[DOCID: f:hr009.109]
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109th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                      109-9

======================================================================



 
                  JOB TRAINING IMPROVEMENT ACT OF 2005

                                _______
                                

 February 25, 2005.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

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

                              R E P O R T

                             together with

                     MINORITY AND ADDITIONAL VIEWS

                         [To accompany H.R. 27]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Education and the Workforce, to whom was 
referred the bill (H.R. 27) to enhance the workforce investment 
system of the Nation by strengthening one-stop career centers, 
providing for more effective governance arrangements, promoting 
access to a more comprehensive array of employment, training, 
and related services, establishing a targeted approach to 
serving youth, and improving performance accountability, and 
for other purposes, 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 ``Job Training Improvement Act of 
2005''.

SEC. 2. TABLE OF CONTENTS.

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.

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

Sec. 101. Definitions.
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 systems.
Sec. 109. Eligible providers of training services.
Sec. 110. Eligible providers of youth activities.
Sec. 111. Youth Activities.
Sec. 112. Comprehensive programs for adults.
Sec. 113. Performance accountability system.
Sec. 114. Authorization of appropriations.
Sec. 115. Job corps.
Sec. 116. Native American programs.
Sec. 117. Migrant and seasonal farmworker programs.
Sec. 118. Veterans' workforce investment programs.
Sec. 119. Youth challenge grants.
Sec. 120. Technical assistance.
Sec. 121. Demonstration, pilot, multiservice, research and multi-State 
projects.
Sec. 122. Community-based job training.
Sec. 123. Personal Reemployment Accounts.
Sec. 124. Training for realtime writers.
Sec. 125. Business partnership grants.
Sec. 126. National dislocated worker grants.
Sec. 127. Authorization of appropriations for national activities.
Sec. 128. Requirements and restrictions.
Sec. 129. Nondiscrimination.
Sec. 130. Administrative provisions.
Sec. 131. General program requirements.

 TITLE II--ADULT EDUCATION, BASIC SKILLS, AND FAMILY LITERACY EDUCATION

Sec. 201. Table of contents.
Sec. 202. Amendment.

             TITLE III--AMENDMENTS TO THE WAGNER-PEYSER ACT

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

         TITLE IV--AMENDMENTS TO THE REHABILITATION ACT OF 1973

Sec. 401. Findings.
Sec. 402. Rehabilitation Services Administration.
Sec. 403. Director.
Sec. 404. Definitions.
Sec. 405. State plan.
Sec. 406. Scope of services.
Sec. 407. Standards and indicators.
Sec. 408. Reservation for expanded transition services.
Sec. 409. Client assistance program.
Sec. 410. Protection and advocacy of individual rights.
Sec. 411. Chairperson.
Sec. 412. Authorizations of appropriations.
Sec. 413. Conforming amendment.
Sec. 414. Helen Keller National Center Act.

                 TITLE V--TRANSITION AND EFFECTIVE DATE

Sec. 501. Transition provisions.
Sec. 502. Effective date.

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 (20 U.S.C. 9201 et seq.).

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

SEC. 101. DEFINITIONS.

  Section 101 (29 U.S.C. 2801) is amended--
          (1) by striking paragraphs (13) and (24) and redesignating 
        paragraphs (1) through (12) as paragraphs (3) through (14), and 
        paragraphs (14) through (23) as paragraphs (15) through (24), 
        respectively;
          (2) 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, 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 
        subtitle 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.'';
          (3) in paragraph (6) (as so redesignated), by inserting ``(or 
        such other level as the Governor may establish)'' after ``8th 
        grade level'';
          (4) in paragraph (10) (as so redesignated)--
                  (A) in subparagraph (B), by striking ``and'' after 
                the semicolon;
                  (B) in subparagraph (C)--
                          (i) 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''; and
                          (ii) by striking the period and inserting ``; 
                        and''; and
                  (C) by adding at the end the following:
                  ``(D) in the case of customized training with an 
                employer in multiple local areas in the State, for 
                which such employer pays a significant portion of the 
                cost of the training, as determined by the Governor.'';
          (5) in paragraph (11)(A)(ii)(II) (as so redesignated) by 
        striking ``section 134(c)'' and inserting ``section 121(e)'';
          (6) in paragraph (14)(A) (as so redesignated) by striking 
        ``section 122(e)(3)'' and inserting ``section 122'';
          (7) 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;''; and
                  (B) by redesignating subparagraphs (D) through (F) as 
                subparagraphs (E) through (G), respectively, and 
                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.);'';
          (8) in paragraph (32) by striking ``the Republic of the 
        Marshall Islands, the Federated States of Micronesia,''; and
          (9) by striking paragraph (33) and redesignating paragraphs 
        (34) through (53) as paragraphs (33) through (52), 
        respectively.

SEC. 102. PURPOSE.

  Section 106 (29 U.S.C. 2811) is amended by inserting at the end the 
following: ``It is also the purpose of this subtitle to provide 
workforce investment activities in a manner that promotes the informed 
choice of participants and actively involves participants in decisions 
affecting their participation in such activities.''.

SEC. 103. STATE WORKFORCE INVESTMENT BOARDS.

  (a) Membership.--
          (1) In general.--Section 111(b) (29 U.S.C. 2821(b)) is 
        amended--
                  (A) by amending paragraph (1)(C) to read as follows:
                  ``(C) representatives appointed by the Governor, who 
                are--
                          ``(i)(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;
                          ``(II) in any case in which no lead State 
                        agency official has responsibility for such a 
                        program or activity, a representative in the 
                        State with expertise relating to such program 
                        or activity; and
                          ``(III) if not included under subclause (I), 
                        the director of the State unit, defined in 
                        section 7(8)(B) of the Rehabilitation Act of 
                        1973 (29 U.S.C. 705(8)(B)) except that in a 
                        State that has established 2 or more designated 
                        State units to administer the vocational 
                        rehabilitation program, the board 
                        representative shall be the director of the 
                        designated State unit that serves the most 
                        individuals with disabilities in the State;
                          ``(ii) the State agency officials responsible 
                        for economic development;
                          ``(iii) representatives of business in the 
                        State who--
                                  ``(I) are owners of businesses, chief 
                                executive or operating officers of 
                                businesses, and other business 
                                executives or employers with optimum 
                                policy making or hiring authority, 
                                including members of local boards 
                                described in section 117(b)(2)(A)(i);
                                  ``(II) represent businesses with 
                                employment opportunities that reflect 
                                employment opportunities in the State; 
                                and
                                  ``(III) are appointed from among 
                                individuals nominated by State business 
                                organizations and business trade 
                                associations;
                          ``(iv) chief elected officials (representing 
                        both cities and counties, where appropriate);
                          ``(v) representatives of labor organizations, 
                        who have been nominated by State labor 
                        federations; and
                          ``(vi) such other representatives and State 
                        agency officials as the Governor may 
                        designate.''; and
                  (B) in paragraph (3), by striking ``paragraph 
                (1)(C)(i)'' and inserting ``paragraph (1)(C)(iii)''.
          (2) Conforming amendment.--Section 111(c) (29 U.S.C 2811(c)) 
        is amended by striking ``subsection (b)(1)(C)(i)'' and 
        inserting ``subsection (b)(1)(C)(iii)''.
  (b) Functions.--Section 111(d) (29 U.S.C. 2811(d)) is amended--
          (1) in paragraph (2), by striking ``section 134(c)'' and 
        inserting ``section 121(e)'';
          (2) by amending paragraph (3) to read as follows:
          ``(3) development and review of statewide policies affecting 
        the integrated provision of services through the one-stop 
        delivery system described in section 121, including--
                  ``(A) the development of criteria for, and the 
                issuance of, certifications of one-stop centers;
                  ``(B) the criteria for the allocation of one-stop 
                center infrastructure funding under section 121(h), and 
                oversight of the use of such funds;
                  ``(C) approaches to facilitating equitable and 
                efficient cost allocation in one-stop delivery systems; 
                and
                  ``(D) such other matters that may promote statewide 
                objectives for, and enhance the performance of, one-
                stop delivery systems within the State;'';
          (3) in paragraph (4), by inserting ``and the development of 
        State criteria relating to the appointment and certification of 
        local boards under section 117'' after ``section 116'';
          (4) in paragraph (5), by striking ``sections 128(b)(3)(B) and 
        133(b)(3)(B)'' and inserting ``sections 128(b)(3) and 
        133(b)(3)''; and
          (5) in paragraph (9), by striking ``section 503'' and 
        inserting ``section 136(i)''.
  (c) Elimination of Alternative Entity and Provision of Authority to 
Hire Staff.--Section 111(e) (29 U.S.C. 2821(e)) is amended to read as 
follows:
  ``(e) Authority To Hire Staff.--The State board may hire staff to 
assist in carrying out the functions described in subsection (d).''.

SEC. 104. STATE PLAN.

  (a) Planning Cycle.--Section 112(a) (29 U.S.C. 2822(a)) is amended by 
striking ``5-year strategy'' and inserting ``2-year strategy''.
  (b) Contents.--Section 112(b) (29 U.S.C. 2822(b)) is amended--
          (1) in paragraph (12)(A), by striking ``sections 128(b)(3)(B) 
        and 133(b)(3)(B)'' and inserting ``sections 128(b)(3) and 
        133(b)(3)'';
          (2) in paragraph (14), by striking ``section 134(c)'' and 
        inserting ``section 121(e)'';
          (3) in paragraph (17)(A)--
                  (A) in clause (iii) by striking ``and'';
                  (B) 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 and 
                        formerly self-employed and transitioning 
                        farmers, ranchers, and fisherman) low income 
                        individuals (including recipients of public 
                        assistance), individuals with limited English 
                        proficiency, homeless individuals, ex-
                        offenders, individuals training for 
                        nontraditional employment, and other 
                        individuals with multiple barriers to 
                        employment (including older individuals); 
                        and''; and
                  (C) by inserting after clause (iv) the following:
                          ``(v) how the State will serve the employment 
                        and training needs of individuals with 
                        disabilities, consistent with section 188 and 
                        Executive Order 13217 (42 U.S.C. 12131 note; 
                        relating to community-based alternatives for 
                        individuals with disabilities) including the 
                        provision of outreach, intake, assessments, and 
                        service delivery, the development of 
                        performance measures, the training of staff, 
                        and other aspects of accessibility to program 
                        services, consistent with sections 504 and 508 
                        of the Rehabilitation Act of 1973; and'';
          (4) in paragraph (18)(D), by striking ``youth opportunity 
        grants'' and inserting ``youth challenge grants''; and
          (5) by adding at the end the following new paragraphs:
          ``(19) a description of the methodology for determining one-
        stop partner program contributions for the cost of the 
        infrastructure of one-stop centers under section 121(h)(1) and 
        of the formula for allocating such infrastructure funds to 
        local areas under section 121(h)(3); and
          ``(20) a description of any programs and strategies the State 
        will utilize to meet the needs of businesses in the State, 
        including small businesses, which may include providing 
        incentives and technical assistance to assist local areas in 
        engaging employers in local workforce development 
        activities.''.
  (c) Modification to Plan.--Section 112(d) (29 U.S.C. 2822(d)) is 
amended by striking ``5-year period'' and inserting ``2-year period''.

SEC. 105. LOCAL WORKFORCE INVESTMENT AREAS.

  (a) Designation of Areas.--
          (1) Considerations.--Section 116(a)(1)(B) (29 U.S.C. 
        2831(a)(1)(B)) is amended by adding at the end the following 
        clause:
                          ``(vi) The extent to which such local areas 
                        will promote efficiency in the administration 
                        and provision of services.''.
          (2) Automatic designation.--Section 116(a)(2) (29 U.S.C. 
        2831(a)(2)) is amended to read as follows:
          ``(2) Automatic designation.--
                  ``(A) In general.--Except as provided in subparagraph 
                (B) of this paragraph and subsection (b), the Governor 
                shall approve a request for designation as a local area 
                from--
                          ``(i) any unit of general local government 
                        with a population of 500,000 or more; and
                          ``(ii) an area served by a rural concentrated 
                        employment program grant recipient that served 
                        as a service delivery area or substate area 
                        under the Job Training Partnership Act (29 
                        U.S.C. 1501 et seq.),
                for the 2-year period covered by a State plan under 
                section 112 if such request is made not later than the 
                date of the submission of the State plan.
                  ``(B) Continued designation based on performance.--
                The Governor may deny a request for designation 
                submitted pursuant to subparagraph (A) if such unit of 
                government was designated as a local area for the 
                preceding 2-year period covered by a State plan and the 
                Governor determines that such local area did not 
                perform successfully during such period.''.
  (b) Regional Planning.--Section 116(c)(1) (29 U.S.C. 2831(c)(1)) is 
amended 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.''.

SEC. 106. LOCAL WORKFORCE INVESTMENT BOARDS.

  (a) Composition.--Section 117(b)(2)(A) (29 U.S.C. 2832(b)(2)(A)) is 
amended--
          (1) in clause (i)(II), by inserting ``, businesses that are 
        in the leading industries in the local area, and large and 
        small businesses in the local area'' after ``local area'';
          (2) by amending clause (ii) to read as follows:
                          ``(ii) a superintendent of the local 
                        secondary school system, an administrator of an 
                        entity providing adult education and literacy 
                        activities that is not a one-stop partner 
                        designated under section 121(b)(1)(B), and the 
                        president or chief executive officer of a 
                        postsecondary educational institution serving 
                        the local area (including community colleges, 
                        where such entities exist);'';
          (3) in clause (iv), by striking the semicolon and inserting 
        ``and faith-based organizations; and''; and
          (4) by striking clause (vi).
  (b) Authority of Board Members.--Section 117(b)(3) (29 U.S.C. 2832(b) 
is amended--
          (1) in the heading, by inserting ``and representation'' after 
        ``members''; and
          (2) by adding at the end the following: ``The members of the 
        board shall represent diverse geographic sections within the 
        local area.''.
  (c) Functions.--Section 117(d) (29 U.S.C. 2832(d)) is amended--
          (1) in paragraph (2)(B), by striking ``by awarding grants'' 
        and all that follows through ``youth council''; and
          (2) in paragraph (4) by inserting ``, and ensure the 
        appropriate use and management of the funds provided under this 
        title for such programs, activities, and system'' after 
        ``area''.
  (d) Authority To Establish Councils and Elimination of Requirement 
for Youth Councils.--Section 117(h) (29 U.S.C. 2832(h)) is amended to 
read as follows:
  ``(h) Establishment of Councils.--The local board may establish 
councils to provide information and advice to assist the local board in 
carrying out activities under this title. Such councils may include a 
council composed of one-stop partners to advise the local board on the 
operation of the one-stop delivery system, a youth council composed of 
experts and stakeholders in youth programs to advise the local board on 
activities for youth, and such other councils as the local board 
determines are appropriate.''.
  (e) Repeal of Alternative Entity Provision.--Section 117 (29 U.S.C. 
2832) is further amended by striking subsection (i).

SEC. 107. LOCAL PLAN.

  (a) Planning Cycle.--Section 118(a) (29 U.S.C. 2833(a)) is amended by 
striking ``5-year'' and inserting ``2-year''.
  (b) Contents.--Section 118(b) (29 U.S.C. 2833(b)) is amended--
          (1) by amending paragraph (2) to read as follows:
          ``(2) a description of the one-stop delivery system to be 
        established or designated in the local area, including 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;'';
          (2) in paragraph (4), by striking ``and dislocated worker'';
          (3) in paragraph (9), by striking ``; and'' and inserting a 
        semicolon; and
          (4) by redesignating paragraph (10) as paragraph (12) and 
        inserting after paragraph (9) the following:
          ``(10) a description of the strategies and services that will 
        be initiated in the local area to engage employers, including 
        small employers, in workforce development activities;
          ``(11) how the local area will serve the employment and 
        training needs of individuals with disabilities, consistent 
        with section 188 and Executive Order 13217 (42 U.S.C. 12131 
        note) including the provision of outreach, intake, assessments, 
        and service delivery, the development of performance measures, 
        the training of staff, and other aspects of accessibility to 
        program services, consistent with sections 504 and 508 of the 
        Rehabilitation Act of 1973; and''.

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

  (a) One-Stop Partners.--
          (1) Required partners.--Section 121(b)(1) (29 U.S.C. 
        2841(b)(1)) is amended--
                  (A) in subparagraph (B)--
                          (i) by striking clauses (ii) and (v);
                          (ii) by redesignating clauses (iii) and (iv) 
                        as clauses (ii) and (iii), respectively, and by 
                        redesignating clauses (vi) through (xii) as 
                        clauses (iv) through (x), respectively;
                          (iii) in clause (ix) (as so redesignated), by 
                        striking ``and'' at the end;
                          (iv) in clause (x) (as so redesignated), by 
                        striking the period and inserting ``; and''; 
                        and
                          (v) by inserting after clause (x)(as so 
                        redesignated) the following:
                          ``(xi) programs authorized under part A of 
                        title IV of the Social Security Act (42 U.S.C. 
                        601 et. seq.), subject to subparagraph (C).''; 
                        and
                  (B) by adding after subparagraph (B) the following:
                  ``(C) Determination by the governor.--The program 
                referred to in clause (xi) of subparagraph (B) shall be 
                included as a required partner for purposes of this 
                title in a State unless the Governor of the State 
                notifies the Secretary and the Secretary of Health and 
                Human Services in writing of a determination by the 
                Governor not to include such programs as required 
                partners for purposes of this title in the State.''.
          (2) Additional partners.--Section 121(b)(2)(B) (29 U.S.C. 
        2841(b)(2)(B)) is amended--
                  (A) by striking clause (i) and redesignating clauses 
                (ii) through (v) as clauses (i) through (iv) 
                respectively;
                  (B) in clause (iii) (as so redesignated) by striking 
                ``and'' at the end;
                  (C) in clause (iv) (as so redesignated) by striking 
                the period and inserting a semicolon; and
                  (D) by adding at the end the following new clauses:
                          ``(v) employment and training programs 
                        administered by the Social Security 
                        Administration, including the Ticket to Work 
                        program (established by Public Law 106-170);
                          ``(vi) employment and training programs 
                        carried out by the Small Business 
                        Administration;
                          ``(vii) programs under part D of title IV of 
                        the Social Security Act (42 U.S.C. 451 et seq.) 
                        (relating to child support enforcement);
                          ``(viii) employment, training, and literacy 
                        services carried out by public libraries; and
                          ``(ix) programs carried out in the local area 
                        for individuals with disabilities, including 
                        programs carried out by State agencies relating 
                        to mental health, mental retardation, and 
                        developmental disabilities, State Medicaid 
                        agencies, State Independent Living Councils, 
                        and Independent Living Centers.''.
  (b) Provision of Services.--Subtitle B of title I is amended--
          (1) in section 121(d)(2), by striking ``section 134(c)'' and 
        inserting ``subsection (e)'';
          (2) by striking subsection (e) of section 121;
          (3) by moving subsection (c) of section 134 from section 134, 
        redesignating such subsection as subsection (e), and inserting 
        such subsection (as so redesignated) after subsection (d) of 
        section 121; and
          (4) by amending subsection (e) of section 121 (as moved and 
        redesignated by paragraph (2))--
                  (A) in paragraph (1)(A), by striking ``subsection 
                (d)(2)'' and inserting ``section 134(c)(2)'';
                  (B) in paragraph (1)(B)--
                          (i) by striking ``subsection (d)'' and 
                        inserting ``section 134(c)''; and
                          (ii) by striking ``subsection (d)(4)(G)'' and 
                        inserting ``section 134(c)(4)(G)'';
                  (C) in paragraph (1)(C), by striking ``subsection 
                (e)'' and inserting ``section 134(d)'';
                  (D) in paragraph (1)(D), by striking ``section 
                121(b)'' and inserting ``subsection (b)''; and
                  (E) by amending paragraph (1)(E) to read as follows:
                  ``(E) shall provide access to the information 
                described in section 15(e) of the Wagner-Peyser Act (29 
                U.S.C. 49l-2(e)).''.
  (c) Certification and Funding of One-Stop Centers.--Section 121 (as 
amended by subsection (b)) is further amended by adding at the end the 
following new subsections:
  ``(g) Certification of One-Stop Centers.--
          ``(1) In general.--The State board shall establish procedures 
        and criteria for periodically certifying one-stop centers for 
        the purpose of awarding the one-stop infrastructure funding 
        described in subsection (h).
          ``(2) Criteria.--The criteria for certification under this 
        subsection shall include 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 
        how the centers ensure that such providers meet the employment 
        needs of local employers and participants.
          ``(3) Effect of certification.--One-stop centers certified 
        under this subsection shall be eligible to receive the 
        infrastructure grants authorized under subsection (h).
  ``(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.--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).
                  ``(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.
                          ``(iii) Native american programs.--Native 
                        American programs established under section 166 
                        shall not be subject to the provisions of this 
                        subsection. The method for determining the 
                        appropriate portion of funds to be provided by 
                        such Native American programs to pay for the 
                        costs of infrastructure of a one-stop center 
                        certified under subsection (g) shall be 
                        determined as part of the development of the 
                        memorandum of understanding under subsection 
                        (c) for the one-stop center and shall be stated 
                        in the memorandum.
          ``(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, equipment 
        (including adaptive technology for individuals with 
        disabilities), strategic planning activities for the center, 
        and common outreach activities.
  ``(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 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 core 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. 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) In General.--The Governor 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.
  ``(b) Criteria.--
          ``(1) In general.--The criteria established pursuant to 
        subsection (a) shall take into account the performance of 
        providers of training services with respect to the indicators 
        described in section 136 or other appropriate indicators 
        (taking into consideration the characteristics of the 
        population served and relevant economic conditions), and such 
        other factors as the Governor determines are appropriate to 
        ensure the quality of services, the accountability of 
        providers, how the centers ensure that such providers meet the 
        needs of local employers and participants, whether providers of 
        training allow participants to attain a certification, 
        certificate, or mastery, and the informed choice of 
        participants under chapter 5. Such criteria shall require that 
        the provider submit appropriate, accurate and timely 
        information to the State for purposes of carrying out 
        subsection (d). The criteria shall also provide for periodic 
        review and renewal of eligibility under this section for 
        providers of training services. The Governor may authorize 
        local areas in the State to establish additional criteria or to 
        modify the criteria established by the Governor under this 
        section for purposes of determining the eligibility of 
        providers of training services to provide such services in the 
        local area.
          ``(2) 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 identify 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 identify 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. The procedures shall also establish a 
process for a provider of training services to appeal a denial or 
termination of eligibility under this section that includes an 
opportunity for a hearing and prescribes appropriate time limits to 
ensure prompt resolution of the appeal.
  ``(d) Information to Assist Participants in Choosing Providers.--
          ``(1) In general.--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, accompanied by such information as the Governor 
        determines is appropriate, is provided to the local boards in 
        the State to be made available to such participants and to 
        members of the public through the one-stop delivery system in 
        the State.
          ``(2) Special rule.--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.) shall be included on the list of eligible 
        providers described in paragraph (1) for so long as such entity 
        remains certified by the Department of Labor.
  ``(e) Agreements With Other States.--States may enter into 
agreements, on a reciprocal basis, to permit eligible providers of 
training services to accept individual training accounts provided in 
another State.
  ``(f) 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.
  ``(g) Opportunity to Submit Comments.--During the development of the 
criteria, procedures, and information required under this section, the 
Governor shall provide an opportunity for interested members of the 
public, including representatives of business and labor organizations, 
to submit comments regarding such criteria, procedures, and 
information.
  ``(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 (g).
          ``(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. ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES.

  (a) Eligible Providers of Youth Activities.--Section 123 (29 U.S.C. 
2843) is amended to read as follows:

``SEC. 123. ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES.

  ``(a) In General.--From the funds allocated under section 128(b) to a 
local area, the local board for such area shall award grants or 
contracts on a competitive basis to providers of youth activities 
identified based on the criteria in the State plan and shall conduct 
oversight with respect to such providers.
  ``(b) Exceptions.--A local board may award grants or contracts on a 
sole-source basis if such board determines there are an insufficient 
number of eligible providers of training services in the local area 
involved (such as rural areas) for grants to be awarded on a 
competitive basis under subsection (a).''.
  (b) Clerical Amendment.--The table of contents in section 1(b) is 
amended by amending the item related to section 123 to read as follows:

``Sec. 123. Eligible providers of youth activities.''.

SEC. 111. YOUTH ACTIVITIES.

  (a) State Allotments.--
          (1) In general.--Section 127(a) (29 U.S.C. 2852(a)) is 
        amended to read as follows:
  ``(a) Allotment Among States.--
          ``(1) Youth activities.--
                  ``(A) Youth challenge grants.--
                          ``(i) Reservation of funds.--Of the amount 
                        appropriated under section 137(a) for each 
                        fiscal year, the Secretary shall reserve 25 
                        percent to provide youth challenge grants under 
                        section 169.
                          ``(ii) Limitation.--Notwithstanding clause 
                        (i), if the amount appropriated under section 
                        137(a) for a fiscal year exceeds 
                        $1,000,000,000, the Secretary shall reserve 
                        $250,000,000 to provide youth challenge grants 
                        under section 169.
                  ``(B) Outlying areas and native americans.--
                          ``(i) In general.--After determining the 
                        amount to be reserved under subparagraph (A), 
                        of the remainder of the amount appropriated 
                        under section 137(a) for each fiscal year the 
                        Secretary shall--
                                  ``(I) reserve not more than \1/4\ of 
                                one percent of such amount to provide 
                                assistance to the outlying areas to 
                                carry out youth activities and 
                                statewide workforce investment 
                                activities; and
                                  ``(II) reserve not more than 1 and 
                                \1/2\ percent of such amount to provide 
                                youth activities under section 166 
                                (relating to Native Americans).
                          ``(ii) 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 108-188)) after the date of enactment of 
                        the Job Training Improvement Act of 2005.
                  ``(C) States.--
                          ``(i) In general.--Of the remainder of the 
                        amount appropriated under section 137(a) for a 
                        fiscal year that is available after determining 
                        the amounts to be reserved under subparagraphs 
                        (A) and (B), the Secretary shall allot--
                                  ``(I) the amount of the remainder 
                                that is less than or equal to the total 
                                amount that was allotted to States for 
                                fiscal year 2005 under section 
                                127(b)(1)(C) of this Act (as in effect 
                                on the day before the date of enactment 
                                of the Job Training Improvement Act of 
                                2005) in accordance with the 
                                requirements of such section 
                                127(b)(1)(C); and
                                  ``(II) the amount of the remainder, 
                                if any, in excess of the amount 
                                referred to in subclause (I) in 
                                accordance with clause (ii).
                          ``(ii) Formulas for excess funds.--Subject to 
                        clauses (iii) and (iv), of the amounts 
                        described in clause (i)(II)--
                                  ``(I) 33\1/3\ percent shall be 
                                allotted on the basis of the relative 
                                number of individuals in the civilian 
                                labor force who are ages 16-19 in each 
                                State, compared to the total number of 
                                individuals in the civilian labor force 
                                who are ages 16-19 in all States;
                                  ``(II) 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; and
                                  ``(III) 33\1/3\ percent shall be 
                                allotted on the basis of the relative 
                                number of disadvantaged youth who are 
                                ages 16 through 21 in each State, 
                                compared to the total number of 
                                disadvantaged youth who are ages 16 
                                through 21 in all States.
                          ``(iii) Minimum and maximum percentages.--The 
                        Secretary shall ensure that no State shall 
                        receive an allotment for a fiscal year that is 
                        less than 90 percent or greater than 130 
                        percent of the allotment percentage of that 
                        State for the preceding fiscal year.
                          ``(iv) Small state minimum allotment.--
                        Subject to clause (iii), the Secretary shall 
                        ensure that no State shall receive an allotment 
                        under this paragraph that is less than \3/10\ 
                        of 1 percent of the amount available under 
                        subparagraph (A).
          ``(2) Definitions.--For the purposes of paragraph (1), the 
        following definitions apply:
                  ``(A) Allotment percentage.--The term `allotment 
                percentage', used with respect to fiscal year 2006 or a 
                subsequent fiscal year, means a percentage of the 
                remainder described in paragraph (1)(C)(i) that is 
                received through an allotment made under this 
                subsection for the fiscal year. The term, with respect 
                to fiscal year 2005, means the percentage of the 
                amounts allotted to States under this chapter (as in 
                effect on the day before the date of enactment of the 
                Job Training Improvement Act of 2005) that is received 
                by the State involved for fiscal year 2005.
                  ``(B) Disadvantaged youth.--The term `disadvantaged 
                youth' means an individual who is age 16 through 21 who 
                received an income, or is a member of a family that 
                received a total family income, that, in relation to 
                family size, does not exceed the poverty line.
          ``(3) Special rule.--For purposes of the formulas specified 
        in paragraph (1)(C), the Secretary shall, as appropriate and to 
        the extent practicable, exclude college students and members of 
        the Armed Forces from the determination of the number of 
        disadvantaged youth.''.
          (2) Reallotment.--Section 127 (29 U.S.C. 2552) is further 
        amended--
                  (A) by striking subsection (b);
                  (B) by redesignating subsection (c) as subsection 
                (b);
                  (C) in subsection (b) (as so redesignated)--
                          (i) by amending paragraph (2) to read as 
                        follows:
          ``(2) Amount.--The amount available for reallotment for a 
        program year is equal to the amount by which the unexpended 
        balance at the end of the program year prior to the program 
        year for which the determination is made exceeds 30 percent of 
        the total amount of funds available to the State under this 
        section during such prior program year (including amounts 
        allotted to the State in all prior program years that remained 
        available). For purposes of this paragraph, the expended 
        balance is the amount that is the difference between--
                  ``(A) the total amount of funds available to the 
                State under this section during the program year prior 
                to the program year for which the determination is made 
                (including amounts allotted to the State in all prior 
                program years that remained available); and
                  ``(B) the accrued expenditures during such prior 
                program year.'';
                          (ii) in paragraph (3)--
                                  (I) by striking ``for the prior 
                                program year'' and inserting ``for the 
                                program year in which the determination 
                                is made''; and
                                  (II) by striking ``such prior program 
                                year'' and inserting ``such program 
                                year'';
                          (iii) by amending paragraph (4) to read as 
                        follows:
          ``(4) Eligibility.--For purposes of this subsection, an 
        eligible State means a State which does not have an amount 
        available for reallotment under paragraph (2) for the program 
        year for which the determination under paragraph (2) is 
        made.''; and
                          (iv) in paragraph (5), by striking 
                        ``obligation'' and inserting ``accrued 
                        expenditure''.
  (b) Within State Allocations.--
          (1) Reservation for statewide activities.--Section 128(a) is 
        amended to read as follows:
  ``(a) Reservation for Statewide Activities.--
          ``(1) In general.--The Governor of a State shall reserve not 
        more than 10 percent of the amount allotted to the State under 
        section 127(a)(1)(C) for a fiscal year for statewide 
        activities.
          ``(2) Use of funds.--Regardless of whether the amounts are 
        allotted under section 127(a)(1)(C) and reserved under 
        paragraph (1) or allotted under section 132 and reserved under 
        section 133(a), the Governor may use the reserved amounts to 
        carry out statewide youth activities under section 129(b) or 
        statewide employment and training activities under section 
        133.''.
          (2) Within state allocations.--Section 128(b) is amended to 
        read as follows:
  ``(b) Within State Allocation.--
          ``(1) In general.--Of the amounts allotted to the State under 
        section 127(a)(1)(C) and not reserved under subsection (a)(1)--
                  ``(A) 80 percent of such amounts shall be allocated 
                by the Governor to local areas in accordance with 
                paragraph (2); and
                  ``(B) 20 percent of such amounts shall be allocated 
                by the Governor to local areas in accordance with 
                paragraph (3).
          ``(2) Established formula.--
                  ``(A) In general.--Of the amounts described in 
                paragraph (1)(A), the Governor shall allocate--
                          ``(i) 33\1/3\ percent shall be allotted on 
                        the basis of the relative number of individuals 
                        in the civilian labor force who are ages 16-19 
                        in each local area, compared to the total 
                        number of individuals in the civilian labor 
                        force who are ages 16-19 in all local areas in 
                        the State;
                          ``(ii) 33\1/3\ percent shall be allotted on 
                        the basis of the relative number of unemployed 
                        individuals in each local area, compared to the 
                        total number of unemployed individuals in all 
                        local areas in the State; and
                          ``(iii) 33\1/3\ percent on the basis of the 
                        relative number of disadvantaged youth who are 
                        ages 16 through 21 in each local area, compared 
                        to the total number of disadvantaged youth who 
                        are ages 16 through 21 in all local areas in 
                        the State.
                  ``(B) Minimum and maximum percentages.--The Governor 
                shall ensure that no local area shall receive an 
                allocation for a fiscal year under this paragraph that 
                is less than 90 percent or greater than 130 percent of 
                the allocation percentage of the local area for the 
                preceding fiscal year.
                  ``(C) Definitions.--
                          ``(i) Allocation percentage.--For purposes of 
                        this paragraph, the term `allocation 
                        percentage', used with respect to fiscal year 
                        2006 or a subsequent fiscal year, means a 
                        percentage of the amount described in 
                        paragraph(1)(A) that is received through an 
                        allocation made under this paragraph for the 
                        fiscal year. The term, with respect to fiscal 
                        year 2005, means the percentage of the amounts 
                        allocated to local areas under this chapter (as 
                        in effect on the day before the date of 
                        enactment of the Job Training Improvement Act 
                        of 2005) that is received by the local area 
                        involved for fiscal year 2005.
                          ``(ii) Disadvantaged youth.--The term 
                        `disadvantaged youth' means an individual who 
                        is age 16 through 21 who received an income, or 
                        is a member of a family that received a total 
                        family income, that, in relation to family 
                        size, does not exceed the poverty line.
          ``(3) Youth discretionary allocation.--The Governor shall 
        allocate to local areas the amounts described in paragraph 
        (1)(B) in accordance with such demographic and economic factors 
        as the Governor, after consultation with the State board and 
        local boards, determines are appropriate.
          ``(4) Local administrative cost limit.--
                  ``(A) In general.--Of the amounts allocated to a 
                local area under this subsection and section 133(b) for 
                a fiscal year, not more than 10 percent of the amount 
                may be used by the local boards for the administrative 
                costs of carrying out local workforce investment 
                activities under this chapter or chapter 5.
                  ``(B) Use of funds.--Funds made available for 
                administrative costs under subparagraph (A) may be used 
                for the administrative costs of any of the local 
                workforce investment activities described in this 
                chapter or chapter 5, regardless of whether the funds 
                were allocated under this subsection or section 
                133(b).''.
          (3) Reallocation.--Section 128(c) (29 U.S.C. 2853(c)) is 
        amended--
                  (A) in paragraph (1), by striking ``paragraph (2)(A) 
                or (3) of'';
                  (B) by amending paragraph (2) to read as follows:
          ``(2) Amount.--The amount available for reallocation for a 
        program year is equal to the amount by which the unexpended 
        balance at the end of the program year prior to the program 
        year for which the determination is made exceeds 30 percent of 
        the total amount of funds available to the local area under 
        this section during such prior program year, (including amounts 
        allotted to the local area in prior program years that remain 
        available). For purposes of this paragraph, the unexpended 
        balance is the amount that is the difference between--
                  ``(A) the total amount of funds available to the 
                local area under this section during the program year 
                prior to the program year for which the determination 
                is made (including amounts allocated to the local area 
                in all prior program years that remained available); 
                and
                  ``(B) the accrued expenditures during such prior 
                program year.'';
                  (C) by amending paragraph (3)--
                          (i) by striking ``subsection (b)(3)'' the 
                        first two places it appears and inserting 
                        ``subsection (b)'';
                          (ii) by striking ``the prior program year'' 
                        and inserting ``the program year in which the 
                        determination is made'';
                          (iii) by striking ``such prior program year'' 
                        and inserting ``such program year''; and
                          (iv) by striking the last sentence; and
                  (D) by amending paragraph (4) to read as follows:
          ``(4) Eligibility.--For purposes of this subsection, an 
        eligible local area means a local area which does not have an 
        amount available for reallocation under paragraph (2) for the 
        program year for which the determination under paragraph (2) is 
        made.''.
  (c) Youth Participant Eligibility.--Section 129(a) (29 U.S.C. 
2854(a)) is amended to read as follows:
  ``(a) Youth Participant Eligibility.--
          ``(1) In general.--The individuals participating in 
        activities carried out under this chapter by a local area 
        during any program year shall be individuals who, at the time 
        the eligibility determination is made, are--
                  ``(A) not younger than age 16 or older than age 24; 
                and
                  ``(B) one or more of the following:
                          ``(i) school dropouts;
                          ``(ii) recipients of a secondary school 
                        diploma, General Educational Development 
                        credential (GED), or other State-recognized 
                        equivalent (including recognized alternative 
                        standards for individuals with disabilities) 
                        who are deficient in basic skills and not 
                        attending any school;
                          ``(iii) court-involved youth attending an 
                        alternative school;
                          ``(iv) youth in foster care or who have been 
                        in foster care; or
                          ``(v) in school youth who are low-income 
                        individuals and one or more of the following:
                                  ``(I) Deficient in literacy skills.
                                  ``(II) Homeless, runaway, or foster 
                                children.
                                  ``(III) Pregnant or parents.
                                  ``(IV) Offenders.
                                  ``(V) Individuals who require 
                                additional assistance to complete an 
                                educational program, or to secure and 
                                hold employment.
          ``(2) Priority for school dropouts.--A priority in the 
        provision of services under this chapter shall be given to 
        individuals who are school dropouts.
          ``(3) Limitations on activities for in-school youth.--
                  ``(A) Percentage of funds.--For any program year, not 
                more than 30 percent of the funds available for 
                statewide activities under subsection (b), and not more 
                than 30 percent of funds available to local areas under 
                subsection (c), may be used to provide activities for 
                in-school youth meeting the requirements of paragraph 
                (1)(B)(v).
                  ``(B) Non-school hours required.--
                          ``(i) In general.--Except as provided in 
                        clause (ii), activities carried out under this 
                        chapter for in-school youth meeting the 
                        requirements of paragraph (1)(B)(v) shall only 
                        be carried out in non-school hours or periods 
                        when school is not in session (such as before 
                        and after school or during recess).
                          ``(ii) Exception.--The requirements of clause 
                        (i) shall not apply to activities carried out 
                        for in-school youth meeting the requirements of 
                        paragraph (1)(B)(v) during school hours that 
                        are part of a program that has demonstrated 
                        effectiveness in high school youth attaining 
                        diplomas.''.
  (d) Statewide Youth Activities.--Section 129(b) (29 U.S.C. 2854(b)) 
is amended to read as follows:
  ``(b) Statewide Activities.--
          ``(1) In general.--Funds reserved by a Governor for a State 
        as described in sections 128(a) and 133(a)(1) may be used for 
        statewide activities including--
                  ``(A) additional assistance to local areas that have 
                high concentrations of eligible youth;
                  ``(B) supporting the provision of core services 
                described in section 134(c)(2) in the one-stop delivery 
                system;
                  ``(C) conducting evaluations under section 136(e) of 
                activities authorized under this chapter and chapter 5 
                in coordination with evaluations carried out by the 
                Secretary under section 172, research, and 
                demonstration projects;
                  ``(D) 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;
                  ``(E) providing technical assistance and capacity 
                building to local areas, one-stop operators, one-stop 
                partners, and eligible providers, including the 
                development and training of staff, the development of 
                exemplary program activities, and the provision of 
                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 under this chapter and chapter 5.
          ``(2) Limitation.--Not more than 5 percent of the funds 
        allotted under section 127(b) shall be used by the State for 
        administrative activities carried out under this subsection and 
        section 133(a).
          ``(3) Prohibition.--No funds described in this subsection or 
        in section 134(a) may be used to develop or implement education 
        curricula for school systems in the State.''.
  (e) Local Elements and Requirements.--
          (1) Program design.--Section 129(c)(1) (29 U.S.C. 2854(c) 
        (1)) is amended--
                  (A) in the matter preceding subparagraph (A), by 
                striking ``paragraph (2)(A) or (3), as appropriate, 
                of'';
                  (B) in subparagraph (B), by inserting ``are directly 
                linked to one or more of the performance outcomes 
                relating to this chapter under section 136, and that'' 
                after ``for each participant that''; and
                  (C) in subparagraph (C)--
                          (i) by redesignating clauses (i) through (iv) 
                        as clauses (ii) through (v), respectively;
                          (ii) by inserting before clause (ii) (as so 
                        redesignated) the following:
                          ``(i) activities leading to the attainment of 
                        a secondary school diploma, General Educational 
                        Development credential (GED), or other State-
                        recognized equivalent (including recognized 
                        alternative standards for individuals with 
                        disabilities);'';
                          (iii) in clause (ii) (as so redesignated), by 
                        inserting ``and advanced training'' after 
                        ``opportunities'';
                          (iv) in clause (iii) (as so redesignated), by 
                        inserting ``that lead to the attainment of 
                        recognized credentials'' after ``learning''; 
                        and
                          (v) by amending clause (v) (as redesignated 
                        by this subparagraph) to read as follows:
                          ``(v) effective connections to employers in 
                        sectors of the local labor market experiencing 
                        high growth in employment opportunities.''.
          (2) Program elements.--Section 129(c)(2) (29 U.S.C. 
        2854(c)(2)) is amended--
                  (A) in subparagraph (A), by striking ``secondary 
                school, including dropout prevention strategies'' and 
                inserting ``secondary school diploma, General 
                Educational Development credential (GED), or other 
                State-recognized equivalent (including recognized 
                alternative standards for individuals with 
                disabilities), including dropout prevention 
                strategies'';
                  (B) in subparagraph (I), by striking ``and'' at the 
                end;
                  (C) in subparagraph (J), by striking the period at 
                the end and inserting a semicolon; and
                  (D) by adding at the end the following:
                  ``(K) on-the-job training opportunities; and
                  ``(L) financial literacy skills.''.
          (3) Additional requirements.--Section 129(c)(3)(A) (29 U.S.C. 
        2854(c)(3)(A)) is amended in the matter preceding clause (i) by 
        striking ``or applicant who meets the minimum income criteria 
        to be considered an eligible youth''.
          (4) Priority and exceptions.--Section 129(c) (29 U.S.C. 
        2854(c)) is further amended--
                  (A) by striking paragraphs (4) and (5);
                  (B) by redesignating paragraph (6) as paragraph (4);
                  (C) by redesignating paragraph (7) as paragraph (5), 
                and in such redesignated paragraph (5) by striking 
                ``youth councils'' and inserting ``local boards''; and
                  (D) by redesignating paragraph (8) as paragraph (6).

SEC. 112. COMPREHENSIVE PROGRAMS FOR ADULTS.

  (a) Title Amendment.--
          (1) The title heading of chapter 5 is amended to read as 
        follows:

   ``CHAPTER 5--COMPREHENSIVE EMPLOYMENT AND TRAINING ACTIVITIES FOR 
                               ADULTS''.

          (2) Clerical amendment.--The table of contents in section 
        1(b) is amended by amending the item related to the heading for 
        chapter 5 to read as follows:

   ``Chapter 5--Comprehensive Employment and Training Activities for 
                               Adults''.

  (b) General Authorization.--Section 131 (29 U.S.C. 2861) is amended--
          (1) by striking ``paragraphs (1)(B) and (2)(B) of''; and
          (2) by striking ``, and dislocated workers,''.
  (c) State Allotments.--
          (1) In general.--Section 132(a) (29 U.S.C. 2862(a)) is 
        amended to read as follows:
  ``(a) In General.--The Secretary shall--
          ``(1) reserve 10 percent of the amount appropriated under 
        section 137(b) for a fiscal year, of which--
                  ``(A) not less than 75 percent shall be used for 
                national dislocated worker grants under section 173, of 
                which up to $125,000,000 may be used to carry out 
                section 171(d);
                  ``(B) not more than 20 percent may be used for 
                demonstration projects under section 171; and
                  ``(C) not more than 5 percent may be used to provide 
                technical assistance under section 170; and
          ``(2) make allotments from 90 percent of the amount 
        appropriated under section 137(b) for a fiscal year in 
        accordance with subsection (b).''.
          (2) Allotment among states.--Section 132(b) (29 U.S.C. 
        2862(b)) is amended to read as follows:
  ``(b) Allotment Among States for Adult Employment and Training 
Activities.--
          ``(1) Reservation for outlying areas.--
                  ``(A) In general.--From the amount made available 
                under subsection (a)(2) for a fiscal year, the 
                Secretary shall reserve not more than \1/4\ of 1 
                percent to provide assistance to outlying areas to 
                carry out employment and training activities for adults 
                and statewide workforce investment activities.
                  ``(B) Restriction.--The Republic of Palau shall cease 
                to be eligible to receive funding under this paragraph 
                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 108-
                188)) after the date of enactment of the Job Training 
                Improvement Act of 2005.
          ``(2) States.--Subject to paragraph (5), of the remainder of 
        the amount referred to under subsection (a)(2) for a fiscal 
        year that is available after determining the amount to be 
        reserved under paragraph (1), the Secretary shall allot to the 
        States for employment and training activities for adults and 
        for statewide workforce investment activities--
                  ``(A) 26 percent in accordance with paragraph (3); 
                and
                  ``(B) 74 percent in accordance with paragraph (4).
          ``(3) Base formula.--
                  ``(A) Fiscal year 2006.--
                          ``(i) In general.--Subject to clause (ii), 
                        the amount referred to in paragraph (2)(A) 
                        shall be allotted for fiscal year 2006 on the 
                        basis of allotment percentage of each State 
                        under section 6 of the Wagner-Peyser Act for 
                        fiscal year 2005.
                          ``(ii) Excess amounts.--If the amount 
                        referred to in paragraph (2)(A) for fiscal year 
                        2006 exceeds the amount that was available for 
                        allotment to the States under the Wagner-Peyser 
                        Act for fiscal year 2005, such excess amount 
                        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 individuals in the civilian labor 
                        force in all States, adjusted to ensure that no 
                        State receives less than \3/10\ of one percent 
                        of such excess amount.
                          ``(iii) Definition.--For purposes of this 
                        subparagraph, the term `allotment percentage' 
                        means the percentage of the amounts allotted to 
                        States under section 6 of the Wagner-Peyser Act 
                        that is received by the State involved for 
                        fiscal year 2005.
                  ``(B) Fiscal years 2007 and thereafter.--
                          ``(i) In general.--Subject to clause (ii), 
                        the amount referred to in paragraph(2)(A) shall 
                        be allotted for fiscal year 2007 and each 
                        fiscal year thereafter on the basis of the 
                        allotment percentage of each State under this 
                        paragraph for the preceding fiscal year.
                          ``(ii) Excess amounts.--If the amount 
                        referred to in paragraph (2)(A) for fiscal year 
                        2007 or any fiscal year thereafter exceeds the 
                        amount that was available for allotment under 
                        this paragraph for the prior fiscal year, such 
                        excess amount 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 individuals in the civilian 
                        labor force in all States, adjusted to ensure 
                        that no State receives less than \3/10\ of one 
                        percent of such excess amount.
                          ``(iii) Definition.--For purposes of this 
                        subparagraph, the term `allotment percentage' 
                        means the percentage of the amounts allotted to 
                        States under this paragraph in a fiscal year 
                        that is received by the State involved for such 
                        fiscal year.
          ``(4) Consolidated formula.--
                  ``(A) In general.--Subject to subparagraphs (B) and 
                (C), of the amount referred to in paragraph (2)(B)--
                          ``(i) 60 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) 25 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) 15 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.
                  ``(B) Minimum and maximum percentages.--
                          ``(i) Minimum percentage.--The Secretary 
                        shall ensure that no State shall receive an 
                        allotment under this paragraph for a fiscal 
                        year that is less than 90 percent of the 
                        allotment percentage of the State under this 
                        paragraph for the preceding fiscal year.
                          ``(ii) Maximum percentage.--Subject to clause 
                        (i), the Secretary shall ensure that no State 
                        shall receive an allotment for a fiscal year 
                        under this paragraph that is more than 130 
                        percent of the allotment of the State under 
                        this paragraph for the preceding fiscal year.
                  ``(C) Small state minimum allotment.--Subject to 
                subparagraph (B), the Secretary shall ensure that no 
                State shall receive an allotment under this paragraph 
                that is less than \2/10\ of 1 percent of the amount 
                available under subparagraph (A).
                  ``(D) Definitions.--For the purposes of this 
                paragraph:
                          ``(i) Allotment percentage.--The term 
                        `allotment percentage', used with respect to 
                        fiscal year 2006 or a subsequent fiscal year, 
                        means a percentage of the amounts described in 
                        paragraph (2)(B) that is received through an 
                        allotment made under this paragraph for the 
                        fiscal year. The term, with respect to fiscal 
                        year 2005, means the percentage of the amounts 
                        allotted to States under this chapter (as in 
                        effect on the day before the date of enactment 
                        of the Job Training Improvement Act of 2005) 
                        and under reemployment service grants received 
                        by the State involved for fiscal year 2005.
                          ``(ii) Disadvantaged adult.--The term 
                        `disadvantaged adult' means an individual who 
                        is age 22 through 72 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 poverty line.
                          ``(iii) Excess number.--The term `excess 
                        number' means, used with respect to the excess 
                        number of unemployed individuals within a 
                        State, the number that represents the number of 
                        unemployed individuals in excess of 4\1/2\ 
                        percent of the civilian labor force in the 
                        State.
          ``(5) Adjustments in allotments based on differences with 
        unconsolidated formulas.--
                  ``(A) In general.--The Secretary shall ensure that 
                for any fiscal year no State has an allotment 
                difference, as defined in subparagraph (C), that is 
                less than zero. The Secretary shall adjust the amounts 
                allotted to the States under this subsection in 
                accordance with subparagraph (B) if necessary to carry 
                out this subparagraph.
                  ``(B) Adjustments in allotments.--
                          ``(i) Redistribution of excess amounts.--
                                  ``(I) In general.--If necessary to 
                                carry out subparagraph (A), the 
                                Secretary shall reduce the amounts that 
                                would be allotted under paragraphs (3) 
                                and (4) to States that have an excess 
                                allotment difference, as defined in 
                                subclause (II), by the amount of such 
                                excess, and use such amounts to 
                                increase the allotments to States that 
                                have an allotment difference less than 
                                zero.
                                  ``(II) Excess amounts.--For purposes 
                                of subclause (I), the term `excess' 
                                allotment difference means an allotment 
                                difference for a State that is--
                                          ``(aa) in excess of 3 percent 
                                        of the amount described in 
                                        subparagraph (C)(i)(II); or
                                          ``(bb) in excess of a 
                                        percentage established by the 
                                        Secretary that is greater than 
                                        3 percent of the amount 
                                        described in subparagraph 
                                        (C)(i)(II) if the Secretary 
                                        determines that such greater 
                                        percentage is sufficient to 
                                        carry out subparagraph (A).
                          ``(ii) Use of amounts available under 
                        national reserve account.--If the funds 
                        available under clause (i) are insufficient to 
                        carry out subparagraph (A), the Secretary shall 
                        use funds reserved under section 132(a) in such 
                        amounts as are necessary to increase the 
                        allotments to States to meet the requirements 
                        of subparagraph (A). Such funds shall be used 
                        in the same manner as the States use the other 
                        funds allotted under this subsection.
                  ``(C) Definition of allotment difference.--
                          ``(i) In general.--For purposes of this 
                        paragraph, the term `allotment difference' 
                        means the difference between--
                                  ``(I) the total amount a State would 
                                receive of the amounts available for 
                                allotment under subsection (b)(2) for a 
                                fiscal year pursuant to paragraphs (3) 
                                and (4); and
                                  ``(II) the total amount the State 
                                would receive of the amounts available 
                                for allotment under subsection (b)(2) 
                                for the fiscal year if such amounts 
                                were allotted pursuant to the 
                                unconsolidated formulas (applied as 
                                described in clause (iii)) that were 
                                used in allotting funds for fiscal year 
                                2005.
                          ``(ii) Unconsolidated formulas.--For purposes 
                        of clause (i), the unconsolidated formulas are:
                                  ``(I) The requirements for the 
                                allotment of funds to the States 
                                contained in section 132(b)(1)(B) of 
                                this Act (as in effect on the day 
                                before the date of enactment of the Job 
                                Training Improvement Act of 2005) that 
                                were applicable to the allotment of 
                                funds under such section for fiscal 
                                year 2005.
                                  ``(II) The requirements for the 
                                allotment of funds to the States 
                                contained in section 132(b)(2)(B) of 
                                this Act (as in effect on the day 
                                before the date of enactment of the Job 
                                Training Improvement Act of 2005) that 
                                were applicable to the allotment of 
                                funds under such section for fiscal 
                                year 2005.
                                  ``(III) The requirements for the 
                                allotment of funds to the States that 
                                were contained in section 6 of the 
                                Wagner-Peyser Act (as in effect on the 
                                day before the date of enactment of the 
                                Job Training Improvement Act of 2005) 
                                that were applicable to the allotment 
                                of funds under such Act for fiscal year 
                                2005.
                                  ``(IV) The requirements for the 
                                allotment of funds to the States that 
                                were established by the Secretary for 
                                Reemployment Services Grants that were 
                                applicable to the allotment of funds 
                                for such grants for fiscal year 2005.
                          ``(iii) Proportionate application of 
                        unconsolidated formulas based on fiscal year 
                        2005.--In calculating the amount under clause 
                        (i)(II), each of the unconsolidated formulas 
                        identified in clause (ii) shall be applied, 
                        respectively, only to the proportionate share 
                        of the total amount of funds available for 
                        allotment under subsection (b)(2) for a fiscal 
                        year that is equal to the proportionate share 
                        to which each of the unconsolidated formulas 
                        applied with respect to the total amount of 
                        funds allotted to the States under all of the 
                        unconsolidated formulas in fiscal year 2005.
                          ``(iv) Rule of construction.--The amounts 
                        used to adjust the allotments to a State under 
                        subparagraph (B) for a fiscal year shall not be 
                        included in the calculation of the amounts 
                        under clause (i) for a subsequent fiscal year, 
                        including the calculation of allocation 
                        percentages for a preceding fiscal year 
                        applicable to paragraphs (3) and (4) and to the 
                        unconsolidated formulas described in clause 
                        (ii).''.
          (3) Reallotment.--Section 132(c) (29 U.S.C. 2862(c)) is 
        amended--
                  (A) by amending paragraph (2) to read as follows:
          ``(2) Amount.--The amount available for reallotment for a 
        program year is equal to the amount by which the unexpended 
        balance at the end of the program year prior to the program 
        year for which the determination is made exceeds 30 percent of 
        the total amount of funds available to the State under this 
        section during such prior program year (including amounts 
        allotted to the State in all prior program years that remained 
        available). For purposes of this paragraph, the expended 
        balance is the amount that is the difference between--
                  ``(A) the total amount of funds available to the 
                State under this section during the program year prior 
                to the program year for which the determination is made 
                (including amounts allotted to the State in all prior 
                program years that remained available); and
                  ``(B) the accrued expenditures during such prior 
                program year.'';
                  (B) in paragraph (3)--
                          (i) by striking ``for the prior program 
                        year'' and inserting ``for the program year in 
                        which the determination is made''; and
                          (ii) by striking ``such prior program year'' 
                        and inserting ``such program year'';
                  (C) by amending paragraph (4) to read as follows:
          ``(4) Eligibility.--For purposes of this subsection, an 
        eligible State means a State that does not have an amount 
        available for reallotment under paragraph (2) for the program 
        year for which the determination under paragraph (2) is 
        made.''; and
                  (D) in paragraph (5), by striking ``obligation'' and 
                inserting ``accrued expenditure''.
  (d) Within State Allocations.--
          (1) Reservation for state activities.--Section 133(a) (29 
        U.S.C. 2863(a)) is amended to read as follows:
  ``(a) Reservation for Statewide Activities.--The Governor of a State 
may reserve up to 50 percent of the total amount allotted to the State 
under section 132 for a fiscal year to carry out the statewide 
activities described in section 134(a).''.
          (2) Allocations to local areas.--Section 133(b) (29 U.S.C. 
        2863(b)) is amended to read as follows:
  ``(b) Allocations to Local Areas.--
          ``(1) In general.--Of the amounts allotted to the State under 
        section 132(b)(2) and not reserved under subsection (a)--
                  ``(A) 85 percent of such amounts shall be allocated 
                by the Governor to local areas in accordance with 
                paragraph (2); and
                  ``(B) 15 percent of such amounts shall be allocated 
                by the Governor to local areas in accordance with 
                paragraph (3).
          ``(2) Established formula.--
                  ``(A) In general.--Of the amounts described in 
                paragraph (1)(A), the Governor shall allocate--
                          ``(i) 60 percent on the basis of the relative 
                        number of unemployed individuals in each local 
                        area, compared to the total number of 
                        unemployed individuals in all local areas in 
                        the State;
                          ``(ii) 25 percent on the basis of the 
                        relative excess number of unemployed 
                        individuals in each local area, compared to the 
                        total excess number of unemployed individuals 
                        in all local areas in the State; and
                          ``(iii) 15 percent shall be allotted on the 
                        basis of the relative number of disadvantaged 
                        adults in each local area, compared to the 
                        total number of disadvantaged adults in all 
                        local areas in the State.
                  ``(B) Minimum and maximum percentages.--The Governor 
                shall ensure that no local area shall receive an 
                allocation for a fiscal year under this paragraph that 
                is less than 90 percent or greater than 130 percent of 
                the allocation percentage of the local area for the 
                preceding fiscal year.
                  ``(C) Definitions.--
                          ``(i) Allocation percentage.--The term 
                        `allocation percentage', used with respect to 
                        fiscal year 2006 or a subsequent fiscal year, 
                        means a percentage of the amount described in 
                        paragraph (1)(A) that is received through an 
                        allocation made under this paragraph for the 
                        fiscal year. The term, with respect to fiscal 
                        year 2005, means the percentage of the amounts 
                        allocated to local areas under this chapter (as 
                        in effect on the day before the date of 
                        enactment of the Job Training Improvement Act 
                        of 2005) that is received by the local area 
                        involved for fiscal year 2005.
                          ``(ii) Disadvantaged adult.--The term 
                        `disadvantaged adult' means an individual who 
                        is age 22 through 72 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 poverty line.
                          ``(iii) Excess number.--The term `excess 
                        number' means, used with respect to the excess 
                        number of unemployed individuals within a local 
                        area, the number that represents the number of 
                        unemployed individuals in excess of 4.5 percent 
                        of the civilian labor force in the local area.
          ``(3) Discretionary allocation.--The Governor shall allocate 
        to local areas the amounts described in paragraph (1)(B) based 
        on a formula developed in consultation with the State board and 
        local boards. Such formula shall be objective and 
        geographically equitable and may include such demographic and 
        economic factors as the Governor, after consultation with the 
        State board and local boards, determines are appropriate.
          ``(4) Local administrative cost limit.--
                  ``(A) In general.--Of the amounts allocated to a 
                local area under this subsection and section 128(b) for 
                a fiscal year, not more than 10 percent of the amount 
                may be used by the local boards for the administrative 
                costs of carrying out local workforce investment 
                activities under this chapter or chapter 4.
                  ``(B) Use of funds.--Funds made available for 
                administrative costs under subparagraph (A) may be used 
                for the administrative costs of any of the local 
                workforce investment activities described in this 
                chapter or chapter 4, regardless of whether the funds 
                were allocated under this subsection or section 
                128(b).''.
          (3) Reallocation among local areas.--Section 133(c) (29 
        U.S.C. 2863(c)) is amended--
                  (A) in paragraph (1), by striking ``paragraph (2)(A) 
                or (3) of'';
                  (B) by amending paragraph (2) to read as follows:
          ``(2) Amount.--The amount available for reallocation for a 
        program year is equal to the amount by which the unexpended 
        balance at the end of the program year prior to the program 
        year for which the determination is made exceeds 30 percent of 
        the total amount of funds available to the local area under 
        this section during such prior program year (including amounts 
        allotted to the local area in prior program years that remain 
        available). For purposes of this paragraph, the unexpended 
        balance is the amount that is the difference between--
                  ``(A) the total amount of funds available to the 
                local area under this section during the program year 
                prior to the program year for which the determination 
                is made (including amounts allocated to the local area 
                in all prior program years that remained available); 
                and
                  ``(B) the accrued expenditures during such prior 
                program year.'';
                  (C) by amending paragraph (3)--
                          (i) by striking ``subsection (b)(3)'' the 
                        first two places it appears and inserting 
                        ``subsection (b)'';
                          (ii) by striking ``the prior program year'' 
                        and inserting ``the program year in which the 
                        determination is made'';
                          (iii) by striking ``such prior program year'' 
                        and inserting ``such program year''; and
                          (iv) by striking the last sentence; and
                  (D) by amending paragraph (4) to read as follows:
          ``(4) Eligibility.--For purposes of this subsection, an 
        eligible local area means a local area which does not have an 
        amount available for reallocation under paragraph (2) for the 
        program year for which the determination under paragraph (2) is 
        made.''.
  (e) Use of Funds for Employment and Training Activities.--
          (1) Statewide employment and training activities.--
                  (A) In general.--Section 134(a)(1) (29 U.S.C. 
                2864(a)(1) is amended to read as follows:
          ``(1) In general.--
                  ``(A) Required use of funds.--Not less than 50 
                percent of the funds reserved by a Governor under 
                section 133(a) shall be used to support the provision 
                of core services in local areas, consistent with the 
                local plan, through one-stop delivery systems by 
                distributing funds to local areas in accordance with 
                subparagraph (B). Such funds may be used by States to 
                employ State personnel to provide such services in 
                designated local areas in consultation with local 
                boards.
                  ``(B) Method of distributing funds.--The method of 
                distributing funds under this paragraph shall be 
                developed in consultation with the State board and 
                local boards. Such method of distribution, which may 
                include the formula established under section 
                121(h)(3), shall be objective and geographically 
                equitable, and 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.
                  ``(C) Other use of funds.--Funds reserved by a 
                Governor for a State--
                          ``(i) under section 133(a) and not used under 
                        subparagraph (A), may be used for statewide 
                        activities described in paragraph (2); and
                          ``(ii) under section 133(a) and not used 
                        under subparagraph (A), and under section 
                        128(a) may be used to carry out any of the 
                        statewide employment and training activities 
                        described in paragraph (3).''.
                  (B) Statewide rapid response activities.--Section 
                134(a)(2) (29 U.S.C. 2864(a)(2)) is amended to read as 
                follows:
          ``(2) Statewide rapid response activities.--A State shall 
        carry out statewide rapid response activities using funds 
        reserved as described in section 133(a). Such activities 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, working in 
                conjunction with the local boards and the chief elected 
                officials in the local areas.''.
                  (C) Statewide employment and training activities.--
                Section 134(a)(3) (29 U.S.C. 2864(a)(3)) is amended to 
                read as follows:
          ``(3) Statewide activities.--Funds reserved by a Governor for 
        a State as described in sections 133(a) and 128(a) may be used 
        for statewide activities including--
                  ``(A) supporting the provision of core services 
                described in section 134(c)(2) in the one-stop delivery 
                system;
                  ``(B) conducting evaluations under section 136(e) of 
                activities authorized under this chapter and chapter 4 
                in coordination with evaluations carried out by the 
                Secretary under section 172, research, and 
                demonstration projects;
                  ``(C) 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;
                  ``(D) providing technical assistance and capacity 
                building to local areas, one-stop operators, one-stop 
                partners, and eligible providers, including the 
                development and training of staff, the development of 
                exemplary program activities, and the provision of 
                technical assistance to local areas that fail to meet 
                local performance measures;
                  ``(E) operating a fiscal and management 
                accountability system under section 136(f);
                  ``(F) carrying out monitoring and oversight of 
                activities carried out under this chapter and chapter 
                4;
                  ``(G) implementing innovative programs, such as 
                incumbent worker training programs, programs and 
                strategies designed to meet the needs of businesses in 
                the State, including small businesses, and engage 
                employers in workforce activities, and programs serving 
                individuals with disabilities consistent with section 
                188;
                  ``(H) developing strategies for effectively serving 
                hard-to-serve populations and for integrating programs 
                and services among one-stop partners;
                  ``(I) implementing innovative programs for displaced 
                homemakers, which for purposes of this subparagraph 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.);
                  ``(J) implementing programs to increase the number of 
                individuals training for and placed in nontraditional 
                employment; and
                  ``(K) carrying out activities to facilitate remote 
                access to services provided through a one-stop delivery 
                system, including facilitating access through the use 
                of technology.''.
                  (D) Limitation on state administrative 
                expenditures.--Section 134(a) is further amended by 
                adding the following new paragraph:
          ``(4) Limitation.--Not more than 5 percent of the funds 
        allotted under section 132(b) shall be used by the State for 
        administrative activities carried out under this subsection and 
        section 128(a).''.
          (2) Local employment and training activities.--Section 134(b) 
        (29 U.S.C. 2864(b)) is amended--
                  (A) by striking ``under paragraph (2)(A)'' and all 
                that follows through ``section 133(b)(2)(B)'' and 
                inserting ``under section 133(b)''; and
                  (B) in paragraphs (1) and (2), by striking ``or 
                dislocated workers, respectively'' .
          (3) Technical amendment.--Section 134 is further amended by 
        redesignating subsections (d) and (e) as subsections (c) and 
        (d), respectively.
          (4) Required local employment and training activities.--
                  (A) Allocated funds.--Section 134(c)(1) (29 U.S.C. 
                2864(c)(1)) (as redesignated by paragraph (3)) is 
                amended to read as follows:
          ``(1) In general.--Funds allocated to a local area for adults 
        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 core services described in 
                paragraph (2) through the one-stop delivery system in 
                accordance with such paragraph;
                  ``(C) to provide the intensive services described in 
                paragraph (3) to adults described in such paragraph; 
                and
                  ``(D) to provide training services described in 
                paragraph (4) to adults described in such paragraph.''.
                  (B) Core services.--Section 134(c)(2) (29 U.S.C. 
                2864(c)(2)) (as redesignated by paragraph (3)) is 
                amended--
                          (i) by striking ``who are adults or 
                        dislocated workers'';
                          (ii) in subparagraph (A), by striking ``under 
                        this subtitle'' and inserting ``under the one-
                        stop partner programs described in section 
                        121(b)'';
                          (iii) by amending subparagraph (D) to read as 
                        follows:
                  ``(D) labor exchange services, including--
                          ``(i) job search and placement assistance, 
                        and where appropriate career counseling;
                          ``(ii) appropriate recruitment services for 
                        employers; and
                          ``(iii) reemployment services provided to 
                        unemployment claimants.'';
                          (iv) in subparagraph (I), by inserting ``and 
                        the administration of the work test for the 
                        unemployment compensation system'' after 
                        ``compensation''; and
                          (v) by amending subparagraph (J) to read as 
                        follows:
                  ``(J) 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''.
                  (C) Intensive services.--Section 134(c)(3) (29 U.S.C. 
                2864(c)(3) (as redesignated by paragraph (3) of this 
                subsection) is amended--
                          (i) by amending subparagraph (A) to read as 
                        follows:
                  ``(A) In general.--
                          ``(i) Eligibility.--Funds allocated to a 
                        local area under section 133(b) shall be used 
                        to provide intensive services for adults who--
                                  ``(I) are unemployed and who have 
                                been determined by the one-stop 
                                operator to be--
                                          ``(aa) unlikely or unable to 
                                        obtain suitable employment 
                                        through core services; and
                                          ``(bb) in need of intensive 
                                        services in order to obtain 
                                        suitable employment; or
                                  ``(II) are employed, but who are 
                                determined by a one-stop operator to be 
                                in need of intensive services to obtain 
                                or retain suitable employment.
                          ``(ii) Definition.--The Governor shall define 
                        the term `suitable employment' for purposes of 
                        this subparagraph.''; and
                          (ii) in subparagraph (C)--
                                  (I) in clause (v), by striking ``for 
                                participants seeking training services 
                                under paragraph (4)''; and
                                  (II) by adding the following clauses 
                                after clause (vi):
                          ``(vii) Internships and work experience.
                          ``(viii) Literacy activities relating to 
                        basic work readiness, information and 
                        communication technology literacy activities, 
                        and financial literacy activities.
                          ``(ix) Out-of-area job search assistance and 
                        relocation assistance.''.
                  (D) Training services.--Section 134(c)(4) (as 
                redesignated by paragraph (3) of this subsection) is 
                amended--
                          (i) by amending subparagraph (A) to read as 
                        follows:
                  ``(A) In general.--
                          ``(i) Eligibility.--Funds allocated to a 
                        local area under section 133(b) shall be used 
                        to provide training services to adults 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--
                                          ``(aa) be unlikely or unable 
                                        to obtain or retain suitable 
                                        employment through intensive 
                                        services under paragraph 
                                        (3)(A);
                                          ``(bb) be in need of training 
                                        services to obtain or retain 
                                        suitable employment; and
                                          ``(cc) 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 adults receiving such 
                                services are willing to commute or 
                                relocate;
                                  ``(III) who meet the requirements of 
                                subparagraph (B); and
                                  ``(IV) who are determined eligible in 
                                accordance with the priority system in 
                                effect under subparagraph (E).
                          ``(ii) Definition.--The Governor shall define 
                        the term `suitable employment' for purposes of 
                        this subparagraph.'';
                          (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) in subparagraph (D)--
                                  (I) by amending clause (iv) to read 
                                as follows:
                          ``(iv) entrepreneurial training, including 
                        providing information about obtaining 
                        microcredit loans for the purpose of starting a 
                        business, including contact information of 
                        microcredit lenders operating within the local 
                        area;'';
                                  (II) in clause (viii) by inserting 
                                ``(including English as a Second 
                                Language)'' after ``activities''; and
                                  (III) by redesignating clause (ix) as 
                                clause (x) and inserting after clause 
                                (viii) the following:
                          ``(ix) training that integrates occupational 
                        skills training and English language 
                        acquisition;'';
                          (iv) by amending subparagraph (E) to read as 
                        follows:
                  ``(E) Priority.--
                          ``(i) In general.--A priority shall be given 
                        to unemployed individuals for the provision of 
                        intensive and training services under this 
                        subsection.
                          ``(ii) Additional priority.--If the funds in 
                        the local area, including the funds allocated 
                        under section 133(b), for serving recipients of 
                        public assistance and other low-income 
                        individuals, including single parents, 
                        displaced homemakers, and pregnant single 
                        women, is limited, the priority for the 
                        provision of intensive and training services 
                        under this subsection shall include such 
                        recipients and individuals.
                          ``(iii) Determinations.--The Governor and the 
                        appropriate local board shall direct the one-
                        stop operators in the local area with regard to 
                        making determinations with respect to the 
                        priority of service under this subparagraph.'';
                          (v) in subparagraph (F), by adding the 
                        following clause after clause (iii):
                          ``(iv) Enhanced individual training 
                        accounts.--Each local board may, through one-
                        stop centers, assist individuals receiving 
                        individual training accounts through the 
                        establishment of such accounts that include, in 
                        addition to the funds provided under this 
                        paragraph, funds from other programs and 
                        sources that will assist the individual in 
                        obtaining training services.'';
                          (vi) in subparagraph (G)(iv), by 
                        redesignating subclause (IV) as subclause (V) 
                        and inserting after subclause (III) the 
                        following:
                                  ``(IV) Individuals with 
                                disabilities.''; and
                          (vii) by adding at the end the following:
                  ``(H) Computer technology.--In providing training 
                services under subparagraph (G), funds allocated to a 
                local area under this title may be used to purchase 
                computer technology for use by an individual who is 
                eligible pursuant to subsection (A), only if--
                          ``(i) such purchase is part of an ongoing 
                        training program; and
                          ``(ii) such purchase is necessary to ensure 
                        the individual can participate in such training 
                        program.
                Any purchase of computer technology under this 
                subparagraph shall remain the property of the one-stop 
                operator.''.
          (5) Permissible activities.--Section 134(d) (as redesignated 
        by paragraph (3)) is amended--
                  (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) 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 support 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;
                          ``(v) activities to improve services to local 
                        employers, including small employers in the 
                        local area, and increase linkages between the 
                        local workforce investment system and 
                        employers; and
                          ``(vi) activities to facilitate remote access 
                        to services provided through a one-stop 
                        delivery system, including facilitating access 
                        through the use of technology.
                  ``(B) Work support activities for low-wage workers.--
                          ``(i) In general.--Funds allocated to a local 
                        area under 133(b) may be used to provide, 
                        through the one-stop delivery system and in 
                        collaboration with the appropriate programs and 
                        resources of the one-stop partners, work 
                        support activities designed to assist low-wage 
                        workers in retaining and enhancing employment.
                          ``(ii) Activities.--The activities described 
                        in clause (i) may include assistance in 
                        accessing financial supports for which such 
                        workers may be eligible and the provision of 
                        activities available through the one-stop 
                        delivery system in a manner that enhances the 
                        opportunities of such workers to participate, 
                        such as the provision of employment and 
                        training activities during nontraditional hours 
                        and the provision of on-site child care while 
                        such activities are being provided.''; and
                  (B) by adding after paragraph (3) the following new 
                paragraph:
          ``(4) Incumbent worker training programs.--
                  ``(A) In general.--The local board may use up to 10 
                percent of the funds allocated to a local area under 
                section 133(b) 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. The 
                        Governor shall establish, or may authorize the 
                        local board to establish, the required portion 
                        of such costs, which shall not be less than--
                                  ``(I) 10 percent of the costs, for 
                                employers with 50 or fewer employees;
                                  ``(II) 25 percent of the costs, for 
                                employers with more than 50 employees 
                                but fewer than 100 employees; and
                                  ``(III) 50 percent of the costs, for 
                                employers with 100 or more employees.
                          ``(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 requirement payment of the employer.''.

SEC. 113. PERFORMANCE ACCOUNTABILITY SYSTEM.

  (a) State Performance Measures.--
          (1) In general.--Section 136(b)(1) (29 U.S.C. 2871(b)(1)) is 
        amended--
                  (A) in subparagraph (A)(i), by striking ``and the 
                customer satisfaction indicator of performance 
                described in paragraph (2)(B)''; and
                  (B) in subparagraph (A)(ii), by striking ``paragraph 
                (2)(C)'' and inserting ``paragraph (2)(B)''.
          (2) Indicators of performance.--Section 136(b)(2) (29 U.S.C. 
        2871(b)(2)) is amended--
                  (A) in subparagraph (A)(i), by striking ``(except for 
                self-service and information activities) and (for 
                participants who are eligible youth age 19 through 21) 
                for youth activities authorized under section 129'';
                  (B) in subparagraph (A)(i)(II), by inserting ``and'' 
                after the semicolon;
                  (C) in subparagraph (A)(i)(III), by striking ``; 
                and'' and inserting a period;
                  (D) by striking subparagraph (A)(i)(IV);
                  (E) by amending subparagraph (A)(ii) to read as 
                follows:
                          ``(ii) Core indicators for eligible youth.--
                        The core indicators of performance for youth 
                        activities authorized under section 129 shall 
                        consist of--
                                  ``(I) entry into employment, 
                                education or advanced training, or 
                                military service;
                                  ``(II) attainment of secondary school 
                                diploma, General Educational 
                                Development credential (GED), or other 
                                State-recognized equivalent (including 
                                recognized alternative standards for 
                                individuals with disabilities); and
                                  ``(III) literacy or numeracy 
                                gains.'';
                  (F) by striking subparagraph (B); and
                  (G) by redesignating subparagraph (C) as subparagraph 
                (B), and by adding at the end of such subparagraph (as 
                so redesignated) the following new sentence: ``Such 
                indicators may include customer satisfaction of 
                employers and participants with services received from 
                the workforce investment activities authorized under 
                this subtitle.''.
          (3) Levels of performance.--Section 136(b)(3)(A) (29 U.S.C. 
        2871(b)(3)(A)) is amended--
                  (A) in clause (i), by striking ``and the customer 
                satisfaction indicator d