessment of the 
                rehabilitation needs'';
            (8) <<NOTE: 29 USC 795k.>>  in section 606, as redesignated 
        by paragraph (3)--
                    (A) in subsection (a)--
                          (i) by striking ``this part'' and inserting 
                      ``this title''; and
                          (ii) by inserting ``, including youth with the 
                      most significant disabilities,'' after 
                      ``individuals'';
                    (B) in subsection (b)--
                          (i) in paragraph (1), by striking ``this 
                      part'' and inserting ``this title'';
                          (ii) in paragraph (2), by inserting ``, 
                      including youth,'' after ``rehabilitation needs of 
                      individuals'';
                          (iii) in paragraph (3)--
                                    (I) by inserting ``, including youth 
                                with the most significant 
                                disabilities,'' after ``provided to 
                                individuals''; and
                                    (II) by striking ``section 622'' and 
                                inserting ``section 603'';
                          (iv) by striking paragraph (7);
                          (v) by redesignating paragraph (6) as 
                      paragraph (7);
                          (vi) by inserting after paragraph (5) the 
                      following:
            ``(6) describe the activities to be conducted pursuant to 
        section 603(d) for youth with the most significant disabilities, 
        including--
                    ``(A) <<NOTE: Time period.>>  the provision of 
                extended services for a period not to exceed 4 years; 
                and
                    ``(B) how the State will use the funds reserved in 
                section 603(d) to leverage other public and private 
                funds to increase resources for extended services and 
                expand supported employment opportunities for youth with 
                the most significant disabilities;'';
                          (vii) in paragraph (7), as redesignated by 
                      clause (v)--
                                    (I) in subparagraph (A), by striking 
                                ``under this part'' both places the term 
                                appears and inserting ``under this 
                                title'';
                                    (II) in subparagraph (B), by 
                                inserting ``, including youth with the 
                                most significant disabilities,'' after 
                                ``significant disabilities'';
                                    (III) in subparagraph (C)--
                                            (aa) in clause (i), by 
                                        inserting ``, including, as 
                                        appropriate, for youth with the 
                                        most significant disabilities, 
                                        transition services and pre-
                                        employment transition services'' 
                                        after ``services to be 
                                        provided'';
                                            (bb) <<NOTE: Time period.>>  
                                        in clause (ii), by inserting ``, 
                                        including the extended services 
                                        that may be provided to youth 
                                        with the most significant 
                                        disabilities under this title, 
                                        in accordance with an approved 
                                        individualized plan for 
                                        employment,

[[Page 128 STAT. 1682]]

                                        for a period not to exceed 4 
                                        years'' after ``services 
                                        needed''; and
                                            (cc) in clause (iii)--
                                                (AA) by striking 
                                            ``identify the source of 
                                            extended services,'' and 
                                            inserting ``identify, as 
                                            appropriate, the source of 
                                            extended services,'';
                                                (BB) by striking ``or to 
                                            the extent'' and inserting 
                                            ``or indicate''; and
                                                (CC) by striking 
                                            ``employment is developed'' 
                                            and all that follows and 
                                            inserting ``employment is 
                                            developed;''
                                    (IV) in subparagraph (D), by 
                                striking ``under this part'' and 
                                inserting ``under this title'';
                                    (V) in subparagraph (F), by striking 
                                ``and'' after the semicolon;
                                    (VI) in subparagraph (G), by 
                                striking ``for the maximum number of 
                                hours possible''; and
                                    (VII) by adding at the end the 
                                following:
                    ``(H) the State agencies designated under paragraph 
                (1) will expend not more than 2.5 percent of the 
                allotment of the State under this title for 
                administrative costs of carrying out this title; and
                    ``(I) with respect to supported employment services 
                provided to youth with the most significant disabilities 
                pursuant to section 603(d), the designated State agency 
                will provide, directly or indirectly through public or 
                private entities, non-Federal contributions in an amount 
                that is not less than 10 percent of the costs of 
                carrying out such services; and'';
            (9) by striking section 607, as redesignated by paragraph 
        (3), and inserting the following:
``SEC. 607. <<NOTE: 29 USC 795l.>>  RESTRICTION.

    ``Each State agency designated under section 606(b)(1) shall collect 
the information required by section 101(a)(10) separately for--
            ``(1) eligible individuals receiving supported employment 
        services under this title;
            ``(2) eligible individuals receiving supported employment 
        services under title I;
            ``(3) eligible youth receiving supported employment services 
        under this title; and
            ``(4) eligible youth receiving supported employment services 
        under title I.'';
            (10) <<NOTE: 29 USC 795m.>>  in section 608(b), as 
        redesignated by paragraph (3), by striking ``this part'' both 
        places the terms appears and inserting ``this title''; and
            (11) <<NOTE: 29 USC 795n.>>  by striking section 609, as 
        redesignated by paragraph (3), and inserting the following:
``SEC. 609. ADVISORY COMMITTEE ON INCREASING COMPETITIVE 
                        INTEGRATED EMPLOYMENT FOR INDIVIDUALS WITH 
                        DISABILITIES.

    ``(a) <<NOTE: Deadline.>>  Establishment.--Not later than 60 days 
after the date of enactment of the Workforce Innovation and Opportunity 
Act, the Secretary of Labor shall establish an Advisory Committee on

[[Page 128 STAT. 1683]]

Increasing Competitive Integrated Employment for Individuals with 
Disabilities (referred to in this section as the `Committee').

    ``(b) Appointment and Vacancies.--
            ``(1) Appointment.--The Secretary of Labor shall appoint the 
        members of the Committee described in subsection (c)(6), in 
        accordance with subsection (c).
            ``(2) Vacancies.--Any vacancy in the Committee shall not 
        affect its powers, but shall be filled in the same manner, in 
        accordance with the same paragraph of subsection (c), as the 
        original appointment or designation was made.

    ``(c) Composition.--The Committee shall be composed of--
            ``(1) the Assistant Secretary for Disability Employment 
        Policy, the Assistant Secretary for Employment and Training, and 
        the Administrator of the Wage and Hour Division, of the 
        Department of Labor;
            ``(2) the Commissioner of the Administration on Intellectual 
        and Developmental Disabilities, or the Commissioner's designee;
            ``(3) the Director of the Centers for Medicare & Medicaid 
        Services of the Department of Health and Human Services, or the 
        Director's designee;
            ``(4) the Commissioner of Social Security, or the 
        Commissioner's designee;
            ``(5) the Commissioner of the Rehabilitation Services 
        Administration, or the Commissioner's designee; and
            ``(6) representatives from constituencies consisting of--
                    ``(A) self-advocates for individuals with 
                intellectual or developmental disabilities;
                    ``(B) providers of employment services, including 
                those that employ individuals with intellectual or 
                developmental disabilities in competitive integrated 
                employment;
                    ``(C) representatives of national disability 
                advocacy organizations for adults with intellectual or 
                developmental disabilities;
                    ``(D) experts with a background in academia or 
                research and expertise in employment and wage policy 
                issues for individuals with intellectual or 
                developmental disabilities;
                    ``(E) representatives from the employer community or 
                national employer organizations; and
                    ``(F) other individuals or representatives of 
                organizations with expertise on increasing opportunities 
                for competitive integrated employment for individuals 
                with disabilities.

    ``(d) Chairperson.--The Committee shall elect a Chairperson of the 
Committee from among the appointed members of the Committee.
    ``(e) Meetings.--The Committee shall meet at the call of the 
Chairperson, but not less than 8 times.
    ``(f) <<NOTE: Recommenda- tions.>>  Duties.--The Committee shall 
study, and prepare findings, conclusions, and recommendations for the 
Secretary of Labor on--
            ``(1) ways to increase the employment opportunities for 
        individuals with intellectual or developmental disabilities or 
        other individuals with significant disabilities in competitive 
        integrated employment;
            ``(2) the use of the certificate program carried out under 
        section 14(c) of the Fair Labor Standards Act of 1938 (29

[[Page 128 STAT. 1684]]

        U.S.C. 214(c)) for the employment of individuals with 
        intellectual or developmental disabilities, or other individuals 
        with significant disabilities; and
            ``(3) ways to improve oversight of the use of such 
        certificates.

    ``(g) Committee Personnel Matters.--
            ``(1) Travel expenses.--The members of the Committee shall 
        not receive compensation for the performance of services for the 
        Committee, but shall be allowed reasonable travel expenses, 
        including per diem in lieu of subsistence, at rates authorized 
        for employees of agencies under subchapter I of chapter 57 of 
        title 5, United States Code, while away from their homes or 
        regular places of business in the performance of services for 
        the Committee. Notwithstanding section 1342 of title 31, United 
        States Code, the Secretary may accept the voluntary and 
        uncompensated services of members of the Committee.
            ``(2) Staff.--The Secretary of Labor may designate such 
        personnel as may be necessary to enable the Committee to perform 
        its duties.
            ``(3) Detail of government employees.--Any Federal 
        Government employee, with the approval of the head of the 
        appropriate Federal agency, may be detailed to the Committee 
        without reimbursement, and such detail shall be without 
        interruption or loss of civil service status or privilege.
            ``(4) Facilities, equipment, and services.--The Secretary of 
        Labor shall make available to the Committee, under such 
        arrangements as may be appropriate, necessary equipment, 
        supplies, and services.

    ``(h) Reports.--
            ``(1) Interim and final reports.--The Committee shall 
        prepare and submit to the Secretary of Labor, as well as the 
        Committee on Health, Education, Labor, and Pensions of the 
        Senate and the Committee on Education and the Workforce of the 
        House of Representatives--
                    ``(A) an interim report that summarizes the progress 
                of the Committee, along with any interim findings, 
                conclusions, and recommendations as described in 
                subsection (f); and
                    ``(B) a final report that states final findings, 
                conclusions, and recommendations as described in 
                subsection (f).
            ``(2) Preparation and submission.--The reports shall be 
        prepared and submitted--
                    ``(A) in the case of the interim report, not later 
                than 1 year after the date on which the Committee is 
                established under subsection (a); and
                    ``(B) in the case of the final report, not later 
                than 2 years after the date on which the Committee is 
                established under subsection (a).

    ``(i) Termination.--The Committee shall terminate on the day after 
the date on which the Committee submits the final report.
``SEC. 610. <<NOTE: 29 USC 795o.>>  AUTHORIZATION OF 
                        APPROPRIATIONS.

    ``There is authorized to be appropriated to carry out this title 
$27,548,000 for fiscal year 2015, $29,676,000 for fiscal year 2016, 
$30,292,000 for fiscal year 2017, $30,963,000 for fiscal year 2018,

[[Page 128 STAT. 1685]]

$31,691,000 for fiscal year 2019, and $32,363,000 for fiscal year 
2020.''.

  Subtitle H--Independent Living Services and Centers for Independent 
                                 Living

          CHAPTER 1--INDIVIDUALS WITH SIGNIFICANT DISABILITIES

                    Subchapter A--General Provisions

SEC. 471. PURPOSE.

    Section 701 (29 U.S.C. 796) is amended, in paragraph (3)--
            (1) by striking ``part B of title VI'' and inserting ``title 
        VI''; and
            (2) by inserting before the period the following: ``, with 
        the goal of improving the independence of individuals with 
        disabilities''.
SEC. 472. ADMINISTRATION OF THE INDEPENDENT LIVING PROGRAM.

    Title VII (29 U.S.C. 796 et seq.) is amended by inserting after 
section 701 the following:
``SEC. 701A. <<NOTE: 29 USC 796-1.>>  ADMINISTRATION OF THE 
                          INDEPENDENT LIVING PROGRAM.

    ``There <<NOTE: Establishment.>>  is established within the 
Administration for Community Living of the Department of Health and 
Human Services, an Independent Living Administration. The Independent 
Living Administration shall be headed by a Director (referred to in this 
section as the `Director') appointed by the Secretary of Health and 
Human Services. The Director shall be an individual with substantial 
knowledge of independent living services. The Independent Living 
Administration shall be the principal agency, and the Director shall be 
the principal officer, to carry out this chapter. In performing the 
functions of the office, the Director shall be directly responsible to 
the Administrator of the Administration for Community Living of the 
Department of Health and Human Services. The Secretary shall ensure that 
the Independent Living Administration has sufficient resources 
(including designating at least 1 individual from the Office of General 
Counsel who is knowledgeable about independent living services) to 
provide technical assistance and support to, and oversight of, the 
programs funded under this chapter.''.
SEC. 473. DEFINITIONS.

    Section 702 (29 U.S.C. 796a) is amended--
            (1) in paragraph (1)--
                    (A) in the matter before subparagraph (A), by 
                inserting ``for individuals with significant 
                disabilities (regardless of age or income)'' before 
                ``that--''; and
                    (B) in subparagraph (B), by striking the period and 
                inserting ``, including, at a minimum, independent 
                living core services as defined in section 7(17).'';
            (2) in paragraph (2), by striking the period and inserting 
        the following: ``, in terms of the management, staffing, 
        decisionmaking, operation, and provisions of services, of the 
        center.'';
            (3) by redesignating paragraphs (1) and (2) as paragraphs 
        (2) and (3), respectively; and

[[Page 128 STAT. 1686]]

            (4) by inserting before paragraph (2) the following:
            ``(1) Administrator.--The term `Administrator' means the 
        Administrator of the Administration for Community Living of the 
        Department of Health and Human Services.''.
SEC. 474. STATE PLAN.

    Section 704 (29 U.S.C. 796c) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                          (i) by inserting after ``State plan'' the 
                      following: ``developed and signed in accordance 
                      with paragraph (2),''; and
                          (ii) by striking ``Commissioner'' each place 
                      it appears and inserting ``Administrator'';
                    (B) in paragraph (2)--
                          (i) in the matter preceding subparagraph (A), 
                      by striking ``developed and signed by''; and
                          (ii) by striking subparagraphs (A) and (B) and 
                      inserting the following:
                    ``(A) developed by the chairperson of the Statewide 
                Independent Living Council, and the directors of the 
                centers for independent living in the State, after 
                receiving public input from individuals with 
                disabilities and other stakeholders throughout the 
                State; and
                    ``(B) signed by--
                          ``(i) the chairperson of the Statewide 
                      Independent Living Council, acting on behalf of 
                      and at the direction of the Council;
                          ``(ii) the director of the designated State 
                      entity described in subsection (c); and
                          ``(iii) not less than 51 percent of the 
                      directors of the centers for independent living in 
                      the State.'';
                    (C) in paragraph (3)--
                          (i) in subparagraph (A), by striking ``State 
                      independent living services'' and inserting 
                      ``independent living services in the State''; and
                          (ii) by striking subparagraph (C) and 
                      inserting the following:
                    ``(C) working relationships and collaboration 
                between--
                          ``(i) centers for independent living; and
                          ``(ii)(I) entities carrying out programs that 
                      provide independent living services, including 
                      those serving older individuals;
                          ``(II) other community-based organizations 
                      that provide or coordinate the provision of 
                      housing, transportation, employment, information 
                      and referral assistance, services, and supports 
                      for individuals with significant disabilities; and
                          ``(III) entities carrying out other programs 
                      providing services for individuals with 
                      disabilities.''.
                    (D) in paragraph (4), by striking ``Commissioner'' 
                each place it appears and inserting ``Administrator''; 
                and
                    (E) by adding at the end the following:
            ``(5) Statewideness.--The State plan shall describe 
        strategies for providing independent living services on a 
        statewide basis, to the greatest extent possible.'';
            (2) in subsection (c)--

[[Page 128 STAT. 1687]]

                    (A) in the subsection heading, by striking ``Unit'' 
                and inserting ``Entity'';
                    (B) in the matter preceding paragraph (1), by 
                striking ``the designated State unit of such State'' and 
                inserting ``a State entity of such State (referred to in 
                this title as the `designated State entity')'';
                    (C) in paragraphs (3) and (4), by striking 
                ``Commissioner'' each place it appears and inserting 
                ``Administrator'';
                    (D) in paragraph (3), by striking ``and'' at the 
                end;
                    (E) in paragraph (4), by striking the period and 
                inserting ``; and''; and
                    (F) by adding at the end the following:
            ``(5) retain not more than 5 percent of the funds received 
        by the State for any fiscal year under part B, for the 
        performance of the services outlined in paragraphs (1) through 
        (4).'';
            (3) in subsection (i), by striking paragraphs (1) and (2) 
        and inserting the following:
            ``(1) the Statewide Independent Living Council;
            ``(2) centers for independent living;
            ``(3) the designated State entity; and
            ``(4) other State agencies or entities represented on the 
        Council, other councils that address the needs and issues of 
        specific disability populations, and other public and private 
        entities determined to be appropriate by the Council.'';
            (4) in subsection (m)--
                    (A) in paragraph (4), by striking ``Commissioner'' 
                each place it appears and inserting ``Administrator''; 
                and
                    (B) in paragraph (5), by striking ``Commissioner'' 
                and inserting ``Administrator''; and
            (5) by adding at the end the following:

    ``(o) Promoting Full Access to Community Life.--The plan shall 
describe how the State will provide independent living services 
described in section 7(18) that promote full access to community life 
for individuals with significant disabilities.''.
SEC. 475. STATEWIDE INDEPENDENT LIVING COUNCIL.

    Section 705 (29 U.S.C. 796d) is amended--
            (1) in subsection (a), by inserting ``and maintain'' after 
        ``shall establish'';
            (2) in subsection (b)--
                    (A) in paragraph (2)--
                          (i) in subparagraph (A)--
                                    (I) by inserting ``among its voting 
                                members,'' before ``at least''; and
                                    (II) by striking ``one'' and 
                                inserting ``1''; and
                          (ii) by striking subparagraphs (B) and (C) and 
                      inserting the following:
                    ``(B) among its voting members, for a State in which 
                1 or more centers for independent living are run by, or 
                in conjunction with, the governing bodies of American 
                Indian tribes located on Federal or State reservations, 
                at least 1 representative of the directors of such 
                centers; and
                    ``(C) as ex officio, nonvoting members, a 
                representative of the designated State entity, and 
                representatives from State agencies that provide 
                services for individuals with disabilities.'';
                    (B) in paragraph (3)--

[[Page 128 STAT. 1688]]

                          (i) by redesignating subparagraphs (C) through 
                      (F) as subparagraphs (D) through (G), 
                      respectively;
                          (ii) in subparagraph (B), by striking 
                      ``parents and guardians of''; and
                          (iii) by inserting after paragraph (B) the 
                      following:
                    ``(C) parents and guardians of individuals with 
                disabilities;'';
                    (C) in paragraph (5)(B), by striking ``paragraph 
                (3)'' and inserting ``paragraph (1)''; and
                    (D) in paragraph (6)(B), by inserting ``, other than 
                a representative described in paragraph (2)(A) if there 
                is only one center for independent living within the 
                State,'' after ``the Council'';
            (3) by striking subsection (c) and inserting the following:

    ``(c) Functions.--
            ``(1) Duties.--The Council shall--
                    ``(A) develop the State plan as provided in section 
                704(a)(2);
                    ``(B) monitor, review, and evaluate the 
                implementation of the State plan;
                    ``(C) meet regularly, and ensure that such meetings 
                of the Council are open to the public and sufficient 
                advance notice of such meetings is provided;
                    ``(D) submit to the Administrator such periodic 
                reports as the Administrator may reasonably request, and 
                keep such records, and afford such access to such 
                records, as the Administrator finds necessary to verify 
                the information in such reports; and
                    ``(E) as appropriate, coordinate activities with 
                other entities in the State that provide services 
                similar to or complementary to independent living 
                services, such as entities that facilitate the provision 
                of or provide long-term community-based services and 
                supports.
            ``(2) Authorities.--The Council may, consistent with the 
        State plan described in section 704, unless prohibited by State 
        law--
                    ``(A) in order to improve services provided to 
                individuals with disabilities, work with centers for 
                independent living to coordinate services with public 
                and private entities;
                    ``(B) conduct resource development activities to 
                support the activities described in this subsection or 
                to support the provision of independent living services 
                by centers for independent living; and
                    ``(C) perform such other functions, consistent with 
                the purpose of this chapter and comparable to other 
                functions described in this subsection, as the Council 
                determines to be appropriate.
            ``(3) Limitation.--The Council shall not provide independent 
        living services directly to individuals with significant 
        disabilities or manage such services.'';
            (4) in subsection (e)--
                    (A) in paragraph (1), in the first sentence, by 
                striking ``prepare'' and all that follows through ``a 
                plan'' and inserting ``prepare, in conjunction with the 
                designated State entity, a plan''; and
                    (B) in paragraph (3), by striking ``State agency'' 
                and inserting ``State entity''; and

[[Page 128 STAT. 1689]]

            (5) in subsection (f)--
                    (A) by striking ``such resources'' and inserting 
                ``available resources''; and
                    (B) by striking ``(including'' and all that follows 
                through ``compensation'' and inserting ``(such as 
                personal assistance services), and to pay reasonable 
                compensation''.
SEC. 475A. RESPONSIBILITIES OF THE ADMINISTRATOR.

    Section 706 (29 U.S.C. 796d-1) is amended--
            (1) by striking the title of the section and inserting the 
        following:
``SEC. 706. RESPONSIBILITIES OF THE ADMINISTRATOR.'';
            (2) in subsection (a)--
                    (A) in paragraph (1), by striking ``Commissioner'' 
                each place it appears and inserting ``Administrator''; 
                and
                    (B) in paragraph (2)--
                          (i) in subparagraph (A), by striking 
                      ``Commissioner'' and inserting ``Administrator''; 
                      and
                          (ii) in subparagraph (B)--
                                    (I) in clause (i)--
                                            (aa) by inserting ``or the 
                                        Commissioner'' after ``to the 
                                        Secretary''; and
                                            (bb) by striking ``to the 
                                        Commissioner; and'' and 
                                        inserting ``to the 
                                        Administrator;'';
                                    (II) by redesignating clause (ii) as 
                                clause (iii); and
                                    (III) by inserting after clause (i) 
                                the following:
                          ``(ii) to the State agency shall be deemed to 
                      be references to the designated State entity; 
                      and'';
            (3) by striking subsection (b) and inserting the following:

    ``(b) <<NOTE: Deadline. Federal Register, publication.>>  
Indicators.--Not later than 1 year after the date of enactment of the 
Workforce Innovation and Opportunity Act, the Administrator shall 
develop and publish in the Federal Register indicators of minimum 
compliance for centers for independent living (consistent with the 
standards set forth in section 725), and indicators of minimum 
compliance for Statewide Independent Living Councils.'';
            (4) in subsection (c)--
                    (A) in paragraph (1)--
                          (i) by striking ``Commissioner'' each place it 
                      appears and inserting ``Administrator''; and
                          (ii) by striking the last sentence;
                    (B) in paragraph (2)--
                          (i) in the matter preceding subparagraph (A), 
                      by striking ``Commissioner'' and inserting 
                      ``Administrator'';
                          (ii) in subparagraph (A), by striking ``such a 
                      review'' and inserting ``a review described in 
                      paragraph (1)''; and
                          (iii) in subparagraphs (A) and (B), by 
                      striking ``Department'' each place it appears and 
                      inserting ``Department of Health and Human 
                      Services''; and
            (5) by striking subsection (d) and inserting the following:

    ``(d) Reports.--
            ``(1) In general.--The Director described in section 701A 
        shall provide to the Administrator of the Administration for 
        Community Living and the Administrator shall include, in an

[[Page 128 STAT. 1690]]

        annual report, information on the extent to which centers for 
        independent living receiving funds under part C have complied 
        with the standards and assurances set forth in section 725. The 
        Director may identify individual centers for independent living 
        in the analysis contained in that information. The Director 
        shall include in the report the results of onsite compliance 
        reviews, identifying individual centers for independent living 
        and other recipients of assistance under part C.
            ``(2) Public availability.--The Director shall ensure that 
        the report described in this subsection is made publicly 
        available in a timely manner, including through electronic 
        means, in order to inform the public about the administration 
        and performance of programs under this Act.''.

                Subchapter B--Independent Living Services

SEC. 476. ADMINISTRATION.

    (a) Allotments.--Section 711 (29 U.S.C. 796e) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)(A)--
                          (i) by striking ``Except'' and inserting 
                      ``After the reservation required by section 711A 
                      is made, and except''; and
                          (ii) by inserting ``the remainder