[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 9 Introduced in Senate (IS)]






109th CONGRESS
  1st Session
                                  S. 9

To improve American competitiveness in the global economy by improving 
  and strengthening Federal education and training programs, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 24, 2005

  Mr. Enzi (for himself, Mr. Frist, and Mr. McConnell) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL


 
To improve American competitiveness in the global economy by improving 
  and strengthening Federal education and training programs, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Lifetime of 
Education Opportunities Act of 2005''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Table of contents.
Sec. 2. Findings.
Sec. 3. Purpose.
                   TITLE I--EARLY CHILDHOOD PROGRAMS

Sec. 101. Sense of the Senate regarding Head Start.
              TITLE II--ELEMENTARY AND SECONDARY PROGRAMS

                 Subtitle A--Elementary School Programs

Sec. 211. Sense of the Senate regarding elementary and secondary 
                            education.
                 Subtitle B--Secondary School Programs

Sec. 221. Sense of the Senate regarding career and technical education.
Sec. 222. Sense of the Senate regarding mathematics and science 
                            education.
                     TITLE III--TEACHER PREPARATION

                  Subtitle A--Teacher Loan Forgiveness

Sec. 311. Sense of the Senate regarding loan forgiveness for teachers.
                     Subtitle B--Preparing Teachers

Sec. 321. Sense of the Senate regarding teacher preparation.
Sec. 322. Teacher quality enhancement grants for States and 
                            partnerships.
                         Subtitle C--Merit Pay

Sec. 331. Sense of the Senate regarding teacher incentives.
                Subtitle D--Classroom Expense Deduction

Sec. 341. Sense of the Senate regarding teacher tax credits.
     TITLE IV--HIGHER EDUCATION AND LIFELONG LEARNING OPPORTUNITIES

                      Subtitle A--Higher Education

Sec. 411. Sense of the Senate regarding higher education and lifelong 
                            learning opportunities.
Sec. 412. Sense of the Senate regarding minority serving institutions.
        Subtitle B--Workforce Investment Act Amendments of 2005

Sec. 421. Short title.
Sec. 422. References.
  Chapter 1--Amendments to Title I of the Workforce Investment Act of 
                       subchapter a--definitions
Sec. subchapter b--statewide and local workforce investment systems
Sec. 432. Purpose.
Sec. 432A. State workforce investment boards.
Sec. 432B. State plan.
Sec. 432C. Local workforce investment areas.
Sec. 432D. Local workforce investment boards.
Sec. 432E. Local plan.
Sec. 432F. Establishment of one-stop delivery systems.
Sec. 432G. Eligible providers of training services.
Sec. 432H. Eligible providers of youth activities.
Sec. 432I. Youth activities.
Sec. 432J. Adult and dislocated worker employment and training 
                            activities.
Sec. 432K. Performance accountability system.
Sec. 432L. Authorizationsubchapter c--job corps
Sec. 433. Job Corps.subchapter d--national programs
Sec. 434. Native American programs.
Sec. 434A. Migrant and seasonal farmworker programs.
Sec. 434B. Veterans' workforce investment programs.
Sec. 434C. Youth challenge grants.
Sec. 434D. Technical assistance.
Sec. 434E. Demonstration, pilot, multiservice, research, and multistate 
                            projects.
Sec. 434F. National dislocated worker grants.
Sec. 434G. Authorizatisubchapter e--administrationional activities.
Sec. 435. Requirements and restrictions.
Sec. 435A. Reports.
Sec. 435B. Administrative provisions.
Sec. 435C. Use of certain real property.
Sec. 435D. Table of csubchapter f--incentive grants
Sec. 436. Incentivsubchapter g--conforming amendments
Sec. 437. Conforming amendments.
  Chapter 2--Amendments to the Adult Education and Family Literacy Act

Sec. 441. Short title; purpose.
Sec. 441A. Definitions.
Sec. 441B. Authorization of appropriations.
Sec. 441C. Home schools.
Sec. 441D. Reservation of funds; grants to eligible agencies; 
                            allotments.
Sec. 441E. Performance accountability system.
Sec. 441F. State administration.
Sec. 441G. State distribution of funds; matching requirement.
Sec. 441H. State leadership activities.
Sec. 441I. State plan.
Sec. 441J. Programs for corrections education and other 
                            institutionalized individuals.
Sec. 441K. Grants and contracts for eligible providers.
Sec. 441L. Local application.
Sec. 441M. Local administrative cost limits.
Sec. 441N. Administrative provisions.
Sec. 441O. National Institute for Literacy.
Sec. 441P. National leadership activities.
Sec. 441Q. Integrated English literacy and civics education.
Sec. 441R. Transition.
            Chapter 3--Amendments to Other Provisions of Law

Sec. 451. Wagner-Peyser Act.
                Chapter 4--Rehabilitation Act Amendments

Sec. 461. Short title.
Sec. 461A. Technical amendments to table of contents.
Sec. 461B. Purpose.
Sec. 461C. Definitions.
Sec. 461D. Administration of the Act.
Sec. 461E. Csubchapter a--vocational rehabilitation services
Sec. 462. Declaration of policy; authorization of appropriations.
Sec. 462A. State plans.
Sec. 462B. Eligibility and individualized plan for employment.
Sec. 462C. Vocational rehabilitation services.
Sec. 462D. State rehabilitation council.
Sec. 462E. Evaluation standards and performance indicators.
Sec. 462F. State allotments.
Sec. 462G. Client assistance program.
Sec. 462H. Incentive grants.
Sec. 462I. Vocational rehabilitation services grants.
Sec. 462J. GAO stusubchapter b--research and training
Sec. 463. Authorization of appropriations.
Sec. 463A. National Institute on Disability and Rehabilitation 
                            Research.
Sec. 464B. Research and other covered activities.
Sec.subchapter c--professional development and special projects and 
                             demonstrations
Sec. 464. Training.
Sec. 464A. Demonstration and training programs.
Sec. 464B. Migrant and seasonal farmworkers.
Sec. 464C. Recsubchapter d--national council on disability
Sec. 465. Authorizasubchapter e--rights and advocacy
Sec. 466. Architectural and Transportation Barriers Compliance Board.
Sec. 4subchapter f--employment opportunities for individuals with 
                              disabilities
Sec. 467. Projects with industry authorization of appropriations.
Sec. 467A. Services for individuals with significant disabilities 
 subchapter g--independent living services and centers for independent 
                                 living
Sec. 468. State plan.
Sec. 468A. Statewide Independent Living Council.
Sec. 468B. Independent living services authorization of appropriations.
Sec. 468C. Program authorization.
Sec. 468D. Grants to centers for independent living in States in which 
                            Federal funding exceeds State funding.
Sec. 468E. Grants to centers for independent living in States in which 
                            State funding equals or exceeds Federal 
                            funding.
Sec. 468F. Standards and assurances for centers for independent living.
Sec. 468G. Centers for independent living authorization of 
                            appropriations.
Sec. 468H. Independent living services for older individuals who are 
                            blind.
Sec. 468I. Program of grants.
Sec. 468J. Independent living services for older individuals who are 
                      subchapter h--miscellaneousf appropriations.
Sec. 469. Helen Keller National Center Act.
                Chapter 5--Transition And Effective Date

Sec. 471. Transition provisions.
Sec. 471A. Effective date.
               TITLE V--MAKING EDUCATION MORE AFFORDABLE

Sec. 501. Sense of the Senate regarding making education more 
                            affordable.
Sec. 502. Affordable education provisions made permanent.
Sec. 503. Credit for education, tuition, and transportation expenses of 
                            students assigned to schools identified for 
                            school improvement.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) Most children enter Head Start at a great disadvantage, 
        with early literacy and mathematics skills substantially below 
        national averages. The typical Head Start child enters at 
        approximately the 16th percentile in vocabulary and early 
        writing skills, at approximately the 31st percentile in letter 
        recognition, and at approximately the 21st percentile in early 
        mathematics, when compared to the full spectrum of American 
        children in the same age range.
            (2) Despite gains in vocabulary and early writing skills, 
        Head Start children still trail in these measures compared to 
        national averages.
            (3) Community-based organizations, including faith-based 
        organizations, have historically had a long and distinguished 
        record of meeting, addressing, and responding to the needs of 
        the poor through a variety of health, educational, and social 
        service programs.
            (4) For many parents in rural and urban areas, public 
        school choice provided for under the amendments made by the No 
        Child Left Behind Act of 2001 is not a meaningful option due to 
        physical proximity and capacity constraints.
            (5) American 15-year-olds performed below the international 
        average in mathematics literacy and problem-solving, according 
        to the 2003 Program for International Student Assessment 
        (PISA).
            (6) American students scored below the international 
        average in science literacy in 2003.
            (7) American students' 12th grader performance in reading 
        has declined. The number of 12th graders scoring below basic 
        (12th graders who failed to demonstrate any partial mastery of 
        12th grade reading skills) increased over time, and now over a 
        quarter of 12th graders cannot read at grade level. Less than 
        36 percent of 12th graders are even considered proficient 
        readers.
            (8) Of all students entering 9th grade four years ago, only 
        68 percent are expected to graduate this year, and for minority 
        students this number hovers around 50 percent.
            (9) Individuals who did not finish high school comprise the 
        only group of Americans that consistently lost jobs over the 
        past decade. High school dropouts have an unemployment rate 
        nearly twice the level of high school graduates.
            (10) Nothing is more important to a child's success in 
        school than a well prepared teacher who has a strong command of 
        the subject matter the teacher is teaching.
            (11) Schools across the Nation are experiencing difficulty 
        in recruiting and retaining qualified mathematics, science, and 
        special education teachers.
            (12) Attracting qualified mathematics, science, and special 
        education teachers to the teaching profession and retaining the 
        teachers in the profession is vital to America's economic 
        competitiveness and national security, and critical to ensuring 
        that no child is left behind. America's competitiveness is 
        dependent on the skills of its workforce.
            (13) Seventy-three percent of all postsecondary education 
        students are non-traditional, and are mostly working adults.
            (14) College graduates earn 100 percent more during their 
        lifetime than high school graduates. This rate has doubled in 
        less than 20 years.
            (15) Jobs requiring a bachelor's degree will grow by 25 
        percent by the year 2008, while those requiring an associate 
        degree will grow by nearly one-third.
            (16) Eighty-five percent of today's jobs are classified as 
        skilled.
            (17) Two-thirds of the 7,000,000 worker gap in 2010 will be 
        a skilled worker shortage.
            (18) Our future competitiveness depends on our workforce, 
        and the quality of our workforce depends on education.

SEC. 3. PURPOSE.

    It is the purpose of this Act to improve American competitiveness 
in the global economy by improving and strengthening Federal education 
and training programs, through--
            (1) setting high expectations and raising achievement for 
        all students, regardless of their background;
            (2) improving accountability for results;
            (3) providing flexibility for States to manage Federal 
        program dollars most effectively; and
            (4) supporting a lifetime of learning opportunities for 
        students at all stages in life.

                   TITLE I--EARLY CHILDHOOD PROGRAMS

SEC. 101. SENSE OF THE SENATE REGARDING HEAD START.

    It is the sense of the Senate that as the Senate considers the 
reauthorization of the Head Start Act (42 U.S.C. 9831 et seq.), the 
Senate should explore efforts to--
            (1) establish new educational standards that ensure 
        children enrolled in Head Start--
                    (A) develop and demonstrate a variety of early 
                learning skills; and
                    (B) are able to compete effectively with other 
                children entering kindergarten programs;
            (2) encourage the coordination and alignment of Head Start 
        with other publicly funded early childhood programs; and
            (3) support efforts to improve fiscal management and 
        accountability.

              TITLE II--ELEMENTARY AND SECONDARY PROGRAMS

                 Subtitle A--Elementary School Programs

SEC. 211. SENSE OF THE SENATE REGARDING ELEMENTARY AND SECONDARY 
              EDUCATION.

    It is the sense of the Senate that--
            (1) in keeping with the spirit of the No Child Left Behind 
        Act of 2001, supplemental services should be made available 
        earlier than required by the No Child Left Behind Act of 2001 
        to those parents who cannot access public school choice;
            (2) in rural areas where a variety of supplemental services 
        may not be available, distance education should be encouraged; 
        and
            (3) the Federal Government should consider encouraging 
        school districts to offer supplemental services after a school 
        has entered its second year of school improvement under title I 
        of the Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 6301 et seq.).

                 Subtitle B--Secondary School Programs

SEC. 221. SENSE OF THE SENATE REGARDING CAREER AND TECHNICAL EDUCATION.

    It is the sense of the Senate that as the Senate considers the 
reauthorization of the Carl D. Perkins Vocational and Technical 
Education Act of 1998 (20 U.S.C. 2301 et seq.), the Senate should 
explore efforts to--
            (1) strengthen the academic focus of career and technical 
        education programs in high school and college;
            (2) improve coordination between secondary and 
        postsecondary career and technical education programs, 
        including efforts to allow students to attend dual-enrollment 
        programs to earn college credit;
            (3) support partnerships among secondary schools, 
        postsecondary institutions, area career technical centers, 
        business and industry, professional associations, and 
        intermediaries;
            (4) integrate career and technical education courses with 
        rigorous and challenging academic courses;
            (5) develop a highly skilled workforce needed to keep 
        America competitive in the global economy in conjunction with 
        other Federal education and training programs, including 
        workforce investment programs, that provide lifelong learning 
        for the workforce of today and tomorrow; and
            (6) support the continued integration of technology into 
        career and technical education programs.

SEC. 222. SENSE OF THE SENATE REGARDING MATHEMATICS AND SCIENCE 
              EDUCATION.

    It is the sense of the Senate that--
            (1) better mathematics, science and reading programs in 
        high school are needed to ensure that every student graduates 
        with the skills necessary to succeed in postsecondary education 
        and a globally competitive workforce; and
            (2) more emphasis should be provided on ensuring that low-
        income schools offer Advanced Placement and International 
        Baccalaureate courses.

                     TITLE III--TEACHER PREPARATION

                  Subtitle A--Teacher Loan Forgiveness

SEC. 311. SENSE OF THE SENATE REGARDING LOAN FORGIVENESS FOR TEACHERS.

    It is the sense of the Senate that Congress should support the 
recruitment and retention of highly qualified teachers by encouraging 
the use of recently expanded loan forgiveness for mathematics, science, 
and special education teachers who agree to teach in a high need area 
for 5 years, which should help ensure that each child receives a 
quality education.

                     Subtitle B--Preparing Teachers

SEC. 321. SENSE OF THE SENATE REGARDING TEACHER PREPARATION.

    It is the sense of the Senate that in order to ensure a quality 
teaching force, institutions of higher education should be held 
accountable for producing highly qualified teachers for every 
classroom.

SEC. 322. TEACHER QUALITY ENHANCEMENT GRANTS FOR STATES AND 
              PARTNERSHIPS.

    Part A of title II of the Higher Education Act of 1965 (20 U.S.C. 
1021 et seq.) is amended to read as follows:

      ``PART A--TEACHER QUALITY ENHANCEMENT GRANTS FOR STATES AND 
                              PARTNERSHIPS

``SEC. 201. PURPOSES; DEFINITIONS.

    ``(a) Purposes.--The purposes of this part are to--
            ``(1) improve student achievement;
            ``(2) improve the quality of the current and future 
        teaching force by improving the preparation of prospective 
        teachers and enhancing professional development activities;
            ``(3) hold institutions of higher education accountable for 
        preparing highly qualified teachers; and
            ``(4) recruit qualified individuals, including minorities 
        and individuals from other occupations, into the teaching 
        force.
    ``(b) Definitions.--In this part:
            ``(1) Arts and sciences.--The term `arts and sciences' 
        means--
                    ``(A) when referring to an organizational unit of 
                an institution of higher education, any academic unit 
                that offers 1 or more academic majors in disciplines or 
                content areas corresponding to the academic subject 
                areas in which teachers provide instruction; and
                    ``(B) when referring to a specific academic subject 
                area, the disciplines or content areas in which 
                academic majors are offered by the arts and science 
                organizational unit.
            ``(2) Educational service agency.--The term `educational 
        service agency' has the meaning given such term in section 9101 
        of the Elementary and Secondary Education Act of 1965.
            ``(3) Exemplary teacher.--The term `exemplary teacher' has 
        the meaning given such term in section 9101 of the Elementary 
        and Secondary Education Act of 1965.
            ``(4) Highly qualified.--The term `highly qualified' has 
        the meaning given such term in section 9101 of the Elementary 
        and Secondary Education Act of 1965.
            ``(5) High-need local educational agency.--The term `high-
        need local educational agency' means a local educational 
        agency--
                    ``(A)(i) that serves not fewer than 10,000 children 
                from families with incomes below the poverty line;
                    ``(ii) for which not less than 20 percent of the 
                children served by the agency are from families with 
                incomes below the poverty line; or
                    ``(iii) with a total of less than 600 students in 
                average daily attendance at the schools that are served 
                by the agency and all of whose schools are designated 
                with a school locale code of 7 or 8, as determined by 
                the Secretary; and
                    ``(B)(i) for which there is a high percentage of 
                teachers not teaching in the academic subject areas or 
                grade levels in which the teachers were trained to 
                teach; or
                    ``(ii) for which there is a high percentage of 
                teachers with emergency, provisional, or temporary 
                certification or licensing.
            ``(6) Poverty line.--The term `poverty line' means the 
        poverty line (as defined by the Office of Management and 
        Budget, and revised annually in accordance with section 673(2) 
        of the Community Services Block Grant Act (42 U.S.C. 9902(2))) 
        applicable to a family of the size involved.
            ``(7) Professional development.--The term `professional 
        development' has the meaning given such term in section 9101 of 
        the Elementary and Secondary Education Act of 1965.
            ``(8) Scientifically based reading research.--The term 
        `scientifically based reading research' has the meaning given 
        such term in section 1208 of the Elementary and Secondary 
        Education Act of 1965.
            ``(9) Scientifically based research.--The term 
        `scientifically based research' has the meaning given such term 
        in section 9101 of the Elementary and Secondary Education Act 
        of 1965.
            ``(10) Teaching skills.--The term `teaching skills' means 
        the ability to--
                    ``(A) increase student achievement;
                    ``(B) effectively convey and explain academic 
                subject matter;
                    ``(C) employ strategies that--
                            ``(i) are based on scientifically based 
                        research;
                            ``(ii) are specific to academic subject 
                        matter; and
                            ``(iii) focus on identification and 
                        tailoring of academic instruction to students' 
                        specific learning needs, particularly students 
                        with disabilities, students with special 
                        learning needs (including students who are 
                        gifted and talented), and students with 
                        limited-English proficiency;
                    ``(D) conduct ongoing assessment of student 
                learning; and
                    ``(E) effectively manage a classroom.

``SEC. 202. STATE GRANTS.

    ``(a) In General.--From amounts made available under section 
209(a)(1) for a fiscal year, the Secretary is authorized to award 
grants under this section, on a competitive basis, to eligible States 
to enable the eligible States to carry out the activities described in 
subsection (d).
    ``(b) Eligible State.--
            ``(1) Definition.--In this part, the term `eligible State' 
        means--
                    ``(A) the Governor of a State; or
                    ``(B) in the case of a State for which the 
                constitution or law of such State designates another 
                individual, entity, or agency in the State to be 
                responsible for teacher certification and preparation 
                activity, such individual, entity, or agency.
            ``(2) Consultation.--The Governor or the individual, 
        entity, or agency designated under paragraph (1)(B) shall 
        consult with the Governor, State board of education, State 
        educational agency, or State agency for higher education, as 
        appropriate, with respect to the activities assisted under this 
        section.
            ``(3) Construction.--Nothing in this subsection shall be 
        construed to negate or supersede the legal authority under 
        State law of any State agency, State entity, or State public 
        official over programs that are under the jurisdiction of the 
        agency, entity, or official.
    ``(c) Application.--To be eligible to receive a grant under this 
section, an eligible State shall, at the time of the initial grant 
application, submit an application to the Secretary that--
            ``(1) meets the requirement of this section;
            ``(2) demonstrates that the eligible State is in full 
        compliance with sections 206(b) and 207 and, if applicable, 
        sections 207(a) and 208 of this Act as such sections were in 
        effect on the day before the date of enactment of the Higher 
        Education Amendments of 2004;
            ``(3) includes a description of how the eligible State 
        intends to use funds provided under this section;
            ``(4) includes measurable objectives for the use of the 
        funds provided under this section;
            ``(5) describes how funded activities will reduce 
        shortages, if any, of highly qualified teachers in low-income 
        urban and rural areas and in high-need academic subject areas, 
        and how such activities will be consistent with State, local, 
        and other education reform activities that promote student 
        academic achievement, including how funded activities will 
        support carrying out requirements of the eligible State under 
        sections 1111(h)(1)(C)(viii) and 1119 of the Elementary and 
        Secondary Education Act of 1965;
            ``(6) contains an assurance that the eligible State will 
        carry out each of the intended uses of grant funds described in 
        paragraph (3); and
            ``(7) contains such other information and assurances as the 
        Secretary may require.
    ``(d) Uses of Funds.--An eligible State that receives a grant under 
this section shall use the grant funds to reform teacher preparation 
requirements, to coordinate with State activities under section 2113(c) 
of the Elementary and Secondary Education Act of 1965, and to ensure 
that current and future teachers are highly qualified, by carrying out 
1 or more of the following activities:
            ``(1) Reforms.--Ensuring that all teacher preparation 
        programs in the State are preparing teachers to become highly 
        qualified, to understand scientifically based research and its 
        applicability, and to use technology effectively, including use 
        for instructional techniques to improve student academic 
        achievement, by assisting such programs--
                    ``(A) in retraining faculty;
                    ``(B) in designing (or redesigning) teacher 
                preparation programs so that such programs--
                            ``(i) are based on rigorous academic 
                        content and scientifically based research 
                        (including scientifically based reading 
                        research), and aligned with challenging State 
                        academic content standards; and
                            ``(ii) promote strong teaching skills; and
                    ``(C) in ensuring collaboration with departments, 
                programs, or units outside of the teacher preparation 
                program in all academic content areas to ensure a 
                successful combination of training in both teaching and 
                such content.
            ``(2) Certification or licensure requirements.--Reforming 
        teacher certification (including recertification) or licensing 
        requirements to ensure that--
                    ``(A) teachers have the academic content knowledge 
                and teaching skills in the academic subject areas that 
                the teachers teach that are necessary to help students 
                meet challenging State student academic achievement 
                standards; and
                    ``(B) such requirements are aligned with 
                challenging State academic content standards.
            ``(3) Alternatives to traditional preparation for teaching 
        and state certification.--Providing prospective teachers with 
        alternative routes to State certification and traditional 
        preparation to become highly qualified teachers through--
                    ``(A) innovative approaches that reduce unnecessary 
                barriers to State certification while producing highly 
                qualified teachers;
                    ``(B) programs that provide support to teachers 
                during their initial years in the profession; and
                    ``(C) alternative routes to State certification of 
                teachers for qualified individuals, including mid-
                career professionals from other occupations, former 
                military personnel, and recent college graduates with 
                records of academic distinction.
            ``(4) Innovative programs.--Planning and implementing 
        innovative programs to enhance the ability of institutions of 
        higher education, such as charter colleges of education or 
        university and local educational agency partnership schools, to 
        prepare highly qualified teachers that--
                    ``(A) permit flexibility in meeting State 
                requirements as long as graduates, during their initial 
                years in the profession, increase student academic 
                achievement;
                    ``(B) provide long-term data gathered from 
                teachers' performance over multiple years in the 
                classroom on their ability to increase student academic 
                achievement;
                    ``(C) ensure high-quality preparation of teachers 
                from underrepresented groups; and
                    ``(D) create performance measures that can be used 
                to document the effectiveness of innovative methods for 
                preparing highly qualified teachers.
            ``(5) Teacher recruitment and retention.--Undertaking 
        activities that develop and implement effective mechanisms to 
        ensure that local educational agencies and schools are able 
        effectively to recruit and retain highly qualified teachers, 
        including the following activities:
                    ``(A) Merit pay.--Developing, or assisting local 
                educational agencies in developing--
                            ``(i) merit-based performance systems that 
                        reward teachers who increase student academic 
                        achievement; and
                            ``(ii) strategies that provide differential 
                        and bonus pay in high-need local educational 
                        agencies to recruit and retain--
                                    ``(I) principals;
                                    ``(II) highly qualified teachers 
                                who teach in high-need academic subject 
                                areas, such as reading, mathematics, 
                                and science;
                                    ``(III) highly qualified teachers 
                                who teach in schools identified for 
                                school improvement under section 
                                1116(b) of the Elementary and Secondary 
                                Education Act of 1965;
                                    ``(IV) special education teachers;
                                    ``(V) teachers specializing in 
                                teaching limited-English proficient 
                                children; and
                                    ``(VI) highly qualified teachers in 
                                low-income urban and rural schools or 
                                districts.
                    ``(B) Teacher advancement.--Developing, or 
                assisting local educational agencies in developing, 
                teacher advancement and retention initiatives that 
                promote professional growth and emphasize multiple 
                career paths (such as paths to becoming a highly 
                qualified mentor teacher or exemplary teacher) and pay 
                differentiation.
            ``(6) Teacher scholarships and support.--Providing--
                    ``(A) scholarships to help students, such as 
                individuals who have been accepted by, or who are 
                enrolled in, a program of undergraduate education at an 
                institution of higher education, pay the costs of 
                tuition, room, board, and other expenses of completing 
                a teacher preparation program, provided that--
                            ``(i) the Secretary shall establish such 
                        requirements as the Secretary determines 
                        necessary to ensure that recipients of 
                        scholarships under this section who complete 
                        teacher preparation programs--
                                    ``(I) subsequently teach in a high-
                                need local educational agency for a 
                                period of time equivalent to 1 year, 
                                increased by the period for which the 
                                recipient received scholarship 
                                assistance; or
                                    ``(II) repay the amount of the 
                                scholarship;
                            ``(ii) the Secretary shall use any such 
                        repayments to carry out additional activities 
                        under this paragraph; and
                            ``(iii) the eligible State shall provide an 
                        assurance that it will recruit minority 
                        students to become highly qualified teachers;
                    ``(B) support services, if needed, to enable 
                scholarship recipients to complete postsecondary 
                education programs, or to move from a career outside of 
                the field of education into a teaching career; and
                    ``(C) follow-up services to former scholarship 
                recipients during their initial years of teaching.
            ``(7) Teacher removal.--Developing and implementing 
        effective mechanisms to ensure that local educational agencies 
        and schools are able to remove expeditiously incompetent or 
        unqualified teachers consistent with procedures to ensure due 
        process for the teachers.
            ``(8) Teacher effectiveness.--Developing--
                    ``(A) systems to measure the effectiveness of 
                teacher preparation programs and professional 
                development programs; and
                    ``(B) strategies to document gains in student 
                academic achievement or increases in teacher mastery of 
                the academic subject matter the teachers teach as a 
                result of such programs.
            ``(9) Preschool teachers.--Developing strategies to improve 
        and expand teacher preparation programs for preschool teachers, 
        including training in the science of language acquisition and 
        the development of fundamental early literacy skills.
            ``(10) Professional development.--Developing and enhancing 
        high-quality professional development, instructional, and 
        training materials for kindergarten through grade 12 teachers 
        and expanding the access of such information through the use of 
        technology.
            ``(11) Technology.--Assisting teachers to use technology 
        effectively, including use for instructional techniques and the 
        collection, management, and analysis of data to improve 
        teaching, learning, and decisionmaking for the purpose of 
        increasing student academic achievement.
            ``(12) Foreign language instruction.--Expanding access to 
        programs of instruction in foreign languages, including less 
        commonly taught languages, through the use of technology, such 
        as computer-assisted instruction or distance learning, when 
        appropriate.
            ``(13) Technical assistance.--Providing technical 
        assistance to low-performing programs of teacher preparation 
        within institutions of higher education identified under 
        section 207(a).
            ``(14) Evaluation support.--Performing data collection, 
        evaluation, and reporting to meet the requirements of 
        subsection (e).
    ``(e) Evaluation.--
            ``(1) Annual evaluation.--An eligible State that receives a 
        grant under this section shall evaluate annually the 
        effectiveness of teacher preparation programs and professional 
        development activities within the State, carried out using 
        funds provided under this section. To the extent practicable, 
        such evaluation shall examine--
                    ``(A) gains in student achievement as a result of 
                the programs and activities;
                    ``(B) teachers' contribution to improving student 
                academic achievement, as measured by State academic 
                assessments required under section 1111(b)(3) of the 
                Elementary and Secondary Education Act of 1965; and
                    ``(C) teacher mastery of the academic subject 
                matter the teachers teach, as measured by pre- and 
                post-participation tests of teacher knowledge, as 
                appropriate.
            ``(2) Public reporting.--The eligible State shall make the 
        information described in paragraph (1) widely available through 
        public means, such as posting on the Internet, distribution to 
        the media, and distribution through public agencies.
    ``(f) Supplement, Not Supplant.--Funds made available under this 
section shall be used to supplement, and not supplant, other Federal, 
State, and local funds that would otherwise be expended to carry out 
activities under this section.

``SEC. 203. PARTNERSHIP GRANTS.

    ``(a) Grants.--From amounts made available under section 209(a)(2) 
for a fiscal year, the Secretary is authorized to award grants under 
this section, on a competitive basis, to eligible partnerships to 
enable the eligible partnerships to carry out the activities described 
in subsections (e) and (f).
    ``(b) Definitions.--
            ``(1) Eligible partnership.--In this part, the term 
        `eligible partnership' means an entity that--
                    ``(A) includes--
                            ``(i) a partner institution;
                            ``(ii) a school of arts and sciences;
                            ``(iii) a high-need local educational 
                        agency; and
                            ``(iv) a public or private educational 
                        organization; and
                    ``(B) may include a Governor, State educational 
                agency, the State board of education, the State agency 
                for higher education, an institution of higher 
                education not described in subparagraph (A), a public 
                charter school, a public or private elementary school 
                or secondary school, a public or private nonprofit 
                educational organization, a business, a science-, 
                mathematics-, or technology-oriented entity, a faith-
                based or community organization, a prekindergarten 
                program, a teacher organization, an educational service 
                agency, a consortium of local educational agencies, or 
                a nonprofit telecommunications entity.
            ``(2) Partner institution.--In this section, the term 
        `partner institution' means an institution of higher education, 
        including a community college, the teacher preparation program 
        of which demonstrates that--
                    ``(A)(i) its students exhibit strong performance on 
                State-determined qualifying assessments for new 
                teachers by passing not less than 80 percent of all 
                such assessments; or
                    ``(ii) it is ranked among the highest-performing 
                teacher preparation programs in the State, as 
                determined by the State--
                            ``(I) using criteria consistent with the 
                        requirements for the State report card under 
                        section 206(b); and
                            ``(II) using the State report card on 
                        teacher preparation required under section 
                        206(b); and
                    ``(B) it requires all the students of the program 
                to participate in intensive clinical experience, to 
                meet high academic standards, and--
                            ``(i) in the case of secondary school 
                        candidates, to successfully complete--
                                    ``(I) a major or its equivalent in 
                                coursework in the academic subject area 
                                in which the candidate intends to 
                                teach; or
                                    ``(II) a related major in the 
                                academic subject area in which the 
                                candidate intends to teach; and
                            ``(ii) in the case of elementary school 
                        candidates, to successfully complete--
                                    ``(I) an academic major or its 
                                equivalent in coursework in the arts 
                                and sciences; or
                                    ``(II) a major in elementary 
                                education with a significant amount of 
                                coursework in the arts and sciences.
    ``(c) Application.--Each eligible partnership desiring a grant 
under this section shall submit an application to the Secretary at such 
time, in such manner, and accompanied by such information as the 
Secretary may require. Each such application shall--
            ``(1) contain a needs assessment of all the partners with 
        respect to teaching and learning and a description of how the 
        eligible partnership will coordinate with other teacher 
        preparation or professional development programs, and how the 
        activities of the eligible partnership will be consistent with 
        State, local, and other education reform activities that 
        promote student achievement;
            ``(2) contain a resource assessment that describes the 
        resources available to the eligible partnership, the intended 
        use of the grant funds, including a description of how the 
        grant funds will be fairly distributed, and the commitment of 
        the resources of the eligible partnership to the activities 
        assisted under this part, including financial support, faculty 
        participation, time commitments, and continuation of the 
        activities when the grant ends;
            ``(3) contain a description of--
                    ``(A) how the eligible partnership will meet the 
                purposes of this part;
                    ``(B) how the eligible partnership will carry out 
                the activities required under subsection (e) and any 
                permissible activities under subsection (f);
                    ``(C) the eligible partnership's evaluation plan 
                pursuant to section 205(b);
                    ``(D) how faculty of the teacher preparation 
                program at the partner institution will serve, over the 
                term of the grant, with highly qualified teachers in 
                the classrooms of the high-need local educational 
                agency included in the eligible partnership;
                    ``(E) how the eligible partnership will ensure that 
                teachers, principals, and superintendents in private 
                elementary schools and private secondary schools 
                located in the geographic areas served by an eligible 
                partnership under this section will participate 
                equitably, as required under subsection (i);
                    ``(F) how the eligible partnership will ensure that 
                the partner institution's clinical program component 
                includes close supervision of student teachers by 
                faculty of the teacher preparation program and mentor 
                teachers;
                    ``(G) how the eligible partnership will design and 
                implement an induction program to support all new 
                teachers during their initial years of teaching that 
                includes mentors who are trained and compensated by the 
                eligible partnership for their work with new teachers; 
                and
                    ``(H) how the eligible partnership will collect, 
                analyze, and use data on the retention of all teachers 
                in schools located in the geographic areas served by 
                the eligible partnership to evaluate the effectiveness 
                of its teacher support system; and
            ``(4) contain an assurance that the eligible partnership 
        will carry out each of the intended uses of grant funds 
        described in paragraph (2).
    ``(d) Consultation.--
            ``(1) In general.--Members of an eligible partnership that 
        receives a grant under this section shall engage in regular 
        consultation throughout the development and implementation of 
        programs and activities under this section.
            ``(2) Regular communication.--To ensure timely and 
        meaningful consultation, regular communication shall occur 
        among all members of the eligible partnership, including the 
        local educational agency. Such communication shall continue 
        throughout implementation of the grant and assessment of 
        programs and activities under this section.
            ``(3) Written affirmation.--A written affirmation signed by 
        all members shall be submitted to the Secretary before the 
        Secretary may approve changes in grant activities.
    ``(e) Required Uses of Funds.--An eligible partnership that 
receives a grant under this section shall use the grant funds to carry 
out the following activities:
            ``(1) Reforms.--Implementing reforms within teacher 
        preparation programs to ensure that such programs are preparing 
        teachers to become highly qualified, to understand 
        scientifically based research and its applicability, and to use 
        technology effectively, including use for instructional 
        techniques to improve student academic achievement, by--
                    ``(A) retraining faculty;
                    ``(B) designing (or redesigning) teacher 
                preparation programs so that such programs--
                            ``(i) are based on rigorous academic 
                        content and scientifically based research 
                        (including scientifically based reading 
                        research), and aligned with challenging State 
                        student academic content standards; and
                            ``(ii) promote strong teaching skills; and
                    ``(C) ensuring collaboration with departments, 
                programs, or units outside of the teacher preparation 
                program in all content areas to ensure a successful 
                combination of training in both teaching and such 
                content.
            ``(2) Clinical experience and interaction.--Improving 
        sustained and high-quality preservice clinical experience, 
        including the mentoring of prospective teachers by veteran 
        teachers, and substantially increasing interaction between 
        faculty at institutions of higher education and new and 
        experienced teachers, principals, and other administrators at 
        elementary schools or secondary schools, and providing support, 
        including preparation time and release time, for such 
        interaction.
            ``(3) Professional development.--Creating, or assisting 
        local educational agencies in creating, opportunities for 
        enhanced and ongoing professional development that improves the 
        academic content knowledge of teachers in the academic subject 
        areas in which the teachers are certified to teach or in which 
        the teachers are working toward certification to teach, and 
        that promotes strong teaching skills.
    ``(f) Allowable Uses of Funds.--An eligible partnership that 
receives a grant under this section may use such funds to carry out the 
following activities:
            ``(1) Alternatives to traditional teacher preparation and 
        state certification.--The activity described in section 
        202(d)(3).
            ``(2) Dissemination and coordination.--Broadly 
        disseminating information on effective practices used by the 
        eligible partnership, and coordinating with the activities of 
        the Governor, State board of education, State higher education 
        agency, and State educational agency, as appropriate.
            ``(3) Managerial and leadership skills.--Developing and 
        implementing proven mechanisms to provide principals and 
        superintendents with effective managerial and leadership skills 
        that result in increased student achievement.
            ``(4) Teacher scholarships and support.--Providing--
                    ``(A) scholarships to help students, such as 
                individuals who have been accepted by, or who are 
                enrolled in, a program of undergraduate education at an 
                institution of higher education, pay the costs of 
                tuition, room, board, and other expenses of completing 
                a teacher preparation program, whereby--
                            ``(i) the Secretary shall establish such 
                        requirements as the Secretary determines 
                        necessary to ensure that recipients of 
                        scholarships under this section who complete 
                        teacher preparation programs--
                                    ``(I) subsequently teach in a high-
                                need local educational agency for a 
                                period of time equivalent to 1 year, 
                                increased by the period for which the 
                                recipient received scholarship 
                                assistance; or
                                    ``(II) repay the amount of the 
                                scholarship;
                            ``(ii) the Secretary shall use any such 
                        repayments to carry out additional activities 
                        under this paragraph; and
                            ``(iii) the eligible partnership shall 
                        provide an assurance that it will recruit 
                        minority students to become highly qualified 
                        teachers;
                    ``(B) support services, if needed, to enable 
                scholarship recipients to complete postsecondary 
                education programs, or to transition from a career 
                outside of the field of education into a teaching 
                career; and
                    ``(C) follow-up services to former scholarship 
                recipients during their initial years of teaching.
            ``(5) Community colleges.--
                    ``(A) Teacher preparation programs.--Implementing, 
                or coordinating with community colleges to implement, 
                teacher preparation programs, including through 
                distance learning, for the purposes of allowing 
                prospective teachers--
                            ``(i) to attain a bachelor's degree and 
                        State certification or licensure; and
                            ``(ii) to become highly qualified teachers.
                    ``(B) Professional development.--Providing, or 
                coordinating with community colleges to provide, 
                professional development that improves the academic 
                content knowledge of teachers in the academic subject 
                areas in which the teachers are certified to teach or 
                in which the teachers are working toward certification 
                to teach, and that promotes strong teaching skills.
            ``(6) Teacher mentoring.--Establishing or implementing a 
        teacher mentoring program that--
                    ``(A) includes minimum qualifications for mentors;
                    ``(B) provides training and stipends for mentors;
                    ``(C) provides mentoring programs for teachers 
                during their initial years of teaching;
                    ``(D) provides regular and ongoing opportunities 
                for mentors and mentees to observe each other's 
                teaching methods in classroom settings during the 
                school day;
                    ``(E) establishes an evaluation and accountability 
                plan for activities conducted under this paragraph that 
                includes rigorous objectives to measure the impact of 
                such activities; and
                    ``(F) provides for a report to the Secretary on an 
                annual basis regarding the eligible partnership's 
                progress in meeting the objectives described in 
                subparagraph (E).
            ``(7) Professional development.--The activity described in 
        section 202(d)(10).
            ``(8) Technology.--The activity described in section 
        202(d)(11).
            ``(9) Foreign language instruction.--The activity described 
        in section 202(d)(12).
            ``(10) Graduate programs.--Developing, in collaboration 
        with departments, programs, or units of both academic content 
        and teacher education, master's degree programs that meet the 
        demonstrated needs of teachers in the local educational agency 
        within the eligible partnership for content expertise and 
        teaching skills.
    ``(g) Construction.--Nothing in this section shall be construed to 
prohibit an eligible partnership from using grant funds to coordinate 
with the activities of more than 1 Governor, State board of education, 
State educational agency, local educational agency, or State agency for 
higher education.
    ``(h) Supplement, Not Supplant.--Funds made available under this 
section shall be used to supplement, and not supplant, other Federal, 
State, and local funds that would otherwise be expended to carry out 
activities under this section.
    ``(i) Applicability of Private School Participation Provisions.--
Section 9501 of the Elementary and Secondary Education Act of 1965 
shall apply to programs carried out under this section.

``SEC. 204. ADMINISTRATIVE PROVISIONS.

    ``(a) Duration; One-Time Awards; Payments.--
            ``(1) Duration.--
                    ``(A) Eligible states.--Grants awarded to eligible 
                States under this part shall be awarded for a period 
                not to exceed 3 years.
                    ``(B) Eligible partnerships.--Grants awarded to 
                eligible partnerships under this part shall be awarded 
                for a period of 5 years.
            ``(2) One-time award.--An eligible partnership may receive 
        a grant under section 203 only once.
            ``(3) Payments.--The Secretary shall make annual payments 
        of grant funds awarded under this part.
    ``(b) Peer Review.--
            ``(1) Panel.--The Secretary shall provide the applications 
        submitted under this part to a peer review panel for 
        evaluation. With respect to each application, the peer review 
        panel shall initially recommend the application for funding or 
        for disapproval.
            ``(2) Priority.--In recommending applications to the 
        Secretary for funding under this part, the panel shall--
                    ``(A) with respect to grants under section 202--
                            ``(i) give priority to eligible States that 
                        have initiatives to reform State teacher 
                        certification requirements so that the 
                        requirements are based on rigorous academic 
                        content and scientifically based research 
                        (including scientifically based reading 
                        research), and aligned with challenging State 
                        academic content standards;
                            ``(ii) give priority to eligible States 
                        that have innovative reforms to hold 
                        institutions of higher education with teacher 
                        preparation programs accountable for preparing 
                        teachers to become highly qualified and have 
                        strong teaching skills;
                            ``(iii) give priority to eligible States 
                        that have innovative efforts aimed at reducing 
                        the shortage of highly qualified teachers in 
                        low-income urban and rural areas, or in high-
                        need academic subject areas; and
                            ``(iv) take into consideration an equitable 
                        geographic distribution of the grants 
                        throughout the United States; and
                    ``(B) with respect to grants under section 203--
                            ``(i) give priority to applications from 
                        broad-based eligible partnerships that involve 
                        businesses and community organizations; and
                            ``(ii) take into consideration an equitable 
                        geographic distribution of the grants 
                        throughout the United States.
            ``(3) Secretarial selection.--The Secretary shall 
        determine, based on the peer review process, which applications 
        shall receive funding and the amounts of the grants. In 
        determining grant amounts, the Secretary shall take into 
        account the total amount of funds available for all grants 
        under this part and the types of activities proposed to be 
        carried out.
    ``(c) Matching Requirements.--
            ``(1) State grants.--Each eligible State receiving a grant 
        under section 202 shall provide, from non-Federal sources, an 
        amount equal to 50 percent of the amount of the grant (in cash 
        or in kind) to carry out the activities supported by the grant.
            ``(2) Partnership grants.--Each eligible partnership 
        receiving a grant under section 203 shall provide, from non-
        Federal sources (in cash or in kind), an amount equal to 25 
        percent of the grant for the first year of the grant, 35 
        percent of the grant for the second year of the grant, and 50 
        percent of the grant for each succeeding year of the grant.
    ``(d) Limitation on Administrative Expenses.--An eligible State or 
eligible partnership that receives a grant under this part may use not 
more than 2 percent of the grant funds for purposes of administering 
the grant.

``SEC. 205. ACCOUNTABILITY AND EVALUATION.

    ``(a) State Grant Accountability Report.--An eligible State that 
receives a grant under section 202 shall submit an annual 
accountability report to the Secretary and the authorizing committees. 
Such report shall include a description of the degree to which the 
eligible State, in using funds provided under such section, has made 
progress in meeting the purposes of this part and substantial progress 
in meeting the following goals, as applicable:
            ``(1) Percentage of highly qualified teachers.--Increasing 
        the percentage of highly qualified teachers in the State as 
        required under section 1119 of the Elementary and Secondary 
        Education Act of 1965.
            ``(2) Student academic achievement.--Increasing student 
        academic achievement for all students as defined by the 
        eligible State.
            ``(3) Raising standards.--Raising the State academic 
        standards required to enter the teaching profession as a highly 
        qualified teacher.
            ``(4) Initial certification or licensure.--Increasing 
        success in the pass rates and scaled scores for initial State 
        teacher certification or licensure, or increasing the numbers 
        of qualified individuals being certified or licensed as 
        teachers through alternative certification programs.
            ``(5) Decreasing teacher shortages.--Decreasing shortages 
        of highly qualified teachers in low-income urban and rural 
        areas and in high-need academic subject areas.
            ``(6) Increasing opportunities for professional 
        development.--Increasing opportunities for enhanced and ongoing 
        professional development that improves the academic content 
        knowledge of teachers in the academic subject areas in which 
        the teachers are certified or licensed to teach or in which the 
        teachers are working toward certification or licensure to 
        teach, and that promotes strong teaching skills.
            ``(7) Technology integration.--Increasing the number of 
        teachers prepared to effectively integrate technology into 
        curricula and instruction and who use technology to collect, 
        manage, and analyze data to improve teaching, learning, and 
        decisionmaking for the purpose of increasing student academic 
        achievement.
    ``(b) Eligible Partnership Evaluation.--
            ``(1) In general.--Each eligible partnership receiving a 
        grant under section 203 shall establish and include in the 
        application submitted under section 203(c), an evaluation plan 
        that includes strong performance objectives. The plan shall 
        include objectives and measures for--
                    ``(A) increased student academic achievement for 
                all students as measured by the eligible partnership;
                    ``(B) increased teacher retention in the initial 
                years of a teacher's career;
                    ``(C) increased success in the pass rates and 
                scaled scores for initial State certification or 
                licensure of teachers;
                    ``(D) increased percentage of highly qualified 
                teachers;
                    ``(E) increasing opportunities for enhanced and 
                ongoing professional development that improves the 
                academic content knowledge of teachers in the academic 
                subject areas in which the teachers are certified or 
                licensed to teach or in which the teachers are working 
                toward certification or licensure to teach, and that 
                promotes strong teaching skills; and
                    ``(F) increasing the number of teachers prepared to 
                effectively integrate technology into curricula and 
                instruction and who use technology to collect, manage, 
                and analyze data to improve teaching, learning, and 
                decisionmaking for the purpose of increasing student 
                academic achievement.
            ``(2) Report.--Each eligible partnership receiving a grant 
        under section 203 shall report annually on the progress of the 
        eligible partnership toward meeting the purposes of this part 
        and the objectives and measures described in paragraph (1).
    ``(c) Revocation of Grant.--
            ``(1) Eligible states.--If the Secretary determines that an 
        eligible State is not making substantial progress in meeting 
        the purposes, goals, objectives, and measures, as appropriate, 
        by the end of the second year of a grant under this part, the 
        grant payment shall not be made for the third year of the 
        grant.
            ``(2) Eligible partnerships.--If the Secretary determines 
        that an eligible partnership is not making substantial progress 
        in meeting the purposes, goals, objectives, and measures, as 
        appropriate, by the end of the third year of a grant under this 
        part, then the grant payments shall not be made for any 
        succeeding year of the grant.
    ``(d) Evaluation and Dissemination.--The Secretary shall evaluate 
the activities funded under this part and report the Secretary's 
findings regarding the activities to the authorizing committees. The 
Secretary shall broadly disseminate successful practices developed by 
eligible States and eligible partnerships under this part, and shall 
broadly disseminate information regarding such practices that were 
found to be ineffective.

``SEC. 206. ACCOUNTABILITY FOR PROGRAMS THAT PREPARE TEACHERS.

    ``(a) Institutional and Program Report Cards on the Quality of 
Teacher Preparation.--
            ``(1) Report card.--Each institution of higher education 
        that conducts a traditional teacher preparation program or an 
        alternative certification program and that enrolls students 
        receiving Federal assistance under this Act shall report 
        annually to the State and the general public, in a uniform and 
        comprehensible manner that conforms with the definitions and 
        methods established by the Secretary, both for traditional 
        certification programs and for alternative certification 
        programs, the following information:
                    ``(A) Pass rates and scaled scores.--For the most 
                recent year for which the information is available, for 
                each of the assessments used for teacher certification 
                or licensure by the State in which the program is 
                located, for those students who are enrolled in the 
                traditional teacher preparation program or alternative 
                certification program, or who have completed the 
                traditional teacher preparation program or alternative 
                certification program during the 2-year period 
                preceding such year--
                            ``(i) the percentage of all such students 
                        who passed each such assessment;
                            ``(ii) a comparison of the program's pass 
                        rates with the average pass rates for programs 
                        in the State;
                            ``(iii) the average scaled score for all 
                        such students who passed each such assessment; 
                        and
                            ``(iv) a comparison of the program's 
                        average scaled scores with the average scaled 
                        scores for programs in the State.
                    ``(B) Program information.--The criteria for 
                admission into the program, the number of students in 
                the program (disaggregated by race and gender), the 
                average number of hours of supervised practice teaching 
                required for those in the program, the number of full-
                time equivalent faculty and students in supervised 
                practice teaching, and the total number of students 
                receiving teacher certification, disaggregated by 
                subject and level.
                    ``(C) Statement.--In States that require approval 
                or accreditation of teacher preparation programs, a 
                statement of whether the institution's program is so 
                approved or accredited, and by whom.
                    ``(D) Designation as low-performing.--Whether the 
                program has been designated as low-performing by the 
                State under section 207(a).
            ``(2) Requirement.--The information described in paragraph 
        (1) shall be reported through publications such as school 
        catalogs and promotional materials sent, including by 
        electronic means, to potential applicants, secondary school 
        guidance counselors, and prospective employers of the 
        institution's program graduates.
            ``(3) Fines.--In addition to the actions authorized in 
        section 487(c), the Secretary may impose a fine not to exceed 
        $25,000 on an institution of higher education for failure to 
        provide the information described in this subsection in a 
        timely or accurate manner.
            ``(4) Special rule.--In the case of an institution of 
        higher education that conducts a traditional teacher 
        preparation program or an alternative certification program, 
        with fewer than 10 scores reported on any single initial 
        teacher certification or licensure assessment during an 
        academic year, the institution shall collect and publish 
        information with respect to an average pass rate and scaled 
        score on each State certification or licensure assessment taken 
        over a 3-year period.
    ``(b) State Report Card on the Quality of Teacher Preparation.--
Each State that receives funds under this Act shall provide to the 
Secretary, annually, in a uniform and comprehensible manner that 
conforms with the definitions and methods established by the Secretary, 
a State report card on the quality of teacher preparation in the State, 
both for traditional certification programs and for alternative 
certification programs, which shall include not less than the 
following:
            ``(1) A description of the teacher certification or 
        licensure assessments, and any other certification or licensure 
        requirements, used by the State.
            ``(2) The standards and criteria that prospective teachers 
        must meet in order to attain initial teacher certification or 
        licensure and to be certified or licensed to teach in 
        particular academic subject areas or in particular grades 
        within the State.
            ``(3) A description of how the assessments and requirements 
        described in paragraph (1) are aligned with the State's 
        standards and assessments for students.
            ``(4) For each of the assessments used by the State for 
        teacher certification or licensure--
                    ``(A) the percentage of students at each 
                institution of higher education who are enrolled in a 
                traditional teacher preparation program or alternative 
                certification program, or who have completed the 
                traditional teacher preparation program or alternative 
                certification program during the 2-year period 
                preceding the date of the determination, who passed 
                each such assessment; and
                    ``(B) the average scaled score for students at each 
                institution of higher education who are enrolled in a 
                traditional teacher preparation program or alternative 
                certification program, or who have completed the 
                traditional teacher preparation program or alternative 
                certification program during the 2-year period 
                preceding the date of the determination, who passed 
                each such assessment, ranked by teacher preparation 
                program, which shall be made available widely and 
                publicly.
            ``(5) A description of State-run and other alternative 
        certification programs outside of institutions of higher 
        education, if any, including, for each of the assessments used 
        by the State for teacher certification or licensure--
                    ``(A) the percentage of individuals participating 
                in such programs, or who have completed such programs 
                during the 2-year period preceding the date of the 
                determination, who passed each such assessment; and
                    ``(B) the average scaled score of individuals 
                participating in such programs, or who have completed 
                such programs during the 2-year period preceding the 
                date of the determination, who passed each such 
                assessment.
            ``(6) A description of the State's proposed criteria for 
        assessing the performance of teacher preparation programs 
        within institutions of higher education in the State. Such 
        criteria shall include indicators of the academic content 
        knowledge and teaching skills of students enrolled in such 
        programs.
            ``(7) For each teacher preparation program in the State, 
        the criteria for admission into the program, the number of 
        students in the program (disaggregated by race and gender), the 
        average number of hours of supervised practice teaching 
        required for those in the program, and the number of full-time 
        equivalent faculty and students in supervised practice 
        teaching.
    ``(c) Report of the Secretary on the Quality of Teacher 
Preparation.--
            ``(1) Report card.--The Secretary shall provide to 
        Congress, and publish and make widely available, a report card 
        on teacher qualifications and preparation in the United States, 
        including all the information reported in paragraphs (1) 
        through (7) of subsection (b). Such report shall identify 
        States for which eligible States and eligible partnerships 
        received a grant under this part. Such report shall be so 
        provided, published, and made available annually.
            ``(2) Report to congress.--The Secretary shall report to 
        Congress--
                    ``(A) a comparison of States' efforts to improve 
                the quality of the current and future teaching force;
                    ``(B) a comparison of eligible partnerships' 
                efforts to improve the quality of the current and 
                future teaching force pursuant to section 203; and
                    ``(C) regarding the national mean and median scaled 
                scores and pass rate on any standardized test that is 
                used in more than 1 State for teacher certification or 
                licensure.
            ``(3) Special rule.--In the case of teacher preparation 
        programs with fewer than 10 scores reported on any single 
        initial teacher certification or licensure assessment during an 
        academic year, the Secretary shall collect and publish 
        information with respect to an average pass rate and scaled 
        score on each State certification or licensure assessment taken 
        over a 3-year period.
    ``(d) Coordination.--The Secretary, to the extent practicable, 
shall coordinate the information collected and published under this 
part among States for individuals who took State teacher certification 
or licensure assessments in a State other than the State in which the 
individual received the individual's most recent degree.
    ``(e) Data Quality.--Either of the following entities shall attest 
annually, in writing, as to the reliability, validity, integrity, and 
accuracy of the data submitted pursuant to this section:
            ``(1) The Governor of the State.
            ``(2) In the case of a State for which the constitution or 
        law of such State designates another individual, entity, or 
        agency in the State to be responsible for teacher certification 
        and preparation activity, such individual, entity, or agency.

``SEC. 207. STATE FUNCTIONS.

    ``(a) State Assessment.--In order to receive funds under this Act, 
a State shall have in place a procedure to identify and assist, through 
the provision of technical assistance, low-performing programs of 
teacher preparation within institutions of higher education. Such State 
shall provide the Secretary an annual list of such low-performing 
institutions that includes an identification of those institutions at 
risk of being placed on such list. Such levels of performance shall be 
determined solely by the State and may include criteria based on 
information collected pursuant to this part. Such assessment shall be 
described in the report under section 206(b).
    ``(b) Termination of Eligibility.--Any institution of higher 
education that offers a program of teacher preparation from which the 
State has withdrawn the State's approval or terminated the State's 
financial support due to the low performance of the institution's 
teacher preparation program based upon the State assessment described 
in subsection (a)--
            ``(1) shall be ineligible for any funding for professional 
        development activities awarded by the Department; and
            ``(2) shall not be permitted to accept or enroll any 
        student that receives aid under title IV in the institution's 
        teacher preparation program.

``SEC. 208. GENERAL PROVISIONS.

    ``(a) Methods.--In complying with sections 206 and 207, the 
Secretary shall ensure that States and institutions of higher education 
use fair and equitable methods in reporting and that the reporting 
methods do not allow identification of individuals.
    ``(b) Special Rule.--For each State that does not use content 
assessments as a means of ensuring that all teachers teaching in core 
academic subjects within the State are highly qualified not later than 
the end of the 2005-2006 school year, as required under section 1119 of 
the Elementary and Secondary Education Act of 1965--
            ``(1) the Secretary shall, to the extent practicable, 
        collect data comparable to the data required under this part 
        from States, local educational agencies, institutions of higher 
        education, or other entities that administer such assessments 
        to teachers or prospective teachers; and
            ``(2) notwithstanding any other provision of this part, the 
        Secretary shall use such data to carry out requirements of this 
        part related to assessments, pass rates, and scaled scores.
    ``(c) Limitations.--
            ``(1) Federal control prohibited.--Nothing in this part 
        shall be construed to permit, allow, encourage, or authorize 
        any Federal control over any aspect of any private, religious, 
        or home school, whether or not a home school is treated as a 
        private school or home school under State law. This section 
        shall not be construed to prohibit private, religious, or home 
        schools from participation in programs or services under this 
        part.
            ``(2) No change in state control encouraged or required.--
        Nothing in this part shall be construed to encourage or require 
        any change in a State's treatment of any private, religious, or 
        home school, whether or not a home school is treated as a 
        private school or home school under State law.
            ``(3) National system of teacher certification 
        prohibited.--Nothing in this part shall be construed to permit, 
        allow, encourage, or authorize the Secretary to establish or 
        support any national system of teacher certification.

``SEC. 209. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated to carry 
out this part such sums as may be necessary for fiscal year 2006 and 
each of the 4 succeeding fiscal years, of which--
            ``(1) 50 percent shall be available for each fiscal year to 
        award grants under section 202; and
            ``(2) 50 percent shall be available for each fiscal year to 
        award grants under section 203.
    ``(b) Special Rule.--If the Secretary determines that there is an 
insufficient number of meritorious applications for grants under 
section 202 or 203 to justify awarding the full amount described in 
paragraph (1) or (2) of subsection (a), respectively, the Secretary 
may, after funding the meritorious applications, use the remaining 
funds for grants under the other such section.''.

                         Subtitle C--Merit Pay

SEC. 331. SENSE OF THE SENATE REGARDING TEACHER INCENTIVES.

    It is the sense of the Senate that--
            (1) teachers should be rewarded for raising student 
        achievement and making real progress in closing the achievement 
        gap that exists between students of different backgrounds; and
            (2) incentives should be created for individuals who choose 
        to teach in low-income schools.

                Subtitle D--Classroom Expense Deduction

SEC. 341. SENSE OF THE SENATE REGARDING TEACHER TAX CREDITS.

    (a) Sense of the Senate.--It is the sense of the Senate that many 
teachers are overburdened with the costs of managing a classroom, and 
that expansion of the deduction for classroom expenses for teachers 
from $250 to $400 would help ease the burden on the teacher dedicated 
to helping our Nation's children learn.
    (b) Amendment.--Section 62(a)(4)(D) of the Internal Revenue Code of 
1986 (relating to certain expenses of elementary and secondary school 
teachers) is amended--
            (1) by striking ``In the case of taxable years beginning 
        during 2002, 2003, 2004, or 2005, the'' and inserting ``The''; 
        and
            (2) by striking ``$250'' and inserting ``$400''.
    (c) Effective Date.--The amendments made by subsection (b) shall 
apply to taxable years beginning after December 31, 2004.

     TITLE IV--HIGHER EDUCATION AND LIFELONG LEARNING OPPORTUNITIES

                      Subtitle A--Higher Education

SEC. 411. SENSE OF THE SENATE REGARDING HIGHER EDUCATION AND LIFELONG 
              LEARNING OPPORTUNITIES.

    It is the sense of the Senate that, as the Senate considers the 
reauthorization of the Higher Education Act of 1965 (20 U.S.C. 1001 et 
seq.) and other related legislation, the Senate should explore efforts 
to improve and expand access to higher education and also make higher 
education more accountable, including consideration of how to--
            (1) address the rising costs of higher education;
            (2) promote student academic preparation for postsecondary 
        education;
            (3) encourage efforts to increase the availability of 
        financial aid information for those who need the financial aid 
        most;
            (4) simplify the student aid application process and 
        improve the administration of the student aid programs;
            (5) improve efforts to help parents and students find and 
        utilize information about attending and paying for college;
            (6) improve the level of accountability in the Federal 
        student aid programs;
            (7) take steps to ensure the long-term availability of 
        Federal Pell Grant funds by--
                    (A) addressing the current Federal Pell Grant 
                program shortfall;
                    (B) exploring initiatives to reduce the time to 
                graduation; and
                    (C) making efforts to ensure the fair distribution 
                of Federal Pell Grant funds to eligible recipients;
            (8) promote quality educational opportunities for all 
        students, including nontraditional students, that will equip 
        graduates with the skills the graduates need to continue 
        lifelong learning and succeed in the 21st century workforce;
            (9) support stronger partnerships between businesses and 
        institutions of higher education;
            (10) strengthen collaboration between higher education 
        programs, and other Federal, State, and local education and 
        training programs; and
            (11) promote the access to and affordability of higher 
        education through the use of technology and distance learning.

SEC. 412. SENSE OF THE SENATE REGARDING MINORITY SERVING INSTITUTIONS.

    It is the sense of the Senate that historically Black colleges and 
universities (HBCUs), historically Black graduate institutions (HBGIs), 
Hispanic-serving institutions (HSIs), and tribally controlled colleges 
or universities (TCCUs) are a source of accomplishment and great pride 
for their respective communities as well as the entire Nation, and that 
such institutions offer all students, regardless of race, an 
opportunity to develop their skills and talents by training young 
people who go on to serve domestically and internationally in the 
professions as entrepreneurs, and in the public and private sectors, 
and therefore every effort should be made to increase funding for such 
institutions.

        Subtitle B--Workforce Investment Act Amendments of 2005

SEC. 421. SHORT TITLE.

    This subtitle may be cited as the ``Workforce Investment Act 
Amendments of 2005''.

SEC. 422. REFERENCES.

    Except as otherwise expressly provided, wherever in this subtitle 
an amendment or repeal is expressed in terms of an amendment to, or 
repeal of, a section or other provision, the reference shall be 
considered to be made to a section or other provision of the Workforce 
Investment Act of 1998 (29 U.S.C. 2801 et seq.).

  CHAPTER 1--AMENDMENTS TO TITLE I OF THE WORKFORCE INVESTMENT ACT OF 
                                  1998

                       Subchapter A--Definitions

SEC. 431. DEFINITIONS.

    Section 101 (29 U.S.C. 2801) is amended--
            (1) by redesignating paragraphs (1) through (4), (5) 
        through (16), (17), (18) through (41), and (42) through (53) as 
        paragraphs (2) through (5), (7) through (18), (20), (23) 
        through (46), and (48) through (59), respectively;
            (2) by inserting before paragraph (2) (as redesignated by 
        paragraph (1)) the following:
            ``(1) Accrued expenditures.--The term `accrued 
        expenditures' means charges incurred by recipients of funds 
        under this title for a given period requiring the provision of 
        funds for--
                    ``(A) goods or other tangible property received;
                    ``(B) services performed by employees, contractors, 
                subgrantees, subcontractors, and other payees; and
                    ``(C) other amounts becoming owed under programs 
                assisted under this title for which no current services 
                or performance is required, such as annuities, 
                insurance claims, and other benefit payments.'';
            (3) in paragraph (2) (as redesignated by paragraph (1)), by 
        striking ``Except in sections 127 and 132,'' and inserting 
        ``Except in section 132,'';
            (4) by striking paragraph (5) (as redesignated by paragraph 
        (1)) and inserting the following:
            ``(5) Basic skills deficient.--The term `basic skills 
        deficient' means, with respect to an individual, that the 
        individual--
                    ``(A) has English reading, writing, or computing 
                skills at or below the 8th grade level on a generally 
                accepted standardized test or a comparable score on a 
                criterion-referenced test; or
                    ``(B) is unable to compute or solve problems, read, 
                write, or speak English at a level necessary to 
                function on the job, in the individual's family, or in 
                society.'';
            (5) by inserting after paragraph (5) (as redesignated by 
        paragraph (1)) the following:
            ``(6) Business intermediary.--The term `business 
        intermediary' means an entity that brings together various 
        stakeholders with an expertise in an industry or business 
        sector.'';
            (6) in paragraph (9) (as redesignated by paragraph (1)), by 
        inserting ``, including a faith-based organization,'' after 
        ``nonprofit organization'';
            (7) in paragraph (10) (as redesignated by paragraph (1))--
                    (A) in subparagraph (B), by striking ``and'' after 
                the semicolon;
                    (B) in subparagraph (C)--
                            (i) by striking ``for not less than 50 
                        percent of the cost of the training.'' and 
                        inserting ``for--
                            ``(i) a significant portion of the cost of 
                        training as determined by the local board, 
                        taking into account the size of the employer 
                        and such other factors as the local board 
                        determines to be appropriate; and
                            ``(ii) for customized training (as defined 
                        in subparagraphs (A) and (B)) with an employer 
                        in multiple local areas in the State, a 
                        significant portion of the cost of the 
                        training, as determined by the Governor, taking 
                        into account the size of the employer and such 
                        other factors as the Governor determines to be 
                        appropriate.'';
            (8) in paragraph (11) (as redesignated by paragraph (1))--
                    (A) in subparagraph (A)(ii)(II), by striking 
                ``section 134(c)'' and inserting ``section 121(e)'';
                    (B) in subparagraph (C), by striking ``or'' after 
                the semicolon;
                    (C) in subparagraph (D), by striking the period and 
                inserting ``; or''; and
                    (D) by adding at the end the following:
                    ``(E)(i) is the spouse of a member of the Armed 
                Forces on active duty for a period of more than 30 days 
                (as defined in section 101(d)(2) of title 10, United 
                States Code) who has experienced a loss of employment 
                as a direct result of relocation to accommodate a 
                permanent change in duty station of such member; or
                    ``(ii) is the spouse of a member of the Armed 
                Forces on active duty who meets the criteria described 
                in paragraph (12)(B).'';
            (9) in paragraph (12)(A) (as redesignated by paragraph 
        (1))--
                    (A) by striking ``and'' after the semicolon and 
                inserting ``or'';
                    (B) by striking ``(A)'' and inserting ``(A)(i)''; 
                and
                    (C) by adding at the end the following:
                    ``(ii) is the dependent spouse of a member of the 
                Armed Forces on active duty for a period of more than 
                30 days (as defined in section 101(d)(2) of title 10, 
                United States Code) whose family income is 
                significantly reduced because of a deployment (as 
                defined in section 991(b) of title 10, United States 
                Code, or pursuant to paragraph (4) of such section), a 
                call or order to active duty pursuant to a provision of 
                law referred to in section 101(a)(13)(B) of title 10, 
                United States Code, a permanent change of station, or 
                the service-connected (as defined in section 101(16) of 
                title 38, United States Code) death or disability of 
                the member; and'';
            (10) in paragraph (14)(A) (as redesignated by paragraph 
        (1)), by striking ``section 122(e)(3)'' and inserting ``section 
        122'';
            (11) by inserting after paragraph (18) (as redesignated by 
        paragraph (1)) the following:
            ``(19) Hard-to-serve populations.--The term `hard-to-serve 
        populations' means populations of individuals who are hard to 
        serve, including displaced homemakers, low-income individuals, 
        Native Americans, individuals with disabilities, older 
        individuals, ex-offenders, homeless individuals, individuals 
        with limited English proficiency, individuals who do not meet 
        the definition of literacy in section 203, individuals facing 
        substantial cultural barriers, migrant and seasonal 
        farmworkers, individuals within 2 years of exhausting lifetime 
        eligibility under part A of title IV of the Social Security Act 
        (42 U.S.C. 601 et seq.), and such other groups as the Governor 
        determines to be hard to serve.'';
            (12) by inserting after paragraph (20) (as redesignated by 
        paragraph (1)) the following:
            ``(21) Integrated training program.--The term `integrated 
        training program' means a program that combines occupational 
        skills training with English language acquisition.
            ``(22) Institution of higher education.--The term 
        `institution of higher education' has the meaning given the 
        term in section 101(a), and subparagraphs (A) and (B) of 
        section 102(a)(1), of the Higher Education Act of 1965 (20 
        U.S.C. 1001(a), 1002(a)(1)).'';
            (13) in paragraph (30) (as redesignated by paragraph (1))--
                    (A) by redesignating subparagraphs (D) through (F) 
                as subparagraphs (E) through (G), respectively; and
                    (B) by inserting after subparagraph (C) the 
                following:
                    ``(D) receives or is eligible to receive a free or 
                reduced price lunch under the Richard B. Russell 
                National School Lunch Act (42 U.S.C. 1751 et seq.);'';
            (14) in paragraph (35) (as redesignated by paragraph (1)), 
        by inserting ``, subject to section 121(b)(1)(C)'' after 
        ``121(b)(1)'';
            (15) by striking paragraph (38) (as redesignated by 
        paragraph (1)) and inserting the following:
            ``(38) Out-of-school youth.--The term `out-of-school youth' 
        means an out-of-school youth as defined in section 
        129(a)(1)(B).'';
            (16) by inserting after paragraph (46) (as redesignated by 
        paragraph (1)) the following:
            ``(47) Self-sufficiency.--The term `self-sufficiency' means 
        self-sufficiency within the meaning of subsections (a)(3)(A)(x) 
        and (e)(1)(A)(xii) of section 134.'';
            (17) in paragraph (49) (as redesignated by paragraph (1)), 
        by striking ``clause (iii) or (v) of section 136(b)(3)(A)'' and 
        inserting ``section 136(b)(3)(A)(iii)'';
            (18) in paragraph (58) (as redesignated by paragraph (1)), 
        by striking ``(or as described in section 129(c)(5))'' and 
        inserting ``(or as described in section 129(a)(2))''; and
            (19) in paragraph (59) (as redesignated by paragraph (1)), 
        by striking ``established under section 117(h)'' and inserting 
        ``that may be established under section 117(h)(2)''.

     Subchapter B--Statewide and Local Workforce Investment Systems

SEC. 432. PURPOSE.

    Section 106 (29 U.S.C. 2811) is amended to read as follows:

``SEC. 106. PURPOSES.

    ``The purposes of this subtitle are the following:
            ``(1)(A) Primarily, to provide workforce investment 
        activities, through statewide and local workforce investment 
        systems, that increase the employment, retention, self-
        sufficiency, and earnings of participants, and increase 
        occupational skill attainment by participants.
            ``(B) As a result of the provision of the activities, to 
        improve the quality of the workforce, reduce welfare 
        dependency, increase self-sufficiency, and enhance the 
        productivity and competitiveness of the Nation.
            ``(2) To enhance the workforce investment system of the 
        Nation by strengthening one-stop centers, providing for more 
        effective governance arrangements, promoting access to a more 
        comprehensive array of employment and training and related 
        services, establishing a targeted approach to serving youth, 
        improving performance accountability, and promoting State and 
        local flexibility.
            ``(3) 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.
            ``(4) To provide workforce investment systems that are 
        demand-driven and responsive to the needs of all employers, 
        including small employers.
            ``(5) To provide workforce investment systems that work in 
        all areas of the Nation, including urban and rural areas.
            ``(6) To allow flexibility to meet State, local, regional, 
        and individual workforce investment needs.
            ``(7) To recognize and reinforce the vital link between 
        economic development and workforce investment activities.
            ``(8) To provide for accurate data collection, reporting, 
        and performance measures that are not unduly burdensome.
            ``(9) To address the ongoing shortage of essential skills 
        in the United States workforce related to both manufacturing 
        and knowledge-based economies to ensure that the United States 
        remains competitive in the global economy.
            ``(10) To equip workers with higher skills and contribute 
        to lifelong education.
            ``(11) To eliminate training disincentives for hard-to-
        serve populations and minority workers, including effectively 
        utilizing community programs, services, and agencies.
            ``(12) To educate limited English proficient individuals 
        about skills and language so the individuals are employable.
            ``(13) To increase the employment, retention and earnings 
        of individuals with disabilities.''.

SEC. 432A. STATE WORKFORCE INVESTMENT BOARDS.

    (a) Membership.--
            (1) In general.--Section 111(b) (29 U.S.C. 2821(b)) is 
        amended--
                    (A) in paragraph (1), by striking subparagraph (C) 
                and inserting the following:
                    ``(C) representatives appointed by the Governor, 
                who--
                            ``(i) are 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, except 
                        that--
                                    ``(I) in any case in which no lead 
                                State agency official has 
                                responsibility for such a program or 
                                activity, the representative shall be a 
                                representative in the State with 
                                expertise relating to such program or 
                                activity; and
                                    ``(II) in the case of the programs 
                                authorized under title I of the 
                                Rehabilitation Act of 1973 (29 U.S.C. 
                                720 et seq.), the representative shall 
                                be the director of the designated State 
                                unit, as defined in section 7 of the 
                                Rehabilitation Act of 1973 (29 U.S.C. 
                                705);
                            ``(ii) are the State agency officials 
                        responsible for economic development;
                            ``(iii) are representatives of business in 
                        the State, including small businesses, who--
                                    ``(I) are owners of businesses, 
                                chief executive or operating officers 
                                of businesses, or other business 
                                executives or employers with optimum 
                                policymaking or hiring authority;
                                    ``(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, business trade 
                                associations, and local boards;
                            ``(iv) are chief elected officials 
                        (representing cities and counties, where 
                        appropriate);
                            ``(v) are representatives of labor 
                        organizations, who have been nominated by State 
                        labor federations; and
                            ``(vi) are such other State agency 
                        officials and other representatives 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. 
        2821(c)) is amended by striking ``subsection (b)(1)(C)(i)'' and 
        inserting ``subsection (b)(1)(C)(iii)''.
    (b) Functions.--Section 111(d) (29 U.S.C. 2811(d)) is amended--
            (1) in paragraph (1), by striking ``development'' and 
        inserting ``development, implementation, and revision'';
            (2) in paragraph (2), by striking ``section 134(c)'' and 
        inserting ``section 121(e)'';
            (3) by striking paragraph (3) and inserting the following:
            ``(3) reviewing and providing comment on the State plans of 
        all one-stop partner programs, where applicable, in order to 
        provide effective strategic leadership in the development of a 
        high quality, comprehensive statewide workforce investment 
        system, including commenting at least once annually on the 
        measures taken pursuant to section 113(b)(3) of the Carl D. 
        Perkins Vocational and Technical Education Act of 1998 (20 
        U.S.C. 2323(b)(3)) and title II of this Act;'';
            (4) by redesignating paragraphs (4) through (9) as 
        paragraphs (5) through (10), respectively;
            (5) by inserting after paragraph (3) the following:
            ``(4) development and review of statewide policies 
        affecting the coordinated provision of services through the 
        one-stop delivery systems described in section 121(e) within 
        the State, including--
                    ``(A) the development of objective criteria and 
                procedures for use by local boards in assessing the 
                effectiveness and continuous improvement of one-stop 
                centers under section 121(g);
                    ``(B) the development of guidance for the 
                allocation of one-stop center infrastructure funds 
                under section 121(h)(1)(B);
                    ``(C) the development of--
                            ``(i) statewide policies relating to the 
                        appropriate roles and contributions of one-stop 
                        partner programs within the one-stop delivery 
                        system, including approaches to facilitating 
                        equitable and efficient cost allocation in the 
                        one-stop delivery system;
                            ``(ii) statewide strategies for providing 
                        effective outreach to individuals, including 
                        hard-to-serve populations, and employers who 
                        could benefit from services provided through 
                        the one-stop delivery system; and
                            ``(iii) strategies for technology 
                        improvements to facilitate access to services 
                        provided through the one-stop delivery system, 
                        in remote areas, and for individuals with 
                        disabilities, which may be utilized throughout 
                        the State;
                    ``(D) identification and dissemination of 
                information on best practices for effective operation 
                of one-stop centers, including use of innovative 
                business outreach, partnerships, and service delivery 
                strategies, including for hard-to-serve populations; 
                and
                    ``(E) conduct of such other matters as may promote 
                statewide objectives for, and enhance the performance 
                of, the one-stop delivery systems;'';
            (6) in paragraph (5) (as redesignated by paragraph (4)), by 
        inserting ``and the development of statewide criteria to be 
        used by chief elected officials for the appointment of local 
        boards consistent with section 117'' after ``section 116'';
            (7) in paragraph (6) (as redesignated by paragraph (4)), by 
        striking ``sections 128(b)(3)(B) and 133(b)(3)(B)'' and 
        inserting ``sections 128(b)(3) and 133(b)(3)(B)'';
            (8) in paragraph (9) (as redesignated by paragraph (4))--
                    (A) by striking ``employment statistics system'' 
                and inserting ``workforce and labor market information 
                system''; and
                    (B) by striking ``and'' after the semicolon;
            (9) in paragraph (10) (as redesignated by paragraph (4))--
                    (A) by striking ``section 503'' and inserting 
                ``section 136(i)(1)''; and
                    (B) by striking the period and inserting ``; and''; 
                and
            (10) by adding at the end the following:
            ``(11) increasing the availability of skills training, 
        employment opportunities, and career advancement, for hard-to-
        serve populations.''.
    (c) Alternative Entity.--Section 111(e) (29 U.S.C. 2811(e)) is 
amended--
            (1) in paragraph (1), by striking ``For'' and inserting 
        ``Subject to paragraph (3), for''; and
            (2) by adding at the end the following:
            ``(3) Failure to meet performance measures.--If a State 
        fails to have performed successfully, as defined in section 
        116(a)(2), the Secretary may require the State to establish a 
        State board in accordance with subsections (a), (b), and (c) in 
        lieu of the alternative entity established under paragraph 
        (1).''.
    (d) Sunshine Provision.--Section 111(g) (29 U.S.C. 2822(g)) is 
amended--
            (1) by inserting ``, and modifications to the State plan,'' 
        before ``prior''; and
            (2) by inserting ``, and modifications to the State plan'' 
        after ``the plan''.
    (e) Authority To Hire Staff.--Section 111 (29 U.S.C. 2811)) is 
amended by adding at the end the following:
    ``(h) Authority To Hire Staff.--The State board may hire staff to 
assist in carrying out the functions described in subsection (d) using 
funds allocated under sections 127(b)(1)(C) and 132(b).''.

SEC. 432B. STATE PLAN.

    (a) Planning Cycle.--Section 112(a) (29 U.S.C. 2822(a)) is 
amended--
            (1) by striking ``5-year strategy'' and inserting ``4-year 
        strategy''; and
            (2) by adding at the end the following: ``At the end of the 
        first 2-year period of the 4-year State plan, the State board 
        shall review and, as needed, amend the 4-year State plan to 
        reflect labor market and economic conditions. In addition, the 
        State shall submit a modification to the State plan at the end 
        of the first 2-year period of the State plan, which may include 
        redesignation of local areas pursuant to section 116(a) and 
        specification of the levels of performance under sections 136 
        for the third and fourth years of the plan.''.
    (b) Contents.--Section 112(b) (29 U.S.C. 2822(b)) is amended--
            (1) in paragraph (8)(A)--
                    (A) in clause (ix), by striking ``and'' after the 
                semicolon; and
                    (B) by adding at the end the following:
                    ``(xi) programs authorized under title II of the 
                Social Security Act (42 U.S.C. 401 et seq.) (relating 
                to Federal old-age, survivors, and disability insurance 
                benefits), title XVI of such Act (42 U.S.C. 1381 et 
                seq.) (relating to supplemental security income), title 
                XIX of such Act (42 U.S.C. 1396 et seq.) (relating to 
                medicaid), and title XX of such Act (42 U.S.C. 1397 et 
                seq.) (relating to block grants to States for social 
                services), programs authorized under title VII of the 
                Rehabilitation Act of 1973 (29 U.S.C. 796 et seq.), and 
                programs carried out by State agencies relating to 
                mental retardation and developmental disabilities; 
                and'';
            (2) by striking paragraph (10) and inserting the following:
            ``(10) a description of how the State will use funds the 
        State received under this subtitle to leverage other Federal, 
        State, local, and private resources, in order to maximize the 
        effectiveness of such resources, expand resources for the 
        provision of education and training services, and expand the 
        participation of businesses, employees, and individuals in the 
        statewide workforce investment system, including a description 
        of incentives and technical assistance the State will provide 
        to local areas for such purposes;'';
            (3) in paragraph (12)(A), by striking ``sections 
        128(b)(3)(B) and 133(b)(3)(B)'' and inserting ``sections 
        128(b)(3) and 133(b)(3)(B)'';
            (4) in paragraph (14), by striking ``section 134(c)'' and 
        inserting ``section 121(e)'';
            (5) in paragraph (15), by striking ``section 116(a)(5)'' 
        and inserting ``section 116(a)(4)'';
            (6) in paragraph (17)--
                    (A) in subparagraph (A)--
                            (i) in clause (iii)--
                                    (I) by inserting ``local'' before 
                                ``customized training''; and
                                    (II) by striking ``and'' at the 
                                end;
                            (ii) in clause (iv), by striking 
                        ``(including displaced homemakers),'' and all 
                        that follows through ``disabilities)'' and 
                        inserting ``, hard-to-serve populations and 
                        individuals training for nontraditional 
                        employment''; and
                            (iii) by adding after clause (iv) the 
                        following:
                            ``(v) how the State will serve the 
                        employment and training needs of individuals 
                        with disabilities, consistent with section 188 
                        and Executive Order 13217 (42 U.S.C. 12131 
                        note; relating to community-based alternatives 
                        for individuals with disabilities), including 
                        the provision of outreach, intake, the conduct 
                        of assessments, service delivery, the 
                        development of adjustments to performance 
                        measures established under section 136, and the 
                        training of staff; and''; and
                    (B) in subparagraph (B), by striking ``and'' at the 
                end;
            (7) in paragraph (18)(D)--
                    (A) by striking ``youth opportunity grants under 
                section 169'' and inserting ``youth challenge grants 
                authorized under section 169 and other federally funded 
                youth programs''; and
                    (B) by striking the period and inserting a 
                semicolon; and
            (8) by adding at the end the following:
            ``(19) a description of how the State will utilize 
        technology to facilitate access to services in remote areas, 
        which may be utilized throughout the State;
            ``(20) a description of the State strategy for coordinating 
        workforce investment activities and economic development 
        activities;
            ``(21) a description of the State strategy and assistance 
        to be provided for ensuring regional cooperation within the 
        State and across State borders as appropriate;
            ``(22) a description of how the State will use funds the 
        State receives under this subtitle to--
                    ``(A) implement innovative programs and strategies 
                designed to meet the needs of all businesses in the 
                State, including small businesses, which may include 
                incumbent worker training programs, sectoral and 
                industry cluster strategies, regional skills alliances, 
                career ladder programs, utilization of effective 
                business intermediaries, and other business services 
                and strategies that better engage employers in 
                workforce investment activities and make the statewide 
                workforce investment system more relevant to the needs 
                of State and local businesses, consistent with the 
                objectives of this title; and
                    ``(B) provide incentives and technical assistance 
                to assist local areas in more fully engaging all 
                employers, including small employers, in local 
                workforce investment activities, to make the workforce 
                investment system more relevant to the needs of area 
                businesses, and to better coordinate workforce 
                investment and economic development efforts to 
                contribute to the economic well-being of the local 
                area, as determined appropriate by the local board;
            ``(23) a description of the State strategy--
                    ``(A) for ensuring cooperation between 
                transportation providers, including public 
                transportation providers, and providers of workforce 
                investment activities; and
                    ``(B) for ensuring coordination among appropriate 
                State agencies and programs to make available skills 
                training, employment services and opportunities, and 
                career advancement activities, that will assist ex-
                offenders in reentering the workforce;
            ``(24) a description of how the State will assist local 
        areas in assuring physical and programmatic accessibility for 
        individuals with disabilities at one-stop centers;
            ``(25) a description of the process and methodology that 
        will be used by the State board to--
                    ``(A) review statewide policies and provide 
                guidance on the coordinated provision of services 
                through the one-stop delivery system described in 
                section 121;
                    ``(B) establish, in consultation with chief elected 
                officials and local boards, objective criteria and 
                procedures for use by local boards in periodically 
                assessing the effectiveness, physical and programmatic 
                accessibility, and continuous improvement of one-stop 
                centers and one-stop delivery systems as described in 
                section 121(g); and
                    ``(C) determine--
                            ``(i) one-stop partner program 
                        contributions for the costs of the 
                        infrastructure of one-stop centers under 
                        section 121(h)(2); and
                            ``(ii) the formula for allocating the funds 
                        described in section 121(h)(2) to local areas;
            ``(26) a description of the State strategy for ensuring 
        that activities carried out under this title are placing men 
        and women in jobs, education, or training that lead to 
        comparable pay; and
            ``(27) a description of the technical assistance available 
        to one-stop operators and providers of training services for 
        strategies to serve hard-to-serve populations and promote 
        placement in nontraditional employment.''.
    (c) Modifications to Plan.--Section 112(d) (29 U.S.C. 2822(d)) is 
amended--
            (1) by striking ``5-year period'' and inserting ``4-year 
        period''; and
            (2) by adding at the end the following: ``In addition, the 
        State shall submit the modifications to the State plan required 
        under subsection (a), under circumstances prescribed by the 
        Secretary that are due to changes in Federal law that 
        significantly affect elements of the State plan.''.

SEC. 432C. LOCAL WORKFORCE INVESTMENT AREAS.

    (a) Designation of Areas.--
            (1) Considerations.--Section 116(a)(1) (29 U.S.C. 
        2831(a)(1)) is amended--
                    (A) in subparagraph (A), by striking ``paragraphs 
                (2), (3), and (4)'' and inserting ``paragraphs (2) and 
                (3)''; and
                    (B) in subparagraph (B), by adding at the end the 
                following:
                            ``(vi) The extent to which such local areas 
                        will promote maximum effectiveness 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.--The Governor shall approve a 
                request for designation as a local area that is 
                submitted prior to the submission of the State plan, or 
                of a modification to the State plan relating to area 
                designation, from any area that--
                            ``(i) is a unit of general local government 
                        with a population of 500,000 or more, except 
                        that after the initial 2-year period following 
                        such designation pursuant to this clause that 
                        occurs after the date of enactment of the 
                        Workforce Investment Act Amendments of 2005, 
                        the Governor shall only be required to approve 
                        a request for designation from such area if 
                        such area--
                                    ``(I) performed successfully; and
                                    ``(II) sustained fiscal integrity;
                            ``(ii) was a local area under this title 
                        for the preceding 2-year period, if such local 
                        area--
                                    ``(I) performed successfully; and
                                    ``(II) sustained fiscal integrity;
                            ``(iii) is served by a rural concentrated 
                        employment program grant recipient, except that 
                        after the initial 2-year period following any 
                        such designation under the initial State plan 
                        submitted after the date of enactment of the 
                        Workforce Investment Act Amendments of 2005, 
                        the Governor shall only be required to approve 
                        a request for designation under this clause for 
                        such area if such area--
                                    ``(I) performed successfully; and
                                    ``(II) sustained fiscal integrity; 
                                or
                            ``(iv) was a local area under section 
                        116(a)(2)(C) (as in effect on the day before 
                        the date of enactment of the Workforce 
                        Investment Act Amendments of 2005), except that 
                        after the initial 2-year period following such 
                        designation pursuant to this clause that occurs 
                        after that date of enactment, the Governor 
                        shall only be required to approve a request for 
                        designation under this clause for such area if 
                        such area--
                                    ``(I) performed successfully; and
                                    ``(II) sustained fiscal integrity.
                    ``(B) Definitions.--For purposes of this paragraph:
                            ``(i) Performed successfully.--The term 
                        `performed successfully', when used with 
                        respect to a local area, means the local area 
                        performed at 80 percent or more of the adjusted 
                        level of performance for core indicators of 
                        performance described in section 136(b)(2)(A) 
                        for 2 consecutive years.
                            ``(ii) Sustained fiscal integrity.--The 
                        term `sustained fiscal integrity', used with 
                        respect to an area, means that the Secretary 
                        has not made a formal determination during the 
                        preceding 2-year period that either the grant 
                        recipient or the administrative entity of the 
                        area misexpended funds provided under this 
                        title due to willful disregard of the 
                        requirements of the Act involved, gross 
                        negligence, or failure to comply with accepted 
                        standards of administration.''.
            (3) Conforming amendments.--Section 116(a) (29 U.S.C. 
        2831(a)) is amended--
                    (A) by striking paragraph (3);
                    (B) by redesignating paragraphs (4) and (5) as 
                paragraph (3) and (4), respectively;
                    (C) in paragraph (3) (as redesignated by 
                subparagraph (B))--
                            (i) by striking ``(including temporary 
                        designation)''; and
                            (ii) by striking ``(v)'' and inserting 
                        ``(vi)''; and
                    (D) in paragraph (4) (as redesignated by 
                subparagraph (B))--
                            (i) by striking ``under paragraph (2) or 
                        (3)'' and inserting ``under paragraph (2)''; 
                        and
                            (ii) by striking the second sentence.
    (b) Single Local Area States.--Section 116(b) (29 U.S.C. 2831(b)) 
is amended to read as follows:
    ``(b) Single Local Area States.--
            ``(1) Continuation of previous designation.--
        Notwithstanding subsection (a)(2), the Governor of any State 
        that was a single local area for purposes of this title as of 
        July 1, 2002, may continue to designate the State as a single 
        local area for purposes of this title if the Governor 
        identifies the State as a local area in the State plan under 
        section 112(b)(5).
            ``(2) Redesignation.--The Governor of a State not described 
        in paragraph (1) may designate the State as a single local area 
        if, prior to the submission of the State plan or modification 
        to such plan so designating the State, no local area meeting 
        the requirements for automatic designation under subsection 
        (a)(2) requests such designation as a separate local area.
            ``(3) Effect on local plan.--In any case in which a State 
        is designated as a local area pursuant to this subsection, the 
        local plan prepared under section 118 for the area shall be 
        submitted to the Secretary for approval as part of the State 
        plan under section 112.''.
    (c) Regional Planning.--Section 116(c) (29 U.S.C. 2831(c)) is 
amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1) Planning.--
                    ``(A) In general.--As part of the process for 
                developing the State plan, a State may require regional 
                planning by local boards for a designated region in the 
                State. The State may require the local boards for a 
                designated region to participate in a regional planning 
                process that results in the establishment of regional 
                performance measures for workforce investment 
                activities authorized under this subtitle. The State, 
                after consultation with local boards and chief elected 
                officials, may require the local boards for the 
                designated region to prepare, submit, and obtain 
                approval of a single regional plan that incorporates 
                local plans for each of the local areas in the region, 
                as required under section 118. The State may award 
                regional incentive grants to the designated regions 
                that meet or exceed the regional performance measures 
                pursuant to section 134(a)(2)(B)(iii).
                    ``(B) Technical assistance.--If the State requires 
                regional planning as provided in subparagraph (A), the 
                State shall provide technical assistance and labor 
                market information to such local areas in the 
                designated regions to assist with such regional 
                planning and subsequent service delivery efforts.'';
            (2) in paragraph (2), by inserting ``information about the 
        skill requirements of existing and emerging industries and 
        industry clusters,'' after ``information about employment 
        opportunities and trends,''; and
            (3) in paragraph (3), by adding at the end the following: 
        ``Such services may be required to be coordinated with regional 
        economic development services and strategies.''.

SEC. 432D. LOCAL WORKFORCE INVESTMENT BOARDS.

    (a) Composition.--Section 117(b) (29 U.S.C. 2832(b)) is amended--
            (1) in paragraph (2)(A)--
                    (A) in clause (i), by striking subclause (II) and 
                inserting the following:
                                    ``(II) collectively, represent 
                                businesses with employment 
                                opportunities that reflect the 
                                employment opportunities of the local 
                                area, and include representatives of 
                                businesses that are in high-growth and 
                                emerging industries, and 
                                representatives of businesses, 
                                including small businesses, in the 
                                local area; and'';
                    (B) by striking clause (ii) and inserting the 
                following:
                            ``(ii)(I) a superintendent representing the 
                        local school districts involved or another 
                        high-level official from such districts;
                            ``(II) the president or highest ranking 
                        official of an institution of higher education 
                        serving the local area; and
                            ``(III) an administrator of local entities 
                        providing adult education and literacy 
                        activities in the local area;'';
                    (C) in clause (iv), by inserting ``, hard-to-serve 
                populations,'' after ``disabilities''; and
                    (D) by striking clause (vi) and inserting the 
                following:
                            ``(vi) if the local board does not 
                        establish or continue a youth council, 
                        representatives with experience serving out-of-
                        school youth, particularly out-of-school youth 
                        facing barriers to employment; and''; and
            (2) by adding at the end the following:
            ``(6) Special rule.--In the case that there are multiple 
        school districts or institutions of higher education serving a 
        local area, the representatives described in subclause (I) or 
        (II) of paragraph (2)(A)(ii), respectively, shall be appointed 
        from among individuals nominated by regional or local 
        educational agencies, institutions, or organizations 
        representing such agencies or institutions.''.
    (b) Authority of Board Members.--Section 117(b)(3) (29 U.S.C. 
2832(b)(3)) is amended--
            (1) in the heading, by inserting ``and representation'' 
        after ``Authority''; and
            (2) by adding at the end the following: ``The members of 
        the board shall represent diverse geographic sections within 
        the local area.''.
    (c) Conforming Amendment.--Section 117(c)(1)(C) (29 U.S.C. 
2832(c)(1)(C)) is amended by striking ``section 116(a)(2)(B)'' and 
inserting ``section 116(a)(2)(A)(ii)''.
    (d) Functions.--Section 117(d) (29 U.S.C. 2832(d)) is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (B)--
                            (i) by inserting ``(except as provided in 
                        section 123(b))'' after ``basis''; and
                            (ii) by inserting ``(where appropriate)'' 
                        after ``youth council''; and
                    (B) by adding at the end the following:
                    ``(E) Consumer choice requirements.--Consistent 
                with sections 122 and paragraphs (3) and (4) of 134(d), 
                the local board shall work to ensure there are 
                sufficient providers of intensive services and training 
                services serving the local area in a manner that 
                maximizes consumer choice, including providers with 
                expertise in assisting individuals with 
                disabilities.'';
            (2) in paragraph (4), by inserting ``, and shall ensure the 
        appropriate use and management of the funds provided under this 
        subtitle for such programs, activities, and system'' after 
        ``area'';
            (3) in paragraph (6)--
                    (A) by striking ``Employment statistics system'' 
                and inserting ``Workforce and labor market information 
                system''; and
                    (B) by striking ``employment statistics system'' 
                and inserting ``workforce and labor market information 
                system'';
            (4) in paragraph (8)--
                    (A) by inserting ``, including small employers,'' 
                after ``private sector employers''; and
                    (B) by striking the period and inserting ``, taking 
                into account the unique needs of small businesses.''; 
                and
            (5) by adding at the end the following:
            ``(9) Technology improvements.--The local board shall 
        develop strategies for technology improvements to facilitate 
        access to services, in remote areas, for services authorized 
        under this subtitle and carried out in the local area.''.
    (e) Conforming Amendment.--Section 117(f)(2) (29 U.S.C. 2832(f)(2)) 
is amended by striking ``described in section 134(c)''.
    (f) 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) Councils.--The local board may establish or continue councils 
to provide information and advice to assist the local board in carrying 
out activities under this title. Such councils may include--
            ``(1) a council composed of one-stop partners to advise the 
        local board on the operation of the one-stop delivery system 
        involved;
            ``(2) a youth council composed of experts and stakeholders 
        in youth programs to advise the local board on youth 
        activities; and
            ``(3) such other councils as the local board determines are 
        appropriate.''.
    (g) Alternative Entity Provision.--Section 117(i)(1) (29 U.S.C. 
2832(i)(1)) is amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``and paragraphs (1) and (2) of subsection (h),'';
            (2) by striking subparagraph (B) and inserting the 
        following:
                    ``(B) was in existence on August 7, 1998, pursuant 
                to State law; and'';
            (3) by striking subparagraph (C); and
            (4) by redesignating subparagraph (D) as subparagraph (C).

SEC. 432E. LOCAL PLAN.

    (a) Planning Cycle.--Section 118(a) (29 U.S.C. 2833(a)) is 
amended--
            (1) by striking ``5-year'' and inserting ``4-year''; and
            (2) by adding at the end the following: ``At the end of the 
        first 2-year period of the 4-year plan, the local board shall 
        review and, as needed, amend the 4-year plan to reflect labor 
        market and economic conditions.''.
    (b) Contents.--Section 118(b) (29 U.S.C. 2833(b)) is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (A), by striking ``and'' after 
                the semicolon;
                    (B) by striking subparagraph (B) and inserting the 
                following:
                    ``(B) a description of how the local board will 
                facilitate access to services provided through the one-
                stop delivery system, in remote areas, including 
                facilitating access through the use of technology; 
                and''; and
                    (C) by adding at the end the following:
                    ``(C) a description of how the local board will 
                ensure physical and programmatic accessibility for 
                individuals with disabilities at one-stop centers;'';
            (2) in paragraph (9), by striking ``; and'' and inserting a 
        semicolon;
            (3) by redesignating paragraph (10) as paragraph (14); and
            (4) by inserting after paragraph (9) the following:
            ``(10) a description of how the local board will coordinate 
        workforce investment activities carried out in the local area 
        with economic development activities carried out in the local 
        area;
            ``(11) a description of the strategies and services that 
        will be initiated in the local area to more fully engage all 
        employers, including small employers, in workforce investment 
        activities, to make the workforce investment system more 
        relevant to the needs of area businesses, and to better 
        coordinate workforce investment and economic development 
        efforts, which may include the implementation of innovative 
        initiatives such as incumbent worker training programs, 
        sectoral and industry cluster strategies, regional skills 
        alliance initiatives, career ladder programs, utilization of 
        effective business intermediaries, and other business services 
        and strategies designed to meet the needs of area employers and 
        contribute to the economic well-being of the local area, as 
        determined appropriate by the local board, consistent with the 
        objectives of this title;
            ``(12) a description of how the local board will expand 
        access to education and training services for eligible 
        individuals who are in need of such services through--
                    ``(A) the utilization of programs funded under this 
                title; and
                    ``(B) the increased leveraging of resources other 
                than those provided under this title, including tax 
                credits, private sector-provided training, and other 
                Federal, State, local, and private funds that are 
                brokered through the one-stop centers for training 
                services;
            ``(13) a description of how the local board will coordinate 
        workforce investment activities carried out in the local area 
        with the provision of transportation, including public 
        transportation, in the local area; and''.

SEC. 432F. 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) by striking subparagraph (A) and inserting the 
                following:
                    ``(A) Roles and responsibilities of one-stop 
                partners.--Each entity that carries out a program or 
                activities described in subparagraph (B) shall--
                            ``(i) provide access through the one-stop 
                        delivery system to the programs and activities 
                        carried out by the entity, including making the 
                        core services described in section 134(d)(2) 
                        that are applicable to the program of the 
                        entity available at the comprehensive one-stop 
                        centers (in addition to any other appropriate 
                        locations);
                            ``(ii) use a portion of the funds available 
                        to the program of the entity to maintain the 
                        one-stop delivery system, including payment of 
                        the infrastructure costs of one-stop centers in 
                        accordance with subsection (h);
                            ``(iii) enter into a local memorandum of 
                        understanding with the local board relating to 
                        the operation of the one-stop system that meets 
                        the requirements of subsection (c);
                            ``(iv) participate in the operation of the 
                        one-stop system consistent with the terms of 
                        the memorandum of understanding, the 
                        requirements of this title, and the 
                        requirements of the Federal laws authorizing 
                        the programs carried out by the entity; and
                            ``(v) provide representation on the State 
                        board to the extent provided under section 
                        111.'';
                    (B) in subparagraph (B)--
                            (i) by striking clause (v);
                            (ii) by redesignating clauses (vi) through 
                        (xii) as clauses (v) through (xi), 
                        respectively;
                            (iii) in clause (x) (as redesignated by 
                        clause (ii)), by striking ``and'' at the end;
                            (iv) in clause (xi) (as redesignated by 
                        clause (ii)), by striking the period and 
                        inserting ``; and''; and
                            (v) by adding at the end the following:
                            ``(xii) 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
                    (C) by adding at the end the following:
                    ``(C) Determination by the governor.--
                            ``(i) In general.--An entity that carries 
                        out programs referred to in subparagraph 
                        (B)(xii) shall be included in the one-stop 
                        partners for the local area, as a required 
                        partner, for purposes of this title unless the 
                        Governor of the State provides the notification 
                        described in clause (ii).
                            ``(ii) Notification.--The notification 
                        referred to in clause (i) is a notification 
                        that--
                                    ``(I) is made in writing of a 
                                determination by the Governor not to 
                                include such entity in the one-stop 
                                partners described in clause (i); and
                                    ``(II) is provided to the Secretary 
                                and the Secretary of Health and Human 
                                Services.''.
            (2) Additional partners.--
                    (A) In general.--Section 121(b)(2)(A) (29 U.S.C. 
                2841(b)(2)(A)) is amended to read as follows:
                    ``(A) In general.--With the approval of the local 
                board and chief elected official, in addition to the 
                entities described in paragraph (1), other entities 
                that carry out human resource programs described in 
                subparagraph (B) may be one-stop partners and carry out 
                the responsibilities described in paragraph (1)(A).''.
                    (B) Additional partners.--Section 121(b)(2)(B) (29 
                U.S.C. 2841(b)(2)(B)) is amended by striking clauses 
                (i) through (iii) and inserting the following:
                            ``(i) employment and training programs 
                        administered by the Social Security 
                        Administration, including the Ticket to Work 
                        and Self-Sufficiency program established under 
                        section 1148 of the Social Security Act (42 
                        U.S.C. 1320b-19);
                            ``(ii) employment and training programs 
                        carried out by the Small Business 
                        Administration;
                            ``(iii) programs authorized under section 
                        6(d)(4) of the Food Stamp Act of 1977 (7 U.S.C. 
                        2015(d)(4));''.
    (b) Local Memorandum of Understanding.--Section 121(c)(2)(A) (29 
U.S.C. 2841(c)(2)(A)) is amended to read as follows:
                    ``(A) provisions describing--
                            ``(i) the services to be provided through 
                        the one-stop delivery system consistent with 
                        the requirements of this section, including the 
                        manner in which the services will be 
                        coordinated through such system;
                            ``(ii) how the costs of such services and 
                        the operating costs of such system will be 
                        funded to provide a stable and equitable 
                        funding stream for ongoing one-stop system 
                        operations, including the funding of the 
                        infrastructure costs of one-stop centers in 
                        accordance with subsection (h);
                            ``(iii) methods of referral of individuals 
                        between the one-stop operator and the one-stop 
                        partners for appropriate services and 
                        activities;
                            ``(iv) methods to ensure the needs of hard-
                        to-serve populations are addressed in providing 
                        access to services through the one-stop system; 
                        and
                            ``(v) the duration of the memorandum of 
                        understanding and the procedures for amending 
                        the memorandum during the term of the 
                        memorandum, and assurances that such memorandum 
                        shall be reviewed not less than once every 2-
                        year period to ensure appropriate funding and 
                        delivery of services; and''.
    (c) Conforming Amendment.--Section 121(d)(2) (29 U.S.C. 2841(d)(2)) 
is amended by striking ``section 134(c)'' and inserting ``section 
121(e)''.
    (d) Provision of Services.--
            (1) Elimination of provisions concerning established 
        systems.--Section 121 (29 U.S.C. 2841) is amended by striking 
        subsection (e).
            (2) Redesignation.--Subtitle B of title I is amended--
                    (A) in section 134 (29 U.S.C. 2864), by 
                redesignating subsection (c) as subsection (e); and
                    (B) by transferring that subsection (e) so that the 
                subsection appears after subsection (d) of section 121.
            (3) One-stop delivery systems.--Paragraph (1) of section 
        121(e) (29 U.S.C. 2841(e)) (as redesignated by paragraph (2)) 
        is amended--
                    (A) in subparagraph (A), by striking ``subsection 
                (d)(2)'' and inserting ``section 134(d)(2)'';
                    (B) in subparagraph (B)--
                            (i) by striking ``subsection (d)'' and 
                        inserting ``section 134(d)'';
                            (ii) by striking ``individual training 
                        accounts'' and inserting ``career scholarship 
                        accounts''; and
                            (iii) by striking ``subsection (d)(4)(G)'' 
                        and inserting ``section 134(d)(4)(G)'';
                    (C) in subparagraph (C), by striking ``subsection 
                (e)'' and inserting ``section 134(e)'';
                    (D) in subparagraph (D), by striking ``section 
                121(b)'' and inserting ``subsection (b)''; and
                    (E) in subparagraph (E), by striking ``information 
                described in section 15'' and inserting ``data, 
                information, and analysis described in section 15(a)''.
    (e) Continuous Improvement of One-Stop Centers.--Section 121 (29 
U.S.C. 2841) is amended by adding at the end the following:
    ``(g) Continuous Improvement of One-Stop Centers.--
            ``(1) In general.--The State board, in consultation with 
        chief local elected officials and local boards, shall establish 
        objective criteria and procedures for use by local boards in 
        periodically assessing the effectiveness, physical and 
        programmatic accessibility, and continuous improvement of one-
        stop centers and one-stop delivery systems.
            ``(2) Criteria.--The procedures and criteria developed 
        under this subsection shall include minimum standards relating 
        to the scope and degree of service coordination achieved by the 
        one-stop delivery system with respect to the programs 
        administered by the one-stop partners at the one-stop centers, 
        consistent with the guidelines and guidance provided by the 
        Governor and by the State board, in consultation with the chief 
        elected official and local boards, for such partners' 
        participation under subsections (h)(1)(B) and subsection (i), 
        respectively, and such other factors relating to the quality, 
        accessibility, and effectiveness of the one-stop delivery 
        system as the State board determines to be appropriate.
            ``(3) Local boards.--Consistent with the criteria developed 
        by the State, the local board may develop additional criteria 
        of higher standards to respond to local labor market and 
        demographic conditions and trends.
    ``(h) Funding of One-Stop Infrastructure.--
            ``(1) In general.--
                    ``(A) Options for infrastructure funding.--
                            ``(i) Local options.--The local board, 
                        chief elected officials, and one-stop partners 
                        in a local area may choose to fund the costs of 
                        the infrastructure of one-stop centers 
                        through--
                                    ``(I) methods described in the 
                                local memorandum of understanding, if, 
                                the local board, chief elected 
                                officials, and one-stop partners agree 
                                to such methods; or
                                    ``(II) the State infrastructure 
                                funding mechanism described in 
                                paragraph (2).
                            ``(ii) Failure to reach agreement on 
                        funding methods.--If, as of July 1, 2005, the 
                        local board, chief elected officials, and one-
                        stop partners in a local area fail to reach 
                        agreement on methods of sufficient funding of 
                        the infrastructure costs of one-stop centers, 
                        as determined by the local area, the State 
                        infrastructure funding mechanism described in 
                        paragraph (2) shall be applicable to such local 
                        area.
                    ``(B) Guidance for infrastructure funding.--In 
                addition to carrying out the requirements relating to 
                the State mechanism for one-stop center infrastructure 
                funding described in paragraph (2), the Governor, after 
                consultation with chief local elected officials, local 
                boards, and the State board, and consistent with the 
                guidelines provided by the State board under subsection 
                (i), shall provide--
                            ``(i) guidelines for State administered 
                        one-stop partner programs in determining such 
                        programs' contributions to and participation in 
                        the one-stop delivery system, including funding 
                        for the costs of infrastructure as defined in 
                        paragraph (2)(D), negotiated pursuant to the 
                        local memorandum of understanding under 
                        subsection (c); and
                            ``(ii) guidance to assist local areas in 
                        identifying equitable and stable alternative 
                        methods of funding of the costs of the 
                        infrastructure of one-stop centers in local 
                        areas.
            ``(2) State one-stop infrastructure funding.--
                    ``(A) Partner contributions.--
                            ``(i) In general.--Subject to clause (iii), 
                        a portion determined under clause (ii) of the 
                        Federal funds provided to the State and areas 
                        within the State under the Federal laws 
                        authorizing the programs described in 
                        subsection (b)(1) and administered by one-stop 
                        partners for a fiscal year shall be provided to 
                        the Governor from such programs to assist in 
                        paying the costs of infrastructure of one-stop 
                        centers in those local areas of the State not 
                        funded under the option described in paragraph 
                        (1)(A)(i)(I).
                            ``(ii) Determination of governor.--
                                    ``(I) In general.--Subject to 
                                subclause (II) and clause (iii), the 
                                Governor, after consultation with chief 
                                local elected officials, local boards, 
                                and the State board, shall determine 
                                the portion of funds to be provided 
                                under clause (i) by each one-stop 
                                partner from each program described in 
                                clause (i). In making such 
                                determination, the Governor shall 
                                calculate the proportionate use of the 
                                one-stop centers for the purpose of 
                                determining funding contributions 
                                pursuant to clause (i)(II) or (ii) of 
                                paragraph (1)(A) by each partner, and 
                                the costs of administration for 
                                purposes not related to one-stop 
                                centers for each partner. The Governor 
                                shall exclude from such determination 
                                the portion of funds and use of one-
                                stop centers attributable to the 
                                programs of one-stop partners for those 
                                local areas of the State where the 
                                infrastructure of one-stop centers is 
                                funded under the option described in 
                                paragraph (1)(A)(i)(I).
                                    ``(II) Special rule.--In a State in 
                                which the State constitution places 
                                policymaking authority that is 
                                independent of the authority of the 
                                Governor in an entity or official with 
                                respect to the funds provided for adult 
                                education and literacy activities 
                                authorized under title II and for 
                                postsecondary vocational and technical 
                                education activities authorized under 
                                the Carl D. Perkins Vocational and 
                                Technical Education Act of 1998 (20 
                                U.S.C. 2301 et seq.), or vocational 
                                rehabilitation services offered under 
                                the Rehabilitation Act of 1973 (29 
                                U.S.C. 701 et seq.), the determination 
                                described in subclause (I) with respect 
                                to the programs authorized under that 
                                title and those Acts shall be made by 
                                the chief officer of the entity with 
                                such authority in consultation with the 
                                Governor.
                                    ``(III) Appeal by one-stop 
                                partners.--The Governor shall establish 
                                a procedure for the one-stop partner 
                                administering a program described in 
                                subsection (b) to appeal a 
                                determination regarding the portion of 
                                funds to be contributed under this 
                                paragraph on the basis that such 
                                determination is inconsistent with the 
                                criteria described in the State plan or 
                                with the requirements of this 
                                paragraph. Such procedure shall ensure 
                                prompt resolution of the appeal.
                            ``(iii) 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 program limitations 
                                with respect to the portion of funds 
                                under such program that may be used for 
                                administration.
                                    ``(II) Cap on required 
                                contributions.--
                                            ``(aa) WIA formula programs 
                                        and employment service.--The 
                                        portion of funds required to be 
                                        contributed under clause 
                                        (i)(II) or (ii) of paragraph 
                                        (1)(A) by the programs 
                                        authorized under chapters 4 and 
                                        5 and under the Wagner-Peyser 
                                        Act (29 U.S.C. 49 et seq.) 
                                        shall not be in excess of 3 
                                        percent of the amount of 
                                        Federal funds provided to carry 
                                        out each such program in the 
                                        State for a fiscal year.
                                            ``(bb) Other one-stop 
                                        partners.--The portion of funds 
                                        required to be contributed 
                                        under clause (i)(II) or (ii) of 
                                        paragraph (1)(A) by a one-stop 
                                        partner from a program 
                                        described in subsection (b)(1) 
                                        other than the programs 
                                        described under item (aa) shall 
                                        not be in excess of 1\1/2\ 
                                        percent of the amount of 
                                        Federal funds provided to carry 
                                        out such program in the State 
                                        for a fiscal year.
                                            ``(cc) Special rule.--
                                        Notwithstanding items (aa) and 
                                        (bb), an agreement, including a 
                                        local memorandum of 
                                        understanding, entered into 
                                        prior to the date of enactment 
                                        of the Workforce Investment Act 
                                        Amendments of 2005 by an entity 
                                        regarding contributions under 
                                        this title that permits the 
                                        percentages described in such 
                                        items to be exceeded, may 
                                        continue to be in effect until 
                                        terminated by the parties.
                                            ``(dd) Vocational 
                                        rehabilitation.--
                                        Notwithstanding items (aa) and 
                                        (bb), an entity administering a 
                                        program under title I of the 
                                        Rehabilitation Act of 1973 (29 
                                        U.S.C. 720 et seq.) shall not 
                                        be required to provide, for the 
                                        purposes of this paragraph, an 
                                        amount in excess of--

                                                    ``(AA) 0.75 percent 
                                                of the amount provided 
                                                for such program in the 
                                                State for the second 
                                                program year that 
                                                begins after the date 
                                                of enactment of the 
                                                Workforce Investment 
                                                Act Amendments of 2005;

                                                    ``(BB) 1.0 percent 
                                                of the amount provided 
                                                for such program in the 
                                                State for the third 
                                                program year that 
                                                begins after such date;

                                                    ``(CC) 1.25 percent 
                                                of the amount provided 
                                                for such program in the 
                                                State for the fourth 
                                                program year that 
                                                begins after such date; 
                                                and

                                                    ``(DD) 1.5 percent 
                                                of the amount provided 
                                                for such program in the 
                                                State for the fifth and 
                                                each succeeding program 
                                                year that begins after 
                                                such date.

                                    ``(III) Federal direct spending 
                                programs.--An entity administering a 
                                program funded with direct spending as 
                                defined in section 250(c)(8) of the 
                                Balanced Budget and Emergency Deficit 
                                Control Act of 1985 (2 U.S.C. 
                                900(c)(8)) shall not be required to 
                                provide, for purposes of this 
                                paragraph, an amount in excess of the 
                                amount determined to be equivalent to 
                                the cost of the proportionate use of 
                                the one-stop centers for such program 
                                in the State.
                                    ``(IV) Native american programs.--
                                Native American programs established 
                                under section 166 shall not be subject 
                                to the provisions of this subsection or 
                                subsection (i). The method for 
                                determining the appropriate portion of 
                                funds to be provided by such Native 
                                American programs to pay for the costs 
                                of infrastructure of a one-stop center 
                                shall be determined as part of the 
                                development of the memorandum of 
                                understanding under subsection (c) for 
                                the one-stop center and shall be stated 
                                in the memorandum.
                    ``(B) Allocation by governor.--From the funds 
                provided under subparagraph (A), the Governor shall 
                allocate the funds to local areas in accordance with 
                the formula established under subparagraph (C) for the 
                purposes of assisting in paying the costs of 
                infrastructure of one-stop centers.
                    ``(C) Allocation formula.--The State board shall 
                develop a formula to be used by the Governor to 
                allocate the funds provided under subparagraph (A) to 
                local areas not funding infrastructure costs under the 
                option described in paragraph (1)(A)(i)(I). The formula 
                shall be based on factors including the number of one-
                stop centers in a local area, the population served by 
                such centers, the services provided by such centers, 
                and other factors relating to the performance of such 
                centers that the State board determines are 
                appropriate.
                    ``(D) Costs of infrastructure.--In this subsection, 
                the term `costs of infrastructure', used with respect 
                to a one-stop center, means the nonpersonnel costs that 
                are necessary for the general operation of the one-stop 
                center, including the rental costs of the facilities, 
                the costs of utilities and maintenance, equipment 
                (including adaptive technology for individuals with 
                disabilities), and technology to facilitate remote 
                access to the one-stop center's strategic planning 
                activities, and common outreach activities.
    ``(i) Other Funds.--
            ``(1) In general.--Subject to the memorandum of 
        understanding described in subsection (c) for the one-stop 
        delivery system involved, in addition to the funds provided to 
        carry out subsection (h), a portion of funds made available 
        under Federal law authorizing the programs described in 
        subsection (b) and administered by one-stop partners, or the 
        noncash resources available under such programs, shall be used 
        to pay the additional costs relating to the operation of the 
        one-stop delivery system that are not paid from the funds 
        provided under subsection (h), as determined in accordance with 
        paragraph (2), to the extent not inconsistent with the Federal 
        law involved. Such costs shall include the costs of the 
        provision of core services described in section 134(d)(2) 
        applicable to each program and may include common costs that 
        are not paid from the funds provided under subsection (h).
            ``(2) Determination and guidance.--The method for 
        determining the appropriate portion of funds and noncash 
        resources to be provided by each program under paragraph (1) 
        for a one-stop center shall be determined as part of the 
        development of the memorandum of understanding under subsection 
        (c) for the one-stop center and shall be stated in the 
        memorandum. The State board shall provide guidance to 
        facilitate the determination of an appropriate allocation of 
        the funds and noncash resources in local areas.''.

SEC. 432G. 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, after consultation with the State 
board, shall establish criteria and procedures regarding the 
eligibility of providers of training services described in section 
134(d)(4) (referred to in this section as `training services') to 
receive funds provided under section 133(b) for the provision of 
training services.
    ``(b) Criteria.--
            ``(1) In general.--The criteria established by the Governor 
        pursuant to subsection (a) shall take into account--
                    ``(A) the performance of providers of training 
                services with respect to the performance measures 
                described in section 136 or other appropriate measures 
                of performance outcomes for those individuals receiving 
                training services under this subtitle (taking into 
                consideration the characteristics of the population 
                served and relevant economic conditions);
                    ``(B) the need to ensure access to training 
                services throughout the State, including any rural 
                areas;
                    ``(C) the information such providers are required 
                to report to State agencies with respect to Federal and 
                State programs (other than the program carried out 
                under this subtitle), including one-stop partner 
                programs;
                    ``(D) the requirements for State licensing of 
                providers of training services, and the licensing 
                status of each provider of training services if 
                applicable;
                    ``(E) to the extent practicable, encouraging the 
                use of industry-recognized standards and certification;
                    ``(F) the ability to provide training services to 
                hard-to-serve populations, including individuals with 
                disabilities; and
                    ``(G) such other factors as the Governor determines 
                are appropriate to ensure--
                            ``(i) the quality of services provided;
                            ``(ii) the accountability of the providers;
                            ``(iii) that the one-stop centers in the 
                        State will ensure that such providers meet the 
                        needs of local employers and participants;
                            ``(iv) the informed choice of participants 
                        under chapter 5; and
                            ``(v) that the collection of information 
                        required is not unduly burdensome or costly to 
                        providers.
            ``(2) Information and renewal.--The criteria established by 
        the Governor shall require that a provider of training services 
        submit appropriate, accurate, and timely information to the 
        State for purposes of carrying out subsection (d). The criteria 
        shall also provide for annual review and renewal of eligibility 
        under this section for providers of training services.
            ``(3) Local criteria.--A local board in the State may 
        establish criteria in addition to the criteria established by 
        the Governor, or may require higher levels of performance than 
        required under the criteria established by the Governor, for 
        purposes of determining the eligibility of providers of 
        training services to receive funds described in subsection (a) 
        to provide the services in the local area involved.
    ``(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 provided under section 
133(b) for the provision of training services, and identify the 
respective roles of the State and local areas in receiving and 
reviewing the applications and in making determinations of such 
eligibility based on the criteria established under this section. The 
procedures shall also establish a process for a provider of training 
services to appeal a denial or termination of eligibility under this 
section, that includes an opportunity for a hearing and prescribes 
appropriate time limits to ensure prompt resolution of the appeal.
    ``(d) Information To Assist Participants in Choosing Providers.--
            ``(1) In general.--In order to facilitate and assist 
        participants in choosing employment and training activities 
        under chapter 5 and in choosing providers of training services, 
        the Governor shall ensure that an appropriate list of providers 
        determined to be eligible under this section in the State, 
        accompanied by appropriate information provided by providers of 
        training services in the State in accordance with subsection 
        (b) and such other information as the Governor determines is 
        appropriate, including information on program costs for 
        participants in applicable programs, is provided to the one-
        stop delivery system in the State. The list and the information 
        shall be made available to such participants and to members of 
        the public through the one-stop delivery system in the State.
            ``(2) Special rule.--An entity that carries out programs 
        under the Act of August 16, 1937 (commonly known as the 
        `National Apprenticeship Act', 50 Stat. 664, chapter 663; 29 
        U.S.C. 50 et seq.) shall be included on the list of eligible 
        providers described in paragraph (1) for so long as such entity 
        remains certified by the Department of Labor.
    ``(e) Enforcement.--
            ``(1) In general.--The criteria and procedures established 
        under this section shall provide the following:
                    ``(A) Intentionally supplying inaccurate 
                information.--Upon a determination, by an individual or 
                entity specified in the criteria or procedures, that a 
                provider of training services, or individual providing 
                information on behalf of the provider, intentionally 
                supplied inaccurate information under this section, the 
                eligibility of such provider to receive funds under 
                chapter 5 shall be terminated for a period of time that 
                is not less than 2 years.
                    ``(B) Substantial violations.--Upon a 
                determination, by an individual or entity specified in 
                the criteria or procedures, that a provider of training 
                services substantially violated any requirement under 
                this title, the eligibility of such provider to receive 
                funds under the program involved may be terminated, or 
                other appropriate action may be taken.
                    ``(C) Repayment.--A provider of training services 
                whose eligibility is terminated under subparagraph (A) 
                or (B) shall be liable for the repayment of funds 
                received under chapter 5 during a period of 
                noncompliance described in such subparagraph.
            ``(2) Construction.--Paragraph (1) shall be construed to 
        provide remedies and penalties that supplement, but do not 
        supplant, other civil and criminal remedies and penalties.
    ``(f) Agreements With Other States.--States may enter into 
agreements, on a reciprocal basis, to permit eligible providers of 
training services to accept career scholarship accounts provided in 
another State.
    ``(g) Opportunity To Submit Comments.--In establishing criteria, 
procedures, and information required under this section, the Governor 
shall provide an opportunity for interested members of the public to 
make recommendations and submit comments regarding such criteria, 
procedures, and information.
    ``(h) Transition Period for Implementation.--The requirements of 
this section shall be implemented not later than December 31, 2005. In 
order to facilitate early implementation of this section, the Governor 
may establish transition procedures under which providers eligible to 
provide training services under chapter 5 as such chapter was in effect 
on the day before the date of enactment of the Workforce Investment Act 
Amendments of 2005 may continue to be eligible to provide such services 
until December 31, 2005, or until such earlier date as the Governor 
determines to be appropriate.
    ``(i) On-the-Job Training or Customized Training Exception.--
            ``(1) In general.--Providers of on-the-job training or 
        customized training shall not be subject to the requirements of 
        subsections (a) through (h).
            ``(2) Collection and dissemination of information.--A one-
        stop operator in a local area shall collect such performance 
        information from on-the-job training and customized training 
        providers as the Governor may require, determine whether the 
        providers meet such performance criteria as the Governor may 
        require, and disseminate information identifying providers that 
        meet the criteria as eligible providers, and the performance 
        information, through the one-stop delivery system. Providers 
        determined to meet the criteria shall be considered to be 
        identified as eligible providers of training services.''.

SEC. 432H. 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 described in section 
112 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 is an insufficient 
number of eligible providers of youth activities in the local area 
involved (such as a rural area) for grants and contracts to be awarded 
on a competitive basis under subsection (a).''.

SEC. 432I. YOUTH ACTIVITIES.

    (a) State Allotments.--Section 127 (29 U.S.C. 2852) is amended--
            (1) in subsection (a)(1), by striking ``opportunity'' and 
        inserting ``challenge''; and
            (2) by striking subsection (b) and inserting the following:
    ``(b) Allotment Among States.--
            ``(1) Youth activities.--
                    ``(A) Youth challenge grants.--
                            ``(i) In general.--For each fiscal year in 
                        which the amount appropriated under section 
                        137(a) exceeds $1,000,000,000, the Secretary 
                        shall reserve a portion of the amount to 
                        provide youth challenge grants and other 
                        activities under section 169 (relating to youth 
                        challenge grants) and provide youth activities 
                        under section 167 (relating to migrant and 
                        seasonal farmworker programs).
                            ``(ii) Portion.--The portion referred to in 
                        clause (i) shall equal, for a fiscal year--
                                    ``(I) except as provided in 
                                subclause (II), the difference obtained 
                                by subtracting $1,000,000,000 from the 
                                amount appropriated under section 
                                137(a) for the fiscal year; or
                                    ``(II) for any fiscal year in which 
                                the amount is $1,250,000,000 or 
                                greater, $250,000,000.
                            ``(iii) Youth activities for farmworkers.--
                        The Secretary shall reserve the greater of 
                        $10,000,000 or 4 percent of the portion 
                        described in clause (i) for a fiscal year to 
                        provide youth activities under section 167.
                            ``(iv) Native americans.--From the 
                        remainder of the amount appropriated under 
                        section 137(a) for each fiscal year the 
                        Secretary shall reserve not more than 1\1/2\ 
                        percent of such amount to provide youth 
                        activities under section 166 (relating to 
                        Native Americans).
                    ``(B) Outlying areas.--
                            ``(i) In general.--From the amount made 
                        available under subsection (a)(2) for each 
                        fiscal year the Secretary shall reserve not 
                        more than \1/4\ of 1 percent of the amount 
                        appropriated under section 137(a) for the 
                        fiscal year to provide assistance to the 
                        outlying areas to carry out youth activities 
                        and statewide workforce investment activities.
                            ``(ii) Limitation for freely associated 
                        states.--
                                    ``(I) Competitive grants.--The 
                                Secretary shall use funds described in 
                                clause (i) to award grants to Guam, 
                                American Samoa, the Commonwealth of the 
                                Northern Mariana Islands, and the 
                                Freely Associated States to carry out 
                                youth activities and statewide 
                                workforce investment activities.
                                    ``(II) Award basis.--The Secretary 
                                shall award grants pursuant to 
                                subclause (I) on a competitive basis 
                                and pursuant to the recommendations of 
                                experts in the field of employment and 
                                training, working through the Pacific 
                                Region Educational Laboratory in 
                                Honolulu, Hawaii.
                                    ``(III) Assistance requirements.--
                                Any Freely Associated State that 
                                desires to receive assistance under 
                                this subparagraph shall submit an 
                                application to the Secretary and shall 
                                include in the application for 
                                assistance--
                                            ``(aa) information 
                                        demonstrating that the Freely 
                                        Associated State will meet all 
                                        conditions that apply to States 
                                        under this title;
                                            ``(bb) an assurance that, 
                                        notwithstanding any other 
                                        provision of this title, the 
                                        Freely Associated State will 
                                        use such assistance only for 
                                        the direct provision of 
                                        services; and
                                            ``(cc) such other 
                                        information and assurances as 
                                        the Secretary may require.
                                    ``(IV) Administrative costs.--The 
                                Secretary may provide not more than 5 
                                percent of the funds made available for 
                                grants under subclause (I) to pay the 
                                administrative costs of the Pacific 
                                Region Educational Laboratory in 
                                Honolulu, Hawaii, regarding activities 
                                assisted under this clause.
                            ``(iii) Additional requirement.--The 
                        provisions of Public Law 95-134, permitting the 
                        consolidation of grants by the outlying areas, 
                        shall not apply to assistance provided to those 
                        areas, including the Freely Associated States, 
                        under this subparagraph.
                    ``(C) States.--
                            ``(i) In general.--From the remainder of 
                        the amount appropriated under section 137(a) 
                        for a fiscal year that exists after the 
                        Secretary determines the amounts to be reserved 
                        under subparagraphs (A) and (B), the Secretary 
                        shall allot to the States--
                                    ``(I) an 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 Investment Act 
                                Amendments of 2005), in accordance with 
                                the requirements of such section 
                                127(b)(1)(C); and
                                    ``(II) the amount of the remainder, 
                                if any, in excess of the amount 
                                referred to in subclause (I), in 
                                accordance with clause (ii).
                            ``(ii) Formula.--Subject to clauses (iii) 
                        and (iv), of the amount described in clause 
                        (i)(II)--
                                    ``(I) 33\1/3\ percent shall be 
                                allotted on the basis of the relative 
                                number of individuals in the civilian 
                                labor force who are ages 16 through 21 
                                in each State, compared to the total 
                                number of individuals in the civilian 
                                labor force who are ages 16 through 21 
                                in all States;
                                    ``(II) 33\1/3\ percent shall be 
                                allotted on the basis of the relative 
                                number of unemployed individuals in 
                                each State, compared to the total 
                                number of unemployed individuals in all 
                                States; and
                                    ``(III) 33\1/3\ percent shall be 
                                allotted on the basis of the relative 
                                number of disadvantaged youth who are 
                                ages 16 through 21 in each State, 
                                compared to the total number of 
                                disadvantaged youth who are ages 16 
                                through 21 in all States.
                            ``(iii) Minimum and maximum percentages.--
                                    ``(I) Minimum percentage.--The 
                                Secretary shall ensure that no State 
                                shall receive an allotment percentage 
                                under this subparagraph for a fiscal 
                                year that is less than 90 percent of 
                                the allotment percentage of the State 
                                for the preceding fiscal year.
                                    ``(II) Maximum percentage.--Subject 
                                to subclause (I), the Secretary shall 
                                ensure that no State shall receive an 
                                allotment percentage under this 
                                subparagraph for a fiscal year that is 
                                more than 130 percent of the allotment 
                                percentage of the 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 subparagraph that is less than the 
                        total of--
                                    ``(I) \3/10\ of 1 percent of 
                                $1,000,000,000 of the remainder 
                                described in clause (i) for the fiscal 
                                year; and
                                    ``(II) if the remainder described 
                                in clause (i) for the fiscal year 
                                exceeds $1,000,000,000, \2/5\ of 1 
                                percent of the excess.
            ``(2) Definitions.--For the purposes of paragraph (1):
                    ``(A) Allotment percentage.--The term `allotment 
                percentage', used with respect to fiscal year 2006 or a 
                subsequent fiscal year, means a percentage of the 
                remainder described in paragraph (1)(C)(i) that is 
                received by the State involved through an allotment 
                made under this subsection for the fiscal year. The 
                term, used with respect to fiscal year 2005, means the 
                percentage of the amounts allotted to States under this 
                chapter (as in effect on the day before the date of 
                enactment of the Workforce Investment Act Amendments of 
                2005) that is received by the State involved for fiscal 
                year 2003.
                    ``(B) Disadvantaged youth.--Subject to paragraph 
                (3), the term `disadvantaged youth' means an individual 
                who is age 16 through 21 who received an income, or is 
                a member of a family that received a total family 
                income, that, in relation to family size, does not 
                exceed the higher of--
                            ``(i) the poverty line; or
                            ``(ii) 70 percent of the lower living 
                        standard income level.
                    ``(C) Freely associated state.--The term `Freely 
                Associated State' means the Republic of the Marshall 
                Islands, the Federated States of Micronesia, and the 
                Republic of Palau.
            ``(3) Special rule.--For purposes of the formula specified 
        in paragraph (1)(C), the Secretary shall, as appropriate and to 
        the extent practicable, exclude college students and members of 
        the Armed Forces from the determination of the number of 
        disadvantaged youth.''.
    (b) Reallotment.--
            (1) Amendment.--Section 127(c) (29 U.S.C. 2852(c)) is 
        amended--
                    (A) by striking paragraph (2) and inserting the 
                following:
            ``(2) Amount.--The amount available for reallotment for a 
        program year is equal to the amount by which the unexpended 
        balance at the end of the program year prior to the program 
        year for which the determination is made exceeds 30 percent of 
        the total amount of funds available to the State under this 
        section during such prior program year (including amounts 
        allotted to the State in all prior program years that remained 
        available). For purposes of this paragraph, the unexpended 
        balance is the amount that is the difference between--
                    ``(A) the total amount of funds available to the 
                State under this section during the program year prior 
                to the program year for which the determination is made 
                (including amounts allotted to the State in all prior 
                program years that remained available); and
                    ``(B) the accrued expenditures during such prior 
                program year.'';
                    (B) in paragraph (3)--
                            (i) by striking ``for the prior program 
                        year'' and inserting ``for the program year for 
                        which the determination is made''; and
                            (ii) by striking ``such prior program 
                        year'' and inserting ``such program year'';
                    (C) by striking paragraph (4) and inserting the 
                following:
            ``(4) Eligibility.--For purposes of this subsection, an 
        eligible State means a State that does not have an amount 
        available for reallotment under paragraph (2) for the program 
        year for which the determination under paragraph (2) is 
        made.''; and
                    (D) in paragraph (5), by striking ``obligation'' 
                and inserting ``accrued expenditure''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect for the program year that begins after the 
        date of enactment of this Act.
    (c) Within State Allocations.--
            (1) Reservation for statewide activities.--Section 128(a) 
        (29 U.S.C. 2853(a)) is amended to read as follows:
    ``(a) Reservations for Statewide Activities.--
            ``(1) In general.--The Governor of a State shall reserve 
        not more than 15 percent of each of the amounts allotted to the 
        State under section 127(b)(1)(C) and paragraphs (1)(B) and 
        (2)(B) of section 132(b) for a fiscal year for statewide 
        workforce investment activities.
            ``(2) Use of funds.--Regardless of whether the reserved 
        amounts were allotted under section 127(b)(1)(C), or under 
        paragraph (1)(B) or (2)(B) of section 132(b), the Governor may 
        use the reserved amounts to carry out statewide activities 
        under section 129(b) or statewide employment and training 
        activities, for adults or dislocated workers, under section 
        134(a).''.
            (2) Within state allocation.--Section 128(b) (29 U.S.C. 
        2853(b)) is amended to read as follows:
    ``(b) Within State Allocations.--
            ``(1) In general.--Of the amount allotted to the State 
        under section 127(b)(1)(C) and not reserved under subsection 
        (a)(1)--
                    ``(A) a portion equal to not less than 80 percent 
                of such amount shall be allocated by the Governor to 
                local areas in accordance with paragraph (2); and
                    ``(B) a portion equal to not more than 20 percent 
                of such amount may be allocated by the Governor to 
                local areas in accordance with paragraph (3).
            ``(2) Established formula.--
                    ``(A) In general.--Of the portion described in 
                paragraph (1)(A), the Governor shall allocate--
                            ``(i) 33\1/3\ percent on the basis of the 
                        relative number of individuals in the civilian 
                        labor force who are ages 16 through 21 in each 
                        local area, compared to the total number of 
                        individuals in the civilian labor force who are 
                        ages 16 through 21 in all local areas in the 
                        State;
                            ``(ii) 33\1/3\ 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; and
                            ``(iii) 33\1/3\ percent on the basis of the 
                        relative number of disadvantaged youth who are 
                        ages 16 through 21 in each local area, compared 
                        to the total number of disadvantaged youth who 
                        are ages 16 through 21 in all local areas in 
                        the State.
                    ``(B) Minimum and maximum percentages.--
                            ``(i) Minimum percentage.--The Governor 
                        shall ensure that no local area shall receive 
                        an allocation percentage under this paragraph 
                        for a fiscal year that is less than 90 percent 
                        of the allocation percentage of the local area 
                        for the preceding fiscal year.
                            ``(ii) Maximum percentage.--Subject to 
                        clause (i), the Governor shall ensure that no 
                        local area shall receive an allocation 
                        percentage under this paragraph for a fiscal 
                        year that is more than 130 percent of the 
                        allocation percentage of the local area for the 
                        preceding fiscal year.
                    ``(C) Definitions.--In this paragraph:
                            ``(i) Allocation percentage.--The term 
                        `allocation percentage', used with respect to 
                        fiscal year 2006 or a subsequent fiscal year, 
                        means a percentage of the portion described in 
                        paragraph (1)(A) that is received by the local 
                        area involved through an allocation made under 
                        this paragraph for the fiscal year. The term, 
                        used with respect to fiscal year 2005, means 
                        the percentage of the amounts allocated to 
                        local areas under this chapter (as in effect on 
                        the day before the date of enactment of the 
                        Workforce Investment Act Amendments of 2005) 
                        that is received by the local area involved for 
                        fiscal year 2003.
                            ``(ii) Disadvantaged youth.--The term 
                        `disadvantaged youth' means an individual who--
                                    ``(I) is age 16 through 21;
                                    ``(II) is not a college student or 
                                member of the Armed Forces; and
                                    ``(III) received an income, or is a 
                                member of a family that received a 
                                total family income, that, in relation 
                                to family size, does not exceed the 
                                higher of--
                                            ``(aa) the poverty line; or
                                            ``(bb) 70 percent of the 
                                        lower living standard income 
                                        level.
            ``(3) Youth discretionary allocation.--The Governor may 
        allocate the portion described in paragraph (1)(B) to local 
        areas where there are a significant number of eligible youth, 
        after consultation with the State board and local boards.
            ``(4) Local administrative cost limit.--
                    ``(A) In general.--Of the amount allocated to a 
                local area under this subsection and section 133(b) for 
                a fiscal year, not more than 10 percent of the amount 
                may be used by the local board involved for the 
                administrative costs of carrying out local workforce 
                investment activities under this chapter or chapter 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.--
                    (A) Amendment.--Section 128(c) (29 U.S.C. 2853(c)) 
                is amended--
                            (i) in paragraph (1), by striking 
                        ``paragraph (2)(A) or (3) of'';
                            (ii) by striking paragraph (2) and 
                        inserting the following:
            ``(2) Amount.--The amount available for reallocation for a 
        program year is equal to the amount by which the unexpended 
        balance at the end of the program year prior to the program 
        year for which the determination is made exceeds 30 percent of 
        the total amount of funds available to the local area under 
        this section during such prior program year (including amounts 
        allocated to the local area in all prior program years that 
        remained available). For purposes of this paragraph, the 
        unexpended balance is the amount that is the difference 
        between--
                    ``(A) the total amount of funds available to the 
                local area under this section during the program year 
                prior to the program year for which the determination 
                is made (including amounts allocated to the local area 
                in all prior program years that remained available); 
                and
                    ``(B) the accrued expenditures during such prior 
                program year.'';
                            (iii) by amending paragraph (3)--
                                    (I) by striking ``subsection 
                                (b)(3)'' each place it appears and 
                                inserting ``subsection (b)'';
                                    (II) by striking ``for the prior 
                                program year'' the first place it 
                                appears and inserting ``for the program 
                                year for 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
                            (iv) by striking paragraph (4) and 
                        inserting the following:
            ``(4) Eligibility.--For purposes of this subsection, an 
        eligible local area means a local area that does not have an 
        amount available for reallocation under paragraph (2) for the 
        program year for which the determination under paragraph (2) is 
        made.''.
                    (B) Effective date.--The amendments made by 
                subparagraph (A) shall take effect for the later of--
                            (i) the program year that begins after the 
                        date of enactment of this Act; or
                            (ii) program year 2005.
    (d) Youth Participant Eligibility.--Section 129(a) (29 U.S.C. 
2854(a)) is amended to read as follows:
    ``(a) Youth Participant Eligibility.--
            ``(1) Eligibility.--
                    ``(A) In general.--To be eligible to participate in 
                activities carried out under this chapter during any 
                program year an individual shall, at the time the 
                eligibility determination is made, be an out-of-school 
                youth or an in-school youth.
                    ``(B) Out-of-school youth.--In this title the term 
                `out-of-school youth' means an individual who is--
                            ``(i) not younger than age 16 (subject to 
                        paragraph (3)) nor older than age 21; and
                            ``(ii) one of the following:
                                    ``(I) A school dropout.
                                    ``(II) A youth who is within the 
                                age for compulsory school attendance, 
                                but has not attended school for at 
                                least 1 school year calendar quarter.
                                    ``(III) A recipient of a secondary 
                                school diploma or its equivalent who 
                                is--
                                            ``(aa) deficient in basic 
                                        skills, including limited 
                                        English proficiency;
                                            ``(bb) a low-income 
                                        individual; and
                                            ``(cc) not attending any 
                                        school.
                                    ``(IV) Subject to the juvenile 
                                justice system or ordered by a court to 
                                an alternative school.
                                    ``(V) A low-income individual who 
                                is pregnant or parenting and not 
                                attending any school.
                                    ``(VI) A youth who is not attending 
                                school or a youth attending an 
                                alternative school, who is homeless, a 
                                runaway, a foster child, a child 
                                eligible for assistance under section 
                                477 of the Social Security Act (42 
                                U.S.C. 677), or in an out-of-home 
                                placement.
                                    ``(VII) A low-income individual who 
                                requires additional assistance to 
                                complete an educational program or to 
                                secure or hold employment.
                    ``(C) In-school youth.--In this section the term 
                `in-school youth' means an individual who is--
                            ``(i) not younger than age 14 nor older 
                        than age 21;
                            ``(ii) a low-income individual; and
                            ``(iii) one or more of the following:
                                    ``(I) Deficient in basic literacy 
                                skills, including limited English 
                                proficiency.
                                    ``(II) Homeless, a runaway, a 
                                foster child, a child eligible for 
                                assistance under section 477 of the 
                                Social Security Act (42 U.S.C. 677), or 
                                in an out-of-home placement.
                                    ``(III) Pregnant or parenting.
                                    ``(IV) An offender (other than an 
                                individual described in subparagraph 
                                (B)(ii)(IV)).
                                    ``(V) An individual who requires 
                                additional assistance to complete an 
                                educational program or to secure or 
                                hold employment.
            ``(2) Exception.--Not more than 5 percent of the 
        individuals assisted under this section in each local area, in 
        the case of individuals for whom low income is a requirement 
        for eligibility under this section, may be individuals who are 
        not low income.
            ``(3) Limitations on activities for in-school youth.--
                    ``(A) In general.--For any program year, not more 
                than 60 percent of the funds available for statewide 
                activities under subsection (b), and not more than 60 
                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).
                    ``(B) Exception.--A State that receives a minimum 
                allotment under section 127(b)(1) in accordance with 
                section 127(b)(1)(C)(iv) or under section 132(b)(1) in 
                accordance with section 132(b)(1)(B)(iv)(II) may 
                increase the percentage described in subparagraph (A) 
                for a local area in the State, if--
                            ``(i) after an analysis of the eligible 
                        youth population in the local area, the State 
                        determines that the local area will be unable 
                        to use at least 40 percent of the funds 
                        available for activities under subsection (b) 
                        or (c) to serve out-of-school youth due to a 
                        low number of out-of-school youth; and
                            ``(ii)(I) the State submits to the 
                        Secretary, for the local area, a request 
                        including a proposed increased percentage for 
                        purposes of subparagraph (A), and the summary 
                        of the eligible youth population analysis; and
                            ``(II) the request is approved by the 
                        Secretary.
            ``(4) Consistency with compulsory school attendance laws.--
        In providing assistance under this section to an individual who 
        is required to attend school under applicable State compulsory 
        school attendance laws, the priority in providing such 
        assistance shall be for the individual to attend school 
        regularly.''.
    (e) Statewide 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) shall be used, 
        regardless of whether the funds were allotted to the State 
        under section 127(b)(1)(C) or under paragraph (1)(B) or (2)(B) 
        of section 132(b) for statewide activities, which may include--
                    ``(A) conducting--
                            ``(i) 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;
                            ``(ii) research; and
                            ``(iii) demonstration projects;
                    ``(B) providing incentive grants to local areas for 
                regional cooperation among local boards (including 
                local boards in a designated region as described in 
                section 116(c)), for local coordination of activities 
                carried out under this title, and for performance by 
                local areas as described in section 136(i)(2);
                    ``(C) providing technical assistance and capacity 
                building activities 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, the provision of 
                technical assistance to local areas that fail to meet 
                local performance measures described in section 136(c), 
                and the provision of technology to facilitate remote 
                access to services provided through one-stop delivery 
                systems;
                    ``(D) operating a fiscal and management 
                accountability information system under section 136(f);
                    ``(E) carrying out monitoring and oversight of 
                activities carried out under this chapter and chapter 
                5, which may include a review comparing the services 
                provided to male and female youth;
                    ``(F) providing additional assistance to local 
                areas that have high concentrations of eligible youth;
                    ``(G) supporting the development of alternative 
                programs and other activities that enhance the choices 
                available to eligible youth and encourage such youth to 
                reenter secondary education, enroll in postsecondary 
                education and advanced training, and obtain career path 
                employment; and
                    ``(H) supporting the provision of core services 
                described in section 134(d)(2) in the one-stop delivery 
                system in the State.
            ``(2) Limitation.--Not more than 5 percent of the funds 
        allotted to a State under section 127(b)(1)(C) shall be used by 
        the State for administrative activities carried out under this 
        subsection or section 134(a).
            ``(3) Prohibition.--No funds described in this subsection 
        may be used to develop or implement education curricula for 
        school systems in the State.''.
    (f) Local Elements and Requirements.--
            (1) Program design.--Section 129(c)(1) (29 U.S.C. 
        2854(c)(1)) is amended--
                    (A) in the matter that precedes subparagraph (A), 
                by striking ``paragraph (2)(A) or (3), as appropriate, 
                of'';
                    (B) in subparagraph (B), by inserting ``are 
                directly linked to 1 or more of the performance 
                measures 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 
                        redesignated by clause (i)) the following:
                            ``(i) activities leading to the attainment 
                        of a secondary school diploma or its 
                        equivalent, or another recognized 
                        credential;'';
                            (iii) in clause (ii) (as redesignated by 
                        clause (i)), by inserting ``and advanced 
                        training'' after ``opportunities'';
                            (iv) in clause (iii) (as redesignated by 
                        clause (i))--
                                    (I) by inserting ``instruction 
                                based on State academic content and 
                                student academic achievement standards 
                                established under section 1111 of the 
                                Elementary and Secondary Education Act 
                                of 1965 (20 U.S.C. 6311)'' after 
                                ``academic''; and
                                    (II) by inserting ``that lead to 
                                the attainment of recognized 
                                credentials'' after ``learning''; and
                            (v) by striking clause (v) (as redesignated 
                        by clause (i)) and inserting the following:
                            ``(v) effective connections to all 
                        employers, including small employers, in 
                        sectors of the local and regional labor markets 
                        that are 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 ``the requirements for a secondary school 
                diploma or its recognized equivalent (including 
                recognized alternative standards for individuals with 
                disabilities) or for another recognized credential, 
                including dropout prevention strategies'';
                    (B) in subparagraph (B), by inserting ``, with a 
                priority on exposing youth to technology and 
                nontraditional jobs'' before the semicolon;
                    (C) in subparagraph (F), by striking ``during 
                nonschool hours'';
                    (D) in subparagraph (I), by striking ``and'' at the 
                end;
                    (E) in subparagraph (J), by striking the period at 
                the end and inserting a semicolon; and
                    (F) by adding at the end the following:
                    ``(K) on-the-job training opportunities;
                    ``(L) opportunities to acquire financial literacy 
                skills;
                    ``(M) entrepreneurial skills training and 
                microenterprise services; and
                    ``(N) information about average wages for a range 
                of jobs available in the local area, including 
                technology jobs.''.
            (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 amended by striking paragraphs (4) and (5).
            (5) Prohibitions and linkages.--Section 129(c) (29 U.S.C. 
        2854(c)), as amended by paragraph (4), is further amended--
                    (A) by redesignating paragraphs (6), (7), and (8) 
                as paragraphs (4), (5), and (6), respectively;
                    (B) in paragraph (4) (as redesignated by 
                subparagraph (A))--
                            (i) by striking subparagraph (B); and
                            (ii) by redesignating subparagraph (C) as 
                        subparagraph (B); and
                    (C) in paragraph (5) (as redesignated by 
                subparagraph (A)), by striking ``youth councils'' and 
                inserting ``local boards''.

SEC. 432J. ADULT AND DISLOCATED WORKER EMPLOYMENT AND TRAINING 
              ACTIVITIES.

    (a) State Allotments.--
            (1) Reservations.--Section 132(a)(2)(A) (29 U.S.C. 2862 
        (a)(2)(A)) is amended by striking ``national emergency grants, 
        other than under subsection (a)(4), (f), and (g)'' and 
        inserting ``national dislocated worker grants, other than under 
        paragraph (4) or (5) of subsection (a), subsection (e), and 
        subsection (f)''.
            (2) Allotment among states.--Section 132(b) (29 U.S.C. 
        2862(b)) is amended--
                    (A) in paragraph (1)(A)(ii), by striking ``section 
                127(b)(1)(B)'' and all that follows and inserting 
                ``section 127(b)(1)(B).'';
                    (B) by striking paragraph (1)(B)(ii) and inserting 
                the following:
                            ``(ii) Formula.--Subject to clauses (iii) 
                        and (iv), of the remainder--
                                    ``(I) 40 percent shall be allotted 
                                on the basis of the relative number of 
                                unemployed individuals in areas of 
                                substantial unemployment in each State, 
                                compared to the total number of 
                                unemployed individuals in areas of 
                                substantial unemployment in all States;
                                    ``(II) 25 percent shall be allotted 
                                on the basis of the relative number of 
                                individuals in the civilian labor force 
                                in each State, compared to the total 
                                number of such individuals in all 
                                States; and
                                    ``(III) 35 percent shall be 
                                allotted on the basis of the relative 
                                number of disadvantaged adults in each 
                                State, compared to the total number of 
                                disadvantaged adults in all States, 
                                except as described in clause (iii).'';
                    (C) in paragraph (1)(B)--
                            (i) in clause (iii), by striking ``section 
                        116(a)(2)(B)'' and inserting ``section 
                        116(a)(2)(A)(iii)'';
                            (ii) in clause (iv)--
                                    (I) in subclause (I), by striking 
                                ``Subject to subclause (IV), the'' and 
                                inserting ``The'';
                                    (II) in subclause (II), by striking 
                                ``subclauses (I), (III), and (IV)'' and 
                                inserting ``subclauses (I) and (III)''; 
                                and
                                    (III) by striking subclause (IV); 
                                and
                            (iii) in clause (v), by striking subclause 
                        (VI); and
                    (D) in paragraph (2)(A)(ii), by striking ``section 
                127(b)(1)(B)'' and all that follows and inserting 
                ``section 127(b)(1)(B).''.
            (3) Reallotment.--Section 132(c) (29 U.S.C. 2862(c)) is 
        amended--
                    (A) by striking paragraph (2) and inserting the 
                following:
            ``(2) Amount.--The amount available for reallotment for a 
        program year for programs funded under subsection (b)(1)(B) 
        (relating to adult employment and training) and subsection 
        (b)(2)(B) (relating to dislocated worker employment and 
        training), respectively, is equal to the amount by which the 
        unexpended balance at the end of the program year prior to the 
        program year for which the determination is made exceeds 30 
        percent of the total amount of funds available to the State 
        under subsection (b)(1)(B) or (b)(2)(B), respectively, during 
        such prior program year (including amounts allotted to the 
        State in all prior program years under such provisions that 
        remained available). For purposes of this paragraph, the 
        unexpended balance is the amount that is the difference 
        between--
                    ``(A) the total amount of funds available to the 
                State under subsection (b)(1)(B) or (b)(2)(B), 
                respectively, during the program year prior to the 
                program year for which the determination is made 
                (including amounts allotted to the State in all prior 
                program years under such provisions that remained 
                available); and
                    ``(B) the accrued expenditures from such total 
                amount of funds available under subsection (b)(1)(B) or 
                (b)(2)(B), respectively, during such prior program 
                year.'';
                    (B) in paragraph (3)--
                            (i) by striking ``under this section for 
                        such activities for the prior program year'' 
                        and inserting ``under subsection (b)(1)(B) or 
                        (b)(2)(B), as appropriate, for the program year 
                        for which the determination is made''; and
                            (ii) by striking ``under this subsection 
                        for such activities for such prior program 
                        year'' and inserting ``under subsection 
                        (b)(1)(B) or (b)(2)(B), as appropriate, for 
                        such program year'';
                    (C) by striking paragraph (4) and inserting the 
                following:
            ``(4) Eligibility.--For purposes of this subsection, an 
        eligible State means--
                    ``(A) with respect to funds allotted under 
                subsection (b)(1)(B), a State that does not have an 
                amount of such funds available for reallotment under 
                paragraph (2) for the program year for which the 
                determination under paragraph (2) is made; and
                    ``(B) with respect to funds allotted under 
                subsection (b)(2)(B), a State that does not have an 
                amount of such funds available for reallotment under 
                paragraph (2) for the program year for which the 
                determination under paragraph (2) is made.''; and
                    (D) in paragraph (5), by striking ``obligation'' 
                and inserting ``accrued expenditure''.
            (4) Effective date.--The amendments made by paragraph (3) 
        shall take effect for the later of--
                    (A) the program year that begins after the date of 
                enactment of this Act; or
                    (B) program year 2005.
    (b) Within State Allocations.--
            (1) Allocation.--Section 133(b)(2)(A)(i) (29 U.S.C. 
        2863(b)(2)(A)(i)) is amended--
                    (A) in subclause (I), by striking ``33\1/3\ 
                percent'' and inserting ``40 percent'';
                    (B) in subclause (II), by striking ``33\1/3\ 
                percent'' and inserting ``25 percent''; and
                    (C) in subclause (III), by striking ``33\1/3\ 
                percent'' and inserting ``35 percent''.
            (2) Requirements.--Clauses (i) and (ii) of section 
        133(b)(5)(B) (29 U.S.C. 2863(b)(5)(B)) are amended by striking 
        ``section 134(c)'' and inserting ``section 121(e)''.
            (3) Reallocation.--Section 133(c) (29 U.S.C. 2863(c)) is 
        amended--
                    (A) in paragraph (1), by inserting ``, and under 
                subsection (b)(2)(B) for dislocated worker employment 
                and training activities,'' after ``activities'';
                    (B) by striking paragraph (2) and inserting the 
                following:
            ``(2) Amount.--The amount available for reallocation for a 
        program year for programs funded under paragraphs (2)(A) and 
        (3) of subsection (b) (relating to adult employment and 
        training) and subsection (b)(2)(B) (relating to dislocated 
        worker employment and training), respectively, is equal to the 
        amount by which the unexpended balance at the end of the 
        program year prior to the program year for which the 
        determination is made exceeds 30 percent of the total amount of 
        funds available to the local area under paragraphs (2)(A) and 
        (3) of subsection (b), or subsection (b)(2)(B), respectively, 
        during such prior program year (including amounts allocated to 
        the local area in all prior program years under such provisions 
        that remained available). For purposes of this paragraph, the 
        unexpended balance is the amount that is the difference 
        between--
                    ``(A) the total amount of funds available to the 
                local area under paragraphs (2)(A) and (3) of 
                subsection (b), or subsection (b)(2)(B), respectively, 
                during the program year prior to the program year for 
                which the determination is made (including amounts 
                allotted to the local area in all prior program years 
                under such provisions that remained available); and
                    ``(B) the accrued expenditures from such total 
                amount of funds available under paragraphs (2)(A) and 
                (3) of subsection (b), or subsection (b)(2)(B), 
                respectively, during such prior program year.'';
                    (C) by striking paragraph (3) and inserting the 
                following:
            ``(3) Reallocation.--In making reallocations to eligible 
        local areas of amounts available pursuant to paragraph (2) for 
        a program year, the Governor shall allocate to each eligible 
        local area within the State--
                    ``(A) with respect to amounts that are available 
                for reallocation under paragraph (2) that were 
                allocated under paragraphs (2)(A) or (3) of subsection 
                (b), an amount based on the relative amount allocated 
                to such local area under paragraphs (2)(A) or (3) of 
                subsection (b), as appropriate, for the program year 
                for which the determination is made, as compared to the 
                total amount allocated to all eligible local areas 
                under paragraphs (2)(A) or (3) of subsection (b), as 
                appropriate, of such program year; and
                    ``(B) with respect to amounts that are available 
                for reallocation under paragraph (2) that were 
                allocated under subsection (b)(2)(B), an amount based 
                on the relative amount allocated to such local area 
                under subsection (b)(2)(B) for the program year for 
                which the determination is made, as compared to the 
                total amount allocated to all eligible local areas 
                under subsection (b)(2)(B) for such program year.''; 
                and
                    (D) by striking paragraph (4) and inserting the 
                following:
            ``(4) Eligibility.--For purposes of this subsection, an 
        eligible local area means--
                    ``(A) with respect to funds allocated under 
                paragraphs (2)(A) or (3) of subsection (b), a local 
                area that does not have an amount of such funds 
                available for reallocation under paragraph (2) for the 
                program year for which the determination under 
                paragraph (2) is made; and
                    ``(B) with respect to funds allocated under 
                subsection (b)(2)(B), a local area that does not have 
                an amount of such funds available for reallocation 
                under paragraph (2) for the program year for which the 
                determination under paragraph (2) is made.''.
            (4) Effective date.--The amendments made by paragraph (3) 
        shall take effect for the later of--
                    (A) the program year that begins after the date of 
                enactment of this Act; or
                    (B) program year 2005.
    (c) Use of Funds for Employment and Training Activities.--
            (1) Statewide employment and training activities.--
                    (A) Statewide rapid response activities.--Section 
                134(a)(2)(A) (29 U.S.C. 2864(a)(2)(A)) is amended to 
                read as follows:
                    ``(A) Statewide rapid response activities.--
                            ``(i) In general.--A State shall carry out 
                        statewide rapid response activities using funds 
                        reserved by a Governor for a State under 
                        section 133(a)(2). Such activities shall 
                        include--
                                    ``(I) provision of rapid response 
                                activities, carried out in local areas 
                                by the State or by an entity designated 
                                by the State, working in conjunction 
                                with the local boards and the chief 
                                elected officials for the local areas; 
                                and
                                    ``(II) provision of additional 
                                assistance to local areas that 
                                experience disasters, mass layoffs, or 
                                plant closings, or other events that 
                                precipitate substantial increases in 
                                the number of unemployed individuals, 
                                carried out in local areas by the 
                                State, working in conjunction with the 
                                local boards and the chief elected 
                                officials for the local areas.
                            ``(ii) Use of unexpended funds.--Funds 
                        reserved under section 133(a)(2) to carry out 
                        this subparagraph that remain unexpended after 
                        the first program year for which such funds 
                        were allotted may be used by the Governor to 
                        carry out statewide activities authorized under 
                        subparagraph (B) and paragraph (3)(A) in 
                        addition to activities under this 
                        subparagraph.''.
                    (B) Statewide employment and training activities.--
                Section 134(a)(2) (29 U.S.C. 2864(a)(2)) is amended by 
                striking subparagraph (B) and inserting the following:
                    ``(B) Statewide employment and training 
                activities.--Funds reserved by a Governor for a State 
                under sections 128(a)(1) and 133(a)(1) and not used 
                under paragraph (1)(A) (regardless of whether the funds 
                were allotted to the States under section 127(b)(1)(C) 
                or paragraphs (1)(B) or (2)(B) of section 132(b)) shall 
                be used for statewide employment and training 
                activities, including--
                            ``(i) disseminating--
                                    ``(I) the State list of eligible 
                                providers of training services, 
                                including eligible providers of 
                                nontraditional training services;
                                    ``(II) information identifying 
                                eligible providers of on-the-job 
                                training and customized training;
                                    ``(III) performance information and 
                                program cost information, as described 
                                in subsections (d) and (i) of section 
                                122; and
                                    ``(IV) information on physical and 
                                programmatic accessibility for 
                                individuals with disabilities;
                            ``(ii) 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;
                            ``(iii) providing incentive grants to local 
                        areas in recognition of exceptional achievement 
                        relating to--
                                    ``(I) regional cooperation among 
                                local boards (including local boards in 
                                a designated region as described in 
                                section 116(c));
                                    ``(II) expanded local coordination 
                                of programs and activities carried out 
                                as part of a comprehensive workforce 
                                investment system, including--
                                            ``(aa) employment services 
                                        under the Wagner-Peyser Act (29 
                                        U.S.C. 49 et seq.) and core 
                                        activities under this title; 
                                        and
                                            ``(bb) one-stop partner 
                                        programs described in section 
                                        121;
                                    ``(III) performance by local areas 
                                as described in section 136(i)(2); and
                                    ``(IV) providing expanded access to 
                                education and training services, 
                                especially through increased leveraging 
                                of resources other than those provided 
                                through programs under this title;
                            ``(iv) developing strategies for ensuring 
                        that activities carried out under this section 
                        are placing men and women in jobs, education, 
                        and training that lead to comparable pay;
                            ``(v) 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 described in 
                        section 136(c), which may include the 
                        development and training of staff to provide 
                        opportunities for hard-to-serve populations to 
                        enter high-wage, high-skilled, and 
                        nontraditional occupations;
                            ``(vi) operating a fiscal and management 
                        accountability system under section 136(f); and
                            ``(vii) carrying out monitoring and 
                        oversight of activities carried out under this 
                        chapter and chapter 4.''.
                    (C) Allowable statewide employment and training 
                activities.--Section 134(a)(3)(A) (29 U.S.C. 
                2864(a)(3)(A) is amended to read as follows:
                    ``(A) In general.--Funds reserved by a Governor for 
                a State under sections 128(a)(1) and 133(a)(1) and not 
                used under paragraph (1)(A) or (2)(B) (regardless of 
                whether the funds were allotted to the State under 
                section 127(b)(1)(C) or paragraph (1)(B) or (2)(B) of 
                section 132(b)) may be used to carry out additional 
                statewide employment and training activities, which may 
                include--
                            ``(i) implementing innovative programs and 
                        strategies designed to meet the needs of all 
                        businesses in the State, including small 
                        businesses, which may include incumbent worker 
                        training programs, sectoral and industry 
                        cluster strategies and partnerships, including 
                        regional skills alliances, career ladder 
                        programs, micro-enterprise and entrepreneurial 
                        training and support programs, utilization of 
                        effective business intermediaries, activities 
                        to improve linkages between the one-stop 
                        delivery systems in the State and all employers 
                        (including small employers) in the State, and 
                        other business services and strategies that 
                        better engage employers in workforce investment 
                        activities and make the workforce investment 
                        system more relevant to the needs of State and 
                        local businesses, consistent with the 
                        objectives of this title;
                            ``(ii) developing strategies for 
                        effectively serving hard-to-serve populations 
                        and for coordinating programs and services 
                        among one-stop partners;
                            ``(iii) implementing innovative programs 
                        for displaced homemakers, which for purposes of 
                        this clause 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.);
                            ``(iv) implementing programs to increase 
                        the number of individuals training for and 
                        placed in nontraditional employment;
                            ``(v) carrying out activities to facilitate 
                        remote access to services, including training 
                        services described in subsection (d)(4), 
                        provided through a one-stop delivery system, 
                        including facilitating access through the use 
                        of technology;
                            ``(vi) supporting the provision of core 
                        services described in subsection (d)(2) in the 
                        one-stop delivery system in the State;
                            ``(vii) coordinating with the child welfare 
                        system to facilitate services for children in 
                        foster care and those who are eligible for 
                        assistance under section 477 of the Social 
                        Security Act (42 U.S.C. 677);
                            ``(viii) activities--
                                    ``(I) to improve coordination 
                                between workforce investment activities 
                                carried out within the State involved 
                                and economic development activities;
                                    ``(II) to improve coordination 
                                between employment and training 
                                assistance, child support services, and 
                                assistance provided by State and local 
                                agencies carrying out part D of title 
                                IV of the Social Security Act (42 
                                U.S.C. 651 et seq.);
                                    ``(III) to improve coordination 
                                between employment and training 
                                assistance and cooperative extension 
                                programs carried out by the Department 
                                of Agriculture;
                                    ``(IV) to improve coordination 
                                between employment and training 
                                assistance and programs carried out in 
                                the local area for individuals with 
                                disabilities, including programs 
                                carried out by State agencies relating 
                                to mental retardation and developmental 
                                disabilities, Statewide Independent 
                                Living Councils established under 
                                section 705 of the Rehabilitation Act 
                                of 1973 (29 U.S.C. 796d), and centers 
                                for independent living defined in 
                                section 702 of the Rehabilitation Act 
                                of 1973 (29 U.S.C. 796a);
                                    ``(V) to develop and disseminate 
                                workforce and labor market information; 
                                and
                                    ``(VI) to improve coordination with 
                                the corrections system to facilitate 
                                provision of training services and 
                                employment opportunities that will 
                                assist ex-offenders in reentering the 
                                workforce;
                            ``(ix) conducting--
                                    ``(I) research; and
                                    ``(II) demonstration projects; and
                            ``(x) adopting, calculating, or 
                        commissioning a minimum self-sufficiency 
                        standard that specifies the income needs of 
                        families, by family size, the number and ages 
                        of children in the family, and sub-State 
                        geographical considerations.''.
            (2) Required local employment and training activities.--
                    (A) Allocated funds.--Section 134(d)(1)(A) (29 
                U.S.C. 2864(d)(1)(A)) is amended--
                            (i) in clause (i), by striking ``described 
                        in subsection (c)'';
                            (ii) in clause (iii), by striking ``and'' 
                        at the end;
                            (iii) in clause (iv), by striking the 
                        period and inserting a semicolon; and
                            (iv) by adding at the end the following:
                            ``(v) to designate a dedicated business 
                        liaison in the local area who may be funded 
                        with funds provided under this title or from 
                        other sources to establish and develop 
                        relationships and networks with large and small 
                        employers and their intermediaries; and
                            ``(vi) in order to avoid duplication of 
                        services and enhance coordination of services, 
                        to require the colocation of employment 
                        services provided under the Wagner-Peyser Act 
                        (29 U.S.C. 49 et seq.) at the comprehensive 
                        one-stop centers.''.
                    (B) Core services.--Section 134(d)(2) (29 U.S.C. 
                2864(d)(2)) is amended--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``paragraph (1)(A)'' and 
                        inserting ``paragraph (1)'';
                            (ii) by striking subparagraph (D) and 
                        inserting the following:
                    ``(D) labor exchange services, including--
                            ``(i) job search and placement assistance 
                        and, in appropriate cases, career counseling, 
                        including--
                                    ``(I) exposure to high wage, high 
                                skill jobs; and
                                    ``(II) nontraditional employment; 
                                and
                            ``(ii) appropriate recruitment and other 
                        business services for all employers, including 
                        small employers, in the local area, which may 
                        include services described in this subsection, 
                        including information and referral to 
                        specialized business services not traditionally 
                        offered through the one-stop delivery 
                        system;'';
                            (iii) in subparagraph (E)(iii)--
                                    (I) by inserting ``, career 
                                ladders,'' after ``earnings''; and
                                    (II) by striking ``and'' at the 
                                end;
                            (iv) in subparagraph (F)--
                                    (I) by striking ``and program cost 
                                information''; and
                                    (II) by striking ``described in 
                                section 123'';
                            (v) by striking subparagraph (H) and 
                        inserting the following:
                    ``(H) provision of accurate information, in formats 
                that are usable and understandable to all one-stop 
                center customers, relating to the availability of 
                supportive services or assistance, including child 
                care, child support, medical or child health assistance 
                under title XIX or XXI of the Social Security Act (42 
                U.S.C. 1396 et seq. and 1397aa et seq.), benefits under 
                the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), the 
                earned income tax credit under section 32 of the 
                Internal Revenue Code of 1986, and assistance under a 
                State program funded under part A of title IV of the 
                Social Security Act (42 U.S.C. 601 et seq.) and other 
                supportive services and transportation provided through 
                funds made available under such part, available in the 
                local area, and referral to such services or assistance 
                as appropriate;''; and
                            (vi) in subparagraph (J), by striking 
                        ``for--'' and all that follows through ``(ii) 
                        programs'' and inserting ``for programs''.
                    (C) Intensive services.--Section 134(d)(3) (29 
                U.S.C. 2864(d)(3)) is amended--
                            (i) by striking subparagraph (A) and 
                        inserting the following:
                    ``(A) In general.--
                            ``(i) Eligibility.--Except as provided in 
                        clause (ii), funds allocated to a local area 
                        for adults under paragraph (2)(A) or (3), as 
                        appropriate, of section 133(b), and funds 
                        allocated to the local area for dislocated 
                        workers under section 133(b)(2)(B), shall be 
                        used to provide intensive services to adults 
                        and dislocated workers, respectively--
                                    ``(I) who are unemployed and who, 
                                after an interview, evaluation, or 
                                assessment, have been determined by a 
                                one-stop operator or one-stop partner 
                                to be--
                                            ``(aa) unlikely or unable 
                                        to obtain employment, that 
                                        leads to self-sufficiency or 
                                        wages comparable to or higher 
                                        than previous employment, 
                                        through core services described 
                                        in paragraph (2); and
                                            ``(bb) in need of intensive 
                                        services to obtain employment 
                                        that leads to self-sufficiency 
                                        or wages comparable to or 
                                        higher than previous 
                                        employment; or
                                    ``(II) who are employed, but who, 
                                after an interview, evaluation, or 
                                assessment are determined by a one-stop 
                                operator or one-stop partner to be in 
                                need of intensive services to obtain or 
                                retain employment that leads to self-
                                sufficiency.
                            ``(ii) Special rule.--A new interview, 
                        evaluation, or assessment of a participant is 
                        not required under clause (i) if the one-stop 
                        operator or one-stop partner determines that it 
                        is appropriate to use a recent assessment of 
                        the participant conducted pursuant to another 
                        education or training program.''; and
                            (ii) in subparagraph (C)--
                                    (I) in clause (v), by striking 
                                ``for participants seeking training 
                                services under paragraph (4)''; and
                                    (II) by adding at the end the 
                                following:
                            ``(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.
                            ``(x) English language acquisition and 
                        integrated training programs.''.
                    (D) Training services.--Section 134(d)(4) (29 
                U.S.C. 2864(d)(4)) is amended--
                            (i) by striking subparagraph (A) and 
                        inserting the following:
                    ``(A) In general.--
                            ``(i) Eligibility.--Except as provided in 
                        clause (ii), funds allocated to a local area 
                        for adults under paragraph (2)(A) or (3), as 
                        appropriate, of section 133(b), and funds 
                        allocated to the local area for dislocated 
                        workers under section 133(b)(2)(B), shall be 
                        used to provide training services to adults and 
                        dislocated workers, respectively--
                                    ``(I) who, after an interview, 
                                evaluation, or assessment, and 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 
                                        employment, that leads to self-
                                        sufficiency or wages comparable 
                                        to or higher than previous 
                                        employment, through the 
                                        intensive services described in 
                                        paragraph (3);
                                            ``(bb) be in need of 
                                        training services to obtain or 
                                        retain employment that leads to 
                                        self-sufficiency or wages 
                                        comparable to or higher than 
                                        previous employment; and
                                            ``(cc) have the skills and 
                                        qualifications to successfully 
                                        participate in the selected 
                                        program of training services;
                                    ``(II) who select programs of 
                                training services that are directly 
                                linked to the employment opportunities 
                                in the local area or region involved or 
                                in another area to which the adults or 
                                dislocated workers are willing to 
                                commute or relocate;
                                    ``(III) who meet the requirements 
                                of subparagraph (B); and
                                    ``(IV) who are determined to be 
                                eligible in accordance with the 
                                priority system in effect under 
                                subparagraph (E).
                            ``(ii) Special rule.--A new interview, 
                        evaluation, or assessment of a participant is 
                        not required under clause (i) if the one-stop 
                        operator or one-stop partner determines that it 
                        is appropriate to use a recent assessment of 
                        the participant conducted pursuant to another 
                        education or training program.'';
                            (ii) in subparagraph (B)(i), by striking 
                        ``Except'' and inserting ``Notwithstanding 
                        section 479B of the Higher Education Act of 
                        1965 (20 U.S.C. 1087uu) and except'';
                            (iii) in subparagraph (D)--
                                    (I) in clause (viii), by striking 
                                ``and'' after the semicolon;
                                    (II) in clause (ix), by striking 
                                the period and inserting ``; and''; and
                                    (III) by adding at the end the 
                                following:
                            ``(x) English language acquisition and 
                        integrated training programs.'';
                            (iv) in subparagraph (F)--
                                    (I) in clause (ii), by striking 
                                ``referred to in subsection (c), shall 
                                make available--'' and all that follows 
                                and inserting ``shall make available a 
                                list of eligible providers of training 
                                services, and accompanying information, 
                                in accordance with section 122(d).'';
                                    (II) in the heading of clause 
                                (iii), by striking ``Individual 
                                training accounts'' and inserting 
                                ``Career scholarship accounts'';
                                    (III) in clause (iii)--
                                            (aa) by striking 
                                        ``identifying information'' and 
                                        inserting ``accompanying 
                                        information'';
                                            (bb) by striking ``clause 
                                        (ii)(I)'' and inserting 
                                        ``clause (ii)''; and
                                            (cc) by striking 
                                        ``individual training account'' 
                                        and inserting ``career 
                                        scholarship account''; and
                                    (IV) by adding at the end the 
                                following:
                            ``(iv) Coordination.--Each local board may, 
                        through one-stop centers, coordinate career 
                        scholarship accounts with other Federal, State, 
                        local, or private job training programs or 
                        sources to assist the individual in obtaining 
                        training services.''; and
                            (v) in subparagraph (G)--
                                    (I) in the subparagraph heading, by 
                                striking ``individual training 
                                accounts'' and inserting ``career 
                                scholarship accounts'';
                                    (II) in clause (i), by striking 
                                ``individual training accounts'' and 
                                inserting ``career scholarship 
                                accounts'';
                                    (III) in clause (ii)--
                                            (aa) by striking 
                                        ``individual training account'' 
                                        and inserting ``career 
                                        scholarship account'';
                                            (bb) in subclause (II), by 
                                        striking ``individual training 
                                        accounts'' and inserting 
                                        ``career scholarship 
                                        accounts'';
                                            (cc) in subclause (II) by 
                                        striking ``or'' after the 
                                        semicolon;
                                            (dd) in subclause (III), by 
                                        striking ``special participant 
                                        populations that face multiple 
                                        barriers to employment'' and 
                                        inserting ``hard-to-serve 
                                        populations'';
                                            (ee) in subclause (III), by 
                                        striking the period and 
                                        inserting '``; or''; and
                                            (ff) by adding at the end 
                                        the following:
                                    ``(IV) the local board determines 
                                that it would be most appropriate to 
                                award a contract to an institution of 
                                higher education in order to facilitate 
                                the training of multiple individuals in 
                                high-demand occupations, if such 
                                contract does not limit customer 
                                choice.''; and
                                    (IV) in clause (iv)--
                                            (aa) by redesignating 
                                        subclause (IV) as subclause 
                                        (V); and
                                            (bb) by inserting after 
                                        subclause (III) the following:
                                    ``(IV) Individuals with 
                                disabilities.''.
            (3) Permissible activities.--Section 134(e) (29 U.S.C. 
        2864(e)) is amended--
                    (A) by striking the matter preceding paragraph (2) 
                and inserting the following:
    ``(e) Permissible Local Employment and Training Activities.--
            ``(1) In general.--
                    ``(A) Activities.--Funds allocated to a local area 
                for adults under paragraph (2)(A) or (3), as 
                appropriate, of section 133(b), and funds allocated to 
                the local area for dislocated workers under section 
                133(b)(2)(B), may be used to provide, through the one-
                stop delivery system involved--
                            ``(i) customized screening and referral of 
                        qualified participants in training services 
                        described in subsection (d)(4) to employment;
                            ``(ii) customized employment-related 
                        services to employers on a fee-for-service 
                        basis;
                            ``(iii) customer support to enable members 
                        of hard-to-serve populations, including 
                        individuals with disabilities, to navigate 
                        among multiple services and activities for such 
                        populations;
                            ``(iv) technical assistance and capacity 
                        building for serving individuals with 
                        disabilities in local areas, for one-stop 
                        operators, one-stop partners, and eligible 
                        providers, including the development and 
                        training of staff, the provision of outreach, 
                        intake, assessments, and service delivery, and 
                        the development of performance measures;
                            ``(v) employment and training assistance 
                        provided in coordination with child support 
                        enforcement activities of the State and local 
                        agencies carrying out part D of title IV of the 
                        Social Security Act (42 U.S.C. 651 et seq.);
                            ``(vi) activities to improve coordination 
                        between employment and training assistance, 
                        child support services, and assistance provided 
                        by State and local agencies carrying out part D 
                        of title IV of the Social Security Act (42 
                        U.S.C. 651 et seq.);
                            ``(vii) activities to improve coordination 
                        between employment and training assistance and 
                        cooperative extension programs carried out by 
                        the Department of Agriculture;
                            ``(viii) activities to facilitate remote 
                        access to services provided through a one-stop 
                        delivery system, including facilitating access 
                        through the use of technology;
                            ``(ix) activities--
                                    ``(I) to improve coordination 
                                between workforce investment activities 
                                carried out within the local area 
                                involved and economic development 
                                activities; and
                                    ``(II) to improve services and 
                                linkages between the local workforce 
                                investment system including the local 
                                one-stop delivery system, and all 
                                employers, including small employers in 
                                the local area, through services 
                                described in this section, including 
                                subparagraph (B);
                            ``(x) training programs for displaced 
                        homemakers and for individuals training for 
                        nontraditional occupations, in conjunction with 
                        programs operated in the local area;
                            ``(xi) using a portion of the funds 
                        allocated under section 133(b), activities to 
                        carry out business services and strategies that 
                        meet the workforce investment needs of local 
                        area employers, as determined by the local 
                        board, consistent with the local plan under 
                        section 118, which services--
                                    ``(I) may be provided through 
                                effective business intermediaries 
                                working in conjunction with the local 
                                board, and may also be provided on a 
                                fee-for-service basis or through the 
                                leveraging of economic development and 
                                other resources as determined 
                                appropriate by the local board; and
                                    ``(II) may include--
                                            ``(aa) identifying and 
                                        disseminating to business, 
                                        educators, and job seekers, 
                                        information related to the 
                                        workforce, economic and 
                                        community development needs, 
                                        and opportunities of the local 
                                        economy;
                                            ``(bb) development and 
                                        delivery of innovative 
                                        workforce investment services 
                                        and strategies for area 
                                        businesses, which may include 
                                        sectoral, industry cluster, 
                                        regional skills alliances, 
                                        career ladder, skills 
                                        upgrading, skill standard 
                                        development and certification, 
                                        apprenticeship, and other 
                                        effective initiatives for 
                                        meeting the workforce 
                                        investment needs of area 
                                        employers and workers;
                                            ``(cc) participation in 
                                        seminars and classes offered in 
                                        partnership with relevant 
                                        organizations focusing on the 
                                        workforce-related needs of area 
                                        employers and job seekers;
                                            ``(dd) training consulting, 
                                        needs analysis, and brokering 
                                        services for area businesses, 
                                        including the organization and 
                                        aggregation of training (which 
                                        may be paid for with funds 
                                        other than those provided under 
                                        this title), for individual 
                                        employers and coalitions of 
                                        employers with similar 
                                        interests, products, or 
                                        workforce needs;
                                            ``(ee) assistance to area 
                                        employers in the aversion of 
                                        layoffs and in managing 
                                        reductions in force in 
                                        coordination with rapid 
                                        response activities;
                                            ``(ff) the marketing of 
                                        business services offered under 
                                        this title, to appropriate area 
                                        employers, including small and 
                                        mid-sized employers;
                                            ``(gg) information referral 
                                        on concerns affecting local 
                                        employers; and
                                            ``(hh) other business 
                                        services and strategies 
                                        designed to better engage 
                                        employers in workforce 
                                        investment activities and to 
                                        make the workforce investment 
                                        system more relevant to the 
                                        workforce investment needs of 
                                        area businesses, as determined 
                                        by the local board to be 
                                        consistent with the objectives 
                                        of this title;
                            ``(xii) activities to adjust the self-
                        sufficiency standards for local factors, or 
                        activities to adopt, calculate, or commission a 
                        self-sufficiency standard that specifies the 
                        income needs of families, by family size, the 
                        number and ages of children in the family, and 
                        sub-State geographical considerations; and
                            ``(xiii) improved coordination between 
                        employment and training assistance and programs 
                        carried out in the local area for individuals 
                        with disabilities, including programs carried 
                        out by State agencies relating to mental 
                        retardation and developmental disabilities, 
                        Statewide Independent Living Councils 
                        established under section 705 of the 
                        Rehabilitation Act of 1973 (29 U.S.C. 796d), 
                        and centers for independent living defined in 
                        section 702 of the Rehabilitation Act of 1973 
                        (29 U.S.C. 796a).
                    ``(B) Work support activities for low-wage 
                workers.--
                            ``(i) In general.--Funds allocated to a 
                        local area for adults under paragraph (2)(A) or 
                        (3), as appropriate, of section 133(b), and 
                        funds allocated to the local area for 
                        dislocated workers under section 133(b)(2)(B), 
                        may be used to provide, through the one-stop 
                        delivery system involved, work support 
                        activities designed to assist low-wage workers 
                        in retaining and enhancing employment. The one-
                        stop partners shall coordinate the appropriate 
                        programs and resources of the partners with the 
                        activities and resources provided under this 
                        subparagraph.
                            ``(ii) Activities.--The activities 
                        described in clause (i) may include the 
                        provision of activities described in this 
                        section through the one-stop delivery system in 
                        a manner that enhances the opportunities of 
                        such workers to participate in the activities, 
                        such as the provision of activities described 
                        in this section during nontraditional hours and 
                        the provision of onsite child care while such 
                        activities are being provided.'';
                    (B) in paragraph (2), by striking the matter 
                preceding subparagraph (A) and inserting the following:
            ``(2) Supportive services.--Funds allocated to a local area 
        for adults under paragraph (2)(A) or (3), as appropriate, of 
        section 133(b), and funds allocated to the local area for 
        dislocated workers under section 133(b)(2)(B), may be used to 
        provide supportive services to adults and dislocated workers, 
        respectively--''; and
                    (C) by adding at the end the following:
            ``(4) Incumbent worker training programs.--
                    ``(A) In general.--The local board may use up to 10 
                percent of the funds allocated to the local area 
                involved under section 133(b) to pay for the Federal 
                share of the cost of providing training through an 
                incumbent worker training program carried out in 
                accordance with this paragraph. The Governor or State 
                board may make recommendations to the local board 
                regarding incumbent worker training with statewide 
                impact.
                    ``(B) Training activities.--The training program 
                for incumbent workers carried out under this paragraph 
                shall be carried out by the local board in conjunction 
                with the employers or groups of employers of such 
                workers for the purpose of assisting such workers in 
                obtaining the skills necessary to retain employment or 
                avert layoffs.
                    ``(C) Employer share required.--
                            ``(i) In general.--Employers participating 
                        in the program carried out under this paragraph 
                        shall be required to pay the non-Federal share 
                        of the costs of providing the training to 
                        incumbent workers of the employers. The local 
                        board shall establish the non-Federal share of 
                        such costs, which may include in-kind 
                        contributions. The non-Federal share 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 employer share.--The 
                        non-Federal share paid by such an employer may 
                        include the amount of the wages paid by the 
                        employer to a worker while the worker is 
                        attending a training program under this 
                        paragraph.''.

SEC. 432K. PERFORMANCE ACCOUNTABILITY SYSTEM.

    (a) State Performance Measures.--
            (1) Indicators of performance.--Section 136(b)(2)(A) (29 
        U.S.C. 2871(b)(2)(A)) is amended--
                    (A) in clause (i)--
                            (i) in the matter preceding subclause (I), 
                        by striking ``and (for participants who are 
                        eligible youth age 19 through 21) for youth 
                        activities authorized under section 129'';
                            (ii) by striking subclause (III) and 
                        inserting the following:
                                    ``(III) increases in earnings from 
                                unsubsidized employment; and''; and
                            (iii) in subclause (IV), by striking ``, or 
                        by participants'' and all that follows through 
                        ``unsubsidized employment''; and
                    (B) by striking clause (ii) and inserting the 
                following:
                            ``(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 their recognized 
                                equivalents, and postsecondary 
                                certificates; and
                                    ``(III) literacy or numeracy 
                                gains.''.
            (2) Additional indicators.--Section 136(b)(2)(C) (29 U.S.C. 
        2871(b)(2)(C)) is amended to read as follows:
                    ``(C) Additional indicators.--A State may identify 
                in the State plan additional indicators for workforce 
                investment activities under this subtitle, including 
                indicators identified in collaboration with State 
                business and industry associations, with employee 
                representatives where applicable, and with local 
                boards, to measure the performance of the workforce 
                investment system in serving the workforce needs of 
                business and industry in the State.''.
            (3) Levels of performance.--Section 136(b)(3)(A) (29 U.S.C. 
        2871(b)(3)(A)) is amended--
                    (A) in clause (iii)--
                            (i) in the heading, by striking ``for first 
                        3 years'';
                            (ii) by striking ``and the customer 
                        satisfaction indicator of performance, for the 
                        first 3'' and inserting ``described in clauses 
                        (i) and (ii) of paragraph (2)(A) and the 
                        customer satisfaction indicator of performance, 
                        for the first 2''; and
                            (iii) by inserting at the end the 
                        following: ``Agreements on levels of 
                        performance for each of the core indicators of 
                        performance for the third and fourth program 
                        years covered by the State plan shall be 
                        reached prior to the beginning of the third 
                        program year covered by the State plan, and 
                        incorporated as a modification to the State 
                        plan.'';
                    (B) in clause (iv)--
                            (i) in the matter preceding subclause (I), 
                        by striking ``or (v)'';
                            (ii) in subclause (II)--
                                    (I) by striking ``taking into 
                                account'' and inserting ``and shall 
                                ensure that the levels involved are 
                                adjusted, using objective statistical 
                                methods, based on'';
                                    (II) by inserting ``(such as 
                                differences in unemployment rates and 
                                job losses or gains in particular 
                                industries)'' after ``economic 
                                conditions'';
                                    (III) by inserting ``(such as 
                                indicators of poor work history, lack 
                                of work experience, lack of educational 
                                or occupational skills attainment, 
                                dislocation from high-wage and benefit 
                                employment, low levels of literacy or 
                                English proficiency, disability status, 
                                homelessness, and welfare dependency)'' 
                                after ``program''; and
                                    (IV) by striking ``and'' at the 
                                end;
                            (iii) in subclause (III), by striking the 
                        period and inserting ``; and''; and
                            (iv) by adding at the end the following:
                                    ``(IV) the extent to which the 
                                levels involved will assist the State 
                                in meeting the national goals described 
                                in clause (v).'';
                    (C) by striking clause (v) and inserting the 
                following:
                            ``(v) Establishment of national goals.--In 
                        order to promote enhanced performance outcomes 
                        on the performance measures and to facilitate 
                        the process of reaching agreements with the 
                        States under clause (iii) and to measure 
                        systemwide performance for the one-stop 
                        delivery systems of the States, the Secretary 
                        shall establish long-term national goals for 
                        the adjusted levels of performance for that 
                        systemwide performance to be achieved by the 
                        programs assisted under chapters 4 and 5 on the 
                        core indicators of performance described in 
                        subparagraphs (A) and (B) of subsection (b)(2). 
                        Such goals shall be established in accordance 
                        with the Government Performance and Results Act 
                        of 1993 in consultation with the States and 
                        other appropriate parties.''; and
                    (D) in clause (vi)--
                            (i) by striking ``or (v)''; and
                            (ii) by striking ``with the representatives 
                        described in subsection (i)'' and inserting 
                        ``with the States and other interested 
                        parties''.
    (b) Local Performance Measures.--Section 136(c)(3) (29 U.S.C. 
2871(c)(3))--
            (1) by striking ``shall take into account'' and inserting 
        ``shall ensure that the levels involved are adjusted, using 
        objective statistical methods, based on'';
            (2) by inserting ``(characteristics such as unemployment 
        rates and job losses or gains in particular industries)'' after 
        ``economic''; and
            (3) by inserting ``(characteristics such as indicators of 
        poor work history, lack of work experience, lack of educational 
        and occupational skills attainment, dislocation from high-wage 
        and benefit employment, low levels of literacy or English 
        proficiency, disability status, homelessness, and welfare 
        dependency)'' after ``demographic''.
    (c) Report.--Section 136(d) (29 U.S.C. 2871(d)) is amended--
            (1) in paragraph (1), by adding at the end the following: 
        ``In the case of a State or local area that chooses to expend 
        funds for activities under subsection (a)(3)(A)(i) or 
        (e)(1)(A)(xi), respectively, of section 134, the report also 
        shall include the amount of such funds so expended and the 
        percentage that such funds are of the funds available for 
        activities under section 134.'';
            (2) in paragraph (2)--
                    (A) in subparagraph (E)--
                            (i) by striking ``(excluding participants 
                        who received only self-service and 
                        informational activities)''; and
                            (ii) by striking ``and'' after the 
                        semicolon;
                    (B) in subparagraph (F)--
                            (i) by inserting ``noncustodial parents 
                        with child support obligations, homeless 
                        individuals,'' after ``displaced homemakers,''; 
                        and
                            (ii) by striking the period and inserting a 
                        semicolon; and
                    (C) by adding at the end the following:
                    ``(G) the number of participants served and the 
                cost per participant; and
                    ``(H) the amount of adult and dislocated worker 
                funds spent on--
                            ``(i) core, intensive, and training 
                        services, respectively; and
                            ``(ii) services provided under subsection 
                        (a)(3)(A)(i) or (e)(1)(A)(xi) of section 134, 
                        if applicable.''; 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 
        that the information contained in the reports is valid and 
        reliable.''.
    (d) Evaluation of State Programs.--Section 136(e)(3) is amended by 
inserting ``, including information on promoting self-sufficiency and 
comparable pay between men and women'' after ``employers''.
    (e) Sanctions for State.--Section 136(g) is amended--
            (1) in paragraph (1)(B), by striking ``If such failure 
        continues for a second consecutive year'' and inserting ``If a 
        State performs at less than 80 percent of the adjusted level of 
        performance for core indicators of performance described in 
        subsection (b)(2)(A) for 2 consecutive years''; and
            (2) in paragraph (2), by striking ``section 503'' and 
        inserting ``subsection (i)(1)''.
    (f) Sanctions for Local Area.--Section 136(h)(2)(A) (29 U.S.C. 
2871(h)(2)(A)) is amended--
            (1) in the matter preceding clause (i), by striking ``If 
        such failure continues for a second consecutive year'' and 
        inserting ``If a local area performs at less than 80 percent of 
        the adjusted level of performance for core indicators of 
        performance described in subsection (b)(2)(A) for 2 consecutive 
        years'';
            (2) in clause (ii), by striking ``or'' after the semicolon;
            (3) by redesignating clause (iii) as clause (iv); and
            (4) by inserting after clause (ii) the following:
                            ``(iii) redesignate the local area in 
                        accordance with section 116(b)(2); or''.
    (g) Incentive Grants.--Section 136(i) (29 U.S.C. 2871(i)) is 
amended to read as follows:
    ``(i) Incentive Grants for Local Areas.--
            ``(1) In general.--From funds reserved under sections 
        128(a) and 133(a)(1), the Governor involved shall award 
        incentive grants to local areas for performance described in 
        paragraph (2) in carrying out programs under chapters 4 and 5.
            ``(2) Basis.--The Governor shall award the grants on the 
        basis--
                    ``(A) that the local areas met or exceeded the 
                performance measures established under subsection 
                (c)(2) relating to indicators described in subsection 
                (b)(3)(A)(iii);
                    ``(B) of exemplary performance of the local areas 
                in serving hard-to-serve populations; or
                    ``(C) that the local areas are effectively--
                            ``(i) coordinating multiple systems into a 
                        comprehensive workforce investment system, 
                        including coordination of employment services 
                        under the Wagner-Peyser Act (29 U.S.C. 49 et 
                        seq.) and core activities under this title as 
                        well as one-stop partner programs described in 
                        section 121;
                            ``(ii) expanding access to training, 
                        including through increased leveraging of 
                        resources other than those funded through 
                        programs under this title; or
                            ``(iii) implementing innovative business 
                        and economic development initiatives.
            ``(3) Use of funds.--The funds awarded to a local area 
        under this paragraph may be used to carry out activities 
        authorized for local areas under chapters 4 and 5, and such 
        demonstration projects or innovative programs for hard-to-serve 
        populations as may be approved by the Governor.''.
    (h) Use of Core Measures in Other Department of Labor Programs.--
Section 136 (29 U.S.C. 2871) is amended by adding at the end the 
following:
    ``(j) Use of Core Indicators for Other Programs.--In addition to 
the programs carried out under chapters 4 and 5, and consistent with 
the requirements of the applicable authorizing laws, the Secretary 
shall use the indicators of performance described in subparagraphs (A) 
and (B) of subsection (b)(2) to assess the effectiveness of the 
programs described in clauses (i), (ii), and (vi) of section 
121(b)(1)(B) that are carried out by the Secretary.''.
    (i) Previous Definitions of Core Indicators.--Section 502 (29 
U.S.C. 9272) is repealed.

SEC. 432L. 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 ``such sums as may be necessary 
for each of fiscal years 2006 through 2011''.
    (b) Adult Employment and Training Activities.--Section 137(b) (29 
U.S.C. 2872(b)) is amended by striking ``such sums as may be necessary 
for each of fiscal years 1999 through 2003'' and inserting ``such sums 
as may be necessary for each of fiscal years 2006 through 2011''.
    (c) Dislocated Worker Employment and Training Activities.--Section 
137(c) (29 U.S.C. 2872(c)) is amended by striking ``such sums as may be 
necessary for each of fiscal years 1999 through 2003'' and inserting 
``such sums as may be necessary for each of fiscal years 2006 through 
2011''.

                        Subchapter C--Job Corps

SEC. 433. JOB CORPS.

    (a) Eligibility.--Section 144(3) (29 U.S.C. 2884(3)) is amended by 
adding at the end the following:
                    ``(F) A child eligible for assistance under section 
                477 of the Social Security Act (42 U.S.C. 677).''.
    (b) Implementation of Standards and Procedures.--Section 145(a)(3) 
(29 U.S.C. 2885(a)(3)) is amended--
            (1) in subparagraph (B), by striking ``and'' after the 
        semicolon;
            (2) in subparagraph (C), by striking the period and 
        inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(D) child welfare agencies that are responsible 
                for children in foster care and children eligible for 
                assistance under section 477 of the Social Security Act 
                (42 U.S.C. 677).''.
    (c) 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 at the end the following:
            ``(3) Employers outside of local area.--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.
            ``(4) Special rule for single local area states.--In the 
        case of a single local area State designated under section 
        116(b), the industry council shall include a representative of 
        the State Board.''.
    (d) Indicators of Performance.--Section 159 (29 U.S.C. 2899) is 
amended--
            (1) in subsection (c)--
                    (A) by striking paragraph (1) and inserting the 
                following:
            ``(1) Performance 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 of performance for youth activities identified in 
        section 136(b)(2)(A)(ii).'';
                    (B) in paragraph (2), by striking ``measures'' each 
                place it appears and inserting ``indicators''; and
                    (C) in paragraph (3)--
                            (i) in the first sentence, by striking 
                        ``core performance measures, as compared to the 
                        expected performance level for each performance 
                        measure'' and inserting ``performance 
                        indicators described in paragraph (1), as 
                        compared to the expected level of performance 
                        established under paragraph (1) for each 
                        performance measure''; and
                            (ii) in the second sentence, by striking 
                        ``measures'' each place it appears and 
                        inserting ``indicators''; and
            (2) in subsection (f)(2), in the first sentence, by 
        striking ``core performance measures'' and inserting 
        ``indicators of performance''.
    (e) Authorization of Appropriations.--Section 161 (29 U.S.C. 2901) 
is amended by striking ``1999 through 2003'' and inserting ``2006 
through 2011''.

                    Subchapter D--National Programs

SEC. 434. 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, including the 
                selection of the individual appointed as head of the 
                unit established under paragraph (1).''.
    (b) Assistance to Unique Populations in Alaska and Hawaii.--Section 
166(j) (29 U.S.C. 2911(j)) is amended to read as follows:
    ``(j) Assistance to Unique Populations in Alaska and Hawaii.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, the Secretary is authorized to provide assistance to 
        unique populations who reside in Alaska or Hawaii to improve 
        job training and workforce investment activities.
            ``(2) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this subsection such 
        sums as may be necessary for fiscal year 2006.''.
    (c) Performance Indicators.--Section 166 (29 U.S.C. 2911) is 
amended by adding at the end the following':
    ``(k) Performance Indicators.--
            ``(1) Development of indicators.--The Secretary, in 
        consultation with the Native American Employment and Training 
        Council, shall develop a set of performance indicators and 
        standards which shall be applicable to programs under this 
        section.
            ``(2) Special considerations.--Such performance indicators 
        and standards shall take into account--
                    ``(A) the purposes of the programs under this 
                section as described in paragraph (a)(1);
                    ``(B) the needs of the groups served by this 
                section, including the differences in needs among such 
                groups in various geographic service areas; and
                    ``(C) the economic circumstances of the communities 
                served, including differences in circumstances among 
                various geographic service areas.''.

SEC. 434A. MIGRANT AND SEASONAL FARMWORKER PROGRAMS.

    Section 167(d) (29 U.S.C. 2912(d)) is amended by inserting 
``(including permanent housing)'' after ``housing''.

SEC. 434B. VETERANS' WORKFORCE INVESTMENT PROGRAMS.

    Section 168(a)(3)(C) (29 U.S.C. 2913(a)(3)(C)) is amended by 
striking ``section 134(c)'' and inserting ``section 121(e)''.

SEC. 434C. 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(b)(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 subsection to assist eligible youth in acquiring the 
        skills, credentials, and employment experience necessary to 
        achieve the performance outcomes for youth described in section 
        136
            ``(2) Eligible entity.--In this subsection, the term 
        `eligible entity' means--
                    ``(A) a State or consortium of States;
                    ``(B) a local board or consortium of local boards;
                    ``(C) a recipient of a grant under section 166 
                (relating to Native American programs); or
                    ``(D) a public or private entity (including a 
                consortium of such entities) with expertise in the 
                provision of youth activities, applying in partnership 
                with a local board or consortium of local boards.
            ``(3) 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, and how the eligible entity will 
                collaborate with State and local workforce investment 
                systems established under this title in the provision 
                of such activities;
                    ``(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 State, local, and 
                private resources that will be leveraged to provide the 
                activities described under subparagraph (A) in addition 
                to funds provided under this subsection, and a 
                description of the extent of the involvement of 
                employers in the activities;
                    ``(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); and
                    ``(E) an assurance that the State board of each 
                State in which the proposed activities are to be 
                carried out had the opportunity to review the 
                application, and including the comments, if any, of the 
                affected State boards on the application, except that 
                this subparagraph shall not apply to an eligible entity 
                described in paragraph (2)(C).
            ``(4) Factors for award.--
                    ``(A) In general.--In awarding grants under this 
                subsection the Secretary shall consider--
                            ``(i) the quality of the proposed 
                        activities;
                            ``(ii) the goals to be achieved;
                            ``(iii) the likelihood of successful 
                        implementation;
                            ``(iv) the extent to which the proposed 
                        activities are based on proven strategies or 
                        the extent to which the proposed activities 
                        will expand the base of knowledge relating to 
                        the provision of activities for youth;
                            ``(v) the extent of collaboration with the 
                        State and local workforce investment systems in 
                        carrying out the proposed activities;
                            ``(vi) the extent of employer involvement 
                        in the proposed activities;
                            ``(vii) whether there are other Federal and 
                        non-Federal funds available for similar 
                        activities to the proposed activities, and the 
                        additional State, local, and private resources 
                        that will be provided to carry out the proposed 
                        activities; and
                            ``(viii) the quality of proposed activities 
                        in meeting the needs of the youth to be served.
                    ``(B) Equitable geographic distribution.--In 
                awarding grants under this subsection the Secretary 
                shall ensure an equitable distribution of such grants 
                across geographically diverse areas.
            ``(5) Use of funds.--
                    ``(A) In general.--An eligible entity that receives 
                a grant under this subsection shall use the grant funds 
                to carry out 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.
                    ``(B) Activities.--The activities carried out 
                pursuant to subparagraph (A) may include the following:
                            ``(i) Training and internships for out-of-
                        school youth in sectors of the economy 
                        experiencing, or projected to experience, high 
                        growth.
                            ``(ii) Dropout prevention activities for 
                        in-school youth.
                            ``(iii) Activities designed to assist 
                        special youth populations, such as court-
                        involved youth and youth with disabilities.
                            ``(iv) Activities combining remediation of 
                        academic skills, work readiness training, and 
                        work experience, and including linkages to 
                        postsecondary education, apprenticeships, and 
                        career-ladder employment.
                            ``(v) Activities, including work 
                        experience, paid internships, and 
                        entrepreneurial training, in areas where there 
                        is a migration of youth out of the areas.
                    ``(C) Participant eligibility.--Youth who are 14 
                years of age through 21 years of age, as of the time 
                the eligibility determination is made, may be eligible 
                to participate in activities carried out under this 
                subsection.
            ``(6) Grant period.--The Secretary shall make a grant under 
        this subsection for a period of 2 years and may renew the 
        grant, if the eligible entity has performed successfully, for a 
        period of not more than 3 succeeding years.
            ``(7) Matching funds required.--The Secretary shall require 
        that an eligible entity that receives a grant under this 
        subsection provide non-Federal matching funds in an amount to 
        be determined by the Secretary that is not less than 10 percent 
        of the cost of activities carried out under the grant. The 
        Secretary may require that such non-Federal matching funds be 
        provided in cash resources, noncash resources, or a combination 
        of cash and noncash resources.
            ``(8) Evaluation.--The Secretary shall reserve not more 
        than 3 percent of the funds described in subsection (a)(1) to 
        provide technical assistance to, and conduct evaluations of 
        (using appropriate techniques as described in section 172(c)), 
        the projects funded under this subsection.
    ``(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 entity.--In this subsection, the term 
        `eligible entity' means a public or private entity that the 
        Secretary determines would effectively carry out activities 
        relating to youth under this subsection.
            ``(3) Equitable distribution to rural areas.--In awarding 
        grants under this subsection the Secretary shall ensure an 
        equitable distribution of such grants to rural areas.
            ``(4) 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.
            ``(5) Use of funds.--
                    ``(A) In general.--An eligible entity that receives 
                a grant under this subsection shall use the grant funds 
                to carry out--
                            ``(i) 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;
                            ``(ii) activities designed to assist in-
                        school youth to stay in school and gain work 
                        experience;
                            ``(iii) activities designed to assist youth 
                        in economically distressed areas; and
                            ``(iv) such other activities that the 
                        Secretary determines are appropriate to ensure 
                        that youth entering the workforce have the 
                        skills needed by employers.
                    ``(B) Participant eligibility.--Youth who are 14 
                years of age through 21 years of age, as of the time 
                the eligibility determination is made, may be eligible 
                to participate in activities carried out under this 
                subsection.
            ``(6) Matching funds required.--The Secretary shall require 
        that an eligible entity that receives a grant under this 
        subsection provide non-Federal matching funds in an amount to 
        be determined by the Secretary that is not less than 10 percent 
        of the cost of activities carried out under the grant. The 
        Secretary may require that such non-Federal matching funds be 
        provided in cash resources, noncash resources, or a combination 
        of cash and noncash resources.
            ``(7) Evaluations.--The Secretary may require that an 
        eligible entity that receives a grant under this subsection 
        participate in an evaluation of activities carried out under 
        this subsection, including an evaluation using the techniques 
        described in section 172(c).''.

SEC. 434D. TECHNICAL ASSISTANCE.

    Section 170 (29 U.S.C. 2915) is amended--
            (1) in subsection (a)(1), by--
                    (A) inserting ``the training of staff providing 
                rapid response services, the training of other staff of 
                recipients of funds under this title, the training of 
                members of State boards and local boards, peer review 
                activities under this title,'' after ``localities,''; 
                and
                    (B) striking ``from carrying out activities'' and 
                all that follows through the period and inserting ``to 
                implement the amendments made by the Workforce 
                Investment Act Amendments of 2005.'';
            (2) in subsection (a)(2), by adding at the end the 
        following: ``The Secretary shall also hire staff qualified to 
        provide the assistance described in paragraph (1).'';
            (3) in subsection (b)(2), by striking the last sentence and 
        inserting ``Such projects shall be administered by the 
        Employment and Training Administration.''; and
            (4) by adding at the end the following:
    ``(c) Best Practices Coordination.--The Secretary shall--
            ``(1) establish a system through which States may share 
        information regarding best practices with regard to the 
        operation of workforce investment activities under this Act;
            ``(2) evaluate and disseminate information regarding best 
        practices and identify knowledge gaps; and
            ``(3) commission research under section 172 to address 
        knowledge gaps identified under paragraph (2).''.

SEC. 434E. 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 striking subparagraphs (A) through (E) and 
                inserting the following:
                    ``(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 for career 
                ladder jobs 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 maximum effectiveness 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 and jobs with wages leading to self-
                sufficiency;
                    ``(D) computerized, individualized, self-paced 
                training projects targeted to dislocated, 
                disadvantaged, or incumbent workers utilizing equipment 
                and curriculum designed in partnership with industries 
                for employment in the operations, repair, and 
                maintenance of high-tech equipment that is used in 
                integrated systems technology;
                    ``(E) projects carried out by States and local 
                areas to test innovative approaches to delivering 
                employment-related services;'';
                    (C) in subparagraph (G), by striking ``and'' after 
                the semicolon; and
                    (D) by striking subparagraph (H) and inserting the 
                following:
                    ``(H) projects that provide retention grants, which 
                shall--
                            ``(i) be made to qualified job training 
                        programs offering instruction, assessment, or 
                        professional coaching, upon placement of a low-
                        income individual trained by the program 
                        involved in employment with an employer and 
                        retention of the low-income individual in that 
                        employment with that employer for a period of 1 
                        year, if that employment provides the low-
                        income individual with an annual salary--
                                    ``(I) that is at least $10,000 more 
                                than the individual's federally 
                                adjusted income for the previous year; 
                                and
                                    ``(II) that is not less than twice 
                                the poverty line applicable to the 
                                individual; and
                            ``(ii) be made taking into account the 
                        economic benefit received by the Federal 
                        Government from the employment and retention of 
                        the individual, including the economic benefit 
                        from tax revenue and decreased public 
                        subsidies;
                    ``(I) targeted innovation projects that improve 
                access to and delivery of employment and training 
                services, with emphasis given to projects that 
                incorporate advanced technologies to facilitate the 
                connection of individuals to the information and tools 
                they need to upgrade skills;
                    ``(J) projects that promote the use of distance 
                learning, enabling students to take courses through the 
                use of media technology such as videos, 
                teleconferencing computers, and the Internet; and
                    ``(K) projects that provide comprehensive education 
                and training services, and support services, in 
                coordination with local boards, for populations in 
                targeted high poverty areas where the greatest barriers 
                to employment exist, including ex-offenders, out-of-
                school youth, and public assistance recipient 
                populations.''; 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) Studies and reports.--
                            ``(i) Net impact studies and reports.--
                                    ``(I) In general.--The Secretary, 
                                in coordination with the Secretary of 
                                Education, shall conduct studies to 
                                determine the net impacts of programs, 
                                services, and activities carried out 
                                under this title.
                                    ``(II) Reports.--The Secretary 
                                shall prepare and disseminate to the 
                                public reports containing the results 
                                of the studies conducted under 
                                subclause (I).
                            ``(ii) Study on resources available to 
                        assist out-of-school youth.--The Secretary, in 
                        coordination with the Secretary of Education, 
                        may conduct a study examining the resources 
                        available at the Federal, State, and local 
                        levels to assist out-of-school youth in 
                        obtaining the skills, credentials, and work 
                        experience necessary to become successfully 
                        employed, including the availability of funds 
                        provided through average daily attendance and 
                        other methodologies used by States and local 
                        areas to distribute funds.
                            ``(iii) Study of industry-based 
                        certification and credentials.--
                                    ``(I) In general.--The Secretary 
                                shall conduct a study concerning the 
                                role and benefits of credentialing and 
                                certification to businesses and workers 
                                in the economy and the implications of 
                                certification to the services provided 
                                through the workforce investment 
                                system. The study may examine issues 
                                such as--
                                            ``(aa) the characteristics 
                                        of successful credentialing and 
                                        certification systems that 
                                        serve business and individual 
                                        needs;
                                            ``(bb) the relative 
                                        proportions of certificates and 
                                        credentials attained with 
                                        assistance from the public 
                                        sector, with private-sector 
                                        training of new hires or 
                                        incumbent workers, and by 
                                        individuals on their own 
                                        initiative without other 
                                        assistance, respectively;
                                            ``(cc) the return on human 
                                        capital investments from 
                                        occupational credentials and 
                                        industry-based skill 
                                        certifications, including the 
                                        extent to which acquisition of 
                                        such credentials or 
                                        certificates enhances outcomes 
                                        such as entry into employment, 
                                        retention, earnings (including 
                                        the number and amount of wage 
                                        increases), career advancement, 
                                        and layoff aversion;
                                            ``(dd) the implications of 
                                        the effects of skill 
                                        certifications and credentials 
                                        to the types and delivery of 
                                        services provided through the 
                                        workforce investment system;
                                            ``(ee) the role that 
                                        Federal and State governments 
                                        play in fostering the 
                                        development of and 
                                        disseminating credentials and 
                                        skill standards; and
                                            ``(ff) the use of 
                                        credentials by businesses to 
                                        achieve goals for workforce 
                                        skill upgrading and greater 
                                        operating efficiency.
                                    ``(II) Report to congress.--The 
                                Secretary shall prepare and submit to 
                                Congress a report containing the 
                                results of the study conducted pursuant 
                                to subclause (I). Such report may 
                                include any recommendations that the 
                                Secretary determines are appropriate to 
                                include in such report relating to 
                                promoting the acquisition of industry-
                                based certification and credentials, 
                                and the appropriate role of the 
                                Department of Labor and the workforce 
                                investment system in supporting the 
                                needs of business and individuals with 
                                respect to such certification and 
                                credentials.
                            ``(iv) Study of effectiveness of workforce 
                        investment system in meeting business needs.--
                                    ``(I) In general.--Using funds 
                                available to carry out this section 
                                jointly with funds available to the 
                                Secretary of Commerce and Administrator 
                                of the Small Business Administration, 
                                the Secretary, in coordination with the 
                                Secretary of Commerce and the 
                                Administrator of the Small Business 
                                Administration, may conduct a study of 
                                the effectiveness of the workforce 
                                investment system in meeting the needs 
                                of business, with particular attention 
                                to the needs of small business, 
                                including in assisting workers to 
                                obtain the skills needed to utilize 
                                emerging technologies. In conducting 
                                the study, the Secretary, in 
                                coordination with the Secretary of 
                                Commerce and the Administrator of the 
                                Small Business Administration, may 
                                examine issues such as--
                                            ``(aa) methods for 
                                        identifying the workforce needs 
                                        of businesses and how the 
                                        requirements of small 
                                        businesses may differ from 
                                        larger establishments;
                                            ``(bb) business 
                                        satisfaction with the workforce 
                                        investment system, with 
                                        particular emphasis on the 
                                        satisfaction of small 
                                        businesses;
                                            ``(cc) the extent to which 
                                        business is engaged as a 
                                        collaborative partner in the 
                                        workforce investment system, 
                                        including the extent of 
                                        business involvement as members 
                                        of State boards and local 
                                        boards, and the extent to which 
                                        such boards and one-stop 
                                        centers effectively collaborate 
                                        with business and industry 
                                        leaders in developing workforce 
                                        investment strategies, 
                                        including strategies to 
                                        identify high growth 
                                        opportunities;
                                            ``(dd) ways in which the 
                                        workforce investment system 
                                        addresses changing skill needs 
                                        of business that result from 
                                        changes in technology and work 
                                        processes;
                                            ``(ee) promising practices 
                                        for serving small businesses;
                                            ``(ff) the extent and 
                                        manner in which the workforce 
                                        investment system uses 
                                        technology to serve business 
                                        and individual needs, and how 
                                        uses of technology could 
                                        enhance efficiency and 
                                        effectiveness in providing 
                                        services; and
                                            ``(gg) the extent to which 
                                        various segments of the labor 
                                        force have access to and 
                                        utilize technology to locate 
                                        job openings and apply for 
                                        jobs, and characteristics of 
                                        individuals utilizing such 
                                        technology (such as age, 
                                        gender, race or ethnicity, 
                                        industry sector, and 
                                        occupational groups).
                                    ``(II) Report to congress.--The 
                                Secretary shall prepare and submit to 
                                Congress a report containing the 
                                results of the study described in 
                                subclause (I). Such report may include 
                                any recommendations the Secretary 
                                determines are appropriate to include 
                                in such report, including ways to 
                                enhance the effectiveness of the 
                                workforce investment system in meeting 
                                the needs of business for skilled 
                                workers.''.
    (c) Administration.--Section 171(d) (29 U.S.C. 2916(d)) is amended 
by striking the last sentence and inserting the following: ``Such 
projects shall be administered by the Employment and Training 
Administration.''.
    (d) Next Generation Technologies.--Section 171 (29 U.S.C. 2916) is 
amended by adding at the end the following:
    ``(e) Skill Certification Pilot Projects.--
            ``(1) Pilot projects.--In accordance with subsection (b) 
        and from funds appropriated pursuant to paragraph (10), the 
        Secretary shall establish and carry out not more than 10 pilot 
        projects to establish a system of industry-validated national 
        certifications of skills, including--
                    ``(A) not more than 8 national certifications of 
                skills in high-technology industries, including 
                biotechnology, telecommunications, highly automated 
                manufacturing (including semiconductors), 
                nanotechnology, and energy technology; and
                    ``(B) not more than 2 cross-disciplinary national 
                certifications of skills in homeland security 
                technology.
            ``(2) Grants to eligible entities.--In carrying out the 
        pilot projects, the Secretary shall make grants to eligible 
        entities, for periods of not less than 36 months and not more 
        than 48 months, to carry out the authorized activities 
        described in paragraph (7) with respect to the certifications 
        described in paragraph (1). In awarding grants under this 
        subsection the Secretary shall take into consideration awarding 
        grants to eligible entities from diverse geographic areas, 
        including rural areas.
            ``(3) Eligible entities.--
                    ``(A) Definition of eligible entity.--In this 
                subsection the term `eligible entity' means an entity 
                that shall work in conjunction with a local board and 
                shall include as a principal participant one or more of 
                the following:
                            ``(i) An educational institution, including 
                        a 2- or 4-year college, or a technical or 
                        vocational school.
                            ``(ii) An advanced technology education 
                        center.
                            ``(iii) A local board.
                            ``(iv) A representative of a business in a 
                        target industry for the certification involved.
                            ``(v) A representative of an industry 
                        association, labor organization, or community 
                        development organization.
                    ``(B) History of demonstrated capability 
                required.--To be eligible to receive a grant under this 
                subsection, an eligible entity shall have a history of 
                demonstrated capability for effective collaboration 
                with industry on workforce investment activities that 
                is consistent with the objectives of this title.
            ``(4) 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.
            ``(5) Criteria.--The Secretary shall establish criteria, 
        consistent with paragraph (6), for awarding grants under this 
        subsection.
            ``(6) Priority.--In selecting eligible entities to receive 
        grants under this subsection, the Secretary shall give priority 
        to eligible entities that demonstrate the availability of and 
        ability to provide matching funds from industry or nonprofit 
        sources. Such matching funds may be provided in cash or in 
        kind.
            ``(7) Authorized activities.--
                    ``(A) In general.--An eligible entity that receives 
                a grant under this subsection shall use the funds made 
                available through the grant--
                            ``(i) to facilitate the establishment of 
                        certification requirements for a certification 
                        described in paragraph (1) for an industry;
                            ``(ii) to develop and initiate a 
                        certification program that includes preparatory 
                        courses, course materials, procedures, and 
                        examinations, for the certification; and
                            ``(iii) to collect and analyze data related 
                        to the program at the program's completion, and 
                        to identify best practices (consistent with 
                        paragraph (8)) that may be used by local and 
                        State workforce investment boards in the 
                        future.
                    ``(B) Basis for requirements.--The certification 
                requirements established under the grant shall be based 
                on applicable skill standards for the industry involved 
                that have been developed by or linked to national 
                centers of excellence under the National Science 
                Foundation's Advanced Technological Education Program. 
                The requirements shall require an individual to 
                demonstrate an identifiable set of competencies 
                relevant to the industry in order to receive 
                certification. The requirements shall be designed to 
                provide evidence of a transferable skill set that 
                allows flexibility and mobility of workers within a 
                high technology industry.
                    ``(C) Relationship to training and education 
                programs.--The eligible entity shall ensure that--
                            ``(i) a training and education program 
                        related to competencies for the industry 
                        involved, that is flexible in mode and 
                        timeframe for delivery and that meets the needs 
                        of those seeking the certification, is offered; 
                        and
                            ``(ii) the certification program is offered 
                        at the completion of the training and education 
                        program.
                    ``(D) Relationship to the associate degree.--The 
                eligible entity shall ensure that the certification 
                program is consistent with the requirements for a 2-
                year associate degree.
                    ``(E) Availability.--The eligible entity shall 
                ensure that the certification program is open to 
                students pursuing associate degrees, employed workers, 
                and displaced workers.
            ``(8) Consultation.--The Secretary shall consult with the 
        Director of the National Science Foundation to ensure that the 
        pilot projects build on the expertise and information about 
        best practices gained through the implementation of the 
        National Science Foundation's Advanced Technological Education 
        Program.
            ``(9) Core components; guidelines; reports.--After 
        collecting and analyzing the data obtained from the pilot 
        programs, the Secretary shall--
                    ``(A) establish the core components of a model 
                high-technology certification program;
                    ``(B) establish guidelines to assure development of 
                a uniform set of standards and policies for such 
                programs;
                    ``(C) prepare and submit a report on the pilot 
                projects to the Committee on Health, Education, Labor, 
                and Pensions of the Senate and the Committee on 
                Education and the Workforce of the House of 
                Representatives; and
                    ``(D) make available to the public both the data 
                and the report.
            ``(10) Authorization of appropriations.--In addition to 
        amounts authorized to be appropriated under section 174(b), 
        there is authorized to be appropriated $30,000,000 for fiscal 
        year 2006 to carry out this subsection.''.
    (e) Integrated Workforce Training Programs for Adults With Limited 
English Proficiency.--Section 171 (29 U.S.C. 2916), as amended by 
subsection (d), is further amended by adding at the end the following:
    ``(f) Integrated Workforce Training Programs for Adults With 
Limited English Proficiency.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Integrated workforce training.--The term 
                `integrated workforce training' means training that 
                integrates occupational skills training with language 
                acquisition.
                    ``(B) Secretary.--The term `Secretary' means the 
                Secretary of Labor in consultation with the Secretary 
                of Education.
            ``(2) Demonstration project.--In accordance with subsection 
        (b) and from funds appropriated pursuant to paragraph (11), the 
        Secretary shall establish and implement a national 
        demonstration project designed to both analyze and provide data 
        on workforce training programs that integrate English language 
        acquisition and occupational training.
            ``(3) Grants.--
                    ``(A) In general.--In carrying out the 
                demonstration project, the Secretary shall make not 
                less than 10 grants, on a competitive basis, to 
                eligible entities to provide the integrated workforce 
                training programs. In awarding grants under this 
                subsection the Secretary shall take into consideration 
                awarding grants to eligible entities from diverse 
                geographic areas, including rural areas.
                    ``(B) Periods.--The Secretary shall make the grants 
                for periods of not less than 24 months and not more 
                than 48 months.
            ``(4) Eligible entities.--
                    ``(A) In general.--To be eligible to receive a 
                grant under this subsection, an eligible entity shall 
                work in conjunction with a local board and shall 
                include as a principal participant one or more of the 
                following:
                            ``(i) An employer or employer association.
                            ``(ii) A nonprofit provider of English 
                        language instruction.
                            ``(iii) A provider of occupational or 
                        skills training.
                            ``(iv) A community-based organization.
                            ``(v) An educational institution, including 
                        a 2- or 4-year college, or a technical or 
                        vocational school.
                            ``(vi) A labor organization.
                            ``(vii) A local board.
                    ``(B) Expertise.--To be eligible to receive a grant 
                under this subsection, an eligible entity shall have 
                proven expertise in--
                            ``(i) serving individuals with limited 
                        English proficiency, including individuals with 
                        lower levels of oral and written English; and
                            ``(ii) providing workforce programs with 
                        training and English language instruction.
            ``(5) Applications.--
                    ``(A) In general.--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.
                    ``(B) Contents.--Each application submitted under 
                subparagraph (A) shall--
                            ``(i) contain information, including 
                        capability statements, that demonstrates that 
                        the eligible entity has the expertise described 
                        in paragraph (4)(B); and
                            ``(ii) include an assurance that the 
                        program to be assisted shall--
                                    ``(I) establish a generalized adult 
                                bilingual workforce training and 
                                education model that integrates English 
                                language acquisition and occupational 
                                training, and incorporates the unique 
                                linguistic and cultural factors of the 
                                participants;
                                    ``(II) establish a framework by 
                                which the employer, employee, and other 
                                relevant members of the eligible entity 
                                can create a career development and 
                                training plan that assists both the 
                                employer and the employee to meet their 
                                long-term needs;
                                    ``(III) ensure that the framework 
                                established under subclause (II) takes 
                                into consideration the knowledge, 
                                skills, and abilities of the employee 
                                with respect to both the current and 
                                economic conditions of the employer and 
                                future labor market conditions relevant 
                                to the local area; and
                                    ``(IV) establish identifiable 
                                measures so that the progress of the 
                                employee and employer and the relative 
                                efficacy of the program can be 
                                evaluated and best practices 
                                identified.
            ``(6) Criteria.--The Secretary shall establish criteria for 
        awarding grants under this subsection.
            ``(7) Integrated workforce training programs.--
                    ``(A) Program components.--
                            ``(i) Required components.--Each program 
                        that receives funding under this subsection 
                        shall--
                                    ``(I) test an individual's English 
                                language proficiency levels to assess 
                                oral and literacy gains from the 
                                beginning and throughout program 
                                enrollment;
                                    ``(II) combine training specific to 
                                a particular occupation or occupational 
                                cluster, with--
                                            ``(aa) English language 
                                        instruction, such as 
                                        instruction through an English 
                                        as a Second Language program, 
                                        or an English for Speakers of 
                                        Other Languages program;
                                            ``(bb) basic skills 
                                        instruction; and
                                            ``(cc) supportive services;
                                    ``(III) effectively integrate 
                                public and private sector entities, 
                                including the local workforce 
                                investment system and its functions, to 
                                achieve the goals of the program; and
                                    ``(IV) require matching or in-kind 
                                resources from private and nonprofit 
                                entities.
                            ``(ii) Permissible components.--The program 
                        may offer other services, as necessary to 
                        promote successful participation and 
                        completion, including work-based learning, 
                        substance abuse treatment, and mental health 
                        services.
                    ``(B) Goal.--Each program that receives funding 
                under this subsection shall be designed to prepare 
                limited English proficient adults for, and place such 
                adults in employment in, growing industries with 
                identifiable career ladder paths.
                    ``(C) Program types.--In selecting programs to 
                receive funding under this subsection, the Secretary 
                shall select programs that meet 1 or more of the 
                following criteria:
                            ``(i) A program that--
                                    ``(I) serves unemployed, limited 
                                English proficient individuals with 
                                significant work experience or 
                                substantial education but persistently 
                                low wages; and
                                    ``(II) aims to prepare such 
                                individuals for, and place such 
                                individuals in, higher paying 
                                employment, defined for purposes of 
                                this subparagraph as employment that 
                                provides at least 75 percent of the 
                                median wage in the local area.
                            ``(ii) A program that--
                                    ``(I) serves limited English 
                                proficient individuals with lower 
                                levels of oral and written fluency, who 
                                are working but at persistently low 
                                wages; and
                                    ``(II) aims to prepare such 
                                individuals for, and place such 
                                individuals in, higher paying 
                                employment, through services provided 
                                at the worksite, or at a location 
                                central to several work sites, during 
                                work hours.
                            ``(iii) A program that--
                                    ``(I) serves unemployed, limited 
                                English proficient individuals with 
                                lower levels of oral and written 
                                fluency, who have little or no work 
                                experience; and
                                    ``(II) aims to prepare such 
                                individuals for, and place such 
                                individuals in, employment through 
                                services that include subsidized 
                                employment, in addition to the 
                                components required in subparagraph 
                                (A)(i).
                            ``(iv) A program that includes funds from 
                        private and nonprofit entities.
                    ``(D) Program approaches.--In selecting programs to 
                receive funding under this subsection, the Secretary 
                shall select programs with different approaches to 
                integrated workforce training, in different contexts, 
                in order to obtain comparative data on multiple 
                approaches to integrated workforce training and English 
                language instruction, to ensure programs are tailored 
                to characteristics of individuals with varying skill 
                levels and to assess how different curricula work for 
                limited English proficient populations. Such approaches 
                may include--
                            ``(i) bilingual programs in which the 
                        workplace language component and the training 
                        are conducted in a combination of an 
                        individual's native language and English;
                            ``(ii) integrated workforce training 
                        programs that combine basic skills, language 
                        instruction, and job specific skills training; 
                        or
                            ``(iii) sequential programs that provide a 
                        progression of skills, language, and training 
                        to ensure success upon an individual's 
                        completion of the program.
            ``(8) Evaluation by eligible entity.--Each eligible entity 
        that receives a grant under this subsection for a program shall 
        carry out a continuous program evaluation and an evaluation 
        specific to the last phase of the program operations.
            ``(9) Evaluation by secretary.--
                    ``(A) In general.--The Secretary shall conduct an 
                evaluation of program impacts of the programs funded 
                under the demonstration project, with a random 
                assignment, experimental design impact study done at 
                each worksite at which such a program is carried out.
                    ``(B) Data collection and analysis.--The Secretary 
                shall collect and analyze the data from the 
                demonstration project to determine program 
                effectiveness, including gains in language proficiency, 
                acquisition of skills, and job advancement for program 
                participants.
                    ``(C) Report.--The Secretary shall prepare and 
                submit to the Committee on Health, Education, Labor, 
                and Pensions of the Senate and the Committee on 
                Education and the Workforce of the House of 
                Representatives, and make available to the public, a 
                report on the demonstration project, including the 
                results of the evaluation.
            ``(10) Technical assistance.--The Secretary shall provide 
        technical assistance to recipients of grants under this 
        subsection throughout the grant periods.
            ``(11) Authorization of appropriations.--In addition to 
        amounts authorized to be appropriated under section 174(b), 
        there is authorized to be appropriated $10,000,000 for fiscal 
        year 2006 to carry out this subsection.''.

SEC. 434F. NATIONAL DISLOCATED WORKER GRANTS.

    (a) In General.--Section 173 (29 U.S.C. 2918) is amended--
            (1) by striking the heading and inserting the following:

``SEC. 173. NATIONAL DISLOCATED WORKER GRANTS.'';

    and
            (2) in subsection (a)--
                    (A) by striking the matter preceding paragraph (1) 
                and inserting the following:
    ``(a) In General.--The Secretary is authorized to award national 
dislocated worker grants--'';
                    (B) in paragraph (1), by striking ``subsection 
                (c)'' and inserting ``subsection (b)'';
                    (C) in paragraph (3), by striking ``and'' after the 
                semicolon; and
                    (D) by striking paragraph (4) and inserting the 
                following:
            ``(4) to a State or entity (as defined in subsection 
        (b)(1)(B)) to carry out subsection (e), including providing 
        assistance to eligible individuals;
            ``(5) to a State or entity (as defined in subsection 
        (b)(1)(B)) to carry out subsection (f), including providing 
        assistance to eligible individuals;
            ``(6) to provide additional assistance to a State board or 
        local board where a higher than average demand for employment 
        and training services for dislocated members of the Armed 
        Forces, or spouses, as defined in section 101(9)(E), of members 
        of the Armed Forces as described in subsection (b)(2)(A)(iv), 
        exceeds State and local resources for providing such services, 
        and where such programs are to be carried out in partnership 
        with the Department of Defense and Department of Veterans 
        Affairs transition assistance programs; and
            ``(7) to provide assistance to a State for statewide or 
        local use in order to--
                    ``(A) address cases in which there have been worker 
                dislocations across multiple sectors or across multiple 
                local areas and such workers remain dislocated;
                    ``(B) coordinate the State plan described in 
                section 112 with emerging economic development needs; 
                and
                    ``(C) train eligible individuals who are dislocated 
                workers described in subparagraph (A).
The Secretary shall issue a final decision on an application for a 
national dislocated worker grant under this subsection not later than 
60 calendar days after receipt of the application. The Secretary shall 
issue a notice of obligation for such a grant not later than 10 days 
after the award of the grant.''.
    (b) Administration and Additional Assistance.--Section 173 (29 
U.S.C. 2918) is amended--
            (1) by striking subsection (b);
            (2) by redesignating subsections (c) through (g) as 
        subsections (b) through (f), respectively;
            (3) in paragraph (2) of subsection (b) (as redesignated by 
        paragraph (2))--
                    (A) in subparagraph (A), in the matter preceding 
                clause (i), by striking ``national emergency grant'' 
                and inserting ``national dislocated worker grant''; and
                    (B) in subparagraph (C), by striking ``national 
                emergency grants'' and inserting ``national dislocated 
                worker grants'';
            (4) by striking subsection (d) (as redesignated by 
        paragraph (2)) and inserting the following:
    ``(d) Additional Assistance.--
            ``(1) In general.--From the amount appropriated and made 
        available to carry out this section for any program year, the 
        Secretary shall use not more than $20,000,000 to make grants to 
        States to provide employment and training activities under 
        section 134, in accordance with subtitle B.
            ``(2) Eligible states.--The Secretary shall make a grant 
        under paragraph (1) to a State for a program year if--
                    ``(A) the amount of the allotment that was made to 
                the State for the program year 2003 under the formula 
                specified in section 132(b)(1)(B) as such section was 
                in effect on July 1, 2003, is greater than
                    ``(B) the amount of the allotment that would be 
                made to the State for the program year under the 
                formula specified in section 132(b)(1)(B).
            ``(3) Amount of grants.--Subject to paragraph (1), the 
        amount of the grant made under paragraph (1) to a State for a 
        program year shall be based on the difference between--
                    ``(A) the amount of the allotment that was made to 
                the State for the program year 2003 under the formula 
                specified in section 132(b)(1)(B) as such section was 
                in effect on July 1, 2003; and
                    ``(B) the amount of the allotment that would be 
                made to the State for the program year under the 
                formula specified in section 132(b)(1)(B).'';
            (5) in subsection (e) (as redesignated by paragraph (2))--
                    (A) in paragraph (1), by striking ``paragraph 
                (4)(A)'' and inserting ``paragraph (4)'';
                    (B) in paragraph (2), by striking ``subsection 
                (g)'' and inserting ``subsection (f)'';
                    (C) in paragraph (3)(B), by striking ``subsection 
                (a)(4)(A)'' and inserting ``subsection (a)(4)'';
                    (D) in paragraph (4), by striking ``subsection 
                (g)'' and inserting ``subsection (f)'';
                    (E) in paragraph (5), by striking ``subsection 
                (g)'' and inserting ``subsection (f)''; and
                    (F) in paragraph (6)--
                            (i) by striking ``subsection (g)'' and 
                        inserting ``subsection (f)''; and
                            (ii) by striking ``subsection (c)(1)(B)'' 
                        and inserting ``subsection (b)(1)(B)''; and
            (6) in subsection (f) (as redesignated by paragraph (2))--
                    (A) in paragraph (1)--
                            (i) by striking ``paragraph (4)(B)'' and 
                        inserting ``paragraph (5)''; and
                            (ii) by striking ``subsection (f)(1)(A)'' 
                        and inserting ``subsection (e)(1)(A)''; and
                    (B) in paragraph (4)(B), by striking ``subsection 
                (a)(4)(B)'' and inserting ``subsection (a)(5)''.

SEC. 434G. 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 ``2006 through 
2011''.
    (b) Reservations.--Section 174(b) (29 U.S.C. 2919(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, section 136(i), and section 503 
such sums as may be necessary for each of fiscal years 2006 through 
2011.''.
    (c) Assistance for Eligible Workers.--Section 174(c) (29 U.S.C. 
2919(c)) is amended--
            (1) in paragraphs (1)(A) and (2)(A), by striking 
        ``subsection (a)(4)(A)'' and inserting ``subsection (a)(4)''; 
        and
            (2) in paragraphs (1)(B) and (2)(B), by striking 
        ``subsection (a)(4)(B)'' and inserting ``subsection (a)(5)''.

                      Subchapter E--Administration

SEC. 435. REQUIREMENTS AND RESTRICTIONS.

    Section 181(e) (29 U.S.C. 2931(e)) is amended by striking 
``economic development activities,''.

SEC. 435A. REPORTS.

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

SEC. 435B. ADMINISTRATIVE PROVISIONS.

    (a) Annual Report.--Section 189(d) (29 U.S.C. 2939(d)) is amended--
            (1) in paragraph (3), by striking ``and'' after the 
        semicolon;
            (2) by redesignating paragraph (4) as paragraph (5); and
            (3) by inserting after paragraph (3) the following:
            ``(4) the negotiated levels of performance of the States, 
        the States' requests for adjustments of such levels, and the 
        adjustments of such levels that are made; and''.
    (b) Availability.--Section 189(g)(2) (29 U.S.C. 2939(g)(2)) is 
amended, in the first sentence--
            (1) by striking ``Funds'' and inserting ``Except as 
        otherwise provided in this paragraph, funds''; and
            (2) by striking ``each State receiving'' and inserting 
        ``each recipient of''.
    (c) General Waivers.--Section 189(i)(4) (29 U.S.C. 2939(i)(4)) is 
amended--
            (1) in subparagraph (A)(i), by inserting ``the funding of 
        infrastructure costs for one-stop centers,'' after ``local 
        boards,''; and
            (2) by adding at the end the following:
                    ``(D) Expedited requests.--The Secretary shall 
                expedite requests for waivers of statutory or 
                regulatory requirements that have been approved for a 
                State pursuant to subparagraph (B), if the requirements 
                of this paragraph have been satisfied.''.

SEC. 435C. USE OF CERTAIN REAL PROPERTY.

    Section 193 (29 U.S.C. 2943) is amended to read as follows:

``SEC. 193. TRANSFER OF FEDERAL EQUITY IN STATE EMPLOYMENT SECURITY 
              AGENCY REAL PROPERTY TO THE STATES.

    ``(a) Transfer of Federal Equity.--Notwithstanding any other 
provision of law, any Federal equity acquired in real property through 
grants to States awarded under title III of the Social Security Act (42 
U.S.C. 501 et seq.) or under the Wagner-Peyser Act (29 U.S.C. 49 et 
seq.) is transferred to the States that used the grants for the 
acquisition of such equity. The portion of any real property that is 
attributable to the Federal equity transferred under this section shall 
be used to carry out activities authorized under title III of the 
Social Security Act or the Wagner-Peyser Act. Any disposition of such 
real property shall be carried out in accordance with the procedures 
prescribed by the Secretary and the portion of the proceeds from the 
disposition of such real property that is attributable to the Federal 
equity transferred under this section shall be used to carry out 
activities authorized under title III of the Social Security Act or the 
Wagner-Peyser Act.
    ``(b) Limitation on Use.--A State shall not use funds awarded under 
title III of the Social Security Act or the Wagner-Peyser Act to 
amortize the costs of real property that is purchased by any State on 
or after the effective date of this provision.''.

SEC. 435D. TABLE OF CONTENTS.

    Section 1(b) (29 U.S.C. 9201 note) is amended--
            (1) by striking the item relating to section 106 and 
        inserting the following:

``Sec. 106. Purposes.'';
            (2) by striking the item relating to section 123 and 
        inserting the following:

``Sec. 123. Eligible providers of youth activities.'';
            (3) by striking the item relating to section 169 and 
        inserting the following:

``Sec. 169. Youth challenge grants.'';
            (4) by striking the item relating to section 173 and 
        inserting the following:

``Sec. 173. National dislocated worker grants.'';
            (5) by striking the item relating to section 193 and 
        inserting the following:

``Sec. 193. Transfer of Federal equity in State employment security 
                            agency real property to the States.'';
            (6) by inserting after the item relating to section 243 the 
        following:

``Sec. 244. Integrated English literacy and civics education.''; and
            (7) by striking the item relating to section 502.

                     Subchapter F--Incentive Grants

SEC. 436. INCENTIVE GRANTS.

    Section 503 (20 U.S.C. 9273) is amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) In General.--
            ``(1) Prior to july 1, 2005.--Prior to July 1, 2005, the 
        Secretary shall award a grant to each State in accordance with 
        the provisions of this section as this section was in effect on 
        July 1, 2003.
            ``(2) Beginning on july 1, 2005.--Beginning on July 1, 
        2005, the Secretary shall award a grant to each State on the 
        basis--
                    ``(A) of the State's exceeding the State adjusted 
                levels of performance for title I, the adjusted levels 
                of performance for title II, and the levels of 
                performance for programs under the Carl D. Perkins 
                Vocational and Technical Education Act of 1998 (20 
                U.S.C. 2301 et seq.), for the purpose of carrying out 
                an innovative program consistent with the requirements 
                of any one or more of the programs within title I, 
                title II, or such Act, respectively;
                    ``(B) of exemplary performance of the States in 
                serving hard-to-serve populations (as defined in 
                section 101) (including performance relating to the 
                levels of service provided and the performance outcomes 
                on such performance measures with respect to the 
                populations);
                    ``(C) of States that are effectively--
                            ``(i) coordinating multiple systems into a 
                        more effective workforce investment system, 
                        including coordination of employment services 
                        under the Wagner-Peyser Act (29 U.S.C. 49 et 
                        seq.) and core activities under title I as well 
                        as partner programs described in section 121;
                            ``(ii) expanding access to training, 
                        including through increased leveraging of 
                        resources other than those funded through 
                        programs under title I; or
                            ``(iii) implementing innovative business 
                        and economic development initiatives; or
                    ``(D) of such other factors relating to the 
                performance of the States under title I as the 
                Secretary determines are appropriate.''; and
            (2) in subsection (b)(2), by adding at the end the 
        following:
                    ``(D) Use of funds.--The funds awarded to a State 
                under this section may be used to carry out any 
                activities authorized for States under chapters 4 and 5 
                of subtitle B of title I, title II, and the Carl D. 
                Perkins Vocational and Technical Education Act of 1998 
                (20 U.S.C. 2301 et seq.), including demonstration 
                projects and innovative programs for hard-to-serve 
                populations (as defined in section 101).''.

                  Subchapter G--Conforming Amendments

SEC. 437. CONFORMING AMENDMENTS.

    (a) Older Americans Act of 1965.--Section 512(a) of the Older 
Americans Act of 1965 (42 U.S.C. 3056j(a)) is amended by striking 
``(B)(vi)'' and inserting ``(B)(v)''.
    (b) Adult Education and Family Literacy Act.--Section 
212(b)(3)(A)(vi) of the Adult Education and Family Literacy Act (20 
U.S.C. 9212(b)(3)(A)(vi)) is amended by striking ``the representatives 
described in section 136(i)(1)'' and inserting ``representatives of 
appropriate Federal agencies, and representatives of States and 
political subdivisions, business and industry, employees, eligible 
providers of employment and training activities (as defined in section 
101), educators, and participants (as defined in section 101), with 
expertise regarding workforce investment policies and workforce 
investment activities (as defined in section 101)''.

  CHAPTER 2--AMENDMENTS TO THE ADULT EDUCATION AND FAMILY LITERACY ACT

SEC. 441. SHORT TITLE; PURPOSE.

    (a) Short Title.--This chapter may be cited as the ``Adult 
Education and Family Literacy Act Amendments of 2005''.
    (b) Purpose.--Section 202 of the Adult Education and Family 
Literacy Act (20 U.S.C. 9201) is amended--
            (1) in paragraph (2), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (3), by striking ``education.'' and 
        inserting ``education and in the transition to postsecondary 
        education; and''; and
            (3) by adding at the end the following:
            ``(4) assist immigrants and other individuals with limited 
        English proficiency in improving their reading, writing, 
        speaking, and mathematics skills and acquiring an understanding 
        of the American free enterprise system, individual freedom, and 
        the responsibilities of citizenship.''.

SEC. 441A. DEFINITIONS.

    Section 203 of the Adult Education and Family Literacy Act (20 
U.S.C. 9202) is amended--
            (1) in paragraph (1)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``services or instruction below the 
                postsecondary level'' and inserting ``academic 
                instruction and education services below the 
                postsecondary level that increase an individual's 
                ability to read, write, and speak in English and 
                perform mathematics''; and
                    (B) by striking subparagraph (C)(i) and inserting 
                the following:
                            ``(i) are basic skills deficient as defined 
                        in section 101;'';
            (2) in paragraph (2), by striking ``activities described in 
        section 231(b)'' and inserting ``programs and services which 
        include reading, writing, speaking, or mathematics skills, 
        workplace literacy activities, family literacy activities, 
        English language acquisition activities, or other activities 
        necessary for the attainment of a secondary school diploma or 
        its State recognized equivalent'';
            (3) in paragraph (5)--
                    (A) by inserting ``an organization that has 
                demonstrated effectiveness in providing adult 
                education, that may include'' after ``means'';
                    (B) in subparagraph (B), by striking ``of 
                demonstrated effectiveness'';
                    (C) in subparagraph (C), by striking ``of 
                demonstrated effectiveness''; and
                    (D) in subparagraph (I), by inserting ``or 
                coalition'' after ``consortium'';
            (4) in paragraph (6)--
                    (A) by striking ``literacy program'' and inserting 
                ``language acquisition program'';
                    (B) by striking ``literacy program'' and inserting 
                ``language acquisition program''; and
                    (C) by inserting ``reading, writing, and speaking'' 
                after ``competence in'';
            (5) by redesignating paragraphs (7) through (18) as 
        paragraphs (8) through (19), respectively;
            (6) by inserting after paragraph (6) the following:
            ``(7) Essential components of reading instruction.--The 
        term `essential components of reading instruction' has the 
        meaning given the term in section 1208 of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 6368).''; and
            (7) by striking paragraph (19), as redesignated by 
        paragraph (4), and inserting the following:
            ``(19) Workplace literacy program.--The term `workplace 
        literacy program' means an educational program designed to 
        improve the productivity of the workforce through the 
        improvement of literacy skills that is offered by an eligible 
        provider in collaboration with an employer or an employee 
        organization at a workplace, at an off-site location, or in a 
        simulated workplace environment.''.

SEC. 441B. AUTHORIZATION OF APPROPRIATIONS.

    Section 205 of the Adult Education and Family Literacy Act (20 
U.S.C. 9204) is amended--
            (1) by striking ``1999'' and inserting ``2006''; and
            (2) by striking ``2003'' and inserting ``2011''.

SEC. 441C. HOME SCHOOLS.

    Section 204 of the Adult Education and Family Literacy Act (20 
U.S.C. 9203) is amended to read as follows:

``SEC. 204. HOME SCHOOLS.

    ``Nothing in this title shall be construed to affect home schools, 
whether a home school is treated as a home school or a private school 
under State law, or to compel a parent engaged in home schooling to 
participate in an English literacy program, family literacy services, 
or adult education.''.

SEC. 441D. RESERVATION OF FUNDS; GRANTS TO ELIGIBLE AGENCIES; 
              ALLOTMENTS.

    Section 211 of the Adult Education and Family Literacy Act (20 
U.S.C. 9211) is amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) Reservation of Funds.--From the sum appropriated under 
section 205 for a fiscal year, the Secretary--
            ``(1) shall reserve 1.5 percent to carry out section 242, 
        except that the amount so reserved shall not exceed 
        $10,000,000;
            ``(2) shall reserve 1.5 percent to carry out section 243 
        and subsection (f)(4), except that the amount so reserved shall 
        not exceed $8,000,000;
            ``(3) shall make available, to the Secretary of Labor, 1.72 
        percent for incentive grants under section 136(i); and
            ``(4) shall reserve 12 percent of the amount that remains 
        after reserving funds under paragraphs (1), (2) and (3) to 
        carry out section 244.'';
            (2) in subsection (c)(1)(B), by striking ``$250,000'' and 
        inserting ``$350,000'';
            (3) by striking subsection (d) and inserting the following:
    ``(d) Qualifying Adult.--For the purpose of subsection (c)(2), the 
term `qualifying adult' means an adult who--
            ``(1) is not less than 16 years of age;
            ``(2) is beyond the age of compulsory school attendance 
        under the law of the State or outlying area;
            ``(3) does not have a secondary school diploma or its 
        recognized equivalent; and
            ``(4) is not enrolled in secondary school.'';
            (4) in subsection (e)--
                    (A) by striking paragraph (2) and inserting the 
                following:
            ``(2) Award basis.--The Secretary shall award grants 
        pursuant to paragraph (1) on a competitive basis and pursuant 
        to recommendations from the Pacific Region Educational 
        Laboratory in Honolulu, Hawaii.''; and
                    (B) in paragraph (3), by striking ``shall'' and all 
                that follows through the period and inserting ``shall 
                be eligible to receive a grant under this title until 
                the date when an agreement for the extension of the 
                United States education assistance under the Compact of 
                Free Association for each of the Freely Associated 
                States becomes effective.''; and
            (5) by striking subsection (f) and inserting the following:
    ``(f) Hold-Harmless Provisions.--
            ``(1) In general.--Notwithstanding subsection (c) and 
        subject to paragraph (2), for fiscal year 2005 and each 
        succeeding fiscal year, no eligible agency shall receive an 
        allotment under this section that is less than 90 percent of 
        the allotment the eligible agency received for the preceding 
        fiscal year under this section.
            ``(2) 100 percent allotment.--Notwithstanding paragraphs 
        (1) and (2) of subsection (e), an eligible agency that receives 
        only an initial allotment under subsection (c)(1) (and no 
        additional allotment under subsection (c)(2)) shall receive an 
        allotment under this section that is equal to 100 percent of 
        the initial allotment under subsection (c)(1).
            ``(3) Ratable reduction.--If for any fiscal year the amount 
        available for allotment under this subtitle is insufficient to 
        satisfy the provisions of paragraphs (1) and (2), the Secretary 
        shall ratably reduce the payments to all eligible agencies, as 
        necessary.
            ``(4) Additional assistance.--
                    ``(A) In general.--From amounts reserved under 
                subsection (a)(2), the Secretary shall make grants to 
                eligible agencies described in subparagraph (B) to 
                enable such agencies to provide activities authorized 
                under chapter 2.
                    ``(B) Eligibility.--An eligible agency is eligible 
                to receive a grant under this paragraph for a fiscal 
                year if the amount of the allotment such agency 
                receives under this section for the fiscal year is less 
                than the amount such agency would have received for the 
                fiscal year if the allotment formula under this section 
                as in effect on September 30, 2003, were in effect for 
                such year.
                    ``(C) Amount of grant.--The amount of a grant made 
                to an eligible agency under this paragraph for a fiscal 
                year shall be the difference between--
                            ``(i) the amount of the allotment such 
                        agency would have received for the fiscal year 
                        if the allotment formula under this section as 
                        in effect on September 30, 2003, were in effect 
                        for such year; and
                            ``(ii) the amount of the allotment such 
                        agency receives under this section for the 
                        fiscal year.''.

SEC. 441E. PERFORMANCE ACCOUNTABILITY SYSTEM.

    Section 212 of the Adult Education and Family Literacy Act (20 
U.S.C. 9212) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)(A)(ii), by striking 
                ``additional indicators of performance (if any)'' and 
                inserting ``employment performance indicators'';
                    (B) in paragraph (2)--
                            (i) in subparagraph (A)--
                                    (I) in clause (i), by striking 
                                ``Demonstrated'' and inserting 
                                ``Measurable'';
                                    (II) by striking clause (ii) and 
                                inserting the following:
                            ``(ii) Placement in, retention in, or 
                        completion of, postsecondary education or other 
                        training programs.''; and
                                    (III) in clause (iii), by inserting 
                                ``(including recognized alternative 
                                standards for individuals with 
                                disabilities)'' after ``equivalent'';
                            (ii) by redesignating subparagraph (B) as 
                        subparagraph (C);
                            (iii) by inserting after subparagraph (A), 
                        the following:
                    ``(B) Employment performance indicators.--An 
                eligible agency shall identify in the State plan 
                individual participant employment performance 
                indicators, including entry into unsubsidized 
                employment, retention in unsubsidized employment, and 
                career advancement. The State workforce investment 
                board shall assist the eligible agency in obtaining and 
                using quarterly wage records to collect data for such 
                indicators, consistent with applicable Federal and 
                State privacy laws.'';
                            (iv) in subparagraph (C), as redesignated 
                        by clause (ii), by inserting ``relevant'' after 
                        ``additional''; and
                            (v) by adding at the end the following:
                    ``(D) Indicators for workplace literacy programs.--
                Special accountability measures may be negotiated for 
                workplace literacy programs.''; and
                    (C) in paragraph (3)--
                            (i) in subparagraph (A)--
                                    (I) in clause (i)(II), by striking 
                                ``in performance'' and inserting ``the 
                                agency's performance outcomes in an 
                                objective, quantifiable, and measurable 
                                form'';
                                    (II) in clause (ii), by striking 
                                ``3 programs years'' and inserting ``2 
                                program years'';
                                    (III) in clause (iii), by striking 
                                ``first 3 years'' and inserting ``first 
                                2 years'';
                                    (IV) in clause (iii), by striking 
                                ``first 3 program years'' and inserting 
                                ``first 2 program years'';
                                    (V) in clause (v), by striking 
                                ``4th and 5th'' and inserting ``3rd and 
                                4th'';
                                    (VI) in clause (v), by striking 
                                ``to the fourth'' and inserting ``to 
                                the third'';
                                    (VII) in clause (v), by striking 
                                ``fourth and fifth'' and inserting 
                                ``third and fourth''; and
                                    (VIII) in clause (vi), by striking 
                                ``(II)'' and inserting ``(I)'';
                            (ii) in subparagraph (B)--
                                    (I) by striking the heading and 
                                inserting ``Levels of employment 
                                performance'';
                                    (II) by striking ``may'' and 
                                inserting ``shall''; and
                                    (III) by striking ``additional'' 
                                and inserting ``employment''; and
                            (iii) by adding at the end the following:
                    ``(C) Alternative assessment systems.--Eligible 
                agencies may approve the use of assessment systems that 
                are not commercially available standardized systems if 
                such systems meet the Standards for Educational and 
                Psychological Testing issued by the Joint Committee on 
                Standards for Educational and Psychological Testing of 
                the American Educational Research Association, the 
                American Psychological Association, and the National 
                Council on Measurement in Education.'';
            (2) in subsection (c)--
                    (A) in paragraph (1)--
                            (i) by inserting ``the Governor, the State 
                        legislature, and the State workforce investment 
                        board'' after ``Secretary''; and
                            (ii) by striking ``including'' and all that 
                        follows through the period and inserting 
                        ``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.
                    ``(C) The number of enrollees 16 to 18 years of age 
                who enrolled in adult education not later than 1 year 
                after participating in secondary school education.'';
                    (B) in paragraph (2)(A), by inserting ``eligible 
                providers and'' after ``available to''; and
                    (C) by adding at the end the following:
            ``(3) Data Access.--The report made available under 
        paragraph (2) shall indicate which eligible agencies did not 
        have access to State unemployment insurance wage data in 
        measuring employment performance indicators.''; and
            (3) by adding at the end the following:
    ``(d) Program Improvement.--
            ``(1) In general.--If the Secretary determines that an 
        eligible agency did not meet its adjusted levels of performance 
        for the core indicators of performance described in subsection 
        (b)(2)(A) for any program year, the eligible agency shall--
                    ``(A) work with the Secretary to develop and 
                implement a program improvement plan for the 2 program 
                years succeeding the program year in which the eligible 
                agency did not meet its adjusted levels of performance; 
                and
                    ``(B) revise its State plan under section 224, if 
                necessary, to reflect the changes agreed to in the 
                program improvement plan.
            ``(2) Further assistance.--If, after the period described 
        in paragraph (1)(A), the Secretary has provided technical 
        assistance to the eligible agency but determines that the 
        eligible agency did not meet its adjusted levels of performance 
        for the core indicators of performance described in subsection 
        (b)(2)(A), the Secretary may require the eligible agency to 
        make further revisions to the program improvement plan 
        described in paragraph (1). Such further revisions shall be 
        accompanied by further technical assistance from the 
        Secretary.''.

SEC. 441F. STATE ADMINISTRATION.

    Section 221(1) of the Adult Education and Family Literacy Act (20 
U.S.C. 9221(1)) is amended by striking ``and implementation'' and 
inserting ``implementation, and monitoring''.

SEC. 441G. STATE DISTRIBUTION OF FUNDS; MATCHING REQUIREMENT.

    Section 222 of the Adult Education and Family Literacy Act (20 
U.S.C. 9222) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) by striking ``82.5'' the first place 
                        such term appears and inserting ``80''; and
                            (ii) by striking ``the 82.5 percent'' and 
                        inserting ``such amount'';
                    (B) in paragraph (2), by striking ``not more than 
                12.5 percent'' and inserting ``not more than 15 
                percent''; and
                    (C) in paragraph (3), by striking ``$65,000'' and 
                inserting ``$75,000''; and
            (2) in subsection (b)(1), by striking ``equal to'' and 
        inserting ``that is not less than''.

SEC. 441H. STATE LEADERSHIP ACTIVITIES.

    Section 223 of the Adult Education and Family Literacy Act (20 
U.S.C. 9223) is amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1), by 
                inserting ``to develop or enhance the adult education 
                system of the State'' after ``activities'';
                    (B) in paragraph (1), by striking ``instruction 
                incorporating'' and all that follows through the period 
                and inserting ``instruction incorporating the essential 
                components of reading instruction and instruction 
                provided by volunteers or by personnel of a State or 
                outlying area.'';
                    (C) in paragraph (2), by inserting ``, including 
                development and dissemination of instructional and 
                programmatic practices based on the most rigorous 
                research available in reading, writing, speaking, 
                mathematics, English language acquisition programs, 
                distance learning and staff training'' after 
                ``activities'';
                    (D) in paragraph (5), by striking ``monitoring 
                and'';
                    (E) by striking paragraph (6) and inserting the 
                following:
            ``(6) The development and implementation of technology 
        applications, translation technology, or distance learning, 
        including professional development to support the use of 
        instructional technology.''; and
                    (F) by striking paragraph (7) through paragraph 
                (11) and inserting the following:
            ``(7) Coordination with--
                    ``(A) other partners carrying out activities 
                authorized under this Act;
                    ``(B) existing support services, such as 
                transportation, child care, mental health services, and 
                other assistance designed to increase rates of 
                enrollment in, and successful completion of adult 
                education and literacy activities, for adults enrolled 
                in such activities.
            ``(8) Developing and disseminating curricula, including 
        curricula incorporating the essential components of reading 
        instruction as they relate to adults.
            ``(9) The provision of assistance to eligible providers in 
        developing, implementing, and reporting measurable progress in 
        achieving the objectives of this subtitle.
            ``(10) The development and implementation of a system to 
        assist in the transition from adult basic education to 
        postsecondary education, including linkages with postsecondary 
        educational institutions.
            ``(11) Integration of literacy and English language 
        instruction with occupational skill training, and promoting 
        linkages with employers.
            ``(12) Activities to promote workplace literacy programs.
            ``(13) Activities to promote and complement local outreach 
        initiatives described in section 243(b)(3)(F).
            ``(14) In cooperation with efforts funded under sections 
        242 and 243, the development of curriculum frameworks and 
        rigorous content standards that--
                    ``(A) specify what adult learners should know and 
                be able to do in the areas of reading and language 
                arts, mathematics, and English language acquisition; 
                and
                    ``(B) take into consideration the following:
                            ``(i) State academic standards established 
                        under section 1111(b) of the Elementary and 
                        Secondary Education Act of 1965.
                            ``(ii) The current adult skills and 
                        literacy assessments used in the State.
                            ``(iii) The core indicators of performance 
                        established under section 212(b)(2)(A).
                            ``(iv) Standards and academic requirements 
                        for enrollment in non-remedial, for-credit, 
                        courses in State supported postsecondary 
                        education institutions.
                            ``(v) Where appropriate, the basic and 
                        literacy skill content of occupational and 
                        industry skill standards widely used by 
                        business and industry in the State.
            ``(15) In cooperation with efforts funded under sections 
        242 and 243, development and piloting of--
                    ``(A) new assessment tools and strategies that 
                identify the needs and capture the gains of students at 
                all levels, with particular emphasis on--
                            ``(i) students at the lowest achievement 
                        level;
                            ``(ii) students who have limited English 
                        proficiency; and
                            ``(iii) adults with learning disabilities;
                    ``(B) options for improving teacher quality and 
                retention; and
                    ``(C) assistance in converting research into 
                practice.
            ``(16) The development and implementation of programs and 
        services to meet the needs of adult learners with learning 
        disabilities or limited English proficiency.
            ``(17) Other activities of statewide significance that 
        promote the purpose of this title.''; and
            (2) in subsection (c), by striking ``being State- or 
        outlying area-imposed'' and inserting ``being imposed by the 
        State or outlying area''.

SEC. 441I. STATE PLAN.

    Section 224 of the Adult Education and Family Literacy Act (20 
U.S.C. 9224) is amended--
            (1) in subsection (a)--
                    (A) by striking the heading and inserting ``4-Year 
                Plans''; and
                    (B) in paragraph (1), by striking ``5'' and 
                inserting ``4'';
            (2) in subsection (b)--
                    (A) in paragraph (1), by inserting ``and the role 
                of provider and cooperating agencies in preparing the 
                assessment'' after ``serve'';
                    (B) by striking paragraph (2) and inserting the 
                following:
            ``(2) a description of how the eligible agency will address 
        the adult education and literacy needs identified under 
        paragraph (1) in each workforce development area of the State, 
        using funds received under this subtitle, as well as other 
        Federal, State, or local funds received in partnership with 
        other agencies for the purpose of adult literacy as 
        applicable;'';
                    (C) in paragraph (3)--
                            (i) by inserting ``and measure'' after 
                        ``evaluate'';
                            (ii) by inserting ``and improvement'' after 
                        ``effectiveness''; and
                            (iii) by striking ``212'' and inserting 
                        ``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 subtitle 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 
                        performance)'';
                    (D) in paragraph (4), by striking ``will ensure the 
                improvement of'' and inserting ``improved'';
                    (E) by redesignating paragraphs (5) through (12) as 
                paragraphs (6) through (13), respectively;
                    (F) by inserting after paragraph (4) the following:
            ``(5) a description of how the eligible agency will improve 
        teacher quality, the professional development of eligible 
        providers, and instruction;'';
                    (G) in paragraph (6) (as redesignated by 
                subparagraph (E)), by striking ``who'' and all that 
                follows through the semicolon and inserting ``that--
                    ``(A) offers flexible schedules and coordinates 
                with necessary Federal, State, and local support 
                services (such as child care, transportation, mental 
                health services, and case management) to enable 
                individuals, including individuals with disabilities or 
                individuals with other special needs, to participate in 
                adult education and literacy activities; and
                    ``(B) attempts to coordinate with support services 
                that are not provided under this subtitle prior to 
                using funds for adult education and literacy activities 
                provided under this subtitle for support services;'';
                    (H) in paragraph (10) (as redesignated by 
                subparagraph (E)), by striking ``plan'' and inserting 
                ``plan, which process--
                    ``(A) shall include the State Workforce Investment 
                Board, the Governor, State officials representing 
                public schools, community colleges, welfare agencies, 
                agencies that provide services to individuals with 
                disabilities, other State agencies that promote or 
                operate adult education and literacy activities, and 
                direct providers of such adult literacy services;
                    ``(B) may include consultation with the State 
                agency for higher education, institutions responsible 
                for professional development of adult education and 
                literacy education program instructors, institutions of 
                higher education, representatives of business and 
                industry, refugee assistance programs, and community-
                based organizations, as defined in section 101;'';
                    (I) in paragraph (11) (as redesignated by 
                subparagraph (E))--
                            (i) by inserting ``assess potential 
                        population needs and'' after ``will'';
                            (ii) in subparagraph (A), by striking 
                        ``students'' and inserting ``individuals'';
                            (iii) in subparagraph (C), by striking 
                        ``and'' after the semicolon; and
                            (iv) by adding at the end the following:
                    ``(E) the unemployed; and
                    ``(F) those who are employed, but at levels below 
                self-sufficiency, as defined in section 101.'';
                    (J) in paragraph (12) (as redesignated by 
                subparagraph (E))--
                            (i) by inserting ``and how the plan 
                        submitted under this subtitle is coordinated 
                        with the plan submitted by the State under 
                        title I'' after ``eligible agency''; and
                            (ii) by striking ``and'' after the 
                        semicolon;
                    (K) in paragraph (13) (as redesignated by 
                subparagraph (E)), by striking ``231(c)(1).'' and 
                inserting ``231(c)(1), including--
                    ``(A) how the State will build the capacity of 
                organizations that provide adult education and literacy 
                activities; and
                    ``(B) how the State will increase the participation 
                of business and industry in adult education and 
                literacy activities;''; and
                    (L) by adding at the end the following:
            ``(14) a description of how the eligible agency will 
        consult with any State agency responsible for postsecondary 
        education to develop adult education programs and services 
        (including academic skill development and support services) 
        that prepare students to enter postsecondary education upon 
        completion of secondary school programs or their recognized 
        equivalent;
            ``(15) a description of how the eligible agency will 
        consult with the State agency responsible for workforce 
        development to develop adult education programs and services 
        that are designed to prepare students to enter the workforce; 
        and
            ``(16) a description of how the eligible agency will 
        improve the professional development of eligible providers of 
        adult education and literacy activities.'';
            (3) in subsection (c), by adding at the end the following: 
        ``At the end of the first 2-year period of the 4-year State 
        plan, the eligible agency shall review and, as needed, revise 
        the 4-year State plan.''; and
            (4) in subsection (d)--
                    (A) in paragraph (1), by inserting ``, the chief 
                State school officer, the State officer responsible for 
                administering community and technical colleges, and the 
                State Workforce Investment Board'' after ``Governor''; 
                and
                    (B) in paragraph (2), by striking ``comments'' and 
                all that follows through the period and inserting 
                ``comments regarding the State plan by the Governor, 
                the chief State school officer, the State officer 
                responsible for administering community and technical 
                colleges, and the State Workforce Investment Board, and 
                any revision to the State plan, are submitted to the 
                Secretary.''.

SEC. 441J. PROGRAMS FOR CORRECTIONS EDUCATION AND OTHER 
              INSTITUTIONALIZED INDIVIDUALS.

    Section 225 of the Adult Education and Family Literacy Act (20 
U.S.C. 9225) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking ``basic 
                education'' and inserting ``adult education and 
                literacy activities'';
                    (B) in paragraph (2), by inserting ``and'' after 
                the semicolon;
                    (C) by striking paragraph (3); and
                    (D) by redesignating paragraph (4) as paragraph 
                (3); and
            (2) in subsection (d), by striking ``Definition of Criminal 
        Offender.--'' and inserting ``Definitions.--In this section:''.

SEC. 441K. GRANTS AND CONTRACTS FOR ELIGIBLE PROVIDERS.

    Section 231 of the Adult Education and Family Literacy Act (20 
U.S.C. 9241) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking ``workplace 
                literacy services'' and inserting ``workplace literacy 
                programs''; and
                    (B) in paragraph (3), by striking ``literacy'' and 
                inserting ``language acquisition'';
            (2) in subsection (e)--
                    (A) in paragraph (1), by inserting ``to be achieved 
                annually on the core indicators of performance and 
                employment performance indicators described in section 
                212(b)(2)'' after ``outcomes'';
                    (B) by striking paragraph (3) and inserting the 
                following:
            ``(3) the commitment of the eligible provider to be 
        responsive to local needs and to serve individuals in the 
        community who were identified by the assessment as most in need 
        of adult literacy services, including individuals who are low-
        income, have minimal literacy skills, have learning 
        disabilities, or have limited English proficiency;'';
                    (C) in paragraph (4)(B), by striking ``, such as'' 
                and all that follows through the semicolon and 
                inserting ``that include the essential components of 
                reading instruction;'';
                    (D) in paragraph (5), by striking ``research'' and 
                inserting ``the most rigorous research available'';
                    (E) in paragraph (7), by inserting ``, when 
                appropriate and based on the most rigorous research 
                available,'' after ``real life contexts'';
                    (F) in paragraph (9), by inserting ``education, 
                job-training, and social service'' after ``other 
                available'';
                    (G) in paragraph (10)--
                            (i) by inserting ``coordination with 
                        Federal, State, and local'' after ``schedules 
                        and''; and
                            (ii) by striking ``and transportation'' and 
                        inserting ``, transportation, mental health 
                        services, and case management'';
                    (H) in paragraph (11)--
                            (i) by inserting ``measurable'' after 
                        ``report'';
                            (ii) by striking ``eligible agency'';
                            (iii) by inserting ``established by the 
                        eligible agency'' after ``performance 
                        measures''; and
                            (iv) by striking ``and'' after the 
                        semicolon;
                    (I) in paragraph (12), by striking ``literacy 
                programs.'' and inserting ``language acquisition 
                programs and civics education programs;''; and
                    (J) by adding at the end the following:
            ``(13) the capacity of the eligible provider to produce 
        information on performance results, including enrollments and 
        measurable participant outcomes;
            ``(14) whether reading, writing, speaking, mathematics, and 
        English language acquisition instruction provided by the 
        eligible provider are based on the best practices derived from 
        the most rigorous research available;
            ``(15) whether the eligible provider's applications of 
        technology and services to be provided are sufficient to 
        increase the amount and quality of learning and lead to 
        measurable learning gains within specified time periods; and
            ``(16) the capacity of the eligible provider to serve adult 
        learners with learning disabilities.''.

SEC. 441L. LOCAL APPLICATION.

    Section 232 of the Adult Education and Family Literacy Act (20 
U.S.C. 9242) is amended--
            (1) in paragraph (1)--
                    (A) by inserting ``consistent with the requirements 
                of this subtitle'' after ``spent''; and
                    (B) by striking ``and'' after the semicolon;
            (2) in paragraph (2), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(3) information that addresses each of the considerations 
        required under section 231(e).''.

SEC. 441M. LOCAL ADMINISTRATIVE COST LIMITS.

    Section 233 of the Adult Education and Family Literacy Act (20 
U.S.C. 9243) is amended--
            (1) in subsection (a)(2)--
                    (A) by inserting ``and professional'' after 
                ``personnel''; and
                    (B) by inserting ``development of measurable goals 
                in reading, writing, and speaking the English language, 
                and in mathematical computation,'' after 
                ``development,''; and
            (2) in subsection (b)--
                    (A) by inserting ``and professional'' after 
                ``personnel''; and
                    (B) by inserting ``development of measurable goals 
                in reading, writing, and speaking the English language, 
                and in mathematical computation,'' after 
                ``development,''.

SEC. 441N. ADMINISTRATIVE PROVISIONS.

    Section 241(b) of the Adult Education and Family Literacy Act (20 
U.S.C. 9251(b)) is amended--
            (1) in paragraph (1)(A)--
                    (A) by striking ``adult education and literacy 
                activities'' both places such terms appear and 
                inserting ``activities under this subtitle''; and
                    (B) by striking ``was'' and inserting ``were''; and
            (2) in paragraph (4)--
                    (A) by inserting ``not more than'' after ``this 
                subsection for''; and
                    (B) by striking ``only''.

SEC. 441O. NATIONAL INSTITUTE FOR LITERACY.

    Section 242 of the Adult Education and Family Literacy Act (20 
U.S.C. 9252) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``literacy'' and 
                inserting ``effective literacy programs for children, 
                youth, adults, and families'';
                    (B) in paragraph (2), by inserting ``and 
                disseminates information on'' after ``coordinates''; 
                and
                    (C) by striking paragraph (3)(A) and inserting the 
                following:
                    ``(A) coordinating and participating in the Federal 
                effort to identify and disseminate information on 
                literacy that is derived from scientifically based 
                research, or the most rigorous research available and 
                effective programs that serve children, youth, adults, 
                and families; and'';
            (2) by striking subsection (b)(3) and inserting the 
        following:
            ``(3) Recommendations.--The Interagency Group, in 
        consultation with the National Institute for Literacy Advisory 
        Board (in this section referred to as the `Board') established 
        under subsection (e), shall plan the goals of the Institute and 
        the implementation of any programs to achieve the goals. The 
        Board may also request a meeting of the Interagency Group to 
        discuss any recommendations the Board may make.'';
            (3) in subsection (c)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A)--
                                    (I) by striking ``to establish'' 
                                and inserting ``to maintain'';
                                    (II) in clause (i), by striking 
                                ``phonemic awareness, systematic 
                                phonics, fluency, and reading 
                                comprehension'' and inserting ``the 
                                essential components of reading 
                                instruction'';
                                    (III) in clause (iii), by striking 
                                ``and'' after the semicolon;
                                    (IV) in clause (iv), by inserting 
                                ``and'' after the semicolon; and
                                    (V) by adding at the end the 
                                following:
                            ``(v) a list of local adult education and 
                        literacy programs;'';
                            (ii) in subparagraph (C)--
                                    (I) by striking ``reliable and 
                                replicable research'' and inserting 
                                ``reliable and replicable research as 
                                defined by the Institute of Education 
                                Sciences''; and
                                    (II) by striking ``especially with 
                                the Office of Educational Research and 
                                Improvement in the Department of 
                                Education,'';
                            (iii) in subparagraph (D), by striking 
                        ``phonemic awareness, systematic phonics, 
                        fluency, and reading comprehension based on'' 
                        and inserting ``the essential components of 
                        reading instruction and'';
                            (iv) in subparagraph (H), by striking 
                        ``and'' after the semicolon;
                            (v) in subparagraph (I), by striking the 
                        period at the end and inserting a semicolon; 
                        and
                            (vi) by adding at the end the following:
                    ``(J) to work cooperatively with the Department of 
                Education to assist States that are pursuing the 
                implementation of standards-based educational 
                improvements for adults through the dissemination of 
                training, technical assistance, and related support and 
                through the development and dissemination of related 
                standards-based assessment instruments; and
                    ``(K) to identify rigorous research on the 
                effectiveness of instructional practices and 
                organizational strategies relating to literacy programs 
                on the acquisition of skills in reading, writing, 
                English acquisition, and mathematics.''; and
                    (B) by adding at the end the following:
            ``(3) Coordination.--In identifying the reliable and 
        replicable research the Institute will support, the Institute 
        shall use standards for research quality that are consistent 
        with those of the Institute of Education Sciences.'';
            (4) in subsection (e)--
                    (A) in paragraph (1)(B)--
                            (i) in clause (i), by striking ``literacy 
                        programs'' and inserting ``language acquisition 
                        programs'';
                            (ii) in clause (ii), by striking ``literacy 
                        programs'' and inserting ``or have participated 
                        in or partnered with workplace literacy 
                        programs'';
                            (iii) in clause (iv), by inserting ``, 
                        including adult literacy research'' after 
                        ``research'';
                            (iv) in clause (vi), by striking ``and'' 
                        after the semicolon;
                            (v) in clause (vii), by striking the period 
                        at the end and inserting ``; and''; and
                            (vi) by adding at the end the following:
                            ``(viii) institutions of higher 
                        education.'';
                    (B) in paragraph (2)--
                            (i) in subparagraph (B), by striking 
                        ``and'' after the semicolon;
                            (ii) in subparagraph (C), by striking the 
                        period at the end and inserting ``; and''; and
                            (iii) by adding at the end the following:
                    ``(D) review the biennial report submitted to 
                Congress pursuant to subsection (k).''; and
                    (C) in paragraph (5), by striking the second 
                sentence and inserting the following: ``A 
                recommendation of the Board may be passed only by a 
                majority of the Board's members present at a meeting 
                for which there is a quorum.''; and
            (5) in subsection (k)--
                    (A) by striking ``Labor and Human Resources'' and 
                inserting ``Health, Education, Labor, and Pensions''; 
                and
                    (B) by striking ``The Institute shall submit a 
                report biennially to'' and inserting ``Not later than 1 
                year after the date of enactment of the Adult Education 
                and Family Literacy Act Amendments of 2005, and 
                biennially thereafter, the Institute shall submit a 
                report to''.

SEC. 441P. NATIONAL LEADERSHIP ACTIVITIES.

    Section 243 of the Adult Education and Family Literacy Act (20 
U.S.C. 9253) is amended to read as follows:

``SEC. 243. NATIONAL LEADERSHIP ACTIVITIES.

    ``(a) In General.--The Secretary shall establish and carry out a 
program of national leadership activities to enhance the quality of 
adult education and literacy programs nationwide.
    ``(b) Permissive Activities.--The national leadership activities 
described in subsection (a) may include the following:
            ``(1) Technical assistance, including--
                    ``(A) assistance provided to eligible providers in 
                developing and using performance measures for the 
                improvement of adult education and literacy activities, 
                including family literacy services;
                    ``(B) assistance related to professional 
                development activities, and assistance for the purposes 
                of developing, improving, identifying, and 
                disseminating the most successful methods and 
                techniques for providing adult education and literacy 
                activities, including family literacy services, based 
                on scientific evidence where available;
                    ``(C) assistance in distance learning and promoting 
                and improving the use of technology in the classroom;
                    ``(D) assistance in developing valid, measurable, 
                and reliable performance data, including data around 
                employment and employment outcome, and using 
                performance information for the improvement of adult 
                education and literacy programs; and
                    ``(E) assistance to help States, particularly low-
                performing States, meet the requirements of section 
                212.
            ``(2) A program of grants, contracts, or cooperative 
        agreements awarded on a competitive basis to national, 
        regional, or local networks of private nonprofit organizations, 
        public libraries, or institutions of higher education to build 
        the capacity of such networks' members to meet the performance 
        requirements of eligible providers under this title and involve 
        adult learners in program improvement.
            ``(3) Funding national leadership activities that are not 
        described in paragraph (1), either directly or through grants, 
        contracts, or cooperative agreements awarded on a competitive 
        basis to or with postsecondary educational institutions, public 
        or private organizations or agencies, or consortia of such 
        institutions, organizations, or agencies, such as--
                    ``(A) developing, improving, and identifying the 
                most successful methods and techniques for addressing 
                the education needs of adults, including instructional 
                practices using the essential components of reading 
                instruction based on the work of the National Institute 
                of Child Health and Human Development;
                    ``(B) increasing the effectiveness of, and 
                improving the quality of, adult education and literacy 
                activities, including family literacy services;
                    ``(C) carrying out research on national literacy 
                basic skill acquisition for adult learning, including 
                estimating the number of adults functioning at the 
                lowest levels of literacy proficiency;
                    ``(D)(i) carrying out demonstration programs;
                    ``(ii) disseminating best practices information, 
                including information regarding promising practices 
                resulting from federally funded demonstration programs; 
                and
                    ``(iii) developing and replicating best practices 
                and innovative programs, including--
                            ``(I) the development of models for basic 
                        skill certificates;
                            ``(II) the identification of effective 
                        strategies for working with adults with 
                        learning disabilities and with adults with 
                        limited English proficiency;
                            ``(III) integrated basic and workplace 
                        skills education programs;
                            ``(IV) coordinated literacy and employment 
                        services; and
                            ``(V) postsecondary education transition 
                        programs;
                    ``(E) providing for the conduct of an independent 
                evaluation and assessment of adult education and 
                literacy activities through studies and analyses 
                conducted independently through grants and contracts 
                awarded on a competitive basis, which evaluation and 
                assessment shall include descriptions of--
                            ``(i) the effect of performance measures 
                        and other measures of accountability on the 
                        delivery of adult education and literacy 
                        activities, including family literacy services;
                            ``(ii) the extent to which the adult 
                        education and literacy activities, including 
                        family literacy services, increase the literacy 
                        skills of adults (and of children, in the case 
                        of family literacy services), lead the 
                        participants in such activities to involvement 
                        in further education and training, enhance the 
                        employment and earnings of such participants, 
                        and, if applicable, lead to other positive 
                        outcomes, such as reductions in recidivism in 
                        the case of prison-based adult education and 
                        literacy activities;
                            ``(iii) the extent to which the provision 
                        of support services to adults enrolled in adult 
                        education and family literacy programs increase 
                        the rate of enrollment in, and successful 
                        completion of, such programs; and
                            ``(iv) the extent to which different types 
                        of providers measurably improve the skills of 
                        participants in adult education and literacy 
                        programs;
                    ``(F) supporting efforts aimed at capacity building 
                of programs at the State and local levels such as 
                technical assistance in program planning, assessment, 
                evaluation, and monitoring of activities carried out 
                under this subtitle;
                    ``(G) collecting data, such as data regarding the 
                improvement of both local and State data systems, 
                through technical assistance and development of model 
                performance data collection systems;
                    ``(H) supporting the development of an entity that 
                would produce and distribute technology-based programs 
                and materials for adult education and literacy programs 
                using an interconnection system (as 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;
                    ``(I) determining how participation in adult 
                education and literacy activities prepares individuals 
                for entry into postsecondary education and employment 
                and, in the case of prison-based services, has an 
                effect on recidivism; and
                    ``(J) other activities designed to enhance the 
                quality of adult education and literacy activities 
                nationwide.''.

SEC. 441Q. INTEGRATED ENGLISH LITERACY AND CIVICS EDUCATION.

    Chapter 4 of subtitle A of title II (29 U.S.C. 9251 et seq.) is 
amended by adding at the end the following:

``SEC. 244. INTEGRATED ENGLISH LITERACY AND CIVICS EDUCATION.

    ``(a) In General.--From funds made available under section 
211(a)(4) for each fiscal year the Secretary shall award grants to 
States, from allotments under subsection (b), for integrated English 
literacy and civics education.
    ``(b) Allotment.--
            ``(1) In general.--Subject to paragraph (2), from amounts 
        made available under section 211(a)(4) for a fiscal year the 
        Secretary shall allocate--
                    ``(A) 65 percent to the States on the basis of a 
                State's need for integrated English literacy and civics 
                education as determined by calculating each State's 
                share of a 10-year average of the Immigration and 
                Naturalization Service data for immigrants admitted for 
                legal permanent residence for the 10 most recent years; 
                and
                    ``(B) 35 percent to the States on the basis of 
                whether the State experienced growth as measured by the 
                average of the 3 most recent years for which 
                Immigration and Naturalization Service data for 
                immigrants admitted for legal permanent residence are 
                available.
            ``(2) Minimum.--No State shall receive an allotment under 
        paragraph (1) in an amount that is less than $60,000.''.

SEC. 441R. TRANSITION.

    The Secretary shall take such steps as the Secretary determines to 
be appropriate to provide for the orderly transition to the authority 
of the Adult Education and Family Literacy Act (as amended by this 
chapter) from any authority under provisions of the Adult Education and 
Family Literacy Act (as such Act was in effect on the day before the 
date of enactment of the Adult Education and Family Literacy Act 
Amendments of 2005).

            CHAPTER 3--AMENDMENTS TO OTHER PROVISIONS OF LAW

SEC. 451. WAGNER-PEYSER ACT.

    (a) Conforming Amendment.--Section 2(3) of the Wagner-Peyser Act 
(29 U.S.C. 49a(3)) is amended by striking ``section 134(c)'' and 
inserting ``section 121(e)''.
    (b) Colocation.--Section 3 of the Wagner-Peyser Act (29 U.S.C. 49b) 
is amended by adding at the end the following:
    ``(d) In order to avoid duplication of services and enhance 
integration of services, employment services offices in each State 
shall be colocated with comprehensive one-stop centers established 
under title I of the Workforce Investment Act of 1998 (29 U.S.C. 2801 
et seq.).''.
    (c) Cooperative Statistical Program.--Section 14 of the Wagner-
Peyser Act (29 U.S.C. 49l-1) is amended by striking the section heading 
and all that follows through ``There'' and inserting the following:

``SEC. 14. COOPERATIVE STATISTICAL PROGRAM.

    ``There''.
    (d) Workforce and Labor Market Information System.--Section 15 of 
the Wagner-Peyser Act (29 U.S.C. 49l-2) is amended--
            (1) by striking the section heading and inserting the 
        following:

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

            (2) by striking ``employment statistics system'' each place 
        it appears and inserting ``workforce and labor market 
        information system'';
            (3) in subsection (a)(1), by striking ``of employment 
        statistics'';
            (4) in subsection (b)(2)(E)--
                    (A) in clause (i), by adding ``and'' at the end;
                    (B) in clause (ii), by striking ``; and'' and 
                inserting a period; and
                    (C) by striking clause (iii);
            (5) by striking subsections (c) and (d) and inserting the 
        following:
    ``(c) National Electronic Tools To Provide Services.--The 
Secretary, in consultation with States, is authorized to assist in the 
development of national electronic tools that may be used to improve 
access to workforce information for individuals through--
            ``(1) the one-stop delivery systems established under 
        section 121(e) of the Workforce Investment Act of 1998 (29 
        U.S.C. 2841(e)); and
            ``(2) such other delivery systems as the Secretary 
        determines to be appropriate.
    ``(d) Two-Year Plan.--The Secretary, working through the Bureau of 
Labor Statistics, and in cooperation with the States and with the 
assistance of the Employment and Training Administration and other 
appropriate Federal agencies, shall prepare a 2-year plan which shall 
be the mechanism for achieving cooperative management of the nationwide 
workforce and labor market information system described in subsection 
(a) and the statewide workforce and labor market information systems 
that comprise the nationwide system. The plan shall--
            ``(1) describe the steps the to be taken in the following 2 
        years to carry out the duties described in subsection (b)(2);
            ``(2) evaluate the performance of the system and recommend 
        needed improvements, with particular attention to the 
        improvements needed at the State and local levels; and
            ``(3) describe the involvement of States in the development 
        of the plan, pursuant to a process established by the Secretary 
        in cooperation with the States in accordance with subsection 
        (i).'';
            (6) in subsection (e)(2)--
                    (A) in subparagraph (G), by adding ``and'' at the 
                end;
                    (B) by striking subparagraph (H); and
                    (C) by redesignating subparagraph (I) as 
                subparagraph (H);
            (7) in subsection (g), by striking ``1999 through 2004'' 
        and inserting ``2006 through 2011 to enable the Secretary to 
        carry out the provisions of this section in a timely manner 
        through grants or cooperative agreements with the States'';
            (8) in subsection (g)--
                    (A) by striking ``There are'' and inserting the 
                following:
            ``(1) In general.--There are''; and
                    (B) by adding at the end the following:
            ``(2) Distribution of funds.--With regard to distributing 
        funds appropriated under paragraph (1) (relating to workforce 
        and labor market information funding) for fiscal years 2006 
        through 2011, the Secretary shall continue to distribute the 
        funds to the States in the manner in which the Secretary 
        distributed funds to the States under this section for fiscal 
        years 1999 through 2003.''; and
            (9) by adding at the end the following:
    ``(i) Coordination With the States.--The Secretary, working though 
the Bureau of Labor Statistics and in coordination with the Employment 
and Training Administration, shall consult at least annually with 
representatives of each of the 10 Federal regions of the Department of 
Labor, elected (pursuant to a process established by the Secretary) by 
and from the State workforce and labor market information directors 
affiliated with the State agencies that perform the duties described in 
subsection (e)(2).''.

                CHAPTER 4--REHABILITATION ACT AMENDMENTS

SEC. 461. SHORT TITLE.

    This chapter may be cited as the ``Rehabilitation Act Amendments of 
2005''.

SEC. 461A. TECHNICAL AMENDMENTS TO TABLE OF CONTENTS.

    (a) Incentive Grants.--Section 1(b) of the Rehabilitation Act of 
1973 (29 U.S.C. 701 note) is amended by inserting after the item 
relating to section 112 the following:

                              ``Sec. 113. Incentive grants.''.
    (b) Independent Living Services for Older Individuals Who Are 
Blind.--Section 1(b) of the Rehabilitation Act of 1973 (29 U.S.C. 701 
note) is amended by striking the items relating to sections 752 and 753 
and inserting the following:

                              ``Sec. 752. Training and technical 
                                        assistance.
                              ``Sec. 753. Program of grants.
                              ``Sec. 754. Authorization of 
                                        appropriations.''.

SEC. 461B. PURPOSE.

    Section 2(b) of the Rehabilitation Act of 1973 (29 U.S.C. 701(b)) 
is amended--
            (1) in paragraph (1)(F), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (2), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(3) to provide opportunities for employers and 
        rehabilitation service providers to provide meaningful input at 
        all levels of government to ensure successful employment of 
        individuals with disabilities.''.

SEC. 461C. DEFINITIONS.

    Section 7 of the Rehabilitation Act of 1973 (29 U.S.C. 705) is 
amended--
            (1) in paragraph (2)(B)--
                    (A) in the matter preceding clause (i), by 
                inserting ``and literacy services'' after ``supported 
                employment''; and
                    (B) in clause (iii), by inserting ``and literacy 
                skills'' after ``educational achievements'';
            (2) by striking paragraph (7) and inserting the following:
            ``(7) Consumer organization.--The term `consumer 
        organization' means a membership organization in which a 
        majority of the organization's members and a majority of the 
        organization's officers are individuals with disabilities.'';
            (3) in paragraph (17)--
                    (A) in subparagraph (C), by striking ``and'' after 
                the semicolon;
                    (B) in subparagraph (D), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(E) maintaining individuals with significant 
                disabilities in, or transitioning individuals with 
                significant disabilities to, community-based living.'';
            (4) by redesignating paragraphs (24) through (28), (29) 
        through (34), and (35) through (39), as paragraphs (25) through 
        (29), (31) through (36), and (38) through (42), respectively;
            (5) by inserting after paragraph (23) the following:
            ``(24) Literacy.--The term `literacy' has the meaning given 
        the term in section 203 of the Adult Education and Family 
        Literacy Act (20 U.S.C. 9202).'';
            (6) by inserting after paragraph (29), as redesignated by 
        paragraph (4), the following:
            ``(30) Post-employment service.--The term `post-employment' 
        service means a service identified in section 103(a) that is--
                    ``(A) provided subsequent to the achievement of an 
                employment outcome; and
                    ``(B) necessary for an individual to maintain, 
                regain, or advance in employment, consistent with the 
                individual's strengths, resources, priorities, 
                concerns, abilities, capabilities, interests, and 
                informed choice.'';
            (7) by inserting after paragraph (36), as redesignated by 
        paragraph (4), the following:
            ``(37) Student with a disability.--
                    ``(A) In general.--The term `student with a 
                disability' means an individual with a disability who 
                attends an elementary school or secondary school and 
                who--
                            ``(i) is not younger than 14 years of age;
                            ``(ii) is not older than 21 years of age;
                            ``(iii) has been determined to be eligible 
                        under section 102(a) for assistance under title 
                        I; and
                            ``(iv)(I) is eligible for, and receiving, 
                        special education and related services under 
                        part B of the Individuals with Disabilities 
                        Education Act; or
                            ``(II) is an individual with a disability, 
                        for purposes of section 504.
                    ``(B) Students with disabilities.--The term 
                `students with disabilities' means more than 1 student 
                with a disability.''; and
            (8) in paragraph (38)(A)(ii), as redesignated by paragraph 
        (4), by striking ``paragraph (36)(C)'' and inserting 
        ``paragraph (39)(C)''.

SEC. 461D. ADMINISTRATION OF THE ACT.

    Section 12(a)(1) of the Rehabilitation Act of 1973 (29 U.S.C. 
709(a)(1)) is amended--
            (1) by inserting ``(A)'' after ``(1)'';
            (2) by striking the semicolon and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(B) provide technical assistance to the designated State 
        units on developing successful partnerships with employers;''.

SEC. 461E. CARRYOVER.

    Section 19 of the Rehabilitation Act of 1973 (29 U.S.C. 716) is 
amended--
            (1) in subsection (a)(1)--
                    (A) by striking ``, section 509 (except as provided 
                in section 509(b))'';
                    (B) by striking ``or (C)''; and
                    (C) by striking ``752(b)'' and inserting 
                ``753(b)''; and
            (2) by adding at the end the following:
    ``(c) Protection and Advocacy of Individual Rights.--
            ``(1) Appropriated amounts.--Notwithstanding any other 
        provision of law, any funds appropriated for a fiscal year to 
        carry out a grant program under section 509 (except as provided 
        in section 509(b)), including any funds reallotted under such 
        grant program, that are not obligated and expended by 
        recipients prior to the beginning of the succeeding fiscal year 
        shall remain available for obligation and expenditure by such 
        recipients during such succeeding fiscal year.
            ``(2) Program income.--Notwithstanding any other provision 
        of law, any amounts of program income received by recipients 
        under a grant program under section 509 in a fiscal year that 
        are not obligated and expended by recipients prior to the 
        beginning of the succeeding fiscal year, shall remain available 
        until expended.''.

            Subchapter A--Vocational Rehabilitation Services

SEC. 462. DECLARATION OF POLICY; AUTHORIZATION OF APPROPRIATIONS.

    Section 100(b)(1) of the Rehabilitation Act of 1973 (29 U.S.C. 
720(b)(1)) is amended by striking ``fiscal years 1999 through 2003'' 
and inserting ``fiscal years 2006 through 2011''.

SEC. 462A. STATE PLANS.

    Section 101(a) of the Rehabilitation Act of 1973 (29 U.S.C. 721(a)) 
is amended--
            (1) in paragraph (6)(B), by striking ``to employ and 
        advance in employment'' and inserting ``to recruit, employ, and 
        advance in employment'';
            (2) in paragraph (7)(A)(v), by striking subclause (I) and 
        inserting the following:
                                    ``(I) a system for the continuing 
                                education of rehabilitation 
                                professionals and paraprofessionals 
                                within the designated State unit, 
                                particularly with respect to 
                                rehabilitation technology, including 
                                training implemented in coordination 
                                with State programs carried out under 
                                section 4 of the Assistive Technology 
                                Act of 1998 (29 U.S.C. 3003); and'';
            (3) in paragraph (8)(A), by adding at the end the 
        following:
                            ``(iii) Services identified in 
                        individualized work plan.--For purposes of 
                        clause (i), for an individual who receives 
                        assistance under the Ticket to Work and Self-
                        Sufficiency Program established under section 
                        1148 of the Social Security Act (42 U.S.C. 
                        1320b-19), comparable benefits and services 
                        available under such program only include those 
                        benefits and services identified in the 
                        individual's individualized work plan developed 
                        by an employment network pursuant to such 
                        section.'';
            (4) in paragraph (10)--
                    (A) in subparagraph (B), by striking ``annual 
                reporting on the eligible individuals receiving the 
                services, on those specific data elements described in 
                section 136(d)(2) of the Workforce Investment Act of 
                1998'' and inserting ``annual reporting of information 
                on eligible individuals receiving services that is 
                needed to assess performance on the core indicators of 
                performance described in section 136(b)(2)(A)(i) of the 
                Workforce Investment Act of 1998 (29 U.S.C. 
                2871(b)(2)(A)(i))'';
                    (B) in subparagraph (C), by striking clauses (iii) 
                and (iv) and inserting the following:
                            ``(iii) the number of applicants and 
                        eligible recipients, including the number of 
                        individuals with significant disabilities, who 
                        exited the program carried out under this title 
                        and the number of such individuals who achieved 
                        employment outcomes after receiving vocational 
                        rehabilitation services; and
                            ``(iv) the number of individuals who 
                        received vocational rehabilitation services who 
                        entered and retained employment and the 
                        increases in earnings of such individuals, 
                        consistent with State reporting 
                        responsibilities pursuant to section 
                        136(b)(2)(A)(i) of the Workforce Investment Act 
                        of 1998 (29 U.S.C. 2871(b)(2)(A)(i)).''; and
                    (C) in subparagraph (E)(ii), by striking ``in 
                meeting'' and all that follows through the period and 
                inserting ``in meeting the standards and indicators 
                established pursuant to section 106.'';
            (5) in paragraph (11)--
                    (A) by striking subparagraph (C) and inserting the 
                following:
                    ``(C) Interagency cooperation with other 
                agencies.--The State plan shall include descriptions of 
                interagency cooperation with, and utilization of the 
                services and facilities of, Federal, State, and local 
                agencies and programs, including the State programs 
                carried out under section 4 of the Assistive Technology 
                Act of 1998 (29 U.S.C. 3003), programs carried out by 
                the Under Secretary for Rural Development of the 
                Department of Agriculture, and State use contracting 
                programs, to the extent that such agencies and programs 
                are not carrying out activities through the statewide 
                workforce investment system.'';
                    (B) by striking subparagraph (D)(ii) and inserting 
                the following:
                            ``(ii) transition planning by personnel of 
                        the designated State agency and the State 
                        educational agency that will facilitate the 
                        development and completion of the 
                        individualized education programs under section 
                        614(d) of the Individuals with Disabilities 
                        Education Act and, as appropriate, the 
                        development and completion of the 
                        individualized plan for employment, in order to 
                        achieve post-school employment outcomes of 
                        students with disabilities;''; and
                    (C) by adding at the end the following:
                    ``(G) Coordination with ticket to work and self-
                sufficiency program.--The State plan shall provide that 
                the designated State unit will coordinate activities 
                with any other State agency that administers a Ticket 
                to Work and Self-Sufficiency Program established under 
                section 1148 of the Social Security Act (42 U.S.C. 
                1320b-19).''; and
            (6) in paragraph (20)--
                    (A) by redesignating subparagraph (B) as 
                subparagraph (D);
                    (B) by inserting after subparagraph (A) the 
                following:
                    ``(B) Information on assistance for beneficiaries 
                of assistance under title ii or xvi of the social 
                security act.--The State plan shall include an 
                assurance that the designated State agency will make 
                available to individuals entitled to benefits under 
                title II or XVI of the Social Security Act (42 U.S.C. 
                401 et seq., 1381 et seq.) on the basis of a disability 
                or blindness, information on the availability of--
                            ``(i) medical assistance under the State 
                        medicaid program under title XIX of the Social 
                        Security Act (42 U.S.C. 1396 et seq.);
                            ``(ii) benefits under the medicare program 
                        under title XVIII of the Social Security Act 
                        (42 U.S.C. 1395 et seq.);
                            ``(iii) assistance through benefits 
                        planning and assistance programs under section 
                        1149 of the Social Security Act (42 U.S.C. 
                        1320b-20) and protection and advocacy programs 
                        under section 1150 of the Social Security Act 
                        (42 U.S.C. 1320b-21); and
                            ``(iv) medical assistance under other 
                        federally funded programs.
                    ``(C) Information for individuals under the ticket 
                to work program.--The State plan shall include an 
                assurance that the designated State agency will make 
                available to individuals entitled to benefits under 
                title II or XVI of the Social Security Act (42 U.S.C. 
                401 et seq., 1381 et seq.) on the basis of a disability 
                or blindness and eligible for assistance under the 
                Ticket to Work and Self-Sufficiency Program established 
                under section 1148 of the Social Security Act (42 
                U.S.C. 1320b-19), general information regarding the 
                Ticket to Work and Self-Sufficiency Program and 
                specific information on how to contact the program 
                manager of the Ticket to Work and Self-Sufficiency 
                Program to obtain information on approved employment 
                networks.''; and
                    (C) in subparagraph (D)(ii), as redesignated by 
                subparagraph (A)--
                            (i) in subclause (II), by inserting ``, to 
                        the maximum extent possible,'' after ``point of 
                        contact''; and
                            (ii) in subclause (III), by striking ``or 
                        regain'' and inserting ``regain, or advance 
                        in''.

SEC. 462B. ELIGIBILITY AND INDIVIDUALIZED PLAN FOR EMPLOYMENT.

    Section 102 of the Rehabilitation Act of 1973 (29 U.S.C. 722) is 
amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A), by striking the 
                        semicolon at the end and inserting ``, 
                        including a listing of all the community 
                        resources (including resources from consumer 
                        organizations), to the maximum extent possible, 
                        to assist in the development of such 
                        individual's individualized plan for employment 
                        to enable the individual to make informed and 
                        effective choices in developing the 
                        individualized plan for employment;''; and
                            (ii) in subparagraph (D)--
                                    (I) in clause (i), by striking 
                                ``and'' after the semicolon;
                                    (II) in clause (ii), by striking 
                                the period at the end and inserting a 
                                semicolon; and
                                    (III) by adding at the end the 
                                following:
                    ``(iii) for individuals entitled to benefits under 
                title II or XVI of the Social Security Act (42 U.S.C. 
                401 et seq., 1381 et seq.) on the basis of a disability 
                or blindness, information on the availability of--
                            ``(I) medical assistance under the State 
                        medicaid program under title XIX of the Social 
                        Security Act (42 U.S.C. 1396 et seq.);
                            ``(II) benefits under the medicare program 
                        under title XVIII of the Social Security Act 
                        (42 U.S.C. 1395 et seq.);
                            ``(III) assistance through benefits 
                        planning and assistance programs under section 
                        1149 of the Social Security Act (42 U.S.C. 
                        1320b-20) and protection and advocacy programs 
                        under section 1150 of the Social Security Act 
                        (42 U.S.C. 1320b-21); and
                            ``(IV) medical assistance under other 
                        federally funded programs; and
                    ``(iv) for individuals entitled to benefits under 
                title II or XVI of the Social Security Act (42 U.S.C. 
                401 et seq., 1381 et seq.) on the basis of a disability 
                or blindness and eligible for assistance under the 
                Ticket to Work and Self-Sufficiency Program established 
                under section 1148 of the Social Security Act (42 
                U.S.C. 1320b-19), information--
                            ``(I) on the options under the Ticket to 
                        Work and Self-Sufficiency Program; and
                            ``(II) on how to contact the program 
                        manager of the Ticket to Work and Self-
                        Sufficiency Program who has contact information 
                        on approved employment networks, the benefits 
                        planning and assistance programs in the area, 
                        and the protection and advocacy programs in the 
                        area.'';
                    (B) in paragraph (2)(E)--
                            (i) in clause (i)(II), by striking ``and'' 
                        after the semicolon;
                            (ii) in clause (ii), by striking the period 
                        at the end and inserting ``; and''; and
                            (iii) by adding at the end the following:
                            ``(iii) amended, as necessary, to include 
                        the post-employment services and service 
                        providers that are necessary for the individual 
                        to maintain, regain, or advance in employment, 
                        consistent with the individual's strengths, 
                        resources, priorities, concerns, abilities, 
                        capabilities, interests, and informed 
                        choice.''; and
                    (C) in paragraph (3)--
                            (i) in subparagraph (B)(i)(I), by striking 
                        ``and personal assistance services'' and 
                        inserting ``mentoring services, and personal 
                        assistance services'';
                            (ii) in subparagraph (F)(ii), by striking 
                        ``and'' after the semicolon;
                            (iii) in subparagraph (G), by striking the 
                        period at the end and inserting a semicolon; 
                        and
                            (iv) by adding at the end the following:
                    ``(H) for a student with a disability, the 
                description--
                            ``(i) in paragraph (3)(A), may be a 
                        description of the student's projected post-
                        school employment outcome; and
                            ``(ii) in paragraph (3)(B), shall include 
                        the specific transition services (including, as 
                        appropriate, work experience and mentoring 
                        activities) needed to achieve the student's 
                        employment outcome or projected employment 
                        outcome; and
                    ``(I) for an individual who is receiving assistance 
                under the Ticket to Work and Self-Sufficiency Program 
                established under section 1148 of the Social Security 
                Act (42 U.S.C. 1320b-19), a list of services such 
                individual receives from an employment network other 
                than the designated State unit.''; and
            (2) in subsection (c)(7), by inserting ``that take into 
        consideration the informed choice of the individual,'' after 
        ``plan development,''.

SEC. 462C. VOCATIONAL REHABILITATION SERVICES.

    Section 103(a) of the Rehabilitation Act of 1973 (29 U.S.C. 723(a)) 
is amended--
            (1) in paragraph (5), by inserting ``literacy services,'' 
        after ``vocational adjustment services,'';
            (2) in paragraph (17), by striking ``and'' after the 
        semicolon;
            (3) in paragraph (18), by striking the period at the end 
        and inserting ``; and''; and
            (4) by adding at the end the following:
            ``(19) mentoring services.''.

SEC. 462D. STATE REHABILITATION COUNCIL.

    Section 105(b) of the Rehabilitation Act of 1973 (29 U.S.C. 725(b)) 
is amended--
            (1) in paragraph (1)(A), by striking clause (ix) and 
        inserting the following:
                            ``(ix) in a State in which 1 or more 
                        projects provide services under section 121, 
                        not less than 1 representative of the directors 
                        of the projects;''; and
            (2) by striking paragraph (5) and inserting the following:
            ``(5) Chairperson.--The Council shall select a chairperson 
        from among the voting membership of the Council.''.

SEC. 462E. EVALUATION STANDARDS AND PERFORMANCE INDICATORS.

    Section 106(b)(2)(B)(i) of the Rehabilitation Act of 1973 (29 
U.S.C. 726(b)(2)(B)(i)) is amended by striking ``, if necessary'' and 
all that follows through the semicolon and inserting ``if the State has 
not improved its performance to acceptable levels, as determined by the 
Commissioner, direct the State to make further revisions to the plan to 
improve performance, which may include allocating a higher proportion 
of the State's resources for services to individuals with disabilities 
if the State's spending on such services is low in comparison to 
spending on such services in comparable agencies in other States;''.

SEC. 462F. STATE ALLOTMENTS.

    Section 110 of the Rehabilitation Act of 1973 (29 U.S.C. 730) is 
amended--
            (1) by striking subsection (b) and inserting the following:
    ``(b) Reallotment.--
            ``(1) Determination.--Not later than 45 days prior to the 
        end of the fiscal year, the Commissioner shall determine, after 
        reasonable opportunity for the submission to the Commissioner 
        of comments by the State agency administering or supervising 
        the program established under this title, that any payment of 
        an allotment to a State under section 111(a) for any fiscal 
        year will not be utilized by such State in carrying out the 
        purposes of this title.
            ``(2) Formula.--
                    ``(A) In general.--As soon as practicable but not 
                later than the end of the fiscal year, the Commissioner 
                shall reallot the amount available under paragraph (1) 
                to other States, consistent with subparagraphs (B) and 
                (C), for carrying out the purposes of this title to the 
                extent the Commissioner determines such other State 
                will be able to use such additional amount during that 
                fiscal year or the subsequent fiscal year for carrying 
                out such purposes.
                    ``(B) Formula.--
                            ``(i) Eligible states.--The Commissioner 
                        shall reallot the amount available under 
                        paragraph (1) for a fiscal year to each State 
                        whose allotment under subsection (a) for such 
                        fiscal year is less than such State's allotment 
                        under subsection (a) for the immediately 
                        preceding fiscal year increased by the 
                        percentage change in the funds available for 
                        subsection (a) from the immediately preceding 
                        fiscal year.
                            ``(ii) Amount.--
                                    ``(I) In general.--A State that is 
                                eligible to receive a reallotment under 
                                clause (i) shall receive an amount for 
                                a fiscal year from the amount available 
                                for reallotment under paragraph (1) 
                                that is equal to the difference 
                                between--
                                            ``(aa) the amount such 
                                        State received for such fiscal 
                                        year; and
                                            ``(bb) the amount such 
                                        State was allotted under 
                                        subsection (a) for the 
                                        immediately preceding fiscal 
                                        year adjusted by the percentage 
                                        change in the funds available 
                                        for subsection (a) from the 
                                        immediately preceding fiscal 
                                        year.
                                    ``(II) Insufficient funds.--If the 
                                amount available for reallotment under 
                                paragraph (1) is insufficient to 
                                provide each State eligible to receive 
                                a reallotment with the amount described 
                                in subclause (I), the amount reallotted 
                                to each eligible State shall be 
                                determined by the Commissioner.
                    ``(C) Remaining funds.--If there are funds 
                remaining after each State eligible to receive a 
                reallotment under subparagraph (B)(i) receives the 
                amount described in subparagraph (B)(ii), the 
                Commissioner shall reallot the remaining funds among 
                the States requesting a reallotment.
            ``(3) Non-federal share.--The Commissioner shall reallot an 
        amount to a State under this subsection only if the State will 
        be able to make sufficient payments from non-Federal sources to 
        pay for the non-Federal share of the cost of vocational 
        rehabilitation services under the State plan for the fiscal 
        year for which the amount was appropriated.
            ``(4) Increase in allotment.--For the purposes of this 
        part, any amount made available to a State for any fiscal year 
        pursuant to this subsection shall be regarded as an increase of 
        such State's allotment (as determined under the preceding 
        provisions of this section) for such year.''; and
            (2) by striking subsection (c)(2) and inserting the 
        following:
    ``(2)(A) In this paragraph:
            ``(i) The term `appropriated amount' means the amount 
        appropriated under section 100(b)(1) for allotment under this 
        section.
            ``(ii) The term `covered year' means a fiscal year--
                    ``(I) that begins after September 30, 2004; and
                    ``(II) for which the appropriated amount exceeds 
                the total of--
                            ``(aa) the appropriated amount for the 
                        preceding fiscal year; and
                            ``(bb) 0.075 percent of the appropriated 
                        amount for the preceding fiscal year.
    ``(B) For each covered year, the sum referred to in paragraph (1) 
shall be, as determined by the Secretary--
            ``(i) not less than the total of the sum reserved under 
        this subsection for the preceding fiscal year and 0.1 percent 
        of the appropriated amount for the covered year; and
            ``(ii) not more than 1.5 percent of the appropriated amount 
        for the covered year.''.

SEC. 462G. CLIENT ASSISTANCE PROGRAM.

    Section 112 of the Rehabilitation Act of 1973 (29 U.S.C. 732) is 
amended--
            (1) in subsection (a), by striking ``States'' and inserting 
        ``agencies designated under subsection (c)'';
            (2) in subsection (e)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A), by striking ``The 
                        Secretary'' and all that follows through the 
                        period and inserting the following: ``After 
                        reserving funds under subparagraphs (E) and 
                        (F), the Secretary shall allot the remainder of 
                        the sums appropriated for each fiscal year 
                        under this section among the agencies 
                        designated under subsection (c) within the 
                        States on the basis of relative population of 
                        each State, except that no such agency shall 
                        receive less than $50,000.'';
                            (ii) in subparagraph (B), by inserting 
                        ``the designated agencies located in'' after 
                        ``each to'';
                            (iii) in subparagraph (D)(i)--
                                    (I) by inserting ``the designated 
                                agencies located in'' after ``$100,000 
                                for''; and
                                    (II) by inserting ``the designated 
                                agencies located in'' after ``$45,000 
                                for''; and
                            (iv) by adding at the end the following:
    ``(E)(i) Beginning on October 1, 2004, for any fiscal year for 
which the amount appropriated to carry out this section equals or 
exceeds $13,000,000, the Secretary shall reserve funds appropriated 
under this section to make grants to the protection and advocacy system 
serving the American Indian Consortium to provide client assistance 
services in accordance with this section. The amount of such grants 
shall be the same amount as provided to territories under subparagraph 
(B), as increased under clauses (i) and (ii) of subparagraph (D).
    ``(ii) In this subparagraph:
            ``(I) The term `American Indian Consortium' has the meaning 
        given the term in section 102 of the Developmental Disabilities 
        Assistance and Bill of Rights Act of 2000 (42 U.S.C. 15002).
            ``(II) The term `protection and advocacy system' means a 
        protection and advocacy system established under subtitle C of 
        title I of the Developmental Disabilities Assistance and Bill 
        of Rights Act of 2000 (42 U.S.C. 15041 et seq.).
    ``(F) For any fiscal year for which the amount appropriated to 
carry out this section equals or exceeds $14,000,000, the Secretary 
shall reserve not less than 1.8 percent and not more than 2.2 percent 
of such amount to provide training and technical assistance to the 
programs established under this section. Such training and technical 
assistance shall be coordinated with activities provided under section 
509(c)(1)(A).'';
                    (B) in paragraph (2)--
                            (i) by striking ``State'' each place such 
                        term appears and inserting ``designated 
                        agency''; and
                            (ii) by striking ``States'' each place such 
                        term appears and inserting ``designated 
                        agencies''; and
                    (C) in paragraph (3), by striking ``Except as 
                specifically prohibited by or as otherwise provided in 
                State law, the Secretary shall pay'' and inserting 
                ``The Secretary shall pay directly'';
            (3) in subsection (f), by striking ``State'' and inserting 
        ``agency designated under subsection (c)''; and
            (4) in subsection (h), by striking ``fiscal years 1999 
        through 2003'' and inserting ``fiscal years 2006 through 
        2011''.

SEC. 462H. INCENTIVE GRANTS.

    Part B of title I of the Rehabilitation Act of 1973 (29 U.S.C. 730 
et seq.) is amended by adding at the end the following:

``SEC. 113. INCENTIVE GRANTS.

    ``(a) Authority.--The Commissioner is authorized to make incentive 
grants to States that, based on the criteria established under 
subsection (b)(1), demonstrate--
            ``(1) a high level of performance; or
            ``(2) a significantly improved level of performance as 
        compared to the previous reporting period or periods.
    ``(b) Criteria.--
            ``(1) Establishment.--Not later than 180 days after the 
        date of enactment of this section, the Commissioner shall 
        establish, and publish in the Federal Register, criteria for 
        making grant awards under subsection (a).
            ``(2) Development and evaluation standards.--The criteria 
        under paragraph (1) shall--
                    ``(A) be developed with input from State vocational 
                rehabilitation agencies and other vocational 
                rehabilitation stakeholders, including vocational 
                rehabilitation consumers and consumer organizations; 
                and
                    ``(B) be based upon the evaluation standards and 
                performance indicators established under section 106 
                and other performance related measures that the 
                Commissioner determines to be appropriate.
    ``(c) Use of Funds.--A State that receives a grant under subsection 
(a) shall use the grant funds for any approved activities in the 
State's State plan submitted under section 101.
    ``(d) No Non-Federal Share Requirement.--The provisions of sections 
101(a)(3) and 111(a)(2) shall not apply to this section.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for each of fiscal years 2006 through 2011.''.

SEC. 462I. VOCATIONAL REHABILITATION SERVICES GRANTS.

    Section 121 of the Rehabilitation Act of 1973 (29 U.S.C. 741) is 
amended--
            (1) in subsection (a), in the first sentence, by inserting 
        ``, consistent with such individuals' strengths, resources, 
        priorities, concerns, abilities, capabilities, interests, and 
        informed choice, so that such individuals may prepare for, and 
        engage in, gainful employment'' before the period at the end; 
        and
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (B), by striking 
                        ``and'' after the semicolon;
                            (ii) in subparagraph (C), by striking the 
                        period at the end and inserting ``; and''; and
                            (iii) by adding at the end the following:
            ``(D) contains assurances that--
                    ``(i) all decisions affecting eligibility for 
                vocational rehabilitation services, the nature and 
                scope of available services, and the provision of such 
                services, will be made by a representative of the 
                tribal vocational rehabilitation program; and
                    ``(ii) such decisions will not be delegated to 
                another agency or individual.'';
                    (B) in paragraph (3), by striking the first 
                sentence and inserting the following: ``An application 
                approved under this part that complies with the program 
                requirements set forth in the regulations promulgated 
                to carry out this part shall be effective for 5 years 
                and shall be renewed for additional 5-year periods if 
                the Commissioner determines that the grantee 
                demonstrated acceptable past performance and the 
                grantee submits a plan, including a proposed budget, to 
                the Commissioner that the Commissioner approves that 
                identifies future performance criteria, goals, and 
                objectives.''; and
                    (C) by striking paragraph (4) and inserting the 
                following:
    ``(4) In allocating funds under this part, the Secretary shall give 
priority to paying the continuation costs of existing projects and may 
provide for increases in funding for such projects as determined 
necessary.''.

SEC. 462J. GAO STUDIES.

    (a) Study on Title I and Ticket to Work.--
            (1) In general.--The Comptroller General of the United 
        States shall conduct a study on the interaction of title I of 
        the Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.) with the 
        Ticket to Work and Self-Sufficiency Program established under 
        section 1148 of the Social Security Act (42 U.S.C. 1320b-19), 
        including the impact of the interaction on beneficiaries, 
        community rehabilitation programs, and State vocational 
        rehabilitation agencies.
            (2) Conduct of study.--In conducting the study under 
        paragraph (1), the Comptroller General of the United States 
        shall consult with all participants in the Ticket to Work and 
        Self-Sufficiency Program, including the Social Security 
        Administration, the Rehabilitation Services Administration, 
        ticketholders, State agencies, community rehabilitation 
        programs (including employment networks and nonemployment 
        networks), protection and advocacy agencies, MAXIMUS, and 
        organizations representing the interests of ticketholders.
            (3) Report to congress.--Not later than 18 months after the 
        date of enactment of this Act, the Comptroller General of the 
        United States shall submit the study conducted pursuant to this 
        subsection to the appropriate committees of Congress.
    (b) Study on the Allotment Formula.--
            (1) In general.--The Comptroller General of the United 
        States shall conduct a study on the relationship between the 
        State allotment formula under section 110 of the Rehabilitation 
        Act of 1973 (29 U.S.C. 730) and the ability of States to 
        provide vocational rehabilitation services in accordance with 
        the State's State plan under section 101 of such Act.
            (2) Conduct of study.--In conducting the study under 
        paragraph (1), the Comptroller General of the United States 
        shall consult with appropriate entities.
            (3) Report to congress.--Not later than 12 months after the 
        date of enactment of this Act, the Comptroller General of the 
        United States shall submit the study conducted pursuant to this 
        subsection to the appropriate committees of Congress.

                  Subchapter B--Research and Training

SEC. 463. AUTHORIZATION OF APPROPRIATIONS.

    Section 201(a) of the Rehabilitation Act of 1973 (29 U.S.C. 761(a)) 
is amended--
            (1) in paragraph (1), by striking ``fiscal years 1999 
        through 2003'' and inserting ``fiscal years 2006 through 
        2011''; and
            (2) in paragraph (2), by striking ``fiscal years 1999 
        through 2003'' and inserting ``fiscal years 2006 through 
        2011''.

SEC. 463A. NATIONAL INSTITUTE ON DISABILITY AND REHABILITATION 
              RESEARCH.

    Section 202(f)(1) of the Rehabilitation Act of 1973 (29 U.S.C. 
762(f)(1)) is amended by striking ``Federal employees'' and inserting 
``Department of Education employees''.

SEC. 464B. RESEARCH AND OTHER COVERED ACTIVITIES.

    Section 204(c)(2) of the Rehabilitation Act of 1973 (29 U.S.C. 
764(c)(2)) is amended by striking ``$500,000'' and inserting 
``$750,000''.

SEC. 464C. REHABILITATION RESEARCH ADVISORY COUNCIL.

    Section 205(c) of the Rehabilitation Act of 1973 (29 U.S.C. 765(c)) 
is amended by adding at the end the following: ``The Council also shall 
include a representative from the business community who has experience 
with the vocational rehabilitation system and hiring individuals with 
disabilities.''.

    Subchapter C--Professional Development and Special Projects and 
                             Demonstrations

SEC. 464. TRAINING.

    Section 302 of the Rehabilitation Act of 1973 (29 U.S.C. 772) is 
amended--
            (1) in subsection (b)(1)(B)(i), by striking ``or 
        prosthetics and orthotics'' and inserting ``prosthetics and 
        orthotics, rehabilitation for the blind, or orientation and 
        mobility instruction''; and
            (2) in subsection (i), by striking ``fiscal years 1999 
        through 2003'' and inserting ``fiscal years 2006 through 
        2011''.

SEC. 464A. DEMONSTRATION AND TRAINING PROGRAMS.

    Section 303 of the Rehabilitation Act of 1973 (29 U.S.C. 773) is 
amended--
            (1) in subsection (b)(5)(A)(i), by striking ``special 
        projects'' and inserting ``not less than 2 special projects'';
            (2) by redesignating subsections (c), (d), and (e) as 
        subsections (e), (f), and (h), respectively;
            (3) by inserting after subsection (b) the following:
    ``(c) Demonstration Projects for Employment of Students With 
Intellectual Disabilities or Mental Illness.--
            ``(1) Purpose.--The purpose of this subsection is to 
        support model demonstration projects to provide supported and 
        competitive employment experiences for students with 
        intellectual disabilities or students with mental illness, and 
        training for personnel that work with students described in 
        this paragraph, to enable the students to gain employment 
        skills and experience that will promote effective transitions 
        from school to employment and adult living.
            ``(2) Grants authorized.--
                    ``(A) Competitive grants authorized.--The Secretary 
                may award grants, contracts, and cooperative 
                agreements, on a competitive basis, to eligible 
                organizations described in paragraph (3), to enable the 
                organizations to carry out demonstration projects 
                described in paragraph (1).
                    ``(B) Duration.--The Secretary shall award grants 
                under this subsection for periods of 3 to 5 years.
            ``(3) Eligible organizations.--To be eligible to receive a 
        grant, contract, or cooperative agreement under this 
        subsection, an organization shall--
                    ``(A) have expertise in providing employment and 
                support services for individuals with intellectual 
                disabilities or individuals with mental illness;
                    ``(B) have a proven track record in successfully 
                running supported employment programs;
                    ``(C) provide employment services that are 
                exclusively integrated community-based supported 
                employment services;
                    ``(D) have expertise in creating natural supports 
                for employment;
                    ``(E) have expertise in providing computer training 
                for the targeted population for the project involved; 
                and
                    ``(F) have experience operating mentoring programs 
                for the target population in middle and high schools 
                for at least a decade in diverse communities throughout 
                the Nation.
            ``(4) Applications.--Each organization desiring to receive 
        a grant, contract, or cooperative agreement under this 
        subsection shall submit an application to the Secretary at such 
        time, in such manner, and including such information as the 
        Secretary may require. Each application shall include--
                    ``(A) a description of how the organization plans 
                to carry out the activities authorized in this 
                subsection through a demonstration project;
                    ``(B) a description of how the organization will 
                evaluate the project;
                    ``(C) a description of how the organization will 
                disseminate information about the activities and the 
                impact of the activities on the lives of students 
                served by the project; and
                    ``(D) a description of how the organization will 
                coordinate activities with any other relevant service 
                providers in the locality where the organization is 
                based, including federally supported independent living 
                centers.
            ``(5) Authorized activities.--An organization that receives 
        a grant under this subsection shall use the funds made 
        available through the grant to carry out 1 or more of the 
        following activities for individuals, ages 14 through 21, who 
        are students with intellectual disabilities or students with 
        mental illness:
                    ``(A) Providing supported and competitive 
                employment experiences.--The development of innovative 
                and effective supported and competitive employment 
                experiences after school, on weekends, and in the 
                summer, utilizing natural supports that lead to 
                competitive high-paying jobs.
                    ``(B) Providing training to school and transition 
                personnel.--The development and deployment of experts 
                to work with transition programs (including personnel 
                working with students on transition) so that personnel 
                from the programs develop skills needed to train 
                students with intellectual disabilities or students 
                with mental illness to be successful in competitive 
                employment in a range of settings, including office 
                settings. The training shall include training for the 
                personnel in providing instruction to students in 
                computer skills, office skills, interview etiquette, 
                and appropriate social behavior required for successful 
                long-term employment in professional environments.
            ``(6) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this subsection 
        $5,000,000 for fiscal year 2006 and such sums as may be 
        necessary for fiscal years 2007 through 2010.
    ``(d) Demonstration Project for Employment of Individuals Who Are 
Deaf and Low Functioning.--
            ``(1) Purpose.--It is the purpose of this subsection to 
        support a model demonstration project to provide training and 
        support services for individuals who are deaf and low 
        functioning to enable them to gain employment skills that will 
        allow them to become employed and economically self-sufficient.
            ``(2) Definition.--
                    ``(A) In general.--In this subsection, the term 
                `individual who is deaf and low functioning' means an 
                individual who has been deaf from birth or very early 
                childhood, reads at or below the second grade level, 
                has little or no intelligible speech, and lacks a high 
                school diploma or GED.
                    ``(B) Secondary disabilities.--Such term may 
                include an individual with a secondary disability.
            ``(3) Grants authorized.--
                    ``(A) Competitive grants authorized.--The Secretary 
                may award grants to State agencies, other public 
                agencies or organizations, or not-for-profit 
                organizations with expertise in providing employment 
                training and support services for individuals who are 
                deaf and low functioning to support model demonstration 
                projects.
                    ``(B) Duration.--Grants under this subsection shall 
                be awarded for a period not to exceed 5 years.
            ``(4) Authorized activities.--
                    ``(A) Developing a comprehensive training 
                program.--Each grant recipient shall develop an 
                innovative, comprehensive program of instruction for 
                individuals who are deaf and low functioning that can 
                be implemented at multiple training locations through 
                such means as distance learning and use of advanced 
                technology, as appropriate. Such training program shall 
                be developed to maximize the potential for replication 
                of the program by other training providers.
                    ``(B) Implementation.--Each grant recipient shall 
                implement the comprehensive training program developed 
                in subparagraph (A) as soon as feasible. Such training 
                shall provide instruction on the job and the social 
                skills necessary for successful long-term employment of 
                individuals who are deaf and low functioning.
                    ``(C) Establishing a post-training program of 
                employment and support services.--Each grant recipient 
                shall implement employment and support services to 
                assist individuals who complete the training program 
                under subparagraph (A) in securing employment and 
                transitioning to the workplace for a period of not less 
                than 90 days subsequent to placement.
            ``(5) Applications.--Each entity desiring to receive a 
        grant under this subsection shall submit an application to the 
        Secretary at such time, in such manner, and accompanied by such 
        information as the Secretary may require including--
                    ``(A) a description of how the applicant plans to 
                address the activities authorized under this 
                subsection;
                    ``(B) a description of the evaluation plan to be 
                used in the project;
                    ``(C) a description of how the applicant will 
                disseminate information about the training program 
                developed and the results of the model demonstration 
                project; and
                    ``(D) a description of how the project will 
                coordinate with any other relevant service providers or 
                entities providing employment training and supports for 
                individuals who are deaf and low functioning.
            ``(6) Mandated evaluation and dissemination activities.--
                    ``(A) Annual report.--Not later than 2 years after 
                the date on which a grant under this subsection is 
                awarded and annually thereafter, each grant recipient 
                shall submit to the Commissioner a report containing--
                            ``(i) the number of individuals who are 
                        participating in the demonstration project 
                        funded under this subsection;
                            ``(ii) the employment and other skills 
                        being taught in the project;
                            ``(iii) the number of individuals 
                        participating in the project that are placed in 
                        employment;
                            ``(iv) the job sites in which those 
                        individuals are placed and the type of jobs 
                        they are placed in; and
                            ``(v) the number of individuals who have 
                        dropped out of the project and the reasons for 
                        their terminating participation in the project.
                    ``(B) Evaluation of the project.--Each grant 
                recipient shall implement the evaluation plan approved 
                in its application for determining the results of the 
                project within the timeframe specified in, and 
                following the provisions of, its approved application.
                    ``(C) Participant evaluation process; final 
                evaluation.--In the final year of the project, the 
                grant recipient will produce a final evaluation report 
                of the results of the model demonstration project 
                containing--
                            ``(i) the number of individuals who 
                        participated in the training program;
                            ``(ii) a description of the job sites in 
                        which those individuals were placed;
                            ``(iii) the number of individuals placed in 
                        employment and the type of employment in which 
                        they were placed;
                            ``(iv) the number of individuals who did 
                        not complete their training and the reasons 
                        those individuals dropped out of the project;
                            ``(v) the number of individuals who 
                        participated in the training project and who 
                        remain employed as of 2 months prior to the 
                        date on which the final report is submitted to 
                        the Secretary;
                            ``(vi) a written analysis of the model 
                        project, including both the strengths and 
                        weaknesses of the project, to assist other 
                        entities in replicating the training program 
                        developed through this model demonstration 
                        project; and
                            ``(vii) such other information as the 
                        Secretary determines appropriate.
                    ``(D) Dissemination.--Not later than 5 years after 
                the date on which an award is granted under this 
                subsection, the evaluations and results of activities 
                funded by such grant shall be disseminated to State 
                vocational rehabilitation agencies, school systems 
                providing instruction to students who are deaf, 
                supported employment providers, postsecondary 
                vocational training programs, employers, the Social 
                Security Administration, and other interested parties.
            ``(7) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this subsection, 
        $5,000,000 for fiscal year 2006 and such sums as may be 
        necessary for each of fiscal years 2007 through 2010.'';
            (4) by inserting after subsection (f), as redesignated by 
        paragraph (2), the following:
    ``(g) Access to Telework.--
            ``(1) Definition of telework.--In this subsection, the term 
        `telework' means to work from home and other telework sites 
        with the assistance of a computer and with reasonable 
        accommodations, including the necessary equipment to facilitate 
        successful work from home and other telework sites.
            ``(2) Authorization of program.--The Commissioner is 
        authorized to make grants to States and governing bodies of 
        American Indian tribes located on Federal and State 
        reservations (and consortia of such governing bodies) to pay 
        for the Federal share of the cost of establishing or expanding 
        a telework program.
            ``(3) Application.--A State that desires to receive a grant 
        under this subsection shall submit an application to the 
        Commissioner at such time, in such manner, and containing such 
        information as the Commissioner may require.
            ``(4) Use of funds.--A State that receives a grant under 
        this subsection shall establish or expand a telework program 
        that shall provide loans or other alternative financing 
        mechanisms to individuals with disabilities to enable such 
        individuals to purchase computers or other equipment, including 
        adaptive equipment, that facilitates work from home and other 
        telework sites so that such individuals are able to telework.
            ``(5) Annual report.--
                    ``(A) In general.--A State that receives a grant 
                under this subsection shall submit an annual report to 
                the Commissioner.
                    ``(B) Contents.--The report under subparagraph (A) 
                shall include the following:
                            ``(i) The characteristics of each 
                        individual with a disability that receives a 
                        loan or other alternative financing mechanism 
                        under the program, including information about 
                        the individual such as the following:
                                    ``(I) Age.
                                    ``(II) Ethnicity.
                                    ``(III) Type of disability.
                                    ``(IV) Employment status at the 
                                time of application for a loan or other 
                                alternative financing mechanism under 
                                this subsection.
                                    ``(V) Whether the individual 
                                attempted to secure financial support 
                                from other sources to enable the 
                                individual to telework and, if so, a 
                                description of such sources.
                                    ``(VI) Whether the individual is 
                                working and, if so, whether the 
                                individual teleworks, the occupation in 
                                which the individual is working, the 
                                hourly salary the individual receives, 
                                and the hourly salary of the individual 
                                prior to receiving a loan or other 
                                alternative financing mechanism under 
                                the program.
                                    ``(VII) Whether the individual has 
                                repaid the loan or other alternative 
                                financing mechanism received under the 
                                program, is in repayment status, is 
                                delinquent on repayments, or has 
                                defaulted on the loan or other 
                                alternative financing mechanism.
                            ``(ii) Any other information that the 
                        Commissioner may require.
            ``(6) Federal share.--The Federal share of the cost of 
        establishing a telework program shall be 10 percent of the 
        cost.''; and
            (5) in subsection (h), as redesignated by paragraph (2)--
                    (A) by striking ``this section'' and inserting 
                ``this section (other than subsections (c) and (d))''; 
                and
                    (B) by striking ``fiscal years 1999 through 2003'' 
                and inserting ``fiscal years 2006 through 2011''.

SEC. 464B. MIGRANT AND SEASONAL FARMWORKERS.

    Section 304(b) of the Rehabilitation Act of 1973 (29 U.S.C. 774(b)) 
is amended by striking ``fiscal years 1999 through 2003'' and inserting 
``fiscal years 2006 through 2011''.

SEC. 464C. RECREATIONAL PROGRAMS.

    Section 305 of the Rehabilitation Act of 1973 (29 U.S.C. 775) is 
amended--
            (1) in subsection (a)(1)(B), by striking ``construction of 
        facilities for aquatic rehabilitation therapy,''; and
            (2) in subsection (b), by striking ``fiscal years 1999 
        through 2003'' and inserting ``fiscal years 2006 through 
        2011''.

              Subchapter D--National Council on Disability

SEC. 465. AUTHORIZATION OF APPROPRIATIONS.

    Section 405 of the Rehabilitation Act of 1973 (29 U.S.C. 785) is 
amended by striking ``fiscal years 1999 through 2003'' and inserting 
``fiscal years 2006 through 2011''.

                   Subchapter E--Rights and Advocacy

SEC. 466. ARCHITECTURAL AND TRANSPORTATION BARRIERS COMPLIANCE BOARD.

    Section 502(j) of the Rehabilitation Act of 1973 (29 U.S.C. 792(j)) 
is amended by striking ``fiscal years 1999 through 2003'' and inserting 
``fiscal years 2006 through 2011''.

SEC. 466A. PROTECTION AND ADVOCACY OF INDIVIDUAL RIGHTS.

    Section 509 of the Rehabilitation Act of 1973 (29 U.S.C. 794e) is 
amended--
            (1) in subsection (g)(2), by striking ``was paid'' and 
        inserting ``was paid, except that program income generated from 
        the amount paid to an eligible system shall remain available to 
        such system until expended''; and
            (2) in subsection (l), by striking ``fiscal years 1999 
        through 2003'' and inserting ``fiscal years 2006 through 
        2011''.

      Subchapter F--Employment Opportunities for Individuals With 
                              Disabilities

SEC. 467. PROJECTS WITH INDUSTRY AUTHORIZATION OF APPROPRIATIONS.

    Section 612 of the Rehabilitation Act of 1973 (29 U.S.C. 795a) is 
amended by striking ``fiscal years 1999 through 2003'' and inserting 
``fiscal years 2006 through 2011''.

SEC. 467A. SERVICES FOR INDIVIDUALS WITH SIGNIFICANT DISABILITIES 
              AUTHORIZATION OF APPROPRIATIONS.

    Section 628 of the Rehabilitation Act of 1973 (29 U.S.C. 795n) is 
amended by striking ``fiscal years 1999 through 2003'' and inserting 
``fiscal years 2006 through 2011''.

 Subchapter G--Independent Living Services and Centers for Independent 
                                 Living

SEC. 468. STATE PLAN.

    Section 704 of the Rehabilitation Act of 1973 (42 U.S.C. 795c) is 
amended by adding at the end the following:
    ``(o) Promoting Full Access to Community Life.--The plan shall 
describe how the State will provide independent living services that 
promote full access to community life for individuals with significant 
disabilities. The services shall include, as appropriate, facilitating 
transitions from nursing homes and other institutions, including 
institutions serving individuals with cognitive disabilities, to 
community-based residences, assisting individuals with significant 
disabilities at risk of entering institutions to remain in the 
community, and promoting home ownership among individuals with 
significant disabilities.''.

SEC. 468A. STATEWIDE INDEPENDENT LIVING COUNCIL.

    (a) Section 705(b) of the Rehabilitation Act of 1973 (29 U.S.C. 
796d(b)) is amended--
            (1) in paragraph (2), by striking subparagraph (C) and 
        inserting the following:
                    ``(C) in a State in which 1 or more projects 
                provide services under section 121, not less than 1 
                representative of the directors of the projects.''; and
            (2) by striking paragraph (5) and inserting the following:
            ``(5) Chairperson.--The Council shall select a chairperson 
        from among the voting membership of the Council.''.

SEC. 468B. INDEPENDENT LIVING SERVICES AUTHORIZATION OF APPROPRIATIONS.

    Section 714 of the Rehabilitation Act of 1973 (29 U.S.C. 796e-3) is 
amended by striking ``fiscal years 1999 through 2003'' and inserting 
``fiscal years 2006 through 2011''.

SEC. 468C. PROGRAM AUTHORIZATION.

    Section 721 of the Rehabilitation Act of 1973 (42 U.S.C. 796f) is 
amended--
            (1) by striking subsection (c) and inserting the following:
    ``(c) Allotments to States.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Additional appropriation.--The term 
                `additional appropriation' means the amount (if any) by 
                which the appropriation for a fiscal year exceeds the 
                total of--
                            ``(i) the amount reserved under subsection 
                        (b) for that fiscal year; and
                            ``(ii) the appropriation for fiscal year 
                        2003.
                    ``(B) Appropriation.--The term `appropriation' 
                means the amount appropriated to carry out this part.
                    ``(C) Base appropriation.--The term `base 
                appropriation' means the portion of the appropriation 
                for a fiscal year that is equal to the lesser of--
                            ``(i) an amount equal to 100 percent of the 
                        appropriation, minus the amount reserved under 
                        subsection (b) for that fiscal year; or
                            ``(ii) the appropriation for fiscal year 
                        2003.
            ``(2) Allotments to states from base appropriation.--After 
        the reservation required by subsection (b) has been made, the 
        Commissioner shall allot to each State whose State plan has 
        been approved under section 706 an amount that bears the same 
        ratio to the base appropriation as the amount the State 
        received under this subsection for fiscal year 2003 bears to 
        the total amount that all States received under this subsection 
        for fiscal year 2003.
            ``(3) Allotments to states of additional appropriation.--
        From any additional appropriation for each fiscal year, the 
        Commissioner shall allot to each State whose State plan has 
        been approved under section 706 an amount equal to the sum of--
                    ``(A) an amount that bears the same ratio to 50 
                percent of the additional appropriation as the 
                population of the State bears to the population of all 
                States; and
                    ``(B) \1/56\ of 50 percent of the additional 
                appropriation.''; and
            (2) by adding at the end the following:
    ``(e) Carryover Authority.--Notwithstanding any other provision of 
law--
            ``(1) any funds appropriated for a fiscal year to carry out 
        a grant program under section 722 or 723, that are not 
        obligated and expended by recipients prior to the beginning of 
        the succeeding fiscal year shall remain available for 
        obligation and expenditure by such recipients during that 
        succeeding fiscal year and the subsequent fiscal year; and
            ``(2) any amounts of program income received by recipients 
        under a grant program under section 722 or 723 in a fiscal year 
        that are not obligated and expended by recipients prior to the 
        beginning of the succeeding fiscal year, shall remain available 
        for obligation and expenditure by such recipients during that 
        succeeding fiscal year and the subsequent fiscal year.''.

SEC. 468D. GRANTS TO CENTERS FOR INDEPENDENT LIVING IN STATES IN WHICH 
              FEDERAL FUNDING EXCEEDS STATE FUNDING.

    Section 722(c) of the Rehabilitation Act of 1973 (29 U.S.C. 796f-
1(c)) is amended by striking ``by September 30, 1997'' and inserting 
``during the preceding year''.

SEC. 468E. GRANTS TO CENTERS FOR INDEPENDENT LIVING IN STATES IN WHICH 
              STATE FUNDING EQUALS OR EXCEEDS FEDERAL FUNDING.

    Section 723(c) of the Rehabilitation Act of 1973 (29 U.S.C. 796f-
2(c)) is amended by striking ``by September 30, 1997'' and inserting 
``during the preceding year''.

SEC. 468F. STANDARDS AND ASSURANCES FOR CENTERS FOR INDEPENDENT LIVING.

    Section 725(b) of the Rehabilitation Act of 1973 (29 U.S.C. 796f-
4(b)) is amended by adding at the end the following:
            ``(8) Promoting full access to community life.--The center 
        shall provide independent living services that promote full 
        access to community life for individuals with significant 
        disabilities. The services shall include, as appropriate, 
        facilitating transitions from nursing homes and other 
        institutions, including institutions serving individuals with 
        cognitive disabilities, to community-based residences, 
        assisting individuals with significant disabilities at risk of 
        entering institutions to remain in the community, and promoting 
        home ownership among individuals with significant 
        disabilities.''.

SEC. 468G. CENTERS FOR INDEPENDENT LIVING AUTHORIZATION OF 
              APPROPRIATIONS.

    Section 727 of the Rehabilitation Act of 1973 (29 U.S.C. 796f-6) is 
amended by striking ``fiscal years 1999 through 2003'' and inserting 
``fiscal years 2006 through 2011''.

SEC. 468H. INDEPENDENT LIVING SERVICES FOR OLDER INDIVIDUALS WHO ARE 
              BLIND.

    Chapter 2 of title VII of the Rehabilitation Act of 1973 (29 U.S.C. 
796j et seq.) is amended--
            (1) by redesignating sections 752 and 753 as sections 753 
        and 754, respectively; and
            (2) by inserting after section 751 the following:

``SEC. 752. TRAINING AND TECHNICAL ASSISTANCE.

    ``(a) Grants; Contracts; Other Arrangements.--For any fiscal year 
for which the funds appropriated to carry out this chapter exceed the 
funds appropriated to carry out this chapter for fiscal year 2003, the 
Commissioner shall first reserve from such excess, to provide training 
and technical assistance to designated State agencies for such fiscal 
year, not less than 1.8 percent, and not more than 2 percent, of the 
funds appropriated to carry out this chapter for the fiscal year 
involved.
    ``(b) Allocation.--From the funds reserved under subsection (a), 
the Commissioner shall make grants to, and enter into contracts and 
other arrangements with, entities that demonstrate expertise in the 
provision of services to older individuals who are blind to provide 
training and technical assistance with respect to planning, developing, 
conducting, administering, and evaluating independent living programs 
for older individuals who are blind.
    ``(c) Funding Priorities.--The Commissioner shall conduct a survey 
of designated State agencies that receive grants under section 753 
regarding training and technical assistance needs in order to determine 
funding priorities for grants, contracts, and other arrangements under 
this section.
    ``(d) Review.--To be eligible to receive a grant or enter into a 
contract or other arrangement under this section, an eligible entity 
shall submit an application to the Commissioner at such time, in such 
manner, containing a proposal to provide such training and technical 
assistance, and containing such additional information as the 
Commissioner may require.
    ``(e) Prohibition on Combined Funds.--No funds reserved by the 
Commissioner under this section may be combined with funds appropriated 
under any other Act or part of this Act if the purpose of combining 
funds is to make a single discretionary grant or a single discretionary 
payment, unless such funds appropriated under this chapter are 
separately identified in such grant or payment and are used for the 
purposes of this chapter.''.

SEC. 468I. PROGRAM OF GRANTS.

    Section 753 of the Rehabilitation Act of 1973, as redesignated by 
section 468H, is amended--
            (1) in subsection (g), by inserting ``, or contracts 
        with,'' after ``grants to'';
            (2) by striking subsection (h);
            (3) by redesignating subsections (i) and (j) as subsections 
        (h) and (i), respectively;
            (4) in subsection (b), by striking ``section 753'' and 
        inserting ``section 754'';
            (5) in subsection (c)--
                    (A) in paragraph (1), by striking ``section 753'' 
                and inserting ``section 754''; and
                    (B) in paragraph (2)--
                            (i) by striking ``subsection (i)'' and 
                        inserting ``subsection (h)''; and
                            (ii) by striking ``subsection (j)'' and 
                        inserting ``subsection (i)'';
            (6) in subsection (h), as redesignated by paragraph (3)--
                    (A) in paragraph (1), by striking ``subsection 
                (j)(4)'' and inserting ``subsection (i)(4)''; and
                    (B) in paragraph (2)--
                            (i) in subparagraph (A)(vi), by adding 
                        ``and'' after the semicolon;
                            (ii) in subparagraph (B)(ii)(III), by 
                        striking ``; and'' and inserting a period; and
                            (iii) by striking subparagraph (C); and
            (7) in subsection (i), as redesignated by paragraph (3)--
                    (A) by striking paragraph (2) and inserting the 
                following:
            ``(2) Minimum allotment.--
                    ``(A) States.--In the case of the several States, 
                the District of Columbia, and the Commonwealth of 
                Puerto Rico, the amount referred to in paragraph (1)(A) 
                for a fiscal year is the greater of--
                            ``(i) $350,000;
                            ``(ii) an amount equal to the amount the 
                        State, the District of Columbia, or the 
                        Commonwealth of Puerto Rico received to carry 
                        out this chapter for fiscal year 2003; or
                            ``(iii) an amount equal to \1/3\ of 1 
                        percent of the amount appropriated under 
                        section 754, and not reserved under section 
                        752, for the fiscal year and available for 
                        allotments under subsection (a).
                    ``(B) Certain territories.--In the case of Guam, 
                American Samoa, the United States Virgin Islands, and 
                the Commonwealth of the Northern Mariana Islands, the 
                amount referred to in paragraph (1)(A) for a fiscal 
                year is $60,000.'';
                    (B) in paragraph (3)(A), by striking ``section 
                753'' and inserting ``section 754, and not reserved 
                under section 752,''; and
                    (C) in paragraph (4)(B)(i), by striking 
                ``subsection (i)'' and inserting ``subsection (h)''.

SEC. 468J. INDEPENDENT LIVING SERVICES FOR OLDER INDIVIDUALS WHO ARE 
              BLIND AUTHORIZATION OF APPROPRIATIONS.

    Section 754 of the Rehabilitation Act of 1973, as redesignated by 
section 468H, is amended by striking ``fiscal years 1999 through 2003'' 
and inserting ``fiscal years 2006 through 2011''.

                      Subchapter H--Miscellaneous

SEC. 469. 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 
``2006 through 2011''.
    (b) Helen Keller National Center Federal Endowment Fund.--The first 
sentence of section 208(h) of the Helen Keller National Center Act (29 
U.S.C. 1907(h)) is amended by striking ``1999 through 2003'' and 
inserting ``2006 through 2011''.

                CHAPTER 5--TRANSITION AND EFFECTIVE DATE

SEC. 471. TRANSITION PROVISIONS.

    The Secretary of Labor shall, at the discretion of the Secretary, 
take such actions as the Secretary determines to be appropriate to 
provide for the orderly implementation of chapters 1 and 3 of this 
subtitle. The Secretary of Education shall, at the discretion of the 
Secretary, take such actions as the Secretary determines to be 
appropriate to provide for the orderly implementation of chapters 2 and 
4 of this subtitle.

SEC. 471A. EFFECTIVE DATE.

    Except as otherwise provided in this subtitle, this subtitle and 
the amendments made by this subtitle shall take effect on the date of 
enactment of this Act.

               TITLE V--MAKING EDUCATION MORE AFFORDABLE

SEC. 501. SENSE OF THE SENATE REGARDING MAKING EDUCATION MORE 
              AFFORDABLE.

    It is the sense of the Senate that--
            (1) parents should be able to trust that the tax code will 
        not change so that they may adequately plan how to pay for 
        their child's education; and
            (2) therefore the following provisions in title IV of the 
        Economic Growth and Tax Relief Reconciliation Act of 2001 
        should be made permanent:
                    (A) The increase in the Coverdell Education Savings 
                Account contribution to $2,000 and the modification 
                that permits such money to be used for kindergarten 
                through grade 12 expenses.
                    (B) The modification making qualified tuition 
                savings programs tax-exempt and allowing private 
                institutions to offer prepaid tuition plans.
                    (C) The increases to the income limits for the 
                student loan interest deduction and the elimination of 
                the 60-month rule.
                    (D) The above-the-line deduction for qualified 
                tuition expenses of $3,000 in 2002 and 2003, and $4,000 
                in 2004 and 2005.
                    (E) The liberalization of tax-exempt financing 
                rules for public school construction.

SEC. 502. AFFORDABLE EDUCATION PROVISIONS MADE PERMANENT.

    Title IX of the Economic Growth and Tax Relief Reconciliation Act 
of 2001 (relating to sunset of provisions of such Act) shall not apply 
to title IV of such Act (relating to affordable education provisions).

SEC. 503. CREDIT FOR EDUCATION, TUITION, AND TRANSPORTATION EXPENSES OF 
              STUDENTS ASSIGNED TO SCHOOLS IDENTIFIED FOR SCHOOL 
              IMPROVEMENT.

    (a) Short Title.--This section may be cited as the ``Give Back to 
Parents Act of 2005''.
    (b) Sense of the Senate.--It is the sense of the Senate that a 
refundable tax credit for up to 50 percent of the first $5,000 a parent 
spends to enable a child to attend another public or private school 
would help defray the cost of tuition at and transportation to a better 
school, and would therefore enable parents of children assigned to 
schools identified for school improvement access to better education 
options.
    (c) Amendment.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to refundable credits) 
is amended by redesignating section 36 as section 37 and by inserting 
after section 35 the following new section:

``SEC. 36. EDUCATION EXPENSES OF STUDENTS ASSIGNED TO SCHOOLS 
              IDENTIFIED FOR SCHOOL IMPROVEMENT.

    ``(a) General Rule.--In the case of an individual, there shall be 
allowed as a credit against the tax imposed by this subtitle for the 
taxable year 50 percent of the amount of the qualified education 
expenses paid by the taxpayer during the taxable year for the education 
of any individual--
            ``(1) with respect to whom the taxpayer is allowed a 
        deduction under section 151(c), and
            ``(2) who would have otherwise been assigned to a public 
        school identified for school improvement under section 1116 of 
        the Elementary and Secondary Education Act of 1965 but who 
        incurred qualified education expenses to enroll in a public or 
        nonpublic school not identified for school improvement under 
        such section for the period to which such expenses relate.
    ``(b) Limitation.--The amount of qualified education expenses which 
may be taken into account under subsection (a) for any taxable year 
with respect to any 1 individual shall not exceed $5,000.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Qualified education expenses.--
                    ``(A) In general.--The term `qualified education 
                expenses' means amounts paid for--
                            ``(i) tuition and fees required for the 
                        enrollment or attendance of a student at an 
                        eligible educational institution,
                            ``(ii) transportation to and from an 
                        individual's home and an eligible educational 
                        institution, and
                            ``(iii) books, supplies, computer equipment 
                        (including related software and services), and 
                        other equipment required for courses of 
                        instruction at an eligible educational 
                        institution.
                    ``(B) Meals and lodging expenses not included.--
                Such term does not include any amount paid, directly or 
                indirectly, for meals, lodging, or similar personal, 
                living, or family expenses. In the event an amount paid 
                for tuition or fees includes an amount for meals, 
                lodging, or similar expenses which is not separately 
                stated, the portion of such amount which is 
                attributable to meals, lodging, or similar expenses 
                shall be determined under regulations prescribed by the 
                Secretary.
                    ``(C) Special rule for home schooling.--In the case 
                of education furnished in the home (as a substitute for 
                public education) which meets the requirements of State 
                law relating to compulsory school attendance, the term 
                `qualified education expenses' means amounts paid for 
                tutoring, books, supplies, computer equipment 
                (including related software and services), and other 
                equipment directly used in furnishing such education.
            ``(2) Eligible educational institution.--The term `eligible 
        educational institution' means--
                    ``(A) a secondary school,
                    ``(B) an elementary school, or
                    ``(C) any private, parochial, religious, or home 
                school organized for the purpose of providing 
                elementary or secondary education, or both.
            ``(3) Elementary and secondary schools.--The terms 
        `elementary school' and `secondary school' have the respective 
        meanings given such terms by section 9101 of the Elementary and 
        Secondary Education Act of 1965.
    ``(d) Adjustment for Certain Scholarships.--The amounts otherwise 
taken into account under subsection (a) as qualified education expenses 
of any individual during any period shall be reduced (before the 
application of subsection (b)) by the sum of the amounts received with 
respect to such individual for the taxable year as a qualified 
scholarship which under section 117 is not includable in gross income.
    ``(e) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary to carry out the provisions of this section.''.
    (d) Technical Amendments.--
            (1) Paragraph (2) of section 1324(b) of title 31, United 
        States Code, is amended by inserting before the period ``, or 
        from section 36 of such Code''.
            (2) The table of sections for subpart C of part IV of 
        subchapter A of chapter 1 of such Code is amended by striking 
        the last item and inserting the following new items:

                              ``Sec. 36. Education expenses of students 
                                        assigned to schools identified 
                                        for school improvement.
                              ``Sec. 37. Overpayments of tax.''.
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