H. Rept. 113-14 - 113th Congress (2013-2014)
March 12, 2013, As Reported by the Education and the Workforce Committee

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House Report 113-14 - SUPPORTING KNOWLEDGE AND INVESTING IN LIFELONG SKILLS ACT




[House Report 113-14]
[From the U.S. Government Printing Office]


113th Congress     }                             {    Rept 113-14
   lst Session     }   HOUSE OF REPRESENTATIVES  {    Part 1
_______________________________________________________________________


       SUPPORTING KNOWLEDGE AND INVESTING IN LIFELONG SKILLS ACT

                               ----------                              

                              R E P O R T

                                 of the

                COMMITTEE ON EDUCATION AND THE WORKFORCE

                              to accompany

                                H.R. 803

                             together with

                             MINORITY VIEWS



<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>


 March 12, 2013.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed


       SUPPORTING KNOWLEDGE AND INVESTING IN LIFELONG SKILLS ACT


113th Congress 
 1st Session            HOUSE OF REPRESENTATIVES           Rept. 113-14
                                                                 Part 1
_______________________________________________________________________

                                     



       SUPPORTING KNOWLEDGE AND INVESTING IN LIFELONG SKILLS ACT

                               __________

                              R E P O R T

                                 of the

                COMMITTEE ON EDUCATION AND THE WORKFORCE

                              to accompany

                                H.R. 803

                             together with

                             MINORITY VIEWS



<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>


 March 12, 2013.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed


113th Congress                                             Rept. 113-14
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     Part 1

======================================================================
 
       SUPPORTING KNOWLEDGE AND INVESTING IN LIFELONG SKILLS ACT

                                _______
                                

 March 12, 2013.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mr. Kline, from the Committee on Education and the Workforce, submitted 
                             the following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 803]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Education and the Workforce, to whom was 
referred the bill (H.R. 803) to reform and strengthen the 
workforce investment system of the Nation to put Americans back 
to work and make the United States more competitive in the 21st 
century, having considered the same, report favorably thereon 
with an amendment and recommend that the bill as amended do 
pass.
    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Supporting Knowledge and Investing in 
Lifelong Skills Act'' or the ``SKILLS Act''.

SEC. 2. TABLE OF CONTENTS.

  The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.
Sec. 4. Effective date.

      TITLE I--AMENDMENTS TO THE WORKFORCE INVESTMENT ACT OF 1998

              Subtitle A--Workforce Investment Definitions

Sec. 101. Definitions.

      Subtitle B--Statewide and Local Workforce Investment Systems

Sec. 102. Purpose.
Sec. 103. State workforce investment boards.
Sec. 104. State plan.
Sec. 105. Local workforce investment areas.
Sec. 106. Local workforce investment boards.
Sec. 107. Local plan.
Sec. 108. Establishment of one-stop delivery system.
Sec. 109. Identification of eligible providers of training services.
Sec. 110. General authorization.
Sec. 111. State allotments.
Sec. 112. Within State allocations.
Sec. 113. Use of funds for employment and training activities.
Sec. 114. Performance accountability system.
Sec. 115. Authorization of appropriations.

                         Subtitle C--Job Corps

Sec. 116. Job Corps purposes.
Sec. 117. Job Corps definitions.
Sec. 118. Individuals eligible for the Job Corps.
Sec. 119. Recruitment, screening, selection, and assignment of 
enrollees.
Sec. 120. Job Corps centers.
Sec. 121. Program activities.
Sec. 122. Counseling and job placement.
Sec. 123. Support.
Sec. 124. Operations.
Sec. 125. Community participation.
Sec. 126. Workforce councils.
Sec. 127. Technical assistance.
Sec. 128. Special provisions.
Sec. 129. Performance accountability management.

                     Subtitle D--National Programs

Sec. 130. Technical assistance.
Sec. 131. Evaluations.

                       Subtitle E--Administration

Sec. 132. Requirements and restrictions.
Sec. 133. Prompt allocation of funds.
Sec. 134. Fiscal controls; sanctions.
Sec. 135. Reports to Congress.
Sec. 136. Administrative provisions.
Sec. 137. State legislative authority.
Sec. 138. General program requirements.
Sec. 139. Federal agency staff.

                     Subtitle F--State Unified Plan

Sec. 140. State unified plan.

        TITLE II--ADULT EDUCATION AND FAMILY LITERACY EDUCATION

Sec. 201. Amendment.

             TITLE III--AMENDMENTS TO THE WAGNER-PEYSER ACT

Sec. 301. Amendments to the Wagner-Peyser Act.

              TITLE IV--REPEALS AND CONFORMING AMENDMENTS

Sec. 401. Repeals.
Sec. 402. Amendment to the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980.
Sec. 403. Amendments to the Food and Nutrition Act of 2008.
Sec. 404. Amendments to section 412 of the Immigration and Nationality 
Act.
Sec. 405. Amendments relating to the Second Chance Act of 2007.
Sec. 406. Amendments to the Omnibus Crime Control and Safe Streets Act 
of 1968.
Sec. 407. Conforming amendments to the United States Code.
Sec. 408. Conforming amendment to table of contents.

         TITLE V--AMENDMENTS TO THE REHABILITATION ACT OF 1973

Sec. 501. Findings.
Sec. 502. Rehabilitation services administration.
Sec. 503. Definitions.
Sec. 504. State plan.
Sec. 505. Scope of services.
Sec. 506. Standards and indicators.
Sec. 507. Collaboration with industry.
Sec. 508. Reservation for expanded transition services.
Sec. 509. Client assistance program.
Sec. 510. Title III amendments.
Sec. 511. Repeal of title VI.
Sec. 512. Chairperson.
Sec. 513. Authorizations of appropriations.
Sec. 514. Conforming amendments.

SEC. 3. REFERENCES.

  Except as otherwise expressly provided, wherever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the amendment or repeal shall be 
considered to be made to a section or other provision of the Workforce 
Investment Act of 1998 (29 U.S.C. 9201 et seq.).

SEC. 4. EFFECTIVE DATE.

  Except as otherwise provided, this Act and the amendments made by 
this Act shall be effective with respect to fiscal year 2014 and 
succeeding fiscal years.

      TITLE I--AMENDMENTS TO THE WORKFORCE INVESTMENT ACT OF 1998

              Subtitle A--Workforce Investment Definitions

SEC. 101. DEFINITIONS.

  Section 101 (29 U.S.C. 2801) is amended--
          (1) by striking paragraphs (13) and (24);
          (2) by redesignating paragraphs (1) through (12) as 
        paragraphs (3) through (14), and paragraphs (14) through (23) 
        as paragraphs (15) through (24), respectively;
          (3) by striking paragraphs (52) and (53);
          (4) by inserting after ``In this title:'' the following new 
        paragraphs:
          ``(1) Accrued expenditures.--The term `accrued expenditures' 
        means charges incurred by recipients of funds under this title 
        for a given period requiring the provision of funds for goods 
        or other tangible property received; services performed by 
        employees, contractors, subgrantees, subcontractors, and other 
        payees; and other amounts becoming owed under programs assisted 
        under this title for which no current services or performance 
        is required, such as annuities, insurance claims, and other 
        benefit payments.
          ``(2) Administrative costs.--The term `administrative costs' 
        means expenditures incurred by State and local workforce 
        investment boards, direct recipients (including State grant 
        recipients under subtitle B and recipients of awards under 
        subtitles C and D), 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 this title which are not related to the direct 
        provision of workforce investment services (including services 
        to participants and employers). Such costs include both 
        personnel and non-personnel and both direct and indirect.'';
          (5) in paragraph (3) (as so redesignated), by striking 
        ``Except in sections 127 and 132, the'' and inserting ``The'';
          (6) by amending paragraph (5) (as so redesignated) to read as 
        follows:
          ``(5) Area career and technical education school.--The term 
        `area career and technical education school' has the meaning 
        given the term in section 3(3) of the Carl D. Perkins Career 
        and Technical Education Act of 2006 (20 U.S.C. 2302(3)).'';
          (7) in paragraph (6) (as so redesignated), by inserting ``(or 
        such other level as the Governor may establish)'' after ``8th 
        grade level'';
          (8) in paragraph (10)(C) (as so redesignated), by striking 
        ``not less than 50 percent of the cost of the training'' and 
        inserting ``a significant portion of the cost of training, as 
        determined by the local board (or, in the case of an employer 
        in multiple local areas in the State, as determined by the 
        Governor), taking into account the size of the employer and 
        such other factors as the local board determines to be 
        appropriate'';
          (9) in paragraph (11) (as so redesignated)--
                  (A) in subparagraph (A)(ii)(II), by striking 
                ``section 134(c)'' and inserting ``section 121(e)'';
                  (B) in subparagraph (B)(iii)--
                          (i) by striking ``134(d)(4)'' and inserting 
                        ``134(c)(4)''; and
                          (ii) by striking ``intensive services 
                        described in section 134(d)(3)'' and inserting 
                        ``work ready services described in section 
                        117(d)(5)(C)'';
                  (C) in subparagraph (C), by striking ``or'' after the 
                semicolon;
                  (D) in subparagraph (D), by striking the period and 
                inserting ``; or''; and
                  (E) by adding at the end the following:
                  ``(E)(i) is the spouse of a member of the Armed 
                Forces on active duty for a period of more than 30 days 
                (as defined in section 101(d)(2) of title 10, United 
                States Code) who has experienced a loss of employment 
                as a 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 who meets the criteria described in 
                paragraph (12)(B).'';
          (10) in paragraph (12)(A) (as redesignated)--
                  (A) by striking ``and'' after the semicolon and 
                inserting ``or'';
                  (B) by striking ``(A)'' and inserting ``(A)(i)''; and
                  (C) by adding at the end the following:
                  ``(ii) is the spouse of a member of the Armed Forces 
                on active duty for a period of more than 30 days (as 
                defined in section 101(d)(2) of title 10, United States 
                Code) whose family income is significantly reduced 
                because of a 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'';
          (11) in paragraph (13) (as so redesignated), by inserting 
        ``or regional'' after ``local'' each place it appears;
          (12) in paragraph (14) (as so redesignated)--
                  (A) in subparagraph (A), by striking ``section 
                122(e)(3)'' and inserting ``section 122'';
                  (B) by striking subparagraph (B), and inserting the 
                following:
                  ``(B) work ready services, means a provider who is 
                identified or awarded a contract as described in 
                section 117(d)(5)(C); or'';
                  (C) by striking subparagraph (C); and
                  (D) by redesignating subparagraph (D) as subparagraph 
                (C).
          (13) in paragraph (15) (as so redesignated), by striking 
        ``adult or dislocated worker'' and inserting ``individual'';
          (14) in paragraph (25)--
                  (A) in subparagraph (B), by striking ``higher of--'' 
                and all that follows through clause (ii) and inserting 
                ``poverty line for an equivalent period;'';
                  (B) by redesignating subparagraphs (D) through (F) as 
                subparagraphs (E) through (G), respectively; and
                  (C) by inserting after subparagraph (C) the 
                following:
                  ``(D) receives or is eligible to receive free or 
                reduced price lunch under the Richard B. Russell 
                National School Lunch Act (42 U.S.C. 1751 et seq.);'';
          (15) in paragraph (32), by striking ``the Republic of the 
        Marshall Islands, the Federated States of Micronesia,'';
          (16) by amending paragraph (33) to read as follows:
          ``(33) Out-of-school youth.--The term `out-of-school youth' 
        means--
                  ``(A) an at-risk youth who is a school dropout; or
                  ``(B) an at-risk youth who has received a secondary 
                school diploma or its recognized equivalent but is 
                basic skills deficient, unemployed, or 
                underemployed.''.
          (17) in paragraph (38), by striking ``134(a)(1)(A)'' and 
        inserting ``134(a)(1)(B)'';
          (18) by amending paragraph (49) to read as follows:
          ``(49) Veteran.--The term `veteran' has the same meaning 
        given the term in section 2108(1) of title 5, United States 
        Code.'';
          (19) by amending paragraph (50) to read as follows:
          ``(50) 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).'';
          (20) in paragraph (51) by striking ``, and a youth 
        activity''; and
          (21) by adding at the end the following:
          ``(52) At-risk youth.--Except as provided in subtitle C, the 
        term `at-risk youth' means an individual who--
                  ``(A) is not less than age 16 and not more than age 
                24;
                  ``(B) is a low-income individual; and
                  ``(C) is an individual who is one or more of the 
                following:
                          ``(i) a secondary school dropout;
                          ``(ii) a youth in foster care (including 
                        youth aging out of foster care);
                          ``(iii) a youth offender;
                          ``(iv) a youth who is an individual with a 
                        disability; or
                          ``(v) a migrant youth.
          ``(53) Industry or sector partnership.--The term `industry or 
        sector partnership' means a partnership of a State or local 
        board and one or more industries and other entities that have 
        the capability to help the State or local board determine the 
        immediate and long term skilled workforce needs of in-demand 
        industries and other occupations important to the State or 
        local economy, respectively.
          ``(54) Industry-recognized credential.--The term `industry-
        recognized credential' means a credential that is sought or 
        accepted by companies within the industry sector involved, 
        across multiple States, as recognized, preferred, or required 
        for recruitment, screening, or hiring.
          ``(55) Recognized postsecondary credential.--The term 
        `recognized postsecondary credential' means a credential 
        awarded by a training provider or postsecondary educational 
        institution based on completion of all requirements for a 
        program of study, including coursework or tests or other 
        performance evaluations. The term includes an industry-
        recognized credential, a certificate of completion of an 
        apprenticeship, or an associate or baccalaureate degree.
          ``(56) Pay-for-performance contract strategy.--The term `pay-
        for-performance contract strategy' means a strategy in which a 
        contract to provide a program of employment and training 
        activities incorporates--
                  ``(A) the performance outcome described in subclauses 
                (I) through (IV) of section 136(b)(2)(A)(i);
                  ``(B) a fixed amount that will be paid to a provider 
                of such employment and training activities for each 
                program participant who achieves the agreed to levels 
                of performance based upon the outcome measures 
                described in subparagraph (A), within a defined 
                timetable, and may include a bonus payment to such 
                provider which may be used to expand the capacity of 
                such provider;
                  ``(C) the ability for a provider to recoup the costs 
                of training a participant who has not met such outcome 
                measures, but for whom the provider is able to 
                demonstrate that such participant gained specific 
                competencies required for education and career 
                advancement that are, where feasible, tied to industry-
                recognized credentials and related standards, or State 
                licensing requirements; and
                  ``(D) the ability for a provider that does not meet 
                the requirements under section 122(a)(2) to participate 
                in such pay-for-performance contract and to not be 
                required to report on the performance and cost 
                information required under section 122(d).''.

      Subtitle B--Statewide and Local Workforce Investment Systems

SEC. 102. PURPOSE.

  Section 106 (29 U.S.C. 2811) is amended by adding at the end the 
following: ``It is also the purpose of this subtitle to provide 
workforce investment activities in a manner that enhances employer 
engagement, promotes customer choices in the selection of training 
services, and ensures accountability in the use of the taxpayer 
funds.''.

SEC. 103. STATE WORKFORCE INVESTMENT BOARDS.

  Section 111 (29 U.S.C. 2821) is amended--
          (1) in subsection (b)--
                  (A) in paragraph (1)--
                          (i) by striking subparagraph (B);
                          (ii) by redesignating subparagraph (C) as 
                        subparagraph (B); and
                          (iii) in subparagraph (B) (as so 
                        redesignated)--
                                  (I) by amending clause (i)(I), by 
                                striking ``section 117(b)(2)(A)(i)'' 
                                and inserting ``section 117(b)(2)(A)'';
                                  (II) by amending clause (i)(II) to 
                                read as follows:
                                  ``(II) represent businesses, 
                                including large and small businesses, 
                                with immediate and long-term employment 
                                opportunities in in-demand industries 
                                and other occupations important to the 
                                State economy; and'';
                                  (III) by striking clause (iii) and 
                                inserting the following:
                          ``(iii) a State agency official responsible 
                        for economic development; and'';
                                  (IV) by striking clauses (iv) through 
                                (vi);
                                  (V) by amending clause (vii) to read 
                                as follows:
                          ``(vii) such other representatives and State 
                        agency officials as the Governor may designate, 
                        including--
                                  ``(I) members of the State 
                                legislature;
                                  ``(II) representatives of individuals 
                                and organizations that have experience 
                                with respect to youth activities;
                                  ``(III) representatives of 
                                individuals and organizations that have 
                                experience and expertise in the 
                                delivery of workforce investment 
                                activities, including chief executive 
                                officers of community colleges and 
                                community-based organizations within 
                                the State;
                                  ``(IV) representatives of the lead 
                                State agency officials with 
                                responsibility for the programs and 
                                activities that are described in 
                                section 121(b) and carried out by one-
                                stop partners; or
                                  ``(V) representatives of veterans 
                                service organizations.''; and
                                  (VI) by redesignating clause (vii) 
                                (as so amended) as clause (iv); and
                  (B) by amending paragraph (3) to read as follows:
          ``(3) Majority.--A \2/3\ majority of the members of the board 
        shall be representatives described in paragraph (1)(B)(i).'';
          (2) in subsection (c), by striking ``(b)(1)(C)(i)'' and 
        inserting ``(b)(1)(B)(i)'';
          (3) by amending subsection (d) to read as follows:
  ``(d) Functions.--The State board shall assist the Governor of the 
State as follows:
          ``(1) State plan.--Consistent with section 112, develop a 
        State plan.
          ``(2) Statewide workforce development system.--Review and 
        develop statewide policies and programs in the State in a 
        manner that supports a comprehensive Statewide workforce 
        development system that will result in meeting the workforce 
        needs of the State and its local areas. Such review shall 
        include determining whether the State should consolidate 
        additional programs into the Workforce Investment Fund in 
        accordance with section 501(e).
          ``(3) Workforce and labor market information system.--Develop 
        a statewide workforce and labor market information system 
        described in section 15(e) of the Wagner-Peyser Act, which may 
        include using existing information conducted by the State 
        economic development entity or related entity in developing 
        such system.
          ``(4) Employer engagement.--Develop strategies across local 
        areas that meet the needs of employers and support economic 
        growth in the State by enhancing communication, coordination, 
        and collaboration among employers, economic development 
        entities, and service providers.
          ``(5) Designation of local areas.--Designate local areas as 
        required under section 116.
          ``(6) One-stop delivery system.--Identify and disseminate 
        information on best practices for effective operation of one-
        stop centers, including use of innovative business outreach, 
        partnerships, and service delivery strategies.
          ``(7) Program oversight.--Conduct the following program 
        oversight:
                  ``(A) Reviewing and approving local plans under 
                section 118.
                  ``(B) Ensuring the appropriate use and management of 
                the funds provided for State employment and training 
                activities authorized under section 134.
                  ``(C) Preparing an annual report to the Secretary 
                described in section 136(d).
          ``(8) Development of performance measures.--Develop and 
        ensure continuous improvement of comprehensive State 
        performance measures, including State adjusted levels of 
        performance, as described under section 136(b).'';
          (4) by striking subsection (e) and redesignating subsection 
        (f) as subsection (e);
          (5) in subsection (e) (as so redesignated), by inserting ``or 
        participate in any action taken'' after ``vote'';
          (6) by inserting after subsection (e) (as so redesignated), 
        the following:
  ``(f) Staff.--The State board may employ staff to assist in carrying 
out the functions described in subsection (d).''; and
          (7) in subsection (g), by inserting ``electronic means and'' 
        after ``on a regular basis through''.

SEC. 104. STATE PLAN.

  Section 112 (29 U.S.C. 2822)--
          (1) in subsection (a)--
                  (A) by striking ``127 or''; and
                  (B) by striking ``5-year strategy'' and inserting 
                ``3-year strategy'';
          (2) in subsection (b)--
                  (A) by amending paragraph (4) to read as follows:
          ``(4) information describing--
                  ``(A) the economic conditions in the State;
                  ``(B) the immediate and long-term skilled workforce 
                needs of in-demand industries, small businesses, and 
                other occupations important to the State economy;
                  ``(C) the knowledge and skills of the workforce in 
                the State; and
                  ``(D) workforce development activities (including 
                education and training) in the State;'';
                  (B) by amending paragraph (7) to read as follows:
          ``(7) a description of the State criteria for determining the 
        eligibility of training providers in accordance with section 
        122, including how the State will take into account the 
        performance of providers and whether the training programs 
        relate to occupations that are in-demand;'';
                  (C) by amending paragraph (8) to read as follows:
          ``(8)(A) a description of the procedures that will be taken 
        by the State to assure coordination of, and avoid duplication 
        among, the programs and activities identified under section 
        501(b)(2); and
          ``(B) a description of common data collection and reporting 
        processes used for the programs and activities described in 
        subparagraph (A), which are carried out by one-stop partners, 
        including--
                  ``(i) assurances that such processes use quarterly 
                wage records for performance measures described in 
                section 136(b)(2)(A) that are applicable to such 
                programs or activities; or
                  ``(ii) if such wage records are not being used for 
                the performance measures, an identification of the 
                barriers to using such wage records and a description 
                of how the State will address such barriers within one 
                year of the approval of the plan;'';
                  (D) in paragraph (9), by striking ``, including 
                comment by representatives of businesses and 
                representatives of labor organizations,'';
                  (E) in paragraph (11), by striking ``under sections 
                127 and 132'' and inserting ``under section 132'';
                  (F) by striking paragraph (12);
                  (G) by redesignating paragraphs (13) through (18) as 
                paragraphs (12) through (17), respectively;
                  (H) in paragraph (12) (as so redesignated), by 
                striking ``111(f)'' and inserting ``111(e)'';
                  (I) in paragraph (13) (as so redesignated), by 
                striking ``134(c)'' and inserting ``121(e)'';
                  (J) in paragraph (14) (as so redesignated), by 
                striking ``116(a)(5)'' and inserting ``116(a)(4)'';
                  (K) in paragraph (16) (as so redesignated)--
                          (i) in subparagraph (A)--
                                  (I) in clause (ii), by striking ``to 
                                dislocated workers'';
                                  (II) in clause (iii), by striking 
                                ``134(d)(4)'' and inserting 
                                ``134(c)(4)'';
                                  (III) by striking ``and'' at the end 
                                of clause (iii);
                                  (IV) by amending clause (iv) to read 
                                as follows:
                          ``(iv) how the State will serve the 
                        employment and training needs of dislocated 
                        workers (including displaced homemakers), low-
                        income individuals (including recipients of 
                        public assistance such as supplemental 
                        nutrition assistance program benefits pursuant 
                        to the Food and Nutrition Act of 2008 (7 U.S.C. 
                        2011 et seq.)), long-term unemployed 
                        individuals (including individuals who have 
                        exhausted entitlement to State and Federal 
                        unemployment compensation), English learners, 
                        homeless individuals, individuals training for 
                        nontraditional employment, youth (including 
                        out-of-school youth and at-risk youth), older 
                        workers, ex-offenders, migrant and seasonal 
                        farmworkers, refugee and entrants, veterans 
                        (including disabled and homeless veterans), and 
                        Native Americans; and''; and
                                  (V) by adding at the end the 
                                following new clause:
                          ``(v) how the State will--
                                  ``(I) consistent with section 188 and 
                                Executive Order 13217 (42 U.S.C. 12131 
                                note), serve the employment and 
                                training needs of individuals with 
                                disabilities; and
                                  ``(II) consistent with sections 504 
                                and 508 of the Rehabilitation Act of 
                                1973, include the provision of 
                                outreach, intake, assessments, and 
                                service delivery, the development of 
                                performance measures, the training of 
                                staff, and other aspects of 
                                accessibility to programs and services 
                                under this subtitle;''; and
                          (ii) in subparagraph (B), by striking ``to 
                        the extent practicable'' and inserting ``in 
                        accordance with the requirements of the Jobs 
                        for Veterans Act (Public Law 107-288) and the 
                        amendments made by such Act''; and
                  (L) by striking paragraph (17) (as so redesignated) 
                and inserting the following:
          ``(17) a description of the strategies and services that will 
        be used in the State--
                  ``(A) to more fully engage employers, including small 
                businesses and employers in in-demand industries and 
                occupations important to the State economy;
                  ``(B) to meet the needs of employers in the State; 
                and
                  ``(C) to better coordinate workforce development 
                programs with economic development activities;
          ``(18) a description of how the State board will convene (or 
        help to convene) industry or sector partnerships that lead to 
        collaborative planning, resource alignment, and training 
        efforts across multiple firms for a range of workers employed 
        or potentially employed by a targeted industry cluster--
                  ``(A) to encourage industry growth and 
                competitiveness and to improve worker training, 
                retention, and advancement in targeted industry 
                clusters;
                  ``(B) to address the immediate and long-term skilled 
                workforce needs of in-demand industries and other 
                occupations important to the State economy, and
                  ``(C) to address critical skill gaps within and 
                across industries;
          ``(19) a description of how the State will utilize technology 
        to facilitate access to services in remote areas, which may be 
        used throughout the State;
          ``(20) a description of the State strategy and assistance to 
        be provided for encouraging regional cooperation within the 
        State and across State borders, as appropriate;
          ``(21) a description of the actions that will be taken by the 
        State to foster communication, coordination, and partnerships 
        with non-profit organizations (including public libraries, 
        community, faith-based, and philanthropic organizations) that 
        provide employment-related, training, and complementary 
        services, to enhance the quality and comprehensiveness of 
        services available to participants under this title;
          ``(22) a description of the process and methodology for 
        determining--
                  ``(A) one-stop partner program contributions for the 
                cost of the infrastructure of one-stop centers under 
                section 121(h)(1); and
                  ``(B) the formula for allocating such infrastructure 
                funds to local areas under section 121(h)(3);
          ``(23) a description of the strategies and services that will 
        be used in the State to assist at-risk youth and out-of-school 
        youth in acquiring the education and skills, credentials 
        (including recognized postsecondary credentials and industry-
        recognized credentials), and employment experience to succeed 
        in the labor market, including--
                  ``(A) training and internships in in-demand 
                industries or occupations important to the State and 
                local economy;
                  ``(B) dropout recovery activities that are designed 
                to lead to the attainment of a regular secondary school 
                diploma or its recognized equivalent, or other State 
                recognized equivalent (including recognized alternative 
                standards for individuals with disabilities); and
                  ``(C) activities combining remediation of academic 
                skills, work readiness training, and work experience, 
                and including linkages to postsecondary education and 
                training and career-ladder employment; and
          ``(24) a description of--
                  ``(A) how the State will furnish employment, 
                training, supportive, and placement services to 
                veterans, including disabled and homeless veterans;
                  ``(B) the strategies and services that will be used 
                in the State to assist and expedite reintegration of 
                homeless veterans into the labor force; and
                  ``(C) the veteran population to be served in the 
                State.'';
          (3) in subsection (c), by striking ``period, that--'' all 
        that follows through paragraph (2) and inserting ``period, that 
        the plan is inconsistent with the provisions of this title.''; 
        and
          (4) in subsection (d), by striking ``5-year'' and inserting 
        ``3-year''.

SEC. 105. LOCAL WORKFORCE INVESTMENT AREAS.

  Section 116 (29 U.S.C. 2831) is amended--
          (1) in subsection (a)--
                  (A) in paragraph (1)--
                          (i) in subparagraph (A)--
                                  (I) by striking ``Except as provided 
                                in subsection (b), and consistent with 
                                paragraphs (2), (3), and (4), in'' and 
                                inserting ``In''; and
                                  (II) by striking ``127 or''; and
                          (ii) by amending subparagraph (B) to read as 
                        follows:
                  ``(B) Considerations.--In making the designation of 
                local areas, the Governor shall take into consideration 
                the following:
                          ``(i) The extent to which such local areas 
                        are consistent with labor market areas.
                          ``(ii) The extent to which labor market areas 
                        align with economic development regions.
                          ``(iii) Whether such local areas have the 
                        appropriate education and training providers to 
                        meet the needs of the local workforce.
                          ``(iv) The distance that individuals will 
                        need to travel to receive services provided in 
                        such local areas.'';
                  (B) by amending paragraph (2) to read as follows:
          ``(2) Technical assistance.--The Secretary shall, if 
        requested by the Governor of a State, provide the State with 
        technical assistance in making the determinations required 
        under paragraph (1). The Secretary shall not issue regulations 
        governing determinations to be made under paragraph (1).'';
                  (C) by striking paragraph (3) and inserting the 
                following:
          ``(3) Designation on recommendation of state board.--The 
        Governor may approve a request from any unit of general local 
        government (including a combination of such units) for 
        designation as a local area under paragraph (1) if the State 
        board determines, taking into account the factors described in 
        clauses (i) through (iv) of paragraph (1)(B), and recommends to 
        the Governor, that such area shall be so designated.'';
                  (D) by striking paragraph (4); and
                  (E) by redesignating paragraph (5) as paragraph (4);
          (2) by amending subsection (b) to read as follows:
  ``(b) Single States.--Consistent with subsection (a)(1)(B), the 
Governor may designate a State as a single State local area for the 
purposes of this title.''; and
          (3) in subsection (c)--
                  (A) in paragraph (1), by adding at the end the 
                following: ``The State may require the local boards for 
                the designated region to prepare a single regional plan 
                that incorporates the elements of the local plan under 
                section 118 and that is submitted and approved in lieu 
                of separate local plans under such section.''; and
                  (B) in paragraph (2), by striking ``employment 
                statistics'' and inserting ``workforce and labor market 
                information''.

SEC. 106. LOCAL WORKFORCE INVESTMENT BOARDS.

  Section 117 (29 U.S.C. 2832) is amended--
          (1) in subsection (b)--
                  (A) in paragraph (2)--
                          (i) in subparagraph (A)--
                                  (I) by striking ``include--'' and all 
                                that follows through 
                                ``representatives'' and inserting 
                                ``include representatives'';
                                  (II) by striking clauses (ii) through 
                                (vi);
                                  (III) by redesignating subclauses (I) 
                                through (III) as clauses (i) through 
                                (iii), respectively (and by moving the 
                                margins of such clauses 2 ems to the 
                                left);
                                  (IV) by striking clause (ii) (as so 
                                redesignated) and inserting the 
                                following:
                          ``(ii) represent businesses, including large 
                        and small businesses, with immediate and long-
                        term employment opportunities in in-demand 
                        industries and other occupations important to 
                        the local economy; and''; and
                                  (V) by striking the semicolon at the 
                                end of clause (iii) (as so 
                                redesignated) and inserting ``; and''; 
                                and
                          (ii) by amending subparagraph (B) to read as 
                        follows:
                  ``(B) may include such other individuals or 
                representatives of entities as the chief elected 
                official in the local area may determine to be 
                appropriate, including--
                          ``(i) a superintendent of the local secondary 
                        school system, the president or chief executive 
                        officer of a postsecondary educational 
                        institution (including a community college, 
                        where such an entity exists), or an 
                        administrator of local entities providing adult 
                        education and literacy activities;
                          ``(ii) representatives of community-based 
                        organizations (including organizations 
                        representing individuals with disabilities and 
                        veterans, for a local area in which such 
                        organizations are present); or
                          ``(iii) representatives of veterans service 
                        organizations.'';
                  (B) in paragraph (4)--
                          (i) by striking ``A majority'' and inserting 
                        ``A \2/3\ majority''; and
                          (ii) by striking ``(2)(A)(i)'' and inserting 
                        ``(2)(A)''; and
                  (C) in paragraph (5) by striking ``(2)(A)(i)'' and 
                inserting ``(2)(A)'';
          (2) by striking subsection (c)(1)(C);
          (3) by amending subsection (d) to read as follows:
  ``(d) Functions of Local Board.--The functions of the local board 
shall include the following:
          ``(1) Local plan.--Consistent with section 118, each local 
        board, in partnership with the chief elected official for the 
        local area involved, shall develop and submit a local plan to 
        the Governor.
          ``(2) Workforce research and regional labor market 
        analysis.--
                  ``(A) In general.--The local board shall--
                          ``(i) conduct, and regularly update, an 
                        analysis of--
                                  ``(I) the economic conditions in the 
                                local area;
                                  ``(II) the immediate and long-term 
                                skilled workforce needs of in-demand 
                                industries and other occupations 
                                important to the local economy;
                                  ``(III) the knowledge and skills of 
                                the workforce in the local area; and
                                  ``(IV) workforce development 
                                activities (including education and 
                                training) in the local area; and
                          ``(ii) assist the Governor in developing the 
                        statewide workforce and labor market 
                        information system described in section 15(e) 
                        of the Wagner-Peyser Act.
                  ``(B) Existing analysis.--A local board shall use 
                existing analysis by the local economic development 
                entity or related entity in order to carry out 
                requirements of subparagraph (A)(i).
          ``(3) Employer engagement.--The local Board shall meet the 
        needs of employers and support economic growth in the local 
        area by enhancing communication, coordination, and 
        collaboration among employers, economic development entities, 
        and service providers.
          ``(4) Budget and administration.--
                  ``(A) Budget.--
                          ``(i) In general.--The local board shall 
                        develop a budget for the activities of the 
                        local board in the local area, consistent with 
                        the requirements of this subsection.
                          ``(ii) Training reservation.--In developing a 
                        budget under clause (i), the local board shall 
                        reserve a percentage of funds to carry out the 
                        activities specified in section 134(c)(4). The 
                        local board shall use the analysis conducted 
                        under paragraph (2)(A)(i) to determine the 
                        appropriate percentage of funds to reserve 
                        under this clause.
                  ``(B) Administration.--
                          ``(i) Grant recipient.--
                                  ``(I) In general.--The chief elected 
                                official in a local area shall serve as 
                                the local grant recipient for, and 
                                shall be liable for any misuse of, the 
                                grant funds allocated to the local area 
                                under section 133, unless the chief 
                                elected official reaches an 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) Staff.--The local board may employ 
                        staff to assist in carrying out the functions 
                        described in this subsection.
                          ``(iii) Grants and donations.--The local 
                        board may solicit and accept grants and 
                        donations from sources other than Federal funds 
                        made available under this Act.
          ``(5) Selection of operators and providers.--
                  ``(A) Selection of one-stop operators.--Consistent 
                with section 121(d), the local board, with the 
                agreement of the chief elected official--
                          ``(i) shall designate or certify one-stop 
                        operators as described in section 121(d)(2)(A); 
                        and
                          ``(ii) may terminate for cause the 
                        eligibility of such operators.
                  ``(B) Identification of eligible training service 
                providers.--Consistent with this subtitle, the local 
                board shall identify eligible providers of training 
                services described in section 134(c)(4) in the local 
                area, annually review the outcome of individual 
                training providers using the criteria under section 
                122(b)(2), and designate providers in the local area 
                who have demonstrated the highest level of success with 
                respect to such indicators as priority providers for 
                the following program year.
                  ``(C) Identification of eligible providers of work 
                ready services.--If the one-stop operator does not 
                provide the services described in section 134(c)(2) in 
                the local area, the local board shall identify eligible 
                providers of such services in the local area by 
                awarding contracts.
          ``(6) Program oversight.--The local board, in partnership 
        with the chief elected official, shall be responsible for--
                  ``(A) ensuring the appropriate use and management of 
                the funds provided for local employment and training 
                activities authorized under section 134(b); and
                  ``(B) conducting oversight of the one-stop delivery 
                system in the local area authorized under section 121.
          ``(7) Negotiation of local performance measures.--The local 
        board, the chief elected official, and the Governor shall 
        negotiate and reach agreement on local performance measures as 
        described in section 136(c).
          ``(8) Technology improvements.--The local board shall develop 
        strategies for technology improvements to facilitate access to 
        services authorized under this subtitle and carried out in the 
        local area, including in remote areas.'';
          (4) in subsection (e)--
                  (A) by inserting ``electronic means and'' after 
                ``regular basis through''; and
                  (B) by striking ``and the award of grants or 
                contracts to eligible providers of youth activities,'';
          (5) in subsection (f)--
                  (A) in paragraph (1)(A), by striking ``section 
                134(d)(4)'' and inserting ``section 134(c)(4)''; and
                  (B) by striking paragraph (2) and inserting the 
                following:
          ``(2) Work ready services, designation, or certification as 
        one-stop operators.--A local board may provide work ready 
        services described in section 134(c)(2) through a one-stop 
        delivery system described in section 121 or be designated or 
        certified as a one-stop operator only with the agreement of the 
        chief elected official and the Governor.'';
          (6) in subsection (g)(1), by inserting ``or participate in 
        any action taken'' after ``vote''; and
          (7) by striking subsections (h) and (i).

SEC. 107. LOCAL PLAN.

  Section 118 (29 U.S.C. 2833) is amended--
          (1) in subsection (a), by striking ``5-year'' and inserting 
        ``3-year'';
          (2) by amending subsection (b) to read as follows:
  ``(b) Contents.--The local plan shall include--
          ``(1) a description of the analysis of the local area's 
        economic and workforce conditions conducted under section 
        117(d)(2)(A)(i), and an assurance that the local board will use 
        such analysis to carry out the activities under this subtitle;
          ``(2) a description of the one-stop delivery system in the 
        local area, including--
                  ``(A) a description of how the local board will 
                ensure--
                          ``(i) the continuous improvement of eligible 
                        providers of services through the system; and
                          ``(ii) that such providers meet the 
                        employment needs of local businesses and 
                        participants; and
                  ``(B) a description of how the local board will 
                facilitate access to services provided through the one-
                stop delivery system consistent with section 117(d)(8);
          ``(3) a description of the strategies and services that will 
        be used in the local area--
                  ``(A) to more fully engage employers, including small 
                businesses and employers in in-demand industries and 
                occupations important to the local economy;
                  ``(B) to meet the needs of employers in the local 
                area;
                  ``(C) to better coordinate workforce development 
                programs with economic development activities; and
                  ``(D) to better coordinate workforce development 
                programs with employment, training, and literacy 
                services carried out by nonprofit organizations, 
                including public libraries, as appropriate;
          ``(4) a description of how the local board will convene (or 
        help to convene) industry or sector partnerships that lead to 
        collaborative planning, resource alignment, and training 
        efforts across multiple firms for a range of workers employed 
        or potentially employed by a targeted industry cluster--
                  ``(A) to encourage industry growth and 
                competitiveness and to improve worker training, 
                retention, and advancement in targeted industry 
                clusters;
                  ``(B) to address the immediate and long-term skilled 
                workforce needs of in-demand industries, small 
                businesses, and other occupations important to the 
                local economy; and
                  ``(C) to address critical skill gaps within and 
                across industries;
          ``(5) a description of how the funds reserved under section 
        117(d)(4)(A)(ii) will be used to carry out activities described 
        in section 134(c)(4);
          ``(6) a description of how the local board will coordinate 
        workforce investment activities carried out in the local area 
        with statewide activities, as appropriate;
          ``(7) a description of how the local area will--
                  ``(A) coordinate activities with the local area's 
                disability community and with services provided 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)) by local educational agencies 
                serving such local area to make available 
                comprehensive, high-quality services to individuals 
                with disabilities;
                  ``(B) consistent with section 188 and Executive Order 
                13217 (42 U.S.C. 12131 note), serve the employment and 
                training needs of individuals with disabilities; and
                  ``(C) consistent with sections 504 and 508 of the 
                Rehabilitation Act of 1973, include the provision of 
                outreach, intake, assessments, and service delivery, 
                the development of performance measures, the training 
                of staff, and other aspects of accessibility to 
                programs and services under this subtitle;
          ``(8) a description of the local levels of performance 
        negotiated with the Governor and chief elected official 
        pursuant to section 136(c), to be--
                  ``(A) used to measure the performance of the local 
                area; and
                  ``(B) used by the local board for measuring 
                performance of the local fiscal agent (where 
                appropriate), eligible providers, and the one-stop 
                delivery system, in the local area;
          ``(9) a description of the process used by the local board, 
        consistent with subsection (c), to provide an opportunity for 
        public comment prior to submission of the plan;
          ``(10) a description of how the local area will serve the 
        employment and training needs of dislocated workers (including 
        displaced homemakers), low-income individuals (including 
        recipients of public assistance such as the Supplemental 
        Nutrition Assistance Program), long-term unemployed individuals 
        (including individuals who have exhausted entitlement to State 
        and Federal unemployment compensation), English learners, 
        homeless individuals, individuals training for nontraditional 
        employment, youth (including out-of-school youth and at-risk 
        youth), older workers, ex-offenders, migrant and seasonal 
        farmworkers, refugee and entrants, veterans (including disabled 
        veterans and homeless veterans), and Native Americans;
          ``(11) an identification of the entity responsible for the 
        disbursal of grant funds described in subclause (III) of 
        section 117(d)(4)(B)(i), as determined by the chief elected 
        official or the Governor under such section;
          ``(12) a description of the strategies and services that will 
        be used in the local area to assist at-risk youth and out-of-
        school youth in acquiring the education and skills, credentials 
        (including recognized postsecondary credentials and industry-
        recognized credentials), and employment experience to succeed 
        in the labor market, including--
                  ``(A) training and internships in in-demand 
                industries or occupations important to the local 
                economy;
                  ``(B) dropout recovery activities that are designed 
                to lead to the attainment of a regular secondary school 
                diploma or its recognized equivalent, or other State 
                recognized equivalent (including recognized alternative 
                standards for individuals with disabilities); and
                  ``(C) activities combining remediation of academic 
                skills, work readiness training, and work experience, 
                and including linkages to postsecondary education and 
                training and career-ladder employment;
          ``(13) a description of--
                  ``(A) how the local area will furnish employment, 
                training, supportive, and placement services to 
                veterans, including disabled and homeless veterans;
                  ``(B) the strategies and services that will be used 
                in the local area to assist and expedite reintegration 
                of homeless veterans into the labor force; and
                  ``(C) the veteran population to be served in the 
                local area;
          ``(14) a description of--
                  ``(A) the duties assigned to the veteran employment 
                specialist consistent with the requirements of section 
                134(f);
                  ``(B) the manner in which the veteran employment 
                specialist is integrated into the One-Stop Career 
                System described in section 121;
                  ``(C) the date on which the veteran employment 
                specialist was assigned; and
                  ``(D) whether the veteran employment specialist has 
                satisfactorily competed such training by the National 
                Veterans' Employment and Training Services Institute; 
                and
          ``(15) such other information as the Governor may require.'';
          (3) in subsection (c)(1), by striking ``such means'' and 
        inserting ``electronic means such''; and
          (4) in subsection (c)(2), by striking ``, including 
        representatives of business and representatives of labor 
        organizations,''.

SEC. 108. ESTABLISHMENT OF ONE-STOP DELIVERY SYSTEM.

  Section 121 (29 U.S.C. 2841) is amended--
          (1) in subsection (b)--
                  (A) by striking subparagraph (A) of paragraph (1) and 
                inserting the following:
                  ``(A) Roles and responsibilities of one-stop 
                partners.--Each entity that carries out a program or 
                activities described in subparagraph (B) shall--
                          ``(i) provide access through the one-stop 
                        delivery system to the program and activities 
                        carried out by the entity, including making the 
                        work ready services described in section 
                        134(c)(2) that are applicable to the program of 
                        the entity available at one-stop centers (in 
                        addition to any other appropriate locations);
                          ``(ii) use a portion of the funds available 
                        to the program of the entity to maintain the 
                        one-stop delivery system, including payment of 
                        the infrastructure costs of one-stop centers in 
                        accordance with subsection (h);
                          ``(iii) enter into a local memorandum of 
                        understanding with the local board relating to 
                        the operation of the one-stop delivery system 
                        that meets the requirements of subsection (c); 
                        and
                          ``(iv) participate in the operation of the 
                        one-stop delivery system consistent with the 
                        terms of the memorandum of understanding, the 
                        requirements of this title, and the 
                        requirements of the Federal laws authorizing 
                        the programs carried out by the entity.'';
                  (B) in paragraph (1)(B)--
                          (i) by striking clauses (ii), (v), and (vi);
                          (ii) by redesignating clauses (iii) and (iv) 
                        as clauses (ii) and (iii), respectively;
                          (iii) by redesignating clauses (vii) through 
                        (xii) as clauses (iv) through (ix), 
                        respectively;
                          (iv) in clause (viii), as so redesignated, by 
                        striking ``and'' at the end;
                          (v) in clause (ix), as so redesignated, by 
                        striking the period and inserting ``; and''; 
                        and
                          (vi) by adding at the end the following:
                          ``(x) subject to subparagraph (C), programs 
                        authorized under part A of title IV of the 
                        Social Security Act (42 U.S.C. 601 et seq.).'';
                  (C) by inserting after paragraph (1)(B) the 
                following:
                  ``(C) Determination by the governor.--Each entity 
                carrying out a program described in subparagraph (B)(x) 
                shall carry out the required partner activities 
                described in subparagraph (A) unless the Governor of 
                the State in which the local area is located provides 
                the Secretary and Secretary of Health and Human 
                Services written notice of a determination by the 
                Governor that such entities shall not carry out such 
                required partner activities.''; and
                  (D) in paragraph (2)--
                          (i) in subparagraph (A)(i), by striking 
                        ``section 134(d)(2)'' and inserting ``section 
                        134(c)(2)''; and
                          (ii) in subparagraph (B)--
                                  (I) by striking clauses (i), (ii), 
                                and (v);
                                  (II) in clause (iv), by striking 
                                ``and'' at the end;
                                  (III) by redesignating clauses (iii) 
                                and (iv) as clauses (i) and (ii), 
                                respectively; and
                                  (IV) by adding at the end the 
                                following:
                          ``(iii) employment and training programs 
                        administered by the Commissioner of the Social 
                        Security Administration;
                          ``(iv) employment and training programs 
                        carried out by the Administrator of the Small 
                        Business Administration;
                          ``(v) employment, training, and literacy 
                        services carried out by public libraries; and
                          ``(vi) other appropriate Federal, State, or 
                        local programs, including programs in the 
                        private sector.'';
          (2) in subsection (c)(2), by amending subparagraph (A) to 
        read as follows:
                  ``(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 through such system;
                          ``(ii) how the costs of such services and the 
                        operating costs of such system will be funded, 
                        through cash and in-kind contributions, to 
                        provide a stable and equitable funding stream 
                        for ongoing one-stop system operations, 
                        including the funding of the infrastructure 
                        costs of one-stop centers in accordance with 
                        subsection (h);
                          ``(iii) methods of referral of individuals 
                        between the one-stop operator and the one-stop 
                        partners for appropriate services and 
                        activities, including referrals for 
                        nontraditional employment; and
                          ``(iv) the duration of the memorandum of 
                        understanding and the procedures for amending 
                        the memorandum during the term 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'';
          (3) in subsection (d)--
                  (A) in the heading for paragraph (1), by striking 
                ``Designation and certification'' and inserting ``Local 
                designation and certification'';
                  (B) in paragraph (2)--
                          (i) by striking ``section 134(c)'' and 
                        inserting ``subsection (e)'';
                          (ii) by amending subparagraph (A) to read as 
                        follows:
                  ``(A) shall be designated or certified as a one-stop 
                operator through a competitive process; and''; and
                          (iii) in subparagraph (B), by striking clause 
                        (ii) and redesignating clauses (iii) through 
                        (vi) as clauses (ii) through (v), respectively; 
                        and
                  (C) in paragraph (3), by striking ``vocational'' and 
                inserting ``career and technical'';
          (4) by amending subsection (e) to read as follows:
  ``(e) Establishment of One-Stop Delivery System.--
          ``(1) In general.--There shall be established in a State that 
        receives an allotment under section 132(b) a one-stop delivery 
        system, which shall--
                  ``(A) provide the work ready services described in 
                section 134(c)(2);
                  ``(B) provide access to training services as 
                described in section 134(c)(4), including serving as 
                the point of access to career enhancement accounts for 
                training services to participants in accordance with 
                paragraph (4)(F) of such section;
                  ``(C) provide access to the activities carried out 
                under section 134(d), if any;
                  ``(D) provide access to programs and activities 
                carried out by one-stop partners that are described in 
                subsection (b) of this section; and
                  ``(E) provide access to the information described in 
                section 15(e) of the Wagner-Peyser Act (29 U.S.C. 49l-
                2(e)).
          ``(2) One-stop delivery.--At a minimum, the one-stop delivery 
        system--
                  ``(A) shall make each of the programs, services, and 
                activities described in paragraph (1) accessible at not 
                less than one 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 one 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 
                                one 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 
                                work ready services will be available 
                                regardless of where the individuals 
                                initially enter the statewide workforce 
                                investment system, including 
                                information made available through an 
                                access point described in subclause 
                                (I).
          ``(3) Specialized centers.--The centers and sites described 
        in paragraph (2) may have a specialization in addressing 
        special needs.''; and
          (5) by adding at the end the following:
  ``(g) Certification of One-Stop Centers.--
          ``(1) In general.--
                  ``(A) In general.--The State board shall establish 
                objective procedures and criteria for certifying, at 
                least once every 3 years, one-stop centers for the 
                purpose of awarding the one-stop infrastructure funding 
                described in subsection (h).
                  ``(B) Criteria.--The criteria for certification under 
                this subsection shall include--
                          ``(i) meeting all of the expected levels of 
                        performance for each of the core indicators of 
                        performance as outlined in the State plan under 
                        section 112;
                          ``(ii) meeting minimum standards relating to 
                        the scope and degree of service integration 
                        achieved by the centers involving the programs 
                        provided by the one-stop partners; and
                          ``(iii) meeting minimum standards relating to 
                        how the centers ensure that eligible providers 
                        meet the employment needs of local employers 
                        and participants.
                  ``(C) Effect of certification.--One-stop centers 
                certified under this subsection shall be eligible to 
                receive the infrastructure grants authorized under 
                subsection (h).
          ``(2) Local boards.--Consistent with the criteria developed 
        by the State, the local board may develop additional criteria 
        of higher standards to respond to local labor market and 
        demographic conditions and trends.
  ``(h) One-Stop Infrastructure Funding.--
          ``(1) Partner contributions.--
                  ``(A) Provision of funds.--Notwithstanding any other 
                provision of law, as determined under subparagraph (B), 
                a portion of the Federal funds provided to the State 
                and areas within the State under the Federal laws 
                authorizing the one-stop partner programs described in 
                subsection (b)(1)(B) and participating additional 
                partner programs described in (b)(2)(B) for a fiscal 
                year shall be provided to the Governor by such programs 
                to carry out this subsection.
                  ``(B) Determination of governor.--
                          ``(i) In general.--Subject to subparagraph 
                        (C), the Governor, in consultation with the 
                        State board, shall determine the portion of 
                        funds to be provided under subparagraph (A) by 
                        each one-stop partner and in making such 
                        determination shall consider the proportionate 
                        use of the one-stop centers by each partner, 
                        the costs of administration for purposes not 
                        related to one-stop centers for each partner, 
                        and other relevant factors described in 
                        paragraph (3).
                          ``(ii) Special rule.--In those States where 
                        the State constitution places policy-making 
                        authority that is independent of the authority 
                        of the Governor in an entity or official with 
                        respect to the funds provided for adult 
                        education and literacy activities authorized 
                        under title II of this Act and for 
                        postsecondary career education activities 
                        authorized under the Carl D. Perkins Career and 
                        Technical Education Act, the determination 
                        described in clause (i) with respect to such 
                        programs shall be made by the Governor with the 
                        appropriate entity or official with such 
                        independent policy-making authority.
                          ``(iii) Appeal by one-stop partners.--The 
                        Governor shall establish a procedure for the 
                        one-stop partner administering a program 
                        described in subsection (b) to appeal a 
                        determination regarding the portion of funds to 
                        be contributed under this paragraph on the 
                        basis that such determination is inconsistent 
                        with the criteria described in the State plan 
                        or with the requirements of this paragraph. 
                        Such procedure shall ensure prompt resolution 
                        of the appeal.
                  ``(C) Limitations.--
                          ``(i) Provision from administrative funds.--
                        The funds provided under this paragraph by each 
                        one-stop partner shall be provided only from 
                        funds available for the costs of administration 
                        under the program administered by such partner, 
                        and shall be subject to the limitations with 
                        respect to the portion of funds under such 
                        programs that may be used for administration.
                          ``(ii) Federal direct spending programs.--
                        Programs that are Federal direct spending under 
                        section 250(c)(8) of the Balanced Budget and 
                        Emergency Deficit Control Act of 1985 (2 U.S.C. 
                        900(c)(8)) shall not, for purposes of this 
                        paragraph, be required to provide an amount in 
                        excess of the amount determined to be 
                        equivalent to the proportionate use of the one-
                        stop centers by such programs in the State.
          ``(2) Allocation by governor.--From the funds provided under 
        paragraph (1), the Governor shall allocate funds to local areas 
        in accordance with the formula established under paragraph (3) 
        for the purposes of assisting in paying the costs of the 
        infrastructure of one-stop centers certified under subsection 
        (g).
          ``(3) Allocation formula.--The State board shall develop a 
        formula to be used by the Governor to allocate the funds 
        described in paragraph (1). The formula shall include such 
        factors as the State board determines are appropriate, which 
        may include factors such as the number of centers in the local 
        area that have been certified, the population served by such 
        centers, and the performance of such centers.
          ``(4) Costs of infrastructure.--For purposes of this 
        subsection, the term `costs of infrastructure' means the 
        nonpersonnel costs that are necessary for the general operation 
        of a one-stop center, including the rental costs of the 
        facilities, the costs of utilities and maintenance, and 
        equipment (including assistive technology for individuals with 
        disabilities).
  ``(i) Other Funds.--
          ``(1) In general.--In addition to the funds provided to carry 
        out subsection (h), a portion of funds made available under 
        Federal law authorizing the one-stop partner programs described 
        in subsection (b)(1)(B) and participating additional partner 
        programs described in subsection (b)(2)(B), or the noncash 
        resources available under such programs shall be used to pay 
        the costs relating to the operation of the one-stop delivery 
        system that are not paid for from the funds provided under 
        subsection (h), to the extent not inconsistent with the Federal 
        law involved including--
                  ``(A) infrastructure costs that are in excess of the 
                funds provided under subsection (h);
                  ``(B) common costs that are in addition to the costs 
                of infrastructure; and
                  ``(C) the costs of the provision of work ready 
                services applicable to each program.
          ``(2) Determination and guidance.--The method for determining 
        the appropriate portion of funds and noncash resources to be 
        provided by each program under paragraph (1) shall be 
        determined as part of the memorandum of understanding under 
        subsection (c). The State board shall provide guidance to 
        facilitate the determination of appropriate allocation of the 
        funds and noncash resources in local areas.''.

SEC. 109. IDENTIFICATION OF ELIGIBLE PROVIDERS OF TRAINING SERVICES.

  Section 122 (29 U.S.C. 2842) is amended to read as follows:

``SEC. 122. IDENTIFICATION OF ELIGIBLE PROVIDERS OF TRAINING SERVICES.

  ``(a) Eligibility.--
          ``(1) In general.--The Governor, after consultation with the 
        State board, shall establish criteria and procedures regarding 
        the eligibility of providers of training services described in 
        section 134(c)(4) to receive funds provided under section 
        133(b) for the provision of such training services.
          ``(2) Providers.--Subject to the provisions of this section, 
        to be eligible to receive the funds provided under section 
        133(b) for the provision of training services, the provider 
        shall be--
                  ``(A) a postsecondary educational institution that--
                          ``(i) is eligible to receive Federal funds 
                        under title IV of the Higher Education Act of 
                        1965 (20 U.S.C. 1070 et seq.); and
                          ``(ii) provides a program that leads to a 
                        recognized postsecondary credential;
                  ``(B) an entity that carries out programs under the 
                Act of August 16, 1937 (commonly known as the `National 
                Apprenticeship Act'; 50 Stat. 664, chapter 663; 29 
                U.S.C. 50 et seq.); or
                  ``(C) another public or private provider of a program 
                of training services.
          ``(3) Inclusion in list of eligible providers.--A provider 
        described in subparagraph (A) or (C) of paragraph (2) shall 
        comply with the criteria 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 on the list of 
        eligible providers of training services described in subsection 
        (d) for so long as the provider remains certified by the 
        Secretary of Labor to carry out the programs described in 
        paragraph (2)(B).
  ``(b) Criteria.--
          ``(1) In general.--The criteria established pursuant to 
        subsection (a) shall take into account--
                  ``(A) the performance of providers of training 
                services with respect to the performance measures 
                described in section 136 and other matters for which 
                information is required under paragraph (2) and other 
                appropriate measures of performance outcomes for those 
                participants receiving training services under this 
                subtitle;
                  ``(B) whether the training programs of such providers 
                relate to occupations that are in demand;
                  ``(C) the need to ensure access to training services 
                throughout the State, including in rural areas;
                  ``(D) the ability of providers to offer programs that 
                lead to a recognized postsecondary credential;
                  ``(E) the information such providers are required to 
                report to State agencies with respect to other Federal 
                and State programs (other than the program carried out 
                under this subtitle), including one-stop partner 
                programs; and
                  ``(F) such other factors as the Governor determines 
                are appropriate.
          ``(2) Information.--The criteria established by the Governor 
        shall require that a provider of training services submit 
        appropriate, accurate, and timely information to the State for 
        purposes of carrying out subsection (d), with respect to 
        participants receiving training services under this subtitle in 
        the applicable program, including--
                  ``(A) information on recognized postsecondary 
                credentials received by such participants;
                  ``(B) information on costs of attendance for such 
                participants;
                  ``(C) information on the program completion rate for 
                such participants; and
                  ``(D) information on the performance of the provider 
                with respect to the performance measures described in 
                section 136 for such participants.
          ``(3) Renewal.--The criteria established by the Governor 
        shall also provide for a review every 3 years and renewal of 
        eligibility under this section for providers of training 
        services.
          ``(4) Local criteria.--A local board in the State may 
        establish criteria in addition to the criteria established by 
        the Governor, or may require higher levels of performance than 
        required under the criteria established by the Governor, for 
        purposes of determining the eligibility of providers of 
        training services to receive funds described in subsection (a) 
        to provide the services in the local area involved.
          ``(5) Limitation.--In carrying out the requirements of this 
        subsection, no personally identifiable information regarding a 
        student, including Social Security number, student 
        identification number, or other identifier, may be disclosed 
        without the prior written consent of the parent or eligible 
        student in compliance with section 444 of the General Education 
        Provisions Act (20 U.S.C. 1232g).
  ``(c) Procedures.--The procedures established under subsection (a) 
shall--
          ``(1) identify--
                  ``(A) the application process for a provider of 
                training services to become eligible to receive funds 
                under section 133(b) for the provision of training 
                services; and
                  ``(B) the respective roles of the State and local 
                areas in receiving and reviewing applications and in 
                making determinations of eligibility based on the 
                criteria established under this section; and
          ``(2) 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.
  ``(d) Information To Assist Participants in Choosing Providers.--In 
order to facilitate and assist participants under chapter 5 in choosing 
providers of training services, the Governor shall ensure that an 
appropriate list or lists of providers determined eligible under this 
section in the State, including information provided under subsection 
(b)(2) with respect to such providers, is provided to the local boards 
in the State and is made available to such participants and to members 
of the public through the one-stop delivery system in the State.
  ``(e) Enforcement.--
          ``(1) In general.--The criteria and 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 criteria or procedures, that a 
                provider of training services, or individual providing 
                information on behalf of the provider, intentionally 
                supplied inaccurate information under this section, the 
                eligibility of such provider to receive funds under 
                chapter 5 shall be terminated for a period of time that 
                is not less than 2 years.
                  ``(B) Substantial violations.--Upon a determination, 
                by an individual or entity specified in the criteria or 
                procedures, that a provider of training services 
                substantially violated any requirement under this 
                title, the eligibility of such provider to receive 
                funds under the program involved shall be terminated 
                for a period of time that is not less than 10 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 during a period of 
                noncompliance described in such subparagraph.
          ``(2) Construction.--Paragraph (1) shall be construed to 
        provide remedies and penalties that supplement, but do not 
        supplant, other civil and criminal remedies and penalties.
  ``(f) Agreements With Other States.--States may enter into 
agreements, on a reciprocal basis, to permit eligible providers of 
training services to accept career enhancement accounts provided in 
another State.
  ``(g) Recommendations.--In developing the criteria, procedures, and 
information required under this section, the Governor shall solicit and 
take into consideration the recommendations of local boards and 
providers of training services within the State.
  ``(h) Opportunity To Submit Comments.--During the development of the 
criteria, procedures, requirements for information, and the list of 
eligible providers required under this section, the Governor shall 
provide an opportunity for interested members of the public to submit 
comments regarding such criteria, procedures, and information.
  ``(i) On-the-Job Training or Customized Training Exception.--
          ``(1) In general.--Providers of on-the-job training or 
        customized training shall not be subject to the requirements of 
        subsections (a) through (d).
          ``(2) Collection and dissemination of information.--A one-
        stop operator in a local area shall collect such performance 
        information from on-the-job training and customized training 
        providers as the Governor may require, determine whether the 
        providers meet such performance criteria as the Governor may 
        require, and disseminate information identifying 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.''.

SEC. 110. GENERAL AUTHORIZATION.

  Chapter 5 of subtitle B of title I is amended--
          (1) by striking the heading for chapter 5 and inserting the 
        following: ``EMPLOYMENT AND TRAINING ACTIVITIES''; and
          (2) in section 131 (29 U.S.C. 2861)--
                  (A) by striking ``paragraphs (1)(B) and (2)(B) of''; 
                and
                  (B) by striking ``adults, and dislocated workers,'' 
                and inserting ``individuals''.

SEC. 111. STATE ALLOTMENTS.

  Section 132 (29 U.S.C. 2862) is amended--
          (1) by amending subsection (a) to read as follows:
  ``(a) In General.--The Secretary shall--
          ``(1) reserve \1/2\ of 1 percent of the total amount 
        appropriated under section 137 for a fiscal year, of which--
                  ``(A) 50 percent shall be used to provide technical 
                assistance under section 170; and
                  ``(B) 50 percent shall be used for evaluations under 
                section 172;
          ``(2) reserve not more than 1 percent of the total amount 
        appropriated under section 137 for a fiscal year to make grants 
        to, and enter into contracts or cooperative agreements with 
        Indian tribes, tribal organizations, Alaska-Native entities, 
        Indian-controlled organizations serving Indians, or Native 
        Hawaiian organizations to carry out employment and training 
        activities;
          ``(3) reserve not more than 25 percent of the total amount 
        appropriated under section 137 for a fiscal year to carry out 
        the Jobs Corps program under subtitle C;
          ``(4) reserve not more than 3.5 percent of the total amount 
        appropriated under section 137 for a fiscal year to--
                  ``(A) make grants to State or local boards 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; and
                  ``(B) provide assistance to Governors of States with 
                an area that has suffered an emergency or a major 
                disaster (as such terms are 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)) to provide disaster relief employment 
                in the area.
          ``(5) from the remaining amount appropriated under section 
        137 for a fiscal year (after reserving funds under paragraphs 
        (1) through (4)), make allotments in accordance with subsection 
        (b) of this section.''; and
          (2) by amending subsection (b) to read as follows:
  ``(b) Workforce Investment Fund.--
          ``(1) Reservation for outlying areas.--
                  ``(A) In general.--From the amount made available 
                under subsection (a)(5) for a fiscal year, the 
                Secretary shall reserve not more than \1/4\ of 1 
                percent to provide assistance to the outlying areas.
                  ``(B) Restriction.--The Republic of Palau shall cease 
                to be eligible to receive funding under this 
                subparagraph upon entering into an agreement for 
                extension of United States educational assistance under 
                the Compact of Free Association (approved by the 
                Compact of Free Association Amendments Act of 2003 
                (Public Law 99-658)) after the date of enactment of the 
                SKILLS Act.
          ``(2) States.--
                  ``(A) In general.--After determining the amount to be 
                reserved under paragraph (1), the Secretary shall allot 
                the remainder of the amount referred to in subsection 
                (a)(5) for a fiscal year to the States pursuant to 
                subparagraph (B) for employment and training activities 
                and statewide workforce investment activities.
                  ``(B) Formula.--Subject to subparagraphs (C) and (D), 
                of the remainder--
                          ``(i) 25 percent shall be allotted on the 
                        basis of the relative number of unemployed 
                        individuals in areas of substantial 
                        unemployment in each State, compared to the 
                        total number of unemployed individuals in areas 
                        of substantial unemployment in all States;
                          ``(ii) 25 percent shall be allotted on the 
                        basis of the relative number of individuals in 
                        the civilian labor force in each State, 
                        compared to the total number of such 
                        individuals in all States;
                          ``(iii) 25 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; and
                          ``(iv) 25 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.
                  ``(C) Minimum and maximum percentages.--
                          ``(i) Minimum percentage.--The Secretary 
                        shall ensure that no State shall receive an 
                        allotment under this paragraph for--
                                  ``(I) each of fiscal years 2014 
                                through 2016, that is less than 100 
                                percent of the allotment percentage of 
                                the State for fiscal year 2012; and
                                  ``(II) fiscal year 2017 and each 
                                succeeding fiscal year, that is less 
                                than 90 percent of the allotment 
                                percentage of the State for the 
                                preceding fiscal year.
                          ``(ii) Maximum percentage.--Subject to clause 
                        (i), the Secretary shall ensure that no State 
                        shall receive an allotment under this paragraph 
                        for--
                                  ``(I) each of fiscal years 2014 
                                through 2016, that is more than 130 
                                percent of the allotment percentage of 
                                the State for fiscal year 2012; and
                                  ``(II) fiscal year 2017 and each 
                                succeeding fiscal year, that is more 
                                than 130 percent of the allotment 
                                percentage of the State for the 
                                preceding fiscal year.
                  ``(D) Small state minimum allotment.--Subject to 
                subparagraph (C), the Secretary shall ensure that no 
                State shall receive an allotment under this paragraph 
                for a fiscal year that is less than \1/5\ of 1 percent 
                of the remainder described in subparagraph (A) for the 
                fiscal year.
                  ``(E) Definitions.--For the purpose of the formula 
                specified in this paragraph:
                          ``(i) Allotment percentage.--The term 
                        `allotment percentage'--
                                  ``(I) used with respect to fiscal 
                                year 2012, means the percentage of the 
                                amounts allotted to States under title 
                                I of this Act, title V of the Older 
                                Americans Act of 1965 (42 U.S.C. 3056 
                                et seq.), the Women in Apprenticeship 
                                and Nontraditional Occupations Act (29 
                                U.S.C. 2501 et seq.), sections 4103A 
                                and 4104 of title 38, United States 
                                Code, and sections 1 through 14 of the 
                                Wagner-Peyser Act (29 U.S.C. 49 et 
                                seq.), as such provisions were in 
                                effect for fiscal year 2012, that is 
                                received under such provisions by the 
                                State involved for fiscal year 2012; 
                                and
                                  ``(II) used with respect to fiscal 
                                year 2016 or a succeeding fiscal year, 
                                means the percentage of the amounts 
                                allotted to States under this paragraph 
                                for the fiscal year that is received 
                                under this paragraph by the State 
                                involved for the fiscal year.
                          ``(ii) Disadvantaged youth.--The term 
                        `disadvantaged youth' means an individual who 
                        is not less than age 16 and not more than age 
                        24 who receives an income, or is a member of a 
                        family that received a total family income, 
                        that in relation to family size, does not 
                        exceed the higher of--
                                  ``(I) the poverty line; or
                                  ``(II) 70 percent of the lower living 
                                standard income level.
                          ``(iii) Individual.--The term `individual' 
                        means an individual who is age 16 or older.''.

SEC. 112. WITHIN STATE ALLOCATIONS.

  Section 133 is amended--
          (1) by amending subsection (a) to read as follows:
  ``(a) Reservations for Statewide Workforce Investment Activities.--
          ``(1) Statewide employment and training activities.--The 
        Governor of a State shall reserve up to 15 percent of the total 
        amount allotted to the State under section 132(b)(2) for a 
        fiscal year to carry out the statewide activities described in 
        section 134(a).
          ``(2) Statewide rapid response activities.--Of the amount 
        reserved under paragraph (1) for a fiscal year, the Governor of 
        the State shall reserve not more than 25 percent for statewide 
        rapid response activities described in section 134(a)(4).
          ``(3) Statewide grants for individuals with barriers to 
        employment.--Of the amount reserved under paragraph (1) for a 
        fiscal year, the Governor of a State shall reserve 15 percent 
        to carry out statewide activities described in section 
        134(a)(5).
          ``(4) State administrative cost limit.--Not more than 5 
        percent of the funds reserved under paragraph (1) may be used 
        by the Governor of a State for administrative costs of carrying 
        out the statewide activities described in section 134(a).'';
          (2) by amending subsection (b) to read as follows:
  ``(b) Within State Allocation.--
          ``(1) Methods.--The Governor, acting in accordance with the 
        State plan, and after consulting with chief elected officials 
        in the local areas, shall--
                  ``(A) allocate the funds that are allotted to the 
                State for employment and training activities and not 
                reserved under subsection (a), in accordance with 
                paragraph (2)(A); and
                  ``(B) award the funds that are reserved by the State 
                under subsection (a)(3) through competitive grants to 
                eligible entities, in accordance with section 
                134(a)(1)(C).
          ``(2) Formula allocations for the workforce investment 
        fund.--
                  ``(A) Allocation.--In allocating the funds described 
                in paragraph (1)(A) to local areas, a State shall 
                allocate--
                          ``(i) 25 percent on the basis described in 
                        section 132(b)(2)(B)(i);
                          ``(ii) 25 percent on the basis described in 
                        section 132(b)(2)(B)(ii);
                          ``(iii) 25 percent on the basis described in 
                        section 132(b)(2)(B)(iii); and
                          ``(iv) 25 percent on the basis described in 
                        section 132(b)(2)(B)(iv).
                  ``(B) Minimum and maximum percentages.--
                          ``(i) Minimum percentage.--The State shall 
                        ensure that no local area shall receive an 
                        allocation under this paragraph for--
                                  ``(I) each of fiscal years 2014 
                                through 2016, that is less than 100 
                                percent of the allocation percentage of 
                                the local area for fiscal year 2012; 
                                and
                                  ``(II) fiscal year 2017 and each 
                                succeeding fiscal year, that is less 
                                than 90 percent of the allocation 
                                percentage of the local area for the 
                                preceding fiscal year.
                          ``(ii) Maximum percentage.--Subject to clause 
                        (i), the State shall ensure that no local area 
                        shall receive an allocation for a fiscal year 
                        under this paragraph for--
                                  ``(I) each of fiscal years 2014 
                                through 2016, that is more than 130 
                                percent of the allocation percentage of 
                                the local area for fiscal year 2012; 
                                and
                                  ``(II) fiscal year 2017 and each 
                                succeeding fiscal year, that is more 
                                than 130 percentage of the allocation 
                                percentage of the local area for the 
                                preceding fiscal year.
                  ``(C) Definitions.--For the purpose of the formula 
                specified in this paragraph, the term `allocation 
                percentage'--
                          ``(i) used with respect to fiscal year 2012, 
                        means the percentage of the amounts allocated 
                        to local areas under title I of this Act, title 
                        V of the Older Americans Act of 1965 (42 U.S.C. 
                        3056 et seq.), the Women in Apprenticeship and 
                        Nontraditional Occupations Act (29 U.S.C. 2501 
                        et seq.), sections 4103A and 4104 of title 38, 
                        United States Code, and sections 1 through 14 
                        of the Wagner-Peyser Act (29 U.S.C. 49 et 
                        seq.), as such provisions were in effect for 
                        fiscal year 2012, that is received under such 
                        provisions by the local area involved for 
                        fiscal year 2012; and
                          ``(ii) used with respect to fiscal year 2016 
                        or a succeeding fiscal year, means the 
                        percentage of the amounts allocated to local 
                        areas for the fiscal year under this paragraph 
                        that is received under this paragraph by the 
                        local area involved for the fiscal year.'';
          (3) in subsection (c)--
                  (A) by amending paragraph (1) to read as follows:
          ``(1) In general.--The Governor, may in accordance with this 
        subsection, reallocate to eligible local areas within the State 
        amounts that are allocated under subsection (b) for employment 
        and training activities and that are available for 
        reallocation.'';
                  (B) in paragraph (2), by striking ``paragraph (2)(A) 
                or (3) of subsection (b) for such activities'' and 
                inserting ``subsection (b) for such activities'';
                  (C) by amending paragraph (3) to read as follows:
          ``(3) Reallocations.--In making reallocations to eligible 
        local areas of amounts available pursuant to paragraph (2) for 
        a program year, the Governor shall allocate to each eligible 
        local area within the State an amount based on the relative 
        amount allocated to such local area under subsection (b)(2) for 
        such activities for such prior program year, as compared to the 
        total amount allocated to all eligible local areas in the State 
        under subsection (b)(2) for such activities for such prior 
        program year.''; and
                  (D) in paragraph (4), by striking ``paragraph (2)(A) 
                or (3) of''; and
          (4) by adding at the end the following new subsection:
  ``(d) Local Administrative Cost Limit.--Of the amounts allocated to a 
local area under this section for a fiscal year, not more than 10 
percent of the amount may be used by the local board involved for the 
administrative costs of carrying out local workforce investment 
activities in the local area under this chapter.''.

SEC. 113. USE OF FUNDS FOR EMPLOYMENT AND TRAINING ACTIVITIES.

  Section 134 is amended--
          (1) by amending subsection (a) to read as follows:
  ``(a) Statewide Employment and Training Activities.--
          ``(1) In general.--
                  ``(A) Distribution of statewide activities.--Funds 
                reserved by a Governor for a State as described in 
                section 133(a)(1)--
                          ``(i) shall be used to carry out the 
                        statewide employment and training activities 
                        described in paragraph (2); and
                          ``(ii) may be used to carry out any of the 
                        statewide employment and training activities 
                        described in paragraph (3).
                  ``(B) Statewide rapid response activities.--Funds 
                reserved by a Governor for a State as described in 
                section 133(a)(2) shall be used to carry out the 
                statewide rapid response activities described in 
                paragraph (4).
                  ``(C) Statewide grants for individuals with barriers 
                to employment.--Funds reserved by a Governor for a 
                State as described in section 133(a)(3) shall be used 
                to carry out the Statewide Grants for Individuals with 
                Barriers to Employment competition described in 
                paragraph (5).
          ``(2) Required statewide employment and training 
        activities.--A State shall use funds reserved as described in 
        section 133(a)(1) to carry out statewide employment and 
        training activities, which shall include--
                  ``(A) disseminating the State list of eligible 
                providers of training described in section 122(d), 
                information identifying eligible providers of on-the-
                job training and customized training described in 
                section 122(i), and performance information and program 
                cost information described in section 122(b)(2);
                  ``(B) supporting the provision of work ready services 
                described in subsection (c)(2) in the one-stop delivery 
                system;
                  ``(C) implementing strategies and services that will 
                be used in the State to assist at-risk youth and out-
                of-school youth in acquiring the education and skills, 
                recognized postsecondary credentials, and employment 
                experience to succeed in the labor market;
                  ``(D) conducting evaluations under section 136(e) of 
                activities authorized under this chapter in 
                coordination with evaluations carried out by the 
                Secretary under section 172;
                  ``(E) providing technical assistance to local areas 
                that fail to meet local performance measures;
                  ``(F) operating a fiscal and management 
                accountability system under section 136(f); and
                  ``(G) carrying out monitoring and oversight of 
                activities carried out under this chapter.
          ``(3) Allowable statewide employment and training 
        activities.--A State may use funds reserved as described in 
        section 133(a)(1) to carry out statewide employment and 
        training activities which may include--
                  ``(A) implementing innovative programs and strategies 
                designed to meet the needs of all employers in the 
                State, including small employers, which may include 
                incumbent worker training programs, sectoral and 
                industry cluster strategies and partnerships, career 
                ladder programs, micro-enterprise and entrepreneurial 
                training and support programs, utilization of effective 
                business intermediaries, 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 investment system more relevant to 
                the needs of State and local businesses, consistent 
                with the objectives of this title;
                  ``(B) providing incentive grants to local areas for 
                regional cooperation among local boards (including 
                local boards in a designated region as described in 
                section 116(c)), for local coordination of activities 
                carried out under this Act, and for exemplary 
                performance by local areas on the local performance 
                measures;
                  ``(C) developing strategies for effectively 
                integrating programs and services among one-stop 
                partners;
                  ``(D) carrying out activities to facilitate remote 
                access to services provided through a one-stop delivery 
                system, including facilitating access through the use 
                of technology;
                  ``(E) incorporating pay-for-performance contracting 
                strategies, as defined in section 101(56), as an 
                element in funding activities under this section and 
                providing technical support to local areas and 
                providers in order to carry out such strategy, which 
                may provide assistance with data collection and data 
                entry requirements;
                  ``(F) carrying out the State option under subsection 
                (f)(8); and
                  ``(G) carrying out other activities authorized under 
                this section that the State determines to be necessary 
                to assist local areas in carrying out activities 
                described in subsection (c) or (d) through the 
                statewide workforce investment system.
          ``(4) Statewide rapid response activities.--A State shall use 
        funds reserved as described in section 133(a)(2) to carry out 
        statewide rapid response activities, which shall include--
                  ``(A) provision of rapid response activities, carried 
                out in local areas by the State or by an entity 
                designated by the State, working in conjunction with 
                the local boards and the chief elected officials in the 
                local areas; and
                  ``(B) provision of additional assistance to local 
                areas that experience disasters, mass 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 or by an entity 
                designated by the State, working in conjunction with 
                the local boards and the chief elected officials in the 
                local areas.
          ``(5) Statewide grants for individuals with barriers to 
        employment.--
                  ``(A) In general.--Of the funds reserved as described 
                in section 133(a)(3), the Governor of a State--
                          ``(i) may reserve up to 5 percent to provide 
                        technical assistance to, and conduct 
                        evaluations as described in section 136(e), of 
                        the programs and activities carried out under 
                        this paragraph; and
                          ``(ii) using the remainder, shall award 
                        grants on a competitive basis to eligible 
                        entities described in subparagraph (B) to carry 
                        out employment and training programs authorized 
                        under this paragraph for individuals with 
                        barriers to employment that meet specific 
                        performance outcomes and criteria established 
                        by the Governor.
                  ``(B) Eligible entity defined.--For purposes of this 
                paragraph, the term `eligible entity' means an entity 
                that--
                          ``(i) is a--
                                  ``(I) local board or a consortium of 
                                local boards;
                                  ``(II) nonprofit entity, for-profit 
                                entity, or a consortium of nonprofit or 
                                for-profit entities; or
                                  ``(III) consortium of the entities 
                                described in subclauses (I) and (II);
                          ``(ii) has a demonstrated record of placing 
                        individuals into unsubsidized employment and 
                        serving hard to serve individuals; and
                          ``(iii) agrees to be reimbursed primarily on 
                        the basis of achievement of specified 
                        performance outcomes and criteria established 
                        by the Governor.
                  ``(C) Grant period.--
                          ``(i) In general.--A grant under this 
                        paragraph shall be awarded for a period of 1 
                        year.
                          ``(ii) Grant renewal.--A Governor of a State 
                        may renew, for up to 4 additional 1-year 
                        periods, a grant awarded under this paragraph.
                  ``(D) Eligible participants.--To be eligible to 
                participate in activities under this paragraph, an 
                individual shall be a low-income individual age 16 or 
                older or a member of a low-income family.
                  ``(E) Use of funds.--An eligible entity receiving a 
                grant under this paragraph shall use such funds for 
                activities that are designed to assist eligible 
                participants in obtaining employment and acquiring the 
                education and skills necessary to succeed in the labor 
                market.
                  ``(F) Applications.--To be eligible to receive a 
                grant under this paragraph, an eligible entity shall 
                submit an application to a State at such time, in such 
                manner, and containing such information as the State 
                may require, including--
                          ``(i) a description of how the strategies and 
                        activities will be aligned with the State plan 
                        submitted under section 112 and the local plan 
                        submitted under section 118 with respect to the 
                        areas of the State that will be the focus of 
                        grant activities under this paragraph;
                          ``(ii) a description of the educational and 
                        skills training programs and activities the 
                        eligible entity will provide to eligible 
                        participants under this paragraph;
                          ``(iii) how the eligible entity will 
                        collaborate with State and local workforce 
                        investment systems established under this title 
                        in the provision of such programs and 
                        activities;
                          ``(iv) a description of the programs of 
                        demonstrated effectiveness on which the 
                        provision of such educational and skills 
                        training programs and activities are based, and 
                        a description of how such programs and 
                        activities will improve the education and 
                        skills training for eligible participants;
                          ``(v) a description of the populations to be 
                        served and the skill needs of those 
                        populations, and the manner in which eligible 
                        participants will be recruited and selected as 
                        participants;
                          ``(vi) a description of the private, public, 
                        local, and State resources that will be 
                        leveraged, in addition to the grant funds 
                        provided for the programs and activities under 
                        this paragraph, and how the entity will ensure 
                        the sustainability of such programs and 
                        activities after grant funds are no longer 
                        available;
                          ``(vii) a description of the extent of the 
                        involvement of employers in such programs and 
                        activities;
                          ``(viii) a description of the levels of 
                        performance the eligible entity expects to 
                        achieve with respect to the indicators of 
                        performance for all individuals specified in 
                        section in 136(b)(2);
                          ``(ix) a detailed budget and a description of 
                        the system of fiscal controls, and auditing and 
                        accountability procedures that will be used to 
                        ensure fiscal soundness for the programs and 
                        activities provided under this paragraph; and
                          ``(x) any other criteria the Governor may 
                        require.'';
          (2) by amending subsection (b) to read as follows:
  ``(b) Local Employment and Training Activities.--Funds allocated to a 
local area under section 133(b)--
          ``(1) shall be used to carry out employment and training 
        activities described in subsection (c); and
          ``(2) may be used to carry out employment and training 
        activities described in subsection (d).'';
          (3) by striking subsection (c);
          (4) by redesignating subsections (d) and (e), as subsections 
        (c) and (d), respectively;
          (5) in subsection (c) (as so redesignated)--
                  (A) by amending paragraph (1) to read as follows:
          ``(1) In general.--Funds allocated to a local area under 
        section 133(b) shall be used--
                  ``(A) to establish a one-stop delivery system as 
                described in section 121(e);
                  ``(B) to provide the work ready services described in 
                paragraph (2) through the one-stop delivery system in 
                accordance with such paragraph; and
                  ``(C) to provide training services described in 
                paragraph (4) in accordance with such paragraph.'';
                  (B) in paragraph (2)--
                          (i) in the heading, by striking ``Core 
                        services'' and inserting ``Work ready 
                        services'';
                          (ii) in the matter preceding subparagraph 
                        (A)--
                                  (I) by striking ``(1)(A)'' and 
                                inserting ``(1)(B)'';
                                  (II) by striking ``core services'' 
                                and inserting ``work ready services''; 
                                and
                                  (III) by striking ``who are adults or 
                                dislocated workers'';
                          (iii) by redesignating subparagraph (K) as 
                        subparagraph (V);
                          (iv) by redesignating subparagraphs (B) 
                        through (J) as subparagraphs (C) through (K), 
                        respectively;
                          (v) by inserting after subparagraph (A) the 
                        following:
                  ``(B) assistance in obtaining eligibility 
                determinations under the other one-stop partner 
                programs through activities, where appropriate and 
                consistent with the authorizing statute of the one-stop 
                partner program, such as assisting in the submission of 
                applications, the provision of information on the 
                results of such applications, and the provision of 
                intake services and information;'';
                          (vi) by amending subparagraph (E), as so 
                        redesignated, to read as follows:
                  ``(E) labor exchange services, including--
                          ``(i) job search and placement assistance, 
                        and where appropriate, career counseling;
                          ``(ii) appropriate recruitment services for 
                        employers, including small employers, in the 
                        local area, which may include services 
                        described in this subsection, including 
                        information and referral to specialized 
                        business services not traditionally offered 
                        through the one-stop delivery system; and
                          ``(iii) reemployment services provided to 
                        unemployment claimants, including claimants 
                        identified as in need of such services under 
                        the worker profiling system established under 
                        section 303(j) of the Social Security Act (42 
                        U.S.C. 503(j));'';
                          (vii) in subparagraph (F), as so 
                        redesignated, by striking ``employment 
                        statistics'' and inserting ``workforce and 
                        labor market'';
                          (viii) in subparagraph (G), as so 
                        redesignated, by striking ``and eligible 
                        providers of youth activities described in 
                        section 123,'';
                          (ix) in subparagraph (H), as so redesignated, 
                        by inserting ``under section 136'' after 
                        ``local performance measures'';
                          (x) in subparagraph (J), as so redesignated, 
                        by inserting ``and the administration of the 
                        work test for the unemployment compensation 
                        system'' after ``compensation'';
                          (xi) by amending subparagraph (K), as so 
                        redesignated, to read as follows:
                  ``(K) assistance in establishing eligibility for 
                programs of financial aid assistance for training and 
                education programs that are not funded under this Act 
                and are available in the local area;''; and
                          (xii) by inserting the following new 
                        subparagraphs after subparagraph (K), as so 
                        redesignated:
                  ``(L) the provision of information from official 
                publications of the Internal Revenue Service regarding 
                Federal tax credits available to individuals relating 
                to education, job training and employment;
                  ``(M) comprehensive and specialized assessments of 
                the skill levels and service needs of workers, which 
                may include--
                          ``(i) diagnostic testing and use of other 
                        assessment tools; and
                          ``(ii) in-depth interviewing and evaluation 
                        to identify employment barriers and appropriate 
                        employment goals;
                  ``(N) development of an individual employment plan, 
                to identify the employment goals, appropriate 
                achievement objectives, and appropriate combination of 
                services for the participant;
                  ``(O) group counseling;
                  ``(P) individual counseling and career planning;
                  ``(Q) case management;
                  ``(R) short-term pre-career services, including 
                development of learning skills, communications skills, 
                interviewing skills, punctuality, personal maintenance 
                skills, and professional conduct, to prepare 
                individuals for unsubsidized employment or training;
                  ``(S) internships and work experience;
                  ``(T) literacy activities relating to basic work 
                readiness, information and communication technology 
                literacy activities, and financial literacy activities, 
                if such activities are not available to participants in 
                the local area under programs administered under the 
                Adult Education and Family Literacy Act (20 U.S.C. 2901 
                et seq.);
                  ``(U) out-of-area job search assistance and 
                relocation assistance; and''; and
                  (C) by amending paragraph (3) to read as follows:
          ``(3) Delivery of services.--The work ready services 
        described in paragraph (2) shall be provided through the one-
        stop delivery system and may be provided through contracts with 
        public, private for-profit, and private nonprofit service 
        providers, approved by the local board.'';
                  (D) in paragraph (4)--
                          (i) by amending subparagraph (A) to read as 
                        follows:
                  ``(A) In general.--Funds described in paragraph 
                (1)(C) shall be used to provide training services to 
                individuals who--
                          ``(i) after an interview, evaluation, or 
                        assessment, and case management, have been 
                        determined by a one-stop operator or one-stop 
                        partner, as appropriate, to--
                                  ``(I) be in need of training services 
                                to obtain or retain employment; and
                                  ``(II) have the skills and 
                                qualifications to successfully 
                                participate in the selected program of 
                                training services;
                          ``(ii) select programs of training services 
                        that are directly linked to the employment 
                        opportunities in the local area involved or in 
                        another area in which the individual receiving 
                        such services are willing to commute or 
                        relocate; and
                          ``(iii) who meet the requirements of 
                        subparagraph (B);''; and
                          (ii) in subparagraph (B)(i), by striking 
                        ``Except'' and inserting ``Notwithstanding 
                        section 479B of the Higher Education Act of 
                        1965 (20 U.S.C. 1087uu) and except'';
                          (iii) by amending subparagraph (D) to read as 
                        follows:
                  ``(D) Training services.--Training services 
                authorized under this paragraph may include--
                          ``(i) occupational skills training;
                          ``(ii) on-the-job training;
                          ``(iii) skill upgrading and retraining;
                          ``(iv) entrepreneurial training;
                          ``(v) education activities leading to a 
                        regular secondary school diploma or its 
                        recognized equivalent in combination with, 
                        concurrently or subsequently, occupational 
                        skills training;
                          ``(vi) adult education and literacy 
                        activities provided in conjunction with other 
                        training authorized under this subparagraph;
                          ``(vii) workplace training combined with 
                        related instruction;
                          ``(viii) occupational skills training that 
                        incorporates English language acquisition;
                          ``(ix) customized training conducted with a 
                        commitment by an employer or group of employers 
                        to employ an individual upon successful 
                        completion of the training; and
                          ``(x) training programs operated by the 
                        private sector.'';
                          (iv) by striking subparagraph (E) and 
                        redesignating subparagraphs (F) and (G) as 
                        subparagraphs (E) and (F), respectively; and
                          (v) in subparagraph (E) (as so 
                        redesignated)--
                                  (I) in clause (ii)--
                                          (aa) in the matter preceding 
                                        subclause (I), by striking 
                                        ``subsection (c)'' and 
                                        inserting ``section 121'';
                                          (bb) in subclause (I), by 
                                        striking ``section 122(e)'' and 
                                        inserting ``section 122(d)'' 
                                        and by striking ``section 
                                        122(h)'' and inserting 
                                        ``section 122(i)''; and
                                          (cc) in subclause (II), by 
                                        striking ``subsections (e) and 
                                        (h)'' and inserting 
                                        ``subsection (i)''; and
                                  (II) by striking clause (iii) and 
                                inserting the following:
                          ``(iii) Career enhancement accounts.--An 
                        individual who seeks training services and who 
                        is eligible pursuant to subparagraph (A), may, 
                        in consultation with a case manager, select an 
                        eligible provider of training services from the 
                        list or identifying information for providers 
                        described in clause (ii)(I). 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 a career enhancement account.
                          ``(iv) Coordination.--Each local board may, 
                        through one-stop centers, coordinate career 
                        enhancement accounts with other Federal, State, 
                        local, or private job training programs or 
                        sources to assist the individual in obtaining 
                        training services.
                          ``(v) Assistance.--Each local board may, 
                        through one-stop centers, assist individuals 
                        receiving career enhancement accounts in 
                        obtaining funds (in addition to the funds 
                        provided under this section) from other 
                        programs and sources that will assist the 
                        individual in obtaining training services.''; 
                        and
                          (vi) in subparagraph (F) (as so 
                        redesignated)--
                                  (I) in the subparagraph heading, by 
                                striking ``individual training 
                                accounts'' and inserting ``career 
                                enhancement accounts'';
                                  (II) in clause (i) by striking 
                                ``individual training accounts'' and 
                                inserting ``career enhancement 
                                accounts'';
                                  (III) in clause (ii)--
                                          (aa) by striking ``an 
                                        individual training account'' 
                                        and inserting ``a career 
                                        enhancement account'';
                                          (bb) by striking 
                                        ``subparagraph (F)'' and 
                                        inserting ``subparagraph (E)'';
                                          (cc) in subclause (II), by 
                                        striking ``individual training 
                                        accounts'' and inserting 
                                        ``career enhancement 
                                        accounts'';
                                          (dd) in subclause (II) by 
                                        striking ``or'' after the 
                                        semicolon;
                                          (ee) in subclause (III) by 
                                        striking the period and 
                                        inserting ``; or''; and
                                          (ff) by adding at the end the 
                                        following:
                                  ``(IV) the local board determines 
                                that it would be most appropriate to 
                                award a contract to an institution of 
                                higher education that has been 
                                identified as a priority provider under 
                                section 117(d)(5)(B) in order to 
                                facilitate the training of multiple 
                                individuals in in-demand sectors or 
                                occupations, and which may be used to 
                                enable the expansion of programs 
                                provided by a priority provider, if 
                                such contract does not limit customer 
                                choice.'';
                                  (IV) in clause (iii), by striking 
                                ``adult or dislocated worker'' and 
                                inserting ``individual''; and
                                  (V) in clause (iv)--
                                          (aa) by redesignating 
                                        subclause (IV) as subclause (V) 
                                        and inserting after subclause 
                                        (III) the following:
                                  ``(IV) Individuals with 
                                disabilities.'';
          (6) in subsection (d) (as so redesignated)--
                  (A) by amending paragraph (1) to read as follows:
          ``(1) Discretionary one-stop delivery activities.--
                  ``(A) In general.--Funds allocated to a local area 
                under section 133(b)(2) may be used to provide, through 
                the one-stop delivery system--
                          ``(i) customized screening and referral of 
                        qualified participants in training services to 
                        employers;
                          ``(ii) customized employment-related services 
                        to employers on a fee-for-service basis;
                          ``(iii) customer supports, including 
                        transportation and childcare, to navigate among 
                        multiple services and activities for special 
                        participant populations that face multiple 
                        barriers to employment, including individuals 
                        with disabilities;
                          ``(iv) employment and training assistance 
                        provided in coordination with child support 
                        enforcement activities of the State agency 
                        carrying out subtitle D of title IV of the 
                        Social Security Act (42 U.S.C. 651 et seq.);
                          ``(v) incorporating pay-for-performance 
                        contract strategies, as defined in section 
                        101(56), as an element in funding activities 
                        under this section;
                          ``(vi) activities to facilitate remote access 
                        to services provided through a one-stop 
                        delivery system, including facilitating access 
                        through the use of technology; and
                          ``(vii) activities to carry out business 
                        services and strategies that meet the workforce 
                        investment needs of local area employers, as 
                        determined by the local board, consistent with 
                        the local plan under section 118.''.
                  (B) by striking paragraphs (2) and (3); and
                  (C) by adding at the end the following:
          ``(2) Incumbent worker training programs.--
                  ``(A) In general.--The local board may use funds 
                allocated to a local area under section 133(b)(2) to 
                carry out incumbent worker training programs in 
                accordance with this paragraph.
                  ``(B) Training activities.--The training programs for 
                incumbent workers under this paragraph shall be carried 
                out by the local area in conjunction with the employers 
                of such workers for the purpose of assisting such 
                workers in obtaining the skills necessary to retain 
                employment and avert layoffs.
                  ``(C) Employer match required.--
                          ``(i) In general.--Employers participating in 
                        programs under this paragraph shall be required 
                        to pay a proportion of the costs of providing 
                        the training to the incumbent workers of the 
                        employers. The local board shall establish the 
                        required portion of such costs, which may 
                        include in-kind contributions.
                          ``(ii) Calculation of match.--The wages paid 
                        by an employer to a worker while they are 
                        attending training may be included as part of 
                        the required payment of the employer.''; and
          (7) by adding at the end the following:
  ``(e) Priority for Placement in Private Sector Jobs.--In providing 
employment and training activities authorized under this section, the 
State and local board shall give priority to placing participants in 
jobs in the private sector.
  ``(f) Veteran Employment Specialist.--
          ``(1) In general.--Subject to paragraph (8), a local board 
        shall hire and employ one or more veteran employment specialist 
        to carry out employment, training, and placement services under 
        this subsection in the local area served by the local board.
          ``(2) Principal duties.--A veteran employment specialist in a 
        local area shall--
                  ``(A) conduct outreach to employers in the local area 
                to assist veterans, including disabled veterans, in 
                gaining employment, including--
                          ``(i) conducting seminars for employers; and
                          ``(ii) in conjunction with employers, 
                        conducting job search workshops, and 
                        establishing job search groups; and
                  ``(B) facilitate employment, training, supportive, 
                and placement services furnished to veterans, including 
                disabled and homeless veterans, in the local area.
          ``(3) Hiring preference for veterans and individuals with 
        expertise in serving veterans.--Subject to paragraph (8), a 
        local board shall, to the maximum extent practicable, employ 
        veterans or individuals with expertise in serving veterans to 
        carry out the services described in paragraph (2) in the local 
        area served by the local board. In hiring an individual to 
        serve as a veteran employment specialist, a local board shall 
        give preference to veterans and other individuals in the 
        following order:
                  ``(A) To service-connected disabled veterans.
                  ``(B) If no veteran described in subparagraph (A) is 
                available, to veterans.
                  ``(C) If no veteran described in subparagraph (A) or 
                (B) is available, to any member of the Armed Forces 
                transitioning out of military service.
                  ``(D) If no veteran described in subparagraph (A), 
                (B), or (C) is available, to any spouse of a veteran or 
                a spouse of a member of the Armed Forces transitioning 
                out of military service.
                  ``(E) If no veteran described in subparagraph (A), 
                (B), or (C) is available and no spouse described in 
                paragraph (D) is available, to any other individuals 
                with expertise in serving veterans.
          ``(4) Administration and reporting.--
                  ``(A) In general.--Each veteran employment specialist 
                shall be administratively responsible to the manager of 
                the one-stop delivery center in the local area and 
                shall provide, at a minimum, quarterly reports to the 
                manager of such center and to the Director for 
                Veterans' Employment and Training for the State on the 
                performance and compliance by the specialist with 
                Federal law and regulations with respect to the--
                          ``(i) principal duties and special services 
                        for veterans described in paragraph (2); and
                          ``(ii) hiring preferences described in 
                        paragraph (3) for veterans and individuals with 
                        expertise in serving veterans.
                  ``(B) Report to secretary.--Each State shall submit 
                to the Secretary an annual report on the qualifications 
                used by the local board in making hiring determinations 
                for a veteran employment specialist and the salary 
                structure under which such specialist is compensated.
                  ``(C) Report to congress.--The Secretary shall submit 
                to the Committee on Education and the Workforce and the 
                Committee on Veterans' Affairs of the House of 
                Representatives and the Committee on Health, Education, 
                Labor, and Pensions and the Committee on Veterans' 
                Affairs of the Senate an annual report summarizing the 
                reports submitted under subparagraph (B), including 
                summaries of outcomes achieved by participating 
                veterans disaggregated by local areas.
          ``(5) Part-time employees.--A part-time veteran employment 
        specialist shall perform the functions of a veteran employment 
        specialist under this subsection on a halftime basis.
          ``(6) Training requirements.--Each veteran employment 
        specialist described in paragraph (2) shall satisfactorily 
        complete training provided by the National Veterans' Employment 
        and Training Institute during the three-year period that begins 
        on the date on which the employee is so assigned.
          ``(7) Specialist's duties.--A full-time veteran employment 
        specialist shall perform only duties related to the employment, 
        training, supportive, and placement services under this 
        subsection, and shall not perform other non-veteran-related 
        duties if such duties detract from the specialist's ability to 
        perform the specialist's duties related to employment, 
        training, and placement services under this subsection.
          ``(8) State option.--At the request of a local board, a State 
        may assume the duties assigned to the local board under 
        paragraphs (1) and (3), including the hiring and employment of 
        one or more veteran employment specialist for placement in the 
        local area served by the local board.''.

SEC. 114. PERFORMANCE ACCOUNTABILITY SYSTEM.

  Section 136 (29 U.S.C. 2871) is amended--
          (1) in subsection (b)--
                  (A) by amending paragraphs (1) and (2) to read as 
                follows:
          ``(1) In general.--For each State, the State performance 
        measures shall consist of--
                  ``(A)(i) the core indicators of performance described 
                in paragraph (2)(A); and
                  ``(ii) 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) Core indicators of performance.--
                          ``(i) In general.--The core indicators of 
                        performance for the program of employment and 
                        training activities authorized under sections 
                        132(a)(2) and 134, the program of adult 
                        education and literacy activities authorized 
                        under title II, 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 the following indicators of 
                        performance, each disaggregated by the 
                        populations identified in the State and local 
                        plans:
                                  ``(I) The percentage and number of 
                                program participants who are in 
                                unsubsidized employment during the 
                                second full calendar quarter after exit 
                                from the program.
                                  ``(II) The percentage and number of 
                                program participants who are in 
                                unsubsidized employment during the 
                                fourth full calendar quarter after exit 
                                from the program.
                                  ``(III) The median earnings of 
                                program participants who are in 
                                unsubsidized employment during the 
                                second full calendar quarter after exit 
                                from the program compared to the median 
                                earnings of such participants prior to 
                                the training received under such 
                                program.
                                  ``(IV) The percentage and number of 
                                program participants who obtain a 
                                recognized postsecondary credential, a 
                                registered apprenticeship, an industry-
                                recognized credential, or a regular 
                                secondary school diploma or its 
                                recognized equivalent (subject to 
                                clause (ii)), during participation in 
                                or within 1 year after exit from 
                                program.
                                  ``(V) The percentage and number of 
                                program participants who, during a 
                                program year--
                                          ``(aa) are in an education or 
                                        training program that leads to 
                                        a recognized postsecondary 
                                        credential, a registered 
                                        apprenticeship or on-the-job 
                                        training program, an industry-
                                        recognized credential, a 
                                        regular secondary school 
                                        diploma or its recognized 
                                        equivalent, or unsubsidized 
                                        employment; and
                                          ``(bb) are achieving 
                                        measurable basic skill gains 
                                        toward such a credential or 
                                        employment.
                                  ``(VI) The percentage and number of 
                                program participants who obtain 
                                unsubsidized employment in the field 
                                relating to the training services 
                                described in section 134(c)(4) that 
                                such participants received.
                          ``(ii) Indicator relating to credential.--For 
                        purposes of clause (i)(IV), program 
                        participants who obtain a regular 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, within 1 year after exit from the 
                        program, obtained or retained employment, have 
                        been removed from public assistance, or are in 
                        an education or training program leading to a 
                        recognized postsecondary credential.
                  ``(B) Additional indicators.--A State may identify in 
                the State plan additional indicators for workforce 
                investment activities authorized under this 
                subtitle.''; and
                  (B) in paragraph (3)--
                          (i) in subparagraph (A)--
                                  (I) in the heading, by striking ``and 
                                customer satisfaction indicator'';
                                  (II) in clause (i), by striking ``and 
                                the customer satisfaction indicator 
                                described in paragraph (2)(B)'';
                                  (III) in clause (ii), by striking 
                                ``and the customer satisfaction 
                                indicator of performance, for the first 
                                3'' and inserting ``, for all 3'';
                                  (IV) in clause (iii)--
                                          (aa) in the heading, by 
                                        striking ``for first 3 years''; 
                                        and
                                          (bb) by striking ``and the 
                                        customer satisfaction indicator 
                                        of performance, for the first 3 
                                        program years'' and inserting 
                                        ``for all 3 program years'';
                                  (V) in clause (iv)--
                                          (aa) by striking ``or (v)'';
                                          (bb) by striking subclause 
                                        (I) and redesignating 
                                        subclauses (II) and (III) as 
                                        subclauses (I) and (II), 
                                        respectively; and
                                          (cc) in subclause (I) (as so 
                                        redesignated)--
                                                  (AA) by striking 
                                                ``taking into account'' 
                                                and inserting ``which 
                                                shall be adjusted based 
                                                on'';
                                                  (BB) by inserting ``, 
                                                such as unemployment 
                                                rates and job losses or 
                                                gains in particular 
                                                industries'' after 
                                                ``economic 
                                                conditions''; and
                                                  (CC) by inserting ``, 
                                                such as indicators of 
                                                poor work experience, 
                                                dislocation from high-
                                                wage employment, low 
                                                levels of literacy or 
                                                English proficiency, 
                                                disability status, 
                                                including the number of 
                                                veterans with 
                                                disabilities, and 
                                                welfare dependency'' 
                                                after ``program'';
                                  (VI) by striking clause (v) and 
                                redesignating clause (vi) as clause 
                                (v); and
                                  (VII) in clause (v) (as so 
                                redesignated),
                                          (aa) by striking ``described 
                                        in clause (iv)(II)'' and 
                                        inserting ``described in clause 
                                        (iv)(I)''; and
                                          (bb) by striking ``or (v)''; 
                                        and
                          (ii) in subparagraph (B), by striking 
                        ``paragraph (2)(C)'' and inserting ``paragraph 
                        (2)(B)'';
          (2) in subsection (c)(1)(A)--
                  (A) by amending clause (i) to read as follows: ``(i) 
                the core indicators of performance described in 
                subsection (b)(2)(A) for activities described in such 
                subsections, other than statewide workforce investment 
                activities; and'';
                  (B) in clause (ii), by striking ``(b)(2)(C)'' and 
                inserting ``(b)(2)(B)''; and
                  (C) by amending paragraph (3) to read as follows:
          ``(3) Determinations.--In determining such local levels of 
        performance, the local board, the chief elected official, and 
        the Governor shall ensure such levels are adjusted based on the 
        specific economic characteristics (such as unemployment rates 
        and job losses or gains in particular industries), demographic 
        characteristics, or other characteristics of the population to 
        be served in the local area.'';
          (3) in subsection (d)--
                  (A) in paragraph (1)--
                          (i) by striking ``127 or'';
                          (ii) by striking ``and the customer 
                        satisfaction indicator'' each place it appears; 
                        and
                          (iii) in the last sentence, by inserting 
                        before the period the following: ``, and on the 
                        amount and percentage of the State's annual 
                        allotment under section 132 the State spends on 
                        administrative costs and on the amount and 
                        percentage of its annual allocation under 
                        section 133 each local area in the State spends 
                        on administrative costs'';
                  (B) in paragraph (2)--
                          (i) by striking subparagraphs (A), (B), and 
                        (D);
                          (ii) by redesignating subparagraph (C) as 
                        subparagraph (A);
                          (iii) by redesignating subparagraph (E) as 
                        subparagraph (B);
                          (iv) in subparagraph (B), as so 
                        redesignated--
                                  (I) by striking ``(excluding 
                                participants who received only self-
                                service and informational 
                                activities)''; and
                                  (II) by striking ``and'' at the end;
                          (v) by striking subparagraph (F);
                          (vi) by adding at the end the following:
                  ``(C) with respect to each local area in the State--
                          ``(i) the number of individuals who received 
                        work ready services described under section 
                        134(c)(2) and the number of individuals who 
                        received training services described under 
                        section 134(c)(4) during the most recent 
                        program year and fiscal year, and the preceding 
                        5 program years, where the individuals received 
                        the training, disaggregated by the type of 
                        entity that provided the training, and the 
                        amount of funds spent on each type of service;
                          ``(ii) the number of individuals who 
                        successfully exited out of work ready services 
                        described under section 134(c)(2) and the 
                        number of individuals who exited out of 
                        training services described under section 
                        134(c)(4) during the most recent program year 
                        and fiscal year, and the preceding 5 program 
                        years, and where the individuals received the 
                        training, disaggregated by the type of entity 
                        that provided the training; and
                          ``(iii) the average cost per participant of 
                        those individuals who received work ready 
                        services described under section 134(c)(2) and 
                        the average cost per participant of those 
                        individuals who received training services 
                        described under section 134(c)(4) during the 
                        most recent program year and fiscal year, and 
                        the preceding 5 program years, and where the 
                        individuals received the training, 
                        disaggregated by the type of entity that 
                        provided the training; and
                  ``(E) the amount of funds spent on training services 
                and discretionary one-stop delivery activities, 
                disaggregated by the populations identified in the 
                State and local plans.'';
                  (C) in paragraph (3)(A), by striking ``through 
                publication'' and inserting ``through electronic 
                means''; and
                  (D) by adding at the end the following:
          ``(4) Data validation.--In preparing the reports described in 
        this subsection, each State shall establish procedures, 
        consistent with guidelines issued by the Secretary, to ensure 
        the information contained in the report is valid and reliable.
          ``(5) State and local policies.--
                  ``(A) State policies.--Each State that receives an 
                allotment under section 132 shall maintain a central 
                repository of policies related to access, eligibility, 
                availability of services, and other matters and plans 
                approved by the State board and make such repository 
                available to the public, including by electronic means.
                  ``(B) Local policies.--Each local area that receives 
                an allotment under section 133 shall maintain a central 
                repository of policies related to access, eligibility, 
                availability of services, and other matters and plans 
                approved by the local board and make such repository 
                available to the public, including by electronic 
                means.'';
          (4) in subsection (g)--
                  (A) in paragraph (1)(A), by striking ``or (B)'';
                  (B) in paragraph (1)(B), by striking ``may reduce by 
                not more than 5 percent,'' and inserting ``shall 
                reduce''; and
                  (C) by striking paragraph (2) and inserting the 
                following:
          ``(2) Funds resulting from reduced allotments.--The Secretary 
        shall return to the Treasury the amount retained, as a result 
        of a reduction in an allotment to a State made under paragraph 
        (1)(B).'';
          (5) in subsection (h)(1), by striking ``or (B)'';
          (6) in subsection (h)(2)--
                  (A) in subparagraph (A), by amending the matter 
                preceding clause (i) to read as follows:
                  ``(A) In general.--If such failure continues for a 
                second consecutive year, the Governor shall take 
                corrective actions, including the development of a 
                reorganization plan. Such plan shall--'';
                  (B) by redesignating subparagraphs (B) and (C) as 
                subparagraphs (C) and (D), respectively;
                  (C) by inserting after subparagraph (A), the 
                following:
                  ``(B) Reduction in the amount of grant.--If such 
                failure continues for a third consecutive year, the 
                Governor of a State shall reduce the amount of the 
                grant that would (in the absence of this subparagraph) 
                be payable to the local area under such program for the 
                program year after such third consecutive year. Such 
                penalty shall be based on the degree of failure to meet 
                local levels of performance.'';
                  (D) in subparagraph (C)(i) (as so redesignated), by 
                striking ``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'' and inserting 
                ``corrective actions under subparagraphs (A) and (B) 
                may, not later than 30 days after receiving notice of 
                the actions, appeal to the Governor to rescind or 
                revise such actions''; and
                  (E) in subparagraph (D) (as so redesignated), by 
                striking ``subparagraph (B)'' each place it appears and 
                inserting ``subparagraph (C)'';
          (7) in subsection (i)(1)(B), by striking ``subsection 
        (b)(2)(C)'' and inserting ``subsection (b)(2)(B)'';
          (8) in subsection (i)(1)(C), by striking ``(b)(3)(A)(vi)'' 
        and inserting ``(b)(3)(A)(v)'';
          (9) in subsection (i)(2), by striking ``the activities 
        described in section 502 concerning'';
          (10) in subsection (i)(3), by striking ``described in 
        paragraph (1) and in the activities described in section 502'' 
        and inserting ``and activities described in this subsection''; 
        and
          (11) by adding at the end the following new subsections:
  ``(j) Use of Core Indicators for Other Programs.--In addition to the 
programs carried out under chapter 5, and consistent with the 
requirements of the applicable authorizing laws, the Secretary shall 
use the core indicators of performance described in subsection 
(b)(2)(A) to assess the effectiveness of the programs described under 
section 121(b)(1)(B) that are carried out by the Secretary.
  ``(k) Establishing Pay-for-performance Incentives.--
          ``(1) In general.--At the discretion of the Governor of a 
        State, a State may establish an incentive system for local 
        boards to implement pay-for-performance contract strategies for 
        the delivery of employment and training services in the local 
        areas served by the local boards.
          ``(2) Implementation.--A State that establishes a pay-for-
        performance incentive system shall reserve not more than 10 
        percent of the total amount allotted to the State under section 
        132(b)(2) for a fiscal year to provide funds to local areas in 
        the State whose local boards have implemented a pay-for-
        performance contract strategy.
          ``(3) Evaluations.--A State described in paragraph (2) shall 
        use funds reserved by the State under section 133(a)(1) to 
        evaluate the return on investment of pay-for-performance 
        contract strategies implemented by local boards in the 
        State.''.

SEC. 115. AUTHORIZATION OF APPROPRIATIONS.

  Section 137 (29 U.S.C. 2872) is amended to read as follows:

``SEC. 137. AUTHORIZATION OF APPROPRIATIONS.

  ``There are authorized to be appropriated to carry out the activities 
described in section 132, $6,245,318,000 for fiscal year 2014 and each 
of the 6 succeeding fiscal years.''.

                         Subtitle C--Job Corps

SEC. 116. JOB CORPS PURPOSES.

  Paragraph (1) of section 141 (29 U.S.C. 2881(1)) is amended to read 
as follows:
          ``(1) to maintain a national Job Corps program for at-risk 
        youth, carried out in partnership with States and communities, 
        to assist eligible youth to connect to the workforce by 
        providing them with intensive academic, career and technical 
        education, and service-learning opportunities, in residential 
        and nonresidential centers, in order for such youth to obtain 
        regular secondary school diplomas and recognized postsecondary 
        credentials leading to successful careers in in-demand 
        industries that will result in opportunities for 
        advancement;''.

SEC. 117. JOB CORPS DEFINITIONS.

  Section 142 (29 U.S.C. 2882) is amended--
          (1) in paragraph (2)--
                  (A) in the paragraph heading, by striking 
                ``Applicable one-stop'' and inserting ``One-stop'';
                  (B) by striking ``applicable'';
                  (C) by striking ``customer service''; and
                  (D) by striking ``intake'' and inserting 
                ``assessment'';
          (2) in paragraph (4), by striking ``before completing the 
        requirements'' and all that follows and inserting ``prior to 
        becoming a graduate.''; and
          (3) in paragraph (5), by striking ``has completed the 
        requirements'' and all that follows and inserting the 
        following: ``who, as a result of participation in the Job Corps 
        program, has received a regular secondary school diploma, 
        completed the requirements of a career and technical education 
        and training program, or received, or is making satisfactory 
        progress (as defined under section 484(c) of the Higher 
        Education Act of 1965 (20 U.S.C. 1091(c)) toward receiving, a 
        recognized postsecondary credential, including an industry-
        recognized credential that prepares individuals for employment 
        leading to economic self-sufficiency.''.

SEC. 118. INDIVIDUALS ELIGIBLE FOR THE JOB CORPS.

  Section 144 (29 U.S.C. 2884) is amended--
          (1) by amending paragraph (1) to read as follows:
          ``(1) not less than age 16 and not more than age 24 on the 
        date of enrollment;'';
          (2) in paragraph (3)(B), by inserting ``secondary'' before 
        ``school''; and
          (3) in paragraph (3)(E), by striking ``vocational'' and 
        inserting ``career and technical education and''.

SEC. 119. RECRUITMENT, SCREENING, SELECTION, AND ASSIGNMENT OF 
                    ENROLLEES.

  Section 145 (29 U.S.C. 2885) is amended--
          (1) in subsection (a)--
                  (A) in paragraph (2)(C)(i) by striking ``vocational'' 
                and inserting ``career and technical education and 
                training''; and
                  (B) in paragraph (3)--
                          (i) by striking ``To the extent practicable, 
                        the'' and inserting ``The'';
                          (ii) in subparagraph (A)--
                                  (I) by striking ``applicable''; and
                                  (II) by inserting ``and'' after the 
                                semicolon;
                          (iii) by striking subparagraphs (B) and (C); 
                        and
                          (iv) by adding at the end the following:
                  ``(B) organizations that have a demonstrated record 
                of effectiveness in placing at-risk youth into 
                employment.'';
          (2) in subsection (b)--
                  (A) in paragraph (1)--
                          (i) in subparagraph (B), by inserting ``and 
                        agrees to such rules'' after ``failure to 
                        observe the rules''; and
                          (ii) by amending subparagraph (C) to read as 
                        follows:
                  ``(C) the individual has passed a background check 
                conducted in accordance with procedures established by 
                the Secretary, which shall include--
                          ``(i) a search of the State criminal registry 
                        or repository in the State where the individual 
                        resides and each State where the individual 
                        previously resided;
                          ``(ii) a search of State-based child abuse 
                        and neglect registries and databases in the 
                        State where the individual resides and each 
                        State where the individual previously resided;
                          ``(iii) a search of the National Crime 
                        Information Center;
                          ``(iv) a Federal Bureau of Investigation 
                        fingerprint check using the Integrated 
                        Automated Fingerprint Identification System; 
                        and
                          ``(v) a search of the National Sex Offender 
                        Registry established under the Adam Walsh Child 
                        Protection and Safety Act of 2006 (42 U.S.C. 
                        16901 et seq.).''; and
                  (B) by adding at the end the following new paragraph:
          ``(3) Individuals convicted of a crime.--An individual shall 
        be ineligible for enrollment if the individual--
                  ``(A) makes a false statement in connection with the 
                criminal background check described in paragraph 
                (1)(C);
                  ``(B) is registered or is required to be registered 
                on a State sex offender registry or the National Sex 
                Offender Registry established under the Adam Walsh 
                Child Protection and Safety Act of 2006 (42 U.S.C. 
                16901 et seq.); or
                  ``(C) has been convicted of a felony consisting of--
                          ``(i) homicide;
                          ``(ii) child abuse or neglect;
                          ``(iii) a crime against children, including 
                        child pornography;
                          ``(iv) a crime involving rape or sexual 
                        assault; or
                          ``(v) physical assault, battery, or a drug-
                        related offense, committed within the past 5 
                        years.'';
          (3) in subsection (c)--
                  (A) in paragraph (1)--
                          (i) by striking ``2 years'' and inserting 
                        ``year''; and
                          (ii) by striking ``an assignment'' and 
                        inserting ``a''; and
                  (B) in paragraph (2)--
                          (i) in the matter preceding subparagraph (A), 
                        by striking ``, every 2 years,'';
                          (ii) in subparagraph (B), by striking ``and'' 
                        at the end; and
                          (iii) in subparagraph (C)--
                                  (I) by inserting ``the education and 
                                training'' after ``including''; and
                                  (II) by striking the period at the 
                                end and inserting ``; and''; and
                          (iv) by adding at the end the following:
                  ``(D) the performance of the Job Corps center 
                relating to the indicators described in paragraphs (1) 
                and (2) in section 159(c), and whether any actions have 
                been taken with respect to such center pursuant to 
                section 159(f).''; and
          (4) in subsection (d)--
                  (A) in paragraph (1)--
                          (i) in the matter preceding subparagraph (A), 
                        by striking ``is closest to the home of the 
                        enrollee, except that the'' and inserting 
                        ``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. The'';
                          (ii) by striking subparagraph (A); and
                          (iii) by redesignating subparagraphs (B) and 
                        (C) as subparagraphs (A) and (B), respectively; 
                        and
                  (B) in paragraph (2), by inserting ``that offers the 
                career and technical education and training desired 
                by'' after ``home of the enrollee''.

SEC. 120. JOB CORPS CENTERS.

  Section 147 (29 U.S.C. 2887) is amended--
          (1) in subsection (a)--
                  (A) in paragraph (1)(A), by striking ``vocational'' 
                both places it appears and inserting ``career and 
                technical''; and
                  (B) in paragraph (2)--
                          (i) in subparagraph (A)--
                                  (I) by striking ``subsections (c) and 
                                (d) of section 303 of the Federal 
                                Property and Administrative Services 
                                Act of 1949 (41 U.S.C. 253)'' and 
                                inserting ``subsections (a) and (b) of 
                                section 3304 of title 41, United States 
                                Code''; and
                                  (II) by striking ``industry council'' 
                                and inserting ``workforce council'';
                          (ii) in subparagraph (B)(i)--
                                  (I) by amending subclause (II) to 
                                read as follows:
                                  ``(II) the ability of the entity to 
                                offer career and technical education 
                                and training that the workforce council 
                                proposes under section 154(c);'';
                                  (II) in subclause (III), by striking 
                                ``is familiar with the surrounding 
                                communities, applicable'' and inserting 
                                ``demonstrates relationships with the 
                                surrounding communities, employers, 
                                workforce boards,'' and by striking 
                                ``and'' at the end;
                                  (III) by amending subclause (IV) to 
                                read as follows:
                                  ``(IV) the performance of the entity, 
                                if any, relating to operating or 
                                providing activities described in this 
                                subtitle to a Job Corps center, 
                                including the entity's demonstrated 
                                effectiveness in assisting individuals 
                                in achieving the primary and secondary 
                                indicators of performance described in 
                                paragraphs (1) and (2) of section 
                                159(c); and''; and
                                  (IV) by adding at the end the 
                                following new subclause:
                                  ``(V) the ability of the entity to 
                                demonstrate a record of successfully 
                                assisting at-risk youth to connect to 
                                the workforce, including by providing 
                                them with intensive academic, and 
                                career and technical education and 
                                training.''; and
                          (iii) in subparagraph (B)(ii), by striking 
                        ``, as appropriate'';
          (2) in subsection (b), by striking ``In any year, no more 
        than 20 percent of the individuals enrolled in the Job Corps 
        may be nonresidential participants in the Job Corps.'';
          (3) by amending subsection (c) to read as follows:
  ``(c) Civilian Conservation Centers.--
          ``(1) 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 adhere to 
        all the provisions of this subtitle, and shall provide, in 
        addition to education, career and technical education and 
        training, and workforce preparation skills training described 
        in section 148, 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) Selection process.--The Secretary shall select an 
        entity that submits an application under subsection (d) to 
        operate a Civilian Conservation Center on a competitive basis, 
        as provided in subsection (a).''; and
          (4) by striking subsection (d) and inserting the following:
  ``(d) Application.--To be eligible to operate a Job Corps center 
under this subtitle, an entity shall submit an application to the 
Secretary at such time, in such manner, and containing such information 
as the Secretary may require, including--
          ``(1) a description of the program activities that will be 
        offered at the center, including how the career and technical 
        education and training reflect State and local employment 
        opportunities, including in in-demand industries;
          ``(2) 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 employment upon 
        completion of the program;
          ``(3) a description of the demonstrated record of 
        effectiveness that the entity has in placing at-risk youth into 
        employment, including past performance of operating a Job Corps 
        center under this subtitle;
          ``(4) a description of the relationships that the entity has 
        developed with State and local workforce boards, employers, 
        State and local educational agencies, and the surrounding 
        communities in an effort to promote a comprehensive statewide 
        workforce investment system;
          ``(5) 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);
          ``(6) a description of the strategies and policies the entity 
        will utilize to reduce participant costs;
          ``(7) a description of the steps taken to control costs in 
        accordance with section 159(a)(3);
          ``(8) a detailed budget of the activities that will be 
        supported using funds under this subtitle;
          ``(9) a detailed budget of the activities that will be 
        supported using funds from non-Federal resources;
          ``(10) an assurance the entity will comply with the 
        administrative cost limitation included in section 151(c);
          ``(11) an assurance the entity is licensed to operate in the 
        State in which the center is located; and
          ``(12) an assurance the entity will comply with and meet 
        basic health and safety codes, including those measures 
        described in section 152(b).
  ``(e) Length of Agreement.--The agreement described in subsection 
(a)(1)(A) shall be for not longer than a 2-year period. The Secretary 
may renew the agreement for 3 one-year periods if the entity meets the 
requirements of subsection (f).
  ``(f) Renewal.--
          ``(1) In general.--Subject to paragraph (2), the Secretary 
        may renew the terms of an agreement described in subsection 
        (a)(1)(A) for an entity to operate a Job Corps center if the 
        center meets or exceeds each of the indicators of performance 
        described in section 159(c)(1).
          ``(2) Recompetition.--
                  ``(A) In general.--Notwithstanding paragraph (1), the 
                Secretary shall not renew the terms of the agreement 
                for an entity to operate a Job Corps center if such 
                center is ranked in the bottom quintile of centers 
                described in section 159(f)(2) for any program year. 
                Such entity may submit a new application under 
                subsection (d) only if such center has shown 
                significant improvement on the indicators of 
                performance described in section 159(c)(1) over the 
                last program year.
                  ``(B) Violations.--The Secretary shall not select an 
                entity to operate a Job Corps center if such entity or 
                such center has been found to have a systemic or 
                substantial material failure that involves--
                          ``(i) a threat to the health, safety, or 
                        civil rights of program participants or staff;
                          ``(ii) the misuse of funds received under 
                        this subtitle;
                          ``(iii) loss of legal status or financial 
                        viability, loss of permits, debarment from 
                        receiving Federal grants or contracts, or the 
                        improper use of Federal funds;
                          ``(iv) failure to meet any other Federal or 
                        State requirement that the entity has shown an 
                        unwillingness or inability to correct, after 
                        notice from the Secretary, within the period 
                        specified; or
                          ``(v) an unresolved area of noncompliance.
  ``(g) Current Grantees.--Not later than 60 days after the date of 
enactment of the SKILLS Act and notwithstanding any previous grant 
award or renewals of such award under this subtitle, the Secretary 
shall require all entities operating a Job Corps center under this 
subtitle to submit an application under subsection (d) to carry out the 
requirements of this section.''.

SEC. 121. PROGRAM ACTIVITIES.

  Section 148 (29 U.S.C. 2888) is amended--
          (1) by amending subsection (a) to read as follows:
  ``(a) Activities Provided Through Job Corps Centers.--
          ``(1) In general.--Each Job Corps center shall provide 
        enrollees with an intensive, well-organized, and supervised 
        program of education, career, and technical education and 
        training, work experience, recreational activities, physical 
        rehabilitation and development, and counseling. Each Job Corps 
        center shall provide enrollees assigned to the center with 
        access to work-ready services described in section 134(c)(2).
          ``(2) Relationship to opportunities.--
                  ``(A) In general.--The activities provided under this 
                subsection shall be targeted to helping enrollees, on 
                completion of their enrollment--
                          ``(i) secure and maintain meaningful 
                        unsubsidized employment;
                          ``(ii) complete secondary education and 
                        obtain a regular secondary school diploma;
                          ``(iii) enroll in and complete postsecondary 
                        education or training programs, including 
                        obtaining recognized postsecondary credentials, 
                        industry-recognized credentials, and registered 
                        apprenticeships; or
                          ``(iv) satisfy Armed Forces requirements.
                  ``(B) Link to employment opportunities.--The career 
                and technical education and training provided shall be 
                linked to the employment opportunities in in-demand 
                industries in the State in which the Job Corps center 
                is located.''; and
          (2) in subsection (b)--
                  (A) in the subsection heading, by striking 
                ``Education and Vocational'' and inserting ``Academic 
                and Career and Technical Education and'';
                  (B) by striking ``may'' after ``The Secretary'' and 
                inserting ``shall''; and
                  (C) by striking ``vocational'' each place it appears 
                and inserting ``career and technical''; and
          (3) by amending paragraph (3) of subsection (c) to read as 
        follows:
          ``(3) Demonstration.--Each year, 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) such operator has met or exceeded the 
                indicators of performance described in paragraphs (1) 
                and (2) of section 159(c) for the previous year.''.

SEC. 122. COUNSELING AND JOB PLACEMENT.

  Section 149 (29 U.S.C. 2889) is amended--
          (1) in subsection (a), by striking ``vocational'' and 
        inserting ``career and technical education and'';
          (2) in subsection (b), by striking ``make every effort to 
        arrange to''; and
          (3) by striking subsection (d).

SEC. 123. SUPPORT.

  Subsection (b) of section 150 (29 U.S.C. 2890) is amended to read as 
follows:
  ``(b) Transition Allowances and Support for Graduates.--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 a recognized postsecondary credential, including an 
industry-recognized credential.''.

SEC. 124. OPERATIONS.

  Section 151 (29 U.S.C. 2891) is amended--
          (1) in the header, by striking ``operating plan.'' and 
        inserting ``operations.'';
          (2) in subsection (a), by striking ``In General.--'' and 
        inserting ``Operating Plan.--'';
          (3) by striking subsection (b) and redesignating subsection 
        (c) as subsection (b);
          (4) by amending subsection (b) (as so redesignated)--
                  (A) in the heading by inserting ``of Operating Plan'' 
                after ``Availability''; and
                  (B) by striking ``subsections (a) and (b)'' and 
                inserting ``subsection (a)''; and
          (5) by adding at the end the following new subsection:
  ``(c) Administrative Costs.--Not more than 10 percent of the funds 
allotted under section 147 to an entity selected to operate a Job Corps 
center may be used by the entity for administrative costs under this 
subtitle.''.

SEC. 125. COMMUNITY PARTICIPATION.

  Section 153 (29 U.S.C. 2893) is amended to read as follows:

``SEC. 153. COMMUNITY PARTICIPATION.

  ``The director of each Job Corps center shall encourage and cooperate 
in activities to establish a mutually beneficial relationship between 
Job Corps centers in the State and nearby communities. Such activities 
may include the use of any local workforce development boards 
established under section 117 to provide a mechanism for joint 
discussion of common problems and for planning programs of mutual 
interest.''.

SEC. 126. WORKFORCE COUNCILS.

  Section 154 (29 U.S.C. 2894) is amended to read as follows:

``SEC. 154. WORKFORCE COUNCILS.

  ``(a) In General.--Each Job Corps center shall have a workforce 
council appointed by the Governor of the State in which the Job Corps 
center is located.
  ``(b) Workforce Council Composition.--
          ``(1) In general.--A workforce council shall be comprised 
        of--
                  ``(A) business members of the State board described 
                in section 111(b)(1)(B)(i);
                  ``(B) business members of the local boards described 
                in section 117(b)(2)(A) located in the State;
                  ``(C) a representative of the State board described 
                in section 111(f); and
                  ``(D) such other representatives and State agency 
                officials as the Governor may designate.
          ``(2) Majority.--A \2/3\ majority of the members of the 
        workforce council shall be representatives described in 
        paragraph (1)(A).
  ``(c) Responsibilities.--The responsibilities of the workforce 
council shall be--
          ``(1) to review all the relevant labor market information, 
        including related information in the State plan described in 
        section 112, to--
                  ``(A) determine the in-demand industries in the State 
                in which enrollees intend to seek employment after 
                graduation;
                  ``(B) determine the skills and education that are 
                necessary to obtain the employment opportunities 
                described in subparagraph (A); and
                  ``(C) determine the type or types of career and 
                technical education and training that will be 
                implemented at the center to enable the enrollees to 
                obtain the employment opportunities; and
          ``(2) to meet at least once a year to reevaluate the labor 
        market information, and other relevant information, to 
        determine any necessary changes in the career and technical 
        education and training provided at the center.''.

SEC. 127. TECHNICAL ASSISTANCE.

  Section 156 (29 U.S.C. 2896) is amended to read as follows:

``SEC. 156. TECHNICAL ASSISTANCE TO CENTERS.

  ``(a) In General.--From the funds reserved under section 132(a)(3), 
the Secretary shall provide, directly or through grants, contracts, or 
other agreements or arrangements as the Secretary considers 
appropriate, technical assistance and training for the Job Corps 
program for the purposes of improving program quality.
  ``(b) Activities.--In providing training and technical assistance and 
for allocating resources for such assistance, the Secretary shall--
          ``(1) assist entities, including those entities not currently 
        operating a Job Corps center, in developing the application 
        described in section 147(d);
          ``(2) assist Job Corps centers and programs in correcting 
        deficiencies and violations under this subtitle;
          ``(3) assist Job Corps centers and programs in meeting or 
        exceeding the indicators of performance described in paragraph 
        (1) and (2) of section 159(c); and
          ``(4) assist Job Corps centers and programs in the 
        development of sound management practices, including financial 
        management procedures.''.

SEC. 128. SPECIAL PROVISIONS.

  Section 158(c)(1) (29 U.S.C. 2989(c)(1)) is amended by striking 
``title II of the Federal Property and Administrative Services Act of 
1949 (40 U.S.C. 481 et seq.)'' and inserting ``chapter of 5 title 40, 
United States Code,''.

SEC. 129. PERFORMANCE ACCOUNTABILITY MANAGEMENT.

  Section 159 (29 U.S.C. 2899) is amended--
          (1) in the section heading, by striking ``management 
        information'' and inserting ``performance accountability and 
        management'';
          (2) in subsection (a)(3), by inserting before the period at 
        the end the following: ``, or operating costs for such centers 
        result in a budgetary shortfall'';
          (3) by striking subsections (c) through (g); and
          (4) by inserting after subsection (b) the following:
  ``(c) Indicators of Performance.--
          ``(1) Primary indicators.--The annual primary indicators of 
        performance for Job Corps centers shall include--
                  ``(A) the percentage and number of enrollees who 
                graduate from the Job Corps center;
                  ``(B) the percentage and number of graduates who 
                entered unsubsidized employment related to the career 
                and technical education and training received through 
                the Job Corps center, except that such calculation 
                shall not include enrollment in education, the military 
                or volunteer service;
                  ``(C) the percentage and number of graduates who 
                obtained a recognized postsecondary credential, 
                including an industry-recognized credential or a 
                registered apprenticeship; and
                  ``(D) the cost per successful performance outcome, 
                which is calculated by comparing the number of 
                graduates who were placed in unsubsidized employment or 
                obtained a recognized credential, including an 
                industry-recognized credential, to total program costs, 
                including all operations, construction, and 
                administration costs at each Job Corp center.
          ``(2) Secondary indicators.--The annual secondary indicators 
        of performance for Job Corps centers shall include--
                  ``(A) the percentage and number of graduates who 
                entered unsubsidized employment not related to the 
                career and technical education and training received 
                through the Job Corps center;
                  ``(B) the percentage and number of graduates who 
                entered into postsecondary education;
                  ``(C) the percentage and number of graduates who 
                entered into the military;
                  ``(D) the average wage of graduates who are in 
                unsubsidized employment--
                          ``(i) on the first day of employment; and
                          ``(ii) 6 months after the first day;
                  ``(E) the number and percentage of graduates who 
                entered unsubsidized employment and were retained in 
                the unsubsidized employment--
                          ``(i) 6 months after the first day of 
                        employment; and
                          ``(ii) 12 months after the first day of 
                        employment;
                  ``(F) the percentage and number of enrollees compared 
                to the percentage and number of enrollees the Secretary 
                has established targets in section 145(c)(1);
                  ``(G) the cost per training slot, which is calculated 
                by comparing the program's maximum number of students 
                that can be enrolled in a Job Corps center at any given 
                time during the program year to the number of enrollees 
                in the same program year; and
                  ``(H) the number and percentage of former enrollees, 
                including the number dismissed under the zero tolerance 
                policy described in section 152(b).
          ``(3) Indicators of performance for recruiters.--The annual 
        indicators of performance for recruiters shall include the 
        measurements described in subparagraph (A) of paragraph (1) and 
        subparagraphs (F), (G), and (H) of paragraph (2).
          ``(4) Indicators of performance of career transition service 
        providers.--The annual indicators of performance of career 
        transition service providers shall include the measurements 
        described in subparagraphs (B) and (C) of paragraph (1) and 
        subparagraphs, (B), (C), (D), and (E) of paragraph (2).
  ``(d) Additional Information.--The Secretary shall collect, and 
submit in the report described in subsection (f), information on the 
performance of each Job Corps center, and the Job Corps program, 
regarding--
          ``(1) the number and percentage of former enrollees who 
        obtained a regular secondary school diploma;
          ``(2) the number and percentage of former enrollees who 
        entered unsubsidized employment;
          ``(3) the number and percentage of former enrollees who 
        obtained a recognized postsecondary credential, including an 
        industry-recognized credential;
          ``(4) the number and percentage of former enrollees who 
        entered into military service; and
          ``(5) any additional information required by the Secretary.
  ``(e) Methods.--The Secretary shall collect the information described 
in subsections (c) and (d), using methods described in section 
136(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) Transparency and Accountability.--
          ``(1) 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, as well as make 
        available to the public by electronic means, a report 
        containing--
                  ``(A) information on the performance of each Job 
                Corps center, and the Job Corps program, on the 
                performance indicators described in paragraphs (1) and 
                (2) of subsection (c);
                  ``(B) a comparison of each Job Corps center, by rank, 
                on the performance indicators described in paragraphs 
                (1) and (2) of subsection (c);
                  ``(C) a comparison of each Job Corps center, by rank, 
                on the average performance of all primary indicators 
                described in paragraph (1) of subsection (c);
                  ``(D) information on the performance of the service 
                providers described in paragraphs (3) and (4) of 
                subsection (c) on the performance indicators 
                established under such paragraphs; and
                  ``(E) a comparison of each service provider, by rank, 
                on the performance of all service providers described 
                in paragraphs (3) and (4) of subsection (c) on the 
                performance indicators established under such 
                paragraphs.
          ``(2) Assessment.--The Secretary shall conduct an annual 
        assessment of the performance of each Job Corps center which 
        shall include information on the Job Corps centers that--
                  ``(A) are ranked in the bottom 10 percent on the 
                performance indicator described in paragraph (1)(C); or
                  ``(B) have failed a safety and health code review 
                described in subsection (g).
          ``(3) Performance improvement.--With respect to a Job Corps 
        center that is identified under paragraph (2) or reports less 
        than 50 percent on the performance indicators described in 
        subparagraphs (A), (B), or (C) of subsection (c)(1), the 
        Secretary shall develop and implement a 1 year performance 
        improvement plan. Such a plan shall require action including--
                  ``(A) providing technical assistance to the center;
                  ``(B) changing the management staff of the center;
                  ``(C) replacing the operator of the center;
                  ``(D) reducing the capacity of the center; or
                  ``(E) closing the center.
          ``(4) Closure of job corps centers.--Job Corps centers that 
        have been identified under paragraph (2) for more than 4 
        consecutive years shall be closed. The Secretary shall ensure--
                  ``(A) that the proposed decision to close the center 
                is announced in advance to the general public through 
                publication in the Federal Register and other 
                appropriate means; and
                  ``(B) the establishment of a reasonable comment 
                period, not to exceed 30 days, for interested 
                individuals to submit written comments to the 
                Secretary.
  ``(g) Participant Health and Safety.--The Secretary shall enter into 
an agreement with the General Services Administration or the 
appropriate State agency responsible for inspecting public buildings 
and safeguarding the health of disadvantaged students, to conduct an 
in-person review of the physical condition and health-related 
activities of each Job Corps center annually. Such review shall include 
a passing rate of occupancy under Federal and State ordinances.''.

                     Subtitle D--National Programs

SEC. 130. TECHNICAL ASSISTANCE.

  Section 170 (29 U.S.C. 2915) is amended--
          (1) by striking subsection (b);
          (2) by striking:
  ``(a) General Technical Assistance.--'';
          (3) by redesignating paragraphs (1), (2), and (3) as 
        subsections (a), (b), and (c) respectively, and moving such 
        subsections 2 ems to the left;
          (4) in subsection (a) (as so redesignated)--
                  (A) by inserting ``the training of staff providing 
                rapid response services, the training of other staff of 
                recipients of funds under this title, assistance 
                regarding accounting and program operation practices 
                (when such assistance would not be duplicative to 
                assistance provided by the State), technical assistance 
                to States that do not meet State performance measures 
                described in section 136,'' after ``localities,''; and
                  (B) by striking ``from carrying out activities'' and 
                all that follows up to the period and inserting ``to 
                implement the amendments made by the SKILLS Act'';
          (5) in subsection (b) (as so redesignated)--
                  (A) by striking ``paragraph (1)'' and inserting 
                ``subsection (a)'';
                  (B) by striking ``, or recipient of financial 
                assistance under any of sections 166 through 169,''; 
                and
                  (C) by striking ``or grant recipient'';
          (6) in subsection (c) (as so redesignated), by striking 
        ``paragraph (1)'' and inserting ``subsection (a)''; and
          (7) by inserting, after subsection (c) (as so redesignated), 
        the following:
  ``(d) Best Practices Coordination.--The Secretary shall--
          ``(1) establish a system through which States may share 
        information regarding best practices with regard to the 
        operation of workforce investment activities under this Act; 
        and
          ``(2) evaluate and disseminate information regarding best 
        practices and identify knowledge gaps.''.

SEC. 131. EVALUATIONS.

  Section 172 (29 U.S.C. 2917) is amended--
          (1) in subsection (a), by striking ``the Secretary shall 
        provide for the continuing evaluation of the programs and 
        activities, including those programs and activities carried out 
        under section 171'' and inserting ``the Secretary, through 
        grants, contracts, or cooperative agreements, shall conduct, at 
        least once every 5 years, an independent evaluation of the 
        programs and activities funded under this Act'';
          (2) in subsection (a)(4) is amended to read as follows:
          ``(4) the impact of receiving services and not receiving 
        services under such programs and activities on the community, 
        businesses, and individuals;'';
          (3) in subsection (c) is amended to read as follows:
  ``(c) Techniques.--Evaluations conducted under this section shall 
utilize appropriate and rigorous methodology and research designs, 
including the use of control groups chosen by scientific random 
assignment methodologies, quasi-experimental methods, impact analysis 
and the use of administrative data. The Secretary shall conduct an 
impact analysis, as described in subsection (a)(4), of the formula 
grant program under subtitle B not later than 2015, and thereafter 
shall conduct such an analysis not less than once every four years.'';
          (4) in subsection (e) is amended by striking ``the Committee 
        on Labor and Human Resources of the Senate'' and inserting 
        ``the Committee on Health, Education, Labor, and Pensions of 
        the Senate''; and
          (5) by adding at the end, the following:
  ``(g) Public Availability.--The results of the evaluations conducted 
under this section shall be made publicly available, including by 
posting such results on the Department's website.''.

                       Subtitle E--Administration

SEC. 132. REQUIREMENTS AND RESTRICTIONS.

  Section 181 (29 U.S.C. 2931) is amended--
          (1) in subsection (b)(6), by striking ``, including 
        representatives of businesses and of labor organizations'';
          (2) in subsection (c)(2)(A), in the matter preceding clause 
        (i), by striking ``shall'' and inserting ``may'';
          (3) in subsection (e)--
                  (A) by striking ``training for'' and inserting ``the 
                entry into employment, retention in employment, or 
                increases in earnings of''; and
                  (B) by striking ``subtitle B'' and inserting ``this 
                Act'';
          (4) in subsection (f)(4), by striking ``134(a)(3)(B)'' and 
        inserting ``134(a)(6)''; and
          (5) by adding at the end the following:
  ``(g) Salary and Bonus Limitation.--No funds provided 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 Level II of the Federal 
Executive Pay Schedule (5 U.S.C. 5313). This limitation shall not apply 
to vendors providing goods and services as defined in OMB Circular A-
133. Where States are recipients of such funds, States may establish a 
lower limit for salaries and bonuses of those receiving salaries and 
bonuses from subrecipients 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 programs.
  ``(h) General Authority.--
          ``(1) In general.--The Employment and Training Administration 
        of the U.S. Department of Labor (hereinafter in this Act 
        referred to as the `Administration') shall administer all 
        programs authorized under title I and III of this Act. The 
        Administration shall be headed by an Assistant Secretary 
        appointed by the President by and with the advice and consent 
        of the Senate. Except for titles II and IV, the Administration 
        shall be the principal agency, and the Assistant Secretary 
        shall be the principal officer, of such Department for carrying 
        out this Act.
          ``(2) Qualifications.--The Assistant Secretary shall be an 
        individual with substantial experience in workforce development 
        and in workforce development management. The Assistant 
        Secretary shall also, to the maximum extent possible, possess 
        knowledge and have worked in or with the State or local 
        workforce investment system or have been a member of the 
        business community. In the performance of the functions of the 
        office, the Assistant Secretary shall be directly responsible 
        to the Secretary or the Under Secretary as designed by the 
        Secretary. The functions of the Assistant Secretary shall not 
        be delegated to any officer not directly responsible, both with 
        respect to program operation and administration, to the 
        Assistant Secretary. Any reference in this Act to duties to be 
        carried out by the Assistant Secretary shall be considered to 
        be a reference to duties to be carried out by the Secretary 
        acting through the Assistant Secretary.''.

SEC. 133. PROMPT ALLOCATION OF FUNDS.

  Section 182 (29 U.S.C. 2932) is amended--
          (1) in subsection (c), by striking ``127 or''; and
          (2) in subsection (e)--
                  (A) by striking ``sections 128 and 133'' and 
                inserting ``section 133''; and
                  (B) by striking ``127 or''.

SEC. 134. FISCAL CONTROLS; SANCTIONS.

  Section 184(a)(2) (29 U.S.C. 2934(a)(2)) is amended--
          (1) by striking ``(A)'' and all that follows through ``Each'' 
        and inserting ``Each''; and
          (2) by striking subparagraph (B).

SEC. 135. REPORTS TO CONGRESS.

  Section 185 (29 U.S.C. 2935) is amended--
          (1) in subsection (c)--
                  (A) in paragraph (2), by striking ``and'' after the 
                semicolon;
                  (B) in paragraph (3), by striking the period and 
                inserting ``; and''; and
                  (C) by adding at the end the following:
          ``(4) shall have the option to submit or disseminate 
        electronically any reports, records, plans, or any other data 
        that are required to be collected or disseminated under this 
        title.''; and
          (2) in subsection (e)(2), by inserting ``and the Secretary 
        shall 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,'' after 
        ``Secretary,''.

SEC. 136. ADMINISTRATIVE PROVISIONS.

  Section 189 (29 U.S.C. 2939) is amended--
          (1) in subsection (g)--
                  (A) by amending paragraph (1) to read as follows:
          ``(1) In general.--Appropriations for any fiscal year for 
        programs and activities carried out under this title shall be 
        available for obligation only on the basis of a program year. 
        The program year shall begin on October 1 in the fiscal year 
        for which the appropriation is made.''; and
                  (B) in paragraph (2)--
                          (i) by striking ``each State'' and inserting 
                        ``each recipient''; and
                          (ii) by striking ``171 or'';
          (2) in subsection (i)--
                  (A) by striking paragraphs (2) and (3);
                  (B) by redesignating paragraph (4) as paragraph (2);
                  (C) by amending paragraph (2)(A), as so 
                redesignated--
                          (i) by striking ``requirements of 
                        subparagraph (B)'' and all that follows through 
                        ``any of the statutory or regulatory 
                        requirements of subtitle B'' and inserting 
                        ``requirements of subparagraph (B) or (D), any 
                        of the statutory or regulatory requirements of 
                        subtitle B'';
                          (ii) by striking clause (ii); and
                          (iii) in clause (i), by striking ``; and'' 
                        and inserting a period at the end; and
                  (D) by adding at the end the following:
                  ``(D) Expedited process for extending approved 
                waivers to additional states.--In lieu of the 
                requirements of subparagraphs (B) and (C), the 
                Secretary may establish an expedited procedure for the 
                purpose of extending to additional States the waiver of 
                statutory or regulatory requirements that have been 
                approved for a State pursuant to a request under 
                subparagraph (B). Such procedure shall ensure that the 
                extension of such waivers to additional States are 
                accompanied by appropriate conditions relating the 
                implementation of such waivers.
                  ``(E) External conditions.--The Secretary shall not 
                require or impose new or additional requirements, which 
                are not specified under this Act, on a State in 
                exchange for providing a waiver to the State or a local 
                area in the State under this paragraph.''.

SEC. 137. STATE LEGISLATIVE AUTHORITY.

  Section 191(a) (29 U.S.C. 2941(a)) is amended--
          (1) by striking ``consistent with the provisions of this 
        title'' and inserting ``consistent with State law and the 
        provisions of this title''; and
          (2) by striking ``consistent with the terms and conditions 
        required under this title'' and inserting ``consistent with 
        State law and the terms and conditions required under this 
        title''.

SEC. 138. GENERAL PROGRAM REQUIREMENTS.

  Section 195 (29 U.S.C. 2945) is amended--
          (1) in paragraph (7), by inserting at the end the following:
          ``(D) Funds received by a public or private nonprofit entity 
        that are not described in paragraph (B), such as funds 
        privately raised from philanthropic foundations, businesses, or 
        other private entities, shall not be considered to be income 
        under this title and shall not be subject to the requirements 
        of this section.''; and
          (2) by adding at the end the following new paragraphs:
          ``(14) Funds provided under this title shall not be used to 
        establish or operate stand-alone fee-for-service enterprises 
        that compete with private sector employment agencies within the 
        meaning of section 701(c) of the Civil Rights Act of 1964 (42 
        U.S.C. 2000e(c)), except that for purposes of this paragraph, 
        such an enterprise does not include one-stop centers.
          ``(15) Any report required to be submitted to Congress, or to 
        a Committee of Congress, under this title shall be submitted to 
        both the chairmen and ranking minority members of the Committee 
        on Education and the Workforce of the House of Representatives 
        and the Committee on Health, Education, Labor, and Pensions of 
        the Senate.''.

SEC. 139. FEDERAL AGENCY STAFF.

  Subtitle E of title I (29 U.S.C. 2931 et seq.) is amended by adding 
at the end the following new sections:

``SEC. 196. FEDERAL AGENCY STAFF.

  ``The Director of the Office of Management and Budget shall--
          ``(1) not later than 60 days after the date of the enactment 
        of the SKILLS Act--
                  ``(A) identify the number of Federal government 
                employees who work on or administer each of the 
                programs authorized under this Act or repealed under 
                section 401 of the SKILLS Act, as such programs were in 
                effect on the day before such date of enactment; and
                  ``(B) identify the number of full-time equivalent 
                employees who work on or administer each of the 
                programs authorized under this Act or repealed under 
                section 401 of the SKILLS Act, as such programs were in 
                effect on the day before such date of enactment, and 
                that have been eliminated or consolidated on or after 
                such date of enactment;
          ``(2) not later than 90 after such date of enactment, publish 
        the information described in paragraph (1) on the Office of 
        Management and Budget website;
          ``(3) not later than 1 year after such date of enactment--
                  ``(A) reduce the workforce of the Federal Government 
                by the number of full-time equivalent employees 
                identified under paragraph (1)(B); and
                  ``(B) submit to Congress a report on how the Director 
                carried out the requirements of subparagraph (A).

``SEC. 197. RESTRICTIONS ON LOBBYING AND POLITICAL ACTIVITIES.

  ``(a) Lobbying Restrictions.--
          ``(1) Publicity restrictions.--
                  ``(A) In general.--Subject to subparagraph (B), no 
                funds provided under this Act shall be used or proposed 
                for use, for--
                          ``(i) publicity or propaganda purposes; or
                          ``(ii) the preparation, distribution, or use 
                        of any kit, pamphlet, booklet, publication, 
                        electronic communication, radio, television, or 
                        video presentation designed to support or 
                        defeat the enactment of legislation before the 
                        Congress or any State or local legislature or 
                        legislative body.
                  ``(B) Exception.--Subparagraph (A) shall not apply 
                to--
                          ``(i) normal and recognized executive-
                        legislative relationships;
                          ``(ii) the preparation, distribution, or use 
                        of the materials described in subparagraph 
                        (A)(ii) in presentation to the Congress or any 
                        State or local legislature (except that this 
                        subparagraph does not apply with respect to 
                        such preparation, distribution, or use in 
                        presentation to the executive branch of any 
                        State or local government); or
                          ``(iii) if such materials are designed to 
                        support or defeat any proposed or pending 
                        regulation, administrative action, or order 
                        issued by the executive branch of any State or 
                        local government.
          ``(2) Salary payment restriction.--No funds provided under 
        this Act shall be used, or proposed for use, 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 of legislation, appropriations, 
        regulations, administrative action, or executive order proposed 
        or pending before the Congress or any State government, or 
        State legislature or local legislature or legislative body, 
        other than for normal and recognized executive-legislative 
        relationships or 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.
  ``(b) Political Restrictions.--
          ``(1) In general.--No funds received by a participant of a 
        program or an activity under this Act shall be used for--
                  ``(A) any partisan or nonpartisan political activity 
                or any other political activity associated with a 
                candidate, or contending faction or group, in an 
                election for public or party office; or
                  ``(B) any activity to provide voters with 
                transportation to the polls or similar assistance in 
                connection with any such election.
          ``(2) Definition.--For the purposes of this subsection, the 
        term `participant' includes any State, local area, or 
        governmental, nonprofit, or for-profit entity receiving funds 
        under this Act.
          ``(3) Restriction on voter registration activities.--No funds 
        under this Act shall be used to conduct voter registration 
        activities.''.

                     Subtitle F--State Unified Plan

SEC. 140. STATE UNIFIED PLAN.

  Section 501 (20 U.S.C. 9271) is amended--
          (1) by amending subsection (a) to read as follows:
  ``(a) General Authority.--The Secretary shall receive and approve 
State unified plans developed and submitted under this section.'';
          (2) by amending subsection (b) to read as follows:
  ``(b) State Unified Plan.--
          ``(1) In general.--A State may develop and submit to the 
        Secretary a State unified plan for 2 or more of the activities 
        or programs set forth in paragraph (2). The State unified plan 
        shall cover one or more of the activities set forth in 
        subparagraphs (A) and (B) of paragraph (2) and may cover one or 
        more of the activities set forth in subparagraphs (C) through 
        (N) of paragraph (2). For purposes of this paragraph, the 
        activities and programs described in subparagraphs (A) and (B) 
        of paragraph (2) shall not be considered to be 2 or more 
        activities or programs for purposes of the unified plan. Such 
        activities or programs shall be considered to be 1 activity or 
        program.
          ``(2) Activities and programs.--The activities and programs 
        referred to in paragraph (1) are as follows:
                  ``(A) Programs and activities authorized under title 
                I.
                  ``(B) Programs and activities authorized under title 
                II.
                  ``(C) Programs authorized under the Rehabilitation 
                Act of 1973.
                  ``(D) Secondary career education programs authorized 
                under the Carl D. Perkins Career and Applied Technology 
                Education Act.
                  ``(E) Postsecondary career education programs 
                authorized under the Carl D. Perkins Career and Applied 
                Technology Education Act.
                  ``(F) Programs and activities authorized under title 
                II of the Trade Act of 1974.
                  ``(G) National Apprenticeship Act of 1937.
                  ``(H) Programs authorized under the Community 
                Services Block Grant Act.
                  ``(I) Programs authorized under the part A of title 
                IV of the Social Security Act.
                  ``(J) Programs authorized under State unemployment 
                compensation laws (in accordance with applicable 
                Federal law).
                  ``(K) Work programs authorized under section 6(o) of 
                the Food Stamp Act of 1977.
                  ``(L) Programs and activities authorized title I of 
                the Housing and Community Development Act of 1974.
                  ``(M) Programs and activities authorized under the 
                Public Workers and Economic Development Act of 1965.
                  ``(N) Activities as defined under chapter 41 of title 
                38, United States Code.'';
          (3) by amending subsection (d) to read as follows:
  ``(d) Approval.--
          ``(1) Jurisdiction.--In approving a State unified plan under 
        this section, the Secretary shall--
                  ``(A) submit the portion of the State unified plan 
                covering an activity or program described in subsection 
                (b)(2) to the head of the Federal agency who exercises 
                administrative authority over the activity or program 
                for the approval of such portion by such Federal agency 
                head; or
                  ``(B) coordinate approval of the portion of the State 
                unified plan covering an activity or program described 
                in subsection (b)(2) with the head of the Federal 
                agency who exercises administrative authority over the 
                activity or program.
          ``(2) Timeline.--A State unified plan shall be considered to 
        be approved by the Secretary at the end of the 90-day period 
        beginning on the day the Secretary receives the plan, unless 
        the Secretary makes a written determination, during the 90-day 
        period, that details how the plan is not consistent with the 
        requirements of the Federal statute authorizing an activity or 
        program described in subsection (b)(2) and covered under the 
        plan or how the plan is not consistent with the requirements of 
        subsection (c)(3).''; and
          (4) by adding at the end the following:
  ``(e) Additional Employment and Training Funds.--
          ``(1) Purpose.--It is the purpose of this subsection to 
        reduce inefficiencies in the administration of federally-funded 
        State and local employment and training programs.
          ``(2) In general.--In developing a State unified plan for the 
        activities or programs described in subsection (b)(2) and 
        subject to paragraph (4) and the State plan approval process 
        under subsection (d), a State may propose to consolidate the 
        amount, in whole or part, provided for the activities or 
        programs dedicated to employment and training into the 
        Workforce Investment Fund under section 132(b) to improve the 
        administration of State and local employment and training 
        programs.
          ``(3) Requirements.--A State with a State unified plan 
        approved under subsection (d) for purposes of consolidation 
        under paragraph (2) and that is carrying out such consolidation 
        shall--
                  ``(A) continue to meet the program requirements, 
                limitations, and prohibitions of any Federal statute 
                authorizing the activity or program consolidated into 
                the Workforce Investment Fund;
                  ``(B) meet the intent and purpose of the activity or 
                program consolidated into the Workforce Investment 
                Fund; and
                  ``(C) continue to make reservations and allotments 
                under subsections (a) and (b) of section 133.
          ``(4) Exceptions.--A State may not consolidate funds under 
        paragraph (2) that are allocated to the State under--
                  ``(A) the Carl D. Perkins Career and Technical 
                Education Act of 2006; or
                  ``(B) the Rehabilitation Act of 1973.''.

        TITLE II--ADULT EDUCATION AND FAMILY LITERACY EDUCATION

SEC. 201. AMENDMENT.

  Title II (20 U.S.C. 2901 et seq.) is amended to read as follows:

       ``TITLE II--ADULT EDUCATION AND FAMILY LITERACY EDUCATION

``SEC. 201. SHORT TITLE.

  ``This title may be cited as the `Adult Education and Family Literacy 
Education Act'.

``SEC. 202. PURPOSE.

  ``It is the purpose of this title to provide instructional 
opportunities for adults seeking to improve their literacy skills, 
including their basic reading, writing, speaking, and math skills, and 
support States and local communities in providing, on a voluntary 
basis, adult education and family literacy education programs, in order 
to--
          ``(1) increase the literacy of adults, including the basic 
        reading, writing, speaking, and math skills, to a level of 
        proficiency necessary for adults to obtain employment and self-
        sufficiency and to successfully advance in the workforce;
          ``(2) assist adults in the completion of a secondary school 
        education (or its equivalent) and the transition to a 
        postsecondary educational institution;
          ``(3) assist adults who are parents to enable them to support 
        the educational development of their children and make informed 
        choices regarding their children's education including, through 
        instruction in basic reading, writing, speaking, and math 
        skills; and
          ``(4) assist adults who are not proficient in English in 
        improving their reading, writing, speaking, listening, 
        comprehension, and math skills.

``SEC. 203. DEFINITIONS.

  ``In this title:
          ``(1) Adult education and family literacy education 
        programs.--The term `adult education and family literacy 
        education programs' means a sequence of academic instruction 
        and educational services below the postsecondary level that 
        increase an individual's ability to read, write, and speak 
        English and perform mathematical computations leading to a 
        level of proficiency equivalent to at least a secondary school 
        completion that is provided for individuals--
                  ``(A) who are at least 16 years of age;
                  ``(B) who are not enrolled or required to be enrolled 
                in secondary school under State law; and
                  ``(C) who--
                          ``(i) lack sufficient mastery of basic 
                        reading, writing, speaking, and math skills to 
                        enable the individuals to function effectively 
                        in society;
                          ``(ii) do not have a secondary school diploma 
                        or its equivalent and have not achieved an 
                        equivalent level of education; or
                          ``(iii) are English learners.
          ``(2) Eligible agency.--The term `eligible agency'--
                  ``(A) means the primary entity or agency in a State 
                or an outlying area responsible for administering or 
                supervising policy for adult education and family 
                literacy education programs in the State or outlying 
                area, respectively, consistent with the law of the 
                State or outlying area, respectively; and
                  ``(B) may be the State educational agency, the State 
                agency responsible for administering workforce 
                investment activities, or the State agency responsible 
                for administering community or technical colleges.
          ``(3) Eligible provider.--The term `eligible provider' means 
        an organization of demonstrated effectiveness which is--
                  ``(A) a local educational agency;
                  ``(B) a community-based or faith-based organization;
                  ``(C) a volunteer literacy organization;
                  ``(D) an institution of higher education;
                  ``(E) a public or private educational agency;
                  ``(F) a library;
                  ``(G) a public housing authority;
                  ``(H) an institution that is not described in any of 
                subparagraphs (A) through (G) and has the ability to 
                provide adult education, basic skills, and family 
                literacy education programs to adults and families; or
                  ``(I) a consortium of the agencies, organizations, 
                institutions, libraries, or authorities described in 
                any of subparagraphs (A) through (H).
          ``(4) English language acquisition program.--The term 
        `English language acquisition program' means a program of 
        instruction--
                  ``(A) designed to help English learners achieve 
                competence in reading, writing, speaking, and 
                comprehension of the English language; and
                  ``(B) that may lead to--
                          ``(i) attainment of a secondary school 
                        diploma or its recognized equivalent;
                          ``(ii) transition to success in postsecondary 
                        education and training; and
                          ``(iii) employment or career advancement.
          ``(5) Family literacy education program.--The term `family 
        literacy education program' means an educational program that--
                  ``(A) assists parents and students, on a voluntary 
                basis, in achieving the purposes of this title as 
                described in section 202; and
                  ``(B) is of sufficient intensity in terms of hours 
                and of sufficient quality to make sustainable changes 
                in a family, is evidence-based, and, for the purpose of 
                substantially increasing the ability of parents and 
                children to read, write, and speak English, 
                integrates--
                          ``(i) interactive literacy activities between 
                        parents and their children;
                          ``(ii) training for parents regarding how to 
                        be the primary teacher for their children and 
                        full partners in the education of their 
                        children;
                          ``(iii) parent literacy training that leads 
                        to economic self-sufficiency; and
                          ``(iv) an age-appropriate education to 
                        prepare children for success in school and life 
                        experiences.
          ``(6) Governor.--The term `Governor' means the chief 
        executive officer of a State or outlying area.
          ``(7) Individual with a disability.--
                  ``(A) In general.--The term `individual with a 
                disability' means an individual with any disability (as 
                defined in section 3 of the Americans with Disabilities 
                Act of 1990).
                  ``(B) Individuals with disabilities.--The term 
                `individuals with disabilities' means more than one 
                individual with a disability.
          ``(8) English learner.--The term `English learner' means an 
        adult or out-of-school youth who has limited ability in 
        reading, writing, speaking, or understanding 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.
          ``(9) Integrated education and training.--The term 
        `integrated education and training' means services that provide 
        adult education and literacy activities contextually and 
        concurrently with workforce preparation activities and 
        workforce training for a specific occupation or occupational 
        cluster. Such services may include offering adult education 
        services concurrent with postsecondary education and training, 
        including through co-instruction.
          ``(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.
          ``(11) Literacy.--The term `literacy' means an individual's 
        ability to read, write, and speak in English, compute, and 
        solve problems at a level of proficiency necessary to obtain 
        employment and to successfully make the transition to 
        postsecondary education.
          ``(12) 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.
          ``(13) Outlying area.--The term `outlying area' has the 
        meaning given the term in section 101 of this Act.
          ``(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 community college; 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) State.--The term `State' means each of the several 
        States of the United States, the District of Columbia, and the 
        Commonwealth of Puerto Rico.
          ``(17) State educational agency.--The term `State educational 
        agency' has the meaning given the term in section 9101 of the 
        Elementary and Secondary Education Act of 1965.
          ``(18) Workplace literacy program.--The term `workplace 
        literacy program' means an educational program that is offered 
        in collaboration between eligible providers and employers or 
        employee organizations for the purpose of improving the 
        productivity of the workforce through the improvement of 
        reading, writing, speaking, and math skills.

``SEC. 204. HOME SCHOOLS.

  ``Nothing in this title shall be construed to affect home schools, 
whether or not a home school is treated as a home school or a private 
school under State law, or to compel a parent engaged in home schooling 
to participate in adult education and family literacy education 
activities under this title.

``SEC. 205. AUTHORIZATION OF APPROPRIATIONS.

  ``There are authorized to be appropriated to carry out this title, 
$606,294,933 for fiscal years 2014 and for each of the 6 succeeding 
fiscal years.

                    ``Subtitle A--Federal Provisions

``SEC. 211. RESERVATION OF FUNDS; GRANTS TO ELIGIBLE AGENCIES; 
                    ALLOTMENTS.

  ``(a) Reservation of Funds.--From the sums appropriated under section 
205 for a fiscal year, the Secretary shall reserve 2.0 percent to carry 
out section 242.
  ``(b) Grants to Eligible Agencies.--
          ``(1) In general.--From the sums appropriated under section 
        205 and not reserved under subsection (a) for a fiscal year, 
        the Secretary shall award a grant to each eligible agency 
        having a State plan approved under section 224 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).
          ``(2) Purpose of grants.--The Secretary may award a grant 
        under paragraph (1) only if the eligible agency involved agrees 
        to expend the grant in accordance with the provisions of this 
        title.
  ``(c) Allotments.--
          ``(1) Initial allotments.--From the sums appropriated under 
        section 205 and not reserved under subsection (a) for a fiscal 
        year, the Secretary shall allot to each eligible agency having 
        a State plan approved under section 224--
                  ``(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 sums appropriated 
        under section 205, not reserved under subsection (a), and not 
        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 sums 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) 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) 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) Termination of eligibility.--Notwithstanding any other 
        provision of law, the Republic of Palau shall be eligible to 
        receive a grant under this title until an agreement for the 
        extension of United States education assistance under the 
        Compact of Free Association for the Republic of Palau becomes 
        effective.
  ``(f) Hold-Harmless Provisions.--
          ``(1) In general.--Notwithstanding subsection (c) and subject 
        to paragraph (2), for--
                  ``(A) fiscal year 2014, no eligible agency shall 
                receive an allotment under this title that is less than 
                90 percent of the allotment the eligible agency 
                received for fiscal year 2012 under this title; and
                  ``(B) fiscal year 2015 and each succeeding fiscal 
                year, no eligible agency shall receive an allotment 
                under this title that is less than 90 percent of the 
                allotment the eligible agency received for the 
                preceding fiscal year under this title.
          ``(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 
        ratable 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.

``SEC. 212. PERFORMANCE ACCOUNTABILITY SYSTEM.

  ``Programs and activities authorized under this title are subject to 
the performance accountability provisions described in paragraph (2)(A) 
and (3) of section 136(b) and may, at a State's discretion, include 
additional indicators identified in the State plan approved under 
section 224.

                     ``Subtitle B--State Provisions

``SEC. 221. STATE ADMINISTRATION.

  ``Each eligible agency shall be responsible for the following 
activities under this title:
          ``(1) The development, submission, implementation, and 
        monitoring of the State plan.
          ``(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.
          ``(3) Coordination and avoidance of duplication with other 
        Federal and State education, training, corrections, public 
        housing, and social service programs.

``SEC. 222. STATE DISTRIBUTION OF FUNDS; MATCHING REQUIREMENT.

  ``(a) State Distribution of Funds.--Each eligible agency receiving a 
grant under this title for a fiscal year--
          ``(1) shall use an amount 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 10 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 $65,000, 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 family literacy education 
        programs 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 family literacy 
                education programs 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 family literacy education 
                programs 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 family literacy education programs in a manner 
        that is consistent with the purpose of this title.

``SEC. 223. STATE LEADERSHIP ACTIVITIES.

  ``(a) In General.--Each eligible agency may use funds made available 
under section 222(a)(2) for any of the following adult education and 
family literacy education programs:
          ``(1) The establishment or operation of professional 
        development programs to improve the quality of instruction 
        provided pursuant to local activities required under section 
        231(b).
          ``(2) The provision of technical assistance to eligible 
        providers of adult education and family literacy education 
        programs, including for the development and dissemination of 
        evidence based research instructional practices in reading, 
        writing, speaking, math, and English language acquisition 
        programs.
          ``(3) The provision of assistance to eligible providers in 
        developing, implementing, and reporting measurable progress in 
        achieving the objectives of this title.
          ``(4) The monitoring and evaluation of the quality of, and 
        the improvement in, adult education and literacy activities.
          ``(5) The provision of technology assistance, including staff 
        training, to eligible providers of adult education and family 
        literacy education programs, including distance education 
        activities, to enable the eligible providers to improve the 
        quality of such activities.
          ``(6) The development and implementation of technology 
        applications or distance education, including professional 
        development to support the use of instructional technology.
          ``(7) Coordination with other public programs, including 
        programs under title I of this Act, and other welfare-to-work, 
        workforce development, and job training programs.
          ``(8) Coordination with existing support services, such as 
        transportation, child care, and other assistance designed to 
        increase rates of enrollment in, and successful completion of, 
        adult education and family literacy education programs, for 
        adults enrolled in such activities.
          ``(9) The development and implementation of a system to 
        assist in the transition from adult basic education to 
        postsecondary education.
          ``(10) Activities to promote workplace literacy programs.
          ``(11) Other activities of statewide significance, including 
        assisting eligible providers in achieving progress in improving 
        the skill levels of adults who participate in programs under 
        this title.
          ``(12) Integration of literacy, instructional, and 
        occupational skill training and promotion of linkages with 
        employees.
  ``(b) Coordination.--In carrying out this section, eligible agencies 
shall coordinate 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 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. STATE PLAN.

  ``(a) 3-Year Plans.--
          ``(1) In general.--Each eligible agency desiring a grant 
        under this title for any fiscal year shall submit to, or have 
        on file with, the Secretary a 3-year State plan.
          ``(2) State unified plan.--The eligible agency may submit the 
        State plan as part of a State unified plan described in section 
        501.
  ``(b) Plan Contents.--The eligible agency shall include in the State 
plan or any revisions to the State plan--
          ``(1) an objective assessment of the needs of individuals in 
        the State or outlying area for adult education and family 
        literacy education programs, including individuals most in need 
        or hardest to serve;
          ``(2) a description of the adult education and family 
        literacy education programs that will be carried out with funds 
        received under this title;
          ``(3) an assurance that the funds received under this title 
        will not be expended for any purpose other than for activities 
        under this title;
          ``(4) a description of how the eligible agency will annually 
        evaluate and measure the effectiveness and improvement of the 
        adult education and family literacy education programs funded 
        under this title using the indicators of performance described 
        in section 136, including how the eligible agency will conduct 
        such annual evaluations and measures for each grant received 
        under this title;
          ``(5) a description of how the eligible agency will fund 
        local activities in accordance with the measurable goals 
        described in section 231(d);
          ``(6) an assurance that the eligible agency will expend the 
        funds under this title only in a manner consistent with fiscal 
        requirements in section 241;
          ``(7) a description of the process that will be used for 
        public participation and comment with respect to the State 
        plan, which--
                  ``(A) shall include consultation with the State 
                workforce investment board, the State board responsible 
                for administering community or technical colleges, the 
                Governor, the State educational agency, the State board 
                or agency responsible for administering block grants 
                for temporary assistance to needy families under title 
                IV of the Social Security Act, the State council on 
                disabilities, the State vocational rehabilitation 
                agency, and other State agencies that promote the 
                improvement of adult education and family literacy 
                education programs, and direct providers of such 
                programs; and
                  ``(B) may include consultation with the State agency 
                on higher education, institutions responsible for 
                professional development of adult education and family 
                literacy education programs instructors, 
                representatives of business and industry, refugee 
                assistance programs, and faith-based organizations;
          ``(8) a description of the eligible agency's strategies for 
        serving populations that include, at a minimum--
                  ``(A) low-income individuals;
                  ``(B) individuals with disabilities;
                  ``(C) the unemployed;
                  ``(D) the underemployed; and
                  ``(E) individuals with multiple barriers to 
                educational enhancement, including English learners;
          ``(9) a description of how the adult education and family 
        literacy education programs that will be carried out with any 
        funds received under this title will be integrated with other 
        adult education, career development, and employment and 
        training activities in the State or outlying area served by the 
        eligible agency;
          ``(10) a description of the steps the eligible agency will 
        take to ensure direct and equitable access, as required in 
        section 231(c)(1), including--
                  ``(A) how the State will build the capacity of 
                community-based and faith-based organizations to 
                provide adult education and family literacy education 
                programs; and
                  ``(B) how the State will increase the participation 
                of business and industry in adult education and family 
                literacy education programs;
          ``(11) an assessment of the adequacy of the system of the 
        State or outlying area to ensure teacher quality and a 
        description of how the State or outlying area will use funds 
        received under this subtitle to improve teacher quality, 
        including evidence-based professional development to improve 
        instruction; and
          ``(12) a description of how the eligible agency will consult 
        with any State agency responsible for postsecondary education 
        to develop adult education that prepares students to enter 
        postsecondary education without the need for remediation upon 
        completion of secondary school equivalency programs.
  ``(c) Plan Revisions.--When changes in conditions or other factors 
require substantial revisions to an approved State plan, the eligible 
agency shall submit the revisions of the State plan to the Secretary.
  ``(d) Consultation.--The eligible agency shall--
          ``(1) submit the State plan, and any revisions to the State 
        plan, to the Governor, the chief State school officer, or the 
        State officer responsible for administering community or 
        technical colleges, or outlying area for review and comment; 
        and
          ``(2) ensure that any comments regarding the State plan by 
        the Governor, the chief State school officer, or the State 
        officer responsible for administering community or technical 
        colleges, and any revision to the State plan, are submitted to 
        the Secretary.
  ``(e) Plan Approval.--The Secretary shall--
          ``(1) approve a State plan within 90 days after receiving the 
        plan unless the Secretary makes a written determination within 
        30 days after receiving the plan that the plan does not meet 
        the requirements of this section or is inconsistent with 
        specific provisions of this subtitle; and
          ``(2) not finally disapprove of a State plan before offering 
        the eligible agency the opportunity, prior to the expiration of 
        the 30-day period beginning on the date on which the eligible 
        agency received the written determination described in 
        paragraph (3), to review the plan and providing technical 
        assistance in order to assist the eligible agency in meeting 
        the requirements of this subtitle.

``SEC. 225. 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) basic skills education;
          ``(2) special education programs as determined by the 
        eligible agency;
          ``(3) reading, writing, speaking, and math programs;
          ``(4) secondary school credit or diploma programs or their 
        recognized equivalent; and
          ``(5) integrated education and training.
  ``(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) Definitions.--For purposes of 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.

                     ``Subtitle C--Local Provisions

``SEC. 231. 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 multi-year grants 
or contracts, on a competitive basis, to eligible providers within the 
State or outlying area that meet the conditions and requirements of 
this title to enable the eligible providers to develop, implement, and 
improve adult education and family literacy education programs within 
the State.
  ``(b) Local Activities.--The eligible agency shall require eligible 
providers receiving a grant or contract under subsection (a) to 
establish or operate--
          ``(1) programs that provide adult education and literacy 
        activities;
          ``(2) programs that provide integrated employment and 
        training activities; or
          ``(3) credit-bearing postsecondary coursework.
  ``(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 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) Measurable Goals.--The eligible agency shall require eligible 
providers receiving a grant or contract under subsection (a) to 
demonstrate--
          ``(1) the eligible provider's measurable goals for 
        participant outcomes to be achieved annually on the core 
        indicators of performance described in section 136(b)(2)(A);
          ``(2) the past effectiveness of the eligible provider in 
        improving the basic academic skills of adults and, for eligible 
        providers receiving grants in the prior year, the success of 
        the eligible provider receiving funding under this title in 
        exceeding its performance goals in the prior year;
          ``(3) the commitment of the eligible provider to serve 
        individuals in the community who are the most in need of basic 
        academic skills instruction services, including individuals 
        with disabilities and individuals who are low-income or have 
        minimal reading, writing, speaking, and math skills, or are 
        English learners;
          ``(4) the program is of sufficient intensity and quality for 
        participants to achieve substantial learning gains;
          ``(5) educational practices are evidence-based;
          ``(6) the activities of the eligible provider effectively 
        employ advances in technology, and delivery systems including 
        distance education;
          ``(7) the activities provide instruction in real-life 
        contexts, including integrated education and training when 
        appropriate, to ensure that an individual has the skills needed 
        to compete in the workplace and exercise the rights and 
        responsibilities of citizenship;
          ``(8) the activities are staffed by well-trained instructors, 
        counselors, and administrators who meet minimum qualifications 
        established by the State;
          ``(9) the activities are coordinated with other available 
        resources in the community, such as through strong links with 
        elementary schools and secondary schools, postsecondary 
        educational institutions, local workforce investment boards, 
        one-stop centers, job training programs, community-based and 
        faith-based organizations, and social service agencies;
          ``(10) the activities offer flexible schedules and support 
        services (such as child care and transportation) that are 
        necessary to enable individuals, including individuals with 
        disabilities or other special needs, to attend and complete 
        programs;
          ``(11) the activities include a high-quality information 
        management system that has the capacity to report measurable 
        participant outcomes (consistent with section 136) and to 
        monitor program performance;
          ``(12) the local communities have a demonstrated need for 
        additional English language acquisition programs, and 
        integrated education and training programs;
          ``(13) the capacity of the eligible provider to produce valid 
        information on performance results, including enrollments and 
        measurable participant outcomes;
          ``(14) adult education and family literacy education programs 
        offer rigorous reading, writing, speaking, and math content 
        that are evidence based; and
          ``(15) applications of technology, and services to be 
        provided by the eligible providers, are of sufficient intensity 
        and duration to increase the amount and quality of learning and 
        lead to measurable learning gains within specified time 
        periods.
  ``(e) Special Rule.--Eligible providers may use grant funds under 
this title to serve children participating in family literacy programs 
assisted under this part, provided that other sources of funds 
available to provide similar services for such children are used first.

``SEC. 232. LOCAL APPLICATION.

  ``Each eligible provider desiring a grant or contract under this 
title 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 family 
        literacy education programs; and
          ``(3) each of the demonstrations required by section 231(d).

``SEC. 233. 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) at least 95 percent shall be expended for carrying out 
        adult education and family literacy education programs; and
          ``(2) the remaining amount shall be used for planning, 
        administration, personnel and professional development, 
        development of measurable goals in reading, writing, speaking, 
        and math, and interagency coordination.
  ``(b) Special Rule.--In cases where the cost limits described in 
subsection (a) are too restrictive to allow for adequate planning, 
administration, personnel development, and interagency coordination, 
the eligible provider may 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. ADMINISTRATIVE PROVISIONS.

  ``Funds made available for adult education and family literacy 
education programs under this title shall supplement and not supplant 
other State or local public funds expended for adult education and 
family literacy education programs.

``SEC. 242. NATIONAL ACTIVITIES.

  ``The Secretary shall establish and carry out a program of national 
activities that may include the following:
          ``(1) Providing technical assistance to eligible entities, on 
        request, to--
                  ``(A) improve their fiscal management, research-based 
                instruction, and reporting requirements to carry out 
                the requirements of this title;
                  ``(B) improve its performance on the core indicators 
                of performance described in section 136;
                  ``(C) provide adult education professional 
                development; and
                  ``(D) use distance education and improve the 
                application of technology in the classroom, including 
                instruction in English language acquisition for English 
                learners.
          ``(2) Providing for the conduct of research on national 
        literacy basic skill acquisition levels among adults, including 
        the number of adult English learners functioning at different 
        levels of reading proficiency.
          ``(3) Improving the coordination, efficiency, and 
        effectiveness of adult education and workforce development 
        services at the national, State, and local levels.
          ``(4) Determining how participation in adult education, 
        English language acquisition, and family literacy education 
        programs prepares individuals for entry into and success in 
        postsecondary education and employment, and in the case of 
        prison-based services, the effect on recidivism.
          ``(5) Evaluating how different types of providers, including 
        community and faith-based organizations or private for-profit 
        agencies measurably improve the skills of participants in adult 
        education, English language acquisition, and family literacy 
        education programs.
          ``(6) Identifying model integrated basic and workplace skills 
        education programs, including programs for English learners 
        coordinated literacy and employment services, and effective 
        strategies for serving adults with disabilities.
          ``(7) Initiating other activities designed to improve the 
        measurable quality and effectiveness of adult education, 
        English language acquisition, and family literacy education 
        programs nationwide.''.

             TITLE III--AMENDMENTS TO THE WAGNER-PEYSER ACT

SEC. 301. AMENDMENTS TO THE WAGNER-PEYSER ACT.

  The Wagner-Peyser Act (29 U.S.C. 49 et seq.) is amended by amending 
section 15 to read as follows:

``SEC. 15. WORKFORCE AND LABOR MARKET INFORMATION SYSTEM.

  ``(a) System Content.--
          ``(1) In general.--The Secretary of Labor, in accordance with 
        the provisions of this section, shall oversee the development, 
        maintenance, and continuous improvement of a nationwide 
        workforce and labor market information system that includes--
                  ``(A) statistical data from cooperative statistical 
                survey and projection programs and data from 
                administrative reporting systems that, taken together, 
                enumerate, estimate, and project employment 
                opportunities and conditions at national, State, and 
                local levels in a timely manner, including statistics 
                on--
                          ``(i) employment and unemployment status of 
                        national, State, and local populations, 
                        including self-employed, part-time, and 
                        seasonal workers;
                          ``(ii) industrial distribution of 
                        occupations, as well as current and projected 
                        employment opportunities, wages, benefits 
                        (where data is available), and skill trends by 
                        occupation and industry, with particular 
                        attention paid to State and local conditions;
                          ``(iii) the incidence of, industrial and 
                        geographical location of, and number of workers 
                        displaced by, permanent layoffs and plant 
                        closings; and
                          ``(iv) employment and earnings information 
                        maintained in a longitudinal manner to be used 
                        for research and program evaluation;
                  ``(B) information on State and local employment 
                opportunities, and other appropriate statistical data 
                related to labor market dynamics, which--
                          ``(i) shall be current and comprehensive;
                          ``(ii) shall meet the needs identified 
                        through the consultations described in 
                        subparagraphs (A) and (B) of subsection (e)(2); 
                        and
                          ``(iii) shall meet the needs for the 
                        information identified in section 121;
                  ``(C) technical standards (which the Secretary shall 
                publish annually) for data and information described in 
                subparagraphs (A) and (B) that, at a minimum, meet the 
                criteria of chapter 35 of title 44, United States Code;
                  ``(D) procedures to ensure compatibility and 
                additivity of the data and information described in 
                subparagraphs (A) and (B) from national, State, and 
                local levels;
                  ``(E) procedures to support standardization and 
                aggregation of data from administrative reporting 
                systems described in subparagraph (A) of employment-
                related programs;
                  ``(F) analysis of data and information described in 
                subparagraphs (A) and (B) for uses such as--
                          ``(i) national, State, and local 
                        policymaking;
                          ``(ii) implementation of Federal policies 
                        (including allocation formulas);
                          ``(iii) program planning and evaluation; and
                          ``(iv) researching labor market dynamics;
                  ``(G) wide dissemination of such data, information, 
                and analysis in a user-friendly manner and voluntary 
                technical standards for dissemination mechanisms; and
                  ``(H) programs of--
                          ``(i) training for effective data 
                        dissemination;
                          ``(ii) research and demonstration; and
                          ``(iii) programs and technical assistance.
          ``(2) Information to be confidential.--
                  ``(A) In general.--No officer or employee of the 
                Federal Government or agent of the Federal Government 
                may--
                          ``(i) use any submission that is furnished 
                        for exclusively statistical purposes under the 
                        provisions of this section for any purpose 
                        other than the statistical purposes for which 
                        the submission is furnished;
                          ``(ii) disclose to the public any publication 
                        or media transmittal of the data contained in 
                        the submission described in clause (i) that 
                        permits information concerning an individual 
                        subject to be reasonably inferred by either 
                        direct or indirect means; or
                          ``(iii) permit anyone other than a sworn 
                        officer, employee, or agent of any Federal 
                        department or agency, or a contractor 
                        (including an employee of a contractor) of such 
                        department or agency, to examine an individual 
                        submission described in clause (i),
                without the consent of the individual, agency, or other 
                person who is the subject of the submission or provides 
                that submission.
                  ``(B) Immunity from legal process.--Any submission 
                (including any data derived from the submission) that 
                is collected and retained by a Federal department or 
                agency, or an officer, employee, agent, or contractor 
                of such a department or agency, for exclusively 
                statistical purposes under this section shall be immune 
                from the legal process and shall not, without the 
                consent of the individual, agency, or other person who 
                is the subject of the submission or provides that 
                submission, be admitted as evidence or used for any 
                purpose in any action, suit, or other judicial or 
                administrative proceeding.
                  ``(C) Rule of construction.--Nothing in this section 
                shall be construed to provide immunity from the legal 
                process for such submission (including any data derived 
                from the submission) if the submission is in the 
                possession of any person, agency, or entity other than 
                the Federal Government or an officer, employee, agent, 
                or contractor of the Federal Government, or if the 
                submission is independently collected, retained, or 
                produced for purposes other than the purposes of this 
                Act.
  ``(b) System Responsibilities.--
          ``(1) In general.--The workforce and labor market information 
        system described in subsection (a) shall be planned, 
        administered, overseen, and evaluated through a cooperative 
        governance structure involving the Federal Government and 
        States.
          ``(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 all statistical and administrative data 
                collected is consistent with appropriate Bureau of 
                Labor Statistics standards and definitions.
                  ``(B) Actively seek the cooperation 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) Eliminate gaps and duplication in statistical 
                undertakings, with the systemization of wage surveys as 
                an early priority.
                  ``(D) In collaboration with the Bureau of Labor 
                Statistics and 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).
                  ``(E) Establish procedures for the system to ensure 
                that--
                          ``(i) such data and information are timely;
                          ``(ii) paperwork and reporting for the system 
                        are reduced to a minimum; and
                          ``(iii) States and localities are fully 
                        involved in the development and continuous 
                        improvement of the system at all levels.
  ``(c) National Electronic Tools To Provide Services.--The Secretary 
is authorized to assist in the development of national electronic tools 
that may be used to facilitate the delivery of work ready services 
described in section 134(c)(2) and to provide workforce information to 
individuals through the one-stop delivery systems described in section 
121 and through other appropriate delivery systems.
  ``(d) Coordination With the States.--
          ``(1) In general.--The Secretary, working through the Bureau 
        of Labor Statistics and the Employment and Training 
        Administration, shall regularly consult with representatives of 
        State agencies carrying out workforce information activities 
        regarding strategies for improving the workforce and labor 
        market information system.
          ``(2) Formal consultations.--At least twice each year, the 
        Secretary, working through the Bureau of Labor Statistics, 
        shall conduct formal consultations regarding programs carried 
        out by the Bureau of Labor Statistics with representatives of 
        each of the Federal regions of the Bureau of Labor Statistics, 
        elected (pursuant to a process established by the Secretary) 
        from the State directors affiliated with State agencies that 
        perform the duties described in subsection (e)(2).
  ``(e) State Responsibilities.--
          ``(1) In general.--In order to receive Federal financial 
        assistance under this section, the Governor of a State shall--
                  ``(A) be responsible for the management of the 
                portions of the workforce and labor market information 
                system described in subsection (a) that comprise a 
                statewide workforce and labor market information system 
                and for the State's participation in the development of 
                the annual plan;
                  ``(B) establish a process for the oversight of such 
                system;
                  ``(C) consult with State and local employers, 
                participants, and local workforce investment boards 
                about the labor market relevance of the data to be 
                collected and disseminated through the statewide 
                workforce and labor market information system;
                  ``(D) consult with State educational agencies and 
                local educational agencies concerning the provision of 
                employment statistics in order to meet the needs of 
                secondary school and postsecondary school students who 
                seek such information;
                  ``(E) collect and disseminate for the system, on 
                behalf of the State and localities in the State, the 
                information and data described in subparagraphs (A) and 
                (B) of subsection (a)(1);
                  ``(F) maintain and continuously improve the statewide 
                workforce and labor market information system in 
                accordance with this section;
                  ``(G) perform contract and grant responsibilities for 
                data collection, analysis, and dissemination for such 
                system;
                  ``(H) conduct such other data collection, analysis, 
                and dissemination activities as will ensure an 
                effective statewide workforce and labor market 
                information system;
                  ``(I) actively seek the participation of other State 
                and local agencies in data collection, analysis, and 
                dissemination activities in order to ensure 
                complementarity, compatibility, and usefulness of data;
                  ``(J) participate in the development of the annual 
                plan described in subsection (c); and
                  ``(K) utilize the quarterly records described in 
                section 136(f)(2) to assist the State and other States 
                in measuring State progress on State performance 
                measures.
          ``(2) Rule of construction.--Nothing in this section shall be 
        construed as limiting the ability of a Governor to conduct 
        additional data collection, analysis, and dissemination 
        activities with State funds or with Federal funds from sources 
        other than this section.
  ``(f) Nonduplication Requirement.--None of the functions and 
activities carried out pursuant to this section shall duplicate the 
functions and activities carried out under the Carl D. Perkins Career 
and Technical Education Act of 2006 (20 U.S.C. 2301 et seq.).
  ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $63,473,000 for fiscal year 2014 
and each of the 6 succeeding fiscal years.
  ``(h) Definition.--In this section, the term `local area' means the 
smallest geographical area for which data can be produced with 
statistical reliability.''.

              TITLE IV--REPEALS AND CONFORMING AMENDMENTS

SEC. 401. REPEALS.

  The following provisions are repealed:
          (1) Chapter 4 of subtitle B of title I, and sections 123, 
        155, 166, 167, 168, 169, 171, 173, 173A, 174, 192, 194, 502, 
        503, and 506 of the Workforce Investment Act of 1998.
          (2) Title V of the Older Americans Act of 1965 (42 U.S.C. 
        3056 et seq.).
          (3) Sections 1 through 14 of the Wagner-Peyser Act (29 U.S.C. 
        49 et seq.).
          (4) Twenty-First Century Workforce Commission Act (29 U.S.C. 
        2701 note).
          (5) Youth Conservation Corps Act of 1970 (16 U.S.C. 1701 et 
        seq.).
          (6) Section 821 of the Higher Education Amendments of 1998 
        (20 U.S.C. 1151) (Grants to States for workplace and community 
        transition training for incarcerated individuals).
          (7) The Women in Apprenticeship and Nontraditional 
        Occupations Act (29 U.S.C. 2501 et seq.).
          (8) Sections 4103A and 4104 of title 38, United States Code.

SEC. 402. AMENDMENT TO THE COMPREHENSIVE ENVIRONMENTAL RESPONSE, 
                    COMPENSATION, AND LIABILITY ACT OF 1980.

  Section 104(k)(6) of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9604) is amended by 
striking ``, training,''.

SEC. 403. AMENDMENTS TO THE FOOD AND NUTRITION ACT OF 2008.

  (a) Definition.--Section 3(t) of the Food and Nutrition Act of 2008 
(7 U.S.C. 2012(t)) is amended--
          (1) by striking ``and (2)'' and inserting ``(2)'', and
          (2) by inserting before the period at the end the following:
  ``, and (3) when referencing employment and training activities under 
section 6(d)(4), a State board as defined in section 101 of the 
Workforce Investment Act of 1998 (29 U.S.C. 2801)''.
  (b) Eligible Households.--Section 5 of the Food and Nutrition Act of 
2008 (7 U.S.C. 2014) is amended--
          (1) in subsection (d)(14) by striking ``section 6(d)(4)(I)'' 
        and inserting ``section 6(d)(4)(C)'', and
          (2) in subsection (g)(3) by striking ``constitutes adequate 
        participation in an employment and training program under 
        section 6(d)'' and inserting ``allows the individual to 
        participate in employment and training activities under section 
        6(d)(4)''.
  (c) Eligibility Disqualifications.--Section 6(d)(4) of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2015(d)(4)) is amended to read as 
follows:
          ``(4) Employment and training.--
                  ``(A) Implementation.--Each State agency shall 
                provide employment and training services authorized 
                under section 134 of the Workforce Investment Act of 
                1998 (29 U.S.C. 2864) to eligible members of households 
                participating in the supplemental nutrition assistance 
                program in gaining skills, training, work, or 
                experience that will increase their ability to obtain 
                regular employment.
                  ``(B) Statewide workforce development system.--
                Consistent with subparagraph (A), employment and 
                training services shall be provided through the 
                statewide workforce development system, including the 
                One-Stop delivery system, authorized by the Workforce 
                Investment Act of 1998 (29 U.S.C. 2801 et seq.).
                  ``(C) Reimbursements.--
                          ``(i) Actual costs.--The State agency shall 
                        provide payments or reimbursement to 
                        participants served under this paragraph for--
                                  ``(I) the actual costs of 
                                transportation and other actual costs 
                                (other than dependent care costs) that 
                                are reasonably necessary and directly 
                                related to the individual participating 
                                in employment and training activities; 
                                and
                                  ``(II) the actual costs of such 
                                dependent care expenses that are 
                                determined by the State agency to be 
                                necessary for the individual to 
                                participate in employment and training 
                                activities (other than an individual 
                                who is the caretaker relative of a 
                                dependent in a family receiving 
                                benefits under part A of title IV of 
                                the Social Security Act (42 U.S.C. 601 
                                et seq.) in a local area where an 
                                employment, training, or education 
                                program under title IV of such Act is 
                                in operation), except that no such 
                                payment or reimbursement shall exceed 
                                the applicable local market rate.
                          ``(ii) Service contracts and vouchers.--In 
                        lieu of providing reimbursements or payments 
                        for dependent care expenses under clause (i), a 
                        State agency may, at its option, arrange for 
                        dependent care through providers by the use of 
                        purchase of service contracts or vouchers or by 
                        providing vouchers to the household.
                          ``(iii) Value of reimbursements.--The value 
                        of any dependent care services provided for or 
                        arranged under clause (ii), or any amount 
                        received as a payment or reimbursement under 
                        clause (i), shall--
                                  ``(I) not be treated as income for 
                                the purposes of any other Federal or 
                                federally assisted program that bases 
                                eligibility for, or the amount of 
                                benefits on, need; and
                                  ``(II) not be claimed as an 
                                employment-related expense for the 
                                purposes of the credit provided under 
                                section 21 of the Internal Revenue Code 
                                of 1986 (26 U.S.C. 21).''.
  (d) Administration.--Section 11(e)(19) of the Food and Nutrition Act 
of 2008 (7 U.S.C. 2020(e)(11) is amended to read as follows:
          ``(19) the plans of the State agency for providing employment 
        and training services under section 6(d)(4);''.
  (e) Administrative Cost-Sharing and Quality Control.--Section 16(h) 
of the Food and Nutrition Act of 2008 (7 U.S.C. 2025) is amended--
          (1) in paragraph (1)--
                  (A) in subparagraph (A) by striking ``carry out 
                employment and training programs'' and inserting 
                ``provide employment and training services to eligible 
                households under section 6(d)(4)'', and
                  (B) in subparagraph (D) by striking ``operating an 
                employment and training program'' and inserting 
                ``providing employment and training services consistent 
                with section 6(d)(4)'',
          (2) in paragraph (3) by striking ``related to participation 
        in an employment and training program'' and inserting ``the 
        individual participating in employment and training 
        activities'',
          (3) in paragraph (4) by striking ``for operating an 
        employment and training program'' and inserting ``to provide 
        employment and training services'', and
          (4) by amending paragraph (5) to read as follows:
          ``(5) Monitoring.--The Secretary, in conjunction with the 
        Secretary of Labor, shall monitor each State agency responsible 
        for administering employment and training services under 
        section 6(d)(4) to ensure funds are being spent effectively and 
        efficiently. Each program of employment and training receiving 
        funds under section 6(d)(4) shall be subject to the 
        requirements of the performance accountability system, 
        including having to meet the state performance measures 
        included in section 136 of the Workforce Investment Act (29 
        U.S.C. 2871).''.
  (f) Research, Demonstration, and Evaluations.--Section 17 of the Food 
and Nutrition Act of 2008 (7 U.S.C. 2026) is amended--
          (1) in subsection (b) by striking paragraph (3), and
          (2) in subsection (g)--
                  (A) by inserting ``, in conjunction with the 
                Secretary of Labor,'' after ``Secretary'', and
                  (B) by striking ``programs established'' and 
                inserting ``activities provided to eligible 
                households''.
  (g) Minnesota Family Investment Project.--Section 22(b)(4) of the 
Food and Nutrition Act of 2008 (7 U.S.C. 2031(b)(4)) is amended by 
striking ``equivalent to those offered under the employment and 
training program''.

SEC. 404. AMENDMENTS TO SECTION 412 OF THE IMMIGRATION AND NATIONALITY 
                    ACT.

  (a) Conditions and Considerations.--Section 412(a) of the Immigration 
and Nationality Act (8 U.S.C. 1522(a)) is amended--
          (1) in paragraph (1)--
                  (A) in subparagraph (A)(i), by striking ``make 
                available sufficient resources for employment training 
                and placement'' and inserting ``provide refugees with 
                the opportunity to access employment and training 
                services, including job placement,''; and
                  (B) in subparagraph (B)(ii), by striking 
                ``services;'' and inserting ``services provided through 
                the Workforce Investment Act of 1998 (29 U.S.C. 2801 et 
                seq.);'';
          (2) in paragraph (2)(C)(iii)(II), by inserting ``and 
        training'' after ``employment'';
          (3) in paragraph (6)(A)(ii)--
                  (A) by striking ``insure'' and inserting ``ensure'';
                  (B) by inserting ``and training'' after 
                ``employment''; and
                  (C) by inserting after ``available'' the following: 
                ``through the one-stop delivery system under section 
                121 of the Workforce Investment Act of 1998 (29 U.S.C. 
                2841)''; and
          (4) in paragraph (9), by inserting ``the Secretary of 
        Labor,'' after ``Education,''.
  (b) Program of Initial Resettlement.--Section 412(b)(2) of such Act 
(8 U.S.C. 1522(b)(2)) is amended--
          (1) by striking ``orientation, instruction'' and inserting 
        ``orientation and instruction''; and
          (2) by striking ``, and job training for refugees, and such 
        other education and training of refugees, as facilitates'' and 
        inserting ``for refugees to facilitate''.
  (c) Project Grants and Contracts for Services for Refugees.--Section 
412(c) of such Act (8 U.S.C. 1522(c)) is amended--
          (1) in paragraph (1)--
                  (A) in subparagraph (A)(i), by inserting ``and 
                training'' after ``employment''; and
                  (B) by striking subparagraph (C);
          (2) in paragraph (2)(B), by striking ``paragraph--'' through 
        ``in a manner'' and inserting ``paragraph in a manner''; and
          (3) by adding at the end the following:
  ``(3) In carrying out this section, the Director shall ensure that 
employment and training services are provided through the statewide 
workforce development system, as appropriate, authorized by the 
Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.). Such action 
may include--
          ``(A) making employment and training services as described 
        under section 134 of such Act (29 U.S.C. 2864) available to 
        refugees; and
          ``(B) providing refugees with access to a one-stop delivery 
        system under section 121 of such Act (29 U.S.C. 2841).''.
  (d) Cash Assistance and Medical Assistance to Refugees.--Section 
412(e) of such Act (8 U.S.C. 1522(e)) is amended--
          (1) in paragraph (2)(A)(i), by inserting ``and training'' 
        after ``providing employment''; and
          (2) in paragraph (3), by striking ``The'' and inserting 
        ``Consistent with subsection (c)(3), the''.

SEC. 405. AMENDMENTS RELATING TO THE SECOND CHANCE ACT OF 2007.

  (a) Federal Prisoner Reentry Initiative.--Section 231 of the Second 
Chance Act of 2007 (42 U.S.C. 17541) is amended--
          (1) in subsection (a)(1)(E)--
                  (A) by inserting ``the Department of Labor and'' 
                before ``other Federal agencies''; and
                  (B) by inserting ``State and local workforce 
                investment boards,'' after ``community-based 
                organizations,'';
          (2) in subsection (c)--
                  (A) in paragraph (2), by striking at the end ``and'';
                  (B) in paragraph (3), by striking at the end the 
                period and inserting ``; and''; and
                  (C) by adding at the end the following new paragraph:
          ``(4) to coordinate reentry programs with the employment and 
        training services provided through the statewide workforce 
        investment system under subtitle B of title I of the Workforce 
        Investment Act of 1998 (29 U.S.C. 2811 et seq.).''; and
          (3) in subsection (d), by adding at the end the following new 
        paragraph:
          ``(6) Interaction with the workforce investment system.--
                  ``(A) In general.--In carrying out this section, the 
                Director shall ensure that employment and training 
                services, including such employment and services 
                offered through reentry programs, are provided, as 
                appropriate, through the statewide workforce investment 
                system under subtitle B of title I of the Workforce 
                Investment Act of 1998 (29 U.S.C. 2811 et seq.). Such 
                action may include--
                          ``(i) making employment and training services 
                        available to prisoners prior to and immediately 
                        following the release of such prisoners; or
                          ``(ii) providing prisoners with access by 
                        remote means to a one-stop delivery system 
                        under section 121 of the Workforce Investment 
                        Act of 1998 (29 U.S.C. 2841) in the State in 
                        which the prison involved is located.
                  ``(B) Service defined.--In this paragraph, the term 
                `employment and training services' means those services 
                described in section 134 of the Workforce Investment 
                Act of 1998 (29 U.S.C. 2864) offered by the Bureau of 
                Prisons, including--
                          ``(i) the skills assessment described in 
                        subsection (a)(1)(A);
                          ``(ii) the skills development plan described 
                        in subsection (a)(1)(B); and
                          ``(iii) the enhancement, development, and 
                        implementation of reentry and skills 
                        development programs.''.
  (b) Duties of the Bureau of Prisons.--Section 4042(a)(5)(E) of title 
18, United States Code, is amended--
          (1) in clause (ii), by striking ``Employment'' and inserting 
        ``Employment and training services (as defined in paragraph (6) 
        of section 231(d) of the Second Chance Act of 2007), including 
        basic skills attainment, consistent with such paragraph'';
          (2) by striking clause (iii); and
          (3) by redesignating clauses (iv), (v), (vi), and (vii) as 
        clauses (iii), (iv), (v), and (vi), respectively.

SEC. 406. AMENDMENTS TO THE OMNIBUS CRIME CONTROL AND SAFE STREETS ACT 
                    OF 1968.

  Section 2976 of the Omnibus Crime Control and Safe Streets Act of 
1968 (42 U.S.C. 3797w) is amended--
          (1) in subsection (b)--
                  (A) in paragraph (1), by striking ``vocational'' and 
                inserting ``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 
                training'';
                  (B) by redesignating each of paragraphs (4) through 
                (7) as paragraphs (5) through (8), respectively; and
                  (C) by inserting after paragraph (3) the following 
                new paragraph:
          ``(4) coordinating employment and training services provided 
        through the statewide workforce investment system under 
        subtitle B of title I of the Workforce Investment Act of 1998 
        (29 U.S.C. 2811 et seq.), including a one-stop delivery system 
        under section 121 of such Act (29 U.S.C. 2841), for offenders 
        upon release from prison, jail, or a juvenile facility, as 
        appropriate;'';
          (2) in subsection (d)(2), by inserting ``, including local 
        workforce investment boards established under section 117 of 
        the Workforce Investment Act of 1998 (29 U.S.C. 2832),'' after 
        ``nonprofit organizations'';
          (3) in subsection (e)--
                  (A) in paragraph (3), by striking ``victim services, 
                and employment services'' and inserting ``and victim 
                services'';
                  (B) by redesignating paragraphs (4) and (5) as 
                paragraphs (5) and (6), respectively; and
                  (C) by inserting after paragraph (3) the following 
                new paragraph:
          ``(4) provides employment and training services through the 
        statewide workforce investment system under subtitle B of title 
        I of the Workforce Investment Act of 1998 (29 U.S.C. 2811 et 
        seq.), including a one-stop delivery system under section 121 
        of such Act (29 U.S.C. 2841); and'';
          (4) in subsection (k)--
                  (A) in paragraph (1)(A), by inserting ``, in 
                accordance with paragraph (2)'' after ``under this 
                section'';
                  (B) by redesignating paragraphs (2) and (3) as 
                paragraphs (3) and (4), respectively; and
                  (C) by inserting after paragraph (1) the following 
                new paragraph:
          ``(2) Employment and training.--The Attorney General shall 
        require each grantee under this section to measure the core 
        indicators of performance as described in section 136(b)(2)(A) 
        of the Workforce Investment Act of 1998 (29 U.S.C. 
        2871(b)(2)(A)) with respect to the program of such grantee 
        funded with a grant under this section.''.

SEC. 407. CONFORMING AMENDMENTS TO THE UNITED STATES CODE.

  Title 38, United States Code, is amended--
          (1) by striking the item relating to section 4103A and 
        section 4104 in the table of sections at the beginning of 
        chapter 41 of such title;
          (2) in section 4102A--
                  (A) in subsection (b)--
                          (i) by striking paragraphs (5), (6), and (7);
                          (ii) by redesignating paragraph (8) as 
                        paragraph (5);
                  (B) by striking subsections (c) and (h);
                  (C) by redesignating subsection (d), (e), (f), and 
                (g) as subsection (c), (d), (e), and (f);
                  (D) in subsection (e)(1) (as so redesignated)--
                          (i) by striking ``, including disabled 
                        veterans' outreach program specialists and 
                        local veterans' employment representatives 
                        providing employment, training, and placement 
                        services under this chapter in a State''; and
                          (ii) by striking ``for purposes of subsection 
                        (c)''.
          (3) in section 4109(a), by striking ``disabled veterans' 
        outreach program specialists and local veterans' employment 
        representative'' and inserting ``veteran employment specialists 
        appointed under section 134(f) of the Workforce Investment Act 
        of 1998'';
          (4) in section 4109(d)(1), by striking ``disabled veterans' 
        outreach program specialists and local veterans' employment 
        representatives'' and inserting ``veteran employment 
        specialists appointed under section 134(f) of the Workforce 
        Investment Act of 1998'';
          (5) in section 4112(d)--
                  (A) in paragraph (1), by striking ``disabled 
                veterans' outreach program specialist'' and inserting 
                ``veteran employment specialist appointed under section 
                134(f) of the Workforce Investment Act of 1998''; and
                  (B) by striking paragraph (2) and redesignating 
                paragraph (3) as paragraph (2);
          (6) in section 3672(d)(1), by striking ``disabled veterans' 
        outreach program specialists under section 4103A'' and 
        inserting ``veteran employment specialists appointed under 
        section 134(f) of the Workforce Investment Act of 1998''; and
          (7) in section 4104A--
                  (A) in subsection (b)(1), by striking subparagraph 
                (A) and inserting the following:
                  ``(A) the appropriate veteran employment specialist 
                (in carrying out the functions described in section 
                134(f) of the Workforce Investment Act of 1998);''; and
                  (B) in subsection (c)(1), by striking subparagraph 
                (A) and inserting the following:
                  ``(A) collaborate with the appropriate veteran 
                employment specialist (as described in section 134(f)) 
                and the appropriate State boards and local boards (as 
                such terms are defined in section 101 of the Workforce 
                Investment Act of 1998 (29 U.S.C. 2801));''.

SEC. 408. CONFORMING AMENDMENT TO TABLE OF CONTENTS.

  The table of contents in section 1(b) is amended to read as follows:

``Sec. 1. Short title; table of contents.

                ``TITLE I--WORKFORCE INVESTMENT SYSTEMS

             ``Subtitle A--Workforce Investment Definitions

``Sec. 101. Definitions.

     ``Subtitle B--Statewide and Local Workforce Investment Systems

``Sec. 106. Purpose.

                     ``Chapter 1--State Provisions

``Sec. 111. State workforce investment boards.
``Sec. 112. State plan.

                     ``Chapter 2--Local Provisions

``Sec. 116. Local workforce investment areas.
``Sec. 117. Local workforce investment boards.
``Sec. 118. Local plan.

         ``Chapter 3--Workforce Investment Activities Providers

``Sec. 121. Establishment of one-stop delivery systems.
``Sec. 122. Identification of eligible providers of training services.
``Sec. 123. [Repealed].

                        ``Chapter 4--[Repealed]

            ``Chapter 5--Employment and Training Activities

``Sec. 131. General authorization.
``Sec. 132. State allotments.
``Sec. 133. Within State allocations.
``Sec. 134. Use of funds for employment and training activities.

                    ``Chapter 6--General Provisions

``Sec. 136. Performance accountability system.
``Sec. 137. 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. [Repealed].
``Sec. 156. Technical assistance to centers.
``Sec. 157. Application of provisions of Federal law.
``Sec. 158. Special provisions.
``Sec. 159. Performance accountability and management.
``Sec. 160. General provisions.
``Sec. 161. Authorization of appropriations.

                    ``Subtitle D--National Programs

``Sec. 166. [Repealed].
``Sec. 167. [Repealed].
``Sec. 168. [Repealed].
``Sec. 169. [Repealed].
``Sec. 170. Technical assistance.
``Sec. 171. [Repealed].
``Sec. 172. Evaluations.
``Sec. 173. [Repealed].
``Sec. 173A. [Repealed].
``Sec. 174. [Repealed].

                      ``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. Administrative provisions.
``Sec. 190. References.
``Sec. 191. State legislative authority.
``Sec. 192. [Repealed].
``Sec. 193. Transfer of Federal equity in State employment security 
real property to the States.
``Sec. 194. [Repealed].
``Sec. 195. General program requirements.
``Sec. 196. Federal agency staff.

            ``Subtitle F--Repeals and Conforming Amendments

``Sec. 199. Repeals.
``Sec. 199A. Conforming amendments.

       ``TITLE II--ADULT EDUCATION AND FAMILY LITERACY EDUCATION

``Sec. 201. Short title.
``Sec. 202. Purpose.
``Sec. 203. Definitions.
``Sec. 204. Home schools.
``Sec. 205. Authorization of appropriations.

                    ``Subtitle A--Federal Provisions

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

                     ``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 activities.

          ``TITLE III--WORKFORCE INVESTMENT-RELATED ACTIVITIES

                    ``Subtitle A--Wagner-Peyser Act

``Sec. 301. Definitions.
``Sec. 302. Functions.
``Sec. 303. Designation of State agencies.
``Sec. 304. Appropriations.
``Sec. 305. Disposition of allotted funds.
``Sec. 306. State plans.
``Sec. 307. Repeal of Federal advisory council.
``Sec. 308. Regulations.
``Sec. 309. Employment statistics.
``Sec. 310. Technical amendments.
``Sec. 311. Effective date.

               ``Subtitle B--Linkages With Other Programs

``Sec. 321. Trade Act of 1974.
``Sec. 322. Veterans' employment programs.
``Sec. 323. Older Americans Act of 1965.

                        ``Subtitle C--[Repealed]

``Subtitle D--Application of Civil Rights and Labor-Management Laws to 
                      the Smithsonian Institution

``Sec. 341. Application of civil rights and labor-management laws to 
the Smithsonian Institution.

           ``TITLE IV--REHABILITATION ACT AMENDMENTS OF 1998

``Sec. 401. Short title.
``Sec. 402. Title.
``Sec. 403. General provisions.
``Sec. 404. Vocational rehabilitation services.
``Sec. 405. Research and training.
``Sec. 406. Professional development and special projects and 
demonstrations.
``Sec. 407. National Council on Disability.
``Sec. 408. Rights and advocacy.
``Sec. 409. Employment opportunities for individuals with disabilities.
``Sec. 410. Independent living services and centers for independent 
living.
``Sec. 411. [Repealed].
``Sec. 412. Helen Keller National Center Act.
``Sec. 413. President's Committee on Employment of People With 
Disabilities.
``Sec. 414. Conforming amendments.

                     ``TITLE V--GENERAL PROVISIONS

``Sec. 501. State unified plan.
``Sec. 502. [Repealed].
``Sec. 503. [Repealed].
``Sec. 504. Privacy.
``Sec. 505. Buy-American requirements.
``Sec. 506. [Repealed].
``Sec. 507. Effective date.''.

         TITLE V--AMENDMENTS TO THE REHABILITATION ACT OF 1973

SEC. 501. FINDINGS.

  Section 2(a) of the Rehabilitation Act of 1973 (29 U.S.C. 701(a)) is 
amended--
          (1) in paragraph (5), by striking ``and'' at the end;
          (2) in paragraph (6), by striking the period and inserting 
        ``; and''; and
          (3) by adding at the end the following:
          ``(7) there is a substantial need to improve and expand 
        services for students with disabilities under this Act.''.

SEC. 502. REHABILITATION SERVICES ADMINISTRATION.

  (a) Rehabilitation Services Administration.--The Rehabilitation Act 
of 1973 (29 U.S.C. 701 et seq.) is amended--
          (1) in section 3(a) (29 U.S.C. 702(a))--
                  (A) by striking ``Office of the Secretary'' and 
                inserting ``Department of Education'';
                  (B) by striking ``President by and with the advice 
                and consent of the Senate'' and inserting 
                ``Secretary''; and
                  (C) by striking ``, and the Commissioner shall be the 
                principal officer,'';
          (2) by striking ``Commissioner'' each place it appears 
        (except in section 21) and inserting ``Director'';
          (3) in section 12(c) (29 U.S.C. 709), by striking 
        ``Commissioner's'' and inserting ``Director's'';
          (4) in the heading for subparagraph (B) of section 100(d)(2), 
        by striking ``commissioner'' and inserting ``director'';
          (5) in the heading for section 706, by striking 
        ``commissioner'' and inserting ``director'';
          (6) in the heading for paragraph (3) of section 723(a), by 
        striking ``commissioner'' and inserting ``director''; and
          (7) in section 21 (29 U.S.C. 718)--
                  (A) in subsection (b)(1)--
                          (i) by striking ``Commissioner'' the first 
                        place it appears and inserting ``Director of 
                        the Rehabilitation Services Administration'';
                          (ii) by striking ``(referred to in this 
                        subsection as the `Director')''; and
                          (iii) by striking ``The Commissioner and the 
                        Director'' and inserting ``Both such 
                        Directors''; and
                  (B) by striking ``the Commissioner and the Director'' 
                each place it appears and inserting ``both such 
                Directors''.
  (b) Effective Date; Application.--The amendments made by subsection 
(a) shall--
          (1) take effect on the date of the enactment of this Act; and
          (2) apply with respect to the appointments of Directors of 
        the Rehabilitation Services Administration made on or after the 
        date of enactment of this Act, and the Directors so appointed.

SEC. 503. DEFINITIONS.

  Section 7 of the Rehabilitation Act of 1973 (29 U.S.C. 705) is 
amended--
          (1) by redesignating paragraphs (35) through (39) as 
        paragraphs (36) through (40), respectively;
          (2) in subparagraph (A)(ii) of paragraph (36) (as 
        redesignated by paragraph (1)), by striking ``paragraph 
        (36)(C)'' and inserting ``paragraph (37)(C)''; and
          (3) by inserting after paragraph (34) the following:
          ``(35)(A) The term `student with a disability' means an 
        individual with a disability who--
                          ``(i) is not younger than 16 and not older 
                        than 21;
                          ``(ii) has been determined to be eligible 
                        under section 102(a) for assistance under this 
                        title; and
                          ``(iii)(I) is eligible for, and is receiving, 
                        special education 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) The term `students with disabilities' means more than 1 
        student with a disability.''.

SEC. 504. STATE PLAN.

  Section 101(a) of the Rehabilitation Act of 1973 (29 U.S.C. 721(a)) 
is amended--
          (1) in paragraph (10)(B) by striking ``on the eligible 
        individuals'' and all that follows through ``section 
        136(d)(2)'' and inserting ``of information necessary to assess 
        the State's performance on the core indicators of performance 
        described in section 136(b)(2)(A)'';
          (2) in paragraph (11)--
                  (A) in subparagraph (D)(i), by inserting before the 
                semicolon the following: ``, which may be provided 
                using alternative means of meeting participation (such 
                as video conferences and conference calls)''; and
                  (B) by adding at the end the following:
                  ``(G) Coordination with assistive technology 
                programs.--The State plan shall include an assurance 
                that the designated State unit and the lead agency or 
                implementing entity responsible for carrying out duties 
                under the Assistive Technology Act of 1998 (29 U.S.C. 
                3001 et seq.) have developed working relationships and 
                coordinate their activities.'';
          (3) 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), by adding 
                                ``and'' at the end; and
                                  (III) by adding at the end the 
                                following:
                                  ``(IV) students with disabilities, 
                                including their need for 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 
                        transition services provided under this Act, 
                        and coordinated with transition services under 
                        the Individuals with Disabilities Education 
                        Act, as to those services meeting the needs of 
                        individuals with disabilities;''; and
                  (B) in subparagraph (D)--
                          (i) by redesignating clauses (iii), (iv), and 
                        (v) as clauses (iv), (v), and (vi), 
                        respectively; and
                          (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 
                        the receipt of vocational rehabilitation 
                        services under this title or to postsecondary 
                        education or employment;'';
          (4) in paragraph (22)--
                  (A) by striking ``carrying out part B of title VI, 
                including''; and
                  (B) by striking ``that part to supplement funds made 
                available under part B of'';
          (5) in paragraph (24)(A), by striking ``part A of title VI'' 
        and inserting ``section 109A''; and
          (6) by adding at the end the following:
          ``(25) Collaboration with industry.--The State plan shall 
        describe how the designated State agency will carry out the 
        provisions of section 109A, including--
                  ``(A) the criteria such agency will use to award 
                grants under such section; and
                  ``(B) how the activities carried out under such 
                grants will be coordinated with other services provided 
                under this title.
          ``(26) Services for students with disabilities.--The State 
        plan shall provide an assurance satisfactory to the Secretary 
        that the State--
                  ``(A) has developed and implemented strategies to 
                address the needs identified in the assessment 
                described in paragraph (15), and achieve the goals and 
                priorities identified by the State, to improve and 
                expand vocational rehabilitation services for students 
                with disabilities on a statewide basis in accordance 
                with paragraph (15); and
                  ``(B) from funds reserved under section 110A, shall 
                carry out programs or activities designed to improve 
                and expand vocational rehabilitation services for 
                students with disabilities that--
                          ``(i) facilitate the transition of students 
                        with disabilities from the receipt of 
                        educational services in school, to the receipt 
                        of vocational rehabilitation services under 
                        this title, including, at a minimum, those 
                        services specified in the interagency agreement 
                        required in paragraph (11)(D);
                          ``(ii) improve the achievement of post-school 
                        goals of students with disabilities, including 
                        improving the achievement through participation 
                        (as appropriate when career goals are 
                        discussed) in meetings regarding individualized 
                        education programs developed under section 614 
                        of the Individuals with Disabilities Education 
                        Act (20 U.S.C. 1414);
                          ``(iii) provide career guidance, career 
                        exploration services, job search skills and 
                        strategies, and technical assistance to 
                        students with disabilities;
                          ``(iv) support the provision of training and 
                        technical assistance to State and local 
                        educational agencies and designated State 
                        agency personnel responsible for the planning 
                        and provision of services to students with 
                        disabilities; and
                          ``(v) support outreach activities to students 
                        with disabilities who are eligible for, and 
                        need, services under this title.''.

SEC. 505. SCOPE OF SERVICES.

  Section 103 of the Rehabilitation Act of 1973 (29 U.S.C. 723) is 
amended--
          (1) in subsection (a), by striking paragraph (15) and 
        inserting the following:
          ``(15) transition services for students with disabilities, 
        that facilitate the achievement of the employment outcome 
        identified in the individualized plan for employment, including 
        services described in clauses (i) through (iii) of section 
        101(a)(26)(B);'';
          (2) in subsection (b), by striking paragraph (6) and 
        inserting the following:
          ``(6)(A)(i) Consultation and technical assistance services to 
        assist State and local educational agencies in planning for the 
        transition of students with disabilities from school to post-
        school activities, including employment.
          ``(ii) Training and technical assistance described in section 
        101(a)(26)(B)(iv).
          ``(B) Services for groups of individuals with disabilities 
        who meet the requirements of clauses (i) and (iii) of section 
        7(35)(A), including services described in clauses (i), (ii), 
        (iii), and (v) of section 101(a)(26)(B), to assist in the 
        transition from school to post-school activities.''; and
          (3) in subsection (b) by inserting at the end, the following:
          ``(7) 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) to 
        promote access to assistive technology for individuals with 
        disabilities and employers.''.

SEC. 506. STANDARDS AND INDICATORS.

  Section 106 of the Rehabilitation Act of 1973 (29 U.S.C. 726(a)) is 
amended--
          (1) by striking subsection (a) and inserting the following:
  ``(a) Standards and Indicators.--The performance standards and 
indicators for the vocational rehabilitation program carried out under 
this title--
          ``(1) shall be subject to paragraphs (2)(A) and (3) of 
        section 136(b) of the Workforce Investment Act of 1998; and
          ``(2) may, at a State's discretion, include additional 
        indicators identified in the State plan submitted under section 
        101.''; and
          (2) in subsection (b)(2)(B), by striking clause (i) and 
        inserting the following:
                          ``(i) 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 
                        Director, direct the State to make revisions to 
                        the plan to improve performance; and''.

SEC. 507. COLLABORATION WITH INDUSTRY.

  The Rehabilitation Act of 1973 is amended by inserting after section 
109 (29 U.S.C. 729) the following:

``SEC. 109A. COLLABORATION WITH INDUSTRY.

  ``(a) Authority.--A State shall use not less than one-half of one 
percent of the payment the State receives under section 111 for a 
fiscal year to award grants to eligible entities to create practical 
job and career readiness and training programs, and to provide job 
placements and career advancement.
  ``(b) Application.--To receive a grant under this section, an 
eligible entity shall submit an application to a designated State 
agency at such time, in such manner, and containing such information as 
such agency shall require. Such application shall include, at a 
minimum--
          ``(1) a plan for evaluating the effectiveness of the program;
          ``(2) a plan for collecting and reporting the data and 
        information described under subparagraphs (A) through (C) of 
        section 101(a)(10), as determined appropriate by the designated 
        State agency; and
          ``(3) a plan for providing for the non-Federal share of the 
        costs of the program.
  ``(c) Activities.--An eligible entity receiving a grant under this 
section shall use the grant funds to carry out a program that provides 
one or more of the following:
          ``(1) Job development, job placement, and career advancement 
        services for individuals with disabilities.
          ``(2) Training in realistic work settings in order to prepare 
        individuals with disabilities for employment and career 
        advancement in the competitive market.
          ``(3) Providing individuals with disabilities with such 
        support services as may be required in order to maintain the 
        employment and career advancement for which the individuals 
        have received training.
  ``(d) Awards.--Grants under this section shall--
          ``(1) be awarded for a period not to exceed 5 years; and
          ``(2) be awarded competitively.
  ``(e) Eligible Entity Defined.--For the purposes of this section, the 
term `eligible entity' means a for-profit business, alone or in 
partnership with one or more of the following:
          ``(1) Community rehabilitation program providers.
          ``(2) Indian tribes.
          ``(3) Tribal organizations.
  ``(f) Federal Share.--The Federal share of a program under this 
section shall not exceed 80 percent of the costs of the program.
  ``(g) Eligibility for Services.--An individual shall be eligible for 
services provided under a program under this section if the individual 
is determined under section 102(a)(1) to be eligible for assistance 
under this title.''.

SEC. 508. RESERVATION FOR EXPANDED TRANSITION SERVICES.

  The Rehabilitation Act of 1973 is amended by inserting after section 
110 (29 U.S.C. 730) the following:

``SEC. 110A. RESERVATION FOR EXPANDED TRANSITION SERVICES.

  ``Each State shall reserve not less than 10 percent of the funds 
allotted to the State under section 110(a) to carry out programs and 
activities under sections 101(a)(26)(B) and 103(b)(6).''.

SEC. 509. CLIENT ASSISTANCE PROGRAM.

  Section 112(e)(1) of the Rehabilitation Act of 1973 (29 U.S.C. 
732(e)(1)) is amended by redesignating subparagraph (D) as subparagraph 
(E) and inserting after subparagraph (C) the following:
                  ``(D) The Secretary shall make grants to the 
                protection and advocacy system serving the American 
                Indian Consortium to provide services in accordance 
                with this section. The amount of such grants shall be 
                the same as provided to territories under this 
                subsection.''.

SEC. 510. TITLE III AMENDMENTS.

  Title III of the Rehabilitation Act of 1973 (29 U.S.C. 771 et seq.) 
is amended--
          (1) in section 301(a)--
                  (A) in paragraph (2), by inserting ``and'' at the 
                end;
                  (B) by striking paragraphs (3) and (4); and
                  (C) by redesignating paragraph (5) as paragraph (3);
          (2) in section 302(g)--
                  (A) in the heading, by striking ``And In-Service 
                Training''; and
                  (B) by striking paragraph (3);
          (3) in section 303(c)--
                  (A) in paragraph (4)--
                          (i) by amending subparagraph (A)(ii) to read 
                        as follows:
                          ``(ii) to coordinate and work closely with 
                        the parent training and information centers 
                        established pursuant to section 671 of the 
                        Individuals with Disabilities Education Act, 
                        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; and''; and
                          (ii) in subparagraph (C), by inserting ``, 
                        and demonstrate the capacity for serving,'' 
                        after ``serve''; and
                  (B) by adding at the end the following:
          ``(8) Reservation.--From the amount appropriated to carry out 
        this subsection for a fiscal year, 20 percent of such amount or 
        $500,000, whichever is less, shall be reserved to carry out 
        paragraph (6).'';
          (4) by striking sections 304 and 305; and
          (5) by redesignating section 306 as section 304.

SEC. 511. REPEAL OF TITLE VI.

  The Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.) is amended by 
repealing title VI.

SEC. 512. CHAIRPERSON.

  Section 705(b)(5) of the Rehabilitation Act of 1973 (29 U.S.C. 
796d(b)(5)) is amended to read as follows:
          ``(5) Chairperson.--The Council shall select a chairperson 
        from among the voting membership of the Council.''.

SEC. 513. AUTHORIZATIONS OF APPROPRIATIONS.

  The Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.) is further 
amended--
          (1) in section 100(b)(1) (29 U.S.C. 720(b)(1)), by striking 
        ``such sums as may be necessary for fiscal years 1999 through 
        2003'' and inserting ``$3,121,712,000 for fiscal year 2014 and 
        each of the 6 succeeding fiscal years'';
          (2) in section 110(c) (29 U.S.C. 730(c)), by amending 
        paragraph (2) to read as follows:
          ``(2) The sum referred to in paragraph (1) shall be, as 
        determined by the Secretary, not less than 1 percent and not 
        more than 1.5 percent of the amount referred to in paragraph 
        (1) for each of fiscal years 2014 through 2020.'';
          (3) in section 112(h) (29 U.S.C. 732(h)) by striking ``such 
        sums as may be necessary for fiscal years 1999 through 2003'' 
        and inserting ``$12,240,000 for fiscal year 2014 and each of 
        the 6 succeeding fiscal years'';
          (4) by amending subsection (a) of section 201 (29 U.S.C. 
        761(a)) to read as follows: ``(a) There are authorized to be 
        appropriated $108,817,000 for fiscal year 2014 and each of the 
        6 succeeding fiscal years to carry out this title.'';
          (5) in section 302(i) (29 U.S.C. 772(i)) by striking ``such 
        sums as may be necessary for each of the fiscal years 1999 
        through 2003'' and inserting ``$35,515,000 for fiscal year 2014 
        and each of the 6 succeeding fiscal years'';
          (6) in section 303(e) (29 U.S.C. 773(e)) by striking ``such 
        sums as may be necessary for each of the fiscal years 1999 
        through 2003'' and inserting ``$5,325,000 for fiscal year 2014 
        and each of the 6 succeeding fiscal years'';
          (7) in section 405 (29 U.S.C. 785) by striking ``such sums as 
        may be necessary for each of the fiscal years 1999 through 
        2003'' and inserting ``$3,258,000 for fiscal year 2014 and each 
        of the 6 succeeding fiscal years'';
          (8) in section 502(j) (29 U.S.C. 792(j)) by striking ``such 
        sums as may be necessary for each of the fiscal years 1999 
        through 2003'' and inserting ``$7,400,000 for fiscal year 2014 
        and each of the 6 succeeding fiscal years'';
          (9) in section 509(l) (29 U.S.C. 794e(l)) by striking ``such 
        sums as may be necessary for each of the fiscal years 1999 
        through 2003'' and inserting ``$18,031,000 for fiscal year 2014 
        and each of the 6 succeeding fiscal years'';
          (10) in section 714 (29 U.S.C. 796e-3), by striking ``such 
        sums as may be necessary for each of the fiscal years 1999 
        through 2003'' and inserting ``$23,359,000 for fiscal year 2014 
        and each of the 6 succeeding fiscal years'';
          (11) in section 727 (29 U.S.C. 796f-6), by striking ``such 
        sums as may be necessary for each of the fiscal years 1999 
        through 2003'' and inserting ``$79,953,000 for fiscal year 2014 
        and each of the 6 succeeding fiscal years''; and
          (12) in section 753 (29 U.S.C. 7961), by striking ``such sums 
        as may be necessary for each of the fiscal years 1999 through 
        2003'' and inserting ``$34,018,000 for fiscal year 2014 and 
        each of the 6 succeeding fiscal years''.

SEC. 514. CONFORMING AMENDMENTS.

  Section 1(b) of the Rehabilitation Act of 1973 is amended--
          (1) by inserting after the item relating to section 109 the 
        following:

``Sec. 109A. Collaboration with industry.'';

          (2) by inserting after the item relating to section 110 the 
        following:

``Sec. 110A. Reservation for expanded transition services.'';

          (3) by striking the item related to section 304 and inserting 
        the following:

``Sec. 304. Measuring of project outcomes and performance.'';

          (4) by striking the items related to sections 305 and 306; 
        and
          (5) by striking the items related to title VI.

                                Purpose

    H.R. 803, the Supporting Knowledge and Investing in 
Lifelong Skills (SKILLS) Act, amends the Workforce Investment 
Act of 1998 to streamline federal workforce development 
programs; strengthen the employer-driven workforce development 
system; expand decision-making at the local level; improve 
accountability and transparency; simplify reporting 
requirements; encourage more training to meet in-demand job 
opportunities; and improve adult education and vocational 
rehabilitation.

                            Committee Action

    The Committee on Education and the Workforce is committed 
to developing a comprehensive and seamless statewide workforce 
investment system that helps unemployed and underemployed 
workers obtain the in-demand skills and employment services 
necessary to find employment.

                             107TH CONGRESS

Hearings--Second Session

    On Tuesday, March 12, 2002, the Committee on Education and 
the Workforce Subcommittee on 21st Century Competitiveness held 
a hearing in Washington, D.C. entitled, ``Welfare to Work: Ties 
Between Temporary Assistance for Needy Families (TANF) and 
Workforce Development.'' The purpose of the hearing was to 
learn about the interaction between the TANF block grant and 
the workforce investment system created through the Workforce 
Investment Act (WIA). Testifying before the subcommittee were: 
Dr. Sigurd Nilsen, Director of Health, Education, and Human 
Services Division, U.S. General Accounting Office (now known as 
the Government Accountability Office, GAO), Washington, D.C.; 
Mr. John B. O'Reilly, Jr., Executive Director, Southeast 
Michigan Community Alliance, Taylor, MI; Dr. Barbara Gault, 
Director of Research, Institute for Women's Policy Research, 
Washington, D.C.; Mr. Greg Gardner, Acting Director, Utah 
Department of Workforce Services, Salt Lake City, UT; and Dr. 
Erika Kates, Executive Director, Welfare Education Training 
Access Coalition Center for Youth and Communities, Brandeis 
University, Boston, MA.
    On Thursday, September 12, 2002, the Committee on Education 
and the Workforce Subcommittee on 21st Century Competitiveness 
held a hearing in Washington, D.C. entitled, ``Implementation 
of the Workforce Investment Act: Promising Practices in 
Workforce Development.'' The purpose of the hearing was to 
encourage and promote a seamless system that improves services 
to job seekers and employers. Testifying before the 
subcommittee were: Mr. Bruce Stenslie, Director, Ventura County 
Workforce Investment Board, Ventura, CA; Ms. Diane D. Rath, 
Chair, Texas Workforce Commission, Austin, TX; Mr. Danny 
Wegman, President, Wegmans Food Markets, Rochester, NY; and Mr. 
Timothy Barnicle, Co-Director, Workforce Development Program, 
National Center on Education and the Economy, Washington, D.C.

                             108TH CONGRESS

Hearings--First Session

    On Wednesday, February 12, 2003, the Committee on Education 
and the Workforce held a hearing in Washington, D.C. entitled, 
``Back to Work: The Administration's Plan for Economic Recovery 
and the Workforce Investment Act.'' The purpose of the hearing 
was to learn about the administration's proposal to speed the 
country's economic recovery, a component of which included 
Personal Reemployment Accounts that provide assistance to 
unemployed Americans who are struggling to return to work, and 
learn about the administration's proposal for the Workforce 
Investment Act reauthorization. Testifying before the committee 
were: the Honorable Elaine Chao, Secretary, U.S. Department of 
Labor, Washington, D.C.; Mr. Kenneth Mayfield, President, 
National Association of Counties, Washington, D.C.; and Dr. 
Lawrence Mishel, President, Economic Policy Institute, 
Washington, D.C.
    On Tuesday, February 18, 2003, the Committee on Education 
and the Workforce held a field hearing in Las Vegas, NV 
entitled, ``H.R. 444, the Back to Work Incentive Act.'' The 
purpose of the hearing was to examine and discuss the Back to 
Work Incentive Act, which reflected the administration's 
initial plan to create personal reemployment accounts to help 
unemployed individuals return to work quickly. Testifying 
before the committee were: Ms. Myla Florence, Director, Nevada 
Department of Employment, Training, and Rehabilitation, Carson 
City, NV; Mr. Ardell Galbreth, Deputy Board Manager, Southern 
Nevada Workforce Investment Board, Las Vegas, NV; Mr. Robert 
Brewer, Chair, Southern Nevada Workforce Investment Board, Las 
Vegas, NV; and Ms. Debi Lindemenn, Employment Specialist 
Supervisor, Department of Employment, Training, and 
Rehabilitation, North Las Vegas, NV.
    On Tuesday, March 4, 2003, the Committee on Education and 
the Workforce Subcommittee on 21st Century Competitiveness held 
a hearing in Washington, D.C. entitled, ``Improving Adult 
Education for the 21st Century.'' The purpose of the hearing 
was to learn about pertinent issues to be addressed in the 
reauthorization of the Adult Education and Family Literacy Act, 
Title II of the Workforce Investment Act. Testifying before the 
subcommittee were: the Honorable Carol D'Amico, Assistant 
Secretary for Vocational and Adult Education, U.S. Department 
of Education, Washington, D.C.; Dr. Beth Buehlmann, Executive 
Director, Center for Workforce Preparation for the U.S. Chamber 
of Commerce, Washington, D.C.; Dr. Randy Whitfield, Associate 
Vice President of Academic and Student Services, North Carolina 
Community College System, Raleigh, NC; Ms. Ann-Marie Panella, 
Director of Human Resources, MCS Industries, Inc., Easton, PA; 
and Ms. Hermelinda Morales Herrera, Adult Education 
Participant, Aurora, CO.
    On Tuesday, March 11, 2003, the Committee on Education and 
the Workforce Subcommittee on 21st Century Competitiveness held 
a hearing in Washington, D.C. entitled, ``Workforce Investment 
and Rehabilitation Acts: Improving Services and Empowering 
Individuals.'' The purpose of the hearing was to learn about 
methods to strengthen and improve current programs and results 
for job seekers and employers. Testifying before the 
subcommittee were: the Honorable Emily DeRocco, Assistant 
Secretary for Employment and Training, U.S. Department of 
Labor, Washington, D.C.; the Honorable Robert Pasternack, 
Assistant Secretary for Special Education and Rehabilitative 
Services, U.S. Department of Education, Washington, D.C.; Mr. 
Thomas J. White, President and Chief Executive Officer, Greater 
Durham Chamber of Commerce, Durham, NC; Mr. Steven Savner, 
Senior Staff Attorney, Center for Law and Social Policy, 
Washington, D.C.; Mr. John Twomey, President, National 
Workforce Association, Washington, D.C.; and Ms. Bettie Shaw-
Henderson, District Manager, Michigan Department of Vocational 
Rehabilitation, Grand Rapids, MI.

Legislative Action--First Session

    On January 29, 2003, Rep. Jon Porter (R-NV) and 21st 
Century Competitiveness Subcommittee Chairman Howard P. 
``Buck'' McKeon (R-CA) introduced H.R. 444, the Back to Work 
Incentive Act, a bill to amend the Workforce Investment Act of 
1998 to establish a Personal Reemployment Accounts grant 
program to assist Americans in returning to work.
    On February 26, 2003, the Subcommittee on 21st Century 
Competitiveness considered H.R. 444 in legislative session and 
reported it favorably, as amended, to the Committee on 
Education and the Workforce by a vote of 15-12.
    The subcommittee considered and adopted the following 
amendment to H.R. 444:
    Subcommittee Chairman Howard P. ``Buck'' McKeon (R-CA) 
offered an amendment in the nature of a substitute to: (1) make 
clear that the Back to Work accounts would be administered 
through the local one-stop delivery system under the direction 
of local workforce investment boards; (2) require local boards 
to submit a plan to the state, consistent with the state plan, 
in order to receive an allocation to administer the accounts; 
(3) require states and local areas, through their respective 
plans, to specify safeguards to ensure the quality and 
integrity of services and providers, consistent with the 
purpose of providing flexibility and choice to individuals; (4) 
require the individual accepting a Back to Work account to 
attest that he or she was given the option to develop a 
personal reemployment plan; and (5) allow states to make 
eligible individuals who have exhausted their unemployment 
compensation benefits within the previous 180 days, instead of 
the 90 day limit in the original bill. The amendment was 
adopted by a voice vote.
    The subcommittee also considered the following amendment to 
H.R. 444, which was not adopted:
    Reps. Dale Kildee (D-MI) and David Wu (D-OR) offered an 
amendment to strike all language after the enacting clause and 
insert language that allocates funds to each state to provide 
emergency employment accounts to eligible individuals. The 
funds in these accounts would be used in the same manner as 
unemployment compensation benefits. The amendment failed by a 
vote of 11-13.
    On March 5, 2003, the Committee on Education and the 
Workforce considered H.R. 444 in legislative session and 
reported it favorably, as amended, to the House of 
Representatives by a vote of 23-22, with one member voting 
present.
    The committee considered and adopted the following 
amendments to H.R. 444:
    
 Subcommittee Chairman Howard P. ``Buck'' McKeon 
(R-CA) offered an amendment in the nature of a substitute to: 
(1) change the calculation of the ``look-back'' period for 
eligibility determinations from days to weeks to be consistent 
with the terminology used in the unemployment compensation 
program; (2) clarify that the 40 percent retention bonus is 
provided after 26 weeks of employment retention; and (3) make 
other technical improvements. The amendment was adopted by a 
voice vote.
    
 Rep. Pete Hoekstra (R-MI) offered an amendment to 
make those individuals whose unemployment can be attributed in 
substantial part to unfair competition from Federal Prison 
Industries, Inc., eligible to receive Back to Work accounts, 
subject to state criteria and prioritization. The amendment was 
adopted by a voice vote.
    The committee also considered the following amendments to 
H.R. 444, which were not adopted:
    
 Rep. Dale Kildee (D-MI) offered an amendment to 
strike all language after the enacting clause and insert 
language that allocates funds to each state to provide 
emergency employment accounts to eligible individuals. The 
funds in these accounts would be used in the same manner as 
unemployment compensation benefits. The amendment failed by a 
vote of 20-24.
    
 Rep. David Wu (D-OR) offered an amendment to 
change the amount of a Back to Work account from ``not 
exceeding $3,000'' to $3,000. Additionally, the amendment would 
have struck subparagraph (C) of section 135F(a)(3), which 
prohibits recipients of the account from receiving intensive, 
supportive, or training services funded under WIA except on a 
fee-for-services basis for one year following the establishment 
of the account. The amendment failed by a voice vote.
    
 Rep. Donald Payne (D-NJ) offered an amendment that 
was not germane and ruled out of order by the Chair.
    
 Rep. Donald Payne (D-NJ) offered an amendment to 
prohibit the account holder from buying services from providers 
who fall in the exemptions category of current civil rights 
protections. Examples of exemptions include an employer 
providing training services who has less than 10 employees, or 
a faith based organization offering childcare. The amendment 
failed by a vote of 20-22.
    
 Rep. Betty McCollum (D-MN) offered an amendment to 
make individuals whose unemployment from the textile industries 
attributed in substantial part to unfair competition pursuant 
to basing agreements eligible to receive Back to Work accounts. 
The amendment failed by a vote of 20-23.
    
 Rep. Denise Majette (D-GA) offered and withdrew an 
amendment to specify that intensive services must be provided 
through the one-stop delivery system, and that a provider of 
training services must meet the requirements of section 
122(a)(2) of the Workforce Investment Act.
    On March 13, 2003, 21st Century Competitiveness 
Subcommittee Chairman Howard P. ``Buck'' McKeon (R-CA) and 
Chairman John Boehner (R-OH) introduced H.R. 1261, the 
Workforce Reinvestment and Adult Education Act of 2003, a bill 
to amend the Workforce Investment Act of 1998 to provide for 
the nation's One-Stop workforce development system. The 
legislation also contains the Adult Basic Education Skills Act, 
which reauthorizes state programs for adult education, and 
reauthorizes the Rehabilitation Act of 1973, which provides 
services to help individuals with disabilities become 
employable and achieve full integration into society.
    On March 20, 2003, the Subcommittee on 21st Century 
Competitiveness considered H.R. 1261 in legislative session and 
reported it favorably, as amended, to the Committee on 
Education and the Workforce by a vote of 15-12.
    The subcommittee considered and adopted the following 
amendments to H.R. 1261:
    
 Subcommittee Chairman Howard P. ``Buck'' McKeon 
(R-CA) offered an amendment in the nature of a substitute to 
clarify the distribution of adult funding within states, allow 
some youth funding to be used to serve in-school youth, address 
the problem of determining system expenditures, add adult 
education incentive grants, reinstate the National Institute 
for Literacy, and make other technical changes. The amendment 
was adopted by a voice vote.
    
 Rep. Johnny Isakson (R-GA) offered an amendment to 
make a technical change. The amendment was adopted by a voice 
vote.
    The subcommittee also considered the following amendments 
to H.R. 1261, which were not adopted:
    
 Rep. Dale Kildee (D-MI) offered an amendment to 
strike the Back to Work Accounts and authorize Emergency 
Employment Accounts. The amendment failed by a vote of 10-13.
    
 Rep. Rush Holt (D-NJ) offered an amendment to 
increase the authorization for dislocated workers. The 
amendment failed by a vote of 11-15.
    
 Rep. Dale Kildee (D-MI) offered an amendment to 
strike the Back to Work Accounts and authorize a medical and 
safety first responders grant program. The amendment failed by 
a vote of 10-14.
    
 Rep. John Tierney (D-MA) offered and withdrew an 
amendment to reinstate the Employment Service program 
authorized under the Wagner-Peyser Act.
    
 Rep. John Tierney (D-MA) offered and withdrew an 
amendment to strike the youth activities and youth challenge 
provisions that focus on out-of-school youth.
    
 Rep. Donald Payne (D-NJ) offered and withdrew an 
amendment to require that service providers are subject to 
anti-discrimination laws.
    On March 27, 2003, the Committee on Education and the 
Workforce considered H.R. 1261 in legislative session and 
reported it favorably, as amended, to the House of 
Representatives by a vote of 26-21.
    The committee considered and adopted the following 
amendments to H.R. 1261:
    
 Subcommittee Chairman Howard P. ``Buck'' McKeon 
(R-CA) offered an amendment in the nature of a substitute to 
ensure confidentiality of student records, allow states to 
measure customer satisfaction, amend the provisions relating to 
in-school youth, add Family Literacy to the adult education 
program, reauthorize the Helen Keller National Center Act, and 
make additional technical changes. The amendment also removes 
Back to Work Accounts from the bill, which had already been 
approved by the full committee as a stand-alone bill (H.R. 
444). The Back to Work Accounts were temporarily removed 
pending negotiations on the FY 2004 Budget Resolution. The 
amendment was adopted by a voice vote.
    
 Rep. Johnny Isakson (R-GA) offered an amendment to 
make a technical change. The amendment was adopted, en bloc, by 
a voice vote.
    
 Rep. Danny Davis (D-IL) offered an amendment to 
require states to specify how they would address the needs of 
ex-offenders. The amendment was adopted by a voice vote.
    
 Rep. Tom Osborne (R-NE) offered an amendment to 
provide that the Commissioner of Rehabilitation Services 
Administration will no longer be a presidential appointment. 
The amendment was adopted by a vote of 24-23.
    
 Rep. Lynn Woolsey (D-CA) offered an amendment to 
allow states to provide programs for displaced homemakers using 
statewide employment and training funds. The amendment was 
adopted by a voice vote.
    
 Rep. Betty McCollum (D-MN) offered an amendment to 
authorize the secretary to provide demonstration retention 
grants to qualified job training programs upon placement or 
retention of a low-income individual. The amendment was adopted 
by a voice vote.
    
 Rep. Rob Andrews (D-NJ) offered an amendment to 
allow entrepreneurial training to eligible individuals. The 
amendment was adopted by a voice vote.
    
 Rep. Ron Kind (D-WI) offered an amendment to 
require states to specify how they will serve the employment 
and training needs of dislocated farmers, ranchers, and 
fishermen. The amendment was adopted by a voice vote.
    
 Rep. Carolyn McCarthy (D-NY) offered an amendment 
to include a `hold harmless' funding provision at 2003 levels 
pending amended allocation levels. The amendment was adopted by 
a voice vote.
    The committee also considered the following amendments to 
H.R. 1261, which were not adopted:
    
 Rep. Dale Kildee (D-MI) offered an amendment in 
the nature of a substitute. The amendment failed by a vote of 
16-25.
    
 Rep. Dale Kildee (D-MI) offered an amendment to 
use the Back to Work Account fund to extend unemployment 
benefits. The amendment failed by a vote of 19-19.
    
 Rep. Tim Ryan (D-OH) offered an amendment to 
create a new grant program for medical and safety occupations. 
The amendment failed by a vote of 15-25.
    
 Rep. Chris Van Hollen (D-MD) offered an amendment 
to eliminate faith-based organizations as eligible participants 
under the Workforce Investment Act. The amendment failed by a 
vote of 18-22.
    
 Rep. Rush Holt (D-NJ) offered an amendment to 
increase the funding authorization for dislocated workers. The 
amendment failed by a vote of 19-23.
    
 Rep. John Tierney (D-MA) offered an amendment to 
require separate funding streams for individual workforce 
development programs. The amendment failed by a vote of 20-24.
    
 Rep. Danny Davis (D-IL) offered an amendment to 
strike provisions making the Commissioner of Rehabilitation 
Services a secretarial appointment instead of a presidential 
appointment. The amendment failed by a vote of 23-25.
    
 Rep. Rob Andrews (D-NJ) offered an amendment to 
count as a success the placement of clients into non-integrated 
workplace settings. The amendment failed by a vote of 6-37, 
with 4 voting present.
    
 Rep. John Tierney (D-MA) offered an amendment 
regarding funding allocations for in-school and out-of-school 
youth. The amendment failed by a vote of 21-26.
    
 Rep. Danny Davis (D-IL) offered an amendment to 
strike provisions making the Commissioner of Rehabilitation 
Services a secretarial appointment instead of a presidential 
appointment. The amendment failed by a vote of 23-25.
    
 Rep. Carolyn McCarthy (D-NY) offered and withdrew 
an amendment to ensure states shall not receive a funding 
allotment less than what they received in 2003.
    
 Rep. Ron Kind (D-WI) offered and withdrew an 
amendment to require states to describe how they will serve 
farmers in their state plan.
    On May 8, 2003, the House of Representatives passed H.R. 
1261 by a vote of 220-204.
    On November 14, 2003, the Senate passed a substitute 
version of H.R. 1261 by unanimous consent.
    On June 3, 2004, the House of Representatives appointed 
conferees to resolve differences with the Senate on H.R. 1261.
    The Senate did not appoint conferees to resolve differences 
with the House on H.R. 1261.

                             109TH CONGRESS

Hearing--First Session

    On July 12, 2005, the Committee on Education and the 
Workforce Subcommittee on Select Education held a hearing in 
Washington, D.C. entitled, ``Coordination Among Federal Youth 
Development Programs.'' The purpose of the hearing was to 
examine federal youth development programs that help 
disadvantaged youth develop the academic, social, and 
citizenship skills needed for a successful future. Testifying 
before the subcommittee were: Dr. Michael O'Grady, Assistant 
Secretary for Planning and Evaluation, U.S. Department of 
Health and Human Services, Washington, D.C.; Mr. Richard Moore, 
Criminal and Juvenile Justice Planning Division, Iowa 
Department of Human Rights, Des Moines, IA; Ms. Marguerite 
Sallee, President and Chief Executive Officer, America's 
Promise--The Alliance for Youth, Washington, D.C.; Ms. Laura 
Shubilla, President, Philadelphia Youth Network, Philadelphia, 
PA; and Dr. Laurence Steinberg, Director, MacArthur Foundation 
Research Network on Adolescent Development and Juvenile 
Justice, Temple University, Philadelphia, PA.

Hearing--Second Session

    On April 6, 2006, the Committee on Education and the 
Workforce held a hearing in Washington, D.C. entitled, 
``Building America's Competitiveness: Examining What is Needed 
to Compete in a Global Economy.'' The purpose of the hearing 
was to examine methods for addressing the changing needs of the 
workforce. Testifying before the committee were: the Honorable 
Elaine Chao, Secretary, U.S. Department of Labor, Washington, 
D.C.; the Honorable Margaret Spellings, Secretary, U.S. 
Department of Education, Washington, D.C.; Mr. Jim Jarrett, 
Vice President, Worldwide Government Affairs, Intel 
Corporation, Santa Clara, CA; Mr. Wes Jurey, President and 
Chief Executive Officer, Arlington Chamber of Commerce, 
Arlington, TX; and Dr. James Simons, President, Renaissance 
Technologies Corporation, New York, NY.

Legislative Action--First Session

    On January 4, 2005, 21st Century Competitiveness 
Subcommittee Chairman Howard P. ``Buck'' McKeon (R-CA) and 
Chairman John Boehner (R-OH) introduced H.R. 27, the Job 
Training Improvement Act of 2005, a bill to amend the Workforce 
Investment Act of 1998 to provide for the nation's One-Stop 
workforce development system. The legislation also contains the 
Adult Basic Education Skills Act, which reauthorizes state 
programs for adult education, and provisions reauthorizing the 
Rehabilitation Act of 1973, which provides services to help 
individuals with disabilities become employable and achieve 
full integration into society. The bill is substantially the 
same as H.R. 1261, which was considered by the House in the 
108th Congress.
    On February 9, 2005, the Subcommittee on 21st Century 
Competitiveness considered H.R. 27 in legislative session and 
reported it favorably, as amended, to the Committee on 
Education and the Workforce by a vote of 18-15.
    The subcommittee considered and adopted the following 
amendments to H.R. 27:
    
 Subcommittee Chairman Howard P. ``Buck'' McKeon 
(R-CA) offered an amendment in the nature of a substitute that 
creates new authority within the demonstration section of WIA 
to authorize the president's proposal for community-based job 
training grants; defines administrative costs; makes projects 
that focus on employment in advanced manufacturing allowable 
pilot projects; removes the calculation of program efficiency 
as a core indicator of performance; clarifies that in order to 
be eligible for WIA youth services, an out-of-school youth who 
has finished high school and has low basic skills must not be 
attending any school; allows services for youth during the 
school day if youth are participating in programs that have 
demonstrated effectiveness in high school youth achieving 
diplomas; reinstates the business and community liaison for Job 
Corps centers; and makes other technical and conforming 
changes. The amendment was adopted by a voice vote.
    
 Rep. Luis Fortuno (R-PR) offered an amendment that 
requires states to describe in their plans how they will serve 
individuals with limited English proficiency and allows local 
areas to offer training that integrates occupational skills 
training with English language acquisition. The amendment was 
adopted by a voice vote.
    
 Rep. Ron Kind (D-WI) offered an amendment that 
allows the secretary, through available demonstration funding, 
to award competitive grants to train real-time writers. The 
amendment was adopted by a voice vote.
    
 Rep. Rush Holt (D-NJ) offered an amendment that 
requires the secretary to submit states' quarterly reports to 
the House Committee on Education and the Workforce and the 
Senate Committee on Health, Education, Labor, and Pensions. The 
amendment was adopted by a voice vote.
    The subcommittee also considered the following amendments 
to H.R. 27, which were not adopted:
    
 Rep. Bobby Scott (D-VA) offered an amendment to 
preserve the religious non-discrimination requirement. The 
amendment failed by a vote of 13-19.
    
 Rep. Dale Kildee (D-MI) offered an amendment to 
create a separate funding stream for One-Stop Career Center 
administrative costs. The amendment failed by a vote of 14-18.
    
 Rep. Rush Holt (D-NJ) offered an amendment to 
create an additional funding authorization for dislocated 
workers. The amendment failed by a vote of 15-18.
    
 Rep. Dale Kildee (D-MI) offered an amendment to 
strike the personal reemployment accounts pilot program. The 
amendment failed by a vote of 15-18.
    
 Rep. John Tierney (D-MA) offered an amendment to 
strike block granting and funding restructuring provisions. The 
amendment failed by a vote of 15-18.
    
 Rep. John Tierney (D-MA) offered an amendment to 
preserve youth opportunity grants. The amendment failed by a 
vote of 15-18.
    
 Rep. John Tierney (D-MA) offered an amendment to 
preserve the mandated One-Stop Career Center partners on local 
workforce investment boards. The amendment failed by a voice 
vote.
    
 Rep. John Tierney (D-MA) offered an amendment to 
alter the sequence of services. The amendment failed by a vote 
of 15-18.
    
 Rep. Rush Holt (D-NJ) offered and withdrew an 
amendment to add a use of funds to purchase computer technology 
for workforce development.
    On February 16 and 17, 2005, the Committee on Education and 
the Workforce considered H.R. 27 in legislative session and 
reported it favorably, as amended, to the House of 
Representatives by a vote of 26-20.
    The committee considered and adopted the following 
amendments to H.R. 27:
    
 Subcommittee Chairman Howard P. ``Buck'' McKeon 
(R-CA) offered an amendment in the nature of a substitute that 
authorizes $211 million for WIA pilot and demonstration 
authority (of which $125 million could be used for the 
president's community-based job training grants) and also 
authorizes the secretary to use up to $125 million more from 
WIA national reserve funds to fund community-based job training 
grants; clarifies that community colleges are the only training 
providers eligible to participate in community-based job 
training grants; allows governors to consider whether training 
providers allow participants to attain a certification, 
credential, or mastery as they develop their criteria for 
determining eligible providers of training; authorizes the 
American Indian Consortium to receive funds under the Client 
Assistance Program to provide protection and advocacy services 
to Native Americans; allows programs under the Protection and 
Advocacy of Individual Rights program to retain program income 
generated by the system for up to one additional year after it 
was generated; requires the state vocational rehabilitation 
agency to coordinate with the lead agencies established under 
the Assistive Technology Act of 1998; allows state vocational 
rehabilitation agencies to spend funds to support activities 
authorized under the Assistive Technology Act of 1998; and 
makes other technical and conforming changes. The amendment was 
adopted by a voice vote.
    
 Rep. Thelma Drake (R-VA) offered an amendment to 
require state and local performance indicators to be adjusted 
based on the number of veterans with disabilities being served. 
The amendment was adopted by a voice vote.
    
 Rep. Rob Andrews (D-NJ) offered an amendment to 
allow local areas to provide information regarding the 
availability of micro-credit loans when providing 
entrepreneurship training. The amendment was adopted by a voice 
vote.
    
 Rep. Rob Andrews (D-NJ) offered an amendment to 
allow the secretary to award competitive grants to business 
partnerships using pilot and demonstration funding. The 
amendment was adopted by a voice vote.
    The committee also considered the following amendments to 
H.R. 27, which were not adopted:
    
 Rep. Rush Holt (D-NJ) offered an amendment to 
increase the funding authorization for Title I of the Act. The 
amendment failed by a vote of 21-22.
    
 Rep. Tim Ryan (D-OH) offered an amendment to 
require states to set aside funds for an early intervention 
program for workers affected by offshoring. The amendment 
failed by a vote of 19-23.
    
 Rep. Major Owens (D-NY) offered an amendment to 
require the secretary to set up an interstate transfer 
demonstration program. The amendment failed by a vote of 12-17.
    
 Rep. Bobby Scott (D-VA) offered an amendment to 
preserve the religious non-discrimination requirement. The 
amendment failed by a vote of 19-23.
    
 Rep. Chris Van Hollen (D-MD) offered an amendment 
to require the secretary to collect specific data on women 
workers. The amendment failed by a vote of 16-23.
    
 Rep. Carolyn McCarthy (D-NY) offered an amendment 
to require a hiring policy statement for positions funded 
through the Workforce Investment Act. The amendment failed by a 
vote of 17-27.
    
 Rep. Dale Kildee (D-MI) offered an amendment to 
create a separate funding stream for One-Stop Career Center 
administrative costs. The amendment failed by a vote of 19-21.
    
 Rep. Lynn Woolsey (D-CA) offered an amendment to 
require states to specifically describe youth workforce 
development services in their state plan. The amendment failed, 
en bloc, by a vote of 19-21.
    
 Rep. Lynn Woolsey (D-CA) offered an amendment to 
allow local areas to use up to 10 percent of local funding to 
serve displaced homemakers or training women for nontraditional 
employment. The amendment failed, en bloc, by a vote of 19-21.
    
 Rep. Dale Kildee (D-MI) offered an amendment to 
strike the personal reemployment accounts pilot program. The 
amendment failed by a vote of 19-21.
    
 Rep. David Wu (D-OR) offered and withdrew an 
amendment to restructure the youth grants program.
    
 Rep. John Tierney (D-MA) offered an amendment to 
strike the block granting and funding restructuring provisions. 
The amendment failed by a voice vote.
    
 Rep. Carolyn McCarthy (D-NY) offered and withdrew 
an amendment to create a special rule for states with policy-
making authority that is independent of the authority of the 
governor.
    
 Rep. Ruben Hinojosa (D-TX) offered and withdrew an 
amendment to further disaggregate reporting data.
    
 Rep. John Tierney (D-MA) offered an amendment to 
preserve the Youth Opportunity Grants program. The amendment 
failed by a voice vote.
    
 Rep. Rob Andrews (D-NJ) offered an amendment to 
authorize a new business incubator pilot program. The amendment 
failed by a voice vote.
    On March 2, 2005, the House of Representatives passed H.R. 
27 by a vote of 224-200.
    On June 29, 2006, the Senate passed a substitute version of 
H.R. 27 by unanimous consent.
    Neither the House nor the Senate appointed conferees to 
resolve differences on H.R. 27.

                             110TH CONGRESS

Hearings--First Session

    On March 26, 2007, the Committee on Education and Labor 
held a hearing in Washington, D.C. entitled, ``How Effective 
are Existing Programs in Helping Workers Impacted by 
International Trade?'' The purpose of the hearing was to 
examine the effectiveness of federal programs intended to 
assist American workers affected by outsourcing, specifically 
the Trade Adjustment Assistance program. Testifying before the 
committee were: Mr. David Brevard, Former Employee, Maytag 
Refrigeration Products, Galesburg, IL; Mr. Stan Dorn, Senior 
Research Assistant, Urban Institute, Washington, D.C.; Mr. 
Bruce Herman, Executive Director, National Employment Law 
Project, New York, NY; Dr. Lael Brainard, Vice President and 
Director, Global Economy Development Center, Brookings 
Institute, Washington, D.C.; Dr. Tim Alford, Director, Alabama 
Office of Workforce Development, Montgomery, AL; and Ms. Thea 
Lee, Policy Director and Chief International Economist, AFL-
CIO, Washington, D.C..
    On June 28, 2007, the Committee on Education and Labor 
Subcommittee on Higher Education, Lifelong Learning, and 
Competitiveness held a hearing in Washington, D.C. entitled, 
``Workforce Investment Act: Recommendations to Improve the 
Effectiveness of Job Training.'' The purpose of the hearing was 
to focus on the priorities for the reauthorization of the 
Workforce Investment Act of 1998. Testifying before the 
subcommittee were: Mr. Bruce Ferguson, Jr., President and Chief 
Executive Officer, WorkSource, Fleming Island, FL; Mr. Wes 
Jurey, President and Chief Executive Office, Arlington Chamber 
of Commerce, testifying on behalf of the U.S. Chamber of 
Commerce, Arlington, TX; Dr. Sigurd Nilsen, Director of 
Education, Workforce, and Income Security Issues, U.S. 
Government Accountability Office (GAO), Washington, D.C.; Dr. 
Rachel Gragg, Federal Policy Director, The Workforce Alliance, 
Washington, D.C.; Ms. Evelyn Ganzglass, Director, Workforce 
Development, Center for Law and Social Policy, Washington, 
D.C.; and Dr. Sandra Baxter, Director, National Institute for 
Literacy, Washington, D.C.
    On July 26, 2007, the Committee on Education and Labor 
Subcommittee on Higher Education, Lifelong Learning, and 
Competitiveness held a hearing in Washington, D.C. entitled, 
``The Workforce Investment Act: Ideas to Improve the Workforce 
Development System.'' The purpose of the hearing was again to 
focus on priorities for the reauthorization of the Workforce 
Investment Act of 1998. Testifying before the subcommittee 
were: Ms. Beth Butler, Vice President, Employment Compliance, 
Wachovia Corporate Headquarters, Charlotte, NC; Mr. John 
Twomey, Executive Director, New York Association of Training 
and Employment Professionals, Albany, NY; Mr. Charles Ware, 
Chief Executive Officer, Wyoming Contractors Association, 
Cheyenne, WY; Mr. Mason Petit, Employment Counselor, Washington 
State Employment Security Department, Seattle, WA; Ms. Kathleen 
Randolph, President, Partners for Workforce Solutions, Fort 
Wayne, IN; and Mr. Joseph Carbone, President and Chief 
Executive Officer, Workplace Incorporated, Southwestern 
Connecticut's Workforce Investment Board, Bridgeport, CT.

Hearing--Second Session

    On May 6, 2008, the Committee on Education and Labor held a 
hearing in Washington, D.C. entitled, ``Do Federal Programs 
Ensure U.S. Workers Are Recruited First Before Employers Hire 
from Abroad?'' The purpose of the hearing was to examine 
whether federal programs ensure U.S. workers are recruited 
before employers hire from abroad. Testifying before the 
committee were: the Honorable Leon Sequeira, Assistant 
Secretary for Policy, U.S. Department of Labor, Washington, 
D.C.; Dr. William Carlson, Administrator, Office of Foreign 
Labor Certification, Employment and Training Administration, 
U.S. Department of Labor, Washington, D.C.; Mr. Bruce 
Goldstein, Executive Director, Farmworker Justice, Washington, 
D.C.; Mr. Javier Riojas, Attorney and Branch Manager, Texas Rio 
Grande Legal Aid, Eagle Pass, TX; Mr. John Young, President, 
National Council of Agriculture Employers, Vienna, VA; Mr. 
Andrew Sum, Professor of Economics and Director, Center for 
Labor Market Studies, Northeastern University, Boston, MA; and 
Mr. Bill Beardall, Executive Director, Equal Justice Center, 
Austin, TX.

Legislative Action--First Session

    On June 25, 2007, Rep. Hilda Solis (D-CA) introduced H.R. 
2847, the Green Jobs Act of 2007. The bill amends the Workforce 
Investment Act of 1998 to direct the secretary to: (1) 
establish an energy efficiency and renewable energy worker 
training program that targets certain persons; and (2) 
establish a national research program to collect and analyze 
labor market data to track workforce trends resulting from 
energy-related initiatives under the bill.
    On June 27, 2007, the Committee on Education and Labor 
considered H.R. 2847 in legislative session and reported it 
favorably, as amended, to the House of Representatives by a 
vote of 26-18, with one member voting present.
    The committee considered and adopted the following 
amendments to H.R. 2847:
    
 Rep. John Tierney (D-MA) offered an amendment that 
contained technical modifications. The amendment was adopted by 
a voice vote.
    
 Rep. Dennis Kucinich (D-OH) offered an amendment 
to add ``the energy efficiency assessment industry'' as an 
eligible industry. The amendment was adopted by a voice vote.
    
 Rep. Vernon Ehlers (R-MI) offered an amendment to 
add ``manufacturers that produce sustainable products using 
environmentally sustainable processes and materials'' as an 
eligible industry. The amendment was adopted by a voice vote.
    
 Rep. Virginia Foxx (R-NC) offered an amendment to 
require the secretary to apply performance measures to the 
grants administered under this bill. The amendment was adopted 
by a voice vote.
    The committee also considered the following amendments to 
H.R. 2847, which were not adopted:
    
 Rep. Howard P. ``Buck'' McKeon (R-CA) offered an 
amendment in the nature of a substitute to strike the creation 
of the new program and replace it with specific authority for 
state and local workforce investment boards to carry out worker 
training programs focusing on renewable energy and energy 
efficiency. The amendment was defeated by a vote of 20-25.
    
 Rep. Charles Boustany (R-LA) offered an amendment 
to sunset the program created in the Green Jobs Act after five 
years. The amendment was defeated by a vote of 18-26.
    
 Rep. Tom Price (R-GA) offered an amendment to 
apply Pay-as-you-Go requirements to H.R. 2847. The amendment 
was defeated by a vote of 20-25.
    
 Rep. Howard P. ``Buck'' McKeon (R-CA) offered an 
amendment to add ``the nuclear and clean coal to liquids 
industries'' to the list of eligible industries. The amendment 
was defeated by a vote of 20-25.
    
 Rep. Howard P. ``Buck'' McKeon (R-CA) offered an 
amendment to strike priority to ``formerly incarcerated, 
adjudicated, non-violent offenders.'' The amendment was 
defeated by a vote of 20-26.
    Though H.R. 2847 was not considered by the House of 
Representatives, its provisions were included in H.R. 3221, the 
Housing and Economic Recovery Act of 2008, which was signed 
into law on July 30, 2008.

                             111TH CONGRESS

Hearings--First Session

    On February 12, 2009, the Committee on Education and Labor 
Subcommittee on Higher Education, Lifelong Learning, and 
Competiveness held a hearing in Washington, D.C. entitled, 
``New Innovations and Best Practices under the Workforce 
Investment Act (Part I).'' The purpose of the hearing was to 
focus on ideas for improving the Workforce Investment Act of 
1998. Testifying before the subcommittee were: Ms. Sherry L. 
Johnson, Associate Director, Lincoln Trail Area Development 
District, Elizabethtown, KY; Ms. Karen R. Elzey, Vice President 
and Executive Director, Institute for a Competitive Workforce 
(ICW), U.S. Chamber of Commerce, Washington, D.C.; Ms. Bonnie 
Gonzalez, Chief Executive Officer, Workforce Solutions, 
McAllen, TX; Mr. Morton Bahr, National Coalition for Adult 
Literacy, Washington, D.C.; Mr. Stephen Wooderson, 
Administrator, Iowa Vocational Rehabilitation Services, Des 
Moines, IA; and Mr. Bill Camp, Executive Secretary, Sacramento 
Central Labor Council, Sacramento, CA.
    On February 26, 2009, the Committee on Education and Labor 
Subcommittee on Higher Education, Lifelong Learning, and 
Competiveness held a hearing in Washington, D.C. entitled, 
``New Innovations and Best Practices under the Workforce 
Investment Act (Part II).'' The purpose of the hearing was to 
focus on ideas for improving the Workforce Investment Act of 
1998. Testifying before the subcommittee were: Mr. John 
Morales, President, National Workforce Association, and 
Executive Director, Yuma Private Industry Council (YPIC), Yuma, 
AZ; Ms. Cheryl Keenan, Director, Division of Adult Education 
and Literacy, Office of Vocational and Adult Education, U.S. 
Department of Education, Washington, D.C.; Mr. George Scott, 
Director of Education, Workforce, and Income Security Issues, 
U.S. Government Accountability Office (GAO), Washington, D.C.; 
Mr. Bob Lanter, Legislative Committee Chairman, California 
Workforce Association and Executive Director, Contra Costa 
Workforce Development Board, Concord, CA; Ms. Sandi Vito, 
Acting Secretary, Department of Labor and Industry, State of 
Pennsylvania, on behalf of National Governor's Association, 
Harrisburg, PA; Mr. Kevin Smith, Executive Director and Chief 
Operating Officer, Literacy New York Inc., Buffalo, NY; and Ms. 
Charissa Raynor, Executive Director, Service Employees 
International Union (SEIU) Healthcare NW Training Partnership, 
Federal Way, WA.
    On March 23, 2009, the Committee on Education and Labor 
Subcommittee on Higher Education, Lifelong Learning, and 
Competiveness held a field hearing in Albany, NY entitled, 
``New Innovations and Best Practices under the Workforce 
Investment Act (Part III).'' The purpose of the hearing was to 
examine best practices being implemented at the state and local 
levels under the Workforce Investment Act of 1998. Testifying 
before the subcommittee were: Mr. Mario Musolino, Executive 
Deputy Commissioner, New York State Department of Labor, 
Albany, NY; Ms. Gail Breen, Executive Director, Fulton-
Montgomery-Schoharie Counties Workforce Development Board, 
Inc., Amsterdam, NY; Mr. Thomas Quick, Senior Human Resource 
Manager, General Electric--Power and Water, Schenectady, NY; 
Mr. Joseph Sarubbi, Executive Director, Tec-Smart, Hudson 
Valley Community College, Malta, NY; and Ms. Nanine Meiklejohn, 
Senior Legislative Representative, American Federation of 
State, County, and Municipal Employees (AFSCME), Washington, 
D.C.
    On March 31, 2009, the Committee on Education and Labor 
Subcommittee on Workforce Protections held a hearing in 
Washington, D.C. entitled, ``Green Jobs and their Role in our 
Economic Recovery.'' The purpose of the hearing was to examine 
the value of green jobs in fostering an American economic 
recovery. Testifying before the subcommittee were: Dr. Robin 
Roy, Vice President of Projects and Policy, Serious Materials, 
Sunnyvale, CA; Ms. Jill Sherman, Senior Development Manager at 
Gerding Edlen Development, Portland, OR; Dr. William Bogart, 
Dean of Academic Affairs and Professor of Economics, York 
College, York, PA; Mr. Jerome Ringo, President, Apollo 
Alliance, San Francisco, CA; Dr. Clint Wolfe, Executive 
Director, Citizens for Nuclear Technology Awareness, Aiken, SC; 
and Ms. Kathy Krepcio, Executive Director, John J. Heldrich 
Center for Workforce Development, Rutgers University, Newark, 
NJ.
    On May 5, 2009, the Committee on Education and Labor 
Subcommittee on Higher Education, Lifelong Learning, and 
Competitiveness held a hearing in Washington, D.C. entitled, 
``New Innovations and Best Practices under the Workforce 
Investment Act (Part IV).'' The purpose of the hearing was to 
focus on ideas for improving the Adult Education and Family 
Literacy Act, which is included as Title II of the Workforce 
Investment Act of 1998. Testifying before the subcommittee 
were: Ms. Gretchen Wilson, Country Music Singer, Lebanon, TN; 
Mr. Marty Finsterbusch, Executive Director, Voice of Adult 
Learners United to Educate (VALUE), Media, PA; Mr. David L. 
Bere, President, Dollar General, Goodlettsville, TN; Ms. Cathy 
Cooper, Policy Deputy for Basic Skills, Washington State Board 
for Community and Technical Colleges, Olympia, WA; Ms. Roberta 
Lanterman, Program Director, Long Beach School for Adults, Long 
Beach, CA; Dr. Donna Kinerney, Instructional Dean for Adult 
English for Speakers of Other Languages (ESOL) and Literacy 
Programs, Montgomery College, Rockville, MD; and Dr. Steve 
Reder, Professor of Applied Linguistics, Portland State 
University, Portland, OR.
    On May 29, 2009, the Committee on Education and Labor 
Subcommittee on Higher Education, Lifelong Learning, and 
Competiveness held a field hearing in Henderson, NV entitled, 
``New Innovations and Best Practices under the Workforce 
Investment Act (Part V).'' The purpose of the hearing was to 
examine best practices being implemented at the state and local 
levels under the Workforce Investment Act of 1998. Testifying 
before the subcommittee were: Mr. Brian Patchett, President and 
Chief Executive Officer, Easter Seals of Southern Nevada, Las 
Vegas, NV; Mr. Chris Brooks, Director of Renewable Energy, 
Bombard Electric, Las Vegas, NV; Ms. Chanda Cook, Director of 
Community Initiatives, Nevada Public Education Foundation, Las 
Vegas, NV; and Ms. Rebecca Metty-Burns, Interim Director, 
Workforce and Economic Division, College of Southern Nevada, 
Las Vegas, NV.

Hearing--Second Session

    On February 2, 2010, the Committee on Education and Labor 
held a hearing in Washington, D.C. entitled, ``Strengthening 
the Economy and Improving the Lives of American Workers.'' The 
purpose of the hearing was to examine the administration's 
policies for getting Americans back to work. Testifying before 
the committee was the Honorable Hilda Solis, Secretary, U.S. 
Department of Labor, Washington, D.C.

                             112TH CONGRESS

Hearings--First Session

    On February 16, 2011, the Committee on Education and the 
Workforce held a hearing in Washington, D.C. entitled, 
``Policies and Priorities at the U.S. Department of Labor.'' 
The purpose of the hearing was to discuss the fiscal year 2012 
budget proposal for the Department of Labor. Testifying before 
the committee was the Honorable Hilda Solis, Secretary, U.S. 
Department of Labor, Washington, D.C.
    On April 6, 2011, the Committee on Education and the 
Workforce held a hearing in Washington, D.C. entitled, 
``Streamlining Federal Education and Workforce Programs: A Look 
at the GAO Report on Government Waste.'' The purpose of the 
hearing was to discuss the GAO report entitled, Opportunities 
to Reduce Potential Duplication in Government Programs, Save 
Tax Dollars, and Enhance Revenue, which examined overlap, 
fragmentation, and duplication of federal programs. Testifying 
before the committee was the Honorable Gene L. Dodaro, 
Comptroller General, U.S. Government Accountability Office 
(GAO), Washington, D.C.
    On May 11, 2011, the Committee on Education and the 
Workforce Subcommittee on Higher Education and Workforce 
Training held a hearing in Washington, D.C. entitled, 
``Removing Inefficiencies in the Nation's Job Training 
Programs.'' The purpose of the hearing was to highlight the 
number of workforce development programs administered across 
the federal government, many of which are overlapping, 
duplicative, and target similar populations, and discuss the 
need to streamline these programs. Testifying before the 
subcommittee were: Dr. Andrew Sherrill, Director for Education, 
Workforce, and Income Security, U.S. Government Accountability 
Office (GAO), Washington, D.C.; Mr. Larry Temple, Executive 
Director, Texas Workforce Commission, Austin, TX; Mr. Bert 
``Van'' Royal, Owner/Broker, Magnolia Point Reality, K & V 
Investment Group, Inc., Green Cove Springs, FL; and Ms. Evelyn 
Ganzglass, Director of Workforce Development, CLASP, 
Washington, D.C.
    On August 30, 2011, the Committee on Education and the 
Workforce held a field hearing in Las Vegas, NV entitled, 
``Examining Local Solutions to Strengthen Federal Job Training 
Programs.'' The purpose of the hearing was to highlight the 
work being done by local businesses and workforce development 
professionals to respond to the needs of the local economy and 
workforce. Testifying before the committee were: The Honorable 
Andy A. Hafen, Mayor, City of Henderson, NV; Mr. Jeremy Aguero, 
Principal Analyst, Applied Analysis, Las Vegas, NV; Mr. Darren 
Enns, Secretary Treasurer, Southern Nevada Building and 
Construction Trades Council, Henderson, NV; Mr. LeRoy Walker, 
Vice President, Human Resources, St. Rose Dominican Hospitals, 
Nevada Market, Henderson, NV; Mr. Edward R. Guthrie, Executive 
Director, Opportunity Village, Las Vegas, NV; Mr. John Ball, 
Executive Director, Nevada Workforce Connections, Las Vegas, 
NV; and Ms. Rebecca Metty-Burns, Executive Director, Division 
of Workforce and Economic Development, College of Southern 
Nevada, Las Vegas, NV.
    On October 4, 2011, the Committee on Education and the 
Workforce Subcommittee on Higher Education and Workforce 
Training held a hearing in Washington, D.C. entitled, 
``Modernizing the Workforce Investment Act: Developing an 
Effective Job Training System for Workers and Employers.'' The 
purpose of the hearing was to focus on the need to provide 
flexibility and autonomy to state and local leaders to ensure 
the system is meeting the needs of area businesses and job 
seekers. Testifying before the subcommittee were: Ms. Kristen 
Cox, Executive Director, Utah Department of Workforce Services, 
Salt Lake City, UT; Ms. Laurie Bouillion Larrea, President, 
Workforce Solutions Greater Dallas, Dallas, TX; Mr. Jaime S. 
Fall, Vice President, Workforce and Talent Development Policy, 
HR Policy Association, Washington, D.C.; and Mr. Bruce G. 
Herman, Organizer and Strategist, National Call to Action, 
Brooklyn, NY.

Hearings--Second Session

    On March 21, 2012, the Committee on Education and the 
Workforce held a hearing in Washington, D.C. entitled, 
``Reviewing the President's Fiscal Year 2013 Budget Proposal 
for the U.S. Department of Labor.'' The purpose of the hearing 
was to discuss the fiscal year 2013 budget proposal for the 
Department of Labor. Testifying before the committee was the 
Honorable Hilda Solis, Secretary, U.S. Department of Labor, 
Washington, D.C.
    On April 17, 2012, the Committee on Education and the 
Workforce held a legislative hearing in Washington, D.C. 
entitled, ``H.R. 4297, the Workforce Investment Improvement Act 
of 2012.'' The purpose of the hearing was to hear perspectives 
on H.R. 4297, which reauthorizes the Workforce Investment Act 
of 1998 and learn how the bill addresses the challenges 
presented by the current workforce development system. 
Testifying before the committee were: Ms. Norma Noble, Deputy 
Secretary of Commerce for Workforce Development, Oklahoma 
Department of Commerce, Oklahoma City, OK; Ms. Laurie Moran, 
President, Danville Pittsylvania County Chamber of Commerce, 
Blairs, VA; Ms. Sandy Harmsen, Director, San Bernardino County 
Department of Workforce Development, San Bernardino, CA; and 
Mr. Andy Van Kleunen, Executive Director, National Skills 
Coalition, Washington, D.C.

Legislative Action--First Session

    On June 22, 2011, Rep. Howard P. ``Buck'' McKeon (R-CA) 
introduced H.R. 2295, the Workforce Investment Improvement Act 
of 2011. The bill eases restrictions that prevent program 
participants from accessing job training for in-demand 
industries and improves the One-Stop Career Center System. The 
bill is substantially the same as H.R. 27, which was considered 
by the House in the 109th Congress.
    On December 8, 2011, Higher Education and Workforce 
Training Subcommittee Chairwoman Virginia Foxx (R-NC) 
introduced H.R. 3610, the Streamlining Workforce Development 
Programs Act of 2011. The bill consolidates more than 30 
federally funded workforce development programs into a 
streamlined workforce development system.
    On December 8, 2011, Rep. Joe Heck (R-NV) introduced H.R. 
3611, the Local Job Opportunities and Business Success Act of 
2011 (JOBS Act). The bill enhances business engagement by 
increasing business presence on local boards to drive workforce 
development services to employers who need skilled workers.

Legislative Action--Second Session

    On March 29, 2012, Higher Education and Workforce Training 
Subcommittee Chairwoman Virginia Foxx (R-NC) and Reps. Howard 
P. ``Buck'' McKeon (R-CA) and Joe Heck (R-NV) introduced H.R. 
4297, the Workforce Investment Improvement Act of 2012. The 
bill streamlines federal workforce development programs; 
strengthens the employer-driven workforce development system; 
expands decision-making at the local level; improves 
accountability and transparency; simplifies reporting 
requirements; encourages more training to meet in-demand job 
opportunities; and improves adult education and vocational 
rehabilitation.
    On June 7, 2012, the Committee on Education and the 
Workforce considered H.R. 4297 in legislative session and 
reported it favorably, as amended, to the House of 
Representatives by a vote of 23-15.
    The committee considered and adopted the following 
amendments to H.R. 4297:
    
 Subcommittee Chairwoman Virginia Foxx (R-NC) 
offered an amendment in the nature of a substitute to ensure 
recognized postsecondary credentials and industry-recognized 
credentials are included in program performance indicators; 
include at-risk and out-of-school youth provisions in all 
program activities; increase the state set-aside for statewide 
activities; maintain and reform the national Job Corps program; 
and make technical and conforming changes. The amendment was 
adopted by a voice vote.
    
 Rep. Joe Heck (R-NV) offered an amendment to 
include the needs of small businesses and strategies to engage 
small businesses in state and local workforce plans. The 
amendment was adopted by a voice vote.
    
 Rep. Kristi Noem (R-SD) offered an amendment to 
increase the Secretary's reservation from 1 percent to 2 
percent for Native American, Native Alaskan, and Native 
Hawaiian employment and training services and improve 
performance metrics for such programs. The amendment was 
adopted by a voice vote.
    
 Subcommittee Chairwoman Virginia Foxx (R-NC) 
offered a manager's amendment to: (1) integrate four veterans 
job training programs identified in the U.S. Government 
Accountability Office (GAO) report into the One-Stop Career 
System funded under the Workforce Investment Fund; (2) 
authorize the Secretary to offer technical assistance to Job 
Corps centers for the purposes of improving program quality; 
and (3) make other technical and conforming changes. The 
amendment was adopted by a voice vote.
          
 Rep. George Miller (D-CA) offered a 
        second degree amendment to the Foxx manager's amendment 
        to strengthen accountability of veterans' employment 
        and training programs. The second degree amendment was 
        adopted by a voice vote.
    
 Rep. Bobby Scott (D-VA) offered an amendment to 
address employment barriers facing long-term unemployed workers 
in state and local workforce plans. The amendment was adopted 
by a voice vote.
    
 Rep. Rob Andrews (D-NJ) offered an amendment to 
disaggregate performance data to measure how specific 
populations are served and require states to maintain a central 
repository of policies. The amendment was adopted by a voice 
vote.
    
 Rep. Susan Davis (D-CA) offered an amendment to 
require veterans service organizations be a member of state and 
local workforce investment boards. The amendment was adopted by 
a voice vote.
          
 Subcommittee Chairwoman Virginia Foxx 
        (R-NC) offered a second degree amendment to the Davis 
        amendment to allow a governor or chief elected official 
        to appoint a veterans service organization to sit on 
        state and local boards. The amendment was adopted by a 
        vote of 21-17.
    The committee also considered the following amendments to 
H.R. 4297, which were not adopted:
    
 Rep. John Tierney (D-MA) offered an amendment in 
the nature of a substitute to establish new workforce 
development initiatives, including an $8 billion Community 
College to Career Fund. The amendment failed by a vote of 15-
23.
    
 Rep. Ruben Hinojosa (D-TX) offered two amendments, 
en bloc, to: (1) eliminate the requirement that state and local 
workforce investment boards have a two-thirds business 
majority, restore 19 specific federal mandates regarding board 
membership, and restore the priority for low-income 
individuals; and (2) increase authorization levels for adult 
education, create new programs related to adult education, 
expand state and local workforce investment boards to include 
representatives of adult education providers, and other changes 
to the Adult and Family Literacy Act (Title II of WIA). The 
amendments failed, en bloc, by a vote of 14-23.
    
 Rep. Bobby Scott (D-VA) offered an amendment to 
create a new Pathways Back to Work Fund, providing resources 
for low-income and disconnected youth for summer employment. 
The amendment failed by a vote of 15-23.
    
 Rep. Bobby Scott (D-VA) offered an amendment to 
create a 25 percent reservation of funds from local employment 
and training activities to serve at-risk youth. The amendment 
failed by a vote of 16-22.
    
 Rep. Dale Kildee (D-MI) offered an amendment to 
increase the set-aside for Native Americans, Native Alaskans, 
and Native Hawaiians from 1 percent to at least 2 percent and 
restore the current WIA Native American Program. The amendment 
failed by a vote of 15-23.
    
 Rep. Lynn Woolsey (D-CA) offered an amendment to 
restore the national Women in Apprenticeship in Non-Traditional 
Occupations program and add a required activity to the 
statewide employment and training activities for women in non-
traditional employment. The amendment failed by a vote of 15-
23.
    
 Rep. Tim Bishop (D-NY) offered an amendment to 
prohibit businesses that have sent jobs overseas from being 
members of state and local workforce investment boards. The 
amendment failed by a vote of 15-23.
    
 Rep. Rush Holt (D-NJ) offered an amendment to 
create a new independent living office that duplicates the 
Department of Education's rehabilitation services office and 
other changes to the Rehabilitation Act of 1973. The amendment 
failed by a vote of 15-23.
    
 Rep. Todd Platts (R-PA) offered an amendment to 
restore the national YouthBuild program. The amendment failed 
by a vote of 17-21.
    
 Rep. Tim Bishop (D-NY) offered an amendment to 
allow states to reserve a portion of funds from the state 
allocation to develop cooperative education programs. The 
amendment failed by a vote of 16-22.
    
 Rep. Rush Holt (D-NJ) offered an amendment to 
establish a 15 percent cap on funds used for incumbent worker 
training at the local level. The amendment was amended by 
unanimous consent and then later withdrawn.
    
 Rep. George Miller (D-CA) offered an amendment to 
create a new program to train workers to build elementary and 
secondary schools and community colleges. The amendment failed 
by a vote of 15-23.
    
 Rep. Rush Holt (D-NJ) offered an amendment to 
allow states to spend WIA funds on employment and training 
activities at public libraries. The amendment failed by a vote 
of 18-20.
    
 Rep. Rush Holt (D-NJ) offered an amendment to 
establish a new National Online Workforce Training Grants 
program. The amendment failed by a voice vote.
    
 Rep. David Loebsack (D-IA) offered an amendment to 
mandate that 5 percent of the state allocation be spent on an 
Employer Engagement Fund. The amendment failed by a vote of 17-
21.

                             113TH CONGRESS

Hearings

    On February 26, 2013, the Committee on Education and the 
Workforce Subcommittee on Higher Education and Workforce 
Training held a hearing in Washington, D.C. entitled, ``Putting 
America Back to Work: Reforming the Nation's Workforce 
Investment System.'' The purpose of the hearing was to hear 
perspectives on the Supporting Knowledge and Investing in 
Lifelong Skills (SKILLS) Act (H.R. 803), which reauthorizes the 
Workforce Investment Act of 1998, and discuss how the bill 
addresses the challenges presented by the current workforce 
development system. Testifying before the subcommittee were: 
Mr. Chris Hart, President and Chief Executive Officer, 
Workforce Florida Inc., Tallahassee, FL; Dr. Scott Ralls, 
President, North Carolina Community College System, Raleigh, 
NC; Mr. Todd Gustafson, Executive Director, Michigan Works! 
Berrien-Cass-Van Buren, Benton Harbor, MI; and Dr. Harry 
Holzer, Professor of Public Policy, Georgetown Public Policy 
Institute, Washington, D.C.

Legislative Action

    On February 25, 2013, Higher Education and Workforce 
Training Subcommittee Chairwoman Virginia Foxx (R-NC) 
introduced H.R. 803, the Supporting Knowledge and Investing in 
Lifelong Skills (SKILLS) Act. The bill streamlines federal 
workforce development programs, strengthens the employer-driven 
workforce development system, expands decision-making at the 
local level, improves accountability and transparency, 
simplifies reporting requirements, encourages more training to 
meet in-demand job opportunities, and improves adult education 
and vocational rehabilitation. The legislation is substantially 
the same as H.R. 4297 considered by the Committee on Education 
and the Workforce in the 112th Congress.
    On March 6, 2013, the Committee on Education and the 
Workforce considered H.R. 803 in legislative session and 
reported it favorably, as amended, to the House of 
Representatives by a vote of 23-0.
    The committee considered and adopted the following 
amendments to H.R. 803:
    
 Subcommittee Chairwoman Virginia Foxx (R-NC) 
offered an amendment in the nature of a substitute to extend 
the hold-harmless provision for state and local areas' formula 
funds from one year to three years; require the Office of 
Management and Budget--instead of the Department of Labor--to 
reduce federal staff working on repealed employment and 
training programs; amend language regarding the closing of 
chronically low performing Job Corps centers; and make 
technical and conforming changes to the introduced bill. The 
amendment was adopted by a voice vote.
    
 Rep. Tim Walberg (R-MI) offered an amendment, en 
bloc with the Roby and Brooks amendments, to allow states to 
submit their unified plans on employment and training programs 
solely to the Secretary of Labor, instead of multiple 
secretaries, placing the onus on the secretary to navigate the 
federal bureaucracy. The amendment also changes the law's 
current operating and funding schedule to align it with the 
federal fiscal year. The en bloc amendment was adopted by a 
voice vote.
    
 Rep. Martha Roby (R-AL) offered an amendment, en 
bloc with the Walberg amendment, to prohibit the use of funds 
under the Act for lobbying and political activities. The en 
bloc amendment was adopted by a voice vote.
    
 Rep. Susan Brooks (R-IN) offered an amendment to 
allow states and local areas to designate high-performing 
training providers who would be able to contract with local 
boards for group training services. Additionally, the amendment 
would allow state and local workforce boards to implement pay-
for-performance strategies. The en bloc amendment was adopted 
by a voice vote.

                                Summary

    The federal government currently administers over 50 
separate employment and training programs across nine different 
federal agencies. All of the programs overlap with at least one 
other program with most of the programs targeting similar 
populations and providing similar services. Only five of the 
programs have been evaluated for their effectiveness on finding 
employment opportunities for unemployed and underemployed 
workers.
    The Supporting Knowledge and Investing in Lifelong Skills 
(SKILLS) Act (H.R. 803), introduced by Higher Education and 
Workforce Training Subcommittee Chairwoman Virginia Foxx (R-
NC), streamlines and eliminates 35 ineffective and duplicative 
programs, including 26 identified in a 2011 report by the 
nonpartisan Government Accountability Office (GAO). The 
proposal creates a single Workforce Investment Fund to assist 
state and local workforce leaders in developing comprehensive 
employment and training systems to help get Americans back to 
work. The bill reforms the nation's workforce investment system 
authorized under the Workforce Investment Act to ensure it is 
producing results for all job seekers and employers by:
    
 Streamlining the confusing maze of workforce 
development programs;
    
 Strengthening business engagement in state and 
local workforce decisions;
    
 Increasing state and local flexibility and 
reducing administrative overhead;
    
 Supporting education and training opportunities 
for all adults, dislocated workers, and youth;
    
 Improving services at One-Stop Career Centers and 
promoting innovation;
    
 Ensuring accountability for the use of taxpayer 
funds; and
    
 Enhancing adult education and vocational 
rehabilitation services.
    Importantly, the new structure will maintain and improve 
workforce development and related services offered to all 
Americans, including unemployed and low-skilled adults and 
youth, currently receiving services under these programs.

Streamlining the confusing maze of workforce development programs

    The SKILLS Act builds on the work of state and local 
leaders, including those in Florida, Texas, and Utah, to create 
seamless, unified workforce development systems. As President 
Obama recognized in his 2012 State of the Union address, the 
current design of the public workforce investment system is a 
maze of individual programs and funding streams with various 
mandates, many of which provide the same or similar services. 
The legislation ends this fragmented federal, state, and local 
system that diverts limited resources from direct employment 
and training services for unemployed and underemployed workers.
    
 One Program for All Workers: The bill creates a 
single Workforce Investment Fund that provides formula funds to 
state and local workforce investment boards (WIBs) to create 
universal employment and training programs for all adults, 
unemployed workers, and youth. The new fund ensures all major 
workforce development services are co-located and administered 
through the nation's workforce investment system and One-Stop 
Career Centers. This change eliminates duplicative and 
inefficient job training programs, streamlines program 
administration at the federal, state, and local levels, and 
allows for greater coordination and collaboration among 
federal, state, and local programs.
    
 New Universal Program Structure: The Workforce 
Investment Fund includes a new formula for state and local 
areas consistent with the program's universal service 
structure. The formula is based on four factors: the number of 
individuals ages 16 through 72 in the civilian labor force; the 
number of unemployed individuals; the number of individuals who 
are experiencing long term unemployment defined as 15 weeks or 
more; and the number of disadvantaged youth ages 16 to 24. The 
program's structure:
          
 Allows governors to reserve up to 15 
        percent to carry out statewide activities, 25 percent 
        of which may be reserved for Rapid Response Activities 
        that provide assistance to local areas experiencing 
        mass layoffs or plant closings and 15 percent to target 
        services to individuals with barriers to employment and 
        training.
          
 Minimizes winners and losers by 
        including a minimum and maximum change in states' and 
        local areas' allotment percentages and a small state 
        minimum allotment.
          
 Allows the Secretary of Labor to reserve 
        one-half of 1 percent of the total appropriation to 
        carry out evaluations and technical assistance, set 
        aside 1 percent of the total funds to target employment 
        and training services directly to Indian tribes, and 
        reserve 3.5 percent to assist areas during natural 
        disasters. These changes allocate an overwhelming 
        majority of federal funds to state and local areas that 
        are empowered to get Americans back to work, and away 
        from bureaucrats at the Department of Labor.
          
 Limits the administrative activities of 
        state WIBs to 5 percent and local WIBs to 10 percent, 
        ensuring that most state and local funds are spent on 
        workforce investment activities that directly benefit 
        unemployed and underemployed workers.
          
 Authorizes level funding, based on the 
        FY 2012 budget, for the Workforce Investment Fund for 
        fiscal years 2014 to 2020.
    
 State and Local Focus on Special Populations: The 
bill requires state and local WIBs to detail how they will 
serve dislocated workers (including displaced homemakers), low-
income individuals (including recipients of public assistance 
such as those enrolled in the Supplemental Nutrition Assistance 
Program), long-term unemployed individuals (including 
individuals who have exhausted entitlement to state and federal 
unemployment compensation), English learners, homeless 
individuals, individuals training for nontraditional 
employment, youth (including at-risk youth and out-of-school), 
older workers, ex-offenders, migrant and seasonal farmworkers, 
refugee and entrants, veterans (including disabled and homeless 
veterans), and Native Americans. This change ensures all states 
and local areas are working to improve workforce services to 
special populations, instead of relying on small, targeted 
national programs to accomplish this goal.
    
 Elimination and Streamlining of Ineffective and 
Duplicative Programs: The bill streamlines and eliminates 35 
existing job training programs that support similar activities 
to aid individuals in finding and retaining employment. The 
programs include: (1) WIA Adult Program; (2) WIA Youth 
Activities; (3) WIA Dislocated Workers; (4) Employment Services 
(ES)/Wagner-Peyser Funded Activities; (5) Community-Based Job 
Training Grants; (6) Veterans Workforce Investment Program; (7) 
National Farmworker Jobs Program--U.S. Department of Labor; (8) 
Native American Employment and Training; (9) WIA National 
Emergency Grants; (10) Reintegration of Ex-Offenders; (11) 
Grants to States for Training for Incarcerated Individuals; 
(12) YouthBuild; (13) Conservation Activities by Youth Service 
Organizations (Youth Conservation Corps); (14) 21st Century 
Workforce Commission; (15) SNAP (aka Food Stamps) Employment 
and Training; (16) Senior Community Service Employment Program 
(SCSEP); (17) Brownfield Job Training Cooperative Agreements 
(Environmental Workforce Development and Job Training Grants); 
(18) Women in Apprenticeship and Nontraditional Occupations 
(WANTO); (19) Second Chance Act Prisoner Reentry Initiative; 
(20) Refugee and Entrant Assistance--Targeted Assistance 
Grants; (21) Refugee and Entrant Assistance--Social Services 
Program; (22) Refugee and Entrant Assistance--Targeted 
Assistance Discretionary; (23) Projects with Industry; (24) 
State-Supported Employment Services Program; (25) Migrant and 
Seasonal Farmworkers Program--U.S. Department of Education; 
(26) Disabled Veterans' Outreach Program; (27) Local Veterans 
Employment Representative Program; (28) WIA Pilot and 
Demonstration Projects; (29) Workforce Innovation Fund; (30) ES 
Statistical Programs; (31) Green Jobs Act; (32) National 
Institute for Literacy; (33) Youth Opportunity Job Grants; (34) 
Recreational Programs; and (35) In-Service Training of 
Rehabilitation Personnel. The bill further requires the Office 
of Management and Budget (OMB) to reduce federal staff working 
on repealed employment and training programs.

Strengthening business engagement in state and local workforce 
        decisions

    The SKILLS Act maintains the long-standing position that 
the nation's workforce investment system can only be successful 
in building the skills of job seekers and helping them secure 
employment if it is closely linked with employers. The bill 
puts the business community--the job creators--in the driver's 
seat, and strengthens business-led workforce investment boards 
to ensure the system is focused on training individuals for in-
demand jobs that are growing in the state and local area.
    
 Stronger Business-led Boards: The bill strengthens 
the presence and participation of the business community on 
state and local WIBs by requiring business leaders, including 
those representing in-demand industries, to make up a two-
thirds majority on the boards. Business leaders currently have 
a simple majority on the boards. This change ensures strategic 
planning focuses on identifying the gaps in the workforce to 
train individuals to fill available jobs.
    
 Stronger Business Focus: The bill requires state 
WIBs to develop strategies across local areas that meet the 
needs of employers, and ensures local WIBs provide employment 
and training activities that meet the needs of employers and 
enhance communication, coordination, and collaboration between 
in-demand industries and small businesses with the workforce 
investment system.
    
 Relevant to Businesses: The bill requires state 
and local WIBs to detail how they will more fully engage 
businesses in workforce investment activities, meet the needs 
of businesses in the state and local area, and develop 
industry/sector partnerships that encourage industry growth and 
improve worker training. The bill also includes the attainment 
of industry-recognized credentials as a performance outcome.

Increasing state and local flexibility and reducing administrative 
        overhead

    The SKILLS Act recognizes state and local areas should have 
maximum flexibility to design programs and initiatives best 
suited to their workers, businesses, and workforce development 
partners. Though WIA pushes state and local areas to develop 
business-friendly, customer-centric initiatives, the current 
system imposes hundreds of heavy-handed mandates, including 
mandates on who can serve on state and local boards. As a 
result, the mandates have created paperwork and compliance 
burdens. The bill streamlines the law's governance system, 
reducing bureaucracy and maximizing resources for unemployed 
and underemployed workers.
    
 Smaller Local and State Boards: The bill 
restructures local WIBs by removing all federal requirements on 
board membership, except business representation. State WIBs 
retain business representation, chief elected officials, and 
economic development representatives. Chief elected officials 
and governors have the power to appoint the remaining one-third 
membership of each respective board, which may include members 
of the state legislature and representatives of youth 
organizations, community colleges, labor unions, community-
based organizations, veterans service organizations, and One-
Stop partners. This change dramatically reduces the size of the 
boards, making them more manageable and focused on strategic 
decisions.
    
 Review of Outdated State Policies: The bill 
requires state WIBs to review and develop statewide policies 
and programs that support comprehensive workforce development 
systems, including determining whether they should consolidate 
additional employment and training programs into the Workforce 
Investment Fund for the express purpose of providing greater 
administrative flexibility and reducing overly burdensome 
paperwork requirements.
    
 Simplified Program Administration: The bill 
authorizes states to develop and submit unified state plans to 
the Secretary of Labor and, if they choose, to consolidate 
additional federal job training and social services programs 
into the Workforce Investment Fund. This further reduces 
inefficiencies in the administration of employment and training 
programs at the state and local levels and creates a unified 
workforce and economic development system. States must continue 
to comply, however, with all program requirements of the 
consolidated program. The programs include: (1) programs 
authorized under Titles I and II of the Workforce Investment 
Act; (2) programs under the Trade Adjustment Act; (3) the 
National Apprenticeship Act; (4) Community Services Block 
Grants (CSBG); (5) Temporary Assistance for Needy Families 
(TANF); (6) programs under state unemployment compensation 
laws; (7) work programs under the Food Stamp Act; (8) the 
Community Development Block Grant (CDBG); and (9) Economic 
Development programs. The bill requires the Secretary of Labor 
to navigate the federal bureaucracy of each federal department 
or agency approving state unified plans, placing this burden on 
the secretary rather than on the state.
    
 Promoting Local Flexibility: The bill eliminates 
the requirement in current law that local WIBs give priority to 
low-income individuals. This change gives local areas 
additional flexibility to determine how best to get all 
unemployed Americans back to work and is consistent with the 
bill's intent to create workforce development programs that 
benefit all job seekers.
    
 Modernizing and Creating Regional Approaches to 
Job Creation: The bill eliminates the grandfather provisions in 
current law that allow certain state and local entities similar 
to WIBs and One-Stop Career Centers that were in existence 
prior to 1998 to remain in place. It requires state WIBs, in 
consultation with local leaders, to designate local workforce 
investment areas, taking into consideration existing labor 
market areas and economic development regions. It removes 
barriers that are preventing states from implementing a 
regional approach to providing services by ending duplicative 
and overlapping service delivery areas.

Supporting education and training opportunities for all adults, 
        dislocated workers, and youth

    The SKILLS Act removes barriers in current law that prevent 
unemployed and underemployed workers from accessing important 
employment and training services. According to the Bureau of 
Labor Statistics, there are more than 3.6 million job openings 
across the country because many employers are unable to find 
skilled workers. The legislation supports states and local 
areas in developing workforce development services that are in-
demand and tailoring services to individuals that meet the 
needs of each job seeker.
    
 Dedicated Funds for Training: The bill requires 
local WIBs to reserve a percentage of funds, as specified by 
the board, to carry out training activities for job seekers. 
This change addresses the concern that a significant portion of 
employment and training funds are currently spent on 
infrastructure and administrative costs. The reservation 
ensures job training is a priority for the workforce investment 
system.
    
 Direct Access to Training: The bill combines 
``core services'' and ``intensive services'' into a new 
category of ``work ready services,'' which allows individuals 
to receive the services that best meet their needs quickly. 
This change eliminates the cumbersome ``sequence of services'' 
process that individuals must go through to access training 
under current law.
    
 Reducing Burdensome Requirements: The bill allows 
states to determine what standards will be required for 
eligible training providers, streamlining the bureaucratic 
requirements that have forced many community colleges and other 
training providers out of the system. It also permits local 
areas to contract directly with community colleges and other 
institutions of higher education to provide specialized group 
training programs designed for employers who are looking to 
hire several workers with a particular skill.
    The legislation allows local WIBs to develop and implement 
industry and sector partnerships to aid in aligning resources 
and training efforts among multiple firms.
    
 Reforms the Job Corps Program: The bill 
restructures Job Corps to ensure career and technical education 
and training is geared toward in-demand occupations and 
disadvantaged youth receive a regular high school diploma and/
or a recognized postsecondary credential that prepares them for 
employment in the global economy. It establishes a new 
performance accountability and management system; requires the 
Secretary of Labor to provide technical assistance to low-
performing centers, and requires all grantees to re-compete for 
funding, ensuring grantees are high-quality and have expertise 
in serving disadvantaged youth. These changes ensure at-risk 
youth become more employable, responsible, and productive 
citizens.

Improving services at one-stop career centers and promoting innovation

    The SKILLS Act responds to the changing U.S. economy. 
States and local workforce boards should have the tools to 
implement and continuously improve workforce programs, 
including those at the 3,000 One-Stop Career Centers, to keep 
pace with the dynamic real time evolution of local and regional 
economies. The legislation supports the innovative approaches 
taking place at the state and local levels by maintaining and 
strengthening the One-Stop Career system without authorizing 
new and duplicative programs that empower the Secretary of 
Labor to pick winners and losers.
    
 Strengthening One-Stop Career Centers: The 
legislation requires state WIBs to describe how they will 
encourage regional cooperation within the state and foster 
communication and partnerships with nonprofit organizations to 
enhance the quality of services available to workers. The bill 
requires each mandatory partner program to contribute a portion 
of their administrative funds toward infrastructure funding. 
This change ensures all organizations are paying a fair share 
for the physical structure and administrative costs to One-
Stops, ensuring employment and training dollars are spent on 
direct services for individuals.
    
 In-Demand Occupations: The bill requires local 
WIBs to conduct and regularly update workforce research and 
regional labor market analysis. This analysis is used to 
determine the immediate and long-term skilled workforce needs 
of in-demand industries and small businesses, as well as the 
knowledge and skills of the workforce in the area to address 
critical skills gaps between employers and job seekers.
    
 Reducing Barriers to Employment: The bill requires 
states to set aside 15 percent of their reserve to provide job 
training services to individuals with barriers to employment. 
These competitive grants to local WIBs and/or non-profit or 
for-profit organizations provide additional assistance to local 
areas to help hard-to-serve individuals, including individuals 
with disabilities and at-risk youth, obtain the skills 
necessary to get a job. These changes use the expertise and 
knowledge of the statewide workforce investment system to serve 
individuals who have barriers to employment, instead of 
continuing to support national programs operating outside of 
the WIA system. The bill provides maximum flexibility to state 
and local areas to identify the targeted population they aim to 
assist and build workforce development programs that address 
their unique needs. It also requires eligible grantees to 
demonstrate their capacity to achieve the best results for 
individuals with employment barriers and reimburses programs on 
their ability to achieve specified performance outcomes and 
criteria established by the governor.
    
 Increased Use of Technology: The bill encourages 
state and local WIBs to use technology to facilitate access of 
workforce development services in remote areas. The legislation 
allows state and local WIBs to disseminate information not only 
in writing, but also electronically to ensure full transparency 
of their actions and intentions.
    
 Better Services for Individuals with Disabilities: 
The bill requires state and local WIBs to describe how they 
will serve the employment and training needs of individuals 
with disabilities and stipulates that local WIBs are to work 
with the area's disability community to make available 
comprehensive, high-quality services to individuals with 
disabilities.

Ensuring accountability for the use of taxpayer funds

    The SKILLS Act ensures taxpayer funds are spent effectively 
and efficiently, and workforce development programs are helping 
Americans get back to work. Federal job training programs have 
a myriad of performance measures, many of which do not address 
whether or not an unemployed or underemployed worker received 
the appropriate training and secured employment in a particular 
field. As such, there is little information available to 
federal, state, and local policymakers on whether federal 
programs are making a difference in local communities. The 
legislation responds to last year's GAO report on multiple 
employment and training programs and takes a number of 
important steps to provide a clear picture as to the true 
effectiveness of federal job training programs.
    
 Protecting Taxpayers: The bill requires state and 
local WIBs to give priority to placing participants in private-
sector employment, instead of continuing to grow the size of 
government at all levels. It also requires local WIBs, in 
consultation with their chief elected officials, to designate 
or certify One-Stop Career Center operators through competitive 
processes. This change eliminates the authority for public, 
government-led consortiums of boards and One-Stop partners to 
automatically manage the centers. The legislation makes state 
and local WIBs responsible for the use and management of 
employment and training funds spent in their area. Finally, the 
bill prohibits the use of workforce investment funds for 
lobbying and political activities.
    
 Common Performance Measures: The bill rewrites the 
accountability system included in current law to create common 
performance measures for the Workforce Investment Fund, and the 
Adult Education and Vocational Rehabilitation programs, to 
decrease burdensome administrative reporting requirements. 
Common measurements include the number and percentage of 
participants entering and retaining unsubsidized employment in 
the field in which the individual received training and 
obtaining recognized postsecondary credentials, including 
industry-recognized credentials. The legislation also:
          
 Requires state and local WIBs to 
        disaggregate performance data to identify how 
        particular populations are served.
          
 Allows governors to add additional 
        performance measures for use within their states.
          
 Eliminates the unreliable customer 
        satisfaction measure as a required performance 
        measurement, but allows state and local WIBs to 
        continue to use it if they choose.
          
 Requires the Secretary of Labor to 
        reduce funding for those states that fail to meet 
        performance measures for two consecutive years.
          
 Requires local WIBs to develop a 
        reorganization plan if they fail to meet performance 
        measures for two consecutive years. Currently, the 
        reorganization plan is allowed under the law, but it is 
        not mandatory.
          
 Requires governors to reduce funding for 
        those local WIBs that fail to meet performance measures 
        for three consecutive years.
    
 Transparency in Results: The bill requires state 
and local WIBs to report additional information to improve 
federal, state, and local efforts to better measure program 
performance and validate worker outcomes. Included in this 
reporting are common measurements to compare the number of 
individuals who receive both work-ready and training services 
and who successfully complete such services. The bill also 
requires states to maintain a central repository of policies 
related to access, eligibility, and availability of services 
electronically.
    
 Program Evaluations: Consistent with the recent 
GAO finding, the bill requires the Secretary of Labor to 
conduct an independent evaluation of all workforce development 
programs and activities at least once every five years. The 
evaluations must be contracted out through grants, contracts, 
or cooperative agreements. The results of the evaluations must 
be publicly available.
    
 Training Providers: The bill requires state WIBs 
to set eligibility criteria for training providers that take 
into account the performance of providers and whether the 
training programs relate to occupations that are in demand. The 
bill also allows state and local WIBs to implement pay-for-
performance strategies, as well as designate those training 
providers that demonstrate the highest level of success on 
performance indicators to be deemed priority providers.

Enhancing adult education and vocational rehabilitation services

    The SKILLS Act reauthorizes the Adult Education program, 
which provides funds to states to assist adults without a high 
school diploma to become literate and obtain the knowledge and 
skills necessary for postsecondary education and/or employment. 
The bill makes the following changes to the program:
    
 Increases the focus of adult education programs on 
the delivery of basic skills such as reading, writing, 
speaking, and math, and encourages integrated education and 
workforce development programs.
    
 Ensures instructional practices are evidence-based 
to provide the highest return on federal investments.
    
 Enhances delivery of services through the use of 
technology, including distance education, to improve the 
professional development of teachers and the delivery of 
instruction to participants.
    
 Requires better coordination with the business 
community and the workforce investment system.
    
 Measures performance using the common performance 
measures outlined for all workforce investment programs to 
provide national, state, and local leaders with the data needed 
to make informed decisions.
    The SKILLS Act reauthorizes the Rehabilitation Act of 1973, 
which provides vocational rehabilitation (VR) services to 
assist individuals with disabilities prepare for, obtain, and 
retain employment. The bill makes the following changes to the 
program:
    
 Streamlines the federal bureaucracy by 
redesignating the commissioner of the Rehabilitation Services 
Agency as a director, removing the requirement for Senate 
confirmation, and encouraging better collaboration for 
individuals with disabilities.
    
 Requires coordination between VR and services 
provided under the Assistive Technology Act.
    
 Includes in the state plan an assessment of 
transition services provided through the VR system and how 
those services are coordinated with services under the 
Individuals with Disabilities Education Act (IDEA).
    
 Includes in the state plan strategies the state 
will use to address the needs identified in the assessment of 
transition services described above.
    
 Requires states to use one-half of 1 percent of 
their VR funding to award grants to businesses in partnership 
with other entities to create practical job and career 
readiness and training programs, and provide job placements and 
career advancement.
    
 Requires states to reserve 10 percent of their 
formula grant funds to provide transition services to students 
with disabilities served under IDEA as they prepare to move out 
of school to postsecondary education, employment, or 
independent living.
    
 Strengthens coordination and collaboration between 
parent training programs under IDEA and the Rehabilitation Act 
of 1973.
    
 Measures performance using the common performance 
measures outlined for all workforce investment programs to 
provide national, state, and local leaders with the data needed 
to make informed decisions.
    Both the Adult Education and Vocational Rehabilitation 
programs are mandatory partners in the One-Stop Career system 
and will contribute a portion of their administrative funds to 
the delivery infrastructure based on the state's determination. 
The bill limits the portion of administrative funds that VR 
programs are required to contribute to the proportionate use of 
the One-Stops by the programs in the state.

                            Committee Views


Introduction

    In March 2013, the U.S. unemployment rate stood at a 
staggering 7.7 percent, continuing a devastating trend of 
unemployment hovering around 8 percent for the last four years. 
At a time when millions of Americans are desperate for jobs, 
our nation needs a dynamic, results-oriented job training 
system that meets the needs of workers and helps local 
communities respond to an ever-changing labor market.
    In 1998, Congress passed the Workforce Investment Act (WIA) 
to give job seekers access to important employment services, 
including resume assistance, career counseling, skills 
assessments, labor market information, and specialized 
training, to help them get back to work. In the decade since 
the last reauthorization of the law, our economy has changed 
dramatically. In 1998, the federal government was running a 
budget surplus, unemployment was less than 5 percent, there was 
virtually no inflation, and workers were experiencing solid 
growth of monthly and yearly income. Today, our country 
continues to run annual trillion dollar deficits, we have a 
historic $16 trillion national debt, the unemployment rate has 
been hovering around 8 percent for the last four years, there 
have been growing concerns about rising inflation, and many 
workers continue to see stagnant wages.
    Instead of responding to the changing needs of American 
workers and employers in the global economy, the current 
workforce development system is broken and antiquated. Less 
than half of the individuals who access services through the 
current workforce system get a job after taking advantage of 
job search, communication and interviewing skills development, 
on-the-job training, and other employment services. Worse, only 
20 percent of workers actually receive training services that 
provide the important skills necessary to succeed in the 
workplace. According to the U.S. Department of Labor, 3.6 
million jobs remain unfilled despite nearly 12 million 
unemployed workers. Employers largely attribute this 
discrepancy to the lack of a skilled workforce--the so-called 
``skills gap''--and many workers admit they struggle to find 
essential training for available jobs. In spite of the best 
intentions to establish a unified workforce development system 
15 years ago, employers and state and local leaders still 
grapple with a bureaucracy that squanders taxpayer resources, 
stifles innovation, and stands in the way of the support and 
training workers need to get back on their feet.
    The problems in the system haven't gone unnoticed. In 
January 2011, the U.S. Government Accountability Office (GAO) 
released a report that found the federal government administers 
roughly 47 separate and distinct job training programs across 
nine agencies, costing taxpayers $18 billion annually. The 
report found many of these programs overlap, and few have been 
evaluated for efficacy. In his 2012 State of the Union address, 
President Barack Obama called on Congress to ``cut through the 
maze of confusing [job] training programs.'' A Wall Street 
Journal editorial on May 9, 2012, noted ``a federal job 
training program that puts people back to work is hard to 
find.''
    Understanding the nation's economic situation is the number 
one issue facing our country, the House Committee on Education 
and the Workforce is working to create a workforce development 
system that will better serve all Americans. The Supporting 
Knowledge and Investing in Lifelong Skills (SKILLS) Act, H.R. 
803, provides a more dynamic, flexible, and effective network 
of job training and education services. It empowers employers 
to play a key role in ensuring the system meets the needs of 
in-demand industries, reins in federal and state bureaucracy, 
and develops a more transparent and accountable performance 
system that ensures a return on taxpayer investments.

      TITLE I--AMENDMENTS TO THE WORKFORCE INVESTMENT ACT OF 1998

Workforce development programs

    In January 2011, GAO released a report entitled, Multiple 
Employment and Training Programs: Providing Information on 
Colocating Services and Consolidating Administrative Structures 
Could Promote Efficiencies. For fiscal year 2009, the GAO 
identified 47 employment and training programs across nine 
different federal agencies spending approximately $18 billion 
on employment and training services. This represents an 
increase of three programs and $5 billion since fiscal year 
2003. Forty-four of these programs were found to overlap with 
at least one other program and only five of the 47 programs had 
been evaluated to determine whether they improved employment 
outcomes. In addition, 23 of the programs did not claim to 
conduct any type of study that reviewed performance. Through 
continued oversight of the workforce development system, 
additional job training and employment programs have been 
identified. As a result, the committee determined the federal 
government administers more than 50 employment and training 
programs.
    The committee supports a comprehensive statewide workforce 
investment system that will better serve all Americans, 
regardless of age or economic situation. Under the current 
system, separate funding streams have resulted in 
administrative inefficiencies at the federal, state, and local 
levels, creating confusion for workers struggling to access the 
services necessary to get a job. Several of the so-called 
national programs, created at the urging of specific 
populations outside of statewide workforce development systems, 
largely duplicate the employment and training services provided 
through the nation's 3,000 One-Stop career centers and are too 
small to have a significant national bearing. As a result, the 
nation's current job training system diverts direct services 
and limited resources away from unemployed and underemployed 
workers and towards unnecessary bureaucracy. The committee 
believes the federal government has a responsibility to 
eliminate waste, fraud, and abuse of taxpayer dollars and to 
make the tough choices necessary to streamline ineffective and 
duplicative federal programs. A failure to act when confronted 
with such compelling evidence of waste is indefensible.
    At an October 4, 2011 Subcommittee on Higher Education and 
Workforce Training hearing entitled, ``Modernizing the 
Workforce Investment Act: Developing an Effective Job Training 
System for Workers and Employers,'' Kristen Cox, executive 
director of the Utah Department of Workforce Services, outlined 
the problems inherent in the current workforce investment 
system:

          ``The current design of the public workforce 
        investment system is a maze of individual programs and 
        funding streams with various mandates attached to each 
        program. It is then the expectation of the states to 
        manage through these mandates and bureaucracy and 
        provide individuals and businesses with the employment 
        and job training services needed, thus contributing to 
        the improvement of the national economy. Just meeting 
        individual program requirements, providing fiscal 
        stewardship over each individual funding stream, 
        tracking outcomes and results for individual programs, 
        and implementing a business-friendly, customer-centric 
        model around targeted program mandates is extremely 
        inefficient by diverting finite resources from actual 
        employment and job training services.''

    Mr. Bert ``Van'' Royal, owner of Magnolia Point Realty in 
Green Cove Springs, Florida, echoed this sentiment from the 
local business perspective. In testimony at a May 11, 2011 
subcommittee hearing entitled, ``Removing Inefficiencies in the 
Nation's Job Training Programs,'' he stated:

          ``The GAO report referenced here today describes a 
        plethora of federal job training and employment 
        programs. While all of them were likely created with 
        the best of intentions, it is virtually impossible for 
        businesses, particularly small businesses, and job 
        seekers to know about and navigate the services of that 
        many programs. We need a system that is simple to 
        understand and easy to use.''

    In order to ensure our nation's workforce investment system 
is producing results for all job seekers and employers, H.R. 
803 eliminates and streamlines 35 ineffective and duplicative 
employment and training programs, 26 of which were identified 
by the GAO report, and creates a single Workforce Investment 
Fund (WIF). The new flexible WIF program assists states and 
local workforce investment boards in developing a comprehensive 
workforce development system administered through existing One-
Stop career centers that will help get Americans back to work. 
The new WIF streamlines the confusing maze of job training 
programs, decreases administrative overhead, and improves 
program coordination. Importantly, the new structure will 
maintain and improve workforce development services offered to 
all Americans, including those who receive services under 
existing workforce development programs.
    In a letter to Chairman John Kline (R-MN) and Ranking 
Member George Miller (D-CA) dated March 5, 2013, the U.S. 
Chamber of Commerce endorsed this important step. The 
organization stated:

          ``Reauthorization of the Workforce Investment Act 
        (WIA) is long overdue and the Chamber believes H.R. 803 
        would allow for some much-needed updates and 
        improvements to America's workforce and training 
        system''
          Specifically, this legislation would repeal many 
        ineffective and duplicative federal training and 
        employment programs. The Chamber believes this 
        consolidation, when combined with additional state and 
        local flexibility for the delivery of these services, 
        would allow more adults and dislocated workers to more 
        efficiently receive the services they need to not only 
        find a job, but also stay employed.

    The programs and their justifications for elimination and 
consolidation into the WIF under H.R. 803 include the 
following:

                        (In alphabetical order)

    
 Brownfields Job Training Cooperative Agreements 
(Environmental Workforce Development and Job Training Program). 
This program awards grants to entities that provide unemployed 
and underemployed people living in areas affected by solid and 
hazardous waste with the skills needed to secure employment in 
environmental fields. It has provided little return on federal 
investments, funding 191 job training grants over the past 12 
years totaling $42 million, yet placing a mere 7,000 
individuals into environmentally-related jobs over the same 
period of time. In addition, the program reports graduates 
generally pursue three paths after training, with only the 
first focused on the program's mission: (1) employment in the 
environmental field; (2) employment in other fields; or (3) 
further education. Finally, funds can be used for a variety of 
activities not focused on providing direct job training 
services to participants, such as training in First Aid or CPR, 
costs associated with health exams, and transportation.
    
 Community-Based Job Training Grants. This program, 
which supports workforce training for high-growth/high-demand 
industries through community and technical colleges, has not 
been funded since fiscal year 2010. Further, a 2011 Senate 
Appropriations Committee report stated other significant 
funding sources exist to support community colleges for similar 
endeavors.
    
 Conservation Activities by Youth Service 
Organizations (Youth Conservation Corps). This program, which 
provides summer employment for youth ages 15-18 and work 
experience on public lands, is duplicative of the current 
workforce investment system, including Job Corps and other 
targeted youth programs. As reported by GAO, this program has 
not conducted an impact study since at least 2004. Instead of a 
separate stand-alone program, the SKILLS Act requires state and 
local workforce investment boards to describe how they will 
serve the employment and training needs of youth, including 
out-of-school youth and at-risk youth.
    
 Disabled Veterans' Outreach Program (DVOP). This 
program, which provides funds to support dedicated specialist 
employment positions to primarily serve disabled veterans, is 
duplicative of the local veterans' employment representative 
program. Under a recent analysis, only 17 percent of eligible 
veterans were found to receive ``intensive'' services under the 
DVOP program. In fiscal year 2011, only half of those 
participating veterans with disabilities were employed after 
they exited the program. The program's performance targets for 
fiscal year 2012 are to help even fewer veterans, 42 percent, 
at a time when more servicemen and women are returning home. 
Instead of a separate stand-alone program, the SKILLS Act 
requires state and local workforce investment boards to 
describe how they will furnish employment, training, support, 
and placement services to veterans, including disabled 
veterans. The bill also maintains current law provisions 
providing a priority of service for veterans and eligible 
spouses in all qualified job training programs, including the 
new Workforce Investment Fund.
    
 Employment Service (ES)/Wagner-Peyser Funded 
Activities and ES Statistical Programs. The ES program, which 
is authorized under the Wagner-Peyser Act to help job seekers 
with job search assistance, reported placing a dismal 48 
percent of participants into employment in 2010, 25 percent of 
whom did not retain employment. For the past three years, the 
program has set a low goal of assisting less than half of 
participants in finding employment, ensuring the program meets 
its performance measurements. This low goal is especially 
disconcerting given the state of the economy. In addition, the 
program is duplicative of the core and intensive services 
(renamed work ready services in the SKILLS Act) already offered 
through One-Stop career centers. The ES Statistical Programs, 
which reimburse states that provide data for national 
statistical programs, is duplicative of those statewide 
activities currently funded under WIA. The SKILLS Act continues 
to provide states with funding to carry out statewide 
employment and training activities, including the collection of 
accurate local, regional, and national workforce and labor 
market information.
    
 Grants to States for Workplace and Community 
Transition Training for Incarcerated Individuals. This program, 
which awards grants to state correctional education agencies to 
assist incarcerated individuals in acquiring postsecondary 
education, counseling, and vocational training, did not receive 
funding in fiscal year 2012, nor did the Department of 
Education request funding for this program in the president's 
fiscal year 2013 budget. According to the latest data, only 26 
percent of participants in this program completed their 
postsecondary education and training requirements. Instead of a 
separate stand-alone program, the SKILLS Act requires state and 
local workforce investment boards to describe how they will 
serve the employment and training needs of ex-offenders.
    
 Green Jobs Act. This program, which was 
established as a pilot program in 2009 and funded under the 
American Recovery and Reinvestment Act (ARRA) to develop 
training programs for jobs in a range of ``green'' industries, 
has not been funded since fiscal year 2010. In September 2011, 
the Department of Labor's Inspector General (IG) reported that 
out of $435.4 million allocated for green jobs training 
programs under ARRA, only $162.8 million had been expended by 
grantees. In addition, the IG found that grantees reported 
serving just 52,762 (42 percent) of the targeted 124,893 
participants and only placed 8,035 participants out of the 
targeted 79,854 participants in jobs.
    
 Local Veterans' Employment Representative Program 
(LVER). This program, which provides dedicated staff employment 
positions primarily at One-Stop career centers to assist 
veterans, has demonstrated poor results. Under a fiscal year 
2009 analysis, only 22 percent of eligible veterans received 
direct ``intensive'' services under the LVER program. In fiscal 
year 2011, only half of participating veterans were employed 
after they exited the program. The program's performance 
targets for fiscal year 2012 are lower, despite increasing 
numbers of servicemen and women returning home. State and local 
areas also lack sufficient data to determine whether LVER or 
regular One-Stop career center staff is responsible for 
delivering services to veterans. Instead of a separate stand-
alone program, the SKILLS Act integrates the LVER program into 
the One-Stop career system, requiring local areas to hire and 
employ specialists to carry out employment, training, and 
placement services for our nation's veterans. These specialists 
will also conduct outreach to local employers to assist 
veterans in gaining employment.
    
 National Farmworker Job Program (U.S. Department 
of Labor). This program, which provides job training and 
employment development services to migrant and seasonal 
farmworkers, duplicates the efforts of the larger WIA programs 
that provide funds to state and local workforce investment 
areas to carry out workforce development activities. Under 
current law, migrant and seasonal farmworkers receive 
employment and training services through the nation's 3,000 
One-Stop career centers. According to the Department of Labor's 
program year 2010 quarterly state data reports, more than half 
of individuals participating in the program did not receive 
training services and even fewer completed training. In 2003, 
the Office of Management and Budget (OMB) found more than 60 
percent of the program's participants received only supportive 
services like emergency cash assistance. GAO reports the 
program has not conducted an impact study since at least 2004. 
Instead of a separate stand-alone program, the SKILLS Act 
requires state and local workforce investment boards to 
describe how they will serve the employment and training needs 
of migrant and seasonal farmworkers.
    
 National Institute for Literacy (NIFL). The 
institute, which is an independent office charged with 
providing national leadership on literacy, has not received 
funding since fiscal year 2010. In 2010, the Obama 
Administration proposed eliminating the program, stating, ``The 
Administration believes that NIFL's broad mission and the lack 
of clear management oversight have led to a diffuse and 
incoherent system of delivery as well as duplication of efforts 
with other Department of Education and Federal offices.'' In 
addition, nearly half of NIFL's $6.5 million 2009 appropriation 
was targeted to support expenses for personnel and overhead.
    
 Native American Employment and Training. This 
program, which supports employment and training activities for 
Indian, Alaska Native, and Native Hawaiian individuals, tracks 
only a few outcomes and does not measure whether former 
participants are experiencing wage gains after exiting the 
program. The Department of Labor has set the bar low by putting 
in place a goal of finding employment for just 57 percent of 
participants, despite high unemployment numbers facing this 
population. As reported by GAO, this program has not conducted 
an impact study since at least 2004. Instead of a separate 
stand-alone program, the SKILLS Act requires the Secretary of 
Labor to reserve up to one percent of the Workforce Investment 
Fund to provide employment and training services to Indian 
tribes. It also requires state and local workforce investment 
boards to describe how they will serve the employment and 
training needs of Native Americans.
    
 Refugee Job Training Programs. There are three job 
training programs dedicated to providing employment and 
training services to refugees and new entrants, including the 
Refugee and Entrant Assistance Targeted Assistance Grants, the 
Refugee and Entrant Assistance Social Services Program, and the 
Refugee and Entrant Assistance Targeted Discretionary Program. 
These programs are duplicative of the main workforce investment 
system, which is a universal access system designed to help 
unemployed and underemployed individuals gain the skills 
required by in-demand industries. Instead of separate stand-
alone programs, the SKILLS Act amends these provisions to 
better align with the current workforce investment system and 
requires state and local workforce investment boards to 
describe how they will serve the employment and training needs 
of refugees and entrants.
    
 Reintegration of Ex-Offenders. This program, which 
provides grants to serve repeat adult offenders and youth 
involved or at-risk of being involved in crime or violence, 
placed roughly half of participants into employment. The 
Department of Labor's program goals for 2013 do not aim to 
raise the percentages substantially, targeting just 59 percent 
of participants to enter employment. In addition, the program 
costs more than $6,681 per person, significantly more money 
than programs with similar functions. In 2009, the program 
utilized only 80 percent of its total appropriation toward 
employment and training activities, even though training is 
integral to its stated goal of helping former inmates reenter 
the workforce. Instead of a separate stand-alone program, the 
SKILLS Act requires state and local workforce investment boards 
to describe how they will serve the employment and training 
needs of ex-offenders.
    
 Second Chance Act Prisoner Reentry Initiative. 
This program, which aims to help juvenile and adult inmates 
successfully reintegrate into society, utilized only 70 percent 
of its funds to focus on employment and training activities and 
has not conducted an impact study as reported by the GAO. In 
addition, under a 2010 analysis, the Department of Justice's IG 
found the Office of Justice Programs did not adequately define 
key terms essential for determining whether program goals were 
met, did not require grantees to identify baseline recidivism 
rates needed to calculate changes in recidivism, and failed to 
analyze performance measurement data. Instead of a separate 
stand-alone program, the SKILLS Act amends these provisions to 
better align with the current workforce investment system and 
requires state and local workforce investment boards to 
describe how they will serve the employment and training needs 
of ex-offenders.
    
 Senior Community Service Employment Program 
(SCSEP). This program supports employment of older workers by 
providing part-time paid community service positions, as well 
as training for unemployed, low-income individuals age 55 and 
older. In program year 2012, it placed fewer than half of 
program participants into employment and, of those, only 65 
percent retained employment. In addition, the six-month average 
earnings for program participants were $7,000, yet it cost more 
than $6,000 to serve each participant. In January 2012, the 
Department of Labor added a new performance metric to the 
program to require grantees to measure the number of 
participants who enter into volunteer service. Though this 
metric will likely produce dramatic improvements in the 
program's performance, it is contrary to the program's goal to 
get older Americans into paid positions. Finally, the 
president's fiscal year 2013 budget proposal requests to move 
SCSEP to the Department of Health and Human Services' (HHS) 
Administration on Aging, confirming the administration's new 
focus for SCSEP on community service, not job training 
services. Instead of a separate stand-alone program, the SKILLS 
Act requires state and local workforce investment boards to 
describe how they will serve the employment and training needs 
of dislocated and older workers.
    
 Supplemental Nutrition Assistance Program (SNAP) 
Employment and Training. This program, which supports 
employment and training for SNAP (formerly Food Stamps) 
participants, includes job search, resume assistance, job 
training, and work experience, all of which are duplicative of 
the activities funded under the existing workforce investment 
system. Nearly 43 million individuals receive SNAP benefits, 
making a large share of low-income families eligible for 
employment and training services. In 2009, however, only 6.8 
percent of eligible recipients participated in the SNAP 
Employment and Training program. Since 2008, federal law has 
required the Secretary of Agriculture to monitor the 
effectiveness of state SNAP Employment and Training programs. 
In 2012, the administration finally proposed establishing a 
standard set of measurements and requiring annual reporting. 
However, the rule will not be effective until fiscal year 2015, 
essentially permitting seven years without performance 
outcomes. Additionally, current regulations allow participants 
to be reimbursed under SNAP Employment and Training for costs 
relating to job retention, including driver education, testing 
fees, and union dues. This is an attempt by the administration 
to support its Big Labor agenda. There is no time limit on how 
long SNAP Employment and Training programs and benefits can be 
provided, essentially allowing individuals to ``look'' for a 
job on the government's dime for an indefinite period of time. 
Instead of a separate stand-alone program, the SKILLS Act 
amends these provisions to better align with the current 
workforce investment system and requires state and local 
workforce investment boards to describe how they will serve the 
employment and training needs of low-income individuals, 
including recipients of public assistance.
    
 Veterans' Workforce Investment Program. This 
program, which provides services to assist with reintegrating 
eligible veterans into employment, duplicates the efforts of 
the larger WIA programs that provide funds to aid state and 
local areas in administering workforce development activities. 
Under current law, veterans receive priority service at local 
One-Stop career centers for employment and training services. 
In fiscal year 2011, the Secretary of Labor repurposed this 
program to provide services that lead to green jobs as outlined 
under the Green Jobs Act, which is currently under 
investigation by the IG for poor job placement results. In 
addition, the president's 2013 budget request proposes to 
eliminate the program, citing growing costs and limited 
participant placement. Instead of a separate stand-alone 
program, the SKILLS Act requires state and local workforce 
investment boards to describe how they will provide employment, 
training, and placement support services to veterans.
    
 WIA Adult Program. This program, which provides 
funds to state and local workforce investment boards to serve 
individuals ages 18-72 with employment and job training 
services, has had a poor record of training participants for 
in-demand jobs. According to the Department of Labor's WIASARD 
2011 report, which is a more detailed annual analysis, only 
134,000 individuals between April 1, 2011 and March 31, 2012, 
received training services, and only 58 percent of those 
individuals received a credential. In addition, 28 percent of 
individuals who received and completed services were also 
counted as being enrolled under the WIA Dislocated Workers 
program. The Department of Labor claims it ``served'' more than 
6.6 million adults under this program between April 2011 and 
March 2012; yet according to the more detailed analysis that 
number is closer to 1.2 million. Out of the 1.2 million 
individuals who exited the program during the previous year, 
fewer than half entered employment after the first quarter and 
only 268,000 retained employment in the second and third 
quarters.
    
 WIA Dislocated Workers. This program, which 
provides funds to state and local workforce investment boards 
to serve individuals ages 18-72 whose jobs have been terminated 
or who have been laid off, has poor results and a poor track 
record of training individuals for employment. According to the 
Department of Labor's WIASARD 2011 report, which is a more 
detailed annual analysis, only 120,000 individuals between 
April 1, 2011 and March 31, 2012 received training services. In 
addition, 46 percent of individuals who received and completed 
services under this program were also counted as being enrolled 
under the WIA Adult Program. The Department of Labor claims it 
``served'' more than 1.1 million dislocated workers under this 
program from April 1, 2011 to March 31, 2012. According to the 
more detailed analysis, the number is closer to 761,000. Out of 
the 639,000 individuals who exited this program during the 
previous year, only 343,000 entered employment after the first 
quarter and only 129,000 retained employment in the second and 
third quarters. Instead of a separate stand-alone program, the 
SKILLS Act requires state and local workforce investment boards 
to describe how they will serve the employment and training 
needs of unemployed workers, including displaced homemakers.
    
 WIA National Emergency Grants. This national 
program, which provides funding to state and local workforce 
investment boards to assist them in responding to significant 
dislocation events, is duplicative of the underlying activities 
funded under statewide employment and training activities. 
Under current law, states are required to reserve a portion of 
their funds to carry out Rapid Response activities to help 
dislocated workers and employers respond to layoffs and other 
major events affecting state and local areas. The SKILLS Act 
allocates additional money to the state and local level, giving 
officials on the ground the ability to quickly respond to 
emergencies. The bill also requires the Secretary of Labor to 
reserve 3.5 percent of the Workforce Investment Fund to assist 
states and local areas in the case of a natural disaster.
    
  WIA Pilot and Demonstration Projects. This 
program, which funds national pilot, demonstration, and 
research projects, allows the Secretary of Labor to fund the 
administration's priorities. Past projects funded under this 
section of the law have included the Workforce Innovation Fund 
and the Green Jobs Act. Under current law, a ``gold standard'' 
evaluation was supposed to be conducted more than ten years ago 
to evaluate WIA programs. The Department of Labor now claims 
this study will not be completed for another four years. The 
Obama Administration's fiscal year 2013 budget proposes the 
elimination of the program.
    
  WIA Youth Activities. This program, which 
provides disadvantaged youth ages 16-21 with education 
attainment, job training, and employment services, has inflated 
performance data and a poor track record of helping at-risk 
youth obtain the occupational skills necessary for full-time 
employment. The Department of Labor claims it ``served'' more 
than 258,000 youth under this program between April 1, 2011 and 
March 31, 2012. According to the Department of Labor's WIASARD 
2011 report, which is a more detailed analysis, the number is 
closer to 128,000. Of those who exited the program, only 35,000 
participants were placed in employment and only 13,000 were 
placed in education. According to GAO, five federal programs 
provide employment and training services to disadvantaged youth 
at a cost of nearly $4.1 billion. Collectively, the federal 
government operates more than 50 major federal programs for 
youth. States, counties, cities, school districts, and 
nonprofits also operate programs focused on improving outcomes 
for disadvantaged youth. Because of the fragmentation of youth 
programs at the national, state, and local levels, federal 
youth programs lack any type of coordination with state or 
local programs, provide many of the same services, and share 
similar goals. Instead of a separate stand-alone program, the 
SKILLS Act requires state and local workforce investment boards 
to describe how they will serve the employment and training 
needs of youth, including out-of-school youth and at-risk 
youth.
    
  Women in Apprenticeship and Nontraditional 
Occupations (WANTO). This program, which promotes the 
recruitment, training, employment, and retention of women in 
apprenticeship and nontraditional occupations, was proposed for 
elimination under the president's fiscal year 2013 budget 
request. The administration found the WANTO program is too 
small to have a meaningful bearing on the number of women 
participating in registered apprenticeship programs, and grants 
are given to small community-based organizations that are 
unable to directly report performance results. In program years 
2009 and 2010 combined, six grantees had a target of 300 
placements into registered apprenticeships, yet only 60 
placements were made. In addition, the program is duplicative 
of the larger Registered Apprenticeship program. Instead of a 
separate stand-alone program, the SKILLS Act requires state and 
local workforce investment boards to describe how they will 
serve the employment and training needs of individuals training 
for nontraditional employment.
    
  Workforce Innovation Fund. This program, which 
provides funds to state and local areas for ``innovative'' 
employment and training activities, duplicates the efforts of 
the larger WIA programs that provide funds to state and local 
workforce investment areas to carry out workforce development 
activities. As the program was created through the 
appropriations process and is still in its infancy, it has no 
proven results despite costing taxpayers close to $200 million. 
Instead of a separate stand-alone program, the SKILLS Act 
allows states to use employment and training funds to provide 
incentive grants to local areas for exemplary performance on 
local performance measures and grants states wide latitude to 
develop and administer workforce programs.
    
  YouthBuild. This program, which aims to help at-
risk youth ages 16 to 24 obtain a general educational 
development (GED) or high school diploma as well as attain 
skills in the construction industry, has poor results. As of 
March 31, 2010, the Department of Labor reported fewer than 
half of the enrolled participants complete or ``exit'' the 
program (12,483 enrollees compared to 5,975 exiters). The 
program has also not met its performance goals for placement or 
retention. Slightly more than 40 percent of youth who exited 
the program were placed in jobs or other educational programs 
compared to the goal of 70 percent. Only 64 percent of those 
who attained placement retained employment or stayed in school 
compared to the goal of 75 percent. The cost per participant in 
the program has increased by more than 50 percent over the last 
two years. In 2010, the program served only 9,847 youth at a 
cost of $10,409 per participant. The department estimates the 
number of youth served by the program in 2012 will decline to 
5,210, resulting in a cost of $15,300 per participant. In 
contrast, other youth programs are a fraction of the cost.
    The Department of Labor's IG estimates 20 percent of 
participants served by the program may be ineligible to 
participate, and $5.7 million of direct program costs were 
expended on these potentially ineligible participants. Also, 
the IG determined the department lacks effective grantee 
oversight; seven grantees could not demonstrate that they met 
the 25 percent matching funds requirement, 10 grantees enrolled 
ineligible youth, and 140 participants did not earn industry-
recognized credentials due to two grantees not providing any 
type of certification to students after completing training. 
According to the GAO, five federal programs provide employment 
and training services to disadvantaged youth at a cost of 
nearly $4.1 billion. Collectively, the federal government 
operates more than 50 major federal programs for youth. States, 
counties, cities, school districts, and nonprofits also operate 
programs focused on improving outcomes for disadvantaged youth. 
Because of the fragmentation at the national, state, and local 
levels, federal youth programs lack any type of coordination 
with state or local programs, provide many of the same 
services, and share similar goals. Instead of a separate stand-
alone program, the SKILLS Act requires state and local 
workforce investment boards to describe how they will serve the 
employment and training needs of youth, including out-of-school 
youth and at-risk youth.
    
  Youth Opportunity Grants. This program, which 
aims to increase the long-term employment of youth who live in 
high-poverty areas with education attainment, employment, and 
training assistance, has not been funded since 2003.
    
  21st Century Workforce Commission. The Workforce 
Investment Act of 1998 established and directed the 21st 
Century Workforce Commission to issue recommendations to the 
president and Congress within six months on the skill needs of 
the information technology workforce. The commission first met 
on November 16, 1999 and issued its final report with 
recommendations by May 16, 2000. The SKILLS Act repeals the 
authorizing language for the commission since it has completed 
its mission.
    Five additional programs are consolidated in the vocational 
rehabilitation program outlined under Title V of the Act.

State and local workforce investment board membership

    The bill amends the membership requirements of state and 
local workforce investment boards to ensure the system is 
demand-driven and closely linked to employers.
    Under current law, state and local workforce boards must 
adhere to a number of federal mandates, almost 40 in total, 
dictating everything from how many people must serve on the 
board to who nominates each of the representatives. As a 
result, many of the current workforce board representatives are 
government employees administering federally-funded programs. 
This federal interference in local decision-making has caused 
workforce boards to become bloated and unwieldy, making 
strategic planning difficult and limiting a board's ability to 
respond quickly to changing workforce and industry needs.
    During the hearing on February 26, 2013, entitled, 
``Putting America Back to Work: Reforming the Nation's 
Workforce Investment System,'' Todd Gustafson, Executive 
Director of Michigan Works! Berrien-Cass-Van Buren, explained 
the need for a streamlined board and increased business 
leadership:

          ``For boards to have the greatest strategic impact 
        and productivity they have to be business led and be a 
        manageable size. Locally run and accountable boards 
        governed by the end-user of the system, business, make 
        the system more responsive, innovative, and less 
        bureaucratic. Eliminating the 19 federal mandates on 
        representation will further strengthen business 
        engagement. Requiring two-thirds of board members to be 
        employers will enhance the shift from a supply side 
        designed system to a demand or market driven system. 
        Mandating board representation stifles board member 
        recruitment and often forces the creation of large 
        unmanageable and unengaged boards. Eliminating mandates 
        will also help attract higher caliber local business 
        and community leaders who otherwise feel disempowered 
        and ultimately uninterested among a large unfocused 
        group. Smaller boards are a best practice in both the 
        private for-profit and non-profit sectors and should be 
        applied to the government's workforce system.''

    With a growing skills gap standing between workers and 
available job opportunities, the workforce investment system 
must reflect the expertise and needs of the nation's job 
creators. H.R. 803 strengthens the role of employers by 
requiring a two-thirds business majority on both state and 
local workforce investment boards and removing nearly all 
federal requirements on board membership. This dramatically 
reduces the size of the boards, making them more manageable and 
focused on strategic decisions.
    Similar to current law, governors would retain the right to 
expand state board membership beyond business and economic 
development representation and chief elected officials. Chief 
elected officials would retain the authority to appoint local 
board membership beyond business representation. Such members 
could include members of the state legislature and 
representatives of youth organizations, community colleges, 
community-based organizations, veterans' service organizations, 
and One-Stop partners.

State workforce investment board functions and state plans

    The SKILLS Act amends the required functions of state 
workforce investment boards. It requires states to review and 
develop statewide policies and programs that support a 
comprehensive statewide workforce development system, including 
determining whether the state should consolidate additional 
programs into its Workforce Investment Fund. State boards are 
also tasked with developing strategies across local areas that 
meet the needs of employers and support economic growth in the 
state, identifying and disseminating information on best 
practices for effective operation of One-Stop centers, and 
ensuring the appropriate use of funds for statewide employment 
and training activities.
    H.R. 803 eliminates the grandfathering provisions that 
allow states to use entities in existence prior to the 
enactment of the Workforce Investment Act of 1998 in place of 
state workforce investment boards. The committee notes state 
boards are an important component of the reforms underlying 
WIA, and this change is intended to ensure state boards, with 
their enhanced functions, are established and business-driven. 
The bill also allows the state board to hire staff to assist in 
carrying out its functions.
    The legislation also revises the WIA planning cycle to 
require state plans be submitted every three years instead of 
every five years. This is intended to ensure state plans are 
dynamic documents that are regularly updated to reflect 
changing economic situations and state and local priorities. 
The committee believes this change will not create an undue 
burden on states because the submission of a new plan simply 
requires reviewing and updating the previous plan if 
significant changes are not warranted.
    While creating a more simple and universal structure, the 
committee believes the workforce development system must meet 
the needs of certain populations. Therefore, H.R. 803 requires 
states to develop targeted plans to serve special populations, 
including dislocated workers, low-income individuals, English 
learners, homeless individuals, individuals training for 
nontraditional employment, youth, older workers, ex-offenders, 
migrant and seasonal farmworkers, refugees and entrants, 
veterans, Native Americans, and long-term unemployed 
individuals, including those who have exhausted state and 
federal unemployment compensation.
    The committee recognizes the obligation states have in 
providing services to individuals with disabilities in a manner 
consistent with the requirements of civil rights laws, such as 
the Americans with Disabilities Act and sections 504 and 508 of 
the Rehabilitation Act of 1973. These laws are crucial to 
protecting the rights of individuals with disabilities to 
participate fully in society. In H.R. 803, the committee 
reaffirms this obligation by including requirements for state 
plans to ensure the rights of individuals with disabilities are 
protected and reasonable accommodations are provided so these 
individuals can fully participate in the programs and services 
supported under this Act.
    As a condition of receiving funds, state workforce 
investment boards are required to detail the strategies and 
services that will be used to help at-risk youth and out-of-
school youth acquire the education, skills, credentials, and 
employment experience necessary to succeed in the workplace. 
These services include: training and internships in in-demand 
industries, dropout recovery activities designed to lead to the 
attainment of a regular high school diploma, and activities 
combining remediation of academic skills and work experience 
with linkages to postsecondary education.
    The committee seeks to make the entire workforce investment 
system more demand-driven and responsive to the needs of 
employers. By doing so, the workforce system will train workers 
for in-demand jobs. H.R. 803 requires states to include in 
their plans a description of any programs and strategies they 
will utilize to meet the needs of all businesses, including 
small businesses. These include convening industry or sector 
partnerships to address the immediate and long-term skill needs 
of the workforce and the needs of small businesses. The 
committee notes that, while strategic planning and delivery of 
services most appropriately belongs with local areas, the One-
Stop delivery system created under WIA would be improved with 
greater continuity of services within states. As a result, H.R. 
803 includes new functions for the state board regarding 
statewide policies for the One-Stop career center system. These 
include the development of criteria for and issuance of 
certifications of One-Stop centers, allocation of One-Stop 
infrastructure funding, and approaches to facilitating 
equitable and efficient cost allocation in the One-Stop 
delivery system. The establishment of state-level criteria for 
One-Stop centers should lead to better, more consistent 
performance within states.

Local workforce investment board functions and local plans

    The committee strongly supports the governance structure of 
local control embodied in the Workforce Investment Act. The 
committee believes important employment and training decisions 
are best developed and administered at the local level, closest 
to the business community and workers. H.R. 803 maintains this 
important concept by driving more authority and funding to 
local workforce investment boards. At the same time, the 
legislation recognizes the nation's workforce development 
system must change if it is to remain relevant and responsive 
to our economic challenges.
    While states are permitted to engage in regional planning 
and cooperation among local areas that serve a single labor 
market area, economic development region, or other appropriate 
contiguous sub-area of a state, the law's grandfathering 
provision stifles such innovation. This clause allows local 
areas in existence prior to 1998 to remain in existence, which 
has prevented many states from developing a workforce 
investment system that best correlates with their regional 
economy. H.R. 803 repeals the grandfather clause and allows 
governors to designate local workforce investment areas based 
on a series of considerations that align these areas with 
economic development and regional labor markets.
    As President and Chief Executive Officer (CEO) of Workforce 
Florida Inc., Chris Hart outlined in his testimony during the 
February 26, 2013 subcommittee hearing entitled, ``Putting 
America Back to Work: Reforming the Nation's Workforce 
Investment System'':

          ``The SKILLS Act proposes important changes that 
        facilitate regional alignment of markets and resources 
        rather than forcing the acceptance of the status quo. 
        It also strengthens the authority of governors to 
        designate the boundaries of workforce areas. We agree 
        and support these provisions--The SKILLS Act will allow 
        our state and others to accelerate innovative, market-
        responsive strategies for even higher performance and 
        results aimed at improving our nation's talent 
        competitiveness.''

    Under H.R. 803, local boards are required to conduct a 
workforce needs analysis of their region, which will aid in 
determining the industries that are hiring and growing, as well 
as the types of skills and training needed to meet that demand. 
The bill requires local boards to use this analysis to reserve 
a certain percentage of funds for training. This provides local 
areas with the flexibility and the authority to determine their 
own region's priorities while quickly reacting to the workforce 
training needs of area residents. For far too long, our 
nation's workforce investment system has not focused adequate 
resources on direct training services to unemployed and 
underemployed workers. Only 14 percent of WIA participants 
actually receive and complete training services that can 
provide the important skills necessary to succeed in the 
workplace. This provision ensures local boards are targeting 
funding to training individuals for in demand occupations and 
preparing workers for the jobs of today and tomorrow.
    Similar to the state plan requirement, H.R. 803 requires 
local areas to include in their plans a description of the 
strategies and services that will be initiated in the local 
area to engage employers in workforce development activities to 
ensure local workforce investment activities remain demand-
driven and responsive to changing employer needs. The bill 
requires local areas to engage small employers, as well. The 
bill requires local boards to develop industry-sector 
partnerships to better coordinate and align resources. The 
committee encourages local areas to initiate other employer-
focused efforts such as career ladder programs, utilization of 
business intermediaries, and coordination with economic 
development activities. These strategies and many others could 
help local areas ensure the One-Stop system contributes to the 
economic growth of local areas.
    Current law requires each local area to have a youth 
council to advise the local board on activities related to 
youth. The committee understands these councils have been 
ineffective in some areas and burdensome to create and operate. 
Maintaining participation by parents, youth, educators, and 
other groups has proven difficult. The committee believes local 
areas should have the option to create such councils if they 
add value and benefit services to youth in the area.
    Under WIA, states have the authority to use entities in 
existence prior to the enactment of WIA in place of local 
boards. This grandfathering provision is repealed under H.R. 
803 to ensure the most effective local boards are in place. 
Further, the local workforce investment planning cycle is 
reduced from five years to three years to be consistent with 
the state planning cycle and to promote using the plan to 
address changing economic circumstances and priorities.
    Just as states are required to describe in their plans how 
they will address the needs of individuals with disabilities 
consistent with civil rights laws, local areas also must 
provide services to individuals with disabilities in a manner 
consistent with the requirements of civil rights laws, such as 
the Americans with Disabilities Act and sections 504 and 508 of 
the Rehabilitation Act of 1973. To that end, the bill includes 
the same requirement for local plans as for state plans.
    Similarly, local boards are required to address in their 
plans how they will serve at-risk and out-of-school youth in 
acquiring the education and skills, credentials, and employment 
experience necessary to succeed in the workforce. The committee 
encourages local areas to develop strategies that focus on high 
school dropout recovery efforts and attainment of regular 
secondary school diplomas. Local boards are also required to 
develop targeted plans to serve special populations, including 
dislocated workers, low-income individuals, English learners, 
homeless individuals, individuals training for nontraditional 
employment, youth, older workers, ex-offenders, migrant and 
seasonal farmworkers, refugees and entrants, veterans, Native 
Americans, and long-term unemployed individuals, including 
those who have exhausted state and federal unemployment 
compensation.
    The committee recognizes our nation's economy is dynamic, 
and the types of growing industries are constantly changing. 
While a number of select industries, such as health care, are 
in-demand in most communities across the country, the decision 
on what industries are best suited for a particular state or 
local area and what professions workers should be encouraged to 
pursue should remain with state and local leaders.

One-stop delivery system

    One of the hallmarks of the workforce development system is 
the approach that encourages the development of comprehensive 
efforts to improve services for employers and job seekers. This 
effort seeks to increase access to federal and state resources 
available to help individuals obtain the training of their 
choice at one centralized location.
    Currently, 19 federal programs operate as mandatory partner 
programs within the One-Stop delivery system. In addition to 
the programs authorized under Title I of WIA, the programs 
include career education, veterans' employment and training 
programs, welfare-to-work, employment services, vocational 
rehabilitation, trade adjustment assistance, and adult 
education, to name a few. H.R. 803 adds the Temporary 
Assistance for Needy Families (TANF) program as a mandatory 
partner in the One-Stop Career Center system. All of these 
programs must make their services available through the One-
Stop centers. In addition, optional partner programs may 
provide their services through the system if the local board 
and the chief elected official for the area permit the 
inclusion and the partner program agrees to such participation.
    H.R. 803 removes from the mandatory One-Stop partner list 
those programs that are consolidated into the main Workforce 
Investment Fund. The bill includes additional optional partner 
programs, such as employment and training programs operated by 
the Small Business Administration, employment and training 
services provided by public libraries, and programs serving 
individuals with disabilities. The addition of these programs 
enhances opportunities to coordinate employment and training 
services, particularly for special populations.
    Under H.R. 803, provisions regarding the establishment of 
One-Stop delivery systems are moved from Chapter 5 
(Comprehensive Adult Employment and Training Activities) to 
what is now Subtitle B (Statewide and Local Workforce 
Investment Systems) so as to reinforce the creation of a One-
Stop delivery system independent of WIA employment and training 
funds. Incorporating these provisions in the general workforce 
investment system subtitle is intended to clarify the 
requirements applicable to the One-Stop delivery system.
    The One-Stop centers across states have not provided 
consistent services to consumers, whether job seekers or 
employers. Therefore, H.R. 803 requires all One-Stop operators 
to be designated through a competitive process, removing the 
provision that allows three or more One-Stop partners to form a 
consortium to operate a center, and infusing higher quality 
operators throughout the system. In addition, the bill calls on 
the state board to establish procedures and criteria for 
certifying One-Stop centers and issue certifications based on 
those procedures and criteria. The criteria include state-
developed minimum standards relating to the scope and degree of 
service integration achieved by the centers involving the 
programs provided by the One-Stop partners. The effect of 
certification is to make One-Stop centers eligible for 
infrastructure grants. The intent of the certification process 
is to promote consistency and quality in the services provided 
by One-Stop centers in a state. No One-Stop is required to 
obtain certification, and local boards retain authority over 
the identification of One-Stop operators.
    Under current law, One-Stop centers must provide access to 
the programs and activities carried out by partner programs. 
Each partner must make available to clients the core services 
applicable to their program. There must be at least one 
comprehensive One-Stop center in each local area, which can be 
supplemented through a network of affiliated sites if the 
mandatory partners do not fully co-locate. One-Stop partner 
programs are required to contribute a portion of their funds 
for the operation of the One-Stop delivery system. The 
appropriate portion is to be determined through the Memorandum 
of Understanding (MOU) development process at the local level. 
However, this process has resulted in uncertainty of funding 
and contention among program operators and has forced WIA 
funding streams to pay for a large share of infrastructure 
costs, thus reducing funds available for training.
    In order to provide a stable source of infrastructure 
funding on a statewide basis, H.R. 803 requires each of the 
One-Stop partner programs to provide a portion of program funds 
to the governor, who then will allocate such funds to the local 
areas for the certified One-Stop centers in the state. The 
portion of funds to be provided by each One-Stop partner will 
be determined by the governor in consultation with the state 
board. The committee believes the decision on the amount of 
such funding is best determined within each state depending on 
each state's needs and delivery systems, and arbitrary limits 
or floors should not be established at the federal level.
    When determining the amount of contribution from each 
program, the governor must consider the proportionate use of 
the One-Stop centers by the programs and cost of administering 
the programs not related to One-Stop centers. The 
infrastructure funding must come from the programs' 
administrative funds and are subject to the programs' 
administrative cost limits. All mandatory partner programs, 
except vocational rehabilitation and unemployment insurance, 
have administrative caps that are either established in statute 
or negotiated as part of a grant. For instance, career and 
technical education currently has a 5 percent administrative 
cap, and veterans programs' administrative limits are 
negotiated as part of the grant. For federal mandatory spending 
programs, which include TANF and vocational rehabilitation 
services, the programs' contributions cannot be in excess of 
their proportionate use of the centers. The committee expects 
the portion of funds provided by mandatory partners for 
infrastructure costs will be a very small percentage of the 
programs' funds, proportionate to the programs' contribution to 
and use of the One-Stop system.
    The governor is required to distribute the funds to 
certified One-Stop centers based on a formula the state board 
will develop. The formula shall include factors the state 
determines are appropriate, which may include the number of 
certified centers in a local area, the population served by 
such centers, and the centers' performance.
    While the infrastructure funding provided through these 
grants will address the primary common costs of operating One-
Stop centers, some common costs will remain. Thus, partner 
programs and local boards will continue to develop MOUs to 
specify how such costs would be paid. Remaining common costs 
include personnel and the cost of providing work ready services 
applicable to participants for each program. Since the basic 
infrastructure costs would already be addressed, these 
remaining cost items should be easier to resolve.

Providers of training services

    WIA created an eligible training provider list to give 
customers flexibility in selecting a provider that meets their 
individual training needs. However, current eligible training 
provider provisions include requirements that have proven to be 
overly burdensome with respect to the specific information 
required and the scope of the reporting (i.e. reporting 
performance outcomes for all students in a training program and 
not just WIA-funded students). Rather than increasing consumer 
choice as intended, the current requirements have had the 
unintended effect of reducing customer choice as many qualified 
providers, including community colleges, choose not to 
participate in the system.
    H.R. 803 gives states the authority to determine what 
provider information and data will be required to establish a 
list of eligible training providers. This allows for 
flexibility to design procedures that respond to the needs of 
each state. To ensure the quality of providers, states must 
establish criteria that include the performance of providers 
with respect to WIA's performance indicators. States may 
include other factors appropriate to ensure the quality of 
services and the accountability of providers, including whether 
providers of training allow participants to attain a 
certification or credential, or demonstrate mastery. In 
addition, states are required to ensure providers submit 
appropriate information to assist consumers in selecting 
training programs. Such state-developed criteria will be 
established with the input of local areas and training 
providers. The intent is to ensure the retention of key 
elements in promoting consumer choice and provider 
accountability while allowing states to simplify the process so 
more qualified training providers will participate.
    During the markup, the committee adopted an amendment 
offered by Rep. Susan Brooks (R-IN) to require workforce 
investment boards to identify those providers that are 
demonstrating the highest levels of success on performance 
indicators and deem them priority providers. This gives 
participants and local boards a more accurate picture when 
choosing training providers. In addition, the amendment allows 
state and local boards to implement pay-for-performance 
strategies to reward those providers that are consistently 
outperforming their peers.
    The committee encourages states to examine whether training 
providers offer the opportunity to obtain industry-recognized 
credentials. The committee recognizes such certifications or 
credentials may allow states to validate available training, 
and the attainment of a certification or credential may 
increase individuals' ability to find good jobs that utilize 
such training.
    The committee remains determined to protect the 
confidentiality of all personally identifiable information 
about students, and believes such information must not be 
released without appropriate permission from students or their 
parents. Therefore, H.R. 803 specifies that the new training 
provider eligibility criteria must comply with the Family 
Educational Rights and Privacy Act (FERPA).
    Certified apprenticeship programs are automatically 
qualified to serve as training providers. In addition, H.R. 803 
retains language from current law allowing governors to create 
separate requirements for providers of on-the-job training or 
customized training, since these are tailored specifically to 
one employer or occupational field.

Employment and training activities

    H.R. 803 amends Chapter 5 of WIA to establish a 
comprehensive program of employment and training activities for 
individuals age 16 and older. As discussed earlier in the 
report, the bill consolidates 35 employment and training 
programs, including the three separate WIA funding streams (WIA 
Adult, WIA Dislocated Worker, and WIA Youth) and the Employment 
Services funding stream under the Wagner-Peyser Act. These 
current programs have separate funding formulas, eligibility 
criteria, performance measures, reporting requirements, and 
other elements, though they largely serve the same populations. 
Under current law, Employment Services are to be co-located 
with One-Stop centers. However, contrary to the intent of WIA, 
some areas have retained separate Employment Services offices. 
Consequently, unnecessary duplication of services and confusion 
for customers (both job seekers and employers) has resulted. 
Consistent with the principles of program integration 
underlying WIA, the bill's consolidation proposal will simplify 
and enhance the delivery of services to adults and youth and 
allow states and local areas to tailor services to meet the 
needs of the local communities.
    H.R. 803 changes the title of Chapter 5 from ``Adult and 
Dislocated Worker Employment and Training Activities'' to 
``Employment and Training Activities''. Throughout the bill, 
references to the separate adult, dislocated worker, and youth 
funding, which are being consolidated, are eliminated to 
reflect the universal nature of the Workforce Investment Fund.
    H.R. 803 authorizes the Secretary of Labor to reserve half 
of 1 percent of the amount appropriated for the WIF to carry 
out national activities, with 50 percent to be used for 
technical assistance and 50 percent to be used for evaluations. 
The bill also authorizes the secretary to reserve up to 1 
percent of the amount appropriated to make grants to and 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 employment and training activities. These 
important programs must adhere to the common performance 
measures.
    The secretary may also reserve up to 25 percent of funds of 
the total amount appropriated to carry out the Job Corps 
program described later in this report and allows the secretary 
to reserve not more than 3.5 percent of the total amount 
appropriated to provide grants to states and local areas to 
address mass layoffs and natural disasters. The remaining 
amount would be allotted to states, with up to one-fourth of 1 
percent reserved for the provision of services in outlying 
areas.
    H.R. 803 creates a new formula to reflect the more relevant 
criteria from the funding streams consolidated into the 
Workforce Investment Fund. The formula is calculated by 
dividing equally the relative number of unemployed individuals 
in a state, the relative number of individuals in the civilian 
labor force in a state, the relative number of individuals who 
have experienced long-term unemployment of 15 weeks or more in 
a state, and the relative number of disadvantaged youth in a 
state.
    The bill also contains a provision that holds states 
harmless for three years against what they would have received 
in fiscal year 2012 for the programs under Title I of WIA; 
Title V of the Older Americans Act of 1965; the Women in 
Apprenticeship and Nontraditional Occupations Act; Sections 
4103A and 4104 of Title 38, United States Code; and Sections 1-
14 of the Wagner-Peyser Act. For states that would receive an 
increase in 2014 under the new formula, their increase is 
capped at 130 percent of the allotment percentage of the state 
for fiscal year 2012. For fiscal year 2017 and each succeeding 
year, the formula ensures states receive a minimum percentage 
that is not less than 90 percent of the previous year's 
allotment and a maximum percentage of 130 percent of the 
previous year's allotment.
    The committee notes these protections should create more 
stability in funding for states. Currently, the WIA Dislocated 
Worker funding stream has no stop-loss or stop-gain 
protections. While the formula in current law was designed to 
allow funds to flow to those states most in need, there have 
been significant shifts in funding from year to year. As a 
result, states have been unable to plan their programs 
effectively. The new provisions should reduce this instability.
    The formula also includes a small state minimum allotment 
of one-fifth of 1 percent to ensure small states have 
sufficient resources to operate a viable program. Currently, 
both the WIA Adult and Wagner-Peyser formulas include small 
state minimums.
    H.R. 803 further specifies within state allocation of 
funds. The bill authorizes governors to reserve up to 15 
percent of the state's allotment for statewide activities. H.R. 
803 has a much larger authorized level for appropriations due 
to the consolidation of programs and is comparable to the level 
of resources currently administered at the state level under 
WIA.
    Under statewide activities, states must use funds to carry 
out rapid response activities to assist local areas that 
experience disasters, mass layoffs, or other events that 
precipitate substantial increases in the number of unemployed 
individuals. States are also required to support the provision 
of work ready services for job seekers in the One-Stop delivery 
system, implement strategies and services to assist at-risk and 
out-of-school youth, and conduct evaluations of all employment 
and training services. The bill also allows states to spend 
funds on implementing innovative programs to meet the needs of 
employers, including incumbent worker training and 
entrepreneurial training; developing strategies for integrating 
programs and services among One-Stop partners; facilitating 
access to remote areas through the use of technology; and 
incorporating pay-for-performance contracting strategies as an 
element in funding employment and training activities. The bill 
also retains the current law limitation on state administrative 
expenses, which are not to exceed 5 percent of the governor's 
set aside.
    Further, governors must reserve 15 percent of their state 
set aside funds to award competitive grants to eligible 
entities assisting individuals with barriers to find and retain 
full-time, unsubsidized employment. This new reservation 
provides additional support to local areas to assist hard-to-
serve individuals (ages 16 and older) in obtaining a regular 
secondary school diploma or its recognized equivalent, 
industry-recognized credentials, postsecondary training, and 
employment. The committee believes that, rather than creating 
separate national programs, priorities, and funding streams for 
particular individuals or groups, states should be given the 
flexibility and decision-making power to prioritize funds 
towards the individuals most in need in their communities. 
Unlike the current system in which only a handful of national 
programs targeted to special populations have been evaluated, 
H.R. 803 requires states to evaluate employment and training 
programs, making it easier for the public to learn whether 
programs are helping workers find a job.
    The remaining overall state allotment is to be allocated to 
local areas within the state. Under the bill, the same formula 
used to distribute funds to states is used to distribute funds 
to local areas, including the stop-loss and stop-gain 
provisions described earlier to stabilize funding. H.R. 803 
also retains the current administrative cost limit under which 
local areas may not expend more than 10 percent of the 
allocation for administrative costs. The legislation adds a new 
definition of ``administrative costs'' which includes 
expenditures incurred by state and local workforce investment 
boards, direct recipients, local grant recipients, local fiscal 
agents or local grant sub recipients, and One-Stop operators in 
the performance of administrative functions and in carrying out 
activities which are not related to the direct provision of 
workforce investment services (including services to 
participants and employers). The bill also requires states and 
local areas to report on the percentage and dollar amount spent 
on administrative costs annually.
    Under current law, both WIA and the Wagner-Peyser Act 
provide funds for services to connect job seekers with 
available jobs, including job search and placement assistance. 
Regardless of income, all individuals are eligible to receive 
these services. Many One-Stop career centers offer such 
services through self-serve computer stations. Under WIA, these 
are called ``core services'' while under Wagner-Peyser they are 
called ``labor exchange services.'' Although each law has a 
different term, the services are essentially the same. Through 
WIA, two other levels of services also are provided. 
``Intensive'' services include comprehensive assessments, case 
management and one-on-one career counseling, short-term 
prevocational services, and more. ``Training'' services include 
occupational skills, on-the-job, entrepreneurial, customized, 
and other training. Under current law, an individual must 
utilize at least one service in each level before moving on to 
the next level of service. While there is no federally required 
minimum time period for participation in core and intensive 
services before one can access training assistance, some states 
have interpreted current law as requiring all participants to 
participate in core services for a specified period of time 
before becoming eligible for intensive services, and likewise 
requiring intensive services before training. This has 
sometimes resulted in denied or delayed services, and limited 
the flexibility of states and local areas to tailor services to 
meet individual needs.
    To address these issues regarding the ``sequencing of 
services,'' H.R. 803 combines core and intensive services into 
a new ``work ready'' set of services, effectively nullifying 
the eligibility requirements for proceeding onto the next level 
of services if an individual is determined to be in need of 
those services. The bill incorporates two functions 
specifically identified in the Wagner-Peyser Act to the list of 
allowable work ready services: appropriate recruitment services 
for employers and the administration of the work test for the 
unemployment compensation system. Additional new services are 
added to the list, including internships and work experience; 
literacy activities relating to basic work readiness, 
information and communication technology, and finances; and 
out-of-area job search and relocation assistance. The committee 
believes allowing literacy activities to be provided as a work 
ready service, not just a training service, will increase 
access to such services for those who need them. The committee 
also recognizes nearly all job seekers need to know how to 
find, use, manage, and evaluate information resources 
efficiently. The committee encourages One-Stop centers to offer 
opportunities to acquire skills in the area of communication 
technology literacy.
    Among the types of entities local boards may contract with 
to provide work ready services are public non-profit service 
providers. The committee notes this language from current law 
should not be construed as limiting eligibility to non-profit 
entities that exist solely to provide these types of services. 
In particular, the committee notes a wide variety of non-profit 
entities that may have broader missions, but have the capacity 
to leverage funds received through local workforce boards, such 
as public libraries. The committee encourages local areas to 
consider creating relationships with entities such as libraries 
when they already are providing similar services.
    The committee also recognizes private-sector employment 
agencies play an important role in providing employment 
opportunities to America's workforce. The committee encourages 
local boards and One-Stop operators to refer to and contract 
with such firms. This will enhance the ability of local boards 
and One-Stop operators to make job placements, especially to 
businesses that do not traditionally use One-Stop services to 
fill vacancies.
    The committee aims to address the unique training needs of 
individuals who are English learners. H.R. 803 allows 
occupational skills training to be combined with English 
language acquisition. Integrated training programs that provide 
language instruction in the context of job training have 
demonstrated remarkable employment outcomes for job seekers and 
positive results for employers. These enhancements to training 
opportunities should increase employment for our country's 
immigrant populations.
    Under current law, the adult funding stream serves all 
adults but prioritizes low-income individuals. H.R. 803 removes 
the priority of service in the rewrite of the Workforce 
Investment Fund. One of the hallmarks of the workforce 
investment system is that it is a universal access program in 
which any American in need of employment and training services 
can receive the education and skills he or she needs to get a 
job. Under the bill, states and local areas must detail how 
they will serve the needs of all individuals, including low-
income individuals, dislocated workers, English learners, and 
veterans, among others. Instead of setting artificial limits on 
who should receive training, the bill aims to increase the 
amount of training for everyone and allows state and local 
leaders to determine who is most in need in their community.
    Training is currently provided primarily through 
``individual training accounts,'' or ITAs. Individuals that 
receive an ITA voucher can choose training courses available 
through eligible training providers. The committee believes 
local areas should have the flexibility to combine funds 
available for training under WIA with other training resources. 
Therefore, H.R. 803 authorizes local areas to assist 
participants in enhancing these accounts so funds from other 
sources may be included and renames them ``career enhancement 
accounts.'' This is intended to facilitate the acquisition of 
training and maximize the number of individuals who obtain 
training.
    H.R. 803 permits local boards to award contracts to 
institutions of higher education identified as priority 
eligible training providers to facilitate the training of 
multiple individuals in in-demand industries, provided such a 
contract does not limit customer choice. This provision allows 
community colleges and other institutions of higher education, 
including proprietary colleges, to provide specialized group 
training programs designed for employers who are looking to 
hire several workers with a particular skill.
    H.R. 803 adds new activities to the current list of 
permissible activities local areas may carry out. Current 
activities include customized screening and referral services 
for employers and other customized employment-related services 
for employers on a fee-for-service basis. New allowable 
activities include providing customer supports, such as 
transportation and childcare services, for special participant 
populations that face multiple barriers to employment, 
including individuals with disabilities. These supports can 
often contribute to job retention and enhance employment. The 
committee has also learned such populations, especially 
individuals with disabilities, have not been as well served 
through the One-Stop system as Congress intended. The committee 
anticipates this additional assistance to such individuals will 
increase their utilization of the One-Stop delivery system and 
improve the quality of services they receive. In addition, 
employment and training assistance provided in coordination 
with child support enforcement activities of the state agency 
carrying out Title IV-D of the Social Security Act is also 
included as a permissible activity. This coordination is 
intended to facilitate the employment of unemployed or 
underemployed non-custodial parents, thus enabling them to pay 
child support.
    In addition, local areas may engage in activities to 
improve services to businesses, including small employers in 
the local area, and increase linkages between the local 
workforce investment system and employers. Local areas may also 
facilitate remote access to services provided through the One-
Stop delivery system, including facilitating access through the 
use of technology. This is critical to ensure rural areas are 
served adequately. Local areas may incorporate pay-for-
performance contracting strategies as an element of funding 
employment and training activities to ensure the system is not 
continuing to pay for strategies that have not demonstrated a 
record of success.
    An additional permissible activity for local areas is the 
development and implementation of incumbent worker training 
programs. Under current law, incumbent worker programs are only 
authorized at the state level. Under H.R. 803, local boards may 
provide incumbent worker training, as long as it is carried out 
in conjunction with the workers' employers for the purpose of 
helping the workers obtain the skills necessary to retain 
employment and avert layoffs. Employers participating in 
incumbent worker training programs are required to pay a 
portion of the costs of training for the incumbent workers, 
which is left up to local boards to establish. This provision 
is intended to provide some flexibility for the One-Stop system 
to respond to the needs in the local area and help prevent 
potential layoffs. The matching requirement is intended to 
ensure appropriate employer commitment to the training program.
    Local areas are required to prioritize placing participants 
into private sector jobs. The committee believes enhancing 
private sector business growth and limiting the size and scope 
of the government are the best outcomes for American workers 
and improve our country's economic outlook.
    Each One-Stop career center is also required to employ a 
veterans' employment specialist to help veterans, including 
those returning from Afghanistan and Iraq, find and retain 
employment. These specialists function similarly to the Local 
Veterans' Employment Representatives currently in many One-Stop 
centers across the country, and conduct outreach to employers 
as well as provide transition services to those military 
service men and women leaving the armed services. H.R. 803 also 
integrates the Disabled Veterans' Outreach Program into the 
Workforce Investment Fund; requires state and local areas to 
detail how they will furnish employment and training services 
to veterans, including disabled and homeless veterans; and 
requires states and the Secretary of Labor to measure and 
report on the outcomes achieved by participating veterans 
disaggregated by local communities.

Youth provisions

    According to GAO, more than 50 major programs funded by the 
federal government help at-risk youth obtain the education and 
skills necessary to succeed in the workforce. These programs 
often lack coordination and have failed to adequately improve 
outcomes for our nation's young people. H.R. 803 includes 
several important provisions to address the needs of at-risk 
and out-of-school youth. First, state and local workforce 
investment boards are required to detail the strategies and 
services that will be used to assist at-risk youth and out-of-
school youth in acquiring the education and skills, 
credentials, and employment experience to succeed in the 
workplace. Second, the Workforce Investment Fund, as well as 
the state set-aside for individuals with barriers to 
employment, has reduced age limitations from 18 to 16 years of 
age, ensuring youth are eligible for all employment and 
training activities.
    Third, local workforce boards are required to conduct a 
workforce needs analysis and direct funds based on those 
identified as most in need, which include at-risk youth and 
out-of-school youth. This provides local leaders, who know best 
the needs of the community, with flexibility and authority to 
determine their own priorities. If local officials want to use 
a significant amount of federal funds for youth employment and 
training services, they can do so.
    Finally, the secretary is required to reserve 25 percent of 
the total amount appropriated to fund a national Job Corps 
program for at-risk youth. H.R. 803 makes important reforms to 
the program, as outlined below, to ensure these young people 
are receiving high quality instruction and training to obtain 
employment and advance in careers.

Performance accountability system

    According to GAO's report that examined the multiple 
federal job training programs, only five had undergone an 
impact evaluation to determine if the program was meeting the 
needs of individuals it was slated to serve. Without a true 
picture of the effectiveness of job training programs, how can 
federal, state, and local policymakers accurately and quickly 
assist workers in finding a job, help employers hire skilled 
workers, and grow our regional economies?
    As Larry Temple, executive director of the Texas Workforce 
Commission, said during a May 11, 2011 subcommittee hearing 
entitled, ``Removing Inefficiencies in the Nation's Job 
Training Programs'':

          ``. . . [W]e need to move to an outcome driven system 
        rather than a process driven system. We need to look 
        closely at what works and what does not. We understand 
        accountability and we understand that while the process 
        is important--from the customer's perspective, what is 
        achieved at the end of the day is what constitutes the 
        measure of your work. Far too often these federal 
        programs are measured by the process, not the 
        outcome.''

    Since passage of WIA, states and local areas have raised 
concerns about the 17 statutory performance measures applicable 
to formula programs. The current performance measures have been 
perceived as excessive and overly burdensome. In addition, 
questions have been raised about the utility of certain 
federally required measures (such as customer satisfaction).
    To promote consistency in the measures applicable to 
federal employment and job training, H.R. 803 reduces the 
number of performance measures from 17 to six and applies them 
to all employment and training programs, including the Adult 
Education and Family Literacy Act provisions outlined under 
Title II of WIA and the Amendments to the Rehabilitation Act of 
1973 under Title IV of WIA.
    The core indicators of performance the committee believes 
all employment and training programs should measure include:
    
 The percent and number of program participants who 
are in unsubsidized employment for six months after exiting the 
program;
    
 The percent and number of program participants who 
are in unsubsidized employment for a full year after exiting 
the program;
    
 The median earnings of program participants six 
months after exiting the program compared to their earnings 
prior to receiving training;
    
 The percent and number of participants who obtain 
a recognized postsecondary credential, a registered 
apprenticeship, an industry-recognized credential, or a regular 
secondary school diploma or its recognized equivalent during 
participation in or within one year after exiting the program;
    
 The percent and number of participants who enroll 
in an education or training program that leads to a credential 
and are achieving measureable basic skill gains; and
    
 The percent and number of participants who obtain 
unsubsidized employment in a field related to the training 
services they received.
    Additionally, all core indicators of performance, training 
services, and discretionary One-Stop delivery services are to 
be disaggregated by the targeted populations described in the 
local plan, and states are required to maintain a central 
repository of policies related to access, eligibility, 
availability of services, and other matters approved by the 
state and local boards. The committee supports enhanced 
accountability and policies that encourage the identification 
of individuals who are not receiving adequate assistance in the 
quest to find and retain employment.
    The committee believes the customer satisfaction measure 
does not provide a uniform standard by which to evaluate 
employment and training programs on a national level. 
Therefore, the bill strikes references to the customer 
satisfaction measure. However, states are explicitly permitted 
to utilize customer satisfaction measures, and the committee 
urges states and local areas to utilize such measures to 
evaluate the effectiveness of their outreach programs and 
engage in continuous improvement.
    Currently, outcomes data is only collected for those 
individuals who register for intensive training services. 
Individuals accessing only core services are not required to 
register for such services and little information is available 
regarding the employment status of such individuals and the 
benefit of One-Stop services. By requiring all employment and 
training programs to use a common set of performance 
indicators, federal, state, and local policymakers will have an 
accurate and clear picture of which programs are working.
    Under current law, the levels of performance for each 
indicator are negotiated between the Secretary of Labor and 
each state. One concern is these negotiations do not 
sufficiently consider economic conditions and the 
characteristics of the population to be served, thus 
discouraging services to special populations. H.R. 803 replaces 
the current language with a requirement that levels must be 
adjusted based on those factors. The bill also identifies the 
kinds of economic characteristics (unemployment rates and job 
losses in particular industries) and participant 
characteristics (indicators of poor work history, lack of work 
experience, disability status, low levels of literacy or 
English proficiency, and welfare dependency) to be considered.
    Amendments to the local performance measures parallel the 
amendments made to the state performance measures. The same 
performance indicators are applied to local areas and the 
levels of performance negotiated between governors and local 
areas are required to be adjusted based on economic conditions 
and the characteristics of the population served.
    In an effort to gauge program efficiency, state and local 
areas will also report:
    
 The number of individuals who received work-ready 
and training services during the most recent program year, 
fiscal year, and the preceding five program years; as well as 
where the individuals received the training, disaggregated by 
the type of entity that provided the training.
    
 The number of individuals who successfully exited 
work-ready and training services during the most recent program 
year, fiscal year, and the preceding five program years; as 
well as where the individuals received the training, 
disaggregated by the type of entity that provided the training.
    
 The average cost per participant of those 
individuals who received work-ready and training services 
during the most recent program year, fiscal year, and the 
preceding five program years; as well as where the individuals 
received the training, disaggregated by the type of entity that 
provided the training.
    State and local performance measures will be negotiated 
every two years.
    Rebecca Metty-Burns, the executive director for the 
division of workforce and economic development at the College 
of Southern Nevada, summarized the importance of the bill's 
efforts to increase accountability in her testimony during an 
August 30, 2011 committee field hearing in Las Vegas, Nevada 
entitled, ``Examining Local Solutions to Strengthen Federal Job 
Training Programs'':

          ``Hold us accountable but have the accountability 
        make sense to the needs of the community and have 
        measurements and outcomes that reflect true progress 
        based on the competencies needed by industry.''

    The committee believes that with the new flexibility in the 
use of federal funds envisioned under H.R. 803 comes tremendous 
responsibility. In no way does this legislation constitute a 
blank check. Unlike the current workforce system in which only 
a handful of programs have been evaluated, H.R. 803 establishes 
common performance measures that will make it easier for the 
public to learn whether programs are helping workers find a 
job, and includes new provisions to ensure programs that 
demonstrate a pattern of failure lose funding.
    Under current law, the secretary may reduce state funds by 
5 percent if the state fails to meet its performance targets 
for two consecutive years. H.R. 803 requires the secretary to 
reduce state funding and returns those funds to the U.S. 
Department of Treasury. Similarly, a governor must take 
corrective action if a local area fails to meet its performance 
targets for a second consecutive year. If an area fails to meet 
performance for a third year, a governor must reduce the amount 
of the grant based on the degree of failure to meet local 
levels of performance.
    Finally, the bill requires the secretary to use the core 
indicators of performance to assess the effectiveness of 
mandatory partner programs carried out by the Department of 
Labor. This action must be consistent with the requirements of 
the applicable authorizing laws of those programs.

Authorization of appropriations

    H.R. 803 authorizes appropriations for the Workforce 
Investment Fund for fiscal years 2014 through 2020. The 
committee authorizes $6,245,318,000 for fiscal year 2014 and 
each of the six succeeding fiscal years. This amount is equal 
to the appropriated amount for fiscal year 2012 for Title I of 
WIA; Title V of the Older Americans Act of 1965; Sections 1-14 
of the Wagner-Peyser Act; the Women in Apprenticeship and 
Nontraditional Occupations Act; and Sections 4103A and 4104 of 
Title 38, United States Code;

Job Corps Program

    The committee believes the Job Corps program is in dire 
need of reform. Created in 1965 to provide at-risk youth with 
academic instruction toward the achievement of a high school 
diploma or GED and career training, the program has failed to 
help disadvantaged youth find employment while spending 
billions in limited taxpayer dollars. Through a series of 
investigations conducted over the last four years, the 
Department of Labor's IG found the program's performance data 
is often inflated and unreliable, accused Job Corps centers and 
their operators of mismanaging federal funds and ignoring 
unhealthy and unsafe living conditions for youth, and 
discovered little federal funding was spent to support worker 
training. In addition, the Department of Labor has recently 
announced that the program incurred a $39 million budgetary 
shortfall in program year 2011 and is facing a $60 million 
shortfall in program year 2012. The Obama Administration agrees 
Job Corps is in need of restructuring. The Department of 
Labor's FY 2013 Budget Justification includes the following:

          ``The 2013 Budget launches a reform effort for Job 
        Corps to improve its outcomes and strengthen 
        accountability. Specifically, the Department will close 
        in Program Year 2013 a small number of chronically low-
        performing Job Corps centers, selected using specific 
        criteria that will be shared with the public in 
        advance. While most centers meet program standards, 
        some centers are chronically low-performing based on 
        their educational and employment outcomes, and have 
        remained in the bottom cohort of center performance 
        rankings for many years. Given the resource 
        intensiveness of the Job Corps model, it is not cost-
        effective to continue to invest in centers that have 
        historically not served students well.''

    At a time when the youth unemployment rate continues to 
rise, the committee supports efforts to revamp Job Corps to 
ensure at-risk youth become more employable, responsible, and 
productive citizens.
    Over the last decade, Job Corps has undergone a number of 
evaluations to measure its effectiveness. Many reports found 
the program's benefits to society (e.g. reduced crime and drug 
use and increased attainment of GEDs) outweigh its program 
costs. However, these studies also showed program participation 
did not substantially increase earnings, and was ineffective in 
moving participants into full-time employment. H.R. 803 
restructures the current program to ensure career and technical 
education and training is geared toward in-demand occupations 
and disadvantaged youth receive a regular secondary school 
diploma and/or a recognized postsecondary credential that 
prepares individuals for employment in the global economy.
    According to the Department of Labor's 2011 Annual 
Performance Report, only 66 percent of Job Corps participants 
entered employment or enrolled in training or postsecondary 
education in 2009. In fact, the program's placement rate, along 
with actual student enrollment, has been on a steady decline 
since 2004. A recent IG audit also found Job Corps lacked 
reliable performance metrics. Among other things, the audit 
found the program inaccurately reported 42.3 percent of its job 
placements, claiming as a ``success'' those instances in which 
students were enrolled in postsecondary education or training 
rather than jobs, and in jobs that required little or no 
previous work-related skills, such as fast food cooks and 
dishwashers. H.R. 803 establishes a new performance 
accountability and management system under which each center 
must calculate and report on the number and percent of 
enrollees who graduate (defined based on the program's new 
goals) from the center; the percent and number of graduates who 
enter unsubsidized employment related to the training the 
participant received through the center; and the cost per 
successful performance outcome. Similar to current law, the 
bill requires the secretary to annually rank the performance of 
each center and to develop and carry out an improvement plan 
for low-performing centers.
    As President Obama has stated, a number of Job Corps 
centers have consistently ranked in the bottom tier of Job 
Corps centers nationally. With the federal government running 
trillion dollar deficits and the Job Corps program running a 
$100 billion budget shortfall, the committee must ensure 
limited taxpayer dollars are dedicated to programs that work. 
H.R. 803 requires the secretary to evaluate the performance of 
Job Corps centers and rank them annually. If a center has 
consistently performed in the bottom 10 percent for four 
consecutive years, then the secretary must close those centers. 
Students in closed centers will have priority placement in a 
neighboring center, and resources will be reinvested in the 
program.
    According to recent IG audits, there is widespread 
mismanagement of federal funds and safety and health concerns 
by Jobs Corps operators. H.R. 803 requires all current grantees 
to re-compete for funding to operate Job Corps centers. The 
bill creates a detailed application in which grantees must 
describe their record of effectiveness in placing at-risk youth 
into employment; describe the strong fiscal controls they have 
in place; and give an assurance they are licensed to operate in 
the state in which the center is located, among other 
commonsense measures. The secretary is authorized to enter into 
two-year agreements with operators and may extend the agreement 
for three one-year terms if the grantees meet or exceed all of 
their performance indicators. The secretary may not extend the 
terms if a center's performance ranks it in the bottom quintile 
of all centers unless the center has shown significant 
improvement over the last program year. The bill prevents the 
secretary from awarding grants to entities that have been found 
to have a material failure that involves the misuse of federal 
funds or a threat to the health, safety, or civil rights of 
youth or staff. This process removes poor-performing grantees 
and ensures high-quality grantees are adhering to new and 
stronger performance requirements.
    As a national program, Job Corps spends a significant 
amount of taxpayer dollars on administration. The $1.5 billion 
operations budget allocates more than 80 percent ($1.2 billion) 
to center operations, leases, phone and data lines, and 
information technology equipment; 7 percent ($107 million) to 
student pay and home transportation; and only 3.6 percent ($57 
million) to career services. H.R. 803 sets a 10 percent cap on 
administrative costs for the program, ensuring a greater 
portion of Job Corps funds go to youth employment services, 
including career skills training for in-demand occupations.
    According to the department's budget documents, Job Corps 
cost $29,388 per participant in 2010. However, the IG, GAO, and 
the Office of Management and Budget note this calculation does 
not reflect job placement or training completion outcomes and 
includes students who have dropped out of the program. Based on 
these factors, the program actually costs $42,952 per 
participant, one of the highest participant costs for federal 
programs. H.R. 803 provides a competitive priority to Job Corps 
center operators who demonstrate they can reduce program costs, 
including during times of budgetary shortfalls, and requires 
operators to detail in their applications how they will reduce 
costs to save taxpayer dollars.
    As a national program, the secretary and departmental 
employees establish all policies and requirements for Job 
Corps, resulting in a lack of coordination with state and local 
workforce initiatives. H.R. 803 provides the governor of the 
state in which a Job Corps center is located the authority to 
appoint representatives to the Workforce Council, a two-thirds 
majority of whom must be from the business community, and 
requires education and training services to be linked to 
employment opportunities in in-demand industries.

National activities

    The committee believes state and local leaders--not 
Washington bureaucrats--should be driving policies and programs 
that best meet their region's needs. To this end, H.R. 803 
dramatically reduces the role of the federal government in the 
nation's workforce investment decisions. The bill eliminates 
most national activities, choosing to send resources to state 
and local workforce investment board leaders who know best how 
to administer employment and training programs to unemployed 
and underemployed workers. As stated earlier, during his 2012 
State of the Union address, President Obama recognized the need 
to consolidate job training programs and called on Congress to 
``cut through the maze of confusing [job] training programs'' 
and create ``one program'' for workers to find the support they 
need. H.R. 803 moves our country in that direction and helps 
put Americans back to work. This bill will help ensure we spend 
less money on red tape and more on training, while also making 
the system more attuned to the needs of job seekers and 
employers and heeding the president's call for consolidation.
    H.R. 803 requires the Secretary of Labor to provide 
technical assistance to states that fail to meet performance 
measurements and establish a system through which states may 
share information regarding best practices in the operation of 
workforce investment activities. In addition, the secretary, 
through grants, contracts, or cooperative agreements, is 
required to conduct an independent evaluation of the programs 
and activities under this Act at least once every five years. 
The secretary must also conduct an impact analysis of the 
formula grant program by no later than 2015, and then not less 
than once every four years thereafter. All results of these 
evaluations must be made public and posted to the department's 
website.

Administration

    Under current law, the secretary must investigate each 
allegation of violations of the requirements of Title I of WIA. 
This provision is amended to authorize, but not require 
investigations of such allegations since it may not be 
necessary or appropriate to conduct an investigation of each 
one.
    H.R. 803 prohibits funds from being used to pay the salary 
and bonuses of an individual at a rate in excess of Level II of 
the Federal Executive Pay Schedule. The bill includes general 
authority establishing the Employment and Training 
Administration (ETA) at the U.S. Department of Labor and 
requires the assistant secretary to be an individual with 
substantial experience in workforce development and workforce 
development management. During markup, the committee adopted an 
amendment offered by Rep. Martha Roby (R-AL) to prohibit the 
use of workforce investment funds for lobbying and political 
activities.
    The legislation requires the secretary to submit states' 
quarterly reports to the House Committee on Education and the 
Workforce and the Senate Committee on Health, Education, Labor, 
and Pensions to ensure the committees have sufficient 
information to evaluate the program.
    Current law prohibits use of WIA funds for employment 
generating activities, economic development activities, and 
similar activities that are not directly related to training 
for eligible Title I participants. The bill clarifies this 
restriction to encourage closer ties between workforce 
development and economic development activities. The new 
language will only prohibit such activities if they do not 
relate to the entry in employment, retention of employment, or 
increases in earnings.
    H.R. 803 provides new waiver authority for the secretary. 
The Department of Labor will establish an expedited process for 
extending waivers approved for one state to additional states, 
provided they meet other requirements. In administering the 
waiver process it has been found that some waivers to address 
particular issues appear to be appropriate for all states, but 
under current authority each state must go through a detailed 
application process to receive the waiver. This provision will 
allow the secretary to expedite that process. In addition, the 
secretary is explicitly prohibited from requiring or imposing 
new or additional requirements in exchange for providing a 
waiver to a state.
    In addition, H.R. 803 prohibits using funds provided under 
WIA to establish or operate stand-alone fee-for-service 
enterprises that compete with private sector employment 
agencies; this does not include One-Stop centers. Such efforts 
are contrary to the intent of WIA.
    H.R. 803 also includes a provision directing the Office of 
Management and Budget to identify how many full-time equivalent 
federal employees worked on or administered the eliminated 
programs under this Act and, no later than one year after the 
bill's enactment, to reduce the federal government's workforce 
by that number.

State unified plan

    WIA currently allows states to develop and submit to the 
appropriate secretaries unified plans for two or more programs 
that provide, in part, employment and training activities to 
individuals. H.R. 803 maintains current law and goes a step 
further in authorizing governors to consolidate those funds 
into the Workforce Investment Fund for the express purpose of 
providing greater administrative flexibility and reducing 
overly burdensome paperwork requirements. The bill requires 
states that wish to consolidate additional employment and 
training programs into the Workforce Investment Fund to meet 
the underlying purpose, intent, requirements, prohibitions, and 
limitations of any such program. This important, but voluntary, 
change further streamlines administrative costs at the state 
level in those areas, subjecting all state workforce and 
economic development programs to the same performance and 
reporting requirements, while still requiring states to meet 
the goals and requirements of the consolidated programs. During 
markup, the committee adopted an amendment offered by Rep. Tim 
Walberg (R-MI) that would allow states to submit unified plans 
solely to the Secretary of Labor, instead of multiple 
secretaries, placing the onus on the secretary to navigate the 
federal bureaucracy.
    Mr. Chris Hart, President and CEO of Workforce Florida 
Inc., discussed the importance of state flexibility during the 
February 26, 2013 subcommittee hearing entitled, ``Putting 
America Back to Work: Reforming the Nation's Workforce 
Investment System'':

          ``The SKILLS Act calls for unified planning and 
        common shared goals, it focuses on performance over 
        process and continuous evaluation of systems and 
        procedures in an effort to become more efficient and 
        effective with each passing year. Florida agrees.''

    The committee believes states should have the ability to 
consolidate additional programs not included under H.R. 803. 
This flexibility ensures taxpayer dollars are not spent 
maintaining an inefficient bureaucracy, but instead put toward 
supporting employers and job seekers.

                       TITLE II--ADULT EDUCATION

    The need for an educated populace is critical to success in 
today's global economy. Individuals without a high school 
diploma or its equivalent earn roughly half the salary of the 
average worker. Employers searching for qualified employees 
over the past decade have noticed an increasing trend in the 
number of employees lacking the basic skills needed in the 
workplace. In addition, the number of beginning college 
students who are required to take basic skills courses in 
reading and math before moving into the standard college 
program continues to increase, jeopardizing their success in 
postsecondary education.
    In reauthorizing Title II, the Adult Education and Family 
Literacy Education Act, of WIA, H.R. 803 places additional 
emphasis on ensuring states and local providers offer basic 
skills instruction in reading, writing, English language 
acquisition, and math, and integrating those services with 
occupational skills training. Making sure these skills are 
solidly in place for all students is a priority, whether 
English learners, high school dropouts who have not mastered 
these vital skills, or high school graduates who have slipped 
through the cracks in the education system and need additional 
instruction in the basics.

Accountability

    As discussed above, H.R. 803 requires all adult basic 
education and literacy programs to meet the same set of core 
performance measurements outlined for all employment and 
training activities authorized under this Act. The committee 
believes individuals receiving services aimed at improving 
their language and numeracy skills should be able to use these 
skills in obtaining a regular secondary school diploma or its 
recognized equivalent, obtaining full time employment, 
increasing their average earnings, earning industry-recognized 
credentials, or enrolling in postsecondary education and 
training programs.
    The bill also provides funds for states to use in offering 
eligible providers of adult education technical assistance and 
professional development training on ways to develop, 
implement, and report measurable progress in achieving the 
objectives of this title. States are required to include in 
their plans how they will evaluate and measure annually such 
effectiveness on a grant-by-grant basis and how they will hold 
eligible providers accountable for improving the academic 
achievement of participants in adult education programs. The 
committee believes cooperation and coordination between state 
and local providers in offering research-based instruction in 
reading, writing, English language acquisition, and math will 
ensure participants reach their goals. States are authorized to 
use technical assistance, sanctions, and rewards (including 
allocation of grant funds based on performance and termination 
of grant funds based on nonperformance) to hold local adult 
education providers accountable.

Coordination and integration of services

    The committee believes it is essential for adult educators 
to work closely with state workforce investment boards; state 
agencies of higher education; representatives of business and 
industry; and immigrant assistance organizations, including 
community-based and faith based organizations, in providing 
appropriate skill development programs for eligible adults. 
H.R. 803 encourages state and local leaders to provide adult 
education and literacy activities contextually and concurrently 
with workforce preparation activities and workforce training 
for a specific occupation or occupational cluster. The 
integration of literacy and occupational skills training are 
essential in assisting adults with the transition into 
postsecondary education and careers.

National leadership activities

    The bill authorizes national activities to assist states 
and local providers in developing valid, measurable, and 
reliable performance data, and in using such performance 
information for the improvement of adult education and family 
literacy education programs. The committee supports the 
development of model basic and workplace skills education 
programs, and believes their effective integration with 
employment services are important components of improving the 
delivery of adult education programs. H.R. 803 also supports 
the development of a more efficient delivery system of 
technology-based, basic skills programs and materials for adult 
reading, writing, English language acquisition, math, and 
family literacy education.
    The bill eliminates the National Institute of Literacy, 
described earlier in this report, due to its lack of results, 
duplication of services, and not receiving funding in the past 
two fiscal years.

Authorization of appropriations

    H.R. 803 authorizes appropriations for Title II at 
$606,294,933 for fiscal year 2014 and each of the six 
succeeding fiscal years. This amount is equal to the 
appropriated amount for fiscal year 2012 for Title II of WIA.

             TITLE III--AMENDMENTS TO THE WAGNER-PEYSER ACT

    The Wagner-Peyser Act authorizes the current employment 
services system and the employment statistics system. Because 
employment services funding is being consolidated under the 
Workforce Investment Fund and the employment services functions 
are being integrated into the One-Stop delivery system, H.R. 
803 repeals sections 1 through 14 of the Wagner-Peyser Act. 
These sections authorize the stand-alone employment services 
system and the separate Employment Services Statistical 
Program.
    H.R. 803 amends the current employment statistics system 
authorized under the Wagner-Peyser Act and renames the system 
the Workforce and Labor Market Information System. The 
requirement for the secretary to prepare an annual plan for 
management of the nationwide employment statistics system is 
eliminated. This plan has not proven useful. In place of the 
plan requirement is an authorization for the secretary to 
assist in the development of national electronic tools that may 
be used to facilitate the delivery of work ready services and 
provide workforce information to individuals through the One-
Stop and other appropriate delivery systems.
    The bill eliminates the requirement for the governor to 
designate a state agency to oversee the labor market 
information system and gives the governor flexibility to 
operate the system as appropriate for the state's delivery 
system. Our rapidly changing economy and labor markets require 
a new, flexible, demand-driven workforce investment system that 
is fully aligned with states' economic development strategies. 
This system, in turn, requires a broader view of workforce, 
labor market, and economic data and information than the 
traditional labor market information system of the past. 
Governors need the flexibility to determine how this function 
is performed without being bound by outdated institutional 
arrangements. Through this change, the committee recognizes 
quality workforce information is more important than ever; it 
should be utilized as a tool to drive system investments, 
including types of training needed by individuals to compete in 
local labor markets, the development of targeted high growth 
strategies as part of economic development, and use by 
businesses eager to grow and compete both locally and globally.
    Provisions in current law relating to consultations between 
the secretary and state employment statistics officials is 
simplified to provide that the secretary, working through the 
Bureau of Labor Statistics (BLS) and ETA, must regularly 
consult with representatives from the designated state agencies 
on strategies for improving the workforce and labor market 
information system. At least twice each year, the secretary, 
working through BLS, would conduct formal consultations on BLS 
programs with representatives, elected by and from state 
directors affiliated with state entities, from each of the ten 
Department of Labor regions. This formal consultation and 
election process is similar to current law.
    H.R. 803 eliminates the Employment Service Statistical 
Program, which reimburses states for providing data for 
national statistical programs, as it is duplicative of 
statewide activities currently funded under WIA. The bill also 
eliminates the 21st Century Workforce Commission, which issued 
its final report on the skills needed for the information 
technology industry sector in the spring of 2000.

              TITLE IV--REPEALS AND CONFORMING AMENDMENTS

    H.R. 803 eliminates and streamlines 35 ineffective and 
duplicative programs and creates a new Workforce Investment 
Fund, a single workforce training program for unemployed and 
underemployed workers. The reasons for consolidation are 
outlined earlier in this report. The bill repeals the following 
programs: WIA Adult Program; WIA Youth Activities; WIA 
Dislocated Workers; Employment Services (ES)/Wagner-Peyser 
Funded Activities; Community-Based Job Training Grants; 
Veterans Workforce Investment Program; National Farmworker Jobs 
Program--U.S. Department of Labor; Native American Employment 
and Training; WIA National Emergency Grants; Reintegration of 
Ex-Offenders; Grants to States for Training for Incarcerated 
Individuals; YouthBuild; Conservation Activities by Youth 
Service Organizations (Youth Conservation Corps); 21st Century 
Workforce Commission; Senior Community Service Employment 
Program (SCSEP); Women in Apprenticeship and Nontraditional 
Occupations (WANTO); Projects with Industry; State-Supported 
Employment Services Program; Migrant and Seasonal Farmworkers 
Program--U.S. Department of Education; Disabled Veterans' 
Outreach Program; Local Veterans Employment Representative 
Program; WIA Pilot and Demonstration Projects; Workforce 
Innovation Fund; ES Statistical Programs; Green Jobs Act; 
National Institute for Literacy; Youth Opportunity Job Grants; 
Recreational Programs; and In-Service Training of 
Rehabilitation Personnel.
    In addition to these programs, the bill amends the 
Brownfields Job Training Cooperative Agreements (Environmental 
Workforce Development and Job Training Program) to remove 
references to training to prohibit the Environmental Protection 
Agency (EPA) from distributing grants for workforce training 
efforts that are duplicative of the workforce investment 
system. H.R. 803 also amends the Supplemental Nutrition 
Assistance Program's (SNAP) Employment and Training program, 
the Second Chance Act Prisoner Reentry Initiative, and three 
Refugee and Entrant Assistance programs to provide such 
services through the statewide workforce development system 
authorized under this Act. State and local boards are required 
to detail in their plans how they will serve the employment and 
training needs of SNAP recipients, refugees, and ex-offenders.

         TITLE V--AMENDMENTS TO THE REHABILITATION ACT OF 1973

    The Rehabilitation Act of 1973 is the nation's major 
program providing comprehensive vocational rehabilitation (VR) 
services to help persons with disabilities become employable 
and achieve full integration into society. The primary program 
within the Act is the state VR program under Title I, which 
provides formula grant funds to states for VR services to 
assist persons with significant disabilities to become employed 
in integrated work settings.

VR Programs

    H.R. 803 makes several significant and important changes to 
the underlying law. In the committee's ongoing effort to 
address the duplication of federal workforce training programs, 
the bill eliminates five programs that are ineffective or 
duplicative of the much larger state grant program, most of 
which have been proposed for elimination by the Obama 
Administration.
    The In-Service Training of Rehabilitation Personnel program 
supports state systems of professional development. The program 
is duplicative of the existing--and larger--training program 
authorized under Section 302 of the Act, and the requirement 
that states provide comprehensive professional development as 
part of their Title I state plans. The administration's fiscal 
year 2013 budget eliminates funding for this small program. The 
Department of Education's budget justifications advocated for 
this elimination ``in order to reduce duplication of effort and 
administrative costs, streamline program administration at the 
federal and local level, and improve accountability.''
    The Migrant and Seasonal Farmworkers program provides 
funding to states to assist individuals with disabilities who 
are migrant and seasonal farmworkers. The program is 
duplicative of the main Title I state grant, which provides 
similar services and serves the same target population. It also 
contains numerous provisions to ensure that state agencies 
reach and serve all individuals with disabilities in the state, 
including minority, unserved, and underserved populations. The 
administration's fiscal year 2013 budget eliminates funding for 
this small program. As with the In-Service Training program, 
the Department of Education is seeking this program's 
elimination ``in order to reduce duplication of effort and 
administrative costs, streamline program administration at the 
federal and local level, and improve accountability.'' The 
program is also producing poor results. During fiscal year 
2009, the 13 states with projects served 189 individuals, 
placing 126 in employment ($17,460 program cost/per placement). 
In contrast, states that did not receive dedicated funding 
served 1,835 migratory workers and placed 1,082 in employment. 
In FY 2008, the 13 states with projects reported placing 55 
percent of those served into employment while states without 
projects reported placing 58 percent into employment.
    The Recreation program provides individuals with 
disabilities inclusive recreational activities and related 
experiences. The program did not receive funding in fiscal year 
2012 and gave out only 16 new grants in fiscal year 2011. As 
the administration stated in its fiscal year 2012 budget 
proposal to eliminate this program, its activities would be 
more appropriately financed by state and local agencies and the 
private sector.
    The Projects with Industry (PWI) program creates and 
expands job and career opportunities for individuals with 
disabilities in the competitive labor market. The program did 
not receive funding in fiscal year 2012. The committee 
believes, however, that direct engagement with industry is 
critical to improving employment opportunities for individuals 
with disabilities. To that end, H.R. 803 requires states to set 
aside at least one-half of 1 percent of their Title I state 
grant funds to award grants to businesses and partnerships 
between businesses and other entities to provide services 
similar to those provided to grantees under the PWI program. 
Integrating these efforts with the main state program will 
strengthen partnerships between industry and the statewide VR 
system.
    The Supported Employment State Grant program provides 
supplemental funding to state VR agencies for providing 
supported employment services for individuals with the most 
significant disabilities. The program duplicates the much 
larger Title I state grant program by providing similar 
services to the same target population. The administration's 
fiscal year 2013 budget eliminates funding for this small 
program. In 2012, the Department of Education stated in its 
budget justifications, ``[B]ecause supported employment is now 
an integral part of the VR State Grants program, the 
Administration believes that there is no longer a need for a 
separate funding stream to ensure the provision of such 
services.'' State agencies are spending a growing portion of 
their main VR program funds to provide supported employment 
services, demonstrating that the Supported Employment State 
Grant program has accomplished its goal.

Transition services

    H.R. 803 makes significant changes to the underlying law to 
address the need for improved transition services for youth 
with disabilities. The Department of Labor's Office of 
Disability Employment Policy reports that the labor force 
participation rate for people with disabilities was only 21 
percent in January 2013, more than three times lower than the 
rate for people without disabilities. The committee recognizes 
the significant need to improve the transition of youth with 
disabilities from school to postsecondary education and 
employment.
    A 2003 GAO report found poor linkages between schools and 
youth service providers and a lack of community work experience 
impedes the successful transition of youth. Without the 
involvement of agencies that support youth with disabilities, 
the responsibility for transition is left to special education 
teachers who may not have the capacity, training, or access to 
necessary community resources. The involvement of the VR 
program in transition provides students with disabilities and 
special education teachers with assistance, training, and 
access to community resources that can be critical to success. 
However, many youth with disabilities who are eligible for VR 
services while in high school do not access them because they 
lack knowledge of the program or the program does not have the 
capacity to serve all those who are eligible.
    The committee recognizes state vocational rehabilitation 
agencies currently have an affirmative obligation to provide 
transition services to students with disabilities as they 
prepare to leave secondary education. Despite this obligation, 
the state vocational rehabilitation agencies have not 
sufficiently addressed this important problem. In response to 
the 2003 GAO report, the committee developed a bipartisan 
proposal in the 109th and 110th Congresses to address the 
transition of students receiving services under the Individuals 
with Disabilities Education Act (IDEA) to postsecondary 
education, employment, and independent living. H.R. 803 
reflects this longstanding consensus.
    To improve planning and coordination, the bill requires 
states to address the needs of students with disabilities as a 
part of the comprehensive statewide assessment of vocational 
rehabilitation needs and to describe the methods used to expand 
and improve services to students with disabilities, including 
the coordination of services designed to facilitate the 
transition of such students to postsecondary education or 
employment. The bill also requires states to set aside at least 
10 percent of their formula grants to expand transition 
services. States will be required to use these targeted funds 
to carry out programs or activities to improve and expand 
services that facilitate student transition; improve the 
achievement of post-school goals; support training and 
technical assistance to personnel; support outreach activities; 
and provide vocational guidance, career exploration services, 
and job search skills to students with disabilities.

Administration

    The bill seeks to better align the Department of 
Education's services to individuals with disabilities by 
eliminating bureaucratic hurdles to collaboration. The 
committee believes improved coordination of services will 
better address the challenges youth with disabilities face when 
transitioning out of secondary education and lead to better 
employment and postsecondary outcomes.
    H.R. 803 changes the position that heads the Rehabilitation 
Services Administration (RSA) within the Department of 
Education from a commissioner appointed by the president and 
approved by the Senate to a director appointed by the 
secretary. The committee notes this is a simple and important 
change to the department's administrative functioning that will 
help make it operate more effectively and ensure a consistent 
policy view exists across the department's programs that 
address the needs of individuals with disabilities.
    The Assistant Secretary of Special Education and 
Rehabilitation Services oversees the Director of the Office of 
Special Education Programs and the Director of the National 
Institute on Disability and Rehabilitation Research. The bill 
places the Rehabilitation Services Administration (RSA) on 
equal footing with those two important offices, and reaffirms 
the importance of coordinating federal policy across these 
three vital offices through the Office of the Assistant 
Secretary.
    Administration after administration has struggled with 
having two individuals appointed by the president and confirmed 
by the Senate working within the same office. Providing this 
clarity will establish a clear sense of purpose to these 
offices, enabling the department to focus more on providing 
high-quality services to individuals with disabilities.
    In the 112th Congress, Senators Chuck Schumer (D-NY) and 
Lamar Alexander (R-TN) introduced S. 679, the Presidential 
Appointment Efficiency and Streamlining Act of 2011. The bill 
eliminated the requirement of Senate approval of specified 
presidentially appointed positions in federal agencies and 
departments to reduce bureaucracy and improve efficiency. The 
bill as voted out of committee removed the requirement for 
Senate confirmation of the Commissioner of the RSA, reflecting 
bipartisan support for this provision. Unfortunately, the 
provision was removed from S. 679 prior to its approval by the 
Senate as a result of pressure from interest groups. But 
Democrats and Republicans agree that the removal of Senate 
confirmation for the commissioner is a commonsense way to 
provide better and more efficient services to individuals with 
disabilities.

Coordination with the Assistive Technology Act

    When the Assistive Technology Act of 1998 was last 
reauthorized in 2004, Congress made a series of significant 
changes to improve the structure and operation of the program. 
H.R. 803 ensures state VR programs coordinate and cooperate 
with the lead agency responsible for assistive technology to 
guarantee individuals with disabilities have access to 
assistive technology to improve their educational, employment, 
or independent living opportunities. In addition, the bill 
provides state VR programs the option to coordinate their 
activities with programs authorized under the Assistive 
Technology Act, including device loan, device demonstration, 
device reutilization, and alternative financing programs.

Conclusion

    The Supporting Knowledge and Investing in Lifelong Skills 
(SKILLS) Act embodies bold reforms that will better serve 
unemployed and underemployed workers struggling to succeed in 
today's challenging economy. The bill eliminates and 
streamlines 35 ineffective and duplicative workforce 
development programs, and empowers state and local leaders to 
assist workers and job seekers through a single, flexible 
Workforce Investment Fund. The bill also provides governors the 
opportunity to submit a responsible plan to consolidate 
additional programs when such measures would better serve 
workers by creating a more seamless, comprehensive job training 
system.
    Unlike the current system in which only a handful of 
programs have been evaluated, H.R. 803 establishes common 
performance measures that will make it easier for the public to 
learn whether programs are helping workers find a job, and 
ensures those programs that demonstrate a pattern of failure 
lose funding. To ensure states and local areas are serving all 
Americans, including special populations, the bill dedicates a 
portion of funding to serve those most vulnerable, such as 
disadvantaged youth and individuals with disabilities.
    More money to pay for new workforce programs does not 
constitute reform; it merely doubles down on the failed 
policies of the past. H.R. 803 maintains our nation's current 
fiscal commitment to employment and training assistance--
important services that will help close the skills gap--while 
taking steps to ensure taxpayer dollars are spent more 
efficiently and effectively, leading to more direct services 
for workers.
    The committee strongly endorses the Supporting Knowledge 
and Investing in Lifelong Skills (SKILLS) Act, which 
streamlines the confusing maze of job training programs--a step 
the president has asked Congress to take; strengthens the role 
of employers; expands state and local decision-making; ensures 
additional resources are spent on training; and takes action to 
help get more Americans back to work.

                      Section-by-Section Analysis


Section 1--Short title

    States the short title as the Supporting Knowledge and 
Investing in Lifelong Skills (SKILLS) Act.

Section 2--Table of contents

    Lists the table of contents for the Act.

Section 3--References

    References the Workforce Investment Act of 1998.

Section 4--Effective date

    Specifies the effective dates of the amendment and programs 
within the Act.

                                TITLE I

                               SUBTITLE A

Section 101--Definitions

    Amends Section 101 (29 U.S.C. 2801) by modifying and adding 
commonly used terms within the Act.

                               SUBTITLE B

Section 102--Purpose

    Amends Section 106 (29 U.S.C. 2811) to reflect the purpose 
of Title I, Subtitle B--Statewide and Local Workforce 
Investment Systems.

Section 103--State workforce investment boards

    Amends Section 111 (29 U.S.C. 2821) to specify the general 
requirements for state board membership by removing the 
mandatory partners and requiring a two-thirds business 
majority.

Section 104--State plan

    Amends Section 112 (29 U.S.C. 2822) to specify the general 
requirements for plans submitted by state workforce investment 
boards and amends the state planning cycle from a 5-year to 3-
year strategy.

Section 105--Local workforce investment areas

    Amends Section 116 (29 U.S.C. 2831) to specify general 
requirements for designating local workforce areas and removes 
all grandfathering clauses that allowed areas in existence 
prior to 1998 to remain.

Section 106--Local workforce investment boards

    Amends Section 117 (29 U.S.C. 2832) to specify the general 
requirements for local board membership by removing the 
mandated partners and requiring a two-thirds business majority.

Section 107--Local plan

    Amends Section 118 (29 U.S.C. 2833) to specify the general 
requirements for plans submitted by local workforce investment 
boards, requires local boards to allocate a percentage of funds 
to be used on training activities, and amends the local 
planning cycle from a 5-year to 3-year strategy.

Section 108--Establishment of One-Stop delivery system

    Amends Section 121 (29 U.S.C. 2841) to add the Temporary 
Assistance for Needy Families program as a mandatory partner 
within the One-Stop delivery system. The section also adds 
employment and training programs administered by the 
Commissioner of the Social Security Administration, programs at 
the Small Business Administration, and programs and literacy 
services carried out by public libraries as new optional 
partner programs within the One-Stop delivery system. Moves the 
creation of the One-Stop delivery system from Section 134 to 
Section 121, requires state boards to certify One-Stop centers 
for the purposes of awarding infrastructure funds, and requires 
One-Stop partners to contribute funds for infrastructure 
grants.

Section 109--Identification of eligible providers of training services

    Amends Section 122 (29 U.S.C. 2842) to allow governors to 
identify eligible providers of training services and prioritize 
those that are meeting and exceeding performance outcomes.

Section 110--General authorization

    States the heading of Chapter 5 of Subtitle B of Title I as 
``Employment and Training Activities.''

Section 111--State allotments

    Amends Section 132 (29 U.S.C. 2862) to establish a 
comprehensive program of employment and training activities for 
all individuals ages 16 and older. The section amends the 
Secretary of Labor's reservations of funds, changes the 
allotment formula of funds to states, and amends the 
reallotment provisions.

Section 112--Within state allocations

    Amends Section 133 (29 U.S.C. 2863) to specify the amounts 
reserved under the statewide reservations. The section changes 
the allotment formula of funds to local areas, amends the 
reallotment provisions for local areas, and specifies state and 
local administrative cost limits.

Section 113--Use of funds for employment and training activities

    Amends Section 134 (29 U.S.C. 2864) to specify the use of 
funds for employment and training activities at the state and 
local levels and removes the current sequencing of services 
requirements. The section also adds the new statewide grants 
for individuals with barriers to employment program 
requirements and requires a priority for placement in private 
sector jobs.

Section 114--Performance accountability system

    Amends Section 136 (29 U.S.C. 2871) to establish a common 
set of core indicators of performance that all employment and 
training programs under this Act must adhere to and requires 
the Secretary of Labor to reduce funds to states that do not 
meet their performance targets for two consecutive years and 
governors to reduce funds to local areas that do not meet their 
performance targets for three consecutive years. The section 
also allows states and local boards to implement pay-for-
performance strategies.

Section 115--Authorization of appropriations

    Amends Section 137 (29 U.S.C. 2872) to authorize 
appropriations for this Act.

                               SUBTITLE C

Section 116--Job Corps purposes

    Amends Section 141 (29 U.S.C. 2881(1)) to reflect the 
purpose of the Job Corps program.

Section 117--Job Corps definitions

    Amends Section 142 (29 U.S.C. 2882) to modify and add 
commonly used terms under this subtitle.

Section 118--Individuals eligible for the Job Corps

    Amends Section 144 (20 U.S.C. 2884) to include youth up to 
24 years of age.

Section 119--Recruitment, screening, selection, and assignment of 
        enrollees

    Amends Section 145 (29 U.S.C. 2885) to specify general 
requirements for selecting enrollees and placing them into 
centers that offer the type of career and technical education 
training selected by the individual.

Section 120--Job Corps centers

    Amends Section 147 (29 U.S.C. 2887) to specify general 
requirements to operate a Job Corps center and requires all 
current grantees to undergo a recompetition.

Section 121--Program activities

    Amends Section 148 (29 U.S.C. 2888) to specify general 
requirements linking education and training to in-demand 
industries in the state and the attainment of a regular high 
school diploma.

Section 122--Counseling and job placement

    Amends Section 149 (29 U.S.C. 2889) to remove the 
requirement to provide counseling and job placement services to 
former enrollees.

Section 123--Support

    Amends Section 150 (29 U.S.C. 2890) to change the Secretary 
of Labor's allowances to graduates to become incentive-based.

Section 124--Operations

    Amends Section 151 (29 U.S.C. 2891) to change the heading 
from ``Operating Plan'' to ``Operations'' and adds an 
administrative cost limit on funds allotted to Job Corps 
operators.

Section 125--Community participation

    Amends Section 153 (29 U.S.C. 2893) to include local 
workforce investment boards in planning purposes.

Section 126--Workforce councils

    Amends Section 154 (29 U.S.C. 2894) to change the heading 
from ``Industry Councils'' to ``Workforce Councils'' and to 
specify general requirements on council members and require a 
two-thirds business majority.

Section 127--Technical assistance

    Amends Section 156 (29 U.S.C. 2896) by striking the section 
and inserting requirements for the Secretary of Labor to 
provide technical assistance and training for the Job Corps 
program for the purposes of improving program quality.

Section 128--Special provisions

    Amends Section 158 (29 U.S.C. 2898) by updating the 
reference regarding transfers of federal property to chapter 5 
of title 40 United States Code.

Section 129--Performance accountability and management

    Amends Section 159 (29 U.S.C. 2899) to change the heading 
from ``Management Information'' to ``Performance Accountability 
and Management.'' The section adds new primary indicators of 
performance and adds performance indicators for recruiters and 
career transition service providers. The section also requires 
new transparency and accountability provisions.

                               SUBTITLE D

Section 130--Technical assistance

    Amends Section 170 (29 U.S.C. 2915) by striking the 
dislocated worker technical assistance provision and specifying 
requirements for the training of staff to provide rapid 
response services. The section also establishes a system for 
coordination of best practices among states.

Section 131--Evaluations

    Amends Section 172 (29 U.S.C. 2917) to require the 
Secretary of Labor to conduct evaluations of programs and 
activities funded under this Act at least once every five 
years.

                               SUBTITLE E

Section 132--Requirements and restrictions

    Amends Section 181 (29 U.S.C. 2931) to specify the general 
requirements on the limitation of funds in the Act.

Section 133--Prompt allocation of funds

    Amends Section 182 (29 U.S.C. 2932) to strike the youth 
provisions.

Section 134--Fiscal controls; sanctions

    Amends Section 184(a)(2) (29 U.S.C. 2934(a)(2)) to strike 
the references to the WIA adult and dislocated worker programs.

Section 135--Reports to Congress

    Amends Section 185 (29 U.S.C. 2935) to specify requirements 
on dissemination of the reports.

Section 136--Administrative provisions

    Amends Section 189 (29 U.S.C. 2939) to specify requirements 
for administrative provisions, changes the program year to 
October 1, and prohibits the Secretary of Labor from requiring 
or imposing new or additional requirements in exchange for 
providing a waiver to a state.

Section 137--State legislative authority

    Amends Section 191(a) (29 U.S.C. 2941(a)) to specify 
requirements consistent with state law.

Section 138--General program requirements

    Amends Section 195 (29 U.S.C. 2945) to specify requirements 
that no funds under this Act shall be used to establish fee-
for-service agencies that compete with private sector 
employment agencies.

Section 139--Federal agency staff

    Amends Subtitle E of Title I (29 U.S.C. 2931 et seq.) to 
add a new Section 196 to specify requirements for the Director 
of the Office of Management and Budget to identify and reduce 
the federal workforce by the number of full-time equivalent 
employees identified as having worked on programs eliminated or 
consolidated under this Act. The section also adds a new 
Section 197 to restrict the use of grant funds under this Act 
from being used for lobbying or political activities.

                               SUBTITLE F

Section 140--State unified plan

    Amends Section 501 (20 U.S.C. 9271) to modify and add 
programs to be included in the unified plan and authorizes the 
governor to consolidate funds allotted to the identified 
programs into the Workforce Investment Fund with the exception 
of the Carl D. Perkins Career and Technical Education Act of 
2006 and the Rehabilitation Act of 1973. The section also 
specifies that states wishing to consolidate additional 
employment and training programs into the Workforce Investment 
Fund must meet the underlying purpose, intent, requirements, 
prohibitions, and limitations of any such program.

                                TITLE II

Section 201--Amendment

    Amends Title II (29 U.S.C. 2901 et seq.) by reducing the 
Secretary of Education's set aside to carry out national 
activities to 2 percent; requires programs and initiatives 
funded this title to meet the core indicators of performance 
outlined in Title I of the Workforce Investment Act; specifies 
requirements for state agencies under state leadership 
activities; encourages coordination and integration of 
education and occupational skills training among programs and 
agencies to avoid duplication; changes five year strategic 
plans to three years; specifies requirements for state plans; 
specifies requirements for local provisions, including 
requiring measurable goals that demonstrate past effectiveness 
of providers; repeals the National Institute for Literacy; and 
specifies requirements for national leadership activities to 
improve performance on core indicators.

                               TITLE III

Section 301--Amendments to the Wagner-Peyser Act

    Amends the Wagner-Peyser Act (29 U.S.C. 49 et seq.) by 
striking Sections 1 through 14. The section also amends Section 
15 of the Act to require the Secretary of Labor to oversee a 
nationwide workforce and labor market information system; sets 
forth provisions with regard to system content, confidentiality 
of information, system responsibilities, and immunity from 
legal process; authorizes the Secretary of Labor to assist in 
the development of national electronic tools to provide 
services; and requires the Secretary of Labor to consult with 
representatives of state agencies involved in carrying out 
workforce information strategies.

                                TITLE IV

Section 401--Repeals

    Repeals Chapter 4 of Subtitle B of Title I, Subtitle C of 
Title III, and Sections 123, 155, 166, 167, 168, 169, 171, 173, 
173A, 174, 192, 194, 502, 503, and 506 of the Workforce 
Investment Act of 1998; Title V of the Older Americans Act of 
1965; Sections 1 through 14 of the Wagner-Peyser Act of 1933; 
Youth Conservation Corps Act of 1970 (16 U.S.C. 1701 et seq.); 
Section 821 of the Higher Education Amendments of 1998 (20 
U.S.C. 1151); the Women in Apprenticeship and Nontraditional 
Occupations Act (29 U.S.C. 2501 et seq.); and Sections 4103A 
and 4104 of title 38, United States Code.

Section 402--Amendment to the Comprehensive Environmental Response, 
        Compensation, and Liability Act of 1980

    Amends Section 104(k)(6) of the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
9604) to strike the word ``training.''

Section 403--Amendments to the Food and Nutrition Act of 2008

    Amends the Food and Nutrition Act of 2008 (7 U.S.C. 2012) 
to specify requirements that employment and training services 
authorized under Section 134 of the Workforce Investment Act 
must be made available to eligible recipients of supplemental 
nutrition assistance program benefits; employment and training 
services shall be provided through the statewide workforce 
development system; and the responsibility for monitoring both 
administration and spending of employment and training services 
shall be in conjunction with both the Secretary of Agriculture 
and the Secretary of Labor.

Section 404--Amendments to Section 412 of the Immigration and 
        Nationality Act

    Amends the Immigration and Nationality Act (8 U.S.C. 
1522(a)) to require employment and training services for 
refugee and new entrants be provided through the one-stop 
delivery system under the Workforce Investment Act of 1998.

Section 405--Amendments relating to the Second Chance Act of 2007

    Amends the Second Chance Act of 2007 (42 U.S.C.17541) to 
coordinate and ensure prisoners reentering the workforce are 
provided employment and training services through the one-stop 
delivery system under the Workforce Investment Act of 1998.

Section 406--Amendments to the Omnibus Crime Control and Safe Streets 
        Act of 1968

    Amends Section 2976 of the Omnibus Crime Control and Safe 
Streets Act of 1968 (42 U.S.C. 3797w) to coordinate and ensure 
offenders upon release from prison, jail, or a juvenile 
facility are provided employment and training services through 
the one-stop delivery system under the Workforce Investment Act 
of 1998.

Section 407--Conforming amendments to the United States Code

    Amends the United States Code with conforming and technical 
changes.

Section 408--Conforming amendments to table of contents

    Amends the table of contents in Section 1(b) with 
conforming and technical changes.

                                TITLE V

Section 501--Findings

    Amends Section 2(a) of the Rehabilitation Act of 1973 (29 
U.S.C. 701(a)) to include a finding regarding the need to 
improve services for students with disabilities under the Act.

Section 502--Rehabilitation services administration

    Amends the Rehabilitation Act of 1973 (29 U.S.C. 701 et 
seq.) to make the position of Commissioner of the 
Rehabilitation Services Administration a director appointed by 
the Secretary of Education and to remove the requirement that 
the position be confirmed by the Senate; applies this change to 
directors appointed after the date of enactment of the Act.

Section 503--Definitions

    Amends Section 7 of the Rehabilitation Act of 1973 (29 
U.S.C. 705) to add a new definition for ``student with a 
disability.''

Section 504--State plan

    Amends Section 101(a) of the Rehabilitation Act of 1973 (29 
U.S.C. 721(a)) to make data reporting consistent with the 
common performance measures required under Title I of the 
Workforce Investment Act; to allow consultation and technical 
assistance between the State Vocational Rehabilitation agency 
and educational agencies to occur through alternative means of 
meeting participation; to require coordination and 
collaboration with the state agencies implementing the 
Assistive Technology Act of 1998; to require the statewide 
assessment of the rehabilitation needs of individuals with 
disabilities to include students with disabilities and their 
needs for transition services and to require a statewide 
assessment of the transition services provided under the Act; 
to require the development of strategies for improving and 
expanding Vocational Rehabilitation services for students with 
disabilities; and to require states to include in their state 
plans how they will carry out the Collaboration with Industry 
grant program and transition services for students with 
disabilities.

Section 505--Scope of services

    Amends Section 103 of the Rehabilitation Act of 1973 (29 
U.S.C. 723) by specifying the types of transition services to 
be provided to students with disabilities; to expand the types 
of services Vocational Rehabilitation agencies may provide to 
facilitate the transition of groups of students with 
disabilities from secondary education to postsecondary 
education or employment; and to allow state Vocational 
Rehabilitation agencies to develop assistive technology 
programs coordinated with services provided under the Assistive 
Technology Act of 1998 for groups of individuals with 
disabilities.

Section 506--Standards and indicators

    Amends Section 106(a) of the Rehabilitation Act of 1973 (29 
U.S.C. 726(a)) to require the standards and indicators for 
Vocational Rehabilitation programs to be consistent with the 
core indicators of performance under the Workforce Investment 
Act; and allow the state to develop additional indicators for 
Vocational Rehabilitation services; and require the director to 
direct the state to revise its state plan if the state has not 
met acceptable performance levels.

Section 507--Collaboration with industry

    Amends the Rehabilitation Act of 1973 (29 U.S.C. 729) to 
add a new Section 109A to require states to set aside one-half 
of 1 percent of their state Vocational Rehabilitation 
allotments to make grants to facilitate partnerships with 
private industry to support job training and placement 
programs.

Section 508--Reservation for expanded transition services

    Amends the Rehabilitation Act of 1973 (29 U.S.C. 730) to 
add a new Section 110A to require states to set aside at least 
10 percent of their state Vocational Rehabilitation allotments 
to provide transition services to students with disabilities.

Section 509--Client assistance program

    Amends Section 112(e)(1) of the Rehabilitation Act of 1973 
(29 U.S.C. 732(e)(1)) to require the Secretary of Education to 
make client assistance program grants to the American Indian 
Consortium consistent with the amounts provided to territories 
under the program.

Section 510--Title III amendments

    Amends Title III of the Rehabilitation Act of 1973 (U.S.C. 
771 et seq.) by repealing In-Service Training of Rehabilitation 
Personnel, Migrant and Seasonal Farmworkers, and Recreational 
Programs; and amending the Parent Information and Training 
Program to expand coordination requirements with entities 
funded under the Individuals with Disabilities Education Act 
and requiring a reservation of funds for coordination 
activities.

Section 511--Repeal of title VI

    Amends the Rehabilitation Act of 1973 (29 U.S.C. 701 et 
seq.) by repealing the Projects with Industry and Supported 
Employment Services for Individuals with the Most Significant 
Disabilities programs.

Section 512--Chairperson

    Amends Section 705(b)(5) of the Rehabilitation Act of 1973 
(29 U.S.C. 796(b)(5)) to clarify that statewide independent 
living councils are responsible for selecting the chairperson 
of the council from among the council's voting membership.

Section 513--Authorization of appropriations

    Amends the Rehabilitation Act of 1973 (29 U.S.C. 701) to 
authorize appropriations for this Act.

Section 514--Conforming amendments

    Amends Section 1(b) of the Rehabilitation Act of 1973 to 
update the Act's table of contents.

                       Explanation of Amendments

    The amendments, including the amendment in the nature of a 
substitute, are explained in the body of this report.

              Application of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch. H.R. 803 streamlines federal workforce development 
programs, strengthens the employer-driven workforce development 
system, expands decision-making at the local level, improves 
accountability and transparency, simplifies reporting 
requirements, encourages more training to meet in-demand job 
opportunities, and improves adult education and vocational 
rehabilitation.

                       Unfunded Mandate Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandates Reform Act, P.L. 104-4) requires a statement of 
whether the provisions of the reported bill include unfunded 
mandates. This issue is addressed in the CBO letter.

                           Earmark Statement

    H.R. 803 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of House Rule XXI.

                            Roll Call Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee Report to include for 
each record vote on a motion to report the measure or matter 
and on any amendments offered to the measure or matter the 
total number of votes for and against and the names of the 
Members voting for and against.
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>

                             Correspondence

    Exchange of letters with the Committee on Agriculture, the 
Committee on Energy and Commerce, the Committee on the 
Judiciary, the Committee on Transportation and Infrastructure, 
and the Committee on Veterans' Affairs.
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>

         Statement of General Performance Goals and Objectives

    In accordance with clause (3)(c) of House Rule XIII, the 
goal of H.R. 803 is to reform and improve the federal workforce 
development systems. The Committee expects the Department of 
Labor to comply with these provisions and implement the changes 
to the law in accordance with these stated goals.

                    Duplication of Federal Programs

    H.R. 803 streamlines and eliminates 35 duplicative 
programs, including 26 identified in a 2011 report by the 
Government Accountability Office.

                  Disclosure of Directed Rule Makings

    The committee estimates that enacting H.R. 803 does not 
specifically direct the completion of any specific rule makings 
within the meaning of 5 U.S.C. 551.

  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the Committee's oversight findings and recommendations are 
reflected in the body of this report.

               New Budget Authority and CBO Cost Estimate

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives and section 
308(a) of the Congressional Budget Act of 1974 and with respect 
to requirements of clause 3(c)(3) of rule XIII of the Rules of 
the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the Committee has received 
the following estimate for H.R. 803 from the Director of the 
Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, March 8, 2013.
Hon. John Kline,
Chairman, Committee on Education and the Workforce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 803, the 
Supporting Knowledge and Investing in Lifelong Skills Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CB0 staff contacts are Christina 
Hawley Anthony and David Rafferty.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

H.R. 803--Supporting Knowledge and Investing in Lifelong Skills Act

    Summary: H.R. 803 would consolidate job training programs 
under the Workforce Investment Act of 1998 (WIA) into a single 
funding stream. It also would amend the Wagner-Peyser Act, 
reauthorize adult-education programs, and reauthorize programs 
under the Rehabilitation Act of 1973 (RA). Those programs, 
which received discretionary funding of $7 billion and 
mandatory funding of $3 billion in 2013, provide job training, 
adult education, and employment service assistance.
    Enacting the bill would affect direct spending, but those 
costs are already assumed to continue in CBO's baseline; 
therefore, pay-as-you-go procedures do not apply. (Enacting the 
bill would not affect revenues.)
    Implementing the bill would affect discretionary spending. 
Assuming appropriation of the authorized amounts, CBO estimates 
that implementing H.R. 803 would cost $26 billion over the 
2014-2018 period.
    H.R. 803 would not impose intergovernmental or private-
sector mandates as defined in the Unfunded Mandates Reform Act 
(UMRA).
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 803 is shown in the following table. 
The costs of this legislation fall within budget function 500 
(education, employment, training, and social services).

----------------------------------------------------------------------------------------------------------------
                                                                 By fiscal year, in millions of dollars--
                                                         -------------------------------------------------------
                                                            2014     2015     2016     2017     2018   2014-2018
----------------------------------------------------------------------------------------------------------------
                                           CHANGES IN DIRECT SPENDINGa
Estimated Budget Authority..............................        0        0        0        0        0         0
Estimated Outlays.......................................        0        0        0        0        0         0

                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Title I: Amendments to the Workforce Investment Act:
    Authorization Level.................................    6,245    6,245    6,245    6,245    6,245    31,227
    Estimated Outlays...................................      531    4,622    5,496    5,746    5,933    22,327
Title II: Adult Education and Family Literacy Education
 Act:
    Authorization Level.................................      606      606      606      606      606     3,030
    Estimated Outlays...................................       18      455      576      606      606     2,260
Title III: Amendments to the Wagner-Peyser Act:
    Authorization Level.................................       63       63       63       63       63       317
    Estimated Outlays...................................       29       63       63       63       63       282
Title V: Amendments to the Rehabilitation Act:
    Authorization Level.................................      328      328      328      328      328     1,640
    Estimated Outlays...................................       71      260      320      328      328     1,307
    Total Changes in Discretionary Spending:
        Authorization Level.............................    7,243    7,243    7,243    7,243    7,243    36,214
        Estimated Outlays...............................      649    5,400    6,455    6,743    6,931   26,177
----------------------------------------------------------------------------------------------------------------
Note: Components may not sum to totals because of rounding.
aPursuant to the Balanced Budget and Emergency Deficit Control Act of 1985, the cost of extending the grants to
  provide vocational rehabilitation services is assumed in CBO's current baseline projections and is therefore
  not included in the costs attributable to the bill. CB0 estimates that the cost of extending the state grants
  through 2022 would result in outlays of about $32 billion.

    Basis of estimate: This estimate assumes that H.R. 803 will 
be enacted near the start of fiscal year 2014, and that the 
specified authorization amounts will be appropriated for fiscal 
year 2014 and each subsequent fiscal year. The estimated 
outlays reflect historical spending patterns for the affected 
programs.

Direct spending

    H.R. 803 would reauthorize mandatory grants to states to 
provide vocational rehabilitation services. Those grants are 
currently authorized through fiscal year 2013. H.R. 803 would 
extend the authorization for the state grants through 2020, 
which would subsequently be extended for one year each under 
the RA and the General Education Provisions Act. Pursuant to 
the Balanced Budget and Emergency Deficit Control Act of 1985, 
the cost of extending the grants to provide vocational 
rehabilitation services is assumed in CBO' s current baseline 
projections and is therefore not included in the costs 
attributable to the bill. CBO estimates that the cost of 
extending the state grants through 2022 would result in outlays 
of about $32 billion.
    H.R. 803 would authorize the appropriation of $3.1 billion 
per year for each of the next eight years, equal to the amount 
the Congress appropriated in fiscal year 2012. However, funding 
for the mandatory state grants is determined by a formula in 
the RA. Funding each year is equal to the previous year's 
funding level adjusted by the year-over-year change in the 
consumer price index (CPI) as of October 15 of the second 
preceding year. Because H.R. 803 would not affect that formula, 
CBO estimates that the CPI formula would continue to determine 
the funding level, rather than the stated authorization level. 
In fiscal year 2014, CBO estimates that state grants under the 
RA would be funded at $3.3 billion; by 2022, funding for state 
grants would rise to an estimated $3.9 billion.

Spending subject to appropriation

    H.R. 803 would reauthorize and amend the WIA, the Adult 
Education and Family Literacy Act, provisions of the Wagner-
Peyser Act, and the RA. Most of the authorizations for those 
programs have expired, but are extended through 2013 because 
the Congress provided funds for those programs for 2013. Under 
H.R. 803, the authorizations of appropriations for those 
programs would total about $7.2 billion in 2014.
    For ease of comparison to the proposed authorization 
levels, CBO has shown the most recent level of funding provided 
by the Congress for each title. Estimated funding for 2013 is 
based on the amount the Congress provided in the most recent 
continuing resolution, which expires on March 27, 2013, and is 
extrapolated for the entire fiscal year. Those estimates do not 
include any of the effects from the across-the-board cuts 
mandated in the Budget Control Act of 2011 and specified in the 
sequestration report issued March 1, 2013, by the Office of 
Management and Budget.
    Title I: Amendments to the Workforce Investment Act. Title 
I would revise and reauthorize the WIA by consolidating 
separate grants for adults, dislocated workers, veterans and 
youth (including Job Corps grants) and some employment service 
functions currently authorized under the Wagner-Peyser Act into 
a single funding stream. Those programs, which received 
approximately $6.3 billion in fiscal year 2013, would be 
authorized for fiscal years 2014 through 2020. Assuming the 
appropriation of the authorized amounts, CBO estimates that 
implementing title I would cost about $22.3 billion over the 
2014-2018 period.
    Title II: Adult Education and Family Literacy Education 
Act. Title II would revise and reauthorize the adult education 
programs in title II of the Workforce Investment Act. The bill 
would authorize the appropriation of about $600 million for 
state grants and national activities for each of fiscal years 
2014 through 2021, similar to the amount the Congress provided 
in 2013. (The bill would repeal authorizing language for the 
National Institute for Literacy, which has not received an 
appropriation since fiscal year 2010.) CBO estimates that 
implementing title II would cost about $2.3 billion over the 
2014-2018 period, assuming appropriation of the authorized 
amounts.
    Title III: Amendments to the Wagner-Peyser Act. Title III 
would reauthorize labor market information functions of the 
Wagner-Peyser Act and would authorize appropriations for those 
purposes at $63 million for each of fiscal years 2014 through 
2020. (In 2013, an estimated $63 million was appropriated for 
similar purposes.) CBO estimates that implementing title III 
would cost $282 million over the 2014-2018 period, assuming 
appropriation of the authorized amounts.
    Title V: Amendments to the Rehabilitation Act. Title V 
would revise and reauthorize existing discretionary grant 
programs under the RA. The authorizations for those programs 
have expired but are extended through 2013 because the Congress 
appropriated funds for them for 2013. The bill would 
reauthorize the programs through 2020.
    Department of Education Programs. The Department of 
Education runs a variety of categorical grant and demonstration 
programs under the RA--primarily aimed at training, employment 
support for the disabled, independent living, research, and 
advocacy projects. The bill would authorize the appropriation 
of $317 million for those programs for each of fiscal years 
2014 through 2020, about $30 million less than provided for 
those programs in fiscal year 2013. (The bill also would repeal 
the underlying authority for state grants for supported 
employment, and rehabilitation services for migrant and 
seasonal farmworkers, for which the Congress provided a total 
of $30 million in fiscal year 2013.) CBO estimates that 
implementing those provisions would cost nearly $1.3 billion 
over the 2014-2018 period, assuming appropriation of the 
authorized amounts.
    National Council on Disability. The Council is responsible 
for reviewing federal laws and policies affecting individuals 
with disabilities. The bill would authorize the appropriation 
of $3 million for the Council for each of fiscal years 2014 
through 2020, equal to the estimated amount appropriated for 
fiscal year 2013. CBO estimates that implementing this 
provision would cost $15 million over the 2014-2018 period.
    Architectural and Transportation Barriers Compliance Board. 
The Board develops guidelines to ensure access to buildings, 
transportation vehicles, and telecommunications equipment for 
individuals with disabilities. The bill would authorize the 
appropriation of $7 million for the Board for each of fiscal 
years 2014 through 2020, equal to the estimated amount 
appropriated for fiscal year 2013. CBO estimates that 
implementing this provision would cost $35 million over the 
2014-2018 period.
    Pay-As-You-Go Considerations. None.
    Intergovernmental and private-sector impact. H.R. 803 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments. By consolidating and repealing grant 
programs, the bill would decrease the amount of assistance that 
state, local, and tribal governments receive for employment 
services, job training, and adult education and literacy 
services. Such changes to grant programs are not mandates as 
defined in UMRA.
    Estimate prepared by: Federal costs: Workforce Investment 
Act and Wagner-Peyser--Christina Hawley Anthony; Adult 
Education and National Institute for Literacy--Justin Humphrey; 
Rehabilitation Act--David Rafferty; Impact on State, Local, and 
Tribal governments: Lisa Ramirez-Branum; Impact on the Private 
Sector: Vi Nguyen.
    Estimate approved by: Holly Harvey, Deputy Assistant 
Director for Budget Analysis.

                        Committee Cost Estimate

    Clause 3(d)(1) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison of the 
costs that would be incurred in carrying out H.R. 803. However, 
clause 3(d)(2)(B) of that rule provides that this requirement 
does not apply when the Committee has included in its report a 
timely submitted cost estimate of the bill prepared by the 
Director of the Congressional Budget Office under section 402 
of the Congressional Budget Act.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

                    WORKFORCE INVESTMENT ACT OF 1998


SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

[Sec. 1. Short title; table of contents.

                 [TITLE I--WORKFORCE INVESTMENT SYSTEMS

              [Subtitle A--Workforce Investment Definitions

[Sec. 101. Definitions.

      [Subtitle B--Statewide and Local Workforce Investment Systems

[Sec. 106. Purpose.

                      [Chapter 1--State Provisions

[Sec. 111. State workforce investment boards.
[Sec. 112. State plan.

                      [Chapter 2--Local Provisions

[Sec. 116. Local workforce investment areas.
[Sec. 117. Local workforce investment boards.
[Sec. 118. Local plan.

          [Chapter 3--Workforce Investment Activities Providers

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

                      [Chapter 4--Youth Activities

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

    [Chapter 5--Adult and Dislocated Worker Employment and Training 
                               Activities

[Sec. 131. General authorization.
[Sec. 132. State allotments.
[Sec. 133. Within State allocations.
[Sec. 134. Use of funds for employment and training activities.

                     [Chapter 6--General Provisions

[Sec. 136. Performance accountability system.
[Sec. 137. 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. Operating plan.
[Sec. 152. Standards of conduct.
[Sec. 153. Community participation.
[Sec. 154. Industry councils.
[Sec. 155. Advisory committees.
[Sec. 156. Experimental, research, and demonstration projects.
[Sec. 157. Application of provisions of Federal law.
[Sec. 158. Special provisions.
[Sec. 159. Management information.
[Sec. 160. General provisions.
[Sec. 161. Authorization of appropriations.

                     [Subtitle D--National Programs

[Sec. 166. Native American programs.
[Sec. 167. Migrant and seasonal farmworker programs.
[Sec. 168. Veterans' workforce investment programs.
[Sec. 169. Youth opportunity grants.
[Sec. 170. Technical assistance.
[Sec. 171. Demonstration, pilot, multiservice, research, and multistate 
          projects.
[Sec. 172. Evaluations.
[Sec. 173. National emergency grants.
[Sec. 173A. YouthBuild program
[Sec. 174. 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. Administrative provisions.
[Sec. 190. References.
[Sec. 191. State legislative authority.
[Sec. 192. Workforce flexibility plans.
[Sec. 193. Use of certain real property.
[Sec. 194. Continuation of State activities and policies.
[Sec. 195. General program requirements.

             [Subtitle F--Repeals and Conforming Amendments

[Sec. 199. Repeals.
[Sec. 199A. Conforming amendments.

                 [TITLE II--ADULT EDUCATION AND LITERACY

[Sec. 201. Short title.
[Sec. 202. Purpose.
[Sec. 203. Definitions.
[Sec. 204. Home schools.
[Sec. 205. Authorization of appropriations.

           [Subtitle A--Adult Education and Literacy Programs

                     [Chapter 1--Federal Provisions

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

                      [Chapter 2--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.

                      [Chapter 3--Local Provisions

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

                     [Chapter 4--General Provisions

[Sec. 241. Administrative provisions.
[Sec. 242. National Institute for Literacy.
[Sec. 243. National leadership activities.

                          [Subtitle B--Repeals

[Sec. 251. Repeals.

           [TITLE III--WORKFORCE INVESTMENT-RELATED ACTIVITIES

                     [Subtitle A--Wagner-Peyser Act

[Sec. 301. Definitions.
[Sec. 302. Functions.
[Sec. 303. Designation of State agencies.
[Sec. 304. Appropriations.
[Sec. 305. Disposition of allotted funds.
[Sec. 306. State plans.
[Sec. 307. Repeal of Federal advisory council.
[Sec. 308. Regulations.
[Sec. 309. Employment statistics.
[Sec. 310. Technical amendments.
[Sec. 311. Effective date.

                [Subtitle B--Linkages With Other Programs

[Sec. 321. Trade Act of 1974.
[Sec. 322. Veterans' employment programs.
[Sec. 323. Older Americans Act of 1965.

         [Subtitle C--Twenty-First Century Workforce Commission

[Sec. 331. Short title.
[Sec. 332. Findings.
[Sec. 333. Definitions.
[Sec. 334. Establishment of Twenty-First Century Workforce Commission.
[Sec. 335. Duties of the Commission.
[Sec. 336. Powers of the Commission.
[Sec. 337. Commission personnel matters.
[Sec. 338. Termination of the Commission.
[Sec. 339. Authorization of appropriations.

 [Subtitle D--Application of Civil Rights and Labor-Management Laws to 
                       the Smithsonian Institution

[Sec. 341. Application of civil rights and labor-management laws to the 
          Smithsonian Institution.

            [TITLE IV--REHABILITATION ACT AMENDMENTS OF 1998

[Sec. 401. Short title.
[Sec. 402. Title.
[Sec. 403. General provisions.
[Sec. 404. Vocational rehabilitation services.
[Sec. 405. Research and training.
[Sec. 406. Professional development and special projects and 
          demonstrations.
[Sec. 407. National Council on Disability.
[Sec. 408. Rights and advocacy.
[Sec. 409. Employment opportunities for individuals with disabilities.
[Sec. 410. Independent living services and centers for independent 
          living.
[Sec. 411. Repeal.
[Sec. 412. Helen Keller National Center Act.
[Sec. 413. President's Committee on Employment of People With 
          Disabilities.
[Sec. 414. Conforming amendments.

                      [TITLE V--GENERAL PROVISIONS

[Sec. 501. State unified plan.
[Sec. 502. Definitions for indicators of performance.
[Sec. 503. Incentive grants.
[Sec. 504. Privacy.
[Sec. 505. Buy-American requirements.
[Sec. 506. Transition provisions.
[Sec. 507. Effective date.]
Sec. 1. Short title; table of contents.

                  TITLE I--WORKFORCE INVESTMENT SYSTEMS

              Subtitle A--Workforce Investment Definitions

Sec. 101. Definitions.

      Subtitle B--Statewide and Local Workforce Investment Systems

Sec. 106. Purpose.

                       Chapter 1--State Provisions

Sec. 111. State workforce investment boards.
Sec. 112. State plan.

                       Chapter 2--Local Provisions

Sec. 116. Local workforce investment areas.
Sec. 117. Local workforce investment boards.
Sec. 118. Local plan.

          Chapter 3--Workforce Investment Activities Providers

Sec. 121. Establishment of one-stop delivery systems.
Sec. 122. Identification of eligible providers of training services.
Sec. 123. [Repealed].

                          Chapter 4--[Repealed]

              Chapter 5--Employment and Training Activities

Sec. 131. General authorization.
Sec. 132. State allotments.
Sec. 133. Within State allocations.
Sec. 134. Use of funds for employment and training activities.

                      Chapter 6--General Provisions

Sec. 136. Performance accountability system.
Sec. 137. 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. [Repealed].
Sec. 156. Technical assistance to centers.
Sec. 157. Application of provisions of Federal law.
Sec. 158. Special provisions.
Sec. 159. Performance accountability and management.
Sec. 160. General provisions.
Sec. 161. Authorization of appropriations.

                      Subtitle D--National Programs

Sec. 166. [Repealed].
Sec. 167. [Repealed].
Sec. 168. [Repealed].
Sec. 169. [Repealed].
Sec. 170. Technical assistance.
Sec. 171. [Repealed].
Sec. 172. Evaluations.
Sec. 173. [Repealed].
Sec. 173A. [Repealed].
Sec. 174. [Repealed].

                       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. Administrative provisions.
Sec. 190. References.
Sec. 191. State legislative authority.
Sec. 192. [Repealed].
Sec. 193. Transfer of Federal equity in State employment security real 
          property to the States.
Sec. 194. [Repealed].
Sec. 195. General program requirements.
Sec. 196. Federal agency staff.

              Subtitle F--Repeals and Conforming Amendments

Sec. 199. Repeals.
Sec. 199A. Conforming amendments.

         TITLE II--ADULT EDUCATION AND FAMILY LITERACY EDUCATION

Sec. 201. Short title.
Sec. 202. Purpose.
Sec. 203. Definitions.
Sec. 204. Home schools.
Sec. 205. Authorization of appropriations.

                     Subtitle A--Federal Provisions

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

                      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 activities.

           TITLE III--WORKFORCE INVESTMENT-RELATED ACTIVITIES

                      Subtitle A--Wagner-Peyser Act

Sec. 301. Definitions.
Sec. 302. Functions.
Sec. 303. Designation of State agencies.
Sec. 304. Appropriations.
Sec. 305. Disposition of allotted funds.
Sec. 306. State plans.
Sec. 307. Repeal of Federal advisory council.
Sec. 308. Regulations.
Sec. 309. Employment statistics.
Sec. 310. Technical amendments.
Sec. 311. Effective date.

                Subtitle B--Linkages With Other Programs

Sec. 321. Trade Act of 1974.
Sec. 322. Veterans' employment programs.
Sec. 323. Older Americans Act of 1965.

                         Subtitle C--[Repealed]

Subtitle D--Application of Civil Rights and Labor-Management Laws to the 
                         Smithsonian Institution

Sec. 341. Application of civil rights and labor-management laws to the 
          Smithsonian Institution.

             TITLE IV--REHABILITATION ACT AMENDMENTS OF 1998

Sec. 401. Short title.
Sec. 402. Title.
Sec. 403. General provisions.
Sec. 404. Vocational rehabilitation services.
Sec. 405. Research and training.
Sec. 406. Professional development and special projects and 
          demonstrations.
Sec. 407. National Council on Disability.
Sec. 408. Rights and advocacy.
Sec. 409. Employment opportunities for individuals with disabilities.
Sec. 410. Independent living services and centers for independent 
          living.
Sec. 411. [Repeal].
Sec. 412. Helen Keller National Center Act.
Sec. 413. President's Committee on Employment of People With 
          Disabilities.
Sec. 414. Conforming amendments.

                       TITLE V--GENERAL PROVISIONS

Sec. 501. State unified plan.
Sec. 502. [Repealed].
Sec. 503. [Repealed].
Sec. 504. Privacy.
Sec. 505. Buy-American requirements.
Sec. 506. [Repealed].
Sec. 507. Effective date.

                 TITLE I--WORKFORCE INVESTMENT SYSTEMS

              Subtitle A--Workforce Investment Definitions

SEC. 101. DEFINITIONS.

  In this title:
          (1) Accrued expenditures.--The term ``accrued 
        expenditures'' means charges incurred by recipients of 
        funds under this title for a given period requiring the 
        provision of funds for goods or other tangible property 
        received; services performed by employees, contractors, 
        subgrantees, subcontractors, and other payees; and 
        other amounts becoming owed under programs assisted 
        under this title for which no current services or 
        performance is required, such as annuities, insurance 
        claims, and other benefit payments.
          (2) Administrative costs.--The term ``administrative 
        costs'' means expenditures incurred by State and local 
        workforce investment boards, direct recipients 
        (including State grant recipients under subtitle B and 
        recipients of awards under subtitles C and D), 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 this title which are not related 
        to the direct provision of workforce investment 
        services (including services to participants and 
        employers). Such costs include both personnel and non-
        personnel and both direct and indirect.
          [(1)] (3) Adult.--[Except in sections 127 and 132, 
        the] The term ``adult'' means an individual who is age 
        18 or older.
          [(2)] (4) 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.

           *       *       *       *       *       *       *

          [(3) Area vocational education school.--The term 
        ``area vocational education school'' has the meaning 
        given the term ``area career and technical education 
        school'' in section 3 of the Carl D. Perkins Career and 
        Technical Education Act of 2006.]
          (5) Area career and technical education school.--The 
        term ``area career and technical education school'' has 
        the meaning given the term in section 3(3) of the Carl 
        D. Perkins Career and Technical Education Act of 2006 
        (20 U.S.C. 2302(3)).
          [(4)] (6) Basic skills deficient.--The term ``basic 
        skills deficient'' means, with respect to an 
        individual, that the individual has English reading, 
        writing, or computing skills at or below the 8th grade 
        level (or such other level as the Governor may 
        establish) on a generally accepted standardized test or 
        a comparable score on a criterion-referenced test.
          [(5)] (7) Case management.--The term ``case 
        management'' means the provision of a client-centered 
        approach in the 
        delivery of services, designed--
                  (A) * * *

           *       *       *       *       *       *       *

          [(6)] (8) Chief elected official.--The term ``chief 
        elected official'' means--
                  (A) * * *

           *       *       *       *       *       *       *

          [(7)] (9) Community-based organization.--The term 
        ``community-based organization'' means a private 
        nonprofit 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 investment.
          [(8)] (10) Customized training.--The term 
        ``customized
        training'' means training--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) for which the employer pays for [not less 
                than 50 percent of the cost of the training] a 
                significant portion of the cost of training, as 
                determined by the local board (or, in the case 
                of an employer in multiple local areas in the 
                State, as determined by the Governor), taking 
                into account the size of the employer and such 
                other factors as the local board determines to 
                be appropriate.
          [(9)] (11) Dislocated worker.--The term ``dislocated 
        worker'' means an individual who--
                  (A)(i) * * *
                  (ii)(I) * * *
                  (II) has been employed for a duration 
                sufficient to demonstrate, to the appropriate 
                entity at a one-stop center referred to in 
                [section 134(c)] 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

           *       *       *       *       *       *       *

                  (B)(i) * * *

           *       *       *       *       *       *       *

                  (iii) for purposes of eligibility to receive 
                services other than training services described 
                in section [134(d)(4)] 134(c)(4), [intensive 
                services described in section 134(d)(3)] work 
                ready services described in section 
                117(d)(5)(C), 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; [or]
                  (D) is a displaced homemaker[.]; or
                  (E)(i) is the spouse of a member of the Armed 
                Forces on active duty for a period of more than 
                30 days (as defined in section 101(d)(2) of 
                title 10, United States Code) who has 
                experienced a loss of employment as a 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 who meets the criteria 
                described in paragraph (12)(B).
          [(10)] (12) 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; [and] or
                  (ii) is the spouse of a member of the Armed 
                Forces on active duty for a period of more than 
                30 days (as defined in section 101(d)(2) of 
                title 10, United States Code) 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

           *       *       *       *       *       *       *

          [(11)] (13) Economic development agencies.--The term 
        ``economic development agencies'' includes local or 
        regional planning and zoning commissions or boards, 
        community development agencies, and other local or 
        regional agencies and institutions responsible for 
        regulating, promoting, or assisting in local or 
        regional economic development.

           *       *       *       *       *       *       *

          [(12)] (14) Eligible provider.--The term ``eligible 
        provider'', used with respect to--
                  (A) training services, means a provider who 
                is identified in accordance with [section 
                122(e)(3)] section 122;
                  [(B) intensive services, means a provider who 
                is identified or awarded a contract as 
                described in section 134(d)(3)(B);]
                  (B) work ready services, means a provider who 
                is identified or awarded a contract as 
                described in section 117(d)(5)(C); or
                  [(C) youth activities, means a provider who 
                is awarded a grant or contract in accordance 
                with section 123; or]
                  [(D)] (C) other workforce investment 
                activities, means a public or private entity 
                selected to be responsible for such activities, 
                such as a one-stop operator designated or 
                certified under section 121(d).
          [(13) Eligible youth.--Except as provided in 
        subtitles C and D, the term ``eligible youth'' means an 
        individual who--
                  [(A) is not less than age 14 and not more 
                than 
                age 21;
                  [(B) is a low-income individual; and
                  [(C) is an individual who is one or more of 
                the following:
                          [(i) Deficient in basic literacy 
                        skills.
                          [(ii) A school dropout.
                          [(iii) Homeless, a runaway, or a 
                        foster child.
                          [(iv) Pregnant or a parent.
                          [(v) An offender.
                          [(vi) An individual who requires 
                        additional assistance to complete an 
                        educational program, or to secure and 
                        hold employment.]
          [(14)] (15) 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] individual.
          [(15)] (16) Family.--The term ``family'' means two or 
        more persons related by blood, marriage, or decree of 
        court, who are living in a single residence, and are 
        included in one or more of the following categories:
                  (A) * * *

           *       *       *       *       *       *       *

          [(16)] (17) Governor.--The term ``Governor'' means 
        the chief executive of a State.
          [(17)] (18) Individual with a disability.--
                  (A) * * *

           *       *       *       *       *       *       *

          [(18)] (19) 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.
          [(19)] (20) Literacy.--The term ``literacy'' has the 
        meaning given the term in section 203.
          [(20)] (21) Local area.--The term ``local area'' 
        means a local workforce investment area designated 
        under section 116.
          [(21)] (22) Local board.--The term ``local board'' 
        means a local workforce investment board established 
        under section 117.
          [(22)] (23) Local performance measure.--The term 
        ``local performance measure'' means a performance 
        measure established under section 136(c).
          [(23)] (24) 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.
          [(24) 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 based on the most 
        recent lower living family budget issued by the 
        Secretary.]
          (25) Low-income individual.--The term ``low-income 
        individual'' means an individual who--
                  (A) * * *
                  (B) received an income, or is a member of a 
                family that received a total family income, for 
                the 6-month period prior to application for the 
                program involved (exclusive of unemployment 
                compensation, child support payments, payments 
                described in subparagraph (A), and old-age and 
                survivors insurance benefits received under 
                section 202 of the Social Security Act (42 
                U.S.C. 402)) that, in relation to family size, 
                does not exceed the [higher of--
                          [(i) the poverty line, for an 
                        equivalent period; or
                          [(ii) 70 percent of the lower living 
                        standard income level, for an 
                        equivalent period;] poverty line for an 
                        equivalent period;

           *       *       *       *       *       *       *

                  (D) receives or is eligible to receive free 
                or reduced price lunch under the Richard B. 
                Russell National School Lunch Act (42 U.S.C. 
                1751 et seq.);
                  [(D)] (E) qualifies as a homeless individual, 
                as defined in subsections (a) and (c) of 
                section 103 of the Stewart B. McKinney Homeless 
                Assistance Act (42 U.S.C. 11302);
                  [(E)] (F) is a foster child on behalf of whom 
                State or local government payments are made; or
                  [(F)] (G) in cases permitted by regulations 
                promulgated by the Secretary of Labor, is an 
                individual with a disability whose own income 
                meets the requirements of a program described 
                in subparagraph (A) or of subparagraph (B), but 
                who is a member of a family whose income does 
                not meet such requirements.

           *       *       *       *       *       *       *

          (32) Outlying area.--The term ``outlying area'' means 
        the United States Virgin Islands, Guam, American Samoa, 
        the Commonwealth of the Northern Mariana Islands, [the 
        Republic of the Marshall Islands, the Federated States 
        of Micronesia,] and the Republic of Palau.
          [(33) Out-of-school youth.--The term ``out-of-school 
        youth'' means--
                  [(A) an eligible youth who is a school 
                dropout; or
                  [(B) an eligible youth who has received a 
                secondary school diploma or its equivalent but 
                is basic skills deficient, unemployed, or 
                underemployed.]
          (33) Out-of-school youth.--The term ``out-of-school 
        youth'' means--
                  (A) an at-risk youth who is a school dropout; 
                or
                  (B) an at-risk youth who has received a 
                secondary school diploma or its recognized 
                equivalent but is basic skills deficient, 
                unemployed, or underemployed.

           *       *       *       *       *       *       *

          (38) Rapid response activity.--The term ``rapid 
        response activity'' means an activity provided by a 
        State, or by an entity designated by a State, with 
        funds provided by the State under section 
        [134(a)(1)(A)] 134(a)(1)(B), 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) * * *

           *       *       *       *       *       *       *

          [(49) Veteran; related definition.--
                  [(A) Veteran.--The term ``veteran'' means an 
                individual who served in the active military, 
                naval, or air service, and who was discharged 
                or released from such service under conditions 
                other than dishonorable.
                  [(B) Recently separated veteran.--The term 
                ``recently separated veteran'' means any 
                veteran who applies for participation under 
                this title within 48 months after the discharge 
                or release from active military, naval, or air 
                service.
          [(50) Vocational education.--The term ``vocational 
        education'' has the meaning given the term ``career and 
        technical education'' in section 3 of the Carl D. 
        Perkins Career and Technical Education Act of 2006.]
          (49) Veteran.--The term ``veteran'' has the same 
        meaning given the term in section 2108(1) of title 5, 
        United States Code.
          (50) 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).
          (51) Workforce investment activity.--The term 
        ``workforce investment activity'' means an employment 
        and training activity[, and a youth activity].
          [(52) Youth activity.--The term ``youth activity'' 
        means an activity described in section 129 that is 
        carried out for eligible youth (or as described in 
        section 129(c)(5)).
          [(53) Youth council.--The term ``youth council'' 
        means a council established under section 117(h).]
          (52) At-risk youth.--Except as provided in subtitle 
        C, the term ``at-risk youth'' means an individual who--
                  (A) is not less than age 16 and not more than 
                age 24;
                  (B) is a low-income individual; and
                  (C) is an individual who is one or more of 
                the following:
                          (i) a secondary school dropout;
                          (ii) a youth in foster care 
                        (including youth aging out of foster 
                        care);
                          (iii) a youth offender;
                          (iv) a youth who is an individual 
                        with a disability; or
                          (v) a migrant youth.
          (53) Industry or sector partnership.--The term 
        ``industry or sector partnership'' means a partnership 
        of a State or local board and one or more industries 
        and other entities that have the capability to help the 
        State or local board determine the immediate and long 
        term skilled workforce needs of in-demand industries 
        and other occupations important to the State or local 
        economy, respectively.
          (54) Industry-recognized credential.--The term 
        ``industry-recognized credential'' means a credential 
        that is sought or accepted by companies within the 
        industry sector involved, across multiple States, as 
        recognized, preferred, or required for recruitment, 
        screening, or hiring.
          (55) Recognized postsecondary credential.--The term 
        ``recognized postsecondary credential'' means a 
        credential awarded by a training provider or 
        postsecondary educational institution based on 
        completion of all requirements for a program of study, 
        including coursework or tests or other performance 
        evaluations. The term includes an industry-recognized 
        credential, a certificate of completion of an 
        apprenticeship, or an associate or baccalaureate 
        degree.
          (56) Pay-for-performance contract strategy.--The term 
        ``pay-for-performance contract strategy'' means a 
        strategy in which a contract to provide a program of 
        employment and training activities incorporates--
                  (A) the performance outcome described in 
                subclauses (I) through (IV) of section 
                136(b)(2)(A)(i);
                  (B) a fixed amount that will be paid to a 
                provider of such employment and training 
                activities for each program participant who 
                achieves the agreed to levels of performance 
                based upon the outcome measures described in 
                subparagraph (A), within a defined timetable, 
                and may include a bonus payment to such 
                provider which may be used to expand the 
                capacity of such provider;
                  (C) the ability for a provider to recoup the 
                costs of training a participant who has not met 
                such outcome measures, but for whom the 
                provider is able to demonstrate that such 
                participant gained specific competencies 
                required for education and career advancement 
                that are, where feasible, tied to industry-
                recognized credentials and related standards, 
                or State licensing requirements; and
                  (D) the ability for a provider that does not 
                meet the requirements under section 122(a)(2) 
                to participate in such pay-for-performance 
                contract and to not be required to report on 
                the performance and cost information required 
                under section 122(d).

           *       *       *       *       *       *       *


      Subtitle B--Statewide and Local Workforce Investment Systems

SEC. 106. PURPOSE.

  The purpose of this subtitle is to provide workforce 
investment activities, through statewide and local workforce 
investment systems, that increase the employment, retention, 
and earnings of participants, and increase occupational skill 
attainment by participants, and, as a result, improve the 
quality of the workforce, reduce welfare dependency, and 
enhance the productivity and competitiveness of the Nation. It 
is also the purpose of this subtitle to provide workforce 
investment activities in a manner that enhances employer 
engagement, promotes customer choices in the selection of 
training services, and ensures accountability in the use of the 
taxpayer funds.

                      CHAPTER 1--STATE PROVISIONS

SEC. 111. STATE WORKFORCE INVESTMENT BOARDS.

  (a) * * *
  (b) Membership.--
          (1) In general.--The State Board shall include--
                  (A) * * *
                  [(B) 2 members of each chamber of the State 
                legislature, appointed by the appropriate 
                presiding officers of each such chamber; and]
                  [(C)] (B) representatives appointed by the 
                Governor, who are--
                          (i) representatives of business in 
                        the State, who--
                                  (I) are owners of businesses, 
                                chief executives or operating 
                                officers of businesses, and 
                                other business executives or 
                                employers with optimum 
                                policymaking or hiring 
                                authority, including members of 
                                local boards described in 
                                [section 117(b)(2)(A)(i)] 
                                section 117(b)(2)(A);
                                  [(II) represent businesses 
                                with employment opportunities 
                                that reflect the employment 
                                opportunities of the State; 
                                and]
                                  (II) represent businesses, 
                                including large and small 
                                businesses, with immediate and 
                                long-term employment 
                                opportunities in in-demand 
                                industries and other 
                                occupations important to the 
                                State economy; and

           *       *       *       *       *       *       *

                          [(iii) representatives of labor 
                        organizations, who have been nominated 
                        by State labor federations;
                          [(iv) representatives of individuals 
                        and organizations that have experience 
                        with respect to youth activities;
                          [(v) representatives of individuals 
                        and organizations that have experience 
                        and expertise in the delivery of 
                        workforce investment activities, 
                        including chief executive officers of 
                        community colleges and community-based 
                        organizations within the State;
                          [(vi)(I) the lead State agency 
                        officials with responsibility for the 
                        programs and activities that are 
                        described in section 121(b) and carried 
                        out by one-stop partners; and
                          [(II) in any case in which no lead 
                        State agency official has 
                        responsibility for such a program, 
                        service, or activity, a representative 
                        in the State with expertise relating to 
                        such program, service, or activity; and
                          [(vii) such other representatives and 
                        State agency officials as the Governor 
                        may designate, such as the State agency 
                        officials responsible for economic 
                        development and juvenile justice 
                        programs in the State.]
                          (iii) a State agency official 
                        responsible for economic development; 
                        and
                          (iv) such other representatives and 
                        State agency officials as the Governor 
                        may designate, including--
                                  (I) members of the State 
                                legislature;
                                  (II) representatives of 
                                individuals and organizations 
                                that have experience with 
                                respect to youth activities;
                                  (III) representatives of 
                                individuals and organizations 
                                that have experience and 
                                expertise in the delivery of 
                                workforce investment 
                                activities, including chief 
                                executive officers of community 
                                colleges and community-based 
                                organizations within the State;
                                  (IV) representatives of the 
                                lead State agency officials 
                                with responsibility for the 
                                programs and activities that 
                                are described in section 121(b) 
                                and carried out by one-stop 
                                partners; or
                                  (V) representatives of 
                                veterans service organizations.

           *       *       *       *       *       *       *

          [(3) Majority.--A majority of the members of the 
        State Board shall be representatives described in 
        paragraph (1)(C)(i).]
          (3) Majority.--A \2/3\ majority of the members of the 
        board shall be representatives described in paragraph 
        (1)(B)(i).
  (c) Chairperson.--The Governor shall select a chairperson for 
the State Board from among the representatives described in 
subsection [(b)(1)(C)(i)] (b)(1)(B)(i).
  [(d) Functions.--The State Board shall assist the Governor 
in--
          [(1) development of the State plan;
          [(2) development and continuous improvement of a 
        statewide system of activities that are funded under 
        this subtitle or carried out through a one-stop 
        delivery system described in section 134(c) that 
        receives funds under this subtitle (referred to in this 
        title as a ``statewide workforce investment system''), 
        including--
                  [(A) development of linkages in order to 
                assure coordination and nonduplication among 
                the programs and activities described in 
                section 121(b); and
                  [(B) review of local plans;
          [(3) commenting at least once annually on the 
        measures taken pursuant to section 113(b)(3) of the 
        Carl D. Perkins Career and Technical Education Act of 
        2006 (20 U.S.C 2323(b)(14));
          [(4) designation of local areas as required in 
        section 116;
          [(5) development of allocation formulas for the 
        distribution of funds for adult employment and training 
        activities and youth activities to local areas as 
        permitted under sections 128(b)(3)(B) and 133(b)(3)(B);
          [(6) development and continuous improvement of 
        comprehensive State performance measures, including 
        State adjusted levels of performance, to assess the 
        effectiveness of the workforce investment activities in 
        the State as required under section 136(b);
          [(7) preparation of the annual report to the 
        Secretary described in section 136(d);
          [(8) development of the statewide employment 
        statistics system described in section 15(e) of the 
        Wagner-Peyser Act; and
          [(9) development of an application for an incentive 
        grant under section 503.
  [(e) Alternative Entity.--
          [(1) In general.--For purposes of complying with 
        subsections (a), (b), and (c), a State may use any 
        State entity (including a State council, State 
        workforce development board, combination of regional 
        workforce development boards, or similar entity) that--
                  [(A) was in existence on December 31, 1997;
                  [(B)(i) was established pursuant to section 
                122 or title VII of the Job Training 
                Partnership Act, as in effect on December 31, 
                1997; or
                  [(ii) is substantially similar to the State 
                board described in subsections (a), (b), and 
                (c); and
                  [(C) includes representatives of business in 
                the State and representatives of labor 
                organizations in the State.
          [(2) References.--References in this Act to a State 
        board shall be considered to include such an entity.]
  (d) Functions.--The State board shall assist the Governor of 
the State as follows:
          (1) State plan.--Consistent with section 112, develop 
        a State plan.
          (2) Statewide workforce development system.--Review 
        and develop statewide policies and programs in the 
        State in a manner that supports a comprehensive 
        Statewide workforce development system that will result 
        in meeting the workforce needs of the State and its 
        local areas. Such review shall include determining 
        whether the State should consolidate additional 
        programs into the Workforce Investment Fund in 
        accordance with section 501(e).
          (3) Workforce and labor market information system.--
        Develop a statewide workforce and labor market 
        information system described in section 15(e) of the 
        Wagner-Peyser Act, which may include using existing 
        information conducted by the State economic development 
        entity or related entity in developing such system.
          (4) Employer engagement.--Develop strategies across 
        local areas that meet the needs of employers and 
        support economic growth in the State by enhancing 
        communication, coordination, and collaboration among 
        employers, economic development entities, and service 
        providers.
          (5) Designation of local areas.--Designate local 
        areas as required under section 116.
          (6) One-stop delivery system.--Identify and 
        disseminate information on best practices for effective 
        operation of one-stop centers, including use of 
        innovative business outreach, partnerships, and service 
        delivery strategies.
          (7) Program oversight.--Conduct the following program 
        oversight:
                  (A) Reviewing and approving local plans under 
                section 118.
                  (B) Ensuring the appropriate use and 
                management of the funds provided for State 
                employment and training activities authorized 
                under section 134.
                  (C) Preparing an annual report to the 
                Secretary described in section 136(d).
          (8) Development of performance measures.--Develop and 
        ensure continuous improvement of comprehensive State 
        performance measures, including State adjusted levels 
        of performance, as described under section 136(b).
  [(f)] (e) Conflict of Interest.--A member of a State board 
may not--
          (1) vote or participate in any action taken on a 
        matter under consideration by the State board--
                  (A) * * *

           *       *       *       *       *       *       *

  (f) Staff.--The State board may employ staff to assist in 
carrying out the functions described in subsection (d).
  (g) 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 
prior to submission of the plan, information regarding 
membership, and, on request, minutes of formal meetings of the 
State board.

SEC. 112. STATE PLAN.

  (a) In General.--For a State to be eligible to receive an 
allotment under section [127 or] 132, or to receive financial 
assistance under the Wagner-Peyser Act (29 U.S.C. 49 et seq.), 
the Governor of the State shall submit to the Secretary for 
consideration by the Secretary, a single State plan (referred 
to in this title as the ``State plan'') that outlines a [5-year 
strategy] 3-year strategy for the statewide workforce 
investment system of the State and that meets the requirements 
of section 111 and this section.
  (b) Contents.--The State plan shall include--
          (1) * * *

           *       *       *       *       *       *       *

          [(4) information describing--
                  [(A) the needs of the State with regard to 
                current and projected employment opportunities, 
                by occupation;
                  [(B) the job skills necessary to obtain such 
                employment opportunities;
                  [(C) the skills and economic development 
                needs of the State; and
                  [(D) the type and availability of workforce 
                investment activities in the State;]
          (4) information describing--
                  (A) the economic conditions in the State;
                  (B) the immediate and long-term skilled 
                workforce needs of in-demand industries, small 
                businesses, and other occupations important to 
                the State economy;
                  (C) the knowledge and skills of the workforce 
                in the State; and
                  (D) workforce development activities 
                (including education and training) in the 
                State;

           *       *       *       *       *       *       *

          [(7) the detailed plans required under section 8 of 
        the Wagner-Peyser Act (29 U.S.C. 49g);
          [(8)(A) a description of the procedures that will be 
        taken by the State to assure coordination of and avoid 
        duplication among--
                  [(i) workforce investment activities 
                authorized under this title;
                  [(ii) other activities authorized under this 
                title;
                  [(iii) programs authorized under the Wagner-
                Peyser Act (29 U.S.C. 49 et seq.), title II of 
                this Act, title I of the Rehabilitation Act of 
                1973 (29 U.S.C. 720 et seq.), part A of title 
                IV of the Social Security Act (42 U.S.C. 601 et 
                seq.), and section 6(d)(4) of the Food and 
                Nutrition Act of 2008 (7 U.S.C. 2015(d)(4)), 
                activities authorized under title V of the 
                Older Americans Act of 1965 (42 U.S.C. 3056 et 
                seq.), and career and technical education 
                activities at the postsecondary level 
                authorized under the Carl D. Perkins Career and 
                Technical Education Act of 2006 (20 U.S.C. 2301 
                et seq.);
                  [(iv) work programs authorized under section 
                6(o) of the Food and Nutrition Act of 2008 (7 
                U.S.C. 2015(o));
                  [(v) activities authorized under chapter 2 of 
                title II of the Trade Act of 1974 (19 U.S.C. 
                2271 et seq.);
                  [(vi) activities authorized under chapter 41 
                of title 38, United States Code;
                  [(vii) employment and training activities 
                carried out under the Community Services Block 
                Grant Act (42 U.S.C. 9901 et seq.);
                  [(viii) activities authorized under the 
                National and Community Service Act of 1990 (42 
                U.S.C. 12501 et seq.);
                  [(ix) employment and training activities 
                carried out by the Department of Housing and 
                Urban Development; and
                  [(x) programs authorized under State 
                unemployment compensation laws (in accordance 
                with applicable Federal law); and
          [(B) a description of the common data collection and 
        reporting processes used for the programs and 
        activities described in subparagraph (A);]
          (7) a description of the State criteria for 
        determining the eligibility of training providers in 
        accordance with section 122, including how the State 
        will take into account the performance of providers and 
        whether the training programs relate to occupations 
        that are in-demand;
          (8)(A) a description of the procedures that will be 
        taken by the State to assure coordination of, and avoid 
        duplication among, the programs and activities 
        identified under section 501(b)(2); and
          (B) a description of common data collection and 
        reporting processes used for the programs and 
        activities described in subparagraph (A), which are 
        carried out by one-stop partners, including--
                  (i) assurances that such processes use 
                quarterly wage records for performance measures 
                described in section 136(b)(2)(A) that are 
                applicable to such programs or activities; or
                  (ii) if such wage records are not being used 
                for the performance measures, an identification 
                of the barriers to using such wage records and 
                a description of how the State will address 
                such barriers within one year of the approval 
                of the plan;
          (9) a description of the process used by the State, 
        consistent with section 111(g), to provide an 
        opportunity for public comment[, including comment by 
        representatives of businesses and representatives of 
        labor organizations,] and input into development of the 
        plan, prior to submission of the plan;

           *       *       *       *       *       *       *

          (11) assurances that the State will provide, in 
        accordance with section 184 for 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 the allotments made [under 
        sections 127 and 132] under section 132;
          [(12)(A) a description of the methods and factors the 
        State will use in distributing funds to local areas for 
        youth activities and adult employment and training 
        activities under sections 128(b)(3)(B) and 
        133(b)(3)(B), including--
                  [(i) a description of how the individuals and 
                entities represented on the State board were 
                involved in determining such methods and 
                factors of distribution; and
                  [(ii) a description of how the State 
                consulted with chief elected officials in local 
                areas throughout the State in determining such 
                distribution;
          [(B) assurances that the funds will be distributed 
        equitably throughout the State, and that no local areas 
        will suffer significant shifts in funding from year to 
        year; and
          [(C) a description of the formula prescribed by the 
        Governor pursuant to section 133(b)(2)(B) for the 
        allocation of funds to local areas for dislocated 
        worker employment and training activities;]
          [(13)] (12) information specifying the actions that 
        constitute a conflict of interest prohibited in the 
        State for purposes of sections [111(f)] 111(e) and 
        117(g);
          [(14)] (13) with respect to the one-stop delivery 
        systems described in section [134(c)] 121(e) (referred 
        to individually in this title as a ``one-stop delivery 
        system''), a description of the strategy of the State 
        for assisting local areas in development and 
        implementation of fully operational one-stop delivery 
        systems in the State;
          [(15)] (14) a description of the appeals process 
        referred to in section [116(a)(5)] 116(a)(4);
          [(16)] (15) a description of the competitive process 
        to be used by the State to award grants and contracts 
        in the State for activities carried out under this 
        title;
          [(17)] (16) with respect to the employment and 
        training activities authorized in section 134--
                  (A) a description of--
                          (i) * * *
                          (ii) how the State will provide rapid 
                        response activities [to dislocated 
                        workers] from funds reserved under 
                        section 133(a)(2) for such purposes, 
                        including the designation of an 
                        identifiable State rapid response 
                        dislocated worker unit to carry out 
                        statewide rapid response activities;
                          (iii) the procedures the local boards 
                        in the State will use to identify 
                        eligible providers of training services 
                        described in section [134(d)(4)] 
                        134(c)(4) (other than on-the-job 
                        training or customized training), as 
                        required under section 122; [and]
                          [(iv) how the State will serve the 
                        employment and training needs of 
                        dislocated workers (including displaced 
                        homemakers), low-income individuals 
                        (including recipients of public 
                        assistance), individuals training for 
                        nontraditional employment, and other 
                        individuals with multiple barriers to 
                        employment (including older individuals 
                        and individuals with disabilities); 
                        and]
                          (iv) how the State will serve the 
                        employment and training needs of 
                        dislocated workers (including displaced 
                        homemakers), low-income individuals 
                        (including recipients of public 
                        assistance such as supplemental 
                        nutrition assistance program benefits 
                        pursuant to the Food and Nutrition Act 
                        of 2008 (7 U.S.C. 2011 et seq.)), long-
                        term unemployed individuals (including 
                        individuals who have exhausted 
                        entitlement to State and Federal 
                        unemployment compensation), English 
                        learners, homeless individuals, 
                        individuals training for nontraditional 
                        employment, youth (including out-of-
                        school youth and at-risk youth), older 
                        workers, ex-offenders, migrant and 
                        seasonal farmworkers, refugee and 
                        entrants, veterans (including disabled 
                        and homeless veterans), and Native 
                        Americans; and
                          (v) how the State will--
                                  (I) consistent with section 
                                188 and Executive Order 13217 
                                (42 U.S.C. 12131 note), serve 
                                the employment and training 
                                needs of individuals with 
                                disabilities; and
                                  (II) consistent with sections 
                                504 and 508 of the 
                                Rehabilitation Act of 1973, 
                                include the provision of 
                                outreach, intake, assessments, 
                                and service delivery, the 
                                development of performance 
                                measures, the training of 
                                staff, and other aspects of 
                                accessibility to programs and 
                                services under this subtitle;
                  (B) an assurance that veterans will be 
                afforded the employment and training activities 
                by the State, [to the extent practicable] in 
                accordance with the requirements of the Jobs 
                for Veterans Act (Public Law 107-288) and the 
                amendments made by such Act; and
          [(18) with respect to youth activities authorized in 
        section 129, information--
                  [(A) describing the State strategy for 
                providing comprehensive services to eligible 
                youth, particularly those eligible youth who 
                are recognized as having significant barriers 
                to employment;
                  [(B) identifying the criteria to be used by 
                local boards in awarding grants for youth 
                activities, including criteria that the 
                Governor and local boards will use to identify 
                effective and ineffective youth activities and 
                providers of such activities;
                  [(C) describing how the State will coordinate 
                the youth activities carried out in the State 
                under section 129 with the services provided by 
                Job Corps centers in the State (where such 
                centers exist); and
                  [(D) describing how the State will coordinate 
                youth activities described in subparagraph (C) 
                with activities carried out through the youth 
                opportunity grants under section 169.]
          (17) a description of the strategies and services 
        that will be used in the State--
                  (A) to more fully engage employers, including 
                small businesses and employers in in-demand 
                industries and occupations important to the 
                State economy;
                  (B) to meet the needs of employers in the 
                State; and
                  (C) to better coordinate workforce 
                development programs with economic development 
                activities;
          (18) a description of how the State board will 
        convene (or help to convene) industry or sector 
        partnerships that lead to collaborative planning, 
        resource alignment, and training efforts across 
        multiple firms for a range of workers employed or 
        potentially employed by a targeted industry cluster--
                  (A) to encourage industry growth and 
                competitiveness and to improve worker training, 
                retention, and advancement in targeted industry 
                clusters;
                  (B) to address the immediate and long-term 
                skilled workforce needs of in-demand industries 
                and other occupations important to the State 
                economy, and
                  (C) to address critical skill gaps within and 
                across industries;
          (19) a description of how the State will utilize 
        technology to facilitate access to services in remote 
        areas, which may be used throughout the State;
          (20) a description of the State strategy and 
        assistance to be provided for encouraging regional 
        cooperation within the State and across State borders, 
        as appropriate;
          (21) a description of the actions that will be taken 
        by the State to foster communication, coordination, and 
        partnerships with non-profit organizations (including 
        public libraries, community, faith-based, and 
        philanthropic organizations) that provide employment-
        related, training, and complementary services, to 
        enhance the quality and comprehensiveness of services 
        available to participants under this title;
          (22) a description of the process and methodology for 
        determining--
                  (A) one-stop partner program contributions 
                for the cost of the infrastructure of one-stop 
                centers under section 121(h)(1); and
                  (B) the formula for allocating such 
                infrastructure funds to local areas under 
                section 121(h)(3);
          (23) a description of the strategies and services 
        that will be used in the State to assist at-risk youth 
        and out-of-school youth in acquiring the education and 
        skills, credentials (including recognized postsecondary 
        credentials and industry-recognized credentials), and 
        employment experience to succeed in the labor market, 
        including--
                  (A) training and internships in in-demand 
                industries or occupations important to the 
                State and local economy;
                  (B) dropout recovery activities that are 
                designed to lead to the attainment of a regular 
                secondary school diploma or its recognized 
                equivalent, or other State recognized 
                equivalent (including recognized alternative 
                standards for individuals with disabilities); 
                and
                  (C) activities combining remediation of 
                academic skills, work readiness training, and 
                work experience, and including linkages to 
                postsecondary education and training and 
                career-ladder employment; and
          (24) a description of--
                  (A) how the State will furnish employment, 
                training, supportive, and placement services to 
                veterans, including disabled and homeless 
                veterans;
                  (B) the strategies and services that will be 
                used in the State to assist and expedite 
                reintegration of homeless veterans into the 
                labor force; and
                  (C) the veteran population to be served in 
                the State.
  (c) Plan Submission and Approval.--A State plan submitted to 
the Secretary under this section by a Governor shall be 
considered to be approved by the Secretary at the end of the 
90-day period beginning on the day the Secretary receives the 
plan, unless the Secretary makes a written determination, 
during the 90-day [period, that--]
          [(1) the plan is inconsistent with the provisions of 
        this title; or
          [(2) in the case of the portion of the plan described 
        in section 8(a) of the Wagner-Peyser Act (29 U.S.C. 
        49g(a)), the portion does not satisfy the criteria for 
        approval provided in section 8(d) of such Act.] period, 
        that the plan is inconsistent with the provisions of 
        this title.
  (d) Modifications to Plan.--A State may submit modifications 
to a State plan in accordance with the requirements of this 
section and section 111 as necessary during the [5-year] 3-year 
period covered by the plan.

                      CHAPTER 2--LOCAL PROVISIONS

SEC. 116. LOCAL WORKFORCE INVESTMENT AREAS.

  (a) Designation of Areas.--
          (1) In general.--
                  (A) Process.--[Except as provided in 
                subsection (b), and consistent with paragraphs 
                (2), (3), and (4), in] In order for a State to 
                receive an allotment under section [127 or] 
                132, the Governor of the State shall designate 
                local workforce investment areas within the 
                State--
                          (i) * * *

           *       *       *       *       *       *       *

                  [(B) Considerations.--In making the 
                designation of local areas, the Governor shall 
                take into consideration the following:
                          [(i) Geographic areas served by local 
                        educational agencies and intermediate 
                        educational agencies.
                          [(ii) Geographic areas served by 
                        postsecondary educational institutions 
                        and area vocational education schools.
                          [(iii) The extent to which such local 
                        areas are consistent with labor market 
                        areas.
                          [(iv) The distance that individuals 
                        will need to travel to receive services 
                        provided in such local areas.
                          [(v) The resources of such local 
                        areas that are available to effectively 
                        administer the activities carried out 
                        under this subtitle.]
                  (B) Considerations.--In making the 
                designation of local areas, the Governor shall 
                take into consideration the following:
                          (i) The extent to which such local 
                        areas are consistent with labor market 
                        areas.
                          (ii) The extent to which labor market 
                        areas align with economic development 
                        regions.
                          (iii) Whether such local areas have 
                        the appropriate education and training 
                        providers to meet the needs of the 
                        local workforce.
                          (iv) The distance that individuals 
                        will need to travel to receive services 
                        provided in such local areas.
          [(2) Automatic designation.--The Governor shall 
        approve any request for designation as a local area--
                  [(A) from any unit of general local 
                government with a population of 500,000 or 
                more;
                  [(B) of the area served by a rural 
                concentrated employment program grant recipient 
                of demonstrated effectiveness that served as a 
                service delivery area or substate area under 
                the Job Training Partnership Act, if the grant 
                recipient has submitted the request; and
                  [(C) of an area that served as a service 
                delivery area under section 101(a)(4)(A)(ii) of 
                the Job Training Partnership Act (as in effect 
                on the day before the date of enactment of this 
                Act) in a State that has a population of not 
                more than 1,100,000 and a population density 
                greater than 900 persons per square mile.
          [(3) Temporary and subsequent designation.--
                  [(A) Criteria.--Notwithstanding paragraph 
                (2)(A), the Governor shall approve any request, 
                made not later than the date of submission of 
                the initial State plan under this subtitle, for 
                temporary designation as a local area from any 
                unit of general local government (including a 
                combination of such units) with a population of 
                200,000 or more that was a service delivery 
                area under the Job Training Partnership Act on 
                the day before the date of enactment of this 
                Act if the Governor determines that the area--
                          [(i) performed successfully, in each 
                        of the last 2 years prior to the 
                        request for which data are available, 
                        in the delivery of services to 
                        participants under part A of title II 
                        and title III of the Job Training 
                        Partnership Act (as in effect on such 
                        day); and
                          [(ii) has sustained the fiscal 
                        integrity of the funds used by the area 
                        to carry out activities under such part 
                        and title.
                  [(B) Duration and subsequent designation.--A 
                temporary designation under this paragraph 
                shall be for a period of not more than 2 years, 
                after which the designation shall be extended 
                until the end of the period covered by the 
                State plan if the Governor determines that, 
                during the temporary designation period, the 
                area substantially met (as defined by the State 
                board) the local performance measures for the 
                local area and sustained the fiscal integrity 
                of the funds used by the area to carry out 
                activities under this subtitle.
                  [(C) Technical assistance.--The Secretary 
                shall provide the States with technical 
                assistance in making the determinations 
                required by this paragraph. The Secretary shall 
                not issue regulations governing determinations 
                to be made under this paragraph.
                  [(D) Performed successfully.--In this 
                paragraph, the term ``performed successfully'' 
                means that the area involved met or exceeded 
                the performance standards for activities 
                administered in the area that--
                          [(i) are established by the Secretary 
                        for each year and modified by the 
                        adjustment methodology of the State 
                        (used to account for differences in 
                        economic conditions, participant 
                        characteristics, and combination of 
                        services provided from the combination 
                        assumed for purposes of the established 
                        standards of the Secretary); and
                          [(ii)(I) if the area was designated 
                        as both a service delivery area and a 
                        substate area under the Job Training 
                        Partnership Act (as in effect on the 
                        day before the date of enactment of 
                        this Act)--
                                  [(aa) relate to job retention 
                                and earnings, with respect to 
                                activities carried out under 
                                part A of title II of such Act 
                                (as in effect on such day); and
                                  [(bb) relate to entry into 
                                employment, with respect to 
                                activities carried out under 
                                title III of such Act (as in 
                                effect on such day);
                          [(II) if the area was designated only 
                        as a service delivery area under such 
                        Act (as in effect on such day), relate 
                        to the standards described in subclause 
                        (I)(aa); or
                          [(III) if the area was only 
                        designated as a substate area under 
                        such Act (as in effect on such day), 
                        relate to the standards described in 
                        subclause (I)(bb).
                  [(E) Sustained the fiscal integrity.--In this 
                paragraph, the term ``sustained the fiscal 
                integrity'', used with respect to funds used by 
                a service delivery area or local area, means 
                that the Secretary has not made a final 
                determination during any of the last 3 years 
                for which data are available, prior to the date 
                of the designation request involved, that 
                either the grant recipient or the 
                administrative entity of the area misexpended 
                the funds due to willful disregard of the 
                requirements of the Act involved, gross 
                negligence, or failure to observe accepted 
                standards of administration.
          [(4) Designation on recommendation of state board.--
        The Governor may approve a request from any unit of 
        general local government (including a combination of 
        such units) for designation (including temporary 
        designation) as a local area if the State board 
        determines, taking into account the factors described 
        in clauses (i) through (v) of paragraph (1)(B), and 
        recommends to the Governor, that such area should be so 
        designated.]
          (2) Technical assistance.--The Secretary shall, if 
        requested by the Governor of a State, provide the State 
        with technical assistance in making the determinations 
        required under paragraph (1). The Secretary shall not 
        issue regulations governing determinations to be made 
        under paragraph (1).
          (3) Designation on recommendation of state board.--
        The Governor may approve a request from any unit of 
        general local government (including a combination of 
        such units) for designation as a local area under 
        paragraph (1) if the State board determines, taking 
        into account the factors described in clauses (i) 
        through (iv) of paragraph (1)(B), and recommends to the 
        Governor, that such area shall be so designated.
          [(5)] (4) 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, 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 appeal process established 
        in the State plan or that the area meets the 
        requirements of paragraph (2) or (3), as appropriate, 
        may require that the area be designated as a local area 
        under such paragraph.
  [(b) Small States.--The Governor of any State that was a 
single State service delivery area under the Job Training 
Partnership Act as of July 1, 1998, may designate the State as 
a single State local area for the purposes of this title. In 
the case of such a designation, the Governor shall identify the 
State as a local area under section 112(b)(5).]
  (b) Single States.--Consistent with subsection (a)(1)(B), the 
Governor may designate a State as a single State local area for 
the purposes of this title.
  (c) Regional Planning and Cooperation.--
          (1) Planning.--As part of the process for developing 
        the State plan, a State may require regional planning 
        by local boards for a designated region in the State. 
        The State may require the local boards for a designated 
        region to participate in a regional planning process 
        that results in the establishment of regional 
        performance measures for workforce investment 
        activities authorized under this subtitle. The State 
        may award regional incentive grants to the designated 
        regions that meet or exceed the regional performance 
        measures. The State may require the local boards for 
        the designated region to prepare a single regional plan 
        that incorporates the elements of the local plan under 
        section 118 and that is submitted and approved in lieu 
        of separate local plans under such section.
          (2) Information sharing.--The State may require the 
        local boards for a designated region to share, in 
        feasible cases, [employment statistics] workforce and 
        labor market information, information about employment 
        opportunities and trends, and other types of 
        information that would assist in improving the 
        performance of all local areas in the designated region 
        on local performance measures.

           *       *       *       *       *       *       *


SEC. 117. LOCAL WORKFORCE INVESTMENT BOARDS.

  (a) * * *
  (b) Membership.--
          (1) * * *
          (2) Composition.--Such criteria shall require, at a 
        minimum, that the membership of each local board--
                  (A) shall [include--
                          [(i) representatives] include 
                        representatives of business in the 
                        local area, who--
                          [(I)] (i) are owners of businesses, 
                        chief executives or operating officers 
                        of businesses, and other business 
                        executives or employers with optimum 
                        policymaking or hiring authority;
                          [(II) represent businesses with 
                        employment opportunities that reflect 
                        the employment opportunities of the 
                        local area; and]
                          (ii) represent businesses, including 
                        large and small businesses, with 
                        immediate and long-term employment 
                        opportunities in in-demand industries 
                        and other occupations important to the 
                        local economy; and
                          [(III)] (iii) are appointed from 
                        among individuals nominated by local 
                        business organizations and business 
                        trade associations; and
                          [(ii) representatives of local 
                        educational entities, including 
                        representatives of local educational 
                        agencies, local school boards, entities 
                        providing adult education and literacy 
                        activities, and postsecondary 
                        educational institutions (including 
                        representatives of community colleges, 
                        where such entities exist), selected 
                        from among individuals nominated by 
                        regional or local educational agencies, 
                        institutions, or organizations 
                        representing such local educational 
                        entities;
                          [(iii) representatives of labor 
                        organizations (for a local area in 
                        which employees are represented by 
                        labor organizations), nominated by 
                        local labor federations, or (for a 
                        local area in which no employees are 
                        represented by such organizations), 
                        other representatives of employees;
                          [(iv) representatives of community-
                        based organizations (including 
                        organizations representing individuals 
                        with disabilities and veterans, for a 
                        local area in which such organizations 
                        are present);
                          [(v) representatives of economic 
                        development agencies, including private 
                        sector economic development entities; 
                        and
                          [(vi) representatives of each of the 
                        one-stop partners; and]
                  [(B) may include such other individuals or 
                representatives of entities as the chief 
                elected official in the local area may 
                determine to be appropriate.]
                  (B) may include such other individuals or 
                representatives of entities as the chief 
                elected official in the local area may 
                determine to be appropriate, including--
                          (i) a superintendent of the local 
                        secondary school system, the president 
                        or chief executive officer of a 
                        postsecondary educational institution 
                        (including a community college, where 
                        such an entity exists), or an 
                        administrator of local entities 
                        providing adult education and literacy 
                        activities;
                          (ii) representatives of community-
                        based organizations (including 
                        organizations representing individuals 
                        with disabilities and veterans, for a 
                        local area in which such organizations 
                        are present); or
                          (iii) representatives of veterans 
                        service organizations.

           *       *       *       *       *       *       *

          (4) Majority.--[A majority] A \2/3\ majority of the 
        members of the local board shall be representatives 
        described in paragraph [(2)(A)(i)] (2)(A).
          (5) Chairperson.--The local board shall elect a 
        chairperson for the local board from among the 
        representatives described in paragraph [(2)(A)(i)] 
        (2)(A).
  (c) Appointment and Certification of Board.--
          (1) Appointment of board members and assignment of 
        responsibilities.--
                  (A) * * *

           *       *       *       *       *       *       *

                  [(C) Concentrated employment programs.--In 
                the case of a local area designated in 
                accordance with section 116(a)(2)(B), 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.]

           *       *       *       *       *       *       *

  [(d) Functions of Local Board.--The functions of the local 
board shall include the following:
          [(1) Local plan.--Consistent with section 118, each 
        local board, in partnership with the chief elected 
        official for the local area involved, shall develop and 
        submit a local plan to the Governor.
          [(2) 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--
                          [(i) 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 
                shall identify eligible providers of youth 
                activities in the local area by awarding grants 
                or contracts on a competitive basis, based on 
                the recommendations of the youth council.
                  [(C) Identification of eligible providers of 
                training services.--Consistent with section 
                122, the local board shall identify eligible 
                providers of training services described in 
                section 134(d)(4) in the local area.
                  [(D) Identification of eligible providers of 
                intensive services.--If the one-stop operator 
                does not provide intensive services in a local 
                area, the local board shall identify eligible 
                providers of intensive services described in 
                section 134(d)(3) in the local area by awarding 
                contracts.
          [(3) Budget and administration.--
                  [(A) Budget.--The local board shall develop a 
                budget for the purpose of carrying out 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 the 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 such funds for 
                                workforce investment activities 
                                at the direction of the local 
                                board, pursuant to the 
                                requirements of this title, if 
                                the direction does not violate 
                                a provision of this Act. The 
                                local grant recipient or entity 
                                designated under subclause (II) 
                                shall disburse the funds 
                                immediately on receiving such 
                                direction from the local board.
                          [(ii) Staff.--The local board may 
                        employ staff.
                          [(iii) Grants and donations.--The 
                        local board may solicit and accept 
                        grants and donations from sources other 
                        than Federal funds made available under 
                        this Act.
          [(4) Program oversight.--The local board, in 
        partnership with the chief elected official, shall 
        conduct oversight with respect to local programs of 
        youth activities authorized under section 129, local 
        employment and training activities authorized under 
        section 134, and the one-stop delivery system in the 
        local area.
          [(5) Negotiation of local performance measures.--The 
        local board, the chief elected official, and the 
        Governor shall negotiate and reach agreement on local 
        performance measures as described in section 136(c).
          [(6) Employment statistics system.--The local board 
        shall assist the Governor in developing the statewide 
        employment statistics system described in section 15(e) 
        of the Wagner-Peyser Act.
          [(7) Employer linkages.--The local board shall 
        coordinate the workforce investment activities 
        authorized under this subtitle and carried out in the 
        local area with economic development strategies and 
        develop other employer linkages with such activities.
          [(8) Connecting, brokering, and coaching.--The local 
        board shall promote the participation of private sector 
        employers in the statewide workforce investment system 
        and ensure the effective provision, through the system, 
        of connecting, brokering, and coaching activities, 
        through intermediaries such as the one-stop operator in 
        the local area or through other organizations, to 
        assist such employers in meeting hiring needs.]
  (d) Functions of Local Board.--The functions of the local 
board shall include the following:
          (1) Local plan.--Consistent with section 118, each 
        local board, in partnership with the chief elected 
        official for the local area involved, shall develop and 
        submit a local plan to the Governor.
          (2) Workforce research and regional labor market 
        analysis.--
                  (A) In general.--The local board shall--
                          (i) conduct, and regularly update, an 
                        analysis of--
                                  (I) the economic conditions 
                                in the local area;
                                  (II) the immediate and long-
                                term skilled workforce needs of 
                                in-demand industries and other 
                                occupations important to the 
                                local economy;
                                  (III) the knowledge and 
                                skills of the workforce in the 
                                local area; and
                                  (IV) workforce development 
                                activities (including education 
                                and training) in the local 
                                area; and
                          (ii) assist the Governor in 
                        developing the statewide workforce and 
                        labor market information system 
                        described in section 15(e) of the 
                        Wagner-Peyser Act.
                  (B) Existing analysis.--A local board shall 
                use existing analysis by the local economic 
                development entity or related entity in order 
                to carry out requirements of subparagraph 
                (A)(i).
          (3) Employer engagement.--The local Board shall meet 
        the needs of employers and support economic growth in 
        the local area by enhancing communication, 
        coordination, and collaboration among employers, 
        economic development entities, and service providers.
          (4) Budget and administration.--
                  (A) Budget.--
                          (i) In general.--The local board 
                        shall develop a budget for the 
                        activities of the local board in the 
                        local area, consistent with the 
                        requirements of this subsection.
                          (ii) Training reservation.--In 
                        developing a budget under clause (i), 
                        the local board shall reserve a 
                        percentage of funds to carry out the 
                        activities specified in section 
                        134(c)(4). The local board shall use 
                        the analysis conducted under paragraph 
                        (2)(A)(i) to determine the appropriate 
                        percentage of funds to reserve under 
                        this clause.
                  (B) Administration.--
                          (i) Grant recipient.--
                                  (I) In general.--The chief 
                                elected official in a local 
                                area shall serve as the local 
                                grant recipient for, and shall 
                                be liable for any misuse of, 
                                the grant funds allocated to 
                                the local area under section 
                                133, unless the chief elected 
                                official reaches an 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) Staff.--The local board may 
                        employ staff to assist in carrying out 
                        the functions described in this 
                        subsection.
                          (iii) Grants and donations.--The 
                        local board may solicit and accept 
                        grants and donations from sources other 
                        than Federal funds made available under 
                        this Act.
          (5) Selection of operators and providers.--
                  (A) Selection of one-stop operators.--
                Consistent with section 121(d), the local 
                board, with the agreement of the chief elected 
                official--
                          (i) shall designate or certify one-
                        stop operators as described in section 
                        121(d)(2)(A); and
                          (ii) may terminate for cause the 
                        eligibility of such operators.
                  (B) Identification of eligible training 
                service providersConsistent with this subtitle, 
                the local board shall identify eligible 
                providers of training services described in 
                section 134(c)(4) in the local area, annually 
                review the outcome of individual training 
                providers using the criteria under section 
                122(b)(2), and designate providers in the local 
                area who have demonstrated the highest level of 
                success with respect to such indicators as 
                priority providers for the following program 
                year.
                  (C) Identification of eligible providers of 
                work ready services.--If the one-stop operator 
                does not provide the services described in 
                section 134(c)(2) in the local area, the local 
                board shall identify eligible providers of such 
                services in the local area by awarding 
                contracts.
          (6) Program oversight.--The local board, in 
        partnership with the chief elected official, shall be 
        responsible for--
                  (A) ensuring the appropriate use and 
                management of the funds provided for local 
                employment and training activities authorized 
                under section 134(b); and
                  (B) conducting oversight of the one-stop 
                delivery system in the local area authorized 
                under section 121.
          (7) Negotiation of local performance measures.--The 
        local board, the chief elected official, and the 
        Governor shall negotiate and reach agreement on local 
        performance measures as described in section 136(c).
          (8) Technology improvements.--The local board shall 
        develop strategies for technology improvements to 
        facilitate access to services authorized under this 
        subtitle and carried out in the local area, including 
        in remote areas.
  (e) 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 
activities,] and on request, minutes of formal meetings of the 
local board.
  (f) Limitations.--
          (1) Training services.--
                  (A) In general.--Except as provided in 
                subparagraph (B), no local board may provide 
                training services described in [section 
                134(d)(4)] section 134(c)(4).

           *       *       *       *       *       *       *

          [(2) Core services; intensive services; designation 
        or certification as one-stop operators.--A local board 
        may provide core services described in section 
        134(d)(2) or intensive services described in section 
        134(d)(3) through a one-stop delivery system described 
        in section 134(c) or be designated or certified as a 
        one-stop operator only with the agreement of the chief 
        elected official and the Governor.]
          (2) Work ready services, designation, or 
        certification as one-stop operators.--A local board may 
        provide work ready services described in section 
        134(c)(2) through a one-stop delivery system described 
        in section 121 or be designated or certified as a one-
        stop operator only with the agreement of the chief 
        elected official and the Governor.

           *       *       *       *       *       *       *

  (g) Conflict of Interest.--A member of a local board may 
not--
          (1) vote or participate in any action taken on a 
        matter under consideration by the local board--
                  (A) * * *

           *       *       *       *       *       *       *

  [(h) Youth Council.--
          [(1) Establishment.--There shall be established, as a 
        subgroup within each local board, a youth council 
        appointed by the local board, in cooperation with the 
        chief elected official for the local area.
          [(2) Membership.--The membership of each youth 
        council--
                  [(A) shall include--
                          [(i) members of the local board 
                        described in subparagraph (A) or (B) of 
                        subsection (b)(2) with special interest 
                        or expertise in youth policy;
                          [(ii) representatives of youth 
                        service agencies, including juvenile 
                        justice and local law enforcement 
                        agencies;
                          [(iii) representatives of local 
                        public housing authorities;
                          [(iv) parents of eligible youth 
                        seeking assistance under this subtitle;
                          [(v) individuals, including former 
                        participants, and representatives of 
                        organizations, that have experience 
                        relating to youth activities; and
                          [(vi) representatives of the Job 
                        Corps, as appropriate; and
                  [(B) may include such other individuals as 
                the chairperson of the local board, in 
                cooperation with the chief elected official, 
                determines to be appropriate.
          [(3) Relationship to local board.--Members of the 
        youth council who are not members of the local board 
        described in subparagraphs (A) and (B) of subsection 
        (b)(2) shall be voting members of the youth council and 
        nonvoting members of the board.
          [(4) Duties.--The duties of the youth council 
        include--
                  [(A) developing the portions of the local 
                plan relating to eligible youth, as determined 
                by the chairperson of the local board;
                  [(B) subject to the approval of the local 
                board and consistent with section 123--
                          [(i) recommending eligible providers 
                        of youth activities, to be awarded 
                        grants or contracts on a competitive 
                        basis by the local board to carry out 
                        the youth activities; and
                          [(ii) conducting oversight with 
                        respect to the eligible providers of 
                        youth activities, in the local area;
                  [(C) coordinating youth activities authorized 
                under 
                section 129 in the local area; and
                  [(D) other duties determined to be 
                appropriate by the chairperson of the local 
                board.
  [(i) Alternative Entity.--
          [(1) In general.--For purposes of complying with 
        subsections (a), (b), and (c), and paragraphs (1) and 
        (2) of subsection (h), 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) is in existence on December 31, 1997;
                  [(C)(i) is established pursuant to section 
                102 of the Job Training Partnership Act, as in 
                effect on December 31, 1997; or
                  [(ii) is substantially similar to the local 
                board described in subsections (a), (b), and 
                (c), and paragraphs (1) and (2) of subsection 
                (h); and
                  [(D) 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.--References in this Act to a local 
        board or a youth council shall be considered to include 
        such an entity or a subgroup of such an entity, 
        respectively.]

SEC. 118. LOCAL PLAN.

  (a) In General.--Each local board shall develop and submit to 
the Governor a comprehensive [5-year] 3-year local plan 
(referred to in this title as the ``local plan''), in 
partnership with the appropriate chief elected official. The 
plan shall be consistent with the State plan.
  [(b) Contents.--The local plan shall include--
          [(1) an identification of--
                  [(A) the workforce investment needs of 
                businesses, jobseekers, and workers in the 
                local area;
                  [(B) the current and projected employment 
                opportunities in the local area; and
                  [(C) the job skills necessary to obtain such 
                employment opportunities;
          [(2) a description of the one-stop delivery system to 
        be established or designated 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 
                participants; and
                  [(B) a copy of each memorandum of 
                understanding described in section 121(c) 
                (between the local board and each of the one-
                stop partners) concerning the operation of the 
                one-stop delivery system in the local area;
          [(3) a description of the local levels of performance 
        negotiated with the Governor and chief elected official 
        pursuant to section 136(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, 
        and the one-stop delivery system, in the local area;
          [(4) a description and assessment of the type and 
        availability of adult and dislocated worker employment 
        and training activities in the local area;
          [(5) a description of how the local board will 
        coordinate workforce investment activities carried out 
        in the local area with statewide rapid response 
        activities, as appropriate;
          [(6) a description and assessment of the type and 
        availability of youth activities in the local area, 
        including an identification of successful providers of 
        such activities;
          [(7) a description of the process used by the local 
        board, consistent with subsection (c), 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;
          [(8) an identification of the entity responsible for 
        the disbursal of grant funds described in section 
        117(d)(3)(B)(i)(III), as determined by the chief 
        elected official or the Governor under section 
        117(d)(3)(B)(i);
          [(9) a description of the competitive process to be 
        used to award the grants and contracts in the local 
        area for activities carried out under this subtitle; 
        and
          [(10) such other information as the Governor may 
        require.]
  (b) Contents.--The local plan shall include--
          (1) a description of the analysis of the local area's 
        economic and workforce conditions conducted under 
        section 117(d)(2)(A)(i), and an assurance that the 
        local board will use such analysis to carry out the 
        activities under this subtitle;
          (2) a description of the one-stop delivery system in 
        the local area, including--
                  (A) a description of how the local board will 
                ensure--
                          (i) the continuous improvement of 
                        eligible providers of services through 
                        the system; and
                          (ii) that such providers meet the 
                        employment needs of local businesses 
                        and participants; and
                  (B) a description of how the local board will 
                facilitate access to services provided through 
                the one-stop delivery system consistent with 
                section 117(d)(8);
          (3) a description of the strategies and services that 
        will be used in the local area--
                  (A) to more fully engage employers, including 
                small businesses and employers in in-demand 
                industries and occupations important to the 
                local economy;
                  (B) to meet the needs of employers in the 
                local area;
                  (C) to better coordinate workforce 
                development programs with economic development 
                activities; and
                  (D) to better coordinate workforce 
                development programs with employment, training, 
                and literacy services carried out by nonprofit 
                organizations, including public libraries, as 
                appropriate;
          (4) a description of how the local board will convene 
        (or help to convene) industry or sector partnerships 
        that lead to collaborative planning, resource 
        alignment, and training efforts across multiple firms 
        for a range of workers employed or potentially employed 
        by a targeted industry cluster--
                  (A) to encourage industry growth and 
                competitiveness and to improve worker training, 
                retention, and advancement in targeted industry 
                clusters;
                  (B) to address the immediate and long-term 
                skilled workforce needs of in-demand 
                industries, small businesses, and other 
                occupations important to the local economy; and
                  (C) to address critical skill gaps within and 
                across industries;
          (5) a description of how the funds reserved under 
        section 117(d)(4)(A)(ii) will be used to carry out 
        activities described in section 134(c)(4);
          (6) a description of how the local board will 
        coordinate workforce investment activities carried out 
        in the local area with statewide activities, as 
        appropriate;
          (7) a description of how the local area will--
                  (A) coordinate activities with the local 
                area's disability community and with services 
                provided 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)) by local 
                educational agencies serving such local area to 
                make available comprehensive, high-quality 
                services to individuals with disabilities;
                  (B) consistent with section 188 and Executive 
                Order 13217 (42 U.S.C. 12131 note), serve the 
                employment and training needs of individuals 
                with disabilities; and
                  (C) consistent with sections 504 and 508 of 
                the Rehabilitation Act of 1973, include the 
                provision of outreach, intake, assessments, and 
                service delivery, the development of 
                performance measures, the training of staff, 
                and other aspects of accessibility to programs 
                and services under this subtitle;
          (8) a description of the local levels of performance 
        negotiated with the Governor and chief elected official 
        pursuant to section 136(c), to be--
                  (A) used to measure the performance of the 
                local area; and
                  (B) used by the local board for measuring 
                performance of the local fiscal agent (where 
                appropriate), eligible providers, and the one-
                stop delivery system, in the local area;
          (9) a description of the process used by the local 
        board, consistent with subsection (c), to provide an 
        opportunity for public comment prior to submission of 
        the plan;
          (10) a description of how the local area will serve 
        the employment and training needs of dislocated workers 
        (including displaced homemakers), low-income 
        individuals (including recipients of public assistance 
        such as the Supplemental Nutrition Assistance Program), 
        long-term unemployed individuals (including individuals 
        who have exhausted entitlement to State and Federal 
        unemployment compensation), English learners, homeless 
        individuals, individuals training for nontraditional 
        employment, youth (including out-of-school youth and 
        at-risk youth), older workers, ex-offenders, migrant 
        and seasonal farmworkers, refugee and entrants, 
        veterans (including disabled veterans and homeless 
        veterans), and Native Americans;
          (11) an identification of the entity responsible for 
        the disbursal of grant funds described in subclause 
        (III) of section 117(d)(4)(B)(i), as determined by the 
        chief elected official or the Governor under such 
        section;
          (12) a description of the strategies and services 
        that will be used in the local area to assist at-risk 
        youth and out-of-school youth in acquiring the 
        education and skills, credentials (including recognized 
        postsecondary credentials and industry-recognized 
        credentials), and employment experience to succeed in 
        the labor market, including--
                  (A) training and internships in in-demand 
                industries or occupations important to the 
                local economy;
                  (B) dropout recovery activities that are 
                designed to lead to the attainment of a regular 
                secondary school diploma or its recognized 
                equivalent, or other State recognized 
                equivalent (including recognized alternative 
                standards for individuals with disabilities); 
                and
                  (C) activities combining remediation of 
                academic skills, work readiness training, and 
                work experience, and including linkages to 
                postsecondary education and training and 
                career-ladder employment;
          (13) a description of--
                  (A) how the local area will furnish 
                employment, training, supportive, and placement 
                services to veterans, including disabled and 
                homeless veterans;
                  (B) the strategies and services that will be 
                used in the local area to assist and expedite 
                reintegration of homeless veterans into the 
                labor force; and
                  (C) the veteran population to be served in 
                the local area;
          (14) a description of--
                  (A) the duties assigned to the veteran 
                employment specialist consistent with the 
                requirements of section 134(f);
                  (B) the manner in which the veteran 
                employment specialist is integrated into the 
                One-Stop Career System described in section 
                121;
                  (C) the date on which the veteran employment 
                specialist was assigned; and
                  (D) whether the veteran employment specialist 
                has satisfactorily competed such training by 
                the National Veterans' Employment and Training 
                Services Institute; and
          (15) such other information as the Governor may 
        require.
  (c) Process.--Prior to the date on which the local board 
submits a local plan under this section, the local board 
shall--
          (1) make available copies of a proposed local plan to 
        the public through [such means] electronic means such 
        as public hearings and local news media;
          (2) allow members of the local board and members of 
        the public[, including representatives of business and 
        representatives of labor organizations,] to submit 
        comments on the proposed local plan to the local board, 
        not later than the end of the 30-day period beginning 
        on the date on which the proposed local plan is made 
        available; and

           *       *       *       *       *       *       *


          CHAPTER 3--WORKFORCE INVESTMENT ACTIVITIES PROVIDERS

SEC. 121. ESTABLISHMENT OF ONE-STOP DELIVERY SYSTEMS.

  (a) * * *
  (b) One-Stop Partners.--
          (1) Required partners.--
                  [(A) In general.--Each entity that carries 
                out a 
                program or activities described in subparagraph 
                (B) shall--
                          [(i) make available to participants, 
                        through a one-stop delivery system, the 
                        services described in section 134(d)(2) 
                        that are applicable to such program or 
                        activities; and
                          [(ii) participate in the operation of 
                        such system consistent with the terms 
                        of the memorandum described in 
                        subsection (c), and with the 
                        requirements of the Federal law in 
                        which the program or activities are 
                        authorized.]
                  (A) Roles and responsibilities of one-stop 
                partners.--Each entity that carries out a 
                program or activities described in subparagraph 
                (B) shall--
                          (i) provide access through the one-
                        stop delivery system to the program and 
                        activities carried out by the entity, 
                        including making the work ready 
                        services described in section 134(c)(2) 
                        that are applicable to the program of 
                        the entity available at one-stop 
                        centers (in addition to any other 
                        appropriate locations);
                          (ii) use a portion of the funds 
                        available to the program of the entity 
                        to maintain the one-stop delivery 
                        system, including payment of the 
                        infrastructure costs of one-stop 
                        centers in accordance with subsection 
                        (h);
                          (iii) enter into a local memorandum 
                        of understanding with the local board 
                        relating to the operation of the one-
                        stop delivery system that meets the 
                        requirements of subsection (c); and
                          (iv) participate in the operation of 
                        the one-stop delivery system consistent 
                        with the terms of the memorandum of 
                        understanding, the requirements of this 
                        title, and the requirements of the 
                        Federal laws authorizing the programs 
                        carried out by the entity.
                  (B) Programs and activities.--The programs 
                and activities referred to in subparagraph (A) 
                consist of--
                          (i) * * *
                          [(ii) programs authorized under the 
                        Wagner-Peyser Act (29 U.S.C. 49 et 
                        seq.);]
                          [(iii)] (ii) adult education and 
                        literacy activities authorized under 
                        title II;
                          [(iv)] (iii) programs authorized 
                        under title I of the Rehabilitation Act 
                        of 1973 (29 U.S.C. 720 et seq.) (other 
                        than part C of title I of such Act and 
                        subject to subsection (f));
                          [(v) programs authorized under 
                        section 403(a)(5) of the Social 
                        Security Act (42 U.S.C. 603(a)(5)) (as 
                        added by section 5001 of the Balanced 
                        Budget Act of 1997);
                          [(vi) activities authorized under 
                        title V of the Older Americans Act of 
                        1965 (42 U.S.C. 3056 et seq.);]
                          [(vii)] (iv) career and technical 
                        education activities at the 
                        postsecondary level authorized under 
                        the Carl D. Perkins Career and 
                        Technical Education Act of 2006 (20 
                        U.S.C. 2301 et seq.);
                          [(viii)] (v) activities authorized 
                        under chapter 2 of title II of the 
                        Trade Act of 1974 (19 U.S.C. 2271 et 
                        seq.);
                          [(ix)] (vi) activities authorized 
                        under chapter 41 of title 38, United 
                        States Code;
                          [(x)] (vii) employment and training 
                        activities carried out under the 
                        Community Services Block Grant Act (42 
                        U.S.C. 9901 et seq.);
                          [(xi)] (viii) employment and training 
                        activities carried out by the 
                        Department of Housing and Urban 
                        Development; [and]
                          [(xii)] (ix) programs authorized 
                        under State unemployment compensation 
                        laws (in accordance with applicable 
                        Federal law)[.]; and
                          (x) subject to subparagraph (C), 
                        programs authorized under part A of 
                        title IV of the Social Security Act (42 
                        U.S.C. 601 et seq.).
                  (C) Determination by the governor.--Each 
                entity carrying out a program described in 
                subparagraph (B)(x) shall carry out the 
                required partner activities described in 
                subparagraph (A) unless the Governor of the 
                State in which the local area is located 
                provides the Secretary and Secretary of Health 
                and Human Services written notice of a 
                determination by the Governor that such 
                entities shall not carry out such required 
                partner activities.
          (2) Additional partners.--
                  (A) In general.--In addition to the entities 
                described in paragraph (1), other entities that 
                carry out a human resource program described in 
                subparagraph (B) may--
                          (i) make available to participants, 
                        through the one-stop delivery system, 
                        the services described in [section 
                        134(d)(2)] section 134(c)(2) that are 
                        applicable to such program; and

           *       *       *       *       *       *       *

                  (B) Programs.--The programs referred to in 
                subparagraph (A) may include--
                          [(i) programs authorized under part A 
                        of title IV of the Social Security Act 
                        (42 U.S.C. 601 et seq.);
                          [(ii) programs authorized under 
                        section 6(d)(4) of the Food and 
                        Nutrition Act of 2008 (7 U.S.C. 
                        2015(d)(4));]
                          [(iii)] (i) work programs authorized 
                        under section 6(o) of the Food and 
                        Nutrition Act of 2008 (7 U.S.C. 
                        2015(o));
                          [(iv)] (ii) programs authorized under 
                        the National and Community Service Act 
                        of 1990 (42 U.S.C. 12501 et seq.); 
                        [and]
                          [(v) other appropriate Federal, 
                        State, or local programs, including 
                        programs in the private sector.]
                          (iii) employment and training 
                        programs administered by the 
                        Commissioner of the Social Security 
                        Administration;
                          (iv) employment and training programs 
                        carried out by the Administrator of the 
                        Small Business Administration;
                          (v) employment, training, and 
                        literacy services carried out by public 
                        libraries; and
                          (vi) other appropriate Federal, 
                        State, or local programs, including 
                        programs in the private sector.

           *       *       *       *       *       *       *

  (c) Memorandum of Understanding.--
          (1) * * *
          (2) Contents.--Each memorandum of understanding shall 
        contain--
                  [(A) provisions describing--
                          [(i) the services to be provided 
                        through the one-stop delivery system;
                          [(ii) how the costs of such services 
                        and the operating costs of the system 
                        will be funded;
                          [(iii) methods for referral of 
                        individuals between the one-stop 
                        operator and the one-stop partners, for 
                        the appropriate services and 
                        activities; and
                          [(iv) the duration of the memorandum 
                        and the procedures for amending the 
                        memorandum during the term of the 
                        memorandum; and]
                  (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 
                        through such system;
                          (ii) how the costs of such services 
                        and the operating costs of such system 
                        will be funded, through cash and in-
                        kind contributions, to provide a stable 
                        and equitable funding stream for 
                        ongoing one-stop system operations, 
                        including the funding of the 
                        infrastructure costs of one-stop 
                        centers in accordance with subsection 
                        (h);
                          (iii) methods of referral of 
                        individuals between the one-stop 
                        operator and the one-stop partners for 
                        appropriate services and activities, 
                        including referrals for nontraditional 
                        employment; and
                          (iv) the duration of the memorandum 
                        of understanding and the procedures for 
                        amending the memorandum during the term 
                        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

           *       *       *       *       *       *       *

  (d) One-Stop Operators.--
          (1) [Designation and certification] 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 to in [section 134(c)] subsection 
        (e), an entity (which may be a consortium of 
        entities)--
                  [(A) shall be designated or certified as a 
                one-stop operator--
                          [(i) through a competitive process; 
                        or
                          [(ii) in accordance with an agreement 
                        reached between the local board and a 
                        consortium of entities that, at a 
                        minimum, includes 3 or more of the one-
                        stop partners described in subsection 
                        (b)(1); and]
                  (A) shall be designated or certified as a 
                one-stop operator through a competitive 
                process; and
                  (B) may be a public or private entity, or 
                consortium of entities, of demonstrated 
                effectiveness, located in the local area, which 
                may include--
                          (i) * * *
                          [(ii) an employment service agency 
                        established under the Wagner-Peyser Act 
                        (29 U.S.C. 49 et seq.), on behalf of 
                        the local office of the agency;]
                          [(iii)] (ii) a private, nonprofit 
                        organization (including a community-
                        based organization);
                          [(iv)] (iii) a private for-profit 
                        entity;
                          [(v)] (iv) a government agency; and
                          [(vi)] (v) another interested 
                        organization or entity, which may 
                        include a local chamber of commerce or 
                        other business 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 
        [vocational] career and technical education schools 
        shall be eligible for such designation or 
        certification.
  [(e) Established One-Stop Delivery System.--If a one-stop 
delivery system has been established in a local area prior to 
the date of enactment of this Act, the local board, the chief 
elected official, and the Governor involved may agree to 
certify an entity carrying out activities through the system as 
a one-stop operator for purposes of subsection (d), consistent 
with the requirements of subsection (b), of the memorandum of 
understanding, and of section 134(c).]
  (e) Establishment of One-Stop Delivery System.--
          (1) In general.--There shall be established in a 
        State that receives an allotment under section 132(b) a 
        one-stop delivery system, which shall--
                  (A) provide the work ready services described 
                in section 134(c)(2);
                  (B) provide access to training services as 
                described in section 134(c)(4), including 
                serving as the point of access to career 
                enhancement accounts for training services to 
                participants in accordance with paragraph 
                (4)(F) of such section;
                  (C) provide access to the activities carried 
                out under section 134(d), if any;
                  (D) provide access to programs and activities 
                carried out by one-stop partners that are 
                described in subsection (b) of this section; 
                and
                  (E) provide access to the information 
                described in section 15(e) of the Wagner-Peyser 
                Act (29 U.S.C. 49l-2(e)).
          (2) One-stop delivery.--At a minimum, the one-stop 
        delivery system--
                  (A) shall make each of the programs, 
                services, and activities described in paragraph 
                (1) accessible at not less than one 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 one 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 one 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 work ready 
                                services will be available 
                                regardless of where the 
                                individuals initially enter the 
                                statewide workforce investment 
                                system, including information 
                                made available through an 
                                access point described in 
                                subclause (I).
          (3) Specialized centers.--The centers and sites 
        described in paragraph (2) may have a specialization in 
        addressing special needs.

           *       *       *       *       *       *       *

  (g) Certification of One-Stop Centers.--
          (1) In general.--
                  (A) In general.--The State board shall 
                establish objective procedures and criteria for 
                certifying, at least once every 3 years, one-
                stop centers for the purpose of awarding the 
                one-stop infrastructure funding described in 
                subsection (h).
                  (B) Criteria.--The criteria for certification 
                under this subsection shall include--
                          (i) meeting all of the expected 
                        levels of performance for each of the 
                        core indicators of performance as 
                        outlined in the State plan under 
                        section 112;
                          (ii) meeting minimum standards 
                        relating to the scope and degree of 
                        service integration achieved by the 
                        centers involving the programs provided 
                        by the one-stop partners; and
                          (iii) meeting minimum standards 
                        relating to how the centers ensure that 
                        eligible providers meet the employment 
                        needs of local employers and 
                        participants.
                  (C) Effect of certification.--One-stop 
                centers certified under this subsection shall 
                be eligible to receive the infrastructure 
                grants authorized under subsection (h).
          (2) Local boards.--Consistent with the criteria 
        developed by the State, the local board may develop 
        additional criteria of higher standards to respond to 
        local labor market and demographic conditions and 
        trends.
  (h) One-Stop Infrastructure Funding.--
          (1) Partner contributions.--
                  (A) Provision of funds.--Notwithstanding any 
                other provision of law, as determined under 
                subparagraph (B), a portion of the Federal 
                funds provided to the State and areas within 
                the State under the Federal laws authorizing 
                the one-stop partner programs described in 
                subsection (b)(1)(B) and participating 
                additional partner programs described in 
                (b)(2)(B) for a fiscal year shall be provided 
                to the Governor by such programs to carry out 
                this subsection.
                  (B) Determination of governor.--
                          (i) In general.--Subject to 
                        subparagraph (C), the Governor, in 
                        consultation with the State board, 
                        shall determine the portion of funds to 
                        be provided under subparagraph (A) by 
                        each one-stop partner and in making 
                        such determination shall consider the 
                        proportionate use of the one-stop 
                        centers by each partner, the costs of 
                        administration for purposes not related 
                        to one-stop centers for each partner, 
                        and other relevant factors described in 
                        paragraph (3).
                          (ii) Special rule.--In those States 
                        where the State constitution places 
                        policy-making authority that is 
                        independent of the authority of the 
                        Governor in an entity or official with 
                        respect to the funds provided for adult 
                        education and literacy activities 
                        authorized under title II of this Act 
                        and for postsecondary career education 
                        activities authorized under the Carl D. 
                        Perkins Career and Technical Education 
                        Act, the determination described in 
                        clause (i) with respect to such 
                        programs shall be made by the Governor 
                        with the appropriate entity or official 
                        with such independent policy-making 
                        authority.
                          (iii) Appeal by one-stop partners.--
                        The Governor shall establish a 
                        procedure for the one-stop partner 
                        administering a program described in 
                        subsection (b) to appeal a 
                        determination regarding the portion of 
                        funds to be contributed under this 
                        paragraph on the basis that such 
                        determination is inconsistent with the 
                        criteria described in the State plan or 
                        with the requirements of this 
                        paragraph. Such procedure shall ensure 
                        prompt resolution of the appeal.
                  (C) Limitations.--
                          (i) Provision from administrative 
                        funds.--The funds provided under this 
                        paragraph by each one-stop partner 
                        shall be provided only from funds 
                        available for the costs of 
                        administration under the program 
                        administered by such partner, and shall 
                        be subject to the limitations with 
                        respect to the portion of funds under 
                        such programs that may be used for 
                        administration.
                          (ii) Federal direct spending 
                        programs.--Programs that are Federal 
                        direct spending under section 250(c)(8) 
                        of the Balanced Budget and Emergency 
                        Deficit Control Act of 1985 (2 U.S.C. 
                        900(c)(8)) shall not, for purposes of 
                        this paragraph, be required to provide 
                        an amount in excess of the amount 
                        determined to be equivalent to the 
                        proportionate use of the one-stop 
                        centers by such programs in the State.
          (2) Allocation by governor.--From the funds provided 
        under paragraph (1), the Governor shall allocate funds 
        to local areas in accordance with the formula 
        established under paragraph (3) for the purposes of 
        assisting in paying the costs of the infrastructure of 
        one-stop centers certified under subsection (g).
          (3) Allocation formula.--The State board shall 
        develop a formula to be used by the Governor to 
        allocate the funds described in paragraph (1). The 
        formula shall include such factors as the State board 
        determines are appropriate, which may include factors 
        such as the number of centers in the local area that 
        have been certified, the population served by such 
        centers, and the performance of such centers.
          (4) Costs of infrastructure.--For purposes of this 
        subsection, the term ``costs of infrastructure'' means 
        the nonpersonnel costs that are necessary for the 
        general operation of a one-stop center, including the 
        rental costs of the facilities, the costs of utilities 
        and maintenance, and equipment (including assistive 
        technology for individuals with disabilities).
  (i) Other Funds.--
          (1) In general.--In addition to the funds provided to 
        carry out subsection (h), a portion of funds made 
        available under Federal law authorizing the one-stop 
        partner programs described in subsection (b)(1)(B) and 
        participating additional partner programs described in 
        subsection (b)(2)(B), or the noncash resources 
        available under such programs shall be used to pay the 
        costs relating to the operation of the one-stop 
        delivery system that are not paid for from the funds 
        provided under subsection (h), to the extent not 
        inconsistent with the Federal law involved including--
                  (A) infrastructure costs that are in excess 
                of the funds provided under subsection (h);
                  (B) common costs that are in addition to the 
                costs of infrastructure; and
                  (C) the costs of the provision of work ready 
                services applicable to each program.
          (2) Determination and guidance.--The method for 
        determining the appropriate portion of funds and 
        noncash resources to be provided by each program under 
        paragraph (1) shall be determined as part of the 
        memorandum of understanding under subsection (c). The 
        State board shall provide guidance to facilitate the 
        determination of appropriate allocation of the funds 
        and noncash resources in local areas.

[SEC. 122. IDENTIFICATION OF ELIGIBLE PROVIDERS OF TRAINING SERVICES.

  [(a) Eligibility Requirements.--
          [(1) In general.--Except as provided in subsection 
        (h), to be identified as an eligible provider of 
        training services described in section 134(d)(4) 
        (referred to in this section as ``training services'') 
        in a local area and to be eligible to receive funds 
        made available under section 133(b) for the provision 
        of training services, a provider of such services shall 
        meet the requirements of this section.
          [(2) Providers.--Subject to the provisions of this 
        section, to be eligible to receive the funds, the 
        provider shall be--
                  [(A) a postsecondary educational institution 
                that--
                          [(i) is eligible to receive Federal 
                        funds under title IV of the Higher 
                        Education Act of 1965 (20 U.S.C. 1070 
                        et seq.); and
                          [(ii) provides a program that leads 
                        to an associate degree, baccalaureate 
                        degree, or certificate;
                  [(B) an entity that carries out programs 
                under the Act of August 16, 1937 (commonly 
                known as the ``National Apprenticeship Act''; 
                50 Stat. 664, chapter 663; 29 U.S.C. 50 et 
                seq.); or
                  [(C) another public or private provider of a 
                program of training services.
  [(b) Initial Eligibility Determination.--
          [(1) Postsecondary educational institutions and 
        entities carrying out apprenticeship programs.--To be 
        initially eligible to receive funds as described in 
        subsection (a) to carry out a program described in 
        subparagraph (A) or (B) of subsection (a)(2), a 
        provider described in subparagraph (A) or (B), 
        respectively, of subsection (a)(2) shall submit an 
        application, to the local board for the local area in 
        which the provider desires to provide training 
        services, at such time, in such manner, and containing 
        such information as the local board may require.
          [(2) Other eligible providers.--
                  [(A) Procedure.--Each Governor of a State 
                shall establish a procedure for use by local 
                boards in the State in determining the initial 
                eligibility of a provider described in 
                subsection (a)(2)(C) to receive funds as 
                described in subsection (a) for a program of 
                training services, including the initial 
                eligibility of--
                          [(i) a postsecondary educational 
                        institution to receive such funds for a 
                        program not described in subsection 
                        (a)(2)(A); and
                          [(ii) a provider described in 
                        subsection (a)(2)(B) to receive such 
                        funds for a program not described in 
                        subsection (a)(2)(B).
                  [(B) Recommendations.--In developing such 
                procedure, the Governor shall solicit and take 
                into consideration the recommendations of local 
                boards and providers of training services 
                within the State.
                  [(C) Opportunity to submit comments.--The 
                Governor shall provide an opportunity, during 
                the development of the procedure, for 
                interested members of the public, including 
                representatives of business and labor 
                organizations, to submit comments on such 
                procedure.
                  [(D) Requirements.--In establishing the 
                procedure, the Governor shall require that, to 
                be initially eligible to receive funds as 
                described in subsection (a) for a program, a 
                provider described in subsection (a)(2)(C)--
                          [(i) shall submit an application, to 
                        the local board for the local area in 
                        which the provider desires to provide 
                        training services, at such time and in 
                        such manner as may be required, and 
                        containing a description of the 
                        program;
                          [(ii) if the provider provides 
                        training services through a program on 
                        the date of application, shall include 
                        in the application an appropriate 
                        portion of the performance information 
                        and program cost information described 
                        in subsection (d) for the program, as 
                        specified in the procedure, and shall 
                        meet appropriate levels of performance 
                        for the program, as specified in the 
                        procedure; and
                          [(iii) if the provider does not 
                        provide training services on such date, 
                        shall meet appropriate requirements, as 
                        specified in the procedure.
  [(c) Subsequent Eligibility Determination.--
          [(1) Procedure.--Each Governor of a State shall 
        establish a procedure for use by local boards in the 
        State in determining the eligibility of a provider 
        described in subsection (a)(2) to continue to receive 
        funds as described in subsection (a) for a program 
        after an initial period of eligibility under subsection 
        (b) (referred to in this section as ``subsequent 
        eligibility'').
          [(2) Recommendations.--In developing such procedure, 
        the Governor shall solicit and take into consideration 
        the recommendations of local boards and providers of 
        training services within the State.
          [(3) Opportunity to submit comments.--The Governor 
        shall provide an opportunity, during the development of 
        the procedure, for interested members of the public, 
        including representatives of business and labor 
        organizations, to submit comments on such procedure.
          [(4) Considerations.--In developing such procedure, 
        the Governor shall ensure that the procedure requires 
        the local boards to take into consideration, in making 
        the determinations of subsequent eligibility--
                  [(A) the specific economic, geographic, and 
                demographic factors in the local areas in which 
                providers seeking eligibility are located; and
                  [(B) the characteristics of the populations 
                served by providers seeking eligibility, 
                including the demonstrated difficulties in 
                serving such populations, where applicable.
          [(5) Requirements.--In establishing the procedure, 
        the Governor shall require that, to be eligible to 
        continue to receive funds as described in subsection 
        (a) for a program after the initial period of 
        eligibility, a provider described in subsection (a)(2) 
        shall--
                  [(A) submit the performance information and 
                program cost information described in 
                subsection (d)(1) for the program and any 
                additional information required to be submitted 
                in accordance with subsection (d)(2) for the 
                program annually to the appropriate local board 
                at such time and in such manner as may be 
                required; and
                  [(B) annually meet the performance levels 
                described in paragraph (6) for the program, as 
                demonstrated utilizing quarterly records 
                described in section 136, in a manner 
                consistent with section 136.
          [(6) Levels of performance.--
                  [(A) In general.--At a minimum, the procedure 
                described in paragraph (1) shall require the 
                provider to meet minimum acceptable levels of 
                performance based on the performance 
                information referred to in paragraph (5)(A).
                  [(B) Higher levels of performance 
                eligibility.--The local board may require 
                higher levels of performance than the levels 
                referred to in subparagraph (A) for subsequent 
                eligibility to receive funds as described in 
                subsection (a).
  [(d) Performance and Cost Information.--
          [(1) Required information.--For a provider of 
        training services to be determined to be subsequently 
        eligible under subsection (c) to receive funds as 
        described in subsection (a), such provider shall, under 
        subsection (c), submit--
                  [(A) verifiable program-specific performance 
                information consisting of--
                          [(i) program information, including--
                                  [(I) the program completion 
                                rates for all individuals 
                                participating in the applicable 
                                program conducted by the 
                                provider;
                                  [(II) the percentage of all 
                                individuals participating in 
                                the applicable program who 
                                obtain unsubsidized employment, 
                                which may also include 
                                information specifying the 
                                percentage of the individuals 
                                who obtain unsubsidized 
                                employment in an occupation 
                                related to the program 
                                conducted; and
                                  [(III) the wages at placement 
                                in employment of all 
                                individuals participating in 
                                the applicable program; and
                          [(ii) training services information 
                        for all participants who received 
                        assistance under section 134 to 
                        participate in the applicable program, 
                        including--
                                  [(I) the percentage of 
                                participants who have completed 
                                the applicable program and who 
                                are placed in unsubsidized 
                                employment;
                                  [(II) the retention rates in 
                                unsubsidized employment of 
                                participants who have completed 
                                the applicable program, 6 
                                months after the first day of 
                                the employment;
                                  [(III) the wages received by 
                                participants who have completed 
                                the applicable program, 6 
                                months after the first day of 
                                the employment involved; and
                                  [(IV) where appropriate, the 
                                rates of licensure or 
                                certification, attainment of 
                                academic degrees or 
                                equivalents, or attainment of 
                                other measures of skills, of 
                                the graduates of the applicable 
                                program; and
                  [(B) information on program costs (such as 
                tuition and fees) for participants in the 
                applicable program.
          [(2) Additional information.--Subject to paragraph 
        (3), in addition to the performance information 
        described in paragraph (1)--
                  [(A) the Governor may require that a provider 
                submit, under subsection (c), such other 
                verifiable program-specific performance 
                information as the Governor determines to be 
                appropriate to obtain such subsequent 
                eligibility, which may include information 
                relating to--
                          [(i) retention rates in employment 
                        and the subsequent wages of all 
                        individuals who complete the applicable 
                        program;
                          [(ii) where appropriate, the rates of 
                        licensure or certification of all 
                        individuals who complete the program; 
                        and
                          [(iii) the percentage of individuals 
                        who complete the program who attain 
                        industry-recognized occupational skills 
                        in the subject, occupation, or industry 
                        for which training is provided through 
                        the program, where applicable; and
                  [(B) the Governor, or the local board, may 
                require a provider to submit, under subsection 
                (c), other verifiable program-specific 
                performance information to obtain such 
                subsequent eligibility.
          [(3) Conditions.--
                  [(A) In general.--If the Governor or a local 
                board requests additional information under 
                paragraph (2) that imposes extraordinary costs 
                on providers, or if providers experience 
                extraordinary costs in the collection of 
                information required under paragraph 
                (1)(A)(ii), the Governor or the local board 
                shall provide access to cost-effective methods 
                for the collection of the information involved, 
                or the Governor shall provide additional 
                resources to assist providers in the collection 
                of such information from funds made available 
                as described in sections 128(a) and 133(a)(1), 
                as appropriate.
                  [(B) Higher education eligibility 
                requirements.--The local board and the 
                designated State agency described in subsection 
                (i) may accept program-specific performance 
                information consistent with the requirements 
                for eligibility under title IV of the Higher 
                Education Act of 1965 (20 U.S.C. 1070 et seq.) 
                from a provider for purposes of enabling the 
                provider to fulfill the applicable requirements 
                of this subsection, if such information is 
                substantially similar to the information 
                otherwise required under this subsection.
  [(e) Local Identification.--
          [(1) In general.--The local board shall place on a 
        list providers submitting an application under 
        subsection (b)(1) and providers determined to be 
        initially eligible under subsection (b)(2), and retain 
        on the list providers determined to be subsequently 
        eligible under subsection (c), to receive funds as 
        described in subsection (a) for the provision of 
        training services in the local area served by the local 
        board. The list of providers shall be accompanied by 
        any performance information and program cost 
        information submitted under subsection (b) or (c) by 
        the provider.
          [(2) Submission to state agency.--On placing or 
        retaining a provider on the list, the local board shall 
        submit, to the designated State agency described in 
        subsection (i), the list and the performance 
        information and program cost information referred to in 
        paragraph (1). If the agency determines, within 30 days 
        after the date of the submission, that the provider 
        does not meet the performance levels described in 
        subsection (c)(6) for the program (where applicable), 
        the agency may remove the provider from the list for 
        the program. The agency may not remove from the list an 
        agency submitting an application under subsection 
        (b)(1).
          [(3) Identification of eligible providers.--A 
        provider who is placed or retained on the list under 
        paragraph (1), and is not removed by the designated 
        State agency under paragraph (2), for a program, shall 
        be considered to be identified as an eligible provider 
        of training services for the program.
          [(4) Availability.--
                  [(A) State list.--The designated State agency 
                shall compile a single list of the providers 
                identified under paragraph (3) from all local 
                areas in the State and disseminate such list, 
                and the performance information and program 
                cost information described in paragraph (1), to 
                the one-stop delivery systems within the State. 
                Such list and information shall be made widely 
                available to participants in employment and 
                training activities authorized under section 
                134 and others through the one-stop delivery 
                system.
                  [(B) Selection from state list.--Individuals 
                eligible to receive training services under 
                section 134(d)(4) shall have the opportunity to 
                select any of the eligible providers, from any 
                of the local areas in the State, that are 
                included on the list described in subparagraph 
                (A) to provide the services, consistent with 
                the requirements of section 134.
          [(5) Acceptance of individual training accounts by 
        other states.--States may enter into agreements, on a 
        reciprocal basis, to permit eligible providers of 
        training services in a State to accept individual 
        training accounts provided in another State.
  [(f) Enforcement.--
          [(1) Accuracy of information.--If the designated 
        State agency, after consultation with the local board 
        involved, determines that an eligible provider or 
        individual supplying information on behalf of the 
        provider intentionally supplies inaccurate information 
        under this section, the agency shall terminate the 
        eligibility of the provider to receive funds described 
        in subsection (a) for any program for a period of time, 
        but not less than 2 years.
          [(2) Noncompliance.--If the designated State agency, 
        or the local board working with the State agency, 
        determines that an eligible provider described in 
        subsection (a) substantially violates any requirement 
        under this Act, the agency, or the local board working 
        with the State agency, may terminate the eligibility of 
        such provider to receive funds described in subsection 
        (a) for the program involved or take such other action 
        as the agency or local board determines to be 
        appropriate.
          [(3) Repayment.--A provider whose eligibility is 
        terminated under paragraph (1) or (2) for a program 
        shall be liable for repayment of all funds described in 
        subsection (a) received for the program during any 
        period of noncompliance described in such paragraph.
          [(4) Construction.--This subsection and subsection 
        (g) shall be construed to provide remedies and 
        penalties that supplement, but do not supplant, other 
        civil and criminal remedies and penalties.
  [(g) Appeal.--The Governor shall establish procedures for 
providers of training services to appeal a denial of 
eligibility by the local board or the designated State agency 
under subsection (b), (c), or (e), a termination of eligibility 
or other action by the board or agency under subsection (f), or 
a denial of eligibility by a one-stop operator under subsection 
(h). Such procedures shall provide an opportunity for a hearing 
and prescribe appropriate time limits to ensure prompt 
resolution of the appeal.
  [(h) On-the-Job Training or Customized Training Exception.--
          [(1) In general.--Providers of on-the-job training or 
        customized training shall not be subject to the 
        requirements of subsections (a) through (e).
          [(2) Collection and dissemination of information.--A 
        one-stop operator in a local area shall collect such 
        performance information from on-the-job training and 
        customized training providers as the Governor may 
        require, determine whether the providers meet such 
        performance criteria as the Governor may require, and 
        disseminate information identifying 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) Administration.--The Governor shall designate a State 
agency to make the determinations described in subsection 
(e)(2), take the enforcement actions described in subsection 
(f), and carry out other duties described in this section.

[SEC. 123. IDENTIFICATION OF ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES.

  [From funds allocated under paragraph (2)(A) or (3) of 
section 128(b) to a local area, the local board for such area 
shall identify eligible providers of youth activities by 
awarding grants or contracts on a competitive basis, based on 
the recommendations of the youth council and on the criteria 
contained in the State plan, to the providers to carry out the 
activities, and shall conduct oversight with respect to the 
providers, in the local area.]

SEC. 122. IDENTIFICATION OF ELIGIBLE PROVIDERS OF TRAINING SERVICES.

  (a) Eligibility.--
          (1) In general.--The Governor, after consultation 
        with the State board, shall establish criteria and 
        procedures regarding the eligibility of providers of 
        training services described in section 134(c)(4) to 
        receive funds provided under section 133(b) for the 
        provision of such training services.
          (2) Providers.--Subject to the provisions of this 
        section, to be eligible to receive the funds provided 
        under section 133(b) for the provision of training 
        services, the provider shall be--
                  (A) a postsecondary educational institution 
                that--
                          (i) is eligible to receive Federal 
                        funds under title IV of the Higher 
                        Education Act of 1965 (20 U.S.C. 1070 
                        et seq.); and
                          (ii) provides a program that leads to 
                        a recognized postsecondary credential;
                  (B) an entity that carries out programs under 
                the Act of August 16, 1937 (commonly known as 
                the ``National Apprenticeship Act''; 50 Stat. 
                664, chapter 663; 29 U.S.C. 50 et seq.); or
                  (C) another public or private provider of a 
                program of training services.
          (3) Inclusion in list of eligible providers.--A 
        provider described in subparagraph (A) or (C) of 
        paragraph (2) shall comply with the criteria 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 on the 
        list of eligible providers of training services 
        described in subsection (d) for so long as the provider 
        remains certified by the Secretary of Labor to carry 
        out the programs described in paragraph (2)(B).
  (b) Criteria.--
          (1) In general.--The criteria established pursuant to 
        subsection (a) shall take into account--
                  (A) the performance of providers of training 
                services with respect to the performance 
                measures described in section 136 and other 
                matters for which information is required under 
                paragraph (2) and other appropriate measures of 
                performance outcomes for those participants 
                receiving training services under this 
                subtitle;
                  (B) whether the training programs of such 
                providers relate to occupations that are in 
                demand;
                  (C) the need to ensure access to training 
                services throughout the State, including in 
                rural areas;
                  (D) the ability of providers to offer 
                programs that lead to a recognized 
                postsecondary credential;
                  (E) the information such providers are 
                required to report to State agencies with 
                respect to other Federal and State programs 
                (other than the program carried out under this 
                subtitle), including one-stop partner programs; 
                and
                  (F) such other factors as the Governor 
                determines are appropriate.
          (2) Information.--The criteria established by the 
        Governor shall require that a provider of training 
        services submit appropriate, accurate, and timely 
        information to the State for purposes of carrying out 
        subsection (d), with respect to participants receiving 
        training services under this subtitle in the applicable 
        program, including--
                  (A) information on recognized postsecondary 
                credentials received by such participants;
                  (B) information on costs of attendance for 
                such participants;
                  (C) information on the program completion 
                rate for such participants; and
                  (D) information on the performance of the 
                provider with respect to the performance 
                measures described in section 136 for such 
                participants.
          (3) Renewal.--The criteria established by the 
        Governor shall also provide for a review every 3 years 
        and renewal of eligibility under this section for 
        providers of training services.
          (4) Local criteria.--A local board in the State may 
        establish criteria in addition to the criteria 
        established by the Governor, or may require higher 
        levels of performance than required under the criteria 
        established by the Governor, for purposes of 
        determining the eligibility of providers of training 
        services to receive funds described in subsection (a) 
        to provide the services in the local area involved.
          (5) Limitation.--In carrying out the requirements of 
        this subsection, no personally identifiable information 
        regarding a student, including Social Security number, 
        student identification number, or other identifier, may 
        be disclosed without the prior written consent of the 
        parent or eligible student in compliance with section 
        444 of the General Education Provisions Act (20 U.S.C. 
        1232g).
  (c) Procedures.--The procedures established under subsection 
(a) shall--
          (1) identify--
                  (A) the application process for a provider of 
                training services to become eligible to receive 
                funds under section 133(b) for the provision of 
                training services; and
                  (B) the respective roles of the State and 
                local areas in receiving and reviewing 
                applications and in making determinations of 
                eligibility based on the criteria established 
                under this section; and
          (2) 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.
  (d) Information To Assist Participants in Choosing 
Providers.--In order to facilitate and assist participants 
under chapter 5 in choosing providers of training services, the 
Governor shall ensure that an appropriate list or lists of 
providers determined eligible under this section in the State, 
including information provided under subsection (b)(2) with 
respect to such providers, is provided to the local boards in 
the State and is made available to such participants and to 
members of the public through the one-stop delivery system in 
the State.
  (e) Enforcement.--
          (1) In general.--The criteria and 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 criteria 
                or procedures, that a provider of training 
                services, or individual providing information 
                on behalf of the provider, intentionally 
                supplied inaccurate information under this 
                section, the eligibility of such provider to 
                receive funds under chapter 5 shall be 
                terminated for a period of time that is not 
                less than 2 years.
                  (B) Substantial violations.--Upon a 
                determination, by an individual or entity 
                specified in the criteria or procedures, that a 
                provider of training services substantially 
                violated any requirement under this title, the 
                eligibility of such provider to receive funds 
                under the program involved shall be terminated 
                for a period of time that is not less than 10 
                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 
                during a period of noncompliance described in 
                such subparagraph.
          (2) Construction.--Paragraph (1) shall be construed 
        to provide remedies and penalties that supplement, but 
        do not supplant, other civil and criminal remedies and 
        penalties.
  (f) Agreements with other States.--States may enter into 
agreements, on a reciprocal basis, to permit eligible providers 
of training services to accept career enhancement accounts 
provided in another State.
  (g) Recommendations.--In developing the criteria, procedures, 
and information required under this section, the Governor shall 
solicit and take into consideration the recommendations of 
local boards and providers of training services within the 
State.
  (h) Opportunity To Submit Comments.--During the development 
of the criteria, procedures, requirements for information, and 
the list of eligible providers required under this section, the 
Governor shall provide an opportunity for interested members of 
the public to submit comments regarding such criteria, 
procedures, and information.
  (i) On-the-Job Training or Customized Training Exception.--
          (1) In general.--Providers of on-the-job training or 
        customized training shall not be subject to the 
        requirements of subsections (a) through (d).
          (2) Collection and dissemination of information.--A 
        one-stop operator in a local area shall collect such 
        performance information from on-the-job training and 
        customized training providers as the Governor may 
        require, determine whether the providers meet such 
        performance criteria as the Governor may require, and 
        disseminate information identifying 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.

           *       *       *       *       *       *       *


    CHAPTER 5--[ADULT AND DISLOCATED WORKER EMPLOYMENT AND TRAINING 
             ACTIVITIES] EMPLOYMENT AND TRAINING ACTIVITIES

SEC. 131. 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 112 and a grant 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,] individuals in the State or outlying area and in the 
local areas.

SEC. 132. STATE ALLOTMENTS.

  [(a) In General.--The Secretary shall--
          [(1) make allotments and grants from the total amount 
        appropriated under section 137(b) for a fiscal year in 
        accordance with subsection (b)(1); and
          [(2)(A) reserve 20 percent of the amount appropriated 
        under section 137(c) for a fiscal year for use under 
        subsection (b)(2)(A), and under sections 170(b) 
        (relating to dislocated worker technical assistance), 
        171(d) (relating to dislocated worker projects), and 
        173 (relating to national emergency grants, other than 
        under subsection (a)(4), (f), and (g)); and
          [(B) make allotments from 80 percent of the amount 
        appropriated under section 137(c) for a 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 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), except that the reference 
                        in section 127(b)(1)(B)(i)(II) to 
                        sections 252(d) and 262(a)(1) of the 
                        Job Training Partnership Act shall be 
                        deemed to be a reference to section 
                        202(a)(1) of the Job Training 
                        Partnership Act (as in effect on the 
                        day before the date of enactment of 
                        this Act).
                  [(B) States.--
                          [(i) In general.--After determining 
                        the amount to be reserved under 
                        subparagraph (A), the Secretary shall 
                        allot the remainder of the amount 
                        referred to in subsection (a)(1) for a 
                        fiscal year to the States pursuant to 
                        clause (ii) for adult employment and 
                        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 a local 
                        area designated under section 
                        116(a)(2)(B), 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 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 allotment of the 
                                        State under section 202 
                                        of the Job Training 
                                        Partnership Act (as in 
                                        effect on the day 
                                        before the date of 
                                        enactment of this Act) 
                                        for fiscal year 1998.
                                  [(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.
                                  [(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 for calculating 
                                the corresponding allotments 
                                under part A of title II of the 
                                Job Training Partnership Act, 
                                as in effect on July 1, 1998.
                          [(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 2000 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 1998 or 1999, means the 
                                percentage of the amounts 
                                allotted to States under 
                                section 202(a) of the Job 
                                Training Partnership Act (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 1998 or 1999.
                                  [(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 
                                        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.
          [(2) Dislocated worker employment and training.--
                  [(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 137(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), except that the 
                        reference in section 
                        127(b)(1)(B)(i)(II) to sections 252(a) 
                        and 262(a)(1) of the Job Training 
                        Partnership Act shall be deemed to be a 
                        reference to section 302(e) of the Job 
                        Training Partnership Act (as in effect 
                        on the day before the date of enactment 
                        of this Act).
                  [(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.--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) Definition.--In this 
                        subparagraph, 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.
          [(3) Definitions.--For the purpose of the formulas 
        specified in this subsection:
                  [(A) Freely associated states.--The term 
                ``Freely Associated States'' means the Republic 
                of the Marshall Islands, the Federated States 
                of Micronesia, and the Republic of Palau.
                  [(B) 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.]
  (a) In General.--The Secretary shall--
          (1) reserve 1/2 of 1 percent of the total amount 
        appropriated under section 137 for a fiscal year, of 
        which--
                  (A) 50 percent shall be used to provide 
                technical assistance under section 170; and
                  (B) 50 percent shall be used for evaluations 
                under section 172;
          (2) reserve not more than 1 percent of the total 
        amount appropriated under section 137 for a fiscal year 
        to make grants to, and enter into contracts or 
        cooperative agreements with Indian tribes, tribal 
        organizations, Alaska-Native entities, Indian-
        controlled organizations serving Indians, or Native 
        Hawaiian organizations to carry out employment and 
        training activities;
          (3) reserve not more than 25 percent of the total 
        amount appropriated under section 137 for a fiscal year 
        to carry out the Jobs Corps program under subtitle C;
          (4) reserve not more than 3.5 percent of the total 
        amount appropriated under section 137 for a fiscal year 
        to--
                  (A) make grants to State or local boards 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; and
                  (B) provide assistance to Governors of States 
                with an area that has suffered an emergency or 
                a major disaster (as such terms are 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)) to provide disaster relief employment in 
                the area.
          (5) from the remaining amount appropriated under 
        section 137 for a fiscal year (after reserving funds 
        under paragraphs (1) through (4)), make allotments in 
        accordance with subsection (b) of this section.
  (b) Workforce Investment Fund.--
          (1) Reservation for outlying areas.--
                  (A) In general.--From the amount made 
                available under subsection (a)(5) for a fiscal 
                year, the Secretary shall reserve not more than 
                \1/4\ of 1 percent to provide assistance to the 
                outlying areas.
                  (B) Restriction.--The Republic of Palau shall 
                cease to be eligible to receive funding under 
                this subparagraph upon entering into an 
                agreement for extension of United States 
                educational assistance under the Compact of 
                Free Association (approved by the Compact of 
                Free Association Amendments Act of 2003 (Public 
                Law 99-658)) after the date of enactment of the 
                SKILLS Act.
          (2) States.--
                  (A) In general.--After determining the amount 
                to be reserved under paragraph (1), the 
                Secretary shall allot the remainder of the 
                amount referred to in subsection (a)(5) for a 
                fiscal year to the States pursuant to 
                subparagraph (B) for employment and training 
                activities and statewide workforce investment 
                activities.
                  (B) Formula.--Subject to subparagraphs (C) 
                and (D), of the remainder--
                          (i) 25 percent shall be allotted on 
                        the basis of the relative number of 
                        unemployed individuals in areas of 
                        substantial unemployment in each State, 
                        compared to the total number of 
                        unemployed individuals in areas of 
                        substantial unemployment in all States;
                          (ii) 25 percent shall be allotted on 
                        the basis of the relative number of 
                        individuals in the civilian labor force 
                        in each State, compared to the total 
                        number of such individuals in all 
                        States;
                          (iii) 25 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; and
                          (iv) 25 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.
                  (C) Minimum and maximum percentages.--
                          (i) Minimum percentage.--The 
                        Secretary shall ensure that no State 
                        shall receive an allotment under this 
                        paragraph for--
                                  (I) each of fiscal years 2014 
                                through 2016, that is less than 
                                100 percent of the allotment 
                                percentage of the State for 
                                fiscal year 2012; and
                                  (II) fiscal year 2017 and 
                                each succeeding fiscal year, 
                                that is less than 90 percent of 
                                the allotment percentage of the 
                                State for the preceding fiscal 
                                year.
                          (ii) Maximum percentage.--Subject to 
                        clause (i), the Secretary shall ensure 
                        that no State shall receive an 
                        allotment under this paragraph for--
                                  (I) each of fiscal years 2014 
                                through 2016, that is more than 
                                130 percent of the allotment 
                                percentage of the State for 
                                fiscal year 2012; and
                                  (II) fiscal year 2017 and 
                                each succeeding fiscal year, 
                                that is more than 130 percent 
                                of the allotment percentage of 
                                the State for the preceding 
                                fiscal year.
                  (D) Small state minimum allotment.--Subject 
                to subparagraph (C), the Secretary shall ensure 
                that no State shall receive an allotment under 
                this paragraph for a fiscal year that is less 
                than \1/5\ of 1 percent of the remainder 
                described in subparagraph (A) for the fiscal 
                year.
                  (E) Definitions.--For the purpose of the 
                formula specified in this paragraph:
                          (i) Allotment percentage.--The term 
                        ``allotment percentage''--
                                  (I) used with respect to 
                                fiscal year 2012, means the 
                                percentage of the amounts 
                                allotted to States under title 
                                I of this Act, title V of the 
                                Older Americans Act of 1965 (42 
                                U.S.C. 3056 et seq.), the Women 
                                in Apprenticeship and 
                                Nontraditional Occupations Act 
                                (29 U.S.C. 2501 et seq.), 
                                sections 4103A and 4104 of 
                                title 38, United States Code, 
                                and sections 1 through 14 of 
                                the Wagner-Peyser Act (29 
                                U.S.C. 49 et seq.), as such 
                                provisions were in effect for 
                                fiscal year 2012, that is 
                                received under such provisions 
                                by the State involved for 
                                fiscal year 2012; and
                                  (II) used with respect to 
                                fiscal year 2016 or a 
                                succeeding fiscal year, means 
                                the percentage of the amounts 
                                allotted to States under this 
                                paragraph for the fiscal year 
                                that is received under this 
                                paragraph by the State involved 
                                for the fiscal year.
                          (ii) Disadvantaged youth.--The term 
                        ``disadvantaged youth'' means an 
                        individual who is not less than age 16 
                        and not more than age 24 who receives 
                        an income, or is a member of a family 
                        that received a total family income, 
                        that in relation to family size, does 
                        not exceed the higher of--
                                  (I) the poverty line; or
                                  (II) 70 percent of the lower 
                                living standard income level.
                          (iii) Individual.--The term 
                        ``individual'' means an individual who 
                        is age 16 or older.

           *       *       *       *       *       *       *


SEC. 133. WITHIN STATE ALLOCATIONS.

  [(a) Reservations for State Activities.--
          [(1) Statewide workforce investment activities.--The 
        Governor of a State shall make the reservation required 
        under section 128(a).
          [(2) Statewide rapid response activities.--The 
        Governor of the State 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) Methods.--The Governor, acting in accordance 
        with the State plan, and after consulting with chief 
        elected officials 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 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);
                                  [(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.--Effective 
                        at the end of the second full fiscal 
                        year after the date on which a local 
                        area is designated under section 116, 
                        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.--The term 
                        ``allocation percentage'', used with 
                        respect to fiscal year 2000 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.
                  [(B) Dislocated worker employment and 
                training activities.--
                          [(i) Formula.--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.
                  [(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, not 
        more than 20 percent of the funds allocated to the 
        local area under paragraph (2)(A) or (3), and 20 
        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 of the State 
                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 (d) and (e) 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 
                        proportionately to the costs of the 
                        one-stop delivery system described in 
                        section 134(c) in the local area, 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 
                        proportionately to the costs of the 
                        one-stop delivery system described in 
                        section 134(c) in the local area, and 
                        to pay for employment and training 
                        activities provided to dislocated 
                        workers in the local area, consistent 
                        with section 134.]
  (a) Reservations for Statewide Workforce Investment 
Activities.--
          (1) Statewide employment and training activities.--
        The Governor of a State shall reserve up to 15 percent 
        of the total amount allotted to the State under section 
        132(b)(2) for a fiscal year to carry out the statewide 
        activities described in section 134(a).
          (2) Statewide rapid response activities.--Of the 
        amount reserved under paragraph (1) for a fiscal year, 
        the Governor of the State shall reserve not more than 
        25 percent for statewide rapid response activities 
        described in section 134(a)(4).
          (3) Statewide grants for individuals with barriers to 
        employment.--Of the amount reserved under paragraph (1) 
        for a fiscal year, the Governor of a State shall 
        reserve 15 percent to carry out statewide activities 
        described in section 134(a)(5).
          (4) State administrative cost limit.--Not more than 5 
        percent of the funds reserved under paragraph (1) may 
        be used by the Governor of a State for administrative 
        costs of carrying out the statewide activities 
        described in section 134(a).
  (b) Within State Allocation.--
          (1) Methods.--The Governor, acting in accordance with 
        the State plan, and after consulting with chief elected 
        officials in the local areas, shall--
                  (A) allocate the funds that are allotted to 
                the State for employment and training 
                activities and not reserved under subsection 
                (a), in accordance with paragraph (2)(A); and
                  (B) award the funds that are reserved by the 
                State under subsection (a)(3) through 
                competitive grants to eligible entities, in 
                accordance with section 134(a)(1)(C).
          (2) Formula allocations for the workforce investment 
        fund.--
                  (A) Allocation.--In allocating the funds 
                described in paragraph (1)(A) to local areas, a 
                State shall allocate--
                          (i) 25 percent on the basis described 
                        in section 132(b)(2)(B)(i);
                          (ii) 25 percent on the basis 
                        described in section 132(b)(2)(B)(ii);
                          (iii) 25 percent on the basis 
                        described in section 132(b)(2)(B)(iii); 
                        and
                          (iv) 25 percent on the basis 
                        described in section 132(b)(2)(B)(iv).
                  (B) Minimum and maximum percentages.--
                          (i) Minimum percentage.--The State 
                        shall ensure that no local area shall 
                        receive an allocation under this 
                        paragraph for--
                                  (I) each of fiscal years 2014 
                                through 2016, that is less than 
                                100 percent of the allocation 
                                percentage of the local area 
                                for fiscal year 2012; and
                                  (II) fiscal year 2017 and 
                                each succeeding fiscal year, 
                                that is less than 90 percent of 
                                the allocation percentage of 
                                the local area for the 
                                preceding fiscal year.
                          (ii) Maximum percentage.--Subject to 
                        clause (i), the State shall ensure that 
                        no local area shall receive an 
                        allocation for a fiscal year under this 
                        paragraph for--
                                  (I) each of fiscal years 2014 
                                through 2016, that is more than 
                                130 percent of the allocation 
                                percentage of the local area 
                                for fiscal year 2012; and
                                  (II) fiscal year 2017 and 
                                each succeeding fiscal year, 
                                that is more than 130 
                                percentage of the allocation 
                                percentage of the local area 
                                for the preceding fiscal year.
                  (C) Definitions.--For the purpose of the 
                formula specified in this paragraph, the term 
                ``allocation percentage''--
                          (i) used with respect to fiscal year 
                        2012, means the percentage of the 
                        amounts allocated to local areas under 
                        title I of this Act, title V of the 
                        Older Americans Act of 1965 (42 U.S.C. 
                        3056 et seq.), the Women in 
                        Apprenticeship and Nontraditional 
                        Occupations Act (29 U.S.C. 2501 et 
                        seq.), sections 4103A and 4104 of title 
                        38, United States Code, and sections 1 
                        through 14 of the Wagner-Peyser Act (29 
                        U.S.C. 49 et seq.), as such provisions 
                        were in effect for fiscal year 2012, 
                        that is received under such provisions 
                        by the local area involved for fiscal 
                        year 2012; and
                          (ii) used with respect to fiscal year 
                        2016 or a succeeding fiscal year, means 
                        the percentage of the amounts allocated 
                        to local areas for the fiscal year 
                        under this paragraph that is received 
                        under this paragraph by the local area 
                        involved for the fiscal year.
  (c) Reallocation Among Local Areas.--
          [(1) In general.--The Governor may, in accordance 
        with this subsection, reallocate to eligible local 
        areas within the State amounts that are allocated under 
        paragraph (2)(A) or (3) of subsection (b) for adult 
        employment and training activities and that are 
        available for reallocation.]
          (1) In general.--The Governor, may in accordance with 
        this subsection, reallocate to eligible local areas 
        within the State amounts that are allocated under 
        subsection (b) for employment and training activities 
        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 area allocation under 
        [paragraph (2)(A) or (3) of subsection (b) for such 
        activities] subsection (b) for such activities, 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 allocated to 
        such local area under subsection (b)(3) for such 
        activities for the prior program year, as compared to 
        the total amount allocated to all eligible local areas 
        in the State under subsection (b)(3) for such 
        activities for such prior program year. For purposes of 
        this paragraph, local areas that received allocations 
        under subsection (b)(2)(A) for the prior program year 
        shall be treated as if the local areas received 
        allocations under subsection (b)(3) for such year.]
          (3) Reallocations.--In making reallocations to 
        eligible local areas of amounts available pursuant to 
        paragraph (2) for a program year, the Governor shall 
        allocate to each eligible local area within the State 
        an amount based on the relative amount allocated to 
        such local area under subsection (b)(2) for such 
        activities for such prior program year, as compared to 
        the total amount allocated to all eligible local areas 
        in the State under subsection (b)(2) for such 
        activities for such prior program year.
          (4) Eligibility.--For purposes of this subsection, an 
        eligible local area means a local area that has 
        obligated at least 80 percent of the local area 
        allocation under [paragraph (2)(A) or (3) of] 
        subsection (b) for such activities, for the program 
        year prior to the program year for which the 
        determination under paragraph (2) is made.
  (d) Local Administrative Cost Limit.--Of the amounts 
allocated to a local area under this section for a fiscal year, 
not more than 10 percent of the amount may be used by the local 
board involved for the administrative costs of carrying out 
local workforce investment activities in the local area under 
this chapter.

SEC. 134. USE OF FUNDS FOR EMPLOYMENT AND TRAINING ACTIVITIES.

  [(a) Statewide Employment and Training Activities.--
          [(1) In general.--Funds reserved by a Governor for a 
        State--
                  [(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.--A 
                State shall use funds reserved as described in 
                section 133(a)(2) to carry out statewide rapid 
                response activities, which 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 in 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 
                        or by an entity designated by the 
                        State, working in conjunction with the 
                        local boards and the chief elected 
                        officials in the local areas.
                  [(B) Other required statewide employment and 
                training activities.--A State shall use funds 
                reserved as described in sections 128(a) and 
                133(a)(1) (regardless of whether the funds were 
                allotted to the State under section 127(b)(1) 
                or paragraph (1) or (2) of section 132(b)) to 
                carry out other statewide employment and 
                training activities, which shall include--
                          [(i) disseminating the State list of 
                        eligible providers of training 
                        services, including eligible providers 
                        of nontraditional training services, 
                        information identifying eligible 
                        providers of on-the-job training and 
                        customized training, and performance 
                        information and program cost 
                        information, as described in 
                        subsections (e) and (h) of section 122;
                          [(ii) conducting evaluations, under 
                        section 136(e), of activities 
                        authorized in this section, in 
                        coordination with the activities 
                        carried out under section 172;
                          [(iii) providing incentive grants to 
                        local areas for regional cooperation 
                        among local boards (including local 
                        boards for a designated region as 
                        described in section 116(c)), for local 
                        coordination of activities carried out 
                        under this Act, and for exemplary 
                        performance by local areas on the local 
                        performance measures;
                          [(iv) providing technical assistance 
                        to local areas that fail to meet local 
                        performance measures;
                          [(v) assisting in the establishment 
                        and operation of one-stop delivery 
                        systems described in subsection (c); 
                        and
                          [(vi) operating a fiscal and 
                        management accountability information 
                        system under section 136(f).
          [(3) Allowable statewide employment and training 
        activities.--
                  [(A) In general.--A State may use funds 
                reserved as described in sections 128(a) and 
                133(a)(1) (regardless of whether the funds were 
                allotted to the State under section 127(b)(1) 
                or paragraph (1) or (2) of section 132(b)) to 
                carry out additional statewide employment and 
                training activities, which may include--
                          [(i) subject to subparagraph (B), 
                        administration by the State of the 
                        activities authorized under this 
                        section;
                          [(ii) provision of capacity building 
                        and technical assistance to local 
                        areas, one-stop operators, one-stop 
                        partners, and eligible providers, 
                        including the development and training 
                        of staff and the development of 
                        exemplary program activities;
                          [(iii) conduct of research and 
                        demonstrations;
                          [(iv)(I) implementation of innovative 
                        incumbent worker training programs, 
                        which may include the establishment and 
                        implementation of an employer loan 
                        program to assist in skills upgrading; 
                        and
                          [(II) the establishment and 
                        implementation of programs targeted to 
                        empowerment zones and enterprise 
                        communities;
                          [(v) support for the identification 
                        of eligible providers of training 
                        services as required under section 122;
                          [(vi)(I) implementation of innovative 
                        programs for displaced homemakers, 
                        which for purposes of this subclause 
                        may include an individual who is 
                        receiving public assistance and is 
                        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.); and
                          [(II) implementation of programs to 
                        increase the number of individuals 
                        training for and placed in 
                        nontraditional employment; and
                          [(vii) carrying out other activities 
                        authorized in this section that the 
                        State determines to be necessary to 
                        assist local areas in carrying out 
                        activities described in subsection (d) 
                        or (e) through the statewide workforce 
                        investment system.
                  [(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 youth activities 
                        carried out under section 129 and 
                        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 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 (d) for 
        adults or dislocated workers, respectively; and
          [(2) may be used to carry out employment and training 
        activities described in subsection (e) for adults or 
        dislocated workers, respectively.
  [(c) Establishment of One-Stop Delivery System.--
          [(1) In general.--There shall be established in a 
        State that receives an allotment under section 132(b) a 
        one-stop delivery system, which--
                  [(A) shall provide the core services 
                described in subsection (d)(2);
                  [(B) shall provide access to intensive 
                services and training services as described in 
                paragraphs (3) and (4) of subsection (d), 
                including serving as the point of access to 
                individual training accounts for training 
                services to participants in accordance with 
                subsection (d)(4)(G);
                  [(C) shall provide access to the activities 
                carried out under subsection (e), if any;
                  [(D) shall provide access to programs and 
                activities carried out by one-stop partners and 
                described in section 121(b); and
                  [(E) shall provide access to the information 
                described in section 15 of the Wagner-Peyser 
                Act 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.--At a minimum, the one-stop 
        delivery system--
                  [(A) shall make each of the programs, 
                services, and activities described in paragraph 
                (1) accessible at not less than one 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 one 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 one 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 core 
                                services will be available 
                                regardless of where the 
                                individuals initially enter the 
                                statewide workforce investment 
                                system, including information 
                                made available through an 
                                access point described in 
                                subclause (I).
          [(3) Specialized centers.--The centers and sites 
        described in paragraph (2) may have a specialization in 
        addressing special needs, such as the needs of 
        dislocated workers.]
  (a) Statewide Employment and Training Activities.--
          (1) In general.--
                  (A) Distribution of statewide activities.--
                Funds reserved by a Governor for a State as 
                described in section 133(a)(1)--
                          (i) shall be used to carry out the 
                        statewide employment and training 
                        activities described in paragraph (2); 
                        and
                          (ii) may be used to carry out any of 
                        the statewide employment and training 
                        activities described in paragraph (3).
                  (B) Statewide rapid response activities.--
                Funds reserved by a Governor for a State as 
                described in section 133(a)(2) shall be used to 
                carry out the statewide rapid response 
                activities described in paragraph (4).
                  (C) Statewide grants for individuals with 
                barriers to employment.--Funds reserved by a 
                Governor for a State as described in section 
                133(a)(3) shall be used to carry out the 
                Statewide Grants for Individuals with Barriers 
                to Employment competition described in 
                paragraph (5).
          (2) Required Statewide employment and training 
        activities.--A State shall use funds reserved as 
        described in section 133(a)(1) to carry out statewide 
        employment and training activities, which shall 
        include--
                  (A) disseminating the State list of eligible 
                providers of training described in section 
                122(d), information identifying eligible 
                providers of on-the-job training and customized 
                training described in section 122(i), and 
                performance information and program cost 
                information described in section 122(b)(2);
                  (B) supporting the provision of work ready 
                services described in subsection (c)(2) in the 
                one-stop delivery system;
                  (C) implementing strategies and services that 
                will be used in the State to assist at-risk 
                youth and out-of-school youth in acquiring the 
                education and skills, recognized postsecondary 
                credentials, and employment experience to 
                succeed in the labor market;
                  (D) conducting evaluations under section 
                136(e) of activities authorized under this 
                chapter in coordination with evaluations 
                carried out by the Secretary under section 172;
                  (E) providing technical assistance to local 
                areas that fail to meet local performance 
                measures;
                  (F) operating a fiscal and management 
                accountability system under section 136(f); and
                  (G) carrying out monitoring and oversight of 
                activities carried out under this chapter.
          (3) Allowable statewide employment and training 
        activities.--A State may use funds reserved as 
        described in section 133(a)(1) to carry out statewide 
        employment and training activities which may include--
                  (A) implementing innovative programs and 
                strategies designed to meet the needs of all 
                employers in the State, including small 
                employers, which may include incumbent worker 
                training programs, sectoral and industry 
                cluster strategies and partnerships, career 
                ladder programs, micro-enterprise and 
                entrepreneurial training and support programs, 
                utilization of effective business 
                intermediaries, 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 investment system more 
                relevant to the needs of State and local 
                businesses, consistent with the objectives of 
                this title;
                  (B) providing incentive grants to local areas 
                for regional cooperation among local boards 
                (including local boards in a designated region 
                as described in section 116(c)), for local 
                coordination of activities carried out under 
                this Act, and for exemplary performance by 
                local areas on the local performance measures;
                  (C) developing strategies for effectively 
                integrating programs and services among one-
                stop partners;
                  (D) carrying out activities to facilitate 
                remote access to services provided through a 
                one-stop delivery system, including 
                facilitating access through the use of 
                technology;
                  (E) incorporating pay-for-performance 
                contracting strategies, as defined in section 
                101(56), as an element in funding activities 
                under this section and providing technical 
                support to local areas and providers in order 
                to carry out such strategy, which may provide 
                assistance with data collection and data entry 
                requirements;
                  (F) carrying out the State option under 
                subsection (f)(8); and
                  (G) carrying out other activities authorized 
                under this section that the State determines to 
                be necessary to assist local areas in carrying 
                out activities described in subsection (c) or 
                (d) through the statewide workforce investment 
                system.
          (4) Statewide rapid response activities.--A State 
        shall use funds reserved as described in section 
        133(a)(2) to carry out statewide rapid response 
        activities, which shall include--
                  (A) provision of rapid response activities, 
                carried out in local areas by the State or by 
                an entity designated by the State, working in 
                conjunction with the local boards and the chief 
                elected officials in the local areas; and
                  (B) provision of additional assistance to 
                local areas that experience disasters, mass 
                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 or by an entity designated 
                by the State, working in conjunction with the 
                local boards and the chief elected officials in 
                the local areas.
          (5) Statewide grants for individuals with barriers to 
        employment.--
                  (A) In general.--Of the funds reserved as 
                described in section 133(a)(3), the Governor of 
                a State--
                          (i) may reserve up to 5 percent to 
                        provide technical assistance to, and 
                        conduct evaluations as described in 
                        section 136(e), of the programs and 
                        activities carried out under this 
                        paragraph; and
                          (ii) using the remainder, shall award 
                        grants on a competitive basis to 
                        eligible entities described in 
                        subparagraph (B) to carry out 
                        employment and training programs 
                        authorized under this paragraph for 
                        individuals with barriers to employment 
                        that meet specific performance outcomes 
                        and criteria established by the 
                        Governor.
                  (B) Eligible entity defined.--For purposes of 
                this paragraph, the term ``eligible entity'' 
                means an entity that--
                          (i) is a--
                                  (I) local board or a 
                                consortium of local boards;
                                  (II) nonprofit entity, for-
                                profit entity, or a consortium 
                                of nonprofit or for-profit 
                                entities; or
                                  (III) consortium of the 
                                entities described in 
                                subclauses (I) and (II);
                          (ii) has a demonstrated record of 
                        placing individuals into unsubsidized 
                        employment and serving hard to serve 
                        individuals; and
                          (iii) agrees to be reimbursed 
                        primarily on the basis of achievement 
                        of specified performance outcomes and 
                        criteria established by the Governor.
                  (C) Grant period.--
                          (i) In general.--A grant under this 
                        paragraph shall be awarded for a period 
                        of 1 year.
                          (ii) Grant renewal.--A Governor of a 
                        State may renew, for up to 4 additional 
                        1-year periods, a grant awarded under 
                        this paragraph.
                  (D) Eligible Participants.--To be eligible to 
                participate in activities under this paragraph, 
                an individual shall be a low-income individual 
                age 16 or older or a member of a low-income 
                family.
                  (E) Use of Funds.--An eligible entity 
                receiving a grant under this paragraph shall 
                use such funds for activities that are designed 
                to assist eligible participants in obtaining 
                employment and acquiring the education and 
                skills necessary to succeed in the labor 
                market.
                  (F) Applications.--To be eligible to receive 
                a grant under this paragraph, an eligible 
                entity shall submit an application to a State 
                at such time, in such manner, and containing 
                such information as the State may require, 
                including--
                          (i) a description of how the 
                        strategies and activities will be 
                        aligned with the State plan submitted 
                        under section 112 and the local plan 
                        submitted under section 118 with 
                        respect to the areas of the State that 
                        will be the focus of grant activities 
                        under this paragraph;
                          (ii) a description of the educational 
                        and skills training programs and 
                        activities the eligible entity will 
                        provide to eligible participants under 
                        this paragraph;
                          (iii) how the eligible entity will 
                        collaborate with State and local 
                        workforce investment systems 
                        established under this title in the 
                        provision of such programs and 
                        activities;
                          (iv) a description of the programs of 
                        demonstrated effectiveness on which the 
                        provision of such educational and 
                        skills training programs and activities 
                        are based, and a description of how 
                        such programs and activities will 
                        improve the education and skills 
                        training for eligible participants;
                          (v) a description of the populations 
                        to be served and the skill needs of 
                        those populations, and the manner in 
                        which eligible participants will be 
                        recruited and selected as participants;
                          (vi) a description of the private, 
                        public, local, and State resources that 
                        will be leveraged, in addition to the 
                        grant funds provided for the programs 
                        and activities under this paragraph, 
                        and how the entity will ensure the 
                        sustainability of such programs and 
                        activities after grant funds are no 
                        longer available;
                          (vii) a description of the extent of 
                        the involvement of employers in such 
                        programs and activities;
                          (viii) a description of the levels of 
                        performance the eligible entity expects 
                        to achieve with respect to the 
                        indicators of performance for all 
                        individuals specified in section in 
                        136(b)(2);
                          (ix) a detailed budget and a 
                        description of the system of fiscal 
                        controls, and auditing and 
                        accountability procedures that will be 
                        used to ensure fiscal soundness for the 
                        programs and activities provided under 
                        this paragraph; and
                          (x) any other criteria the Governor 
                        may require.
  (b) Local Employment and Training Activities.--Funds 
allocated to a local area under section 133(b)--
          (1) shall be used to carry out employment and 
        training activities described in subsection (c); and
          (2) may be used to carry out employment and training 
        activities described in subsection (d).
  [(d)] (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 for 
                dislocated workers under section 133(b)(2)(B), 
                shall be used--
                          [(i) to establish a one-stop delivery 
                        system described in subsection (c);
                          [(ii) to provide the core 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 the intensive 
                        services described in paragraph (3) to 
                        adults and dislocated workers, 
                        respectively, described in such 
                        paragraph; and
                          [(iv) to provide training services 
                        described in paragraph (4) to adults 
                        and dislocated workers, respectively, 
                        described in such paragraph.
                  [(B) Other funds.--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.]
          (1) In general.--Funds allocated to a local area 
        under section 133(b) shall be used--
                  (A) to establish a one-stop delivery system 
                as described in section 121(e);
                  (B) to provide the work ready services 
                described in paragraph (2) through the one-stop 
                delivery system in accordance with such 
                paragraph; and
                  (C) to provide training services described in 
                paragraph (4) in accordance with such 
                paragraph.
          (2) [Core services] Work ready services.--Funds 
        described in paragraph [(1)(A)] (1)(B) shall be used to 
        provide [core services] work ready 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--
                  (A) * * *
                  (B) assistance in obtaining eligibility 
                determinations under the other one-stop partner 
                programs through activities, where appropriate 
                and consistent with the authorizing statute of 
                the one-stop partner program, such as assisting 
                in the submission of applications, the 
                provision of information on the results of such 
                applications, and the provision of intake 
                services and information;
                  [(B)] (C) outreach, intake (which may include 
                worker profiling), and orientation to the 
                information and other services available 
                through the one-stop delivery system;
                  [(C)] (D) initial assessment of skill levels, 
                aptitudes, abilities, and supportive service 
                needs;
                  [(D) job search and placement assistance, and 
                where appropriate, career counseling;]
                  (E) labor exchange services, including--
                          (i) job search and placement 
                        assistance, and where appropriate, 
                        career counseling;
                          (ii) appropriate recruitment services 
                        for employers, including small 
                        employers, in the local area, which may 
                        include services described in this 
                        subsection, including information and 
                        referral to specialized business 
                        services not traditionally offered 
                        through the one-stop delivery system; 
                        and
                          (iii) reemployment services provided 
                        to unemployment claimants, including 
                        claimants identified as in need of such 
                        services under the worker profiling 
                        system established under section 303(j) 
                        of the Social Security Act (42 U.S.C. 
                        503(j));
                  [(E)] (F) provision of [employment 
                statistics] workforce and labor market 
                information, including the provision of 
                accurate information relating to local, 
                regional, and national labor market areas, 
                including--
                          (i) * * *

           *       *       *       *       *       *       *

                  [(F)] (G) 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 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 program activities 
                described in title I of the Rehabilitation Act 
                of 1973 (29 U.S.C. 720 et seq.);
                  [(G)] (H) provision of information regarding 
                how the local area is performing on the local 
                performance measures under section 136 and any 
                additional performance information with respect 
                to the one-stop delivery system in the local 
                area;
                  [(H)] (I) provision of accurate information 
                relating to the availability of supportive 
                services, including child care and 
                transportation, available in the local area, 
                and referral to such services, as appropriate;
                  [(I)] (J) provision of information regarding 
                filing claims for unemployment compensation and 
                the administration of the work test for the 
                unemployment compensation system;
                  [(J) assistance in establishing eligibility 
                for--
                          [(i) welfare-to-work activities 
                        authorized under section 403(a)(5) of 
                        the Social Security Act (as added by 
                        section 5001 of the Balanced Budget Act 
                        of 1997) available in the local area; 
                        and
                          [(ii) programs of financial aid 
                        assistance for training and education 
                        programs that are not funded under this 
                        Act and are available in the local 
                        area; and]
                  (K) assistance in establishing eligibility 
                for programs of financial aid assistance for 
                training and education programs that are not 
                funded under this Act and are available in the 
                local area;
                  (L) the provision of information from 
                official publications of the Internal Revenue 
                Service regarding Federal tax credits available 
                to individuals relating to education, job 
                training and employment;
                  (M) comprehensive and specialized assessments 
                of the skill levels and service needs of 
                workers, which may include--
                          (i) diagnostic testing and use of 
                        other assessment tools; and
                          (ii) in-depth interviewing and 
                        evaluation to identify employment 
                        barriers and appropriate employment 
                        goals;
                  (N) development of an individual employment 
                plan, to identify the employment goals, 
                appropriate achievement objectives, and 
                appropriate combination of services for the 
                participant;
                  (O) group counseling;
                  (P) individual counseling and career 
                planning;
                  (Q) case management;
                  (R) short-term pre-career services, including 
                development of learning skills, communications 
                skills, interviewing skills, punctuality, 
                personal maintenance skills, and professional 
                conduct, to prepare individuals for 
                unsubsidized employment or training;
                  (S) internships and work experience;
                  (T) literacy activities relating to basic 
                work readiness, information and communication 
                technology literacy activities, and financial 
                literacy activities, if such activities are not 
                available to participants in the local area 
                under programs administered under the Adult 
                Education and Family Literacy Act (20 U.S.C. 
                2901 et seq.);
                  (U) out-of-area job search assistance and 
                relocation assistance; and
                  [(K)] (V) 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.
          [(3) Intensive services.--
                  [(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), shall be 
                used to provide intensive services to adults 
                and dislocated workers, respectively--
                          [(i)(I) who are unemployed and are 
                        unable to obtain employment through 
                        core services provided under paragraph 
                        (2); and
                          [(II) who have been determined by a 
                        one-stop operator to be in need of more 
                        intensive services in order to obtain 
                        employment; or
                          [(ii) who are employed, but who are 
                        determined by a one-stop operator to be 
                        in need of such intensive services in 
                        order to obtain or retain employment 
                        that allows for self-sufficiency.
                  [(B) Delivery of services.--Such intensive 
                services shall be provided through the one-stop 
                delivery system--
                          [(i) directly through one-stop 
                        operators identified pursuant to 
                        section 121(d); or
                          [(ii) through contracts with service 
                        providers, which may include contracts 
                        with public, private for-profit, and 
                        private nonprofit service providers, 
                        approved by the local board.
                  [(C) Types of services.--Such intensive 
                services may include the following:
                          [(i) Comprehensive and specialized 
                        assessments of the skill levels and 
                        service needs of adults and dislocated 
                        workers, which may include--
                                  [(I) diagnostic testing and 
                                use of other assessment tools; 
                                and
                                  [(II) 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.
                          [(iii) Group counseling.
                          [(iv) Individual counseling and 
                        career planning.
                          [(v) Case management for participants 
                        seeking training services under 
                        paragraph (4).
                          [(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.]
          (3) Delivery of services.--The work ready services 
        described in paragraph (2) shall be provided through 
        the one-stop delivery system and may be provided 
        through contracts with public, private for-profit, and 
        private nonprofit service providers, approved by the 
        local board.
          (4) Training services.--
                  [(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 a 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 have met the eligibility 
                        requirements for intensive services 
                        under paragraph (3)(A) and who are 
                        unable to obtain or retain employment 
                        through such services;
                          [(ii) who after an interview, 
                        evaluation, or assessment, and case 
                        management, have been determined by a 
                        one-stop operator or one-stop partner, 
                        as appropriate, to be in need of 
                        training services and to have the 
                        skills and qualifications to 
                        successfully participate in the 
                        selected program of training services;
                          [(iii) who select programs of 
                        training services that are directly 
                        linked to the employment opportunities 
                        in the local area involved or in 
                        another area in which the adults or 
                        dislocated workers receiving such 
                        services are willing to relocate;
                          [(iv) who meet the requirements of 
                        subparagraph (B); and
                          [(v) who are determined to be 
                        eligible in accordance with the 
                        priority system, if any, in effect 
                        under subparagraph (E).]
                  (A) In general.--Funds described in paragraph 
                (1)(C) shall be used to provide training 
                services to individuals who--
                          (i) after an interview, evaluation, 
                        or assessment, and case management, 
                        have been determined by a one-stop 
                        operator or one-stop partner, as 
                        appropriate, to--
                                  (I) be in need of training 
                                services to obtain or retain 
                                employment; and
                                  (II) have the skills and 
                                qualifications to successfully 
                                participate in the selected 
                                program of training services;
                          (ii) select programs of training 
                        services that are directly linked to 
                        the employment opportunities in the 
                        local area involved or in another area 
                        in which the individual receiving such 
                        services are willing to commute or 
                        relocate; and
                          (iii) who meet the requirements of 
                        subparagraph (B).
                  (B) Qualification.--
                          (i) Requirement.--[Except] 
                        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) * * *

           *       *       *       *       *       *       *

                  [(D) Training services.--Training services 
                may include--
                          [(i) occupational skills training, 
                        including training for nontraditional 
                        employment;
                          [(ii) on-the-job training;
                          [(iii) programs that combine 
                        workplace training with related 
                        instruction, which may include 
                        cooperative education programs;
                          [(iv) training programs operated by 
                        the private sector;
                          [(v) skill upgrading and retraining;
                          [(vi) entrepreneurial training;
                          [(vii) job readiness training;
                          [(viii) adult education and literacy 
                        activities 
                        provided in combination with services 
                        described in any of clauses (i) through 
                        (vii); and
                          [(ix) customized training conducted 
                        with a commitment by an employer or 
                        group of employers to employ an 
                        individual upon successful completion 
                        of the training.
                  [(E) Priority.--In the event that funds 
                allocated to a local area for adult employment 
                and training activities under paragraph (2)(A) 
                or (3) of section 133(b) are limited, priority 
                shall be given to recipients of public 
                assistance and other low-income individuals for 
                intensive services 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.]
                  (D) Training services.--Training services 
                authorized under this paragraph may include--
                          (i) occupational skills training;
                          (ii) on-the-job training;
                          (iii) skill upgrading and retraining;
                          (iv) entrepreneurial training;
                          (v) education activities leading to a 
                        regular secondary school diploma or its 
                        recognized equivalent in combination 
                        with, concurrently or subsequently, 
                        occupational skills training;
                          (vi) adult education and literacy 
                        activities provided in conjunction with 
                        other training authorized under this 
                        subparagraph;
                          (vii) workplace training combined 
                        with related instruction;
                          (viii) occupational skills training 
                        that incorporates English language 
                        acquisition;
                          (ix) customized training conducted 
                        with a commitment by an employer or 
                        group of employers to employ an 
                        individual upon successful completion 
                        of the training; and
                          (x) training programs operated by the 
                        private sector.
                  [(F)] (E) Consumer choice requirements.--
                          (i) * * *
                          (ii) Eligible providers.--Each local 
                        board, through one-stop centers 
                        referred to in [subsection (c)] section 
                        121, shall make available--
                                  (I) the State list of 
                                eligible providers of training 
                                services required under 
                                [section 122(e)] section 
                                122(d), with a description of 
                                the programs through which the 
                                providers may offer the 
                                training services, and the 
                                information identifying 
                                eligible providers of on-the-
                                job training and customized 
                                training required under 
                                [section 122(h)] section 
                                122(i); and
                                  (II) the performance 
                                information and performance 
                                cost information relating to 
                                eligible providers of training 
                                services described in 
                                [subsections (e) and (h)] 
                                subsection (i) of section 122.
                          [(iii) Individual training 
                        accounts.--An individual who seeks 
                        training services and who is eligible 
                        pursuant to subparagraph (A), may, in 
                        consultation with a case manager, 
                        select an eligible provider of training 
                        services from the list or identifying 
                        information for providers described in 
                        clause (ii)(I). 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.]
                          (iii) Career enhancement accounts.--
                        An individual who seeks training 
                        services and who is eligible pursuant 
                        to subparagraph (A), may, in 
                        consultation with a case manager, 
                        select an eligible provider of training 
                        services from the list or identifying 
                        information for providers described in 
                        clause (ii)(I). 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 a 
                        career enhancement account.
                          (iv) Coordination.--Each local board 
                        may, through one-stop centers, 
                        coordinate career enhancement accounts 
                        with other Federal, State, local, or 
                        private job training programs or 
                        sources to assist the individual in 
                        obtaining training services.
                          (v) Assistance.--Each local board 
                        may, through one-stop centers, assist 
                        individuals receiving career 
                        enhancement accounts in obtaining funds 
                        (in addition to the funds provided 
                        under this section) from other programs 
                        and sources that will assist the 
                        individual in obtaining training 
                        services.
                  [(G)] (F) Use of [individual training 
                accounts] career enhancement 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] career enhancement 
                        accounts in accordance with this 
                        paragraph, and shall be provided to 
                        eligible individuals through the one-
                        stop delivery system.
                          (ii) Exceptions.--Training services 
                        authorized under this paragraph may be 
                        provided pursuant to a contract for 
                        services in lieu of [an individual 
                        training account] a career enhancement 
                        account if the requirements of 
                        [subparagraph (F)] subparagraph (E) are 
                        met and if--
                                  (I) * * *
                                  (II) 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] career enhancement 
                                accounts; [or]
                                  (III) 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 special participant 
                                populations that face multiple 
                                barriers to employment[.]; or
                                  (IV) the local board 
                                determines that it would be 
                                most appropriate to award a 
                                contract to an institution of 
                                higher education that has been 
                                identified as a priority 
                                provider under section 
                                117(d)(5)(B) in order to 
                                facilitate the training of 
                                multiple individuals in in-
                                demand sectors or occupations, 
                                and which may be used to enable 
                                the expansion of programs 
                                provided by a priority 
                                provider, if such contract does 
                                not limit customer choice.
                          (iii) Linkage to occupations in 
                        demand.--Training services provided 
                        under this paragraph shall be directly 
                        linked to occupations that are in 
                        demand in the local area, or in another 
                        area to which an [adult or dislocated 
                        worker] individual 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) Definition.--In this 
                        subparagraph, the term ``special 
                        participant population that faces 
                        multiple barriers to employment'' means 
                        a population of low-income individuals 
                        that is included in one or more of the 
                        following categories:
                                  (I) * * *

           *       *       *       *       *       *       *

                                  (IV) Individuals with 
                                disabilities.
                                  [(IV)] (V) Other hard-to-
                                serve populations as defined by 
                                the Governor involved.
  [(e)] (d) Permissible Local Employment and Training 
Activities.--
          [(1) Discretionary one-stop delivery 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 one-stop delivery described in 
        subsection (c)(2)--
                  [(A) customized screening and referral of 
                qualified participants in training services 
                described in subsection (d)(4) to employment; 
                and
                  [(B) customized employment-related services 
                to employers on a fee-for-service basis.
          [(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 any of paragraphs (2), 
                (3), or (4) of subsection (d); 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 (d)(4).
                  [(B) 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.]
          (1) Discretionary one-stop delivery activities.--
                  (A) In general.--Funds allocated to a local 
                area under section 133(b)(2) may be used to 
                provide, through the one-stop delivery system--
                          (i) customized screening and referral 
                        of qualified participants in training 
                        services to employers;
                          (ii) customized employment-related 
                        services to employers on a fee-for-
                        service basis;
                          (iii) customer supports, including 
                        transportation and childcare, to 
                        navigate among multiple services and 
                        activities for special participant 
                        populations that face multiple barriers 
                        to employment, including individuals 
                        with disabilities;
                          (iv) employment and training 
                        assistance provided in coordination 
                        with child support enforcement 
                        activities of the State agency carrying 
                        out subtitle D of title IV of the 
                        Social Security Act (42 U.S.C. 651 et 
                        seq.);
                          (v) incorporating pay-for-performance 
                        contracting strategies, as defined in 
                        section 101(56), as an element in 
                        funding activities under this section;
                          (vi) activities to facilitate remote 
                        access to services provided through a 
                        one-stop delivery system, including 
                        facilitating access through the use of 
                        technology; and
                          (vii) activities to carry out 
                        business services and strategies that 
                        meet the workforce investment needs of 
                        local area employers, as determined by 
                        the local board, consistent with the 
                        local plan under section 118.
          (2) Incumbent worker training programs.--
                  (A) In general.--The local board may use 
                funds allocated to a local area under section 
                133(b)(2) to carry out incumbent worker 
                training programs in accordance with this 
                paragraph.
                  (B) Training activities.--The training 
                programs for incumbent workers under this 
                paragraph shall be carried out by the local 
                area in conjunction with the employers of such 
                workers for the purpose of assisting such 
                workers in obtaining the skills necessary to 
                retain employment and avert layoffs.
                  (C) Employer match required.--
                          (i) In general.--Employers 
                        participating in programs under this 
                        paragraph shall be required to pay a 
                        proportion of the costs of providing 
                        the training to the incumbent workers 
                        of the employers. The local board shall 
                        establish the required portion of such 
                        costs, which may include in-kind 
                        contributions.
                          (ii) Calculation of match.--The wages 
                        paid by an employer to a worker while 
                        they are attending training may be 
                        included as part of the required 
                        payment of the employer.
  (e) Priority for Placement in Private Sector Jobs.--In 
providing employment and training activities authorized under 
this section, the State and local board shall give priority to 
placing participants in jobs in the private sector.
  (f) Veteran Employment Specialist.--
          (1) In general.--Subject to paragraph (8), a local 
        board shall hire and employ one or more veteran 
        employment specialist to carry out employment, 
        training, and placement services under this subsection 
        in the local area served by the local board.
          (2) Principal duties.--A veteran employment 
        specialist in a local area shall--
                  (A) conduct outreach to employers in the 
                local area to assist veterans, including 
                disabled veterans, in gaining employment, 
                including--
                          (i) conducting seminars for 
                        employers; and
                          (ii) in conjunction with employers, 
                        conducting job search workshops, and 
                        establishing job search groups; and
                  (B) facilitate employment, training, 
                supportive, and placement services furnished to 
                veterans, including disabled and homeless 
                veterans, in the local area.
          (3) Hiring preference for veterans and individuals 
        with expertise in serving veterans.--Subject to 
        paragraph (8), a local board shall, to the maximum 
        extent practicable, employ veterans or individuals with 
        expertise in serving veterans to carry out the services 
        described in paragraph (2) in the local area served by 
        the local board. In hiring an individual to serve as a 
        veteran employment specialist, a local board shall give 
        preference to veterans and other individuals in the 
        following order:
                  (A) To service-connected disabled veterans.
                  (B) If no veteran described in subparagraph 
                (A) is available, to veterans.
                  (C) If no veteran described in subparagraph 
                (A) or (B) is available, to any member of the 
                Armed Forces transitioning out of military 
                service.
                  (D) If no veteran described in subparagraph 
                (A), (B), or (C) is available, to any spouse of 
                a veteran or a spouse of a member of the Armed 
                Forces transitioning out of military service.
                  (E) If no veteran described in subparagraph 
                (A), (B), or (C) is available and no spouse 
                described in paragraph (D) is available, to any 
                other individuals with expertise in serving 
                veterans.
          (4) Administration and reporting.--
                  (A) In general.--Each veteran employment 
                specialist shall be administratively 
                responsible to the manager of the one-stop 
                delivery center in the local area and shall 
                provide, at a minimum, quarterly reports to the 
                manager of such center and to the Director for 
                Veterans' Employment and Training for the State 
                on the performance and compliance by the 
                specialist with Federal law and regulations 
                with respect to the--
                          (i) principal duties and special 
                        services for veterans described in 
                        paragraph (2); and
                          (ii) hiring preferences described in 
                        paragraph (3) for veterans and 
                        individuals with expertise in serving 
                        veterans.
                  (B) Report to Secretary.--Each State shall 
                submit to the Secretary an annual report on the 
                qualifications used by the local board in 
                making hiring determinations for a veteran 
                employment specialist and the salary structure 
                under which such specialist is compensated.
                  (C) Report to Congress.--The Secretary shall 
                submit to the Committee on Education and the 
                Workforce and the Committee on Veterans' 
                Affairs of the House of Representatives and the 
                Committee on Health, Education, Labor, and 
                Pensions and the Committee on Veterans' Affairs 
                of the Senate an annual report summarizing the 
                reports submitted under subparagraph (B), 
                including summaries of outcomes achieved by 
                participating veterans disaggregated by local 
                areas.
          (5) Part-time employees.--A part-time veteran 
        employment specialist shall perform the functions of a 
        veteran employment specialist under this subsection on 
        a halftime basis.
          (6) Training requirements.--Each veteran employment 
        specialist described in paragraph (2) shall 
        satisfactorily complete training provided by the 
        National Veterans' Employment and Training Institute 
        during the three-year period that begins on the date on 
        which the employee is so assigned.
          (7) Specialist's duties.--A full-time veteran 
        employment specialist shall perform only duties related 
        to the employment, training, supportive, and placement 
        services under this subsection, and shall not perform 
        other non-veteran-related duties if such duties detract 
        from the specialist's ability to perform the 
        specialist's duties related to employment, training, 
        and placement services under this subsection.
          (8) State option.--At the request of a local board, a 
        State may assume the duties assigned to the local board 
        under paragraphs (1) and (3), including the hiring and 
        employment of one or more veteran employment specialist 
        for placement in the local area served by the local 
        board.

                     CHAPTER 6--GENERAL PROVISIONS

SEC. 136. PERFORMANCE ACCOUNTABILITY SYSTEM.

  (a) * * *
  (b) State Performance Measures.--
          [(1) In general.--For each State, the State 
        performance measures shall consist of--
                  [(A)(i) the core indicators of performance 
                described in paragraph (2)(A) and the customer 
                satisfaction indicator of performance described 
                in paragraph (2)(B); and
                  [(ii) additional indicators of performance 
                (if any) identified by the State under 
                paragraph (2)(C); and
                  [(B) a State adjusted level of performance 
                for each indicator described in subparagraph 
                (A).
          [(2) Indicators of performance.--
                  [(A) Core indicators of performance.--
                          [(i) In general.--The core indicators 
                        of performance for employment and 
                        training activities authorized under 
                        section 134 (except for self-service 
                        and informational activities) and (for 
                        participants who are eligible youth age 
                        19 through 21) for youth activities 
                        authorized under section 129 shall 
                        consist of--
                                  [(I) entry into unsubsidized 
                                employment;
                                  [(II) retention in 
                                unsubsidized employment 6 
                                months after entry into the 
                                employment;
                                  [(III) earnings received in 
                                unsubsidized employment 6 
                                months after entry into the 
                                employment; and
                                  [(IV) attainment of a 
                                recognized credential relating 
                                to achievement of educational 
                                skills, which may include 
                                attainment of a secondary 
                                school diploma or its 
                                recognized equivalent, or 
                                occupational skills, by 
                                participants who enter 
                                unsubsidized employment, or by 
                                participants who are eligible 
                                youth age 19 through 21 who 
                                enter postsecondary education, 
                                advanced training, or 
                                unsubsidized employment.
                          [(ii) Core indicators for eligible 
                        youth.--The core indicators of 
                        performance (for participants who are 
                        eligible youth age 14 through 18) for 
                        youth activities authorized under 
                        section 129, shall include--
                                  [(I) attainment of basic 
                                skills and, as appropriate, 
                                work readiness or occupational 
                                skills;
                                  [(II) attainment of secondary 
                                school diplomas and their 
                                recognized equivalents; and
                                  [(III) placement and 
                                retention in postsecondary 
                                education or advanced training, 
                                or placement and retention in 
                                military service, employment, 
                                or qualified apprenticeships.
                  [(B) Customer satisfaction indicators.--The 
                customer satisfaction indicator of performance 
                shall consist of customer satisfaction of 
                employers and participants with services 
                received from the workforce investment 
                activities authorized under this subtitle. 
                Customer satisfaction may be measured through 
                surveys conducted after the conclusion of 
                participation in the workforce investment 
                activities.
                  [(C) Additional indicators.--A State may 
                identify in the State plan additional 
                indicators for workforce investment activities 
                authorized under this subtitle.]
          (1) In general.--For each State, the State 
        performance measures shall consist of--
                  (A)(i) the core indicators of performance 
                described in paragraph (2)(A); and
                  (ii) 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) Core indicators of performance.--
                          (i) In general.--The core indicators 
                        of performance for the program of 
                        employment and training activities 
                        authorized under sections 132(a)(2) and 
                        134, the program of adult education and 
                        literacy activities authorized under 
                        title II, 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 the following indicators of 
                        performance, each disaggregated by the 
                        populations identified in the State and 
                        local plans:
                                  (I) The percentage and number 
                                of program participants who are 
                                in unsubsidized employment 
                                during the second full calendar 
                                quarter after exit from the 
                                program.
                                  (II) The percentage and 
                                number of program participants 
                                who are in unsubsidized 
                                employment during the fourth 
                                full calendar quarter after 
                                exit from the program.
                                  (III) The median earnings of 
                                program participants who are in 
                                unsubsidized employment during 
                                the second full calendar 
                                quarter after exit from the 
                                program compared to the median 
                                earnings of such participants 
                                prior to the training received 
                                under such program.
                                  (IV) The percentage and 
                                number of program participants 
                                who obtain a recognized 
                                postsecondary credential, a 
                                registered apprenticeship, an 
                                industry-recognized credential, 
                                or a regular secondary school 
                                diploma or its recognized 
                                equivalent (subject to clause 
                                (ii)), during participation in 
                                or within 1 year after exit 
                                from program.
                                  (V) The percentage and number 
                                of program participants who, 
                                during a program year--
                                          (aa) are in an 
                                        education or training 
                                        program that leads to a 
                                        recognized 
                                        postsecondary 
                                        credential, a 
                                        registered 
                                        apprenticeship or on-
                                        the-job training 
                                        program, an industry-
                                        recognized credential, 
                                        a regular secondary 
                                        school diploma or its 
                                        recognized equivalent, 
                                        or unsubsidized 
                                        employment; and
                                          (bb) are achieving 
                                        measurable basic skill 
                                        gains toward such a 
                                        credential or 
                                        employment.
                                  (VI) The percentage and 
                                number of program participants 
                                who obtain unsubsidized 
                                employment in the field 
                                relating to the training 
                                services described in section 
                                134(c)(4) that such 
                                participants received.
                          (ii) Indicator relating to 
                        credential.--For purposes of clause 
                        (i)(IV), program participants who 
                        obtain a regular 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, 
                        within 1 year after exit from the 
                        program, obtained or retained 
                        employment, have been removed from 
                        public assistance, or are in an 
                        education or training program leading 
                        to a recognized postsecondary 
                        credential.
                  (B) Additional indicators.--A State may 
                identify in the State plan additional 
                indicators for workforce investment activities 
                authorized under this subtitle.
          (3) Levels of performance.--
                  (A) State adjusted levels of performance for 
                core indicators [and customer satisfaction 
                indicator].--
                          (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 core indicators of 
                        performance described in paragraph 
                        (2)(A) [and the customer satisfaction 
                        indicator described in paragraph 
                        (2)(B)] for workforce investment 
                        activities authorized under this 
                        subtitle. The levels of performance 
                        established under this subparagraph 
                        shall, at a minimum--
                                  (I) * * *

           *       *       *       *       *       *       *

                          (ii) Identification in state plan.--
                        Each State shall identify, in the State 
                        plan submitted under section 112, 
                        expected levels of performance for each 
                        of the core indicators of performance 
                        [and the customer satisfaction 
                        indicator of performance, for the first 
                        3], for all 3 program years covered by 
                        the State plan.
                          (iii) Agreement on state adjusted 
                        levels of performance [for first 3 
                        years].--In order to ensure an optimal 
                        return on the investment of Federal 
                        funds in workforce investment 
                        activities authorized under this 
                        subtitle, the Secretary and each 
                        Governor shall reach agreement on 
                        levels of performance for each of the 
                        core indicators of performance [and the 
                        customer satisfaction indicator of 
                        performance, for the first 3 program 
                        years] for all 3 program years covered 
                        by the State plan, taking into account 
                        the levels identified in the State plan 
                        under clause (ii) and the factors 
                        described in clause (iv). The levels 
                        agreed to under this clause shall be 
                        considered to be the State adjusted 
                        levels of performance for the State for 
                        such years and shall be incorporated 
                        into the State plan prior to the 
                        approval of such plan.
                          (iv) Factors.--The agreement 
                        described in clause (iii) [or (v)] 
                        shall take into account--
                                  [(I) the extent to which the 
                                levels involved will assist the 
                                State in attaining a high level 
                                of customer satisfaction;]
                                  [(II)] (I) how the levels 
                                involved compare with the State 
                                adjusted levels of performance 
                                established for other States, 
                                [taking into account] which 
                                shall be adjusted based on 
                                factors including differences 
                                in economic conditions, such as 
                                unemployment rates and job 
                                losses or gains in particular 
                                industries, the characteristics 
                                of participants when the 
                                participants entered the 
                                program, such as indicators of 
                                poor work experience, 
                                dislocation from high-wage 
                                employment, low levels of 
                                literacy or English 
                                proficiency, disability status, 
                                including the number of 
                                veterans with disabilities, and 
                                welfare dependency, and the 
                                services to be provided; and
                                  [(III)] (II) the extent to 
                                which such levels involved 
                                promote continuous improvement 
                                in performance on the 
                                performance measures by such 
                                State and ensure optimal return 
                                on the investment of Federal 
                                funds.
                          [(v) Agreement on state adjusted 
                        levels of performance for 4th and 5th 
                        years.--Prior to the 4th program year 
                        covered by the State plan, the 
                        Secretary and each Governor shall reach 
                        agreement on levels of performance for 
                        each of the core indicators of 
                        performance and the customer 
                        satisfaction indicator of performance, 
                        for the 4th and 5th program years 
                        covered by the State plan, taking into 
                        account the factors described in clause 
                        (iv). The levels agreed to under this 
                        clause shall be considered to be the 
                        State adjusted levels of performance 
                        for the State for such years and shall 
                        be incorporated into the State plan.]
                          [(vi)] (v) Revisions.--If 
                        unanticipated circumstances arise in a 
                        State resulting in a significant change 
                        in the factors [described in clause 
                        (iv)(II)] described in clause (iv)(I), 
                        the Governor may request that the State 
                        adjusted levels of performance agreed 
                        to under clause (iii) [or (v)] be 
                        revised. The Secretary, after 
                        collaboration with the representatives 
                        described in subsection (i), shall 
                        issue objective criteria and methods 
                        for making such revisions.
                  (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 described in 
                [paragraph (2)(C)] paragraph (2)(B). Such 
                levels shall be considered to be State adjusted 
                levels of performance for purposes of this 
                title.
  (c) Local Performance Measures.--
          (1) In general.--For each local area in a State, the 
        local performance measures shall consist of--
                  (A)[(i) the core indicators of performance 
                described in subsection (b)(2)(A), and the 
                customer satisfaction indicator of performance 
                described in subsection (b)(2)(B), for 
                activities described in such subsections, other 
                than statewide workforce investment activities; 
                and] (i) the core indicators of performance 
                described in subsection (b)(2)(A) for 
                activities described in such subsections, other 
                than statewide workforce investment activities; 
                and
                  (ii) additional indicators of performance (if 
                any) identified by the State under subsection 
                [(b)(2)(C)] (b)(2)(B) for activities described 
                in such subsection, other than statewide 
                workforce investment activities; and

           *       *       *       *       *       *       *

          [(3) Determinations.--In determining such local 
        levels of performance, the local board, the chief 
        elected official, and the Governor shall take into 
        account the specific economic, demographic, and other 
        characteristics of the populations to be served in the 
        local area.]
          (3) Determinations.--In determining such local levels 
        of performance, the local board, the chief elected 
        official, and the Governor shall ensure such levels are 
        adjusted based on the specific economic characteristics 
        (such as unemployment rates and job losses or gains in 
        particular industries), demographic characteristics, or 
        other characteristics of the population to be served in 
        the local area.
  (d) Report.--
          (1) In general.--Each State that receives an 
        allotment under section [127 or] 132 shall annually 
        prepare and submit to the Secretary a report on the 
        progress of the State in achieving State performance 
        measures, including information on the levels of 
        performance achieved by the State with respect to the 
        core indicators of performance [and the customer 
        satisfaction indicator]. The annual report also shall 
        include information regarding the progress of local 
        areas in the State in achieving local performance 
        measures, including information on the levels of 
        performance achieved by the areas with respect to the 
        core indicators of performance [and the customer 
        satisfaction indicator]. The report also shall include 
        information on the status of State evaluations of 
        workforce investment activities described in subsection 
        (e), and on the amount and percentage of the State's 
        annual allotment under section 132 the State spends on 
        administrative costs and on the amount and percentage 
        of its annual allocation under section 133 each local 
        area in the State spends on administrative costs.
          (2) Additional information.--In preparing such 
        report, the State shall include, at a minimum, 
        information on participants in workforce investment 
        activities authorized under this subtitle relating to--
                  [(A) entry by participants who have completed 
                training services provided under section 
                134(d)(4) into unsubsidized employment related 
                to the training received;
                  [(B) wages at entry into employment for 
                participants in workforce investment activities 
                who entered unsubsidized employment, including 
                the rate of wage replacement for such 
                participants who are dislocated workers;]
                  [(C)] (A) cost of workforce investment 
                activities relative to the effect of the 
                activities on the performance of participants;
                  [(D) retention and earnings received in 
                unsubsidized employment 12 months after entry 
                into the employment;]
                  [(E)] (B) performance with respect to the 
                indicators of performance specified in 
                subsection (b)(2)(A) of participants in 
                workforce investment activities who received 
                the training services compared with the 
                performance of participants in workforce 
                investment activities who received only 
                services other than the training services 
                [(excluding participants who received only 
                self-service and informational activities)]; 
                [and]
                  [(F) performance with respect to the 
                indicators of performance specified in 
                subsection (b)(2)(A) of recipients of public 
                assistance, out-of-school youth, veterans, 
                individuals with disabilities, displaced 
                homemakers, and older individuals.]
                  (C) with respect to each local area in the 
                State--
                          (i) the number of individuals who 
                        received work ready services described 
                        under section 134(c)(2) and the number 
                        of individuals who received training 
                        services described under section 
                        134(c)(4) during the most recent 
                        program year and fiscal year, and the 
                        preceding 5 program years, where the 
                        individuals received the training, 
                        disaggregated by the type of entity 
                        that provided the training, and the 
                        amount of funds spent on each type of 
                        service;
                          (ii) the number of individuals who 
                        successfully exited out of work ready 
                        services described under section 
                        134(c)(2) and the number of individuals 
                        who exited out of training services 
                        described under section 134(c)(4) 
                        during the most recent program year and 
                        fiscal year, and the preceding 5 
                        program years, and where the 
                        individuals received the training, 
                        disaggregated by the type of entity 
                        that provided the training; and
                          (iii) the average cost per 
                        participant of those individuals who 
                        received work ready services described 
                        under section 134(c)(2) and the average 
                        cost per participant of those 
                        individuals who received training 
                        services described under section 
                        134(c)(4) during the most recent 
                        program year and fiscal year, and the 
                        preceding 5 program years, and where 
                        the individuals received the training, 
                        disaggregated by the type of entity 
                        that provided the training; and
                  (E) the amount of funds spent on training 
                services and discretionary one-stop delivery 
                activities, disaggregated by the populations 
                identified in the State and local plans.
          (3) Information dissemination.--The Secretary--
                  (A) shall make the information contained in 
                such reports available to the general public 
                [through publication] through electronic means 
                and other appropriate methods;

           *       *       *       *       *       *       *

          (4) Data validation.--In preparing the reports 
        described in this subsection, each State shall 
        establish procedures, consistent with guidelines issued 
        by the Secretary, to ensure the information contained 
        in the report is valid and reliable.
          (5) State and local policies.--
                  (A) State policies.--Each State that receives 
                an allotment under section 132 shall maintain a 
                central repository of policies related to 
                access, eligibility, availability of services, 
                and other matters and plans approved by the 
                State board and make such repository available 
                to the public, including by electronic means.
                  (B) Local policies.--Each local area that 
                receives an allotment under section 133 shall 
                maintain a central repository of policies 
                related to access, eligibility, availability of 
                services, and other matters and plans approved 
                by the local board and make such repository 
                available to the public, including by 
                electronic means.

           *       *       *       *       *       *       *

  (g) Sanctions for State Failure To Meet State Performance 
Measures.--
          (1) States.--
                  (A) Technical assistance.--If a State fails 
                to meet State adjusted levels of performance 
                relating to indicators described in 
                subparagraph (A) [or (B)] of subsection (b)(2) 
                for a program for any program year, the 
                Secretary shall, upon request, provide 
                technical assistance in accordance with section 
                170, including assistance in the development of 
                a performance improvement plan.
                  (B) Reduction in amount of grant.--If such 
                failure continues for a second consecutive 
                year, or if a State fails to submit a report 
                under subsection (d) for any program year, the 
                Secretary [may reduce by not more than 5 
                percent,] shall reduce the amount of the grant 
                that would (in the absence of this paragraph) 
                be payable to the State under such program for 
                the immediately succeeding program year. Such 
                penalty shall be based on the degree of failure 
                to meet State adjusted levels of performance.
          [(2) Funds resulting from reduced allotments.--The 
        Secretary shall use an amount retained, as a result of 
        a reduction in an allotment to a State made under 
        paragraph (1)(B), to provide incentive grants under 
        section 503.]
          (2) Funds resulting from reduced allotments.--The 
        Secretary shall return to the Treasury the amount 
        retained, as a result of a reduction in an allotment to 
        a State made under paragraph (1)(B).
  (h) Sanctions for Local Area Failure To Meet Local 
Performance Measures.--
          (1) Technical assistance.--If a local area fails to 
        meet levels of performance relating to indicators 
        described in subparagraph (A) [or (B)] of subsection 
        (b)(2) for a program for any program year, the 
        Governor, or upon request by the Governor, the 
        Secretary, shall provide technical assistance, which 
        may include assistance in the development of a 
        performance improvement plan, or the development of a 
        modified local plan.
          (2) Corrective actions.--
                  (A) In general.--[If such failure continues 
                for a second consecutive year, the Governor 
                shall take corrective actions, which may 
                include development of a reorganization plan 
                through which the Governor may--] If such 
                failure continues for a second consecutive 
                year, the Governor shall take corrective 
                actions, including the development of a 
                reorganization plan. Such plan shall--
                          (i) * * *

           *       *       *       *       *       *       *

                  (B) Reduction in the amount of grant.--If 
                such failure continues for a third consecutive 
                year, the Governor of a State shall reduce the 
                amount of the grant that would (in the absence 
                of this subparagraph) be payable to the local 
                area under such program for the program year 
                after such third consecutive year. Such penalty 
                shall be based on the degree of failure to meet 
                local levels of performance.
                  [(B)] (C) Appeal by local area.--
                          (i) Appeal to governor.--A local area 
                        that is subject to [a reorganization 
                        plan under subparagraph (A) may, not 
                        later than 30 days after receiving 
                        notice of the reorganization plan, 
                        appeal to the Governor to rescind or 
                        revise such plan] corrective actions 
                        under subparagraphs (A) and (B) may, 
                        not later than 30 days after receiving 
                        notice of the actions, appeal to the 
                        Governor to rescind or revise such 
                        actions. In such case, the Governor 
                        shall make a final decision not later 
                        then 30 days after the receipt of the 
                        appeal.

           *       *       *       *       *       *       *

                  [(C)] (D) Effective date.--The decision made 
                by the Governor under clause (i) of 
                [subparagraph (B)] subparagraph (C) shall 
                become effective at the time the Governor 
                issues the decision pursuant to such clause. 
                Such decision shall remain effective unless the 
                Secretary rescinds or revises such plan 
                pursuant to clause (ii) of [subparagraph (B)] 
                subparagraph (C).
  (i) Other Measures and Terminology.--
          (1) Responsibilities.--In order to ensure nationwide 
        comparability of performance data, the Secretary, after 
        collaboration with representatives of appropriate 
        Federal agencies, and representatives of States and 
        political subdivisions, business and industry, 
        employees, eligible providers of employment and 
        training activities, educators, and participants, with 
        expertise regarding workforce investment policies and 
        workforce investment activities, shall issue--
                  (A) * * *
                  (B) terms for a menu of additional indicators 
                of performance described in [subsection 
                (b)(2)(C)] subsection (b)(2)(B) to assist 
                States in assessing their progress toward State 
                workforce investment goals; and
                  (C) objective criteria and methods described 
                in subsection [(b)(3)(A)(vi)] (b)(3)(A)(v) for 
                making revisions to levels of performance.
          (2) Definitions for core indicators.--The Secretary 
        and the representatives described in paragraph (1) 
        shall participate in [the activities described in 
        section 502 concerning] the issuance of definitions for 
        indicators of performance described in subsection 
        (b)(2)(A).
          (3) Assistance.--The Secretary shall make the 
        services of staff available to the representatives to 
        assist the representatives in participating in the 
        collaboration [described in paragraph (1) and in the 
        activities described in section 502] and activities 
        described in this subsection.
  (j) Use of Core Indicators for Other Programs.--In addition 
to the programs carried out under chapter 5, and consistent 
with the requirements of the applicable authorizing laws, the 
Secretary shall use the core indicators of performance 
described in subsection (b)(2)(A) to assess the effectiveness 
of the programs described under section 121(b)(1)(B) that are 
carried out by the Secretary.
  (k) Establishing pay-for-performance incentives.--
          (1) In general.--At the discretion of the Governor of 
        a State, a State may establish an incentive system for 
        local boards to implement pay-for-performance contract 
        strategies for the delivery of employment and training 
        services in the local areas served by the local boards.
          (2) Implementation.--A State that establishes a pay-
        for-performance incentive system shall reserve not more 
        than 10 percent of the total amount allotted to the 
        State under section 132(b)(2) for a fiscal year to 
        provide funds to local areas in the State whose local 
        boards have implemented a pay-for-performance contract 
        strategy.
          (3) Evaluations.--A State described in paragraph (2) 
        shall use funds reserved by the State under section 
        133(a)(1) to evaluate the return on investment of pay-
        for-performance contract strategies implemented by 
        local boards in the State.

[SEC. 137. AUTHORIZATION OF APPROPRIATIONS.

  [(a) Youth Activities.--There are authorized to be 
appropriated to carry out the activities described in section 
127(a), such sums as may be necessary for each of fiscal years 
1999 through 2003.
  [(b) Adult Employment and Training Activities.--There are 
authorized to be appropriated to carry out the activities 
described in section 132(a)(1), such sums as may be necessary 
for each of fiscal years 1999 through 2003.
  [(c) Dislocated Worker Employment and Training Activities.--
There are authorized to be appropriated to carry out the 
activities described in section 132(a)(2), such sums as may be 
necessary for each of fiscal years 1999 through 2003.]

SEC. 137. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated to carry out the 
activities described in section 132, $6,245,318,000 for fiscal 
year 2014 and each of the 6 succeeding fiscal years.

                         Subtitle C--Job Corps

SEC. 141. PURPOSES.

  The purposes of this subtitle are--
          [(1) to maintain a national Job Corps program, 
        carried out in partnership with States and communities, 
        to assist eligible youth who need and can benefit from 
        an intensive program, operated in a group setting in 
        residential and nonresidential centers, to become more 
        responsible, employable, and productive citizens;]
          (1) to maintain a national Job Corps program for at-
        risk youth, carried out in partnership with States and 
        communities, to assist eligible youth to connect to the 
        workforce by providing them with intensive academic, 
        career and technical education, and service-learning 
        opportunities, in residential and nonresidential 
        centers, in order for such youth to obtain regular 
        secondary school diplomas and recognized postsecondary 
        credentials leading to successful careers in in-demand 
        industries that will result in opportunities for 
        advancement;

           *       *       *       *       *       *       *


SEC. 142. DEFINITIONS.

  In this subtitle:
          (1) * * *
          (2) [Applicable one-stop] One-stop center.--The term 
        ``[applicable] one-stop center'' means a one-stop 
        [customer service] center that provides services, such 
        as referral, [intake] assessment, recruitment, and 
        placement, to a Job Corps center.

           *       *       *       *       *       *       *

          (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 [before completing the 
        requirements of a vocational training program, or 
        receiving a secondary school diploma or recognized 
        equivalent, as a result of participation in the Job 
        Corps 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 
        [has completed the requirements of a vocational 
        training program, or received a secondary school 
        diploma or recognized equivalent, as a result of 
        participation in the Job Corps program.] who, as a 
        result of participation in the Job Corps program, has 
        received a regular secondary school diploma, completed 
        the requirements of a career and technical education 
        and training program, or received, or is making 
        satisfactory progress (as defined under section 484(c) 
        of the Higher Education Act of 1965 (20 U.S.C. 1091(c)) 
        toward receiving, a recognized postsecondary 
        credential, including an industry-recognized credential 
        that prepares individuals for employment leading to 
        economic self-sufficiency.

           *       *       *       *       *       *       *


SEC. 144. INDIVIDUALS ELIGIBLE FOR THE JOB CORPS.

  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;]

           *       *       *       *       *       *       *

          (3) an individual who is one or more of the 
        following:
                  (A) * * *
                  (B) A secondary school dropout.

           *       *       *       *       *       *       *

                  (E) An individual who requires additional 
                education, [vocational] career and technical 
                education and training, or intensive counseling 
                and related assistance, in order to participate 
                successfully in regular schoolwork or to secure 
                and hold employment.

           *       *       *       *       *       *       *

          (1) not less than age 16 and not more than age 24 on 
        the date of enrollment;

SEC. 145. RECRUITMENT, SCREENING, SELECTION, AND ASSIGNMENT OF 
                    ENROLLEES.

  (a) Standards and Procedures.--
          (1) * * *
          (2) Methods.--In prescribing standards and procedures 
        under paragraph (1), the Secretary, at a minimum, 
        shall--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) establish standards and procedures for--
                          (i) determining, for each applicant, 
                        whether the educational and 
                        [vocational] 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

           *       *       *       *       *       *       *

          (3) Implementation.--[To the extent practicable, the] 
        The standards and procedures shall be implemented 
        through arrangements with--
                  (A) [applicable] one-stop centers; and
                  [(B) community action agencies, business 
                organizations, and labor organizations; and
                  [(C) agencies and individuals that have 
                contact with youth over substantial periods of 
                time and are able to offer reliable information 
                about the needs and problems of youth.]
                  (B) organizations that have a demonstrated 
                record of effectiveness in placing at-risk 
                youth into employment.

           *       *       *       *       *       *       *

  (b) Special Limitations on Selection.--
          (1) 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) * * *
                  (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 such rules; and
                  [(C) the individual has passed a background 
                check conducted in accordance with procedures 
                established by the Secretary.]
                  (C) the individual has passed a background 
                check conducted in accordance with procedures 
                established by the Secretary, which shall 
                include--
                          (i) a search of the State criminal 
                        registry or repository in the State 
                        where the individual resides and each 
                        State where the individual previously 
                        resided;
                          (ii) a search of State-based child 
                        abuse and neglect registries and 
                        databases in the State where the 
                        individual resides and each State where 
                        the individual previously resided;
                          (iii) a search of the National Crime 
                        Information Center;
                          (iv) a Federal Bureau of 
                        Investigation fingerprint check using 
                        the Integrated Automated Fingerprint 
                        Identification System; and
                          (v) a search of the National Sex 
                        Offender Registry established under the 
                        Adam Walsh Child Protection and Safety 
                        Act of 2006 (42 U.S.C. 16901 et seq.).

           *       *       *       *       *       *       *

          (3) Individuals convicted of a crime.--An individual 
        shall be ineligible for enrollment if the individual--
                  (A) makes a false statement in connection 
                with the criminal background check described in 
                paragraph (1)(C);
                  (B) is registered or is required to be 
                registered on a State sex offender registry or 
                the National Sex Offender Registry established 
                under the Adam Walsh Child Protection and 
                Safety Act of 2006 (42 U.S.C. 16901 et seq.); 
                or
                  (C) has been convicted of a felony consisting 
                of--
                          (i) homicide;
                          (ii) child abuse or neglect;
                          (iii) a crime against children, 
                        including child pornography;
                          (iv) a crime involving rape or sexual 
                        assault; or
                          (v) physical assault, battery, or a 
                        drug-related offense, committed within 
                        the past 5 years.
  (c) Assignment Plan.--
          (1) In general.--Every [2 years] year, the Secretary 
        shall develop and implement [an assignment] 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) * * *

           *       *       *       *       *       *       *

          (2) Analysis.--In order to develop the plan described 
        in paragraph (1), the Secretary shall[, every 2 years,] 
        analyze, for the Job Corps center--
                  (A) * * *
                  (B) the relative demand for participation in 
                the Job Corps in the State and region, and in 
                surrounding regions; [and]
                  (C) the capacity and utilization of the Job 
                Corps center, including the education and 
                training services provided through the 
                center[.]; and
                  (D) the performance of the Job Corps center 
                relating to the indicators described in 
                paragraphs (1) and (2) in section 159(c), and 
                whether any actions have been taken with 
                respect to such center pursuant to 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 [is closest to the home of the 
        enrollee, except that the] 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. The Secretary may waive this requirement 
        if--
                  [(A) the enrollee chooses a vocational 
                training program, or requires an English 
                literacy program, that is not available at such 
                center;]
                  [(B)] (A) the enrollee would be unduly 
                delayed in participating in the Job Corps 
                program because the closest center is operating 
                at full capacity; or
                  [(C)] (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 
        of the enrollee that offers the career and technical 
        education and training desired by pursuant to paragraph 
        (1) if the parent or guardian of the enrollee objects 
        to the assignment.

           *       *       *       *       *       *       *


SEC. 147. JOB CORPS CENTERS.

  (a) Operators and Service Providers.--
          (1) Eligible entities.--
                  (A) Operators.--The Secretary shall enter 
                into an agreement with a Federal, State, or 
                local agency, an area [vocational] career and 
                technical education school or residential 
                [vocational] career and technical school, or a 
                private organization, for the operation of each 
                Job Corps center.

           *       *       *       *       *       *       *

          (2) Selection process.--
                  (A) Competitive basis.--Except as provided in 
                [subsections (c) and (d) of section 303 of the 
                Federal Property and Administrative Services 
                Act of 1949 (41 U.S.C. 253)] 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. 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 [industry 
                council] workforce council for the Job Corps 
                center (if established), and the applicable 
                local board regarding the contents of 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) * * *
                                  [(II) the degree to which the 
                                vocational training that the 
                                entity proposes for the center 
                                reflects local employment 
                                opportunities in the local 
                                areas in which enrollees at the 
                                center intend to seek 
                                employment;]
                                  (II) the ability of the 
                                entity to offer career and 
                                technical education and 
                                training that the workforce 
                                council proposes under section 
                                154(c);
                                  (III) the degree to which the 
                                entity [is familiar with the 
                                surrounding communities, 
                                applicable] demonstrates 
                                relationships with the 
                                surrounding communities, 
                                employers, workforce boards, 
                                one-stop centers, and the State 
                                and region in which the center 
                                is located; [and]
                                  [(IV) the past performance of 
                                the entity, if any, relating to 
                                operating or providing 
                                activities described in this 
                                subtitle to a Job Corps 
                                center.]
                                  (IV) the performance of the 
                                entity, if any, relating to 
                                operating or providing 
                                activities described in this 
                                subtitle to a Job Corps center, 
                                including the entity's 
                                demonstrated effectiveness in 
                                assisting individuals in 
                                achieving the primary and 
                                secondary indicators of 
                                performance described in 
                                paragraphs (1) and (2) of 
                                section 159(c); and
                                  (V) the ability of the entity 
                                to demonstrate a record of 
                                successfully assisting at-risk 
                                youth to connect to the 
                                workforce, including by 
                                providing them with intensive 
                                academic, 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 subclauses (I) 
                        through (IV) of clause (i)[, as 
                        appropriate].
  (b) 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.]
  [(c) Civilian Conservation Centers.--
          [(1) In general.--The Job Corps centers may include 
        Civilian Conservation Centers operated under agreements 
        with the Secretary of Agriculture or the Secretary of 
        the Interior, located primarily in rural areas, which 
        shall provide, in addition to other vocational training 
        and assistance, 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) Selection process.--The Secretary may select an 
        entity to operate a Civilian Conservation Center on a 
        competitive basis, as provided in subsection (a), if 
        the center fails to meet such national performance 
        standards as the Secretary shall establish.
  [(d) 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).]
  (c) Civilian Conservation Centers.--
          (1) 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 adhere to all the 
        provisions of this subtitle, and shall provide, in 
        addition to education, career and technical education 
        and training, and workforce preparation skills training 
        described in section 148, 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) Selection process.--The Secretary shall select an 
        entity that submits an application under subsection (d) 
        to operate a Civilian Conservation Center on a 
        competitive basis, as provided in subsection (a).
  (d) Application.--To be eligible to operate a Job Corps 
center under this subtitle, an entity shall submit an 
application to the Secretary at such time, in such manner, and 
containing such information as the Secretary may require, 
including--
          (1) a description of the program activities that will 
        be offered at the center, including how the career and 
        technical education and training reflect State and 
        local employment opportunities, including in in-demand 
        industries;
          (2) 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 employment upon completion of the program;
          (3) a description of the demonstrated record of 
        effectiveness that the entity has in placing at-risk 
        youth into employment, including past performance of 
        operating a Job Corps center under this subtitle;
          (4) a description of the relationships that the 
        entity has developed with State and local workforce 
        boards, employers, State and local educational 
        agencies, and the surrounding communities in an effort 
        to promote a comprehensive statewide workforce 
        investment system;
          (5) 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);
          (6) a description of the strategies and policies the 
        entity will utilize to reduce participant costs;
          (7) a description of the steps taken to control costs 
        in accordance with section 159(a)(3);
          (8) a detailed budget of the activities that will be 
        supported using funds under this subtitle;
          (9) a detailed budget of the activities that will be 
        supported using funds from non-Federal resources;
          (10) an assurance the entity will comply with the 
        administrative cost limitation included in section 
        151(c);
          (11) an assurance the entity is licensed to operate 
        in the State in which the center is located; and
          (12) an assurance the entity will comply with and 
        meet basic health and safety codes, including those 
        measures described in section 152(b).
  (e) Length of Agreement.--The agreement described in 
subsection (a)(1)(A) shall be for not longer than a 2-year 
period. The Secretary may renew the agreement for 3 one-year 
periods if the entity meets the requirements of subsection (f).
  (f) Renewal.--
          (1) In general.--Subject to paragraph (2), the 
        Secretary may renew the terms of an agreement described 
        in subsection (a)(1)(A) for an entity to operate a Job 
        Corps center if the center meets or exceeds each of the 
        indicators of performance described in section 
        159(c)(1).
          (2) Recompetition.--
                  (A) In general.--Notwithstanding paragraph 
                (1), the Secretary shall not renew the terms of 
                the agreement for an entity to operate a Job 
                Corps center if such center is ranked in the 
                bottom quintile of centers described in section 
                159(f)(2) for any program year. Such entity may 
                submit a new application under subsection (d) 
                only if such center has shown significant 
                improvement on the indicators of performance 
                described in section 159(c)(1) over the last 
                program year.
                  (B) Violations.--The Secretary shall not 
                select an entity to operate a Job Corps center 
                if such entity or such center has been found to 
                have a systemic or substantial material failure 
                that involves--
                          (i) a threat to the health, safety, 
                        or civil rights of program participants 
                        or staff;
                          (ii) the misuse of funds received 
                        under this subtitle;
                          (iii) loss of legal status or 
                        financial viability, loss of permits, 
                        debarment from receiving Federal grants 
                        or contracts, or the improper use of 
                        Federal funds;
                          (iv) failure to meet any other 
                        Federal or State requirement that the 
                        entity has shown an unwillingness or 
                        inability to correct, after notice from 
                        the Secretary, within the period 
                        specified; or
                          (v) an unresolved area of 
                        noncompliance.
  (g) Current Grantees.--Not later than 60 days after the date 
of enactment of the SKILLS Act and notwithstanding any previous 
grant award or renewals of such award under this subtitle, the 
Secretary shall require all entities operating a Job Corps 
center under this subtitle to submit an application under 
subsection (d) to carry out the requirements of this section.

SEC. 148. 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, vocational training, 
        work experience, recreational activities, physical 
        rehabilitation and development, and counseling. Each 
        Job Corps center shall provide enrollees assigned to 
        the center with access to core services described in 
        section 134(d)(2) and the intensive services described 
        in section 134(d)(3).
          [(2) Relationship to opportunities.--
                  [(A) In general.--The activities provided 
                under this subsection shall provide work-based 
                learning throughout the enrollment of the 
                enrollees and assist the enrollees in obtaining 
                meaningful unsubsidized employment, 
                participating in secondary education or 
                postsecondary education programs, enrolling in 
                other suitable vocational training programs, or 
                satisfying Armed Forces requirements, on 
                completion of their enrollment.
                  [(B) Link to employment opportunities.--The 
                vocational training provided shall be linked to 
                the employment opportunities in the local area 
                in which the enrollee intends to seek 
                employment after graduation.]
  (a) Activities Provided hrough Job Corps Centers.--
          (1) In general.--Each Job Corps center shall provide 
        enrollees with an intensive, well-organized, and 
        supervised program of education, career, and technical 
        education and training, work experience, recreational 
        activities, physical rehabilitation and development, 
        and counseling. Each Job Corps center shall provide 
        enrollees assigned to the center with access to work-
        ready services described in section 134(c)(2).
          (2) Relationship to opportunities.--
                  (A) In general.--The activities provided 
                under this subsection shall be targeted to 
                helping enrollees, on completion of their 
                enrollment--
                          (i) secure and maintain meaningful 
                        unsubsidized employment;
                          (ii) complete secondary education and 
                        obtain a regular secondary school 
                        diploma;
                          (iii) enroll in and complete 
                        postsecondary education or training 
                        programs, including obtaining 
                        recognized postsecondary credentials, 
                        industry-recognized credentials, and 
                        registered apprenticeships; or
                          (iv) satisfy Armed Forces 
                        requirements.
                  (B) Link to employment opportunities.--The 
                career and technical education and training 
                provided shall be linked to the employment 
                opportunities in in-demand industries in the 
                State in which the Job Corps center is located.
  (b) [Education and Vocational] Academic and Career and 
Technical Education and Training.--The Secretary [may] shall 
arrange for education and [vocational] career and technical 
training of enrollees through local public or private 
educational agencies, [vocational] career and technical 
educational institutions, or technical institutes, 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.--
          (1) * * *

           *       *       *       *       *       *       *

          [(3) Demonstration.--Each year, any operator seeking 
        to enroll additional enrollees in an advanced career 
        training program shall demonstrate that participants in 
        such program have achieved a satisfactory rate of 
        completion and placement in training-related jobs 
        before the operator may carry out such additional 
        enrollment.]
          (3) Demonstration.--Each year, 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) such operator has met or exceeded the 
                indicators of performance described in 
                paragraphs (1) and (2) of section 159(c) for 
                the previous year.

           *       *       *       *       *       *       *


SEC. 149. COUNSELING AND JOB PLACEMENT.

  (a) Counseling and Testing.--The Secretary shall arrange for 
counseling and testing for each enrollee at regular intervals 
to measure progress in the education and [vocational] career 
and technical education and training programs carried out 
through the Job Corps.
  (b) Placement.--The Secretary shall arrange for counseling 
and testing for enrollees prior to their scheduled graduations 
to determine their capabilities and, based on their 
capabilities, shall [make every effort to arrange to] place the 
enrollees in jobs in the vocations for which the enrollees are 
trained or to assist the enrollees in obtaining 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 fullest extent possible.

           *       *       *       *       *       *       *

  [(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. SUPPORT.

  (a) * * *
  [(b) Readjustment Allowances.--
          [(1) Graduates.--The Secretary shall arrange for a 
        readjustment allowance to be paid to graduates. The 
        Secretary shall arrange for the allowance to be paid at 
        the one-stop center nearest to the home of the graduate 
        who is returning home, or at the one-stop center 
        nearest to the location where the graduate has 
        indicated an intent to seek employment. If the 
        Secretary uses any organization, in lieu of a one-stop 
        center, to provide placement services under this Act, 
        the Secretary shall arrange for that organization to 
        pay the readjustment allowance.
          [(2) Former enrollees.--The Secretary may provide for 
        a readjustment allowance to be paid to former 
        enrollees. The provision of the readjustment allowance 
        shall be subject to the same requirements as are 
        applicable to the provision of the readjustment 
        allowance paid to graduates under paragraph (1).]
  (b) Transition Allowances and Support for Graduates.--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 a recognized 
postsecondary credential, including an industry-recognized 
credential.

SEC. 151. [OPERATING PLAN.] OPERATIONS.

  (a) [In General] 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)] (b) Availability of Operating Plan.--The Secretary 
shall make the operating plan described in [subsections (a) and 
(b)] subsection (a), excluding any proprietary information, 
available to the public.
  (c) Administrative Costs.--Not more than 10 percent of the 
funds allotted under section 147 to an entity selected to 
operate a Job Corps center may be used by the entity for 
administrative costs under this subtitle.

           *       *       *       *       *       *       *


[SEC. 153. COMMUNITY PARTICIPATION.

  [(a) Business and Community Liaison.--Each Job Corps center 
shall have a Business and Community Liaison (referred to in 
this Act as a ``Liaison''), designated by the director of the 
center.
  [(b) Responsibilities.--The responsibilities of the Liaison 
shall include--
          [(1) establishing and developing relationships and 
        networks with--
                  [(A) local and distant employers; and
                  [(B) applicable one-stop centers and 
                applicable local boards,
        for the purpose of providing job opportunities for Job 
        Corps graduates; 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) New Centers.--The Liaison for a Job Corps center that is 
not yet operating shall establish and develop 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.

[SEC. 154. INDUSTRY COUNCILS.

  [(a) In General.--Each Job Corps center shall have an 
industry council, appointed by the director of the center after 
consultation with the Liaison, in accordance with procedures 
established by the Secretary.
  [(b) Industry Council Composition.--
          [(1) In general.--An industry council shall be 
        comprised of--
                  [(A) a majority of members who shall be local 
                and distant 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 area;
                  [(B) representatives of labor organizations 
                (where present) and representatives of 
                employees; and
                  [(C) enrollees and graduates of the Job 
                Corps.
          [(2) Local board.--The industry council may include 
        members of the applicable local boards who meet the 
        requirements described in paragraph (1).
  [(c) Responsibilities.--The responsibilities of the industry 
council shall be--
          [(1) to work closely with all applicable local boards 
        in order to determine, and recommend to the Secretary, 
        appropriate vocational training for the center;
          [(2) to review all the relevant labor market 
        information to--
                  [(A) determine the employment opportunities 
                in the local areas in which the enrollees 
                intend to seek employment after graduation;
                  [(B) determine the skills and education that 
                are necessary to obtain the employment 
                opportunities; and
                  [(C) recommend to the Secretary the type of 
                vocational 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 vocational 
        training provided at the center.
  [(d) New Centers.--The industry 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. 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. 153. COMMUNITY PARTICIPATION.

  The director of each Job Corps center shall encourage and 
cooperate in activities to establish a mutually beneficial 
relationship between Job Corps centers in the State and nearby 
communities. Such activities may include the use of any local 
workforce development boards established under section 117 to 
provide a mechanism for joint discussion of common problems and 
for planning programs of mutual interest.

SEC. 154. WORKFORCE COUNCILS.

  (a) In General.--Each Job Corps center shall have a workforce 
council appointed by the Governor of the State in which the Job 
Corps center is located.
  (b) Workforce Council Composition.--
          (1) In General.--A workforce council shall be 
        comprised of--
                  (A) business members of the State board 
                described in section 111(b)(1)(B)(i);
                  (B) business members of the local boards 
                described in section 117(b)(2)(A) located in 
                the State;
                  (C) a representative of the State board 
                described in section 111(f); and
                  (D) such other representatives and State 
                agency officials as the Governor may designate.
          (2) Majority.--A \2/3\ majority of the members of the 
        workforce council shall be representatives described in 
        paragraph (1)(A).
  (c) Responsibilities.--The responsibilities of the workforce 
council shall be--
          (1) to review all the relevant labor market 
        information, including related information in the State 
        plan described in section 112, to--
                  (A) determine the in-demand industries in the 
                State in which enrollees intend to seek 
                employment after graduation;
                  (B) determine the skills and education that 
                are necessary to obtain the employment 
                opportunities described in subparagraph (A); 
                and
                  (C) determine the type or types of career and 
                technical education and training that will be 
                implemented at the center to enable the 
                enrollees to obtain the employment 
                opportunities; and
          (2) to meet at least once a year to reevaluate the 
        labor market information, and other relevant 
        information, to determine any necessary changes in the 
        career and technical education and training provided at 
        the center.

           *       *       *       *       *       *       *


[SEC. 156. EXPERIMENTAL, RESEARCH, AND DEMONSTRATION PROJECTS.

  [The Secretary may carry out experimental, research, or 
demonstration projects relating to carrying out the Job Corps 
program and may waive any provisions of this subtitle that the 
Secretary finds would prevent the Secretary from carrying out 
the projects.]

SEC. 156. TECHNICAL ASSISTANCE TO CENTERS.

  (a) In General.--From the funds reserved under section 
132(a)(3), the Secretary shall provide, directly or through 
grants, contracts, or other agreements or arrangements as the 
Secretary considers appropriate, technical assistance and 
training for the Job Corps program for the purposes of 
improving program quality.
  (b) Activities.--In providing training and technical 
assistance and for allocating resources for such assistance, 
the Secretary shall--
          (1) assist entities, including those entities not 
        currently operating a Job Corps center, in developing 
        the application described in section 147(d);
          (2) assist Job Corps centers and programs in 
        correcting deficiencies and violations under this 
        subtitle;
          (3) assist Job Corps centers and programs in meeting 
        or exceeding the indicators of performance described in 
        paragraph (1) and (2) of section 159(c); and
          (4) assist Job Corps centers and programs in the 
        development of sound management practices, including 
        financial management procedures.

           *       *       *       *       *       *       *


SEC. 158. SPECIAL PROVISIONS.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Transfer of Property.--
          (1) In general.--Notwithstanding [title II of the 
        Federal Property and Administrative Services Act of 
        1949 (40 U.S.C. 481 et seq.)] chapter of 5 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.

           *       *       *       *       *       *       *


SEC. 159. [MANAGEMENT INFORMATION] PERFORMANCE ACCOUNTABILITY AND 
                    MANAGEMENT.

  (a) Financial Management Information System.--
          (1) * * *

           *       *       *       *       *       *       *

          (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, or operating costs for such centers result in a 
        budgetary shortfall.

           *       *       *       *       *       *       *

  [(c) Information on Indicators of Performance.--
          [(1) Establishment.--The Secretary shall, with 
        continuity and consistency from year to year, establish 
        indicators of performance, and expected levels of 
        performance for Job Corps centers and the Job Corps 
        program, relating to--
                  [(A) the number of graduates and the rate of 
                such graduation, analyzed by type of vocational 
                training received through the Job Corps program 
                and by whether the vocational training was 
                provided by a local or national service 
                provider;
                  [(B) the number of graduates who entered 
                unsubsidized employment related to the 
                vocational training received through the Job 
                Corps program and the number who entered 
                unsubsidized employment not related to the 
                vocational training received, analyzed by 
                whether the vocational training was provided by 
                a local or national service provider and by 
                whether the placement in the employment was 
                conducted by a local or national service 
                provider;
                  [(C) the average wage received by graduates 
                who entered unsubsidized employment related to 
                the vocational training received through the 
                Job Corps program and the average wage received 
                by graduates who entered unsubsidized 
                employment unrelated to the vocational training 
                received;
                  [(D) the average wage received by graduates 
                placed in unsubsidized employment after 
                completion of the Job Corps program--
                          [(i) on the first day of the 
                        employment;
                          [(ii) 6 months after the first day of 
                        the employment; and
                          [(iii) 12 months after the first day 
                        of the employment,
                analyzed by type of vocational training 
                received through the Job Corps program;
                  [(E) the number of graduates who entered 
                unsubsidized employment and were retained in 
                the unsubsidized employment--
                          [(i) 6 months after the first day of 
                        the employment; and
                          [(ii) 12 months after the first day 
                        of the employment;
                  [(F) the number of graduates who entered 
                unsubsidized employment--
                          [(i) for 32 hours per week or more;
                          [(ii) for not less than 20 but less 
                        than 32 hours per week; and
                          [(iii) for less than 20 hours per 
                        week;
                  [(G) the number of graduates who entered 
                postsecondary education or advanced training 
                programs, including apprenticeship programs, as 
                appropriate; and
                  [(H) the number of graduates who attained job 
                readiness and employment skills.
          [(2) Performance of recruiters.--The Secretary shall 
        also establish performance measures, and expected 
        performance levels on the performance measures, for 
        local and national recruitment service providers 
        serving the Job Corps program. The performance measures 
        shall relate to the number of enrollees retained in the 
        Job Corps program for 30 days and for 60 days after 
        initial placement in the program.
          [(3) Report.--The Secretary shall collect, and 
        annually submit a report to the appropriate committees 
        of Congress containing, information on the performance 
        of each Job Corps center, and the Job Corps program, on 
        the core performance measures, as compared to the 
        expected performance level for each performance 
        measure. The report shall also contain information on 
        the performance of the service providers described in 
        paragraph (2) on the performance measures established 
        under such paragraph, as compared to the expected 
        performance levels for the performance measures.
  [(d) Additional Information.--The Secretary shall also 
collect, and submit in the report described in subsection (c), 
information on the performance of each Job Corps center, and 
the Job Corps program, regarding--
          [(1) the number of enrollees served;
          [(2) the average level of learning gains for 
        graduates and former enrollees;
          [(3) the number of former enrollees and graduates who 
        entered the Armed Forces;
          [(4) the number of former enrollees who entered 
        postsecondary education;
          [(5) the number of former enrollees who entered 
        unsubsidized employment related to the vocational 
        training received through the Job Corps program and the 
        number who entered unsubsidized employment not related 
        to the vocational training received;
          [(6) the number of former enrollees and graduates who 
        obtained a secondary school diploma or its recognized 
        equivalent;
          [(7) the number and percentage of dropouts from the 
        Job Corps program including the number dismissed under 
        the zero tolerance policy described in section 152(b); 
        and
          [(8) any additional information required by the 
        Secretary.
  [(e) Methods.--The Secretary may collect the information 
described in subsections (c) and (d) using methods described in 
section 136(f)(2) consistent with State law.
  [(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) Performance improvement plans.--With respect to 
        a Job Corps center that fails to meet the expected 
        levels of performance relating to the core performance 
        measures specified in subsection (c), the Secretary 
        shall develop and implement a performance improvement 
        plan. Such a plan shall require action including--
                  [(A) providing technical assistance to the 
                center;
                  [(B) changing the vocational 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 plans.--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 paragraph (2), for a Job Corps 
        center that fails to meet criteria established by the 
        Secretary other than the expected levels of performance 
        described in paragraph (2).
  [(g) Closure of Job Corps Center.--Prior to the closure of 
any Job Corps center, the Secretary shall ensure--
          [(1) 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
          [(3) 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.]
  (c) Indicators of Performance.--
          (1) Primary indicators.--The annual primary 
        indicators of performance for Job Corps centers shall 
        include--
                  (A) the percentage and number of enrollees 
                who graduate from the Job Corps center;
                  (B) the percentage and number of graduates 
                who entered unsubsidized employment related to 
                the career and technical education and training 
                received through the Job Corps center, except 
                that such calculation shall not include 
                enrollment in education, the military or 
                volunteer service;
                  (C) the percentage and number of graduates 
                who obtained a recognized postsecondary 
                credential, including an industry-recognized 
                credential or a registered apprenticeship; and
                  (D) the cost per successful performance 
                outcome, which is calculated by comparing the 
                number of graduates who were placed in 
                unsubsidized employment or obtained a 
                recognized credential, including an industry-
                recognized credential, to total program costs, 
                including all operations, construction, and 
                administration costs at each Job Corp center.
          (2) Secondary indicators.--The annual secondary 
        indicators of performance for Job Corps centers shall 
        include--
                  (A) the percentage and number of graduates 
                who entered unsubsidized employment not related 
                to the career and technical education and 
                training received through the Job Corps center;
                  (B) the percentage and number of graduates 
                who entered into postsecondary education;
                  (C) the percentage and number of graduates 
                who entered into the military;
                  (D) the average wage of graduates who are in 
                unsubsidized employment--
                          (i) on the first day of employment; 
                        and
                          (ii) 6 months after the first day;
                  (E) the number and percentage of graduates 
                who entered unsubsidized employment and were 
                retained in the unsubsidized employment--
                          (i) 6 months after the first day of 
                        employment; and
                          (ii) 12 months after the first day of 
                        employment;
                  (F) the percentage and number of enrollees 
                compared to the percentage and number of 
                enrollees the Secretary has established targets 
                in section 145(c)(1);
                  (G) the cost per training slot, which is 
                calculated by comparing the program's maximum 
                number of students that can be enrolled in a 
                Job Corps center at any given time during the 
                program year to the number of enrollees in the 
                same program year; and
                  (H) the number and percentage of former 
                enrollees, including the number dismissed under 
                the zero tolerance policy described in section 
                152(b).
          (3) Indicators of performance for recruiters.--The 
        annual indicators of performance for recruiters shall 
        include the measurements described in subparagraph (A) 
        of paragraph (1) and subparagraphs (F), (G), and (H) of 
        paragraph (2).
          (4) Indicators of performance of career transition 
        service providers.--The annual indicators of 
        performance of career transition service providers 
        shall include the measurements described in 
        subparagraphs (B) and (C) of paragraph (1) and 
        subparagraphs, (B), (C), (D), and (E) of paragraph (2).
  (d) Additional Information.--The Secretary shall collect, and 
submit in the report described in subsection (f), information 
on the performance of each Job Corps center, and the Job Corps 
program, regarding--
          (1) the number and percentage of former enrollees who 
        obtained a regular secondary school diploma;
          (2) the number and percentage of former enrollees who 
        entered unsubsidized employment;
          (3) the number and percentage of former enrollees who 
        obtained a recognized postsecondary credential, 
        including an industry-recognized credential;
          (4) the number and percentage of former enrollees who 
        entered into military service; and
          (5) any additional information required by the 
        Secretary.
  (e) Methods.--The Secretary shall collect the information 
described in subsections (c) and (d), using methods described 
in section 136(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) Transparency and Accountability.--
          (1) 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, as 
        well as make available to the public by electronic 
        means, a report containing--
                  (A) information on the performance of each 
                Job Corps center, and the Job Corps program, on 
                the performance indicators described in 
                paragraphs (1) and (2) of subsection (c);
                  (B) a comparison of each Job Corps center, by 
                rank, on the performance indicators described 
                in paragraphs (1) and (2) of subsection (c);
                  (C) a comparison of each Job Corps center, by 
                rank, on the average performance of all primary 
                indicators described in paragraph (1) of 
                subsection (c);
                  (D) information on the performance of the 
                service providers described in paragraphs (3) 
                and (4) of subsection (c) on the performance 
                indicators established under such paragraphs; 
                and
                  (E) a comparison of each service provider, by 
                rank, on the performance of all service 
                providers described in paragraphs (3) and (4) 
                of subsection (c) on the performance indicators 
                established under such paragraphs.
          (2) Assessment.--The Secretary shall conduct an 
        annual assessment of the performance of each Job Corps 
        center which shall include information on the Job Corps 
        centers that--
                  (A) are ranked in the bottom 10 percent on 
                the performance indicator described in 
                paragraph (1)(C); or
                  (B) have failed a safety and health code 
                review described in subsection (g).
          (3) Performance improvement.--With respect to a Job 
        Corps center that is identified under paragraph (2) or 
        reports less than 50 percent on the performance 
        indicators described in subparagraphs (A), (B), or (C) 
        of subsection (c)(1), the Secretary shall develop and 
        implement a 1 year performance improvement plan. Such a 
        plan shall require action including--
                  (A) providing technical assistance to the 
                center;
                  (B) changing the management staff of the 
                center;
                  (C) replacing the operator of the center;
                  (D) reducing the capacity of the center; or
                  (E) closing the center.
          (4) Closure of job corps centers.--Job Corps centers 
        that have been identified under paragraph (2) for more 
        than 4 consecutive years shall be closed. The Secretary 
        shall ensure--
                  (A) that the proposed decision to close the 
                center is announced in advance to the general 
                public through publication in the Federal 
                Register and other appropriate means; and
                  (B) the establishment of a reasonable comment 
                period, not to exceed 30 days, for interested 
                individuals to submit written comments to the 
                Secretary.
  (g) Participant Health and Safety.--The Secretary shall enter 
into an agreement with the General Services Administration or 
the appropriate State agency responsible for inspecting public 
buildings and safeguarding the health of disadvantaged 
students, to conduct an in-person review of the physical 
condition and health-related activities of each Job Corps 
center annually. Such review shall include a passing rate of 
occupancy under Federal and State ordinances.

                     Subtitle D--National Programs

[SEC. 166. 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
                  [(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'' means 
        a Native as such term is defined in section 3(b) of the 
        Alaska Native Claims Settlement Act (43 U.S.C. 
        1602(b)).
          [(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.
  [(c) Program Authorized.--
          [(1) In general.--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).
          [(2) Exception.--The competition for grants, 
        contracts, or cooperative agreements conducted under 
        paragraph (1) shall be conducted every 2 years, except 
        that if a recipient of such a grant, contract, or 
        agreement has performed satisfactorily, the Secretary 
        may waive the requirements for such competition on 
        receipt from the recipient of a satisfactory 2-year 
        program plan for t