[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1261 Engrossed in House (EH)]
1st Session
H. R. 1261
_______________________________________________________________________
AN ACT
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.
108th CONGRESS
1st Session
H. R. 1261
_______________________________________________________________________
AN ACT
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Workforce Reinvestment and Adult
Education Act of 2003''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.
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 program for adults.
Sec. 113. Performance accountability system.
Sec. 114. Authorization of appropriations.
Sec. 115. Job Corps.
Sec. 116. Native American programs.
Sec. 117. Youth challenge grants.
Sec. 118. Technical assistance.
Sec. 119. Demonstration, pilot, multiservice, research and multistate
projects.
Sec. 120. Evaluations.
Sec. 121. Authorization of appropriations for national activities.
Sec. 122. Requirements and restrictions.
Sec. 123. Nondiscrimination.
Sec. 124. Administrative provisions.
Sec. 125. General program requirements.
TITLE II--ADULT EDUCATION
Part A--Adult Basic Skills and Family Literacy Education
Sec. 201. Table of contents.
Sec. 202. Amendment.
Part B--National Institute for Literacy
Sec. 211. Short title; purpose.
Sec. 212. Establishment.
Sec. 213. Administration.
Sec. 214. Duties.
Sec. 215. Leadership in scientifically based reading instruction.
Sec. 216. National Institute for Literacy Advisory Board.
Sec. 217. Gifts, bequests, and devises.
Sec. 218. Mails.
Sec. 219. Applicability of certain civil service laws.
Sec. 220. Experts and consultants.
Sec. 221. Report.
Sec. 222. Definitions.
Sec. 223. Authorization of appropriations.
Sec. 224. Reservation.
Sec. 225. Authority to publish.
Part C--General Provisions
Sec. 241. Transition.
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. Chairperson.
Sec. 402. Rehabilitation Services Administration.
Sec. 403. Director.
Sec. 404. State goals.
Sec. 405. Authorizations of appropriations.
Sec. 406. 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) in paragraph (8)(C), 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'';
(2) by striking paragraph (13) and redesignating paragraphs
(1) through (12) as paragraphs (2) through (13) respectively;
(3) by inserting the following new paragraph after ``In
this title:'':
``(1) Accrued expenditures.--The term `accrued
expenditures' includes the sum of actual cash disbursements for
direct charges for goods and services, the net increase or
decrease in the amounts owed by recipients, goods and other
property received for services performed by employees,
contractors, subgrantees, or other payees, and other amounts
becoming owned for which no current service or performance is
required.'';
(4) by striking paragraph (24) and redesignating paragraphs
(25) through (32) as paragraphs (24) through (31),
respectively;
(5) in paragraph (24) (as so redesignated)--
(A) in subparagraph (B), by striking ``higher of--
'' and all that follows through such subparagraph and
inserting ``poverty line for an equivalent period;'';
and
(B) by redesignating subparagraphs (D) through (F)
as subparagraph (E) through (G), respectively, and
inserting after subparagraph (C) the following:
``(D) receives or is eligible to receive free or
reduced price lunch;''; and
(6) by striking paragraph (33) and redesignating paragraphs
(34) through (53) as paragraphs (32) through (51),
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) 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;'';
(2) 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'';
(3) 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
(4) 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)(17)(A) (29 U.S.C. 2822(b)(17)(A)) is
amended--
(1) in clause (iii) by striking ``and'';
(2) 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), homeless individuals, ex-
offenders, individuals training for
nontraditional employment, and other
individuals with multiple barriers to
employment (including older individuals);'';
and
(3) by adding the following new clause after clause (iv):
``(v) how the State will serve the
employment and training needs of individuals
with disabilities, consistent with section 188
and Executive Order 13217 (relating to
community-based alternatives for individuals
with disabilities) including the provision of
outreach, intake, assessments, and service
delivery, the development of performance
measures, and the training of staff; and''.
(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) superintendents of the local
secondary school systems, administrators of
entities providing adult education and literacy
activities, and the presidents or chief
executive officers of postsecondary educational
institutions (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 ``local area'' and all
that follows and inserting ``local area.''; 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 meets the employment
needs of local employers and participants.''; and
(2) in paragraph (4), by striking ``and dislocated
worker''.
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'';
(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 clauses (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) programs under part D of title IV of
the Social Security Act (42 U.S.C. 451 et seq.)
(relating to child support enforcement); and
``(vii) 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) by striking subsection (e) of section 121;
(2) 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
(3) by amending subsection (e) (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)--
(i) by striking ``section 121(b)'' and
inserting ``subsection (b)''; and
(ii) by striking ``and'' at the end; 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
center 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.
``(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 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 funding allocation 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, 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), 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.--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.
``(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.''.
SEC. 110. 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).''.
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.--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).
``(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 2003 under section
127(b)(1)(C) of this Act (as in effect
on the day before the date of enactment
of the Workforce Reinvestment and Adult
Education Act of 2003) 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 and \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 and \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 and \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 2004 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 2003, 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
Workforce Reinvestment and Adult Education Act of 2003)
that is received by the State involved for fiscal year
2003.
``(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, excluding accrued expenditures, at the end of such
program year of the total amount of funds available to the
State under this section during such program year (including
amounts allotted to the State in prior program years that
remain available during the program year for which the
determination is made) exceeds 30 percent of such total
amount.'';
(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.''.
(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 allocation.--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 and \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 and \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 and \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
2004 or a subsequent fiscal year, means a
percentage of 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 2003, 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 Workforce Investment Act
Amendments of 2003) that is received by the
local area involved for fiscal year 2003.
``(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, excluding accrued expenditures, at the end of such
program year of the total amount of funds available to the
local area under this section during such program year
(including amounts allotted to the local area in prior program
years that remain available during the program year for which
the determination is made) exceeds 30 percent of such total
amount.'';
(C) by amending paragraph (3)--
(i) by striking ``subsection (b)(3)'' each
place 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 or the General Equivalency Diploma
(GED) (including recognized alternative
standards for individuals with disabilities)
who are deficient in basic skills;
``(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.--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 summer recess.''.
(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 or the General
Equivalency Diploma (GED) (including recognized
alternative standards for individuals with
disabilities);'';
(iii) in clause (ii) (as redesignated by
this subparagraph), by inserting ``and advanced
training'' after ``opportunities'';
(iv) in clause (iii) (as redesignated by
this subparagraph), 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 or the General
Equivalency Diploma (GED) (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 PROGRAM FOR ADULTS.
(a) Title of Chapter 5.--
(1) The title heading of chapter 5 is amended to read as
follows:
``CHAPTER 5--COMPREHENSIVE EMPLOYMENT AND TRAINING ACTIVITIES FOR
ADULTS''.
(2) Conforming amendment.--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;
``(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.--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.
``(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 2004.--
``(i) In general.--Subject to clause (ii),
the amount referred to in paragraph (2)(A)
shall be allotted for fiscal year 2004 on the
basis of allotment percentage of each State
under section 6 of the Wagner-Peyser Act for
fiscal year 2003.
``(ii) Excess amounts.--If the amount
referred to in paragraph (2)(A) for fiscal year
2004 exceeds the amount that was available for
allotment to the States under the Wagner-Peyser
Act for fiscal year 2003, 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 2003.
``(B) Fiscal years 2005 and thereafter.--
``(i) In general.--Subject to clause(ii),
the amount referred to in paragraph(2)(A) shall
be allotted for fiscal year 2005 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
2005 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 2004 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 2003, 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 Workforce Reinvestment and Adult
Education Act of 2003) and under reemployment
service grants received by the State involved
for fiscal year 2003.
``(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 and \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
2003.
``(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
Workforce Reinvestment and Adult
Education Act of 2003) that were
applicable to the allotment of funds
under such section for fiscal year
2003.
``(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
Workforce Reinvestment and Adult
Education Act of 2003) that were
applicable to the allotment of funds
under such section for fiscal year
2003.
``(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
Workforce Reinvestment and Adult
Education Act of 2003) that were
applicable to the allotment of funds
under such Act for fiscal year 2003.
``(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 2003.
``(iii) Proportionate application of
unconsolidated formulas based on fiscal year
2003.--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 2003.
``(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, excluding accrued expenditures, at the end of such
program year of the total amount of funds available to the
State under this section during such program year (including
amounts allotted to the State in prior program years that
remain available during the program year for which the
determination is made) exceeds 30 percent of such total
amount.'';
(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''; and
(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.''.
(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 2004 or a subsequent fiscal year,
means a percentage of 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 2003, 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 Workforce Reinvestment and
Adult Education Act of 2003) that is received
by the local area involved for fiscal year
2003.
``(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, excluding accrued expenditures, at the end of such
program year of the total amount of funds available to the
local area under this section during such program year
(including amounts allotted to the local area in prior program
years that remain available during the program year for which
the determination is made) exceeds 30 percent of such total
amount.'';
(C) by amending paragraph (3)--
(i) by striking ``subsection (b)(3)'' each
place 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 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.); and
``(J) implementing programs to increase the number
of individuals training for and placed in
nontraditional employment.''.
(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)'';
(B) in paragraphs (1) and (2), by striking ``or
dislocated workers, respectively'' both places it
appears; and
(C) by redesignating subsections (d) and (e) as
subsections (c) and (d), respectively.
(3) Required local employment and training activities.--
(A) Allocated funds.--Section 134(c)(1) (29 U.S.C.
2864(c)(1)) (as redesignated by paragraph (2)) 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 (2)) 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 (2) 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, 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 (2) 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) 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) 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.'';
(iv) 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.''; and
(v) in subparagraph (G)(iv), by
redesignating subclause (IV) as subclause (V)
and inserting after subclause (III) the
following:
``(IV) Individuals with
disabilities.''.
(4) Permissible activities.--Section 134(d) (as
redesignated by paragraph (2)) 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; and
``(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.
``(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) by amending subparagraph (A)(i)(IV) to read as
follows:
``(IV) the efficiency of the
program in obtaining the outcomes
described in subclauses (I) through
(III).'';
(C) 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 diplomas or the General
Equivalency Diploma (GED) (including
recognized alternative standards for
individuals with disabilities);
``(III) attainment of literacy or
numeracy skills; and
``(IV) the efficiency of the
program in obtaining the outcomes
described in subclauses (I) through
(III).'';
(D) by striking subparagraph (B);
(E) 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 described in paragraph (2)(B)'';
(B) in clause (ii), by striking ``and the customer
satisfaction indicator of performance, for the first
3'' and inserting ``for the 2'';
(C) in clause (iii)--
(i) in the heading, by striking ``for first
3 years''; and
(ii) by striking ``and the customer
satisfaction indicator of performance, for the
first 3'' and inserting ``for the 2'';
(D) in clause (iv)--
(i) by striking subclause (I);
(ii) by redesignating subclauses (II) and
(III) as subclauses (I) and (II), respectively;
and
(iii) in subclause (I) (as so
redesignated)--
(I) by striking ``taking into
account'' and inserting ``which shall
be adjusted based on'';
(II) by inserting ``such as
unemployment rates and job losses or
gains in particular industries'' after
``economic conditions''; and
(III) by inserting ``such as
indicators of poor work history, lack
of work experience, low levels of
literacy or English proficiency,
disability status, and welfare
dependency'' after ``program'';
(E) by striking clause (v); and
(F) by redesignating clause (vi) as clause (v).
(4) Additional indicators.--Section 136(b)(3)(B) is amended
by striking ``paragraph (2)(C)'' and inserting ``paragraph
(2)(B)''.
(b) Local Performance Measures.--Section 136(c) (29 U.S.C 2871(c))
is amended--
(1) in paragraph (1)(A)(i), by striking ``, and the
customer satisfaction indicator of performance described in
subsection (b)(2)(B),'';
(2) in paragraph (1)(A)(ii), by striking ``subsection
(b)(2)(C)'' and inserting ``subsection (b)(2)(B)''; and
(3) by amending paragraph (3) to read as follows:
``(3) Determinations.--In determining such local levels of
performance, the local board, the chief elected official, and
the Governor shall ensure such levels are adjusted based on the
specific economic characteristics (such as unemployment rates
and job losses or gains in particular industries), demographic
characteristics, or other characteristics of the population to
be served in the local area, such as poor work history, lack of
work experience, low levels of literacy or English proficiency,
disability status, and welfare dependency.''.
(c) Report.--Section 136(d) (29 U.S.C. 2871(d)) is amended--
(1) in paragraph (1), by striking ``and the customer
satisfaction indicator'' in both places that it appears;
(2) in paragraph (2)(E), by striking ``(excluding
participants who received only self-service and informational
activities)''; and
(3) by adding at the end the following:
``(4) Data validation.--In preparing the reports described
in this subsection, the States shall establish procedures,
consistent with guidelines issued by the Secretary, to ensure
the information contained in the report is valid and
reliable.''.
(d) Sanctions for State.--Section 136(g) (29 U.S.C. 2871(g)) is
amended--
(1) in paragraph (1)(A), by striking ``or (B)''; and
(2) in paragraph (2), by striking ``section 503'' and
inserting ``section 136(i)''.
(e) Sanctions for Local Areas.--Section 136(h) (29 U.S.C. 2871(h))
is amended--
(1) in paragraph (1), by striking ``or (B)''; and
(2) by amending paragraph (2)(B) to read as follows:
``(B) Appeal to governor.--A local area that is
subject to a reorganization plan under subparagraph (A)
may, not later than 30 days after receiving notice of
the reorganization plan, appeal to the Governor to
rescind or revise such plan. In such case, the Governor
shall make a final decision not later than 30 days
after the receipt of the appeal.''.
(f) Incentive Grants.--Section 136(i) (29 U.S.C. 2871(i)) is
amended to read as follows:
``(i) Incentive Grants for States and Local Areas.--
``(1) Incentive grants for states.--
``(A) In general.--From funds appropriated under
section 174, the Secretary may award grants to States
for exemplary performance in carrying programs under
this chapters 4 and 5 of this title. Such awards may be
based on States meeting or exceeding the performance
measures established under this section, on the
performance of the State in serving special
populations, including the levels of service provided
and the performance outcomes, and such other factors
relating to the performance of the State under this
title as the Secretary determines is appropriate.
``(B) Use of funds.--The funds awarded to a State
under this paragraph may be used to carry out any
activities authorized under chapters 4 and 5 of this
title, including demonstrations and innovative programs
for special populations.
``(2) Incentive grants for local areas.--
``(A) In general.--From funds reserved under
sections 128(a) and 133(a), the Governor may award
incentive grants to local areas for exemplary
performance with respect to the measures established
under this section and with the performance of the
local area in serving special populations, including
the levels of service and the performance outcomes.
``(B) Use of funds.--The funds awarded to a local
area may be used to carry out activities authorized for
local areas under chapters 4 and 5 of this title, and
such demonstration or other innovative programs to
serve special populations as may be approved by the
Governor.''.
(g) Repeal of Definitions.--Sections 502 and 503 (and the items
related to such sections in the table of contents) are repealed.
SEC. 114. AUTHORIZATION OF APPROPRIATIONS.
(a) Youth Activities.-- Section 137(a) (29 U.S.C. 2872(a)) is
amended by striking ``such sums as may be necessary for each of fiscal
years 1999 through 2003'' and inserting ``$1,250,000,000 for fiscal
year 2004 and such sums as may be necessary for each of fiscal years
2005 through 2009''.
(b) Adult Employment and Training Activities.--Section 137(b) (29
U.S.C. 2872(b)) is amended by striking ``section 132(a)(1), such sums
as may be necessary for each of fiscal years 1999 through 2003'' and
inserting ``132(a), $3,079,800,000 for fiscal year 2004 and such sums
as may be necessary for each of fiscal years 2005 through 2009''.
(c) Dislocated Worker Employment and Training Activities.--Section
137 is further amended by striking subsection (c).
SEC. 115. JOB CORPS.
(a) Community Participation.--Section 153 (29 U.S.C. 2893) is
amended--
(1) by amending subsection (a) to read as follows:
``(a) Business and Community Participation.--The director of each
Job Corps center shall ensure the establishment and development of the
business and community relationships and networks described in
subsection (b) in order to enhance the effectiveness of such center.'';
(2) in subsection (b)--
(A) in the heading, by striking
``Responsibilities'' and inserting ``Networks''; and
(B) by striking ``The responsibilities of the
Liaison'' and inserting ``The activities carried out by
each Job Corps center under this section''; and
(3) in subsection (c), by striking ``The Liaison for'' and
inserting ``The director of''.
(b) Industry Councils.--Section 154(b) (29 U.S.C. 2894(b)) is
amended--
(1) in paragraph (1)(A), by striking ``local and distant'';
and
(2) by adding after paragraph (2) the following:
``(3) Employers outside of local areas.--The industry
council may include, or otherwise provide for consultation
with, employers from outside the local area who are likely to
hire a significant number of enrollees from the Job Corps
center.''.
(c) Indicators of Performance and Additional Information.--Section
159(c) (29 U.S.C. 2893(c)) is amended--
(1) by amending paragraph (1) to read as follows:
``(1) Core indicators.--The Secretary shall annually
establish expected levels of performance for Job Corps centers
and the Job Corps program relating to each of the core
indicators for youth identified in section 136(b)(2)(A)(ii).'';
and
(2) in paragraph (2), by striking ``measures'' each place
it appears and inserting ``indicators''.
SEC. 116. NATIVE AMERICAN PROGRAMS.
(a) Advisory Council.--Section 166(h)(4)(C) (29 U.S.C.
2911(h)(4)(C)) is amended to read as follows:
``(C) Duties.--The Council shall advise the
Secretary on the operation and administration of the
programs assisted under this section.''.
(b) Assistance to American Samoans in Hawaii.--Section 166 (29
U.S.C. 2911) is further amended by striking subsection (j).
(c) Migrant and Seasonal Farmworker Programs.--Section 167(d) is
amended by inserting ``(including permanent housing)'' after
``housing''.
SEC. 117. YOUTH CHALLENGE GRANTS.
Section 169 (29 U.S.C. 2914) is amended to read as follows:
``SEC. 169. YOUTH CHALLENGE GRANTS.
``(a) In General.--Of the amounts reserved by the Secretary under
section 127(a)(1)(A) for a fiscal year--
``(1) the Secretary shall use not less than 80 percent to
award competitive grants under subsection (b); and
``(2) the Secretary may use not more than 20 percent to
award discretionary grants under subsection (c).
``(b) Competitive Grants to States and Local Areas.--
``(1) Establishment.--From the funds described in
subsection (a)(1), the Secretary shall award competitive grants
to eligible entities to carry out activities authorized under
this section to assist eligible youth in acquiring the skills,
credentials and employment experience necessary to succeed in
the labor market.
``(2) Eligible entities.--Grants under this subsection may
be awarded to States, local boards, recipients of grants under
section 166 (relating to Native American programs), and public
or private entities (including consortia of such entities)
applying in conjunction with local boards.
``(3) Grant period.--The Secretary may make a grant under
this section for a period of 1 year and may renew the grants
for each of the 4 succeeding years.
``(4) Authority to require match.--The Secretary may
require that grantees under this subsection provide a non-
Federal share of the cost of activities carried out under a
grant awarded under this subsection.
``(5) Participant eligibility.--Youth ages 14 through 19 as
of the time the eligibility determination is made may be
eligible to participate in activities provided under this
subsection.
``(6) Use of funds.--Funds under this subsection may be
used for activities that are designed to assist youth in
acquiring the skills, credentials and employment experience
that are necessary to succeed in the labor market, including
the activities identified in section 129. The activities may
include activities such as--
``(A) training and internships for out-of-school
youth in sectors of economy experiencing or projected
to experience high growth;
``(B) after-school dropout prevention activities
for in-school youth;
``(C) activities designed to assist special youth
populations, such as court-involved youth and youth
with disabilities; and
``(D) activities combining remediation of academic
skills, work readiness training, and work experience,
and including linkages to postsecondary education,
apprenticeships, and career-ladder employment.
``(7) Applications.--To be eligible to receive a grant
under this subsection, an eligible entity shall submit an
application to the Secretary at such time, in such manner, and
containing such information as the Secretary may require,
including--
``(A) a description of the activities the eligible
entity will provide to eligible youth under this
subsection;
``(B) a description of the programs of demonstrated
effectiveness on which the provision of the activities
under subparagraph (A) are based, and a description of
how such activities will expand the base of knowledge
relating to the provision of activities for youth;
``(C) a description of the private and public, and
local and State resources that will be leveraged to
provide the activities described under subparagraph (A)
in addition the funds provided under this subsection;
and
``(D) the levels of performance the eligible entity
expects to achieve with respect to the indicators of
performance for youth specified in section
136(b)(2)(A)(ii).
``(8) Factors for award.--In awarding grants under this
subsection the Secretary may consider the quality of the
proposed project, the goals to be achieved, the likelihood of
successful implementation, the extent to which the project is
based on proven strategies or the extent to which the project
will expand the knowledge base on activities for youth, and the
additional State, local or private resources that will be
provided.
``(9) Evaluation.--The Secretary may reserve up to 5
percent of the funds described in subsection(a)(1) to provide
technical assistance to, and conduct evaluations of the
projects funded under this subsection (using appropriate
techniques as described in section 172(c)).
``(c) Discretionary Grants for Youth Activities.--
``(1) In general.--From the funds described in
subsection(a)(2), the Secretary may award grants to eligible
entities to provide activities that will assist youth in
preparing for, and entering and retaining, employment.
``(2) Eligible entities.--Grants under this subsection may
be awarded to public or private entities that the Secretary
determines would effectively carry out activities relating to
youth under this subsection.
``(3) Participant eligibility.--Youth ages 14 through 19 at
the time the eligibility determination is made may be eligible
to participate in activities under this subsection.
``(4) Use of funds.--Funds provided under this subsection
may be used for activities that will assist youth in preparing
for, and entering and retaining, employment, including the
activities described in section 129 for out-of-school youth,
activities designed to assist in-school youth to stay in school
and gain work experience, and such other activities that the
Secretary determines are appropriate.
``(5) Applications.--To be eligible to receive a grant
under this subsection, an eligible entity shall submit an
application to the Secretary at such time, in such manner, and
containing such information as the Secretary may require.
``(6) Additional requirements.--The Secretary may require
the provision of a non-Federal share for projects funded under
this subsection and may require participation of grantees in
evaluations of such projects, including evaluations using the
techniques as described in section 172(c).''.
SEC. 118. TECHNICAL ASSISTANCE.
Section 170 (29 U.S.C. 2915) is amended--
(1) by striking subsection (b);
(2) by striking ``(a) General Technical Assistance.--'';
(3) by redesignating paragraphs (1), (2), and (3) as
subsections (a), (b), and (c) respectively, and moving such
subsections 2 ems to the left;
(4) in subsection (a) (as redesignated by paragraph (3))--
(A) by inserting ``the training of staff providing
rapid response services, the training of other staff of
recipients of funds under this title, peer review
activities under this title, assistance regarding
accounting and program operation practices (when such
assistance would not be duplicative to assistance
provided by the State),'' after ``localities,''; and
(B) by striking ``from carrying out activities''
and all that follows up to the period and inserting
``to implement the amendments made by the Workforce
Reinvestment and Adult Education Act of 2003''; and
(5) by inserting, after subsection (c) (as redesignated by
paragraph (3)), the following:
``(d) Best Practices Coordination.--The Secretary shall establish a
system whereby States may share information regarding best practices
with regards to the operation of workforce investment activities under
this Act.''.
SEC. 119. DEMONSTRATION, PILOT, MULTISERVICE, RESEARCH AND MULTISTATE
PROJECTS.
(a) Demonstration and Pilot Projects.--Section 171(b) (29 U.S.C.
2916(b)) is amended--
(1) in paragraph (1)--
(A) by striking ``Under a'' and inserting
``Consistent with the priorities specified in the'';
(B) by amending subparagraphs (A) through (D) to
read as follows:
``(A) projects that assist national employers in
connecting with the workforce investment system
established under this title in order to facilitate the
recruitment and employment of needed workers and to
provide information to such system on skills and
occupations in demand;
``(B) projects that promote the development of
systems that will improve the effectiveness and
efficiency of programs carried out under this title;
``(C) projects that focus on opportunities for
employment in industries and sectors of industries that
are experiencing or are likely to experience high rates
of growth;
``(D) projects carried out by States and local
areas to test innovative approaches to delivering
employment-related services;'';
(C) by striking subparagraph (E);
(D) by redesignating subparagraphs (F) and (G) as
subparagraphs (E) and (F), respectively;
(E) by inserting after subparagraph (F) (as so
redesignated) the following:
``(G) projects that provide retention grants to
qualified job training programs upon placement or
retention of a low-income individual trained by that
program in employment with a single employer for a
period of 1 year, provided that such employment is
providing to the low-income individual an income not
less than twice the poverty line for that
individual.''; and
(F) by striking subparagraph (H); and
(2) in paragraph (2)--
(A) by striking subparagraph (B); and
(B) by redesignating subparagraph (C) as
subparagraph (B).
(b) Multiservice Projects.--Section 171(c)(2)(B) (29 U.S.C.
2916(c)(2)(B)) is amended to read as follows:
``(B) Net impact studies and reports.--The
Secretary shall conduct studies to determine the net
impacts of programs, services, and activities carried
out under this title. The Secretary shall prepare and
disseminate to the public reports containing the
results of such studies.''.
(c) Waiver Authority to Carry Out Demonstrations and Evaluations.--
Section 171 (29 U.S.C. 2916(d)) is further amended by striking
subsection (d).
SEC. 120. EVALUATIONS.
(a) In General.--Section 173 (29 U.S.C. 2916) is amended--
(1) by amending the designation and heading to read as
follows:
``SEC. 173. NATIONAL DISLOCATED WORKER GRANTS.'';
and
(2) in subsection (a)--
(A) by striking ``national emergency grants'' in
the matter preceding paragraph (1) and inserting
``national dislocated worker grants''; and
(B) in paragraph (1), by striking ``subsection
(c)'' and inserting ``subsection (b)''.
(b) Administration.--Section 173 (29 U.S.C. 2918) is further
amended--
(1) by striking subsection (b) and redesignating
subsections (c) and (d) as subsections (b) and (c),
respectively; and
(2) by striking subsection (e) and redesignating
subsections (f) and (g) as subsection (d) and (e),
respectively.
(c) Eligible Entities.--Section 173(b)(1)(B) (29 U.S.C.
2918(b)(1)(B)) (as redesignated by subsection (b) of this section) is
amended by striking ``, and other entities'' and all that follows and
inserting a period.
(d) Conforming Amendment.--The table of contents in section 1(b) is
amended by amending the item related to section 173 to read as follows:
``Sec. 173. National dislocated worker grants.''.
SEC. 121. AUTHORIZATION OF APPROPRIATIONS FOR NATIONAL ACTIVITIES.
(a) In General.--Section 174(a)(1) (29 U.S.C. 2919(a)(1)) is
amended by striking ``1999 through 2003'' and inserting ``2004 through
2009''.
(b) Reservations.--Section 174(b) is amended to read as follows:
``(b) Technical Assistance; Demonstration and Pilot Projects;
Evaluations; Incentive Grants.--There are authorized to be appropriated
to carry out sections 170 through 172 and section 136 such sums as may
be necessary for each of fiscal years 2004 through 2009.''.
SEC. 122. REQUIREMENTS AND RESTRICTIONS.
(a) In General.--Section 181(c)(2)(A) (29 U.S.C. 2931(c)(2)(A)) is
amended in the matter preceding clause (i) by striking ``shall'' and
inserting ``may''.
(b) Limitations.--Section 181(e) is amended by striking the first
sentence.
SEC. 123. NONDISCRIMINATION.
Section 188(a)(2) (29 U.S.C. 2931(a)(2)) is amended--
(1) by striking ``employment.--No'' and inserting
``employment.--
``(A) In general.--Except as provided in
subparagraph (B), no''; and
(2) by adding at the end the following subparagraph:
``(B) Exemption for religious organizations.--
Subparagraph (A) shall not apply to a recipient of
financial assistance under this title that is a
religious corporation, association, educational
institution, or society, with respect to the employment
of individuals of a particular religion to perform work
connected with the carrying on by such corporation,
association, educational institution, or society of its
activities Such recipients shall comply with the other
requirements contained in subparagraph (A).''.
SEC. 124. ADMINISTRATIVE PROVISIONS.
(a) Program Year.--Section 189(g)(1) (29 U.S.C. 2939(g)(1)) is
amended to read as follows:
``(1) In general.--Appropriations for any fiscal year for
programs and activities carried out under this title shall be
available for obligation only on the basis of a program year.
The program year shall begin on July 1 in the fiscal year for
which the appropriation is made.''.
(b) Availability.--Section 189(g)(2) (29 U.S.C. 2939(g)(2)) is
amended by striking ``each State'' and inserting ``each recipient''.
(c) General Waivers.--Section 189(i)(4) (29 U.S.C. 2939(i)(4)) is
amended--
(1) in subparagraph (A), in the matter preceding clause
(i), by inserting ``, or in accordance with subparagraph (D),''
after ``subparagraph (B)''; and
(2) by adding the following subparagraph:
``(D) Expedited process for extending approved
waivers to additional states.--In lieu of the
requirements of subparagraphs (B) and (C), the
Secretary may establish an expedited procedure for the
purpose of extending to additional States the waiver of
statutory or regulatory requirements that have been
approved for a State pursuant to a request under
subparagraph (B). Such procedure shall ensure that the
extension of such waivers to additional States are
accompanied by appropriate conditions relating the
implementation of such waivers.''.
SEC. 125. GENERAL PROGRAM REQUIREMENTS.
Section 195 (29 U.S.C. 2945) is amended by adding at the end the
following new paragraph:
``(14) Funds provided under this title shall not be used to
establish or operate stand-alone fee-for-service enterprises
that compete with private sector employment agencies within the
meaning of section 701(c) of the Civil Rights Act of 1964 (42
U.S.C. 2000e(c)). For purposes of this paragraph, such an
enterprise does not include one-stop centers.''.
TITLE II--ADULT EDUCATION
PART A--ADULT BASIC SKILLS AND FAMILY LITERACY EDUCATION
SEC. 201. TABLE OF CONTENTS.
The table of contents in section 1(b) is amended by amending the
items relating to title II to read as follows:
``TITLE II--ADULT BASIC SKILLS AND FAMILY LITERACY EDUCATION
``Sec. 201. Short title.
``Sec. 202. Purpose.
``Sec. 203. Definitions.
``Sec. 204. Home schools.
``Sec. 205. Authorization of appropriations.
``Chapter 1--Federal Provisions
``Sec. 211. Reservation of funds; grants to eligible agencies;
allotments.
``Sec. 212. Performance accountability system.
``Sec. 213. Incentive grants for states.
``Chapter 2--State Provisions
``Sec. 221. State administration.
``Sec. 222. State distribution of funds; matching requirement.
``Sec. 223. State leadership activities.
``Sec. 224. State plan.
``Sec. 225. Programs for corrections education and other
institutionalized individuals.
``Chapter 3--Local Provisions
``Sec. 231. Grants and contracts for eligible providers.
``Sec. 232. Local application.
``Sec. 233. Local administrative cost limits.
``Chapter 4--General Provisions
``Sec. 241. Administrative provisions.
``Sec. 242. National leadership activities.''.
SEC. 202. AMENDMENT.
Title II is amended to read as follows:
``TITLE II--ADULT BASIC SKILLS AND FAMILY LITERACY EDUCATION
``SEC. 201. SHORT TITLE.
``This title may be cited as the `Adult Basic Skills and Family
Literacy Education Act'.
``SEC. 202. PURPOSE.
``It is the purpose of this title to provide instructional
opportunities for adults seeking to improve their basic reading,
writing, speaking, and math skills, and support States and local
communities in providing, on a voluntary basis, adult basic skills and
family literacy programs, in order to--
``(1) increase the basic reading, writing, speaking, and
math skills necessary for adults to obtain employment and self-
sufficiency and to successfully advance in the workforce;
``(2) assist adults in the completion of a secondary school
education (or its equivalent) and the transition to a
postsecondary educational institution;
``(3) increase the basic reading, writing, speaking, and
math skills of parents to enable them to support the
educational development of their children and make informed
choices regarding their children's education; and
``(4) assist immigrants who are not proficient in English
in improving their reading, writing, speaking, and math skills
and acquiring an understanding of the American free enterprise
system, individual freedom, and the responsibilities of
citizenship.
``SEC. 203. DEFINITIONS.
``In this title:
``(1) Adult basic skills and family literacy education
programs.--The term `adult basic skills and family literacy
education programs' means a sequence of academic instruction
and educational services below the postsecondary level that
increase an individual's ability to read, write, and speak in
English and perform mathematical computations leading to a
level of proficiency equivalent to secondary school completion
that is provided for individuals--
``(A) who are at least 16 years of age;
``(B) who are not enrolled or required to be
enrolled in secondary school under State law; and
``(C) who--
``(i) lack sufficient mastery of basic
reading, writing, speaking, and math skills to
enable the individuals to function effectively
in society;
``(ii) do not have a secondary school
diploma or the General Equivalency Diploma
(GED) (including recognized alternative
standards for individuals with disabilities),
and have not achieved an equivalent level of
education; or
``(iii) are unable to read, write, or speak
the English language.
``(2) Eligible agency.--The term `eligible agency'--
``(A) means the sole entity or agency in a State or
an outlying area responsible for administering or
supervising policy for adult basic skills and family
literacy education programs in the State or outlying
area, respectively, consistent with the law of the
State or outlying area, respectively; and
``(B) may be the State educational agency, the
State agency responsible for administering workforce
investment activities, or the State agency responsible
for administering community or technical colleges.
``(3) Eligible provider.--The term `eligible provider'
means--
``(A) a local educational agency;
``(B) a community-based or faith-based organization
of demonstrated effectiveness;
``(C) a volunteer literacy organization of
demonstrated effectiveness;
``(D) an institution of higher education;
``(E) a public or private educational agency;
``(F) a library;
``(G) a public housing authority;
``(H) an institution that is not described in any
of subparagraphs (A) through (G) and has the ability to
provide adult basic skills and family literacy
education programs to adults and families; or
``(I) a consortium of the agencies, organizations,
institutions, libraries, or authorities described in
any of subparagraphs (A) through (H).
``(4) English language acquisition program.--The term
`English language acquisition program' means a program of
instruction designed to help individuals with limited English
proficiency achieve competence in reading, writing, and
speaking the English language.
``(5) Essential components of reading instruction.--The
term `essential components of reading instruction' has the
meaning given to that term in section 1208 of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 6368).
``(6) Family literacy education programs.--The term `family
literacy education programs' means educational programs that--
``(A) assist parents and students, on a voluntary
basis, in achieving the purposes of this title as
described in section 202; and
``(B) are of sufficient intensity in terms of hours
and of sufficient duration to make sustainable changes
in a family, are based upon scientific research-based
principles, and for the purpose of substantially
increasing the ability of parents and children to read,
write, and speak English integrate--
``(i) interactive literacy activities
between parents and their children;
``(ii) training for parents regarding how
to be the primary teacher for their children
and full partners in the education of their
children;
``(iii) parent literacy training that leads
to economic self-sufficiency; and
``(iv) an age-appropriate education to
prepare children for success in school and life
experiences.
``(7) Governor.--The term `Governor' means the chief
executive officer of a State or outlying area.
``(8) Individual with a disability.--
``(A) In general.--The term `individual with a
disability' means an individual with any disability (as
defined in section 3 of the Americans with Disabilities
Act of 1990 (42 U.S.C. 12102)).
``(B) Individuals with disabilities.--The term
`individuals with disabilities' means more than one
individual with a disability.
``(9) Individual with limited english proficiency.--The
term `individual with limited English proficiency' means an
adult or out-of-school youth who has limited ability in
reading, writing, speaking, or understanding the English
language, and--
``(A) whose native language is a language other
than English; or
``(B) who lives in a family or community
environment where a language other than English is the
dominant language.
``(10) Institution of higher education.--The term
`institution of higher education' has the meaning given to that
term in section 101 of the Higher Education Act of 1965 (20
U.S.C. 1001).
``(11) Literacy.--The term `literacy' means the ability to
read, write, and speak the English language with competence,
knowledge, and comprehension.
``(12) Local educational agency.--The term `local
educational agency' has the meaning given to that term in
section 9101 of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 7801).
``(13) Outlying area.--The term `outlying area' has the
meaning given to that term in section 101 of this Act.
``(14) Postsecondary educational institution.--The term
`postsecondary educational institution' means--
``(A) an institution of higher education that
provides not less than a 2-year program of instruction
that is acceptable for credit toward a bachelor's
degree;
``(B) a tribally controlled community college; or
``(C) a nonprofit educational institution offering
certificate or apprenticeship programs at the
postsecondary level.
``(15) Reading.--The term `reading' has the meaning given
to that term in section 1208 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6368).
``(16) Scientifically based reading research.--The term
`scientifically based reading research' has the meaning given
to that term in section 1208 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6368).
``(17) Secretary.--The term `Secretary' means the Secretary
of Education.
``(18) State.--The term `State' means each of the several
States of the United States, the District of Columbia, and the
Commonwealth of Puerto Rico.
``(19) State educational agency.--The term `State
educational agency' has the meaning given to that term in
section 9101 of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 7801).
``(20) Workplace literacy program.--The term `workplace
literacy program' means an educational program that is offered
in collaboration between eligible providers and employers or
employee organizations for the purpose of improving the
productivity of the workforce through the improvement of
reading, writing, speaking, and math skills.
``SEC. 204. HOME SCHOOLS.
``Nothing in this title shall be construed to affect home schools,
whether or not a home school is treated as a home school or a private
school under State law, or to compel a parent engaged in home schooling
to participate in an English language acquisition program, a family
literacy education program, or an adult basic skills and family
literacy education program.
``SEC. 205. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this title
$584,300,000 for fiscal year 2004 and such sums as may be necessary for
fiscal years 2005 through 2009.
``CHAPTER 1--FEDERAL PROVISIONS
``SEC. 211. RESERVATION OF FUNDS; GRANTS TO ELIGIBLE AGENCIES;
ALLOTMENTS.
``(a) Reservation of Funds.--From the sums appropriated under
section 205 for a fiscal year, the Secretary--
``(1) shall reserve 1.75 percent to carry out the National
Institute for Literacy Establishment Act;
``(2) shall reserve up to 1.72 percent for incentive grants
under section 213; and
``(3) shall reserve up to 1.55 percent to carry out section
242.
``(b) Grants to Eligible Agencies.--
``(1) In general.--From the sums appropriated under section
205 and not reserved under subsection (a) for a fiscal year,
the Secretary shall award a grant to each eligible agency
having a State plan approved under section 224 in an amount
equal to the sum of the initial allotment under subsection
(c)(1) and the additional allotment under subsection (c)(2) for
the eligible agency for the fiscal year, subject to subsections
(f) and (g).
``(2) Purpose of grants.--The Secretary may award a grant
under paragraph (1) only if the eligible agency involved agrees
to expend the grant in accordance with the provisions of this
title.
``(c) Allotments.--
``(1) Initial allotments.--From the sums appropriated under
section 205 and not reserved under subsection (a) for a fiscal
year, the Secretary shall allot to each eligible agency having
a State plan approved under section 224--
``(A) $100,000, in the case of an eligible agency
serving an outlying area; and
``(B) $250,000, in the case of any other eligible
agency.
``(2) Additional allotments.--From the sums appropriated
under section 205, not reserved under subsection (a), and not
allotted under paragraph (1), for a fiscal year, the Secretary
shall allot to each eligible agency that receives an initial
allotment under paragraph (1) an additional amount that bears
the same relationship to such sums as the number of qualifying
adults in the State or outlying area served by the eligible
agency bears to the number of such adults in all States and
outlying areas.
``(d) Qualifying Adult.--For the purpose of subsection (c)(2), the
term `qualifying adult' means an adult who--
``(1) is at least 16 years of age;
``(2) is beyond the age of compulsory school attendance
under the law of the State or outlying area;
``(3) does not have a secondary school diploma or the
General Equivalency Diploma (GED) (including recognized
alternative standards for individuals with disabilities); and
``(4) is not enrolled in secondary school.
``(e) Special Rule.--
``(1) In general.--From amounts made available under
subsection (c) for the Republic of the Marshall Islands, the
Federated States of Micronesia, and the Republic of Palau, the
Secretary shall award grants to Guam, American Samoa, the
Commonwealth of the Northern Mariana Islands, the Republic of
the Marshall Islands, the Federated States of Micronesia, or
the Republic of Palau to carry out activities described in this
title in accordance with the provisions of this title as
determined by the Secretary.
``(2) Termination of eligibility.--Notwithstanding any
other provision of law, the Republic of the Marshall Islands,
the Federated States of Micronesia, and the Republic of Palau
shall be eligible to receive a grant under this title until an
agreement for the extension of United States education
assistance under the Compact of Free Association for each of
the Freely Associated States becomes effective.
``(3) Administrative costs.--The Secretary may provide not
more than 5 percent of the funds made available for grants
under this subsection to pay the administrative costs of the
Pacific Region Educational Laboratory regarding activities
assisted under this subsection.
``(f) Hold-Harmless Provisions.--
``(1) In general.--Notwithstanding subsection (c), and
subject to paragraphs (2) and (3), for fiscal year 2004 and
each succeeding fiscal year, no eligible agency shall receive
an allotment under this title that is less than 90 percent of
the allotment the eligible agency received for the preceding
fiscal year under this title.
``(2) Exception.--An eligible agency that receives for the
preceding fiscal year only an initial allotment under
subsection 211(c)(1) (and no additional allotment under
211(c)(2)) shall receive an allotment equal to 100 percent of
the initial allotment.
``(3) Ratable reduction.--If for any fiscal year the amount
available for allotment under this title is insufficient to
satisfy the provisions of paragraph (1), the Secretary shall
ratably reduce the payments to all eligible agencies, as
necessary.
``(g) Reallotment.--The portion of any eligible agency's allotment
under this title for a fiscal year that the Secretary determines will
not be required for the period such allotment is available for carrying
out activities under this title, shall be available for reallotment
from time to time, on such dates during such period as the Secretary
shall fix, to other eligible agencies in proportion to the original
allotments to such agencies under this title for such year.
``SEC. 212. PERFORMANCE ACCOUNTABILITY SYSTEM.
``(a) Purpose.--The purpose of this section is to establish a
comprehensive performance accountability system, composed of the
activities described in this section, to assess the effectiveness of
eligible agencies in achieving continuous improvement of adult basic
skills and family literacy education programs funded under this title,
in order to optimize the return on investment of Federal funds in adult
basic skills and family literacy education programs.
``(b) Eligible Agency Performance Measures.--
``(1) In general.--For each eligible agency, the eligible
agency performance measures shall consist of--
``(A)(i) the core indicators of performance
described in paragraph (2)(A); and
``(ii) employment performance indicators identified
by the eligible agency under paragraph (2)(B); and
``(B) an eligible agency adjusted level of
performance for each indicator described in
subparagraph (A).
``(2) Indicators of performance.--
``(A) Core indicators of performance.--The core
indicators of performance shall include the following:
``(i) Measurable improvements in basic
skill levels in reading, writing, and speaking
the English language and basic math, leading to
proficiency in each skill.
``(ii) Receipt of a secondary school
diploma or the General Equivalency Diploma
(GED) (including recognized alternative
standards for individuals with disabilities).
``(iii) Placement in postsecondary
education or other training programs.
``(B) Employment performance indicators.--
Consistent with applicable Federal and State privacy
laws, an eligible agency shall identify in the State
plan the following individual participant employment
performance indicators--
``(i) entry into employment;
``(ii) retention in employment; and
``(iii) increase in earnings.
``(3) Levels of performance.--
``(A) Eligible agency adjusted levels of
performance for core indicators.--
``(i) In general.--For each eligible agency
submitting a State plan, there shall be
established, in accordance with this
subparagraph, levels of performance for each of
the core indicators of performance described in
paragraph (2)(A) for adult basic skills and
family literacy education programs authorized
under this title. The levels of performance
established under this subparagraph shall, at a
minimum--
``(I) be expressed in an objective,
quantifiable, and measurable form; and
``(II) show the progress of the
eligible agency toward continuously and
significantly improving the agency's
performance outcomes in an objective,
quantifiable, and measurable form.
``(ii) Identification in state plan.--Each
eligible agency shall identify, in the State
plan submitted under section 224, expected
levels of performance for each of the core
indicators of performance for the first 3
program years covered by the State plan.
``(iii) Agreement on eligible agency
adjusted levels of performance for first 3
years.--In order to ensure an optimal return on
the investment of Federal funds in adult basic
skills and family literacy education programs
authorized under this title, the Secretary and
each eligible agency shall reach agreement on
levels of student proficiency for each of the
core indicators of performance, for the first 3
program years covered by the State plan, taking
into account the levels identified in the State
plan under clause (ii) and the factors
described in clause (iv). The levels agreed to
under this clause shall be considered to be the
eligible agency adjusted levels of performance
for the eligible agency for such years and
shall be incorporated into the State plan prior
to the approval of such plan.
``(iv) Factors.--The agreement described in
clause (iii) or (v) shall take into account--
``(I) how the levels involved
compare with the eligible agency's
adjusted levels of performance, taking
into account factors including the
characteristics of participants when
the participants entered the program;
and
``(II) the extent to which such
levels promote continuous and
significant improvement in performance
on the student proficiency measures
used by such eligible agency and ensure
optimal return on the investment of
Federal funds.
``(v) Agreement on eligible agency adjusted
levels of performance for second 3 years.--
Prior to the fourth program year covered by the
State plan, the Secretary and each eligible
agency shall reach agreement on levels of
student proficiency for each of the core
indicators of performance for the fourth,
fifth, and sixth program years covered by the
State plan, taking into account the factors
described in clause (iv). The levels agreed to
under this clause shall be considered to be the
eligible agency adjusted levels of performance
for the eligible agency for such years and
shall be incorporated into the State plan.
``(vi) Revisions.--If unanticipated
circumstances arise in a State resulting in a
significant change in the factors described in
clause (iv)(I), the eligible agency may request
that the eligible agency adjusted levels of
performance agreed to under clause (iii) or (v)
be revised.
``(B) Levels of employment performance.--The
eligible agency shall identify, in the State plan,
eligible agency levels of performance for each of the
employment performance indicators described in
paragraph (2)(B). Such levels shall be considered to be
eligible agency adjusted levels of performance for
purposes of this title.
``(c) Report.--
``(1) In general.--Each eligible agency that receives a
grant under section 211(b) shall annually prepare and submit to
the Secretary, the Governor, the State legislature, eligible
providers, and the general public within the State, a report on
the progress of the eligible agency in achieving eligible
agency performance measures, including the following:
``(A) Information on the levels of performance
achieved by the eligible agency with respect to the
core indicators of performance and employment
performance indicators.
``(B) The number and type of each eligible provider
that receives funding under such grant.
``(2) Information dissemination.--The Secretary--
``(A) shall make the information contained in such
reports available to the general public through
publication and other appropriate methods;
``(B) shall disseminate State-by-State comparisons
of the information; and
``(C) shall provide the appropriate committees of
the Congress with copies of such reports.
``SEC. 213. INCENTIVE GRANTS FOR STATES.
``(a) In General.--From funds appropriated under section 211(a)(2),
the Secretary may award grants to States for exemplary performance in
carrying out programs under this title. Such awards shall be based on
States meeting or exceeding the core indicators of performance
established under section 212(b)(2)(A) and may be based on the
performance of the State in serving populations, such as those
described in section 224(b)(10), including the levels of service
provided and the performance outcomes, and such other factors relating
to the performance of the State under this title as the Secretary
determines appropriate.
``(b) Use of Funds.--The funds awarded to a State under this
paragraph may be used to carry out any activities authorized under this
title, including demonstrations and innovative programs for hard-to-
serve populations.
``CHAPTER 2--STATE PROVISIONS
``SEC. 221. STATE ADMINISTRATION.
``Each eligible agency shall be responsible for the following
activities under this title:
``(1) The development, submission, implementation, and
monitoring of the State plan.
``(2) Consultation with other appropriate agencies, groups,
and individuals that are involved in, or interested in, the
development and implementation of activities assisted under
this title.
``(3) Coordination and avoidance of duplication with other
Federal and State education, training, corrections, public
housing, and social service programs.
``SEC. 222. STATE DISTRIBUTION OF FUNDS; MATCHING REQUIREMENT.
``(a) State Distribution of Funds.--Each eligible agency receiving
a grant under this title for a fiscal year--
``(1) shall use an amount not less than 82.5 percent of the
grant funds to award grants and contracts under section 231 and
to carry out section 225, of which not more than 10 percent of
such amount shall be available to carry out section 225;
``(2) shall use not more than 12.5 percent of the grant
funds to carry out State leadership activities under section
223; and
``(3) shall use not more than 5 percent of the grant funds,
or $75,000, whichever is greater, for the administrative
expenses of the eligible agency.
``(b) Matching Requirement.--
``(1) In general.--In order to receive a grant from the
Secretary under section 211(b), each eligible agency shall
provide, for the costs to be incurred by the eligible agency in
carrying out the adult basic skills and family literacy
education programs for which the grant is awarded, a non-
Federal contribution in an amount at least equal to--
``(A) in the case of an eligible agency serving an
outlying area, 12 percent of the total amount of funds
expended for adult basic skills and family literacy
education programs in the outlying area, except that
the Secretary may decrease the amount of funds required
under this subparagraph for an eligible agency; and
``(B) in the case of an eligible agency serving a
State, 25 percent of the total amount of funds expended
for adult basic skills and family literacy education
programs in the State.
``(2) Non-federal contribution.--An eligible agency's non-
Federal contribution required under paragraph (1) may be
provided in cash or in kind, fairly evaluated, and shall
include only non-Federal funds that are used for adult basic
skills and family literacy education programs in a manner that
is consistent with the purpose of this title.
``SEC. 223. STATE LEADERSHIP ACTIVITIES.
``(a) In General.--Each eligible agency may use funds made
available under section 222(a)(2) for any of the following adult basic
skills and family literacy education programs:
``(1) The establishment or operation of professional
development programs to improve the quality of instruction
provided pursuant to local activities required under section
231(b), including instruction incorporating the essential
components of reading instruction and instruction provided by
volunteers or by personnel of a State or outlying area.
``(2) The provision of technical assistance to eligible
providers of adult basic skills and family literacy education
programs for development and dissemination of scientific
research-based instructional practices in reading, writing,
speaking, math, and English language acquisition programs.
``(3) The provision of assistance to eligible providers in
developing, implementing, and reporting measurable progress in
achieving the objectives of this title.
``(4) The provision of technology assistance, including
staff training, to eligible providers of adult basic skills and
family literacy education programs, including distance learning
activities, to enable the eligible providers to improve the
quality of such activities.
``(5) The development and implementation of technology
applications or distance learning, including professional
development to support the use of instructional technology.
``(6) Coordination with other public programs, including
welfare-to-work, workforce development, and job training
programs.
``(7) Coordination with existing support services, such as
transportation, child care, and other assistance designed to
increase rates of enrollment in, and successful completion of,
adult basic skills and family literacy education programs, for
adults enrolled in such activities.
``(8) The development and implementation of a system to
assist in the transition from adult basic education to
postsecondary education.
``(9) Activities to promote workplace literacy programs.
``(10) Activities to promote and complement local outreach
initiatives described in section 242(7).
``(11) Other activities of statewide significance,
including assisting eligible agencies in achieving progress in
improving the skill levels of adults who participate in
programs under this title.
``(b) Coordination.--In carrying out this section, eligible
agencies shall coordinate where possible, and avoid duplicating
efforts, in order to maximize the impact of the activities described in
subsection (a).
``(c) State-Imposed Requirements.--Whenever a State or outlying
area implements any rule or policy relating to the administration or
operation of a program authorized under this title that has the effect
of imposing a requirement that is not imposed under Federal law
(including any rule or policy based on a State or outlying area
interpretation of a Federal statute, regulation, or guideline), the
State or outlying area shall identify, to eligible providers, the rule
or policy as being imposed by the State or outlying area.
``SEC. 224. STATE PLAN.
``(a) 6-Year Plans.--
``(1) In general.--Each eligible agency desiring a grant
under this title for any fiscal year shall submit to, or have
on file with, the Secretary a 6-year State plan.
``(2) Comprehensive plan or application.--The eligible
agency may submit the State plan as part of a comprehensive
plan or application for Federal education assistance.
``(b) Plan Contents.--The eligible agency shall include in the
State plan or any revisions to the State plan--
``(1) an objective assessment of the needs of individuals
in the State or outlying area for adult basic skills and family
literacy education programs, including individuals most in need
or hardest to serve;
``(2) a description of the adult basic skills and family
literacy education programs that will be carried out with funds
received under this title;
``(3) a description of how the eligible agency will
evaluate and measure annually the effectiveness and improvement
of the adult basic skills and family literacy education
programs based on the performance measures described in section
212 including--
``(A) how the eligible agency will evaluate and
measure annually such effectiveness on a grant-by-grant
basis; and
``(B) how the eligible agency--
``(i) will hold eligible providers
accountable regarding the progress of such
providers in improving the academic achievement
of participants in adult education programs
under this title and regarding the core
indicators of performance described in section
212(b)(2)(A); and
``(ii) will use technical assistance,
sanctions, and rewards (including allocation of
grant funds based on performance and
termination of grant funds based on
nonperformance);
``(4) a description of the performance measures described
in section 212 and how such performance measures have
significantly improved adult basic skills and family literacy
education programs in the State or outlying area;
``(5) an assurance that the eligible agency will, in
addition to meeting all of the other requirements of this
title, award not less than one grant under this title to an
eligible provider that--
``(A) offers flexible schedules and necessary
support services (such as child care and
transportation) to enable individuals, including
individuals with disabilities, or individuals with
other special needs, to participate in adult basic
skills and family literacy education programs; and
``(B) attempts to coordinate with support services
that are not provided under this title prior to using
funds for adult basic skills and family literacy
education programs provided under this title for
support services;
``(6) an assurance that the funds received under this title
will not be expended for any purpose other than for activities
under this title;
``(7) a description of how the eligible agency will fund
local activities in accordance with the measurable goals
described in section 231(d);
``(8) an assurance that the eligible agency will expend the
funds under this title only in a manner consistent with fiscal
requirements in section 241;
``(9) a description of the process that will be used for
public participation and comment with respect to the State
plan, which process--
``(A) shall include consultation with the State
workforce investment board, the State board responsible
for administering community or technical colleges, the
Governor, the State educational agency, the State board
or agency responsible for administering block grants
for temporary assistance to needy families under title
IV of the Social Security Act, the State council on
disabilities, the State vocational rehabilitation
agency, other State agencies that promote the
improvement of adult basic skills and family literacy
education programs, and direct providers of such
programs; and
``(B) may include consultation with the State
agency on higher education, institutions responsible
for professional development of adult basic skills and
family literacy education programs instructors,
representatives of business and industry, refugee
assistance programs, and faith-based organizations;
``(10) a description of the eligible agency's strategies
for serving populations that include, at a minimum--
``(A) low-income individuals;
``(B) individuals with disabilities;
``(C) the unemployed;
``(D) the underemployed; and
``(E) individuals with multiple barriers to
educational enhancement, including individuals with
limited English proficiency;
``(11) a description of how the adult basic skills and
family literacy education programs that will be carried out
with any funds received under this title will be integrated
with other adult education, career development, and employment
and training activities in the State or outlying area served by
the eligible agency;
``(12) a description of the steps the eligible agency will
take to ensure direct and equitable access, as required in
section 231(c)(1), including--
``(A) how the State will build the capacity of
community-based and faith-based organizations to
provide adult basic skills and family literacy
education programs; and
``(B) how the State will increase the participation
of business and industry in adult basic skills and
family literacy education programs; and
``(13) a description of how the eligible agency will
consult with any State agency responsible for postsecondary
education to develop adult education that prepares students to
enter postsecondary education without the need for remediation
upon completion of secondary school equivalency programs.
``(c) Plan Revisions.--When changes in conditions or other factors
require substantial revisions to an approved State plan, the eligible
agency shall submit the revisions of the State plan to the Secretary.
``(d) Consultation.--The eligible agency shall--
``(1) submit the State plan, and any revisions to the State
plan, to the Governor, the chief State school officer, or the
State officer responsible for administering community or
technical colleges, or outlying area for review and comment;
and
``(2) ensure that any comments regarding the State plan by
the Governor, the chief State school officer, or the State
officer responsible for administering community or technical
colleges, and any revision to the State plan, are submitted to
the Secretary.
``(e) Plan Approval.--A State plan submitted to the Secretary shall
be approved by the Secretary only if the plan is consistent with the
specific provisions of this title.
``SEC. 225. PROGRAMS FOR CORRECTIONS EDUCATION AND OTHER
INSTITUTIONALIZED INDIVIDUALS.
``(a) Program Authorized.--From funds made available under section
222(a)(1) for a fiscal year, each eligible agency shall carry out
corrections education and education for other institutionalized
individuals.
``(b) Uses of Funds.--The funds described in subsection (a) shall
be used for the cost of educational programs for criminal offenders in
correctional institutions and for other institutionalized individuals,
including academic programs for--
``(1) basic skills education;
``(2) special education programs as determined by the
eligible agency;
``(3) reading, writing, speaking, and math programs; and
``(4) secondary school credit or diploma programs or their
recognized equivalent.
``(c) Priority.--Each eligible agency that is using assistance
provided under this section to carry out a program for criminal
offenders within a correctional institution shall give priority to
serving individuals who are likely to leave the correctional
institution within 5 years of participation in the program.
``(d) Definitions.--For purposes of this section:
``(1) Correctional institution.--The term `correctional
institution' means any--
``(A) prison;
``(B) jail;
``(C) reformatory;
``(D) work farm;
``(E) detention center; or
``(F) halfway house, community-based rehabilitation
center, or any other similar institution designed for
the confinement or rehabilitation of criminal
offenders.
``(2) Criminal offender.--The term `criminal offender'
means any individual who is charged with, or convicted of, any
criminal offense.
``CHAPTER 3--LOCAL PROVISIONS
``SEC. 231. GRANTS AND CONTRACTS FOR ELIGIBLE PROVIDERS.
``(a) Grants and Contracts.--From grant funds made available under
section 211(b), each eligible agency shall award multiyear grants or
contracts, on a competitive basis, to eligible providers within the
State or outlying area that meet the conditions and requirements of
this title to enable the eligible providers to develop, implement, and
improve adult basic skills and family literacy education programs
within the State.
``(b) Local Activities.--The eligible agency shall require eligible
providers receiving a grant or contract under subsection (a) to
establish or operate one or more programs of instruction that provide
services or instruction in one or more of the following categories:
``(1) Adult basic skills and family literacy education
programs (including proficiency in reading, writing, speaking,
and math).
``(2) Workplace literacy programs.
``(3) English language acquisition programs.
``(4) Family literacy education programs.
``(c) Direct and Equitable Access; Same Process.--Each eligible
agency receiving funds under this title shall ensure that--
``(1) all eligible providers have direct and equitable
access to apply for grants or contracts under this section; and
``(2) the same grant or contract announcement process and
application process is used for all eligible providers in the
State or outlying area.
``(d) Measurable Goals.--The eligible agency shall require eligible
providers receiving a grant or contract under subsection (a) to
demonstrate--
``(1) the eligible provider's measurable goals for
participant outcomes to be achieved annually on the core
indicators of performance and employment performance indicators
described in section 212(b)(2);
``(2) the past effectiveness of the eligible provider in
improving the basic academic skills of adults and, for eligible
providers receiving grants in the prior year, the success of
the eligible provider receiving funding under this title in
meeting or exceeding its performance goals in the prior year;
``(3) the commitment of the eligible provider to serve
individuals in the community who are the most in need of basic
academic skills instruction services, including individuals who
are low-income or have minimal reading, writing, speaking, and
math skills, or limited English proficiency;
``(4) the program--
``(A) is of sufficient intensity and duration for
participants to achieve substantial learning gains; and
``(B) uses instructional practices that include the
essential components of reading instruction;
``(5) educational practices are based on scientifically
based research;
``(6) the activities of the eligible provider effectively
employ advances in technology, as appropriate, including the
use of computers;
``(7) the activities provide instruction in real-life
contexts, when appropriate and scientifically based, to ensure
that an individual has the skills needed to compete in the
workplace and exercise the rights and responsibilities of
citizenship;
``(8) the activities are staffed by well-trained
instructors, counselors, and administrators;
``(9) the activities are coordinated with other available
resources in the community, such as through strong links with
elementary schools and secondary schools, postsecondary
educational institutions, one-stop centers, job training
programs, community-based and faith-based organizations, and
social service agencies;
``(10) the activities offer flexible schedules and support
services (such as child care and transportation) that are
necessary to enable individuals, including individuals with
disabilities or other special needs, to attend and complete
programs;
``(11) the activities include a high-quality information
management system that has the capacity to report measurable
participant outcomes and to monitor program performance against
the performance measures established by the eligible agency;
``(12) the local communities have a demonstrated need for
additional English language acquisition programs;
``(13) the capacity of the eligible provider to produce
valid information on performance results, including enrollments
and measurable participant outcomes;
``(14) adult basic skills and family literacy education
programs offer rigorous reading, writing, speaking, and math
content that are based on scientific research; and
``(15) applications of technology, and services to be
provided by the eligible providers, are of sufficient intensity
and duration to increase the amount and quality of learning and
lead to measurable learning gains within specified time
periods.
``(e) Special Rule.--Eligible providers may use grant funds under
this title to serve children participating in family literacy programs
assisted under this part, provided that other sources of funds
available to provide similar services for such children are used first.
``SEC. 232. LOCAL APPLICATION.
``Each eligible provider desiring a grant or contract under this
title shall submit an application to the eligible agency containing
such information and assurances as the eligible agency may require,
including--
``(1) a description of how funds awarded under this title
will be spent consistent with the requirements of this title;
``(2) a description of any cooperative arrangements the
eligible provider has with other agencies, institutions, or
organizations for the delivery of adult basic skills and family
literacy education programs; and
``(3) each of the demonstrations required by section
231(d).
``SEC. 233. LOCAL ADMINISTRATIVE COST LIMITS.
``(a) In General.--Subject to subsection (b), of the amount that is
made available under this title to an eligible provider--
``(1) at least 95 percent shall be expended for carrying
out adult basic skills and family literacy education programs;
and
``(2) the remaining amount shall be used for planning,
administration, personnel and professional development,
development of measurable goals in reading, writing, speaking,
and math, and interagency coordination.
``(b) Special Rule.--In cases where the cost limits described in
subsection (a) are too restrictive to allow for adequate planning,
administration, personnel development, and interagency coordination,
the eligible provider may negotiate with the eligible agency in order
to determine an adequate level of funds to be used for noninstructional
purposes.
``CHAPTER 4--GENERAL PROVISIONS
``SEC. 241. ADMINISTRATIVE PROVISIONS.
``(a) Supplement Not Supplant.--Funds made available for adult
basic skills and family literacy education programs under this title
shall supplement and not supplant other State or local public funds
expended for adult basic skills and family literacy education programs.
``(b) Maintenance of Effort.--
``(1) In general.--
``(A) Determination.--An eligible agency may
receive funds under this title for any fiscal year if
the Secretary finds that the fiscal effort per student
or the aggregate expenditures of such eligible agency
for activities under this title, in the second
preceding fiscal year, were not less than 90 percent of
the fiscal effort per student or the aggregate
expenditures of such eligible agency for adult basic
skills and family literacy education programs, in the
third preceding fiscal year.
``(B) Proportionate reduction.--Subject to
paragraphs (2), (3), and (4), for any fiscal year with
respect to which the Secretary determines under
subparagraph (A) that the fiscal effort or the
aggregate expenditures of an eligible agency for the
preceding program year were less than such effort or
expenditures for the second preceding program year, the
Secretary--
``(i) shall determine the percentage
decreases in such effort or in such
expenditures; and
``(ii) shall decrease the payment made
under this title for such program year to the
agency for adult basic skills and family
literacy education programs by the lesser of
such percentages.
``(2) Computation.--In computing the fiscal effort and
aggregate expenditures under paragraph (1), the Secretary shall
exclude capital expenditures and special one-time project
costs.
``(3) Decrease in federal support.--If the amount made
available for adult basic skills and family literacy education
programs under this title for a fiscal year is less than the
amount made available for adult basic skills and family
literacy education programs under this title for the preceding
fiscal year, then the fiscal effort per student and the
aggregate expenditures of an eligible agency required in order
to avoid a reduction under paragraph (1)(B) shall be decreased
by the same percentage as the percentage decrease in the amount
so made available.
``(4) Waiver.--The Secretary may waive the requirements of
this subsection for not more than 1 fiscal year, if the
Secretary determines that a waiver would be equitable due to
exceptional or uncontrollable circumstances, such as a natural
disaster or an unforeseen and precipitous decline in the
financial resources of the State or outlying area of the
eligible agency. If the Secretary grants a waiver under the
preceding sentence for a fiscal year, the level of effort
required under paragraph (1) shall not be reduced in the
subsequent fiscal year because of the waiver.
``SEC. 242. NATIONAL LEADERSHIP ACTIVITIES.
``The Secretary shall establish and carry out a program of national
leadership activities that may include the following:
``(1) Technical assistance, on request, including
assistance--
``(A) on requests to volunteer community- and
faith-based organizations, including but not limited
to, improving their fiscal management, research-based
instruction, and reporting requirements, and the
development of measurable objectives to carry out the
requirements of this title;
``(B) in developing valid, measurable, and reliable
performance data, and using performance information for
the improvement of adult basic skills and family
literacy education programs;
``(C) on adult education professional development;
and
``(D) in using distance learning and improving the
application of technology in the classroom.
``(2) Providing for the conduct of research on national
literacy basic skill acquisition levels among adults, including
the number of adults functioning at different levels of reading
proficiency.
``(3) Improving the coordination, efficiency, and
effectiveness of adult education and workforce development
services at the national, State, and local levels.
``(4) Determining how participation in adult basic skills
and family literacy education programs prepares individuals for
entry into and success in postsecondary education and
employment, and in the case of prison-based services, the
effect on recidivism.
``(5) Evaluating how different types of providers,
including community and faith-based organizations or private
for-profit agencies measurably improve the skills of
participants in adult basic skills and family literacy
education programs.
``(6) Identifying model integrated basic and workplace
skills education programs, coordinated literacy and employment
services, and effective strategies for serving adults with
disabilities.
``(7) Supporting the development of an entity that would
produce and distribute technology-based programs and materials
for adult basic skills and family literacy education programs
using an intercommunication system, as that term is defined in
section 397 of the Communications Act of 1934 (47 U.S.C. 397),
and expand the effective outreach and use of such programs and
materials to adult education eligible providers.
``(8) Initiating other activities designed to improve the
measurable quality and effectiveness of adult basic skills and
family literacy education programs nationwide.''.
PART B--NATIONAL INSTITUTE FOR LITERACY
SEC. 211. SHORT TITLE; PURPOSE.
(a) Short Title.--This part may be cited as the ``National
Institute for Literacy Establishment Act''.
(b) Purpose.--The purpose of this part is to establish a National
Institute for Literacy to provide national leadership in promoting
reading research, reading instruction, and professional development in
reading based on scientifically based research by--
(1) disseminating widely information on scientifically
based reading research to improve academic achievement for
children, youth, and adults;
(2) identifying and disseminating information about
schools, local educational agencies, and State educational
agencies that have effectively developed and implemented
classroom reading programs that meet the requirements of
subpart 1 of part B of title I of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6361 et seq.), including those
State educational agencies, local educational agencies, and
schools that are identified as effective through the External
Evaluation of Reading First under section 1205 of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
6365);
(3) serving as a national resource for information on
reading instruction programs that contain the essential
components of reading instruction as supported by
scientifically based reading research, and that can lead to
improved reading outcomes for children, youth, and adults;
(4) developing print and electronic materials that describe
and model the application of scientifically based reading
research;
(5) providing national and regional reading leadership for
State and local personnel for the application and
implementation of scientifically based reading research;
(6) coordinating efforts among Federal agencies, especially
the Department of Labor, the Department of Health and Human
Services, and the National Institute of Child Health and Human
Development, that provide reading programs, conduct research,
and provide services to recipients of Federal financial
assistance under titles I and III of the Elementary and
Secondary Education Act of 1965, the Head Start Act, the
Individuals with Disabilities Education Act, and the Adult
Basic Skills and Family Literacy Education Act, and each Bureau
funded school (as defined in title XI of the Education
Amendments of 1978 (25 U.S.C. 2001 et seq.)); and
(7) informing the Congress, Federal departments and
agencies, schools of education, and the public of successful
local, State, and Federal program activities in reading
instruction that are determined to be effective based on the
findings of scientifically based reading research.
SEC. 212. ESTABLISHMENT.
(a) In General.--There is established the National Institute for
Literacy. The Institute shall be administered, in accordance with this
part, under the supervision and direction of a Director. There shall be
an agreement between an Interagency Group (comprised of the Secretary
of Education, the Secretary of Labor, and the Secretary of Health and
Human Services) and the Institute on how the purposes of the Institute
may be achieved effectively. Such agreement--
(1) shall be regularly reviewed, and modified as needed to
remain current with any changes in the purposes of the
Institute; and
(2) shall be updated no later than 1 year after the
enactment of this part.
(b) Director.--
(1) Appointment.--The Interagency Group shall appoint a
Director of the Institute, who has an understanding of,
supports, and is familiar with scientifically based reading
research, instruction, and professional development applicable
to children, youth, and adults. If a vacancy in the position of
the Director of the Institute occurs, the Interagency Group
shall appoint an Interim Director until such time as a new
Director can be appointed.
(2) Pay.--The Director of the Institute shall receive the
rate of basic pay for level IV of the Executive Schedule.
(3) Term.--The Director of the Institute shall be appointed
for an initial term of 3 years and may serve not more than 1
additional term of 3 years.
SEC. 213. ADMINISTRATION.
(a) In General.--The Director of the Institute shall be responsible
for administering the Institute. The Director of the Institute shall--
(1) provide leadership for the Institute, consistent with
the purposes described in section 211(b);
(2) supervise all employees in the Institute;
(3) assign responsibility to carry out the duties of the
Institute among officers ad employees, and offices of the
Institute;
(4) prepare requests for appropriations for the Institute
and submit those requests to the Interagency Group;
(5) oversee the expenditure of all funds allocated for the
Institute to carry out the purposes under section 211(b); and
(6) ensure that the Institute's standards for research
quality are consistent with those promulgated by the Institute
for Education Sciences.
(b) Offices.--The Institute shall have separate offices from the
Department of Education, the Department of Labor, and the Department of
Health and Human Services, and shall have maximum flexibility in its
operations to carry out the purposes of the Institute.
(c) Administrative Support.--The Secretary of Education shall
provide administrative support for the Institute, including the
administration of grants, contracts and cooperative agreements,
personnel, legal counsel, and payroll.
SEC. 214. DUTIES.
(a) In General.--In order to provide leadership for the improvement
and expansion of the system for delivery of scientifically based
reading instructional practices, the Director of the Institute shall--
(1) establish a national electronic database of effective
reading programs for children, youth, and adults that include
the essential components of reading instruction, and
disseminate such information to parents, teachers, State and
Federal elected officials, and the public;
(2) develop print and electronic materials for professional
development that provide applications of scientifically based
reading research, and instructional practices in reading for
children, youth, and adults;
(3) provide technical assistance to the Congress, school
Boards, Federal agencies, State departments of education, adult
education programs, local school districts, local public and
private schools, and schools of education, on scientifically
based reading instructional practices including diagnostic and
assessment instruments and instructional materials;
(4) collaborate and support Federal research programs in
reading instruction, including, where appropriate, those areas
of study addressed by the National Institute of Child Health
and Human Development, the Institute for Education Sciences,
the National Science Foundation, the Department of Labor, and
the National Research Council;
(5) coordinate with the Department of Education, the
Department of Labor, the Department of Health and Human
Services, and the National Institute of Child Health and Human
Development on all programs that include improving reading
instructional practices for children, youth, and adults, and
teacher training in reading instructional practices;
(6) use and support the collection of the best possible
information in carrying out this section, and where
appropriate, including reviews of research on instruction using
the criteria for quality identified by the Institute for
Education Sciences;
(7) conduct reviews of research, including randomized field
trials, on reading programs, and conduct reviews of Federal
reading policies and reading program implementation using a
board of visitors as described in subchapter 300 of the
National Science Foundation Administrative Manual; and
(8) develop an Internet site that provides useful
information to educators and the public on reading literacy
that is consistent with the purposes described in section
211(b).
(b) Grants, Contracts, and Cooperative Agreements.--The Institute
may award grants to, or enter into contracts or cooperative agreements
with, individuals, public or private institutions, agencies,
organizations, or other legal entities to carry out the activities of
the Institute.
(c) Relation to Other Laws.--The duties and powers of the Institute
under this part are in addition to the duties and powers of the
Institute under subparts 1, 2, and 3 of part B of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 1201 et seq.) (commonly
referred to as Reading First, Early Reading First, and the William F.
Goodling Even Start Family Literacy Programs, respectively).
SEC. 215. LEADERSHIP IN SCIENTIFICALLY BASED READING INSTRUCTION.
(a) In General.--The Director of the Institute may award
fellowships, with such stipends and allowances as necessary, to
outstanding individuals who are pursuing careers in scientifically
based research in reading instruction or pre-service or in-service
training in reading instruction, including teaching children and adults
to read.
(b) Fellowships.--Fellowships awarded under this subsection shall
be used, under the auspices of the Institute, to engage in research,
education training, technical assistance, or other activities to
advance the field of scientifically based reading instruction for
children, youth, and adults, including the training of volunteers in
such reading skills instruction.
(c) Interns and Volunteers.--The Director of the Institute may
award paid and unpaid internships to individuals seeking to assist the
Institute in carrying out its mission. Notwithstanding section 1342 of
title 31, United States Code, the Institute may accept and use
voluntary and uncompensated services as the Institute deems necessary.
SEC. 216. NATIONAL INSTITUTE FOR LITERACY ADVISORY BOARD.
(a) Establishment.--
(1) In general.--There shall be a National Institute for
Literacy Advisory Board, which shall consist of 10 individuals
appointed by the President with the advice and consent of the
Senate.
(2) Composition.--The Board shall be comprised of
individuals who are not otherwise officers or employees of the
Federal Government and who are knowledgeable about
scientifically based reading instruction, and the findings of
scientifically based reading research. The members of the Board
may include--
(A) representatives from teacher training
institutions where scientifically based reading
instruction is a major component of pre-service
training;
(B) teachers who have been successful in teaching
children to read proficiently;
(C) members of the business community who have
developed successful employee reading instruction
programs;
(D) volunteer tutors in reading who are using
scientifically based reading instruction;
(E) reading researchers who have conducted
scientifically based research; and
(F) other qualified individuals knowledgeable about
scientifically based reading instruction, including
adult education.
(b) Duties.--The Board shall--
(1) provide advice to the Director of the Institute to
ensure that the purposes of the Institute under section 211 are
carried out effectively; and
(2) approve the annual report to the Congress;
(c) Federal Advisory Committee Act.--Except as otherwise provided
in this part, the Board established by this section shall be subject to
the provisions of the Federal Advisory Committee Act (5 U.S.C. App.).
(d) Appointments.--
(1) In general.--Each member of the Board shall be
appointed for a term of 3 years, except that the initial terms
for members may be 1, 2, or 3 years in order to establish a
rotation, in which \1/3\ of the members are selected each year.
Any such member may be appointed for not more than 2
consecutive terms.
(2) Vacancies.--Any member appointed to fill a vacancy
occurring before the expiration of the term for which the
member's predecessor was appointed shall be appointed only for
the remainder of that term. A member may serve after the
expiration of that member's term until a successor has taken
office.
(e) Quorum.--A majority of the members of the Board shall
constitute a quorum, but a lesser number may hold hearings. Any
recommendation of the Board may be passed only by a majority of the
Board members present.
(f) Election of Officers.--The Chairperson and Vice Chairperson of
the Board shall be elected by the members of the Board. The term of
office of the Chairperson and Vice Chairperson shall be 2 years.
(g) Meetings.--The Board shall meet at the call of the Chairperson,
or a majority of the members of the Board, but not less than quarterly.
SEC. 217. GIFTS, BEQUESTS, AND DEVISES.
(a) In General.--The Institute may accept, administer, and use
gifts or donations of services, money, or property, whether real or
personal, tangible or intangible.
(b) Rules.--The Director of the Institute shall establish written
rules setting forth the criteria to be used by the Institute in
determining whether the acceptance of contributions of services, money,
or property whether real or personal, tangible or intangible, would
reflect unfavorably upon the ability of the Institute or any employee
to carry out the responsibilities of the Institute or employee, or
official duties, in a fair and objective manner, or would compromise
the integrity or the appearance of the integrity of the Institute's
programs or any official involved in those programs.
SEC. 218. MAILS.
The Board and the Institute may use the United States mails in the
same manner and under the same conditions as other departments and
agencies of the United States.
SEC. 219. APPLICABILITY OF CERTAIN CIVIL SERVICE LAWS.
The Director of the Institute and the staff of the Institute may be
appointed without regard to the provisions of title 5, United States
Code, governing appointments in the competitive service, and may be
paid without regard to the provisions of chapter 51 and subchapter III
of chapter 53 of that title relating to classification and General
Schedule pay rates, except that an individual so appointed may not
receive pay in excess of the annual rate of basic pay payable for level
IV of the Executive Schedule.
SEC. 220. EXPERTS AND CONSULTANTS.
The Institute may procure temporary and intermittent services under
section 3109(b) of title 5, United States Code.
SEC. 221. REPORT.
(a) In General.--The Institute shall submit a biennial report to
the Committee on Education and the Workforce of the House of
Representatives and the Committee on Health, Education, Labor, and
Pensions of the Senate. Each report submitted under this section shall
include--
(1) a comprehensive and detailed description of the
Institute's operations, activities, financial condition, and
accomplishments in carrying out the purposes of the Institute
as specified in section 211, for the period covered by the
report; and
(2) a summary description of how the Institute will advance
the purposes of the Institute for the next biennium.
(b) First Report.--The Institute shall submit a report under this
section not later than 1 year after the date of enactment of this part.
SEC. 222. DEFINITIONS.
For purposes of this part--
(1) the term ``Board'' means the National Institute for
Literacy Advisory Board;
(2) the term ``Institute'' means the National Institute for
Literacy;
(3) the term ``Interagency Group'' means the Secretary of
Education, the Secretary of Labor, and the Secretary of Health
and Human Services;
(4) the term ``literacy'' means the ability to read, write,
and speak the English language with competence, knowledge, and
comprehension; and
(5) the terms ``reading'', ``scientifically based reading
research'', and ``essential components of reading instruction''
have the meanings given those terms in section 1208 of part B
of title I of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 6368).
SEC. 223. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to administer and carry out
this part $6,700,000 for fiscal year 2004 and such sums as may be
necessary for each of the 5 succeeding fiscal years.
SEC. 224. RESERVATION.
From amounts appropriated to the Institute, the Director of the
Institute may use not more than 5 percent of such amounts for the
administration of information dissemination under section 1207 of the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 6367).
SEC. 225. AUTHORITY TO PUBLISH.
The Institute, including the Board, may prepare, publish, and
present (including through oral presentations) such research-based
information and research reports as needed to carry out the purposes
and mission of the Institute.
PART C--GENERAL PROVISIONS
SEC. 241. TRANSITION.
The Secretary shall take such actions as the Secretary determines
to be appropriate to provide for the orderly implementation of this
title.
TITLE III--AMENDMENTS TO THE WAGNER-PEYSER ACT
SEC. 301. AMENDMENTS TO THE WAGNER-PEYSER ACT.
The Wagner-Peyser Act (29 U.S.C. 49 et. seq.) is amended--
(1) by striking sections 1 through 13;
(2) in section 14 by inserting ``of Labor'' after
``Secretary''; and
(3) by amending section 15 to read as follows:
``SEC. 15. WORKFORCE AND LABOR MARKET INFORMATION SYSTEM.
``(a) System Content.--
``(1) In general.--The Secretary of Labor, in accordance
with the provisions of this section, shall oversee the
development, maintenance, and continuous improvement of a
nationwide workforce and labor market information system that
includes--
``(A) statistical data from cooperative statistical
survey and projection programs and data from
administrative reporting systems that, taken together,
enumerate, estimate, and project employment
opportunities and conditions at national, State, and
local levels in a timely manner, including statistics
on--
``(i) employment and unemployment status of
national, State, and local populations,
including self-employed, part-time, and
seasonal workers;
``(ii) industrial distribution of
occupations, as well as current and projected
employment opportunities, wages, benefits
(where data is available), and skill trends by
occupation and industry, with particular
attention paid to State and local conditions;
``(iii) the incidence of, industrial and
geographical location of, and number of workers
displaced by, permanent layoffs and plant
closings; and
``(iv) employment and earnings information
maintained in a longitudinal manner to be used
for research and program evaluation;
``(B) information on State and local employment
opportunities, and other appropriate statistical data
related to labor market dynamics, which--
``(i) shall be current and comprehensive;
``(ii) shall meet the needs identified
through the consultations described in
subparagraphs (A) and (B) of subsection (e)(2);
and
``(iii) shall meet the needs for the
information identified in section 134(d);
``(C) technical standards (which the Secretary
shall publish annually) for data and information
described in subparagraphs (A) and (B) that, at a
minimum, meet the criteria of chapter 35 of title 44,
United States Code;
``(D) procedures to ensure compatibility and
additivity of the data and information described in
subparagraphs (A) and (B) from national, State, and
local levels;
``(E) procedures to support standardization and
aggregation of data from administrative reporting
systems described in subparagraph (A) of employment-
related programs;
``(F) analysis of data and information described in
subparagraphs (A) and (B) for uses such as--
``(i) national, State, and local
policymaking;
``(ii) implementation of Federal policies
(including allocation formulas);
``(iii) program planning and evaluation;
and
``(iv) researching labor market dynamics;
``(G) wide dissemination of such data, information,
and analysis in a user-friendly manner and voluntary
technical standards for dissemination mechanisms; and
``(H) programs of--
``(i) training for effective data
dissemination;
``(ii) research and demonstration; and
``(iii) programs and technical assistance.
``(2) Information to be confidential.--
``(A) In general.--No officer or employee of the
Federal Government or agent of the Federal Government
may--
``(i) use any submission that is furnished
for exclusively statistical purposes under the
provisions of this section for any purpose
other than the statistical purposes for which
the submission is furnished;
``(ii) make any publication or media
transmittal of the data contained in the
submission described in clause (i) that permits
information concerning individual subjects to
be reasonably inferred by either direct or
indirect means; or
``(iii) permit anyone other than a sworn
officer, employee, or agent of any Federal
department or agency, or a contractor
(including an employee of a contractor) of such
department or agency, to examine an individual
submission described in clause (i);
without the consent of the individual, agency, or other
person who is the subject of the submission or provides
that submission.
``(B) Immunity from legal process.--Any submission
(including any data derived from the submission) that
is collected and retained by a Federal department or
agency, or an officer, employee, agent, or contractor
of such a department or agency, for exclusively
statistical purposes under this section shall be immune
from the legal process and shall not, without the
consent of the individual, agency, or other person who
is the subject of the submission or provides that
submission, be admitted as evidence or used for any
purpose in any action, suit, or other judicial or
administrative proceeding.
``(C) Rule of construction.--Nothing in this
section shall be construed to provide immunity from the
legal process for such submission (including any data
derived from the submission) if the submission is in
the possession of any person, agency, or entity other
than the Federal Government or an officer, employee,
agent, or contractor of the Federal Government, or if
the submission is independently collected, retained, or
produced for purposes other than the purposes of this
Act.
``(b) System Responsibilities.--
``(1) In general.--The workforce and labor market
information system described in subsection (a) shall be
planned, administered, overseen, and evaluated through a
cooperative governance structure involving the Federal
Government and States.
``(2) Duties.--The Secretary, with respect to data
collection, analysis, and dissemination of labor employment
statistics for the system, shall carry out the following
duties:
``(A) Assign responsibilities within the Department
of Labor for elements of the workforce and labor market
information system described in subsection (a) to
ensure that all statistical and administrative data
collected is consistent with appropriate Bureau of
Labor Statistics standards and definitions.
``(B) Actively seek the cooperation of other
Federal agencies to establish and maintain mechanisms
for ensuring complementarity and nonduplication in the
development and operation of statistical and
administrative data collection activities.
``(C) Eliminate gaps and duplication in statistical
undertakings, with the systemization of wage surveys as
an early priority.
``(D) In collaboration with the Bureau of Labor
Statistics and States, develop and maintain the
elements of the workforce and labor market information
system described in subsection (a), including the
development of consistent procedures and definitions
for use by the States in collecting the data and
information described in subparagraphs (A) and (B) of
subsection (a)(1).
``(E) Establish procedures for the system to ensure
that--
``(i) such data and information are timely;
``(ii) paperwork and reporting for the
system are reduced to a minimum; and
``(iii) States and localities are fully
involved in the development and continuous
improvement of the system at all levels,
including ensuring the provision, to such
States and localities, of budget information
necessary for carrying out their
responsibilities under subsection (e).
``(c) National Electronic Tools To Provide Services.--The Secretary
is authorized to assist in the development of national electronic tools
that may be used to facilitate the delivery of core services described
in section 134 and to provide workforce information to individuals
through the one-stop delivery systems descried in section 121 and
through other appropriate delivery systems.
``(d) Coordination With the States.--
``(1) In general.--The Secretary, working through the
Bureau of Labor Statistics and the Employment and Training
Administration, shall regularly consult with representatives of
State agencies carrying out workforce information activities
regarding strategies for improving the workforce and labor
market information system.
``(2) Formal consultations.--At least twice each year, the
Secretary, working through the Bureau of Labor Statistics,
shall conduct formal consultations regarding programs carried
out by the Bureau of Labor Statistics with representatives of
each of the 10 Federal regions of the Department of Labor,
elected from the State directors affiliated with State agencies
that perform the duties described in subsection (e)(2).
``(e) State Responsibilities.--
``(1) Designation of state agency.--In order to receive
Federal financial assistance under this section, the Governor
of a State shall--
``(A) designate a single State agency to be
responsible for the management of the portions of the
workforce and labor market information system described
in subsection (a) that comprise a statewide workforce
and labor market information system and for the State's
participation in the development of the annual plan;
and
``(B) establish a process for the oversight of such
system.
``(2) Duties.--In order to receive Federal financial
assistance under this section, the State agency shall--
``(A) consult with State and local employers,
participants, and local workforce investment boards
about the labor market relevance of the data to be
collected and disseminated through the statewide
workforce and labor market information system;
``(B) consult with State educational agencies and
local educational agencies concerning the provision of
employment statistics in order to meet the needs of
secondary school and postsecondary school students who
seek such information;
``(C) collect and disseminate for the system, on
behalf of the State and localities in the State, the
information and data described in subparagraphs (A) and
(B) of subsection (a)(1);
``(D) maintain and continuously improve the
statewide workforce and labor market information system
in accordance with this section;
``(E) perform contract and grant responsibilities
for data collection, analysis, and dissemination for
such system;
``(F) conduct such other data collection, analysis,
and dissemination activities as will ensure an
effective statewide workforce and labor market
information system;
``(G) actively seek the participation of other
State and local agencies in data collection, analysis,
and dissemination activities in order to ensure
complementarity, compatibility, and usefulness of data;
``(H) participate in the development of the annual
plan described in subsection (c); and
``(I) utilize the quarterly records described in
section 136(f)(2) of the Workforce Investment Act of
1998 to assist the State and other States in measuring
State progress on State performance measures.
``(3) Rule of construction.--Nothing in this section shall
be construed as limiting the ability of a State agency to
conduct additional data collection, analysis, and dissemination
activities with State funds or with Federal funds from sources
other than this section.
``(f) Nonduplication Requirement.--None of the functions and
activities carried out pursuant to this section shall duplicate the
functions and activities carried out under the Carl D. Perkins
Vocational and Applied Technology Education Act (20 U.S.C. 2301 et
seq.).
``(g) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as may be necessary
for each of the fiscal years 2004 through 2009.
``(h) Definition.--In this section, the term `local area' means the
smallest geographical area for which data can be produced with
statistical reliability.''.
TITLE IV--AMENDMENTS TO THE REHABILITATION ACT OF 1973
SEC. 401. CHAIRPERSON.
Section 705(b)(5) of the Rehabilitation Act of 1973 (29 U.S.C.
796d(b)(5)) is amended to read as follows:
``(5) Chairperson.--The Council shall select a chairperson
from among the voting membership of the Council.''.
SEC. 402. REHABILITATION SERVICES ADMINISTRATION.
Section 3(a) of the Rehabilitation Act of 1973 (29 U.S.C. 702(a))
is amended--
(1) by striking ``Office of the Secretary'' and inserting
``Department of Education'';
(2) by striking ``President by and with the advice and
consent of the Senate'' and inserting ``Secretary, except that
the current Commissioner appointed under the authority existing
on the day prior to the date of enactment of this Act may
continue to serve in the former capacity''; and
(3) by striking ``, and the Commissioner shall be the
principal officer,''.
SEC. 403. DIRECTOR.
(a) In General.--The Rehabilitation Act of 1973 (29 U.S.C. 701 et
seq.) is amended by striking ``Commissioner'' each place it appears,
except in section 21, and inserting ``Director''.
(b) Exception.--Section 21 of the Rehabilitation Act of 1973 (29
U.S.C. 718) is amended--
(1) in subsection (b)(1)--
(A) by striking ``Commissioner'' the first place it
appears and inserting ``Director of the Rehabilitation
Services Administration''; and
(B) by striking ``(referred to in this subsection
as the `Director')''; and
(2) by striking ``Commissioner and the Director'' each
place it appears and inserting ``both such Directors''.
SEC. 404. STATE GOALS.
Section 101(a) of the Rehabilitation Act of 1973 (29 U.S.C. 721(a))
is amended--
(1) in paragraph (11)(D)(i) by inserting ``, which may be
provided using alternative means of meeting participation (such
as video conferences and conference calls)'' before the
semicolon; and
(2) in paragraph (15)--
(A) in subparagraph (A), by redesignating clauses
(ii) and (iii) as clauses (iii) and (iv), respectively,
and inserting after clause (i) the following:
``(ii) include an assessment of the
transition services provided under this Act,
and coordinated with transition services under
the Individuals with Disabilities Education
Act, as to those services meeting the needs of
individuals with disabilities.''; and
(B) by amending subparagraph (D)(i) to read as
follows:
``(i) the methods to be used to expand and
improve the services to individuals with
disabilities including--
``(I) how a broad range of
assistive technology services and
assistive technology devices will be
provided to such individuals at each
stage of the rehabilitative process and
how such services and devices will be
provided to such individuals on a
statewide basis; and
``(II) how transition services will
be better coordinated with those
services under the Individuals with
Disabilities Education Act in order to
improve transition services for
individuals with disabilities served
under this Act;''.
SEC. 405. AUTHORIZATIONS OF APPROPRIATIONS.
The Rehabilitation Act of 1973 is further amended--
(1) in section 100(b)(1) by striking ``fiscal years 1999
through 2003'' and inserting ``fiscal years 2004 through
2009'';
(2) in section 100(d)(1)(B) by striking ``fiscal year
2003'' and inserting ``fiscal year 2009'';
(3) in section 110(c) by amending paragraph (2) to read as
follows:
``(2) The sum referred to in paragraph (1) shall be, as
determined by the Secretary, not less than 1 percent and not
more than 1.5 percent of the amount referred to in paragraph
(1) for each of fiscal years 2003 through 2009.'';
(4) in section 112(h) by striking ``fiscal years 1999
through 2003'' and inserting ``fiscal years 2004 through
2009'';
(5) in section 201(a) by striking ``fiscal years 1999
through 2003'' each place it appears and inserting ``fiscal
years 2004 through 2009'';
(6) in section 302(i) by striking ``fiscal years 1999
through 2003'' and inserting ``fiscal years 2004 through
2009'';
(7) in section 303(e) by striking ``fiscal years 1999
through 2003'' and inserting ``fiscal years 2004 through
2009'';
(8) in section 304(b) by striking ``fiscal years 1999
through 2003'' and inserting ``fiscal years 2004 through
2009'';
(9) in section 305(b) by striking ``fiscal years 1999
through 2003'' and insert ``fiscal years 2004 through 2009'';
(10) in section 405 by striking ``fiscal years 1999 through
2003'' and inserting ``fiscal years 2004 through 2009'';
(11) in section 502(j) by striking ``fiscal years 1999
through 2003'' and inserting ``fiscal years 2004 through
2009'';
(12) in section 509(l) by striking ``fiscal years 1999
through 2003'' and inserting ``fiscal years 2004 through
2009'';
(13) in section 612 by striking ``fiscal years 1999 through
2003'' and inserting ``fiscal years 2004 through 2009'';
(14) in section 628 by striking ``fiscal years 1999 through
2003'' and inserting ``fiscal years 2004 through 2009'';
(15) in section 714 by striking ``fiscal years 1999 through
2003'' and inserting ``fiscal years 2004 through 2009'';
(16) in section 727 by striking ``fiscal years 1999 through
2003'' and inserting ``fiscal years 2004 through 2009''; and
(17) in section 753 by striking ``fiscal years 1999 through
2003'' and inserting ``fiscal years 2004 through 2009''.
SEC. 406. HELEN KELLER NATIONAL CENTER ACT.
(a) General Authorization of Appropriations.--The first sentence of
section 205(a) of the Helen Keller National Center Act (29 U.S.C.
1904(a)) is amended by striking ``1999 through 2003'' and inserting
``2004 through 2009''.
(b) Helen Keller National Center Federal Endowment Fund.--The first
sentence of section 208(h) of such Act (29 U.S.C. 1907(h)) is amended
by striking ``1999 through 2003'' and inserting ``2004 through 2009''.
TITLE V--TRANSITION AND EFFECTIVE DATE
SEC. 501. TRANSITION PROVISIONS.
The Secretary of Labor shall take such actions as the Secretary
determines to be appropriate to provide for the orderly implementation
of this Act.
SEC. 502. EFFECTIVE DATE.
Except as otherwise provided in this Act, this Act and the
amendments made by this Act, shall take effect on the date of enactment
of this Act.
Passed the House of Representatives May 8, 2003.
Attest:
Clerk.