[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3747 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 3747

      To enhance the workforce investment system of the Nation by 
  strengthening one-stop career centers, providing for more effective 
governance arrangements, promoting access to a more comprehensive array 
    of employment and training, integrating existing employment and 
  training programs to avoid duplication and overlap, establishing a 
     targeted approach to serving youth, and improving performance 
                accountability, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 4, 2007

Mr. McKeon (for himself, Mr. Keller of Florida, Mr. Boustany, Mr. Kline 
of Minnesota, Mr. David Davis of Tennessee, and Mr. Souder) introduced 
 the following bill; which was referred to the Committee on Education 
                               and Labor

_______________________________________________________________________

                                 A BILL


 
      To enhance the workforce investment system of the Nation by 
  strengthening one-stop career centers, providing for more effective 
governance arrangements, promoting access to a more comprehensive array 
    of employment and training, integrating existing employment and 
  training programs to avoid duplication and overlap, establishing a 
     targeted approach to serving youth, and improving performance 
                accountability, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Workforce Investment Improvement Act 
of 2007''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.
 TITLE I--AMENDMENTS TO TITLE I OF THE WORKFORCE INVESTMENT ACT OF 1998

Sec. 101. Definitions.
Sec. 102. Purpose.
Sec. 103. State workforce investment boards.
Sec. 104. State plan.
Sec. 105. Local workforce investment areas.
Sec. 106. Local workforce investment boards.
Sec. 107. Local plan.
Sec. 108. Establishment of One-Stop delivery systems.
Sec. 109. Eligible providers of training services.
Sec. 110. Eligible providers of Youth Activities.
Sec. 111. Youth Activities.
Sec. 112. Comprehensive programs for adults.
Sec. 113. Performance accountability system.
Sec. 114. Authorization of appropriations.
Sec. 115. Job Corps.
Sec. 116. Native American programs.
Sec. 117. Migrant and seasonal farmworker programs.
Sec. 118. Veterans' workforce investment programs.
Sec. 119. Youth challenge grants.
Sec. 120. Technical assistance.
Sec. 121. Demonstration, pilot, multiservice, research and multi-state 
                            projects.
Sec. 122. Community-Based job training.
Sec. 123. Evaluations.
Sec. 124. National dislocated worker grants.
Sec. 125. Authorization of appropriations for national activities.
Sec. 126. Requirements and restrictions.
Sec. 127. Nondiscrimination.
Sec. 128. Administrative provisions.
Sec. 129. State legislative authority.
Sec. 130. Workforce innovation in regional economic development.
Sec. 131. General program requirements.
 TITLE II--ADULT EDUCATION, BASIC SKILLS, AND FAMILY LITERACY EDUCATION

Sec. 201. Table of contents.
Sec. 202. Amendment.
             TITLE III--AMENDMENTS TO THE WAGNER-PEYSER ACT

Sec. 301. Amendments to the Wagner-Peyser Act.
         TITLE IV--AMENDMENTS TO THE REHABILITATION ACT OF 1973

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

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

SEC. 3. REFERENCES.

    Except as otherwise expressly provided, wherever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the amendment or repeal shall be 
considered to be made to a section or other provision of the Workforce 
Investment Act of 1998 (20 U.S.C. 9201 et seq.).

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

SEC. 101. DEFINITIONS.

    Section 101 (29 U.S.C. 2801) is amended--
            (1) by striking paragraphs (13) and (24) and redesignating 
        paragraphs (1) through (12) as paragraphs (3) through (14), and 
        paragraphs (14) through (23) as paragraphs (15) through (24), 
        respectively;
            (2) by inserting after ``In this title:'' the following new 
        paragraphs:
            ``(1) Accrued expenditures.--The term `accrued 
        expenditures' means charges incurred by recipients of funds 
        under this title for a given period requiring the provision of 
        funds for goods or other tangible property received; services 
        performed by employees, contractors, subgrantees, 
        subcontractors, and other payees; and other amounts becoming 
        owed under programs assisted under this title for which no 
        current services or performance is required, such as annuities, 
        insurance claims, and other benefit payments.
            ``(2) Administrative costs.--The term `administrative 
        costs' means expenditures incurred by State and local workforce 
        investment boards, direct recipients (including State grant 
        recipients under subtitle B and recipients of awards under 
        subtitle D), local grant recipients, local fiscal agents or 
        local grant subrecipients, and one-stop operators in the 
        performance of administrative functions and in carrying out 
        activities under this title which are not related to the direct 
        provision of workforce investment services (including services 
        to participants and employers). Such costs include both 
        personnel and non-personnel and both direct and indirect.'';
            (3) in paragraph (6) (as so redesignated), by inserting 
        ``(or such other level as the Governor may establish)'' after 
        ``8th grade level'';
            (4) in paragraph (10)(C) (as so redesignated), by striking 
        ``not less than 50 percent of the cost of the training'' and 
        inserting ``a significant portion of the cost of training, as 
        determined by the local board (or, in the case of an employer 
        in multiple local areas in the State, as determined by the 
        Governor), taking into account the size of the employer and 
        such other factors as the local board determines to be 
        appropriate''; and
            (5) in paragraph (11) (as so redesignated)--
                    (A) in subparagraph (A)(ii)(II), by striking 
                ``section 134(c)'' and inserting ``section 121(e)'';
                    (B) in subparagraph (B)(iii), by striking 
                ``intensive services described in section 134(d)(3)'' 
                and inserting ``work ready services described in 
                section 134(c)(3)(M) through (U)'';
                    (C) in subparagraph (C), by striking ``or'' after 
                the semicolon;
                    (D) in subparagraph (D), by striking the period and 
                inserting ``; or''; and
                    (E) by adding at the end the following:
                    ``(E)(i) is the spouse of a member of the Armed 
                Forces on active duty for a period of more than 30 days 
                (as defined in section 101(d)(2) of title 10, United 
                States Code) who has experienced a loss of employment 
                as a direct result of relocation to accommodate a 
                permanent change in duty station of such member; or
                    ``(ii) is the spouse of a member of the Armed 
                Forces on active duty who meets the criteria described 
                in paragraph (12)(B).'';
            (6) in paragraph (12)(A) (as redesignated)--
                    (A) by striking ``and'' after the semicolon and 
                inserting ``or'';
                    (B) by striking ``(A)'' and inserting ``(A)(i)''; 
                and
                    (C) by adding at the end the following:
                    ``(ii) is the 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'';
            (7) in paragraph (13) (as so redesignated), by inserting 
        ``or regional'' after ``local'' each place it appears;
            (8) in paragraph (14) (as so redesignated)--
                    (A) in subparagraph (A), by striking ``section 
                122(e)(3)'' and inserting ``section 122''; and
                    (B) by striking subparagraph (B), and inserting the 
                following:
                    ``(B) work ready services, means a provider who is 
                identified or awarded a contract as described in 
                section 134(c)(3);''.
            (9) in paragraph (25)--
                    (A) in subparagraph (B), by striking ``higher of--
                '' and all that follows through clause (ii) and 
                inserting ``poverty line for an equivalent period;''; 
                and
                    (B) by redesignating subparagraphs (D) through (F) 
                as subparagraphs (E) through (G), respectively, and 
                inserting after subparagraph (C) the following:
                    ``(D) receives or is eligible to receive free or 
                reduced price lunch under the Richard B. Russell 
                National School Lunch Act (42 U.S.C. 1751 et seq.);'';
            (10) in paragraph (32) by striking ``the Republic of the 
        Marshall Islands, the Federated States of Micronesia,''; and
            (11) by striking paragraph (33) and redesignating 
        paragraphs (34) through (53) as paragraphs (33) through (52), 
        respectively.

SEC. 102. PURPOSE.

    Section 106 (29 U.S.C. 2811) is amended by inserting at the end the 
following: ``It is also the purpose of this subtitle to provide 
workforce investment activities in a manner that promotes the informed 
choice of participants and actively involves participants in obtaining 
training services that will increase their skills and improve their 
employment outcomes.''.

SEC. 103. STATE WORKFORCE INVESTMENT BOARDS.

    (a) Membership.--
            (1) In general.--Section 111(b) (29 U.S.C. 2821(b)) is 
        amended--
                    (A) by amending paragraph (1)(C) to read as 
                follows:
                    ``(C) representatives appointed by the Governor, 
                who are--
                            ``(i)(I) the lead State agency officials 
                        with responsibility for the programs and 
                        activities that are described in section 121(b) 
                        and carried out by one-stop partners;
                            ``(II) in any case in which no lead State 
                        agency official has responsibility for such a 
                        program or activity, a representative in the 
                        State with expertise relating to such program 
                        or activity; and
                            ``(III) if not included under subclause 
                        (I), the director of the State unit, defined in 
                        section 7(8)(B) of the Rehabilitation Act of 
                        1973 (29 U.S.C. 705(8)(B)) except that in a 
                        State that has established 2 or more designated 
                        State units to administer the vocational 
                        rehabilitation program, the board 
                        representative shall be the director of the 
                        designated State unit that serves the most 
                        individuals with disabilities in the State;
                            ``(ii) the State agency officials 
                        responsible for economic development;
                            ``(iii) representatives of business in the 
                        State who--
                                    ``(I) are owners of businesses, 
                                chief executive or operating officers 
                                of businesses, and other business 
                                executives or employers with optimum 
                                policy making or hiring authority, 
                                including members of local boards 
                                described in section 117(b)(2)(A)(i);
                                    ``(II) represent businesses with 
                                employment opportunities that reflect 
                                employment opportunities in the State; 
                                and
                                    ``(III) are appointed from among 
                                individuals nominated by State business 
                                organizations and business trade 
                                associations;
                            ``(iv) chief elected officials 
                        (representing both cities and counties, where 
                        appropriate);
                            ``(v) one or more representatives of labor 
                        organizations, who have been nominated by State 
                        labor federations or labor organizations within 
                        the State; and
                            ``(vi) such other representatives and State 
                        agency officials as the Governor may 
                        designate.''; and
                    (B) in paragraph (3), by striking ``paragraph 
                (1)(C)(i)'' and inserting ``paragraph (1)(C)(iii)''.
            (2) Conforming amendment.--Section 111(c) (29 U.S.C. 
        2811(c)) is amended by striking ``subsection (b)(1)(C)(i)'' and 
        inserting ``subsection (b)(1)(C)(iii)''.
    (b) Functions.--Section 111(d) (29 U.S.C. 2811(d)) is amended--
            (1) in paragraph (2), by striking ``section 134(c)'' and 
        inserting ``section 121(e)'';
            (2) by amending paragraph (3) to read as follows:
            ``(3) development and review of statewide policies 
        affecting the integrated provision of services through the one-
        stop delivery system described in section 121 within the State, 
        including--
                    ``(A) the development of objective criteria and 
                procedures for, and the issuance of, certifications of 
                one-stop centers;
                    ``(B) the criteria for the allocation of one-stop 
                center infrastructure funding under section 121(h), and 
                oversight of the use of such funds;
                    ``(C) 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, consistent with section 
                121;
                    ``(D) strategies for providing effective outreach 
                to individuals and employers who could benefit from 
                services provided through the one-stop delivery system; 
                and
                    ``(E) 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;
                    ``(F) 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
                    ``(G) carrying out of such other matters as may 
                promote statewide objectives for, and enhance the 
                performance of, the one-stop delivery system;'';
            (3) in paragraph (4), by inserting ``and the development of 
        State criteria relating to the appointment and certification of 
        local boards under section 117'' after ``section 116'';
            (4) in paragraph (5), by striking ``128(b)(3)(B) and 
        133(b)(3)(B)'' and inserting ``sections 128(b)(3) and 
        133(b)(3)''; and
            (5) in paragraph (8)--
                    (A) by striking ``employment statistics system'' 
                and inserting ``workforce and labor market information 
                system''; and
                    (B) by striking ``and'' after the semicolon;
            (6) in paragraph (9)--
                    (A) by striking ``section 503'' and inserting 
                ``section 136(i)''; and
                    (B) by striking the period and inserting ``; and''; 
                and
            (7) by inserting the following new paragraph after 
        paragraph (9):
            ``(10) 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.''.
    (c) Elimination of Alternative Entity and Provision of Authority To 
Hire Staff.--Section 111(e) (29 U.S.C. 2821(e)) is amended to read as 
follows:
    ``(e) Authority To Hire Staff.--The State board may hire staff to 
assist in carrying out the functions described in subsection (d).''.
    (d) Conflict of Interest.--Section 111(f)(1) (29 U.S.C. 2821(f)(1)) 
is amended by inserting ``or participate in action taken'' after 
``vote''.
    (e) Sunshine Provision.--Section 111(g) (29 U.S.C. 2821(g)) is 
amended--
            (1) by inserting ``, and modifications to the State plan,'' 
        after ``State plan'' ; and
            (2) by inserting ``, and modifications to the State plan'' 
        after ``the plan''.

SEC. 104. STATE PLAN.

    (a) Planning Cycle.--Section 112(a) (29 U.S.C. 2822(a)) is amended 
by striking ``5-year strategy'' and inserting ``2-year strategy''.
    (b) Contents.--Section 112(b) (29 U.S.C. 2822(b)) is amended--
            (1) by amending paragraph (7) to read as follows:
            ``(7) a description of the State criteria for determining 
        the eligibility of training providers in accordance with 
        section 122, including how the State will take into account the 
        performance of providers and whether the training programs 
        relate to occupations that are in demand;'';
            (2) in paragraph (8)--
                    (A) in subparagraph (A)--
                            (i) in clause (ix), by striking ``and'' 
                        after the semicolon;
                            (ii) by adding the following new clause 
                        after clause (x):
                            ``(xi) programs authorized under title II 
                        of the Social Security Act (42 U.S.C. 401 et 
                        seq.) (related 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'';
                    (B) by amending subparagraph (B) to read as 
                follows:
                    ``(B) a description of common data collection and 
                reporting processes used for the programs and 
                activities described in subparagraph (A) that are one-
                stop partners, including assurances that such processes 
                utilize quarterly wage records for performance measures 
                relating to entry into employment, retention in 
                employment, and average earnings that are applicable to 
                such programs or activities, or, if such records are 
                not being used, an identification of the barriers to 
                such use and a description of how the State will 
                address such barriers within one year of the approval 
                of the plan;''; and
            (3) in paragraph (11), by inserting ``, including controls 
        and procedures to ensure that the limitations on the costs of 
        administration are not exceeded''.
            (4) 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)'';
            (5) in paragraph (14), by striking ``section 134(c)'' and 
        inserting ``section 121(e)'';
            (6) in paragraph (17)(A)--
                    (A) in clause (iii) by striking ``and'';
                    (B) by amending clause (iv) to read as follows:
                            ``(iv) how the State will serve the 
                        employment and training needs of dislocated 
                        workers (including displaced homemakers), low 
                        income individuals (including recipients of 
                        public assistance), individuals with limited 
                        English proficiency, homeless individuals, 
                        individuals training for nontraditional 
                        employment, and other individuals with multiple 
                        barriers to employment (including older 
                        individuals); and''; and
                    (C) by inserting after clause (iv) the following:
                            ``(v) how the State will serve the 
                        employment and training needs of individuals 
                        with disabilities, consistent with section 188 
                        and Executive Order 13217 (42 U.S.C. 12131 
                        note; relating to community-based alternatives 
                        for individuals with disabilities) including 
                        the provision of outreach, intake, assessments, 
                        and service delivery, the development of 
                        performance measures established under section 
                        136, the training of staff, and other aspects 
                        of accessibility to program services, 
                        consistent with sections 504 and 508 of the 
                        Rehabilitation Act of 1973; and'';
            (7) in paragraph (17)(B), by striking ``to the extent 
        practicable'' and inserting ``in accordance with the 
        requirements of the Jobs for Veterans Act (PL 107-288)'';
            (8) in paragraph (18)(D), by striking ``youth opportunity 
        grants'' and inserting ``youth challenge grants''; and
            (9) by adding at the end the following new paragraphs:
            ``(19) a description of the process and methodology for 
        determining one-stop partner program contributions for the cost 
        of the infrastructure of one-stop centers under section 
        121(h)(1) and of the formula for allocating such infrastructure 
        funds to local areas under section 121(h)(3);
            ``(20) a description of the strategies and programs 
        providing outreach to businesses, identifying workforce needs 
        of businesses in the State, and ensuring that such needs will 
        be met (including the needs of small businesses), which may 
        include--
                    ``(A) 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, 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) providing 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, economic development, and postsecondary 
                education and training efforts to contribute to the 
                economic well-being of the local area and region, as 
                determined appropriate by the local board;
            ``(21) a description of how the State will utilize 
        technology to facilitate access to services in remote areas 
        which may be utilized throughout the State;
            ``(22) a description of the State strategy and assistance 
        to be provided for encouraging regional cooperation within the 
        State and across State borders as appropriate; and
            ``(23) a description of the actions that will be taken by 
        the State to foster communication and partnerships with non-
        profit organizations (including community, faith-based, and 
        philanthropic organizations) that provide employment-related, 
        training, and complementary services, in order to enhance the 
        quality and comprehensiveness of services available to 
        participants under this title.''.
    (c) Modification to Plan.--Section 112(d) (29 U.S.C. 2822(d)) is 
amended by striking ``5-year period'' and inserting ``2-year period''.

SEC. 105. LOCAL WORKFORCE INVESTMENT AREAS.

    (a) Designation of Areas.--
            (1) Considerations.--Section 116(a)(1)(B) (29 U.S.C. 
        2831(a)(1)(B)) is amended by adding at the end the following 
        clause:
                            ``(vi) The extent to which such local areas 
                        will promote efficiency in the administration 
                        and provision of services.''.
            (2) Automatic designation.--Section 116(a)(2) (29 U.S.C. 
        2831(a)(2)) is amended to read as follows:
            ``(2) Automatic designation.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B) of this paragraph and subsection (b), 
                the Governor shall approve a request for designation as 
                a local area from--
                            ``(i) any unit of general local government 
                        with a population of 500,000 or more; and
                            ``(ii) an area served by a rural 
                        concentrated employment program grant recipient 
                        that served as a service delivery area or 
                        substate area under the Job Training 
                        Partnership Act (29 U.S.C. 1501 et seq.),
                for the 2-year period covered by a State plan under 
                section 112 if such request is made not later than the 
                date of the submission of the State plan.
                    ``(B) Continued designation based on performance.--
                The Governor may deny a request for designation 
                submitted pursuant to subparagraph (A) if such unit of 
                government was designated as a local area for the 
                preceding 2-year period covered by a State plan and the 
                Governor determines that such local area did not 
                perform successfully during such period.''.
    (b) 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), the Governor of any State that 
        was a single local area for purposes of this title as of July 
        1, 2007, 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) New designation.--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) requests such designation as a separate local 
        area.
            ``(3) Effect on local plan.--In any case in which the local 
        area is the State pursuant to this subsection, the local plan 
        under section 118 shall be submitted to the Secretary for 
        approval as part of the State plan under section 112.''.
    (c) Regional Planning.--Section 116(c)(1) (29 U.S.C. 2831(c)(1)) is 
amended by adding at the end the following: ``The State may require the 
local boards for the designated region to prepare a single regional 
plan that incorporates the elements of the local plan under section 118 
and that is submitted and approved in lieu of separate local plans 
under such section.''.

SEC. 106. LOCAL WORKFORCE INVESTMENT BOARDS.

    (a) Composition.--Section 117(b)(2) (29 U.S.C. 2832(b)(2)) is 
amended--
            (1) in subparagraph (A)--
                    (A) in clause (i)(II), by inserting ``, businesses 
                that are in the leading industries in the local area, 
                and large and small businesses in the local area'' 
                after ``local area'';
                    (B) by amending clause (ii) to read as follows:
                            ``(ii) a superintendent of the local 
                        secondary school system and the president or 
                        chief executive officer of a postsecondary 
                        educational institution serving the local area 
                        (including community colleges, where such 
                        entities exist);'';
                    (C) in clause (iii)--
                            (i) by striking ``representatives'' and 
                        inserting ``one or more representatives''; and
                            (ii) by inserting ``or by labor 
                        organizations in the local area'' after 
                        ``federations'';
                    (D) in clause (iv)--
                            (i) by striking ``representatives'' and 
                        inserting ``one or more representatives''; and
                            (ii) by striking the semicolon and 
                        inserting ``and faith-based organizations; 
                        and'';
                    (E) in clause (v) by inserting ``one or more'' 
                before ``representatives''; and
                    (F) by striking clause (vi); and
            (2) in subparagraph (B), by striking the period and 
        inserting ``; and''; and
            (3) by adding at the end the following subparagraph:
                    ``(C) except for the individuals described in 
                subparagraph(A)(ii), shall not include any individual 
                who is employed by an entity receiving funds for the 
                provision of services under chapters 4 or 5.''.
    (b) Authority of Board Members.--Section 117(b)(3) (29 U.S.C. 
2832(b) is amended--
            (1) in the heading, by inserting ``and representation'' 
        after ``members''; and
            (2) by adding at the end the following: ``The members of 
        the board shall represent diverse geographic sections within 
        the local area.''.
    (c) Functions.--Section 117(d) (29 U.S.C. 2832(d)) is amended--
            (1) in paragraph (2)(B), by striking ``by awarding grants'' 
        and all that follows through ``youth council'';
            (2) by striking paragraph (2)(D) and inserting the 
        following:
                    ``(D) Identification of eligible providers of work 
                ready services.--If the one-stop operator does not 
                provide the work ready services described in section 
                134(c)(3)(M) through (U) in the local area, the local 
                board shall identify eligible providers of such 
                services in the local area by awarding contracts.'';
            (3) in paragraph (3)(B) by striking clause (ii) and 
        inserting the following:
                            ``(ii) Staff.--The local board may employ 
                        staff to assist in carrying out the functions 
                        described in this subsection.'';
            (4) in paragraph (4) by inserting ``, and ensure the 
        appropriate use and management of the funds provided under this 
        title for such programs, activities, and system'' after 
        ``area'';
            (5) 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'';
            (6) by amending paragraph (8) to read as follows:
            ``(8) Convening, brokering, and leveraging.--The local 
        board shall support a comprehensive workforce investment system 
        for the local area and promote the participation by private 
        sector employers, service providers, and other stakeholders in 
        such system. The Board shall ensure the effective provision, 
        through the system, of convening, brokering, and leveraging 
        activities, through intermediaries such as the one-stop 
        operator in the local area or through other organizations, to 
        assist such employers in meeting hiring needs. Such activities 
        may include--
                    ``(A) convening private sector employers, including 
                small employers, labor, economic development, and 
                education leaders in the area to align system missions 
                and services, and to identify and meet the employment, 
                education, and skills training needs of the local area 
                in support of regional and local economic growth 
                strategies;
                    ``(B) providing leadership in the design and 
                implementation of a comprehensive workforce development 
                system that extends beyond those programs authorized 
                under title I of this Act (including programs 
                identified in section 121(b)) for the local area;
                    ``(C) brokering relationships and service 
                arrangements across system stakeholders and partners; 
                and
                    ``(D) leveraging resources other than those 
                provided under title I of this Act, including public 
                and private resources, to significantly expand 
                resources available for employment and training 
                activities identified as necessary in the local 
                area.'';
            (7) 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.''.
    (d) Limitations.--Section 117(f) (29 U.S.C. 2832(f)) is amended by 
striking paragraph (2) and inserting the following:
            ``(2) Work ready services, designation, or certification as 
        one-stop operators.--A local board may provide work ready 
        services described in section (c)(d)(2) through a one-stop 
        delivery system described in section 121 or be designated or 
        certified as a one-stop operator only with the agreement of the 
        chief elected official and the Governor.''.
    (e) Conflict of Interest.--Section 117(g)(1) (29 U.S.C. 2832(g)(1)) 
is amended by inserting ``or participate in action taken'' after 
``vote''.
    (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) Establishment of Councils.--The local board may establish 
councils to provide information and advice to assist the local board in 
carrying out activities under this title. Such councils may include a 
council composed of one-stop partners to advise the local board on the 
operation of the one-stop delivery system, a youth council composed of 
experts and stakeholders in youth programs to advise the local board on 
activities for youth, and such other councils as the local board 
determines are appropriate.''.
    (g) Repeal of Alternative Entity Provision.--Section 117 (29 U.S.C. 
2832) is further amended by striking subsection (i).

SEC. 107. LOCAL PLAN.

    (a) Planning Cycle.--Section 118(a) (29 U.S.C. 2833(a)) is amended 
by striking ``5-year'' and inserting ``2-year''.
    (b) Contents.--Section 118(b) (29 U.S.C. 2833(b)) is amended--
            (1) by amending paragraph (2) to read as follows:
            ``(2) a description of the one-stop delivery system to be 
        established or designated in the local area, including a 
        description of how the local board will ensure the continuous 
        improvement of eligible providers of services through the 
        system and ensure that such providers meet the employment needs 
        of local employers and participants;'';
            (2) in paragraph (4)--
                    (A) by striking ``and dislocated worker''; and
                    (B) by inserting before the semicolon ``, including 
                a description of how the local area will implement the 
                requirements of section 134(c)(4)(G) relating to 
                ensuring that training services are linked to 
                occupations that are in demand'';
            (3) in paragraph (5), by striking ``statewide rapid 
        response activities'' and inserting ``statewide activities'';
            (4) in paragraph (9), by striking ``; and'' and inserting a 
        semicolon; and
            (5) by redesignating paragraph (10) as paragraph (13) and 
        inserting after paragraph (9) the following:
            ``(10) 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;
            ``(11) a description of how the local board will facilitate 
        access to services provided through the one-stop delivery 
        system involved in remote areas, including facilitating access 
        through the use of technology;
            ``(12) how the local area will serve the employment and 
        training needs of individuals with disabilities, consistent 
        with section 188 and Executive Order 13217 (42 U.S.C. 12131 
        note) including the provision of outreach, intake, assessments, 
        and service delivery, the development of performance measures, 
        the training of staff, and other aspects of accessibility to 
        program services, consistent with sections 504 and 508 of the 
        Rehabilitation Act of 1973; and''.

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

    (a) One-Stop Partners.--
            (1) Required partners.--Section 121(b)(1) (29 U.S.C. 
        2841(b)(1)) is amended--
                    (A) 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 
                        work ready services described in section 
                        134(d)(2) that are applicable to the program of 
                        the entity available at the 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 clauses (ii) and (v);
                            (ii) by redesignating clauses (iii) and 
                        (iv) as clauses (ii) and (iii), respectively, 
                        and by redesignating clauses (vi) through (xii) 
                        as clauses (iv) through (x), respectively;
                            (iii) in clause (ix) (as so redesignated), 
                        by striking ``and'' at the end;
                            (iv) in clause (x) (as so redesignated), by 
                        striking the period and inserting ``; and''; 
                        and
                            (v) by inserting after clause (x)(as so 
                        redesignated) the following:
                            ``(xi) programs authorized under part A of 
                        title IV of the Social Security Act (42 U.S.C. 
                        601 et seq.), subject to subparagraph (C); and
                            ``(xii) programs authorized under section 
                        6(d)(4) of the Food Stamp Act of 1977 (7 U.S.C. 
                        2015(d)(4)), subject to subparagraph (C).''; 
                        and
                    (C) by adding after subparagraph (B) the following:
                    ``(C) Determination by the governor.--The program 
                referred to in clauses (xi) and (xii) of subparagraph 
                (B) shall be included as a required partner for 
                purposes of this title in a State unless the Governor 
                of the State notifies the Secretary and the Secretary 
                of Health and Human Services (in the case of the 
                program referred to in clause (xi) of subparagraph 
                (B)), or the Secretary and the Secretary of Agriculture 
                (in the case of the program referred to in clause (xii) 
                of subparagraph (B)) in writing of a determination by 
                the Governor not to include such programs as required 
                partners for purposes of this title in the State.''.
            (2) Additional partners.--Section 121(b)(2)(B) (29 U.S.C. 
        2841(b)(2)(B)) is amended to read as follows:
                    ``(B) Programs.--The programs referred to in 
                subparagraph (A) may include--
                            ``(i) employment and training programs 
                        administered by the Social Security 
                        Administration, including the Ticket to Work 
                        program (established by Public Law 106-170);
                            ``(ii) employment and training programs 
                        carried out by the Small Business 
                        Administration;
                            ``(iii) programs under part D of title IV 
                        of the Social Security Act (42 U.S.C. 451 et 
                        seq.) (relating to child support enforcement);
                            ``(iv) employment, training, and literacy 
                        services carried out by public libraries;
                            ``(v) programs carried out in the local 
                        area for individuals with disabilities, 
                        including programs carried out by State 
                        agencies relating to mental health, mental 
                        retardation, and developmental disabilities, 
                        State Medicaid agencies, State Independent 
                        Living Councils, and Independent Living 
                        Centers;
                            ``(vi) programs authorized under the 
                        National and Community Service Act of 1990 (42 
                        U.S.C. 1250 et seq.);
                            ``(vii) cooperative extension programs 
                        carried out by the Department of Agriculture; 
                        and
                            ``(viii) other appropriate Federal, State, 
                        or local programs, including programs in the 
                        private sector.''.
    (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, through cash and in-kind contributions, 
                        to provide a stable and equitable funding 
                        stream for ongoing one-stop system operations, 
                        including the funding of the infrastructure 
                        costs of one-stop centers in accordance with 
                        subsection (h);
                            ``(iii) methods of referral of individuals 
                        between the one-stop operator and the one-stop 
                        partners for appropriate services and 
                        activities; and
                            ``(iv) the duration of the memorandum of 
                        understanding and the procedures for amending 
                        the memorandum during the term of the 
                        memorandum, and assurances that such memorandum 
                        shall be reviewed not less than once every 2-
                        year period to ensure appropriate funding and 
                        delivery of services; and''.
    (c) Provision of Services.--Subtitle B of title I is amended--
            (1) in section 121(d)(2), by striking ``section 134(c)'' 
        and inserting ``subsection (e)'';
            (2) by striking subsection (e) of section 121;
            (3) by moving subsection (c) of section 134 from section 
        134, redesignating such subsection as subsection (e), and 
        inserting such subsection (as so redesignated) after subsection 
        (d) of section 121; and
            (4) by amending subsection (e) of section 121 (as moved and 
        redesignated by paragraph (3))--
                    (A) in paragraph (1)(A), by striking ``core 
                services described in subsection (d)(2)'' and inserting 
                ``work ready services described in section 134(c)(2)'';
                    (B) in paragraph (1)(B)--
                            (i) by striking ``intensive services'';
                            (ii) by striking ``paragraphs (3) and (4) 
                        of subsection (d)'' and inserting ``section 
                        134(c)(4)'';
                            (iii) by striking ``individual training 
                        accounts'' and inserting ``career enhancement 
                        accounts''; and
                            (iv) by striking ``subsection (d)(4)(G)'' 
                        and inserting ``section 134(c)(4)(G)'';
                    (C) in paragraph (1)(C), by striking ``subsection 
                (e)'' and inserting ``section 134(d)'';
                    (D) in paragraph (1)(D), by striking ``section 
                121(b)'' and inserting ``subsection (b)'';
                    (E) by amending paragraph (1)(E) to read as 
                follows:
                    ``(E) shall provide access to the information 
                described in section 15(e) of the Wagner-Peyser Act (29 
                U.S.C. 49l-2(e)).''; and
                    (F) in paragraph (2)(B)(ii)(II), by striking ``core 
                services'' and inserting ``work ready services''.
    (d) Certification and Funding of One-Stop Centers.--Section 121 (as 
amended by subsections (b) and (c)) is further amended by adding at the 
end the following new subsections:
    ``(g) Certification of One-Stop Centers.--
            ``(1) In general.--
                    ``(A) In general.--The State board shall establish 
                objective procedures and criteria for periodically 
                certifying one-stop centers for the purpose of awarding 
                the one-stop infrastructure funding described in 
                subsection (h).
                    ``(B) Criteria.--The criteria for certification 
                under this subsection shall include minimum standards 
                relating to the scope and degree of service integration 
                achieved by the centers involving the programs provided 
                by the one-stop partners, and how the centers ensure 
                that such providers meet the employment needs of local 
                employers and participants.
                    ``(C) Effect of certification.--One-stop centers 
                certified under this subsection shall be eligible to 
                receive the infrastructure grants authorized under 
                subsection (h).
            ``(2) Local boards.--Consistent with the criteria developed 
        by the State, the local board may develop additional criteria 
        of higher standards to respond to local labor market and 
        demographic conditions and trends.
    ``(h) One-Stop Infrastructure Funding.--
            ``(1) Partner contributions.--
                    ``(A) Provision of funds.--Notwithstanding any 
                other provision of law, as determined under 
                subparagraph (B), a portion of the Federal funds 
                provided to the State and areas within the State under 
                the Federal laws authorizing the one-stop partner 
                programs described in subsection (b)(1)(B) and 
                participating additional partner programs described in 
                (b)(2)(B) for a fiscal year shall be provided to the 
                Governor by such programs to carry out this subsection.
                    ``(B) Determination of governor.--
                            ``(i) In general.--Subject to subparagraph 
                        (C), the Governor, in consultation with the 
                        State board, shall determine the portion of 
                        funds to be provided under subparagraph (A) by 
                        each one-stop partner and in making such 
                        determination shall consider the proportionate 
                        use of the one-stop centers by each partner, 
                        the costs of administration for purposes not 
                        related to one-stop centers for each partner, 
                        and other relevant factors described in 
                        paragraph (3).
                            ``(ii) Special rule.--In those States where 
                        the State constitution places policy-making 
                        authority that is independent of the authority 
                        of the Governor in an entity or official with 
                        respect to the funds provided for adult 
                        education and literacy activities authorized 
                        under title II of this Act and for 
                        postsecondary career education activities 
                        authorized under the Carl D. Perkins Career and 
                        Technical Education Act, the determination 
                        described in clause (i) with respect to such 
                        programs shall be made by the Governor with the 
                        appropriate entity or official with such 
                        independent policy-making authority.
                            ``(iii) Appeal by one-stop partners.--The 
                        Governor shall establish a procedure for the 
                        one-stop partner administering a program 
                        described in subsection (b) to appeal a 
                        determination regarding the portion of funds to 
                        be contributed under this paragraph on the 
                        basis that such determination is inconsistent 
                        with the criteria described in the State plan 
                        or with the requirements of this paragraph. 
                        Such procedure shall ensure prompt resolution 
                        of the appeal.
                    ``(C) Limitations.--
                            ``(i) Provision from administrative 
                        funds.--The funds provided under this paragraph 
                        by each one-stop partner shall be provided only 
                        from funds available for the costs of 
                        administration under the program administered 
                        by such partner, and shall be subject to the 
                        limitations with respect to the portion of 
                        funds under such programs that may be used for 
                        administration.
                            ``(ii) Federal direct spending programs.--
                        Programs that are Federal direct spending under 
                        section 250(c)(8) of the Balanced Budget and 
                        Emergency Deficit Control Act of 1985 (2 U.S.C. 
                        900(c)(8)) shall not, for purposes of this 
                        paragraph, be required to provide an amount in 
                        excess of the amount determined to be 
                        equivalent to the proportionate use of the one-
                        stop centers by such programs in the State.
                            ``(iii) Native american programs.--Native 
                        American programs established under section 166 
                        shall not be subject to the provisions of this 
                        subsection. The method for determining the 
                        appropriate portion of funds to be provided by 
                        such Native American programs to pay for the 
                        costs of infrastructure of a one-stop center 
                        certified under subsection (g) shall be 
                        determined as part of the development of the 
                        memorandum of understanding under subsection 
                        (c) for the one-stop center and shall be stated 
                        in the memorandum.
            ``(2) Allocation by governor.--From the funds provided 
        under paragraph (1), the Governor shall allocate funds to local 
        areas in accordance with the formula established under 
        paragraph (3) for the purposes of assisting in paying the costs 
        of the infrastructure of One-Stop centers certified under 
        subsection (g).
            ``(3) Allocation formula.--The State board shall develop a 
        formula to be used by the Governor to allocate the funds 
        described in paragraph (1). The formula shall include such 
        factors as the State board determines are appropriate, which 
        may include factors such as the number of centers in the local 
        area that have been certified, the population served by such 
        centers, and the performance of such centers.
            ``(4) Costs of infrastructure.--For purposes of this 
        subsection, the term `costs of infrastructure' means the 
        nonpersonnel costs that are necessary for the general operation 
        of a one-stop center, including the rental costs of the 
        facilities, the costs of utilities and maintenance, and 
        equipment (including adaptive technology for individuals with 
        disabilities).
    ``(i) Other Funds.--
            ``(1) In general.--In addition to the funds provided to 
        carry out subsection (h), a portion of funds made available 
        under Federal law authorizing the one-stop partner programs 
        described in subsection (b)(1)(B) and participating partner 
        programs described in subsection (b)(2)(B), or the noncash 
        resources available under such programs shall be used to pay 
        the costs relating to the operation of the one-stop delivery 
        system that are not paid for from the funds provided under 
        subsection (h), to the extent not inconsistent with the Federal 
        law involved including--
                    ``(A) infrastructure costs that are in excess of 
                the funds provided under subsection (h);
                    ``(B) common costs that are in addition to the 
                costs of infrastructure; and
                    ``(C) the costs of the provision of work ready 
                services applicable to each program.
            ``(2) Determination and guidance.--The method for 
        determining the appropriate portion of funds and noncash 
        resources to be provided by each program under paragraph (1) 
        shall be determined as part of the memorandum of understanding 
        under subsection (c). The State board shall provide guidance to 
        facilitate the determination of appropriate allocation of the 
        funds and noncash resources in local areas.''.

SEC. 109. ELIGIBLE PROVIDERS OF TRAINING SERVICES.

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

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

    ``(a) Eligibility.--
            ``(1) In general.--The Governor, after consultation with 
        the State board, shall establish criteria and procedures 
        regarding the eligibility of providers of training services 
        described in section 134(c)(4) to receive funds provided under 
        section 133(b) for the provision of such training services.
            ``(2) Providers.--Subject to the provisions of this 
        section, to be eligible to receive the funds provided under 
        section 133(b) for the provision of training services, the 
        provider shall be--
                    ``(A) a postsecondary educational institution 
                that--
                            ``(i) is eligible to receive Federal funds 
                        under title IV of the Higher Education Act of 
                        1965 (20 U.S.C. 1070 et seq.); and
                            ``(ii) provides a program that leads to an 
                        associate degree, baccalaureate degree, or 
                        industry-recognized certification;
                    ``(B) an entity that carries out programs under the 
                Act of August 16, 1937 (commonly known as the `National 
                Apprenticeship Act'; 50 Stat. 664, chapter 663; 29 
                U.S.C. 50 et seq.); or
                    ``(C) another public or private provider of a 
                program of training services.
            ``(3) Inclusion in list of eligible providers.--A provider 
        described in subparagraph (A) or (C) of paragraph (2) shall 
        comply with the criteria and procedures established under this 
        section to be included on the list of eligible providers of 
        training services described in subsection (d)(1). A provider 
        described in paragraph (2)(B) shall be included on the list of 
        eligible providers of training services described in subsection 
        (d)(1) for so long as the provider remains certified by the 
        Department of Labor to carry out the programs described in 
        paragraph (2)(B).
    ``(b) Criteria.--
            ``(1) In general.--The criteria established pursuant to 
        subsection (a) shall take into account--
                    ``(A) the performance of providers of training 
                services with respect to the performance measures 
                described in section 136 and other matters for which 
                information is required under paragraph (2) and other 
                appropriate measures of performance outcomes for those 
                participants receiving training services under this 
                subtitle (taking into consideration the characteristics 
                of the population served and relevant economic 
                conditions);
                    ``(B) whether the training programs of such 
                providers relate to occupations that are in demand,
                    ``(C) the need to ensure access to training 
                services throughout the State, including any rural 
                areas;
                    ``(D) the ability of providers to offer programs 
                that lead to a degree or an industry-recognized 
                certification, certificate, or mastery;
                    ``(E) the information such providers are required 
                to report to State agencies with respect to other 
                Federal and State programs (other than the program 
                carried out under this subtitle), including one-stop 
                partner programs; and
                    ``(F) such other factors as the Governor determines 
                are appropriate to ensure the quality of services 
                provided, the accountability of providers, that the 
                one-stop centers will ensure that such providers meet 
                the needs of local employers and participants, and the 
                informed choice of participants under chapter 5.
            ``(2) Information.--The criteria established by the 
        Governor shall require that a provider of training services 
        submit appropriate, accurate, and timely information to the 
        State for purposes of carrying out subsection (d), with respect 
        to participants receiving training services under this subtitle 
        in the applicable program, including--
                    ``(A) information on degrees and industry-
                recognized certifications received by such 
                participants;
                    ``(B) information on costs of attendance for such 
                participants;
                    ``(C) information on the program completion rate 
                for such participants; and
                    ``(D) information on the performance of the 
                provider with respect to the performance measures 
                described in section 136 for such participants (taking 
                into consideration the characteristics of the 
                population served and relevant economic conditions), 
                which may include information specifying the percentage 
                of such participants who entered unsubsidized 
                employment in an occupation related to the program.
            ``(3) Renewal.--The criteria established by the Governor 
        shall also provide for biennial review and renewal of 
        eligibility under this section for providers of training 
        services.
            ``(4) Local criteria.--A local board in the State may 
        establish criteria in addition to the criteria established by 
        the Governor, or may require higher levels of performance than 
        required under the criteria established by the Governor, for 
        purposes of determining the eligibility of providers of 
        training services to receive funds described in subsection (a) 
        to provide the services in the local area involved.
            ``(5) Limitation.--In carrying out the requirements of this 
        subsection, no personally identifiable information regarding a 
        student, including Social Security number, student 
        identification number, or other identifier, may be disclosed 
        without the prior written consent of the parent or eligible 
        student in compliance with section 444 of the General Education 
        Provisions Act (20 U.S.C. 1232g).
    ``(c) Procedures.--The procedures established under subsection (a) 
shall identify the application process for a provider of training 
services to become eligible to receive funds under section 133(b) for 
the provision of training services, and identify the respective roles 
of the State and local areas in receiving and reviewing applications 
and in making determinations of eligibility based on the criteria 
established under this section. The procedures shall also establish a 
process for a provider of training services to appeal a denial or 
termination of eligibility under this section that includes an 
opportunity for a hearing and prescribes appropriate time limits to 
ensure prompt resolution of the appeal.
    ``(d) Information To Assist Participants in Choosing Providers.--In 
order to facilitate and assist participants under chapter 5 in choosing 
providers of training services, the Governor shall ensure that an 
appropriate list or lists of providers determined eligible under this 
section in the State, including information regarding the occupations 
in demand that relate to the training programs of such providers, is 
provided to the local boards in the State to be made available to such 
participants and to members of the public through the one-stop delivery 
system in the State. The accompanying information shall consist of 
information provided by providers described in subparagraphs (A) and 
(C) of subsection (a)(2) in accordance with subsection (b) (including 
information on receipt of degrees and industry-recognized 
certifications, and costs of attendance, for participants receiving 
training services under this subtitle in applicable programs) and such 
other information as the Secretary determines is appropriate. The list 
and the accompanying information shall be made available to such 
participants and to members of the public through the one-stop delivery 
system in the State.
    ``(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 enhancement accounts provided in 
another State.
    ``(g) Recommendations.--In developing the criteria, procedures, and 
information required under this section, the Governor shall solicit and 
take into consideration the recommendations of local boards and 
providers of training services within the State.
    ``(h) Opportunity To Submit Comments.--During the development of 
the criteria, procedures, requirements for information, and the list of 
eligible providers required under this section, the Governor shall 
provide an opportunity for interested members of the public, including 
representatives of business and labor organizations, to submit comments 
regarding such criteria, procedures, and information.
    ``(i) On-the-Job Training or Customized Training Exception.--
            ``(1) In general.--Providers of on-the-job training or 
        customized training shall not be subject to the requirements of 
        subsections (a) through (g).
            ``(2) Collection and dissemination of information.--A one-
        stop operator in a local area shall collect such performance 
        information from on-the-job training and customized training 
        providers as the Governor may require, determine whether the 
        providers meet such performance criteria as the Governor may 
        require, and disseminate information identifying providers that 
        meet the criteria as eligible providers, and the performance 
        information, through the one-stop delivery system. Providers 
        determined to meet the criteria shall be considered to be 
        identified as eligible providers of training services.''.

SEC. 110. ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES.

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

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

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

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

SEC. 111. YOUTH ACTIVITIES.

    (a) State Allotments.--Section 127 (29 U.S.C. 2852(a)) 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) Reservation of funds.--Of the amount 
                        appropriated under section 137(a) for each 
                        fiscal year, the Secretary shall reserve 25 
                        percent to provide youth challenge grants under 
                        section 169.
                            ``(ii) Limitation.--Notwithstanding clause 
                        (i), if the amount appropriated under section 
                        137(a) for a fiscal year exceeds 
                        $1,000,000,000, the Secretary shall reserve 
                        $250,000,000 to provide youth challenge grants 
                        under section 169.
                    ``(B) Outlying areas and native americans.--
                            ``(i) In general.--After determining the 
                        amount to be reserved under subparagraph (A), 
                        of the remainder of the amount appropriated 
                        under section 137(a) for each fiscal year the 
                        Secretary shall--
                                    ``(I) reserve not more than \1/4\ 
                                of one percent of such amount to 
                                provide assistance to the outlying 
                                areas to carry out youth activities and 
                                statewide workforce investment 
                                activities; and
                                    ``(II) reserve not more than 1 and 
                                \1/2\ percent of such amount to provide 
                                youth activities under section 166 
                                (relating to Native Americans).
                            ``(ii) Restriction.--The Republic of Palau 
                        shall cease to be eligible to receive funding 
                        under this subparagraph upon entering into an 
                        agreement for extension of United States 
                        educational assistance under the Compact of 
                        Free Association (approved by the Compact of 
                        Free Association Amendments Act of 2003 (Public 
                        Law 108-188)) after the date of enactment of 
                        the Workforce Investment Improvement Act of 
                        2007.
                    ``(C) States.--
                            ``(i) In general.--Of the remainder of the 
                        amount appropriated under section 137(a) for a 
                        fiscal year that is available after determining 
                        the amounts to be reserved under subparagraphs 
                        (A) and (B), the Secretary shall allot--
                                    ``(I) the amount of the remainder 
                                that is less than or equal to the total 
                                amount that was allotted to States for 
                                fiscal year 2007 under section 
                                127(b)(1)(C) of this Act (as in effect 
                                on the day before the date of enactment 
                                of the Workforce Investment Improvement 
                                Act of 2007) in accordance with the 
                                requirements of such section 
                                127(b)(1)(C); and
                                    ``(II) the amount of the remainder, 
                                if any, in excess of the amount 
                                referred to in subclause (I) in 
                                accordance with clause (ii).
                            ``(ii) Formulas for excess funds.--Subject 
                        to clauses (iii) and (iv), of the amounts 
                        described in clause (i)(II)--
                                    ``(I) 33\1/3\ percent shall be 
                                allotted on the basis of the relative 
                                number of individuals in the civilian 
                                labor force who are ages 16 through 19 
                                in each State, compared to the total 
                                number of individuals in the civilian 
                                labor force who are ages 16 through 19 
                                in all States;
                                    ``(II) 33\1/3\ percent shall be 
                                allotted on the basis of the relative 
                                number of unemployed individuals in 
                                each State, compared to the total 
                                number of unemployed individuals in all 
                                States; and
                                    ``(III) 33\1/3\ percent shall be 
                                allotted on the basis of the relative 
                                number of disadvantaged youth who are 
                                ages 16 through 21 in each State, 
                                compared to the total number of 
                                disadvantaged youth who are ages 16 
                                through 21 in all States.
                            ``(iii) Minimum and maximum percentages.--
                        The Secretary shall ensure that no State shall 
                        receive an allotment for a fiscal year that is 
                        less than 90 percent or greater than 130 
                        percent of the allotment percentage of that 
                        State for the preceding fiscal year.
                            ``(iv) Small state minimum allotment.--
                        Subject to clause (iii), the Secretary shall 
                        ensure that no State shall receive an allotment 
                        under this paragraph that is less than \3/10\ 
                        of 1 percent of the amount available under 
                        subparagraph (A).
            ``(2) Definitions.--For the purposes of paragraph (1), the 
        following definitions apply:
                    ``(A) Allotment percentage.--The term `allotment 
                percentage', used with respect to fiscal year 2008 or a 
                subsequent fiscal year, means a percentage of the 
                remainder described in paragraph (1)(C)(i) that is 
                received through an allotment made under this 
                subsection for the fiscal year. The term, with respect 
                to fiscal year 2007, 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 Improvement Act of 2007) that is 
                received by the State involved for fiscal year 2007.
                    ``(B) Disadvantaged youth.--The term `disadvantaged 
                youth' means an individual who is age 16 through 21 who 
                received an income, or is a member of a family that 
                received a total family income, that, in relation to 
                family size, does not exceed the poverty line.
            ``(3) Special rule.--For purposes of the formulas specified 
        in paragraph (1)(C), the Secretary shall, as appropriate and to 
        the extent practicable, exclude college students and members of 
        the Armed Forces from the determination of the number of 
        disadvantaged youth.'';
            (3) in subsection (c)--
                    (A) by amending paragraph (2) to read as follows:
            ``(2) Amount.--The amount available for reallotment for a 
        program year is equal to the amount by which the unexpended 
        balance at the end of the program year prior to the program 
        year for which the determination is made exceeds 30 percent of 
        the total amount of funds available to the State under this 
        section during such prior program year (including amounts 
        allotted to the State in all prior program years that remained 
        available). For purposes of this paragraph, the expended 
        balance is the amount that is the difference between--
                    ``(A) the total amount of funds available to the 
                State under this section during the program year prior 
                to the program year for which the determination is made 
                (including amounts allotted to the State in all prior 
                program years that remained available); and
                    ``(B) the accrued expenditures during such prior 
                program year.'';
                    (B) in paragraph (3)--
                            (i) by striking ``for the prior program 
                        year'' and inserting ``for the program year in 
                        which the determination is made''; and
                            (ii) by striking ``such prior program 
                        year'' and inserting ``such program year'';
                    (C) by amending paragraph (4) to read as follows:
            ``(4) Eligibility.--For purposes of this subsection, an 
        eligible State means a State which does not have an amount 
        available for reallotment under paragraph (2) for the program 
        year for which the determination under paragraph (2) is 
        made.''; and
                    (D) in paragraph (5), by striking ``obligation'' 
                and inserting ``accrued expenditure''.
    (b) Within State Allocations.--
            (1) Reservation for statewide activities.--Section 128(a) 
        is amended to read as follows:
    ``(a) Reservation for Statewide Activities.--
            ``(1) In general.--The Governor of a State shall reserve 
        not more than 10 percent of the amount allotted to the State 
        under section 127(a)(1)(C) for a fiscal year for statewide 
        activities.
            ``(2) Use of funds.--Regardless of whether the amounts are 
        allotted under section 127(a)(1)(C) and reserved under 
        paragraph (1) or allotted under section 132 and reserved under 
        section 133(a), the Governor may use the reserved amounts to 
        carry out statewide youth activities under section 129(b) or 
        statewide employment and training activities under section 
        133.''.
            (2) Within state allocations.--Section 128(b) is amended to 
        read as follows:
    ``(b) Within State Allocation.--
            ``(1) In general.--Of the amounts allotted to the State 
        under section 127(a)(1)(C) and not reserved under subsection 
        (a)(1)--
                    ``(A) not less than 80 percent of such amounts 
                shall be allocated by the Governor to local areas in 
                accordance with paragraph (2); and
                    ``(B) not more than 20 percent of such amounts 
                shall be allocated by the Governor to local areas in 
                accordance with paragraph (3).
            ``(2) Established formula.--
                    ``(A) In general.--Of the amounts described in 
                paragraph (1)(A), the Governor shall allocate--
                            ``(i) 33\1/3\ percent shall be allotted on 
                        the basis of the relative number of individuals 
                        in the civilian labor force who are ages 16 
                        through 19 in each local area, compared to the 
                        total number of individuals in the civilian 
                        labor force who are ages 16 through 19 in all 
                        local areas in the State;
                            ``(ii) 33\1/3\ percent shall be allotted on 
                        the basis of the relative number of unemployed 
                        individuals in each local area, compared to the 
                        total number of unemployed individuals in all 
                        local areas in the State; and
                            ``(iii) 33\1/3\ percent on the basis of the 
                        relative number of disadvantaged youth who are 
                        ages 16 through 21 in each local area, compared 
                        to the total number of disadvantaged youth who 
                        are ages 16 through 21 in all local areas in 
                        the State.
                    ``(B) Minimum and maximum percentages.--The 
                Governor shall ensure that no local area shall receive 
                an allocation for a fiscal year under this paragraph 
                that is less than 90 percent or greater than 130 
                percent of the allocation percentage of the local area 
                for the preceding fiscal year.
                    ``(C) Definitions.--
                            ``(i) Allocation percentage.--For purposes 
                        of this paragraph, the term `allocation 
                        percentage', used with respect to fiscal year 
                        2008 or a subsequent fiscal year, means a 
                        percentage of the amount described in 
                        paragraph(1)(A) that is received through an 
                        allocation made under this paragraph for the 
                        fiscal year. The term, with respect to fiscal 
                        year 2007, 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 
                        Improvement Act of 2007) that is received by 
                        the local area involved for fiscal year 2007.
                            ``(ii) Disadvantaged youth.--The term 
                        `disadvantaged youth' means an individual who 
                        is age 16 through 21 who received an income, or 
                        is a member of a family that received a total 
                        family income, that, in relation to family 
                        size, does not exceed the poverty line.
            ``(3) Youth discretionary allocation.--The Governor shall 
        allocate to local areas the amounts described in paragraph 
        (1)(B) in accordance with such demographic and economic factors 
        as the Governor, after consultation with the State board and 
        local boards, determines are appropriate.
            ``(4) Local administrative cost limit.--
                    ``(A) In general.--Of the amounts allocated to a 
                local area under this subsection for a fiscal year, not 
                more than 10 percent of the amount may be used by the 
                local boards for the administrative costs of carrying 
                out local workforce investment activities under this 
                chapter or chapter 5.
                    ``(B) Use of funds.--Funds made available for 
                administrative costs under subparagraph (A) may be used 
                for the administrative costs of any of the local 
                workforce investment activities described in this 
                chapter or chapter 5, regardless of whether the funds 
                were allocated under this subsection or section 
                133(b).''.
            (3) Reallocation.--Section 128(c) (29 U.S.C. 2853(c)) is 
        amended--
                    (A) in paragraph (1), by striking ``paragraph 
                (2)(A) or (3) of'';
                    (B) by amending paragraph (2) to read as follows:
            ``(2) Amount.--The amount available for reallocation for a 
        program year is equal to the amount by which the unexpended 
        balance at the end of the program year prior to the program 
        year for which the determination is made exceeds 30 percent of 
        the total amount of funds available to the local area under 
        this section during such prior program year, (including amounts 
        allotted to the local area in prior program years that remain 
        available). For purposes of this paragraph, the unexpended 
        balance is the amount that is the difference between--
                    ``(A) the total amount of funds available to the 
                local area under this section during the program year 
                prior to the program year for which the determination 
                is made (including amounts allocated to the local area 
                in all prior program years that remained available); 
                and
                    ``(B) the accrued expenditures during such prior 
                program year.'';
                    (C) in paragraph (3)--
                            (i) by striking ``subsection (b)(3)'' the 
                        first two places it appears and inserting 
                        ``subsection (b)'';
                            (ii) by striking ``the prior program year'' 
                        and inserting ``the program year in which the 
                        determination is made'';
                            (iii) by striking ``such prior program 
                        year'' and inserting ``such program year''; and
                            (iv) by striking the last sentence; and
                    (D) by amending paragraph (4) to read as follows:
            ``(4) Eligibility.--For purposes of this subsection, an 
        eligible local area means a local area which does not have an 
        amount available for reallocation under paragraph (2) for the 
        program year for which the determination under paragraph (2) is 
        made.''.
    (c) Youth Participant Eligibility.--Section 129(a) (29 U.S.C. 
2854(a)) is amended to read as follows:
    ``(a) Youth Participant Eligibility.--
            ``(1) In general.--The individuals participating in 
        activities carried out under this chapter by a local area 
        during any program year shall be individuals who, at the time 
        the eligibility determination is made, are--
                    ``(A) not younger than age 16 or older than age 24; 
                and
                    ``(B) one or more of the following:
                            ``(i) school dropouts;
                            ``(ii) recipients of a secondary school 
                        diploma, General Educational Development 
                        credential (GED), or other State-recognized 
                        equivalent (including recognized alternative 
                        standards for individuals with disabilities) 
                        who are deficient in basic skills and not 
                        attending any school;
                            ``(iii) court-involved youth attending an 
                        alternative school;
                            ``(iv) youth in foster care or who have 
                        been in foster care; or
                            ``(v) in school youth who are low-income 
                        individuals and one or more of the following:
                                    ``(I) Deficient in literacy skills.
                                    ``(II) Homeless, runaway, or foster 
                                children.
                                    ``(III) Pregnant or parents.
                                    ``(IV) Offenders.
                                    ``(V) Individuals who require 
                                additional assistance to complete an 
                                educational program, or to secure and 
                                hold employment.
            ``(2) Priority for school dropouts.--A priority in the 
        provision of services under this chapter shall be given to 
        individuals who are school dropouts.
            ``(3) Limitations on activities for in-school youth.--
                    ``(A) Percentage of funds.--For any program year, 
                not more than 50 percent of the funds available for 
                statewide activities under subsection (b), and not more 
                than 50 percent of funds available to local areas under 
                subsection (c), may be used to provide activities for 
                in-school youth meeting the requirements of paragraph 
                (1)(B)(v).
                    ``(B) 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 50 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.
                    ``(C) Non-school hours required.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), activities carried out under this 
                        chapter for in-school youth meeting the 
                        requirements of paragraph (1)(B)(v) shall only 
                        be carried out in non-school hours or periods 
                        when school is not in session (such as before 
                        and after school or during recess).
                            ``(ii) Exception.--The requirements of 
                        clause (i) shall not apply to activities 
                        carried out for in-school youth meeting the 
                        requirements of paragraph (1)(B)(v) during 
                        school hours that are part of a program that 
                        has demonstrated effectiveness in high school 
                        youth attaining diplomas.
            ``(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.''.
    (d) Statewide Youth Activities.--Section 129(b) (29 U.S.C. 2854(b)) 
is amended to read as follows:
    ``(b) Statewide Activities.--
            ``(1) In general.--Funds reserved by a Governor for a State 
        as described in sections 128(a) and 133(a)(1) may be used for 
        statewide activities including--
                    ``(A) additional assistance to local areas that 
                have high concentrations of eligible youth;
                    ``(B) supporting the provision of work ready 
                services described in section 134(c)(2) in the one-stop 
                delivery system;
                    ``(C) conducting evaluations under section 136(e) 
                of activities authorized under this chapter and chapter 
                5 in coordination with evaluations carried out by the 
                Secretary under section 172, research, and 
                demonstration projects;
                    ``(D) providing incentive grants to local areas for 
                regional cooperation among local boards (including 
                local boards in a designated region as described in 
                section 116(c)), for local coordination of activities 
                carried out under this Act, and for exemplary 
                performance by local areas on the local performance 
                measures;
                    ``(E) providing technical assistance and capacity 
                building to local areas, one-stop operators, one-stop 
                partners, and eligible providers, including the 
                development and training of staff, the development of 
                exemplary program activities, and the provision of 
                technical assistance to local areas that fail to meet 
                local performance measures;
                    ``(F) operating a fiscal and management 
                accountability system under section 136(f); and
                    ``(G) carrying out monitoring and oversight of 
                activities under this chapter and chapter 5.
            ``(2) Limitation.--Not more than 5 percent of the funds 
        allotted under section 127(b) shall be used by the State for 
        administrative activities carried out under this subsection and 
        section 133(a).
            ``(3) Prohibition.--No funds described in this subsection 
        or in section 134(a) may be used to develop or implement 
        education curricula for school systems in the State.''.
    (e) Local Elements and Requirements.--
            (1) Program design.--Section 129(c)(1) (29 U.S.C. 2854(c) 
        (1)) is amended--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``paragraph (2)(A) or (3), as appropriate, 
                of'';
                    (B) in subparagraph (B), by inserting ``are 
                directly linked to one or more of the performance 
                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 so 
                        redesignated) the following:
                            ``(i) activities leading to the attainment 
                        of a secondary school diploma, General 
                        Educational Development credential (GED), or 
                        other State-recognized equivalent (including 
                        recognized alternative standards for 
                        individuals with disabilities);'';
                            (iii) in clause (ii) (as so redesignated), 
                        by inserting ``and advanced training'' after 
                        ``opportunities'';
                            (iv) in clause (iii) (as so redesignated), 
                        by inserting ``that lead to the attainment of 
                        recognized credentials'' after ``learning''; 
                        and
                            (v) by amending clause (v) (as so 
                        redesignated) to read as follows:
                            ``(v) effective connections to employers, 
                        including small employers, in sectors of the 
                        local and regional labor markets experiencing 
                        high growth in employment opportunities.''.
            (2) Program elements.--Section 129(c)(2) (29 U.S.C. 
        2854(c)(2)) is amended--
                    (A) in subparagraph (A), by striking ``secondary 
                school, including dropout prevention strategies'' and 
                inserting ``secondary school diploma, General 
                Educational Development credential (GED), or other 
                State-recognized equivalent (including recognized 
                alternative standards for individuals with 
                disabilities), including dropout prevention 
                strategies'';
                    (B) in subparagraph (I), by striking ``and'' at the 
                end;
                    (C) in subparagraph (J), by striking the period at 
                the end and inserting a semicolon; and
                    (D) by adding at the end the following:
                    ``(K) on-the-job training opportunities; and
                    ``(L) financial literacy skills.''.
            (3) Additional requirements.--Section 129(c)(3)(A) (29 
        U.S.C. 2854(c)(3)(A)) is amended in the matter preceding clause 
        (i) by striking ``or applicant who meets the minimum income 
        criteria to be considered an eligible youth''.
            (4) Priority and exceptions.--Section 129(c) (29 U.S.C. 
        2854(c)) is further amended--
                    (A) by striking paragraphs (4) and (5) and 
                redesignating paragraphs (6) through (8) as paragraphs 
                (4) through (6), respectively; and
                    (B) in paragraph (5) (as so redesignated), by 
                striking ``youth councils'' and inserting ``local 
                boards''.

SEC. 112. COMPREHENSIVE PROGRAMS FOR ADULTS.

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

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

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

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

    (b) General Authorization.--Section 131 (29 U.S.C. 2861) is 
amended--
            (1) by striking ``paragraphs (1)(B) and (2)(B) of''; and
            (2) by striking ``, and dislocated workers,''.
    (c) State Allotments.--Section 132 (29 U.S.C. 2862) is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) In General.--The Secretary shall--
            ``(1) reserve 7.5 percent of the amount appropriated under 
        section 137 for a fiscal year, of which--
                    ``(A) not less than 85 percent shall be used for 
                national dislocated worker grants under section 173;
                    ``(B) not more than 10 percent may be used for 
                demonstration projects under section 171; and
                    ``(C) not more than 5 percent may be used to 
                provide technical assistance under section 170; and
            ``(2) make allotments from 92.5 percent of the amount 
        appropriated under section 137 for a fiscal year in accordance 
        with subsection (b).'';
            (2) by amending subsection (b) to read as follows:
    ``(b) Allotment Among States for Adult Employment and Training 
Activities.--
            ``(1) Reservation for outlying areas.--
                    ``(A) In general.--From the amount made available 
                under subsection (a)(2) for a fiscal year, the 
                Secretary shall reserve not more than \1/4\ of 1 
                percent to provide assistance to outlying areas to 
                carry out employment and training activities for adults 
                and statewide workforce investment activities.
                    ``(B) Restriction.--The Republic of Palau shall 
                cease to be eligible to receive funding under this 
                paragraph upon entering into an agreement for extension 
                of United States educational assistance under the 
                Compact of Free Association (approved by the Compact of 
                Free Association Amendments Act of 2003 (Public Law 
                108-188)) after the date of enactment of the Workforce 
                Investment Improvement Act of 2007.
            ``(2) States.--Subject to paragraph (5), of the remainder 
        of the amount referred to under subsection (a)(2) for a fiscal 
        year that is available after determining the amount to be 
        reserved under paragraph (1), the Secretary shall allot to the 
        States for employment and training activities for adults and 
        for statewide workforce investment activities--
                    ``(A) 26 percent in accordance with paragraph (3); 
                and
                    ``(B) 74 percent in accordance with paragraph (4).
            ``(3) Base formula.--
                    ``(A) Fiscal year 2008.--
                            ``(i) In general.--Subject to clause (ii), 
                        the amount referred to in paragraph (2)(A) 
                        shall be allotted for fiscal year 2008 on the 
                        basis of allotment percentage of each State 
                        under section 6 of the Wagner-Peyser Act for 
                        fiscal year 2007.
                            ``(ii) Excess amounts.--If the amount 
                        referred to in paragraph (2)(A) for fiscal year 
                        2008 exceeds the amount that was available for 
                        allotment to the States under the Wagner-Peyser 
                        Act for fiscal year 2007, such excess amount 
                        shall be allotted on the basis of the relative 
                        number of individuals in the civilian labor 
                        force in each State, compared to the total 
                        number of individuals in the civilian labor 
                        force in all States, adjusted to ensure that no 
                        State receives less than \3/10\ of one percent 
                        of such excess amount.
                            ``(iii) Definition.--For purposes of this 
                        subparagraph, the term `allotment percentage' 
                        means the percentage of the amounts allotted to 
                        States under section 6 of the Wagner-Peyser Act 
                        that is received by the State involved for 
                        fiscal year 2007.
                    ``(B) Fiscal years 2009 and thereafter.--
                            ``(i) In general.--Subject to clause (ii), 
                        the amount referred to in paragraph(2)(A) shall 
                        be allotted for fiscal year 2009 and each 
                        fiscal year thereafter on the basis of the 
                        allotment percentage of each State under this 
                        paragraph for the preceding fiscal year.
                            ``(ii) Excess amounts.--If the amount 
                        referred to in paragraph (2)(A) for fiscal year 
                        2009 or any fiscal year thereafter exceeds the 
                        amount that was available for allotment under 
                        this paragraph for the prior fiscal year, such 
                        excess amount shall be allotted on the basis of 
                        the relative number of individuals in the 
                        civilian labor force in each State, compared to 
                        the total number of individuals in the civilian 
                        labor force in all States, adjusted to ensure 
                        that no State receives less than \3/10\ of one 
                        percent of such excess amount.
                            ``(iii) Definition.--For purposes of this 
                        subparagraph, the term `allotment percentage' 
                        means the percentage of the amounts allotted to 
                        States under this paragraph in a fiscal year 
                        that is received by the State involved for such 
                        fiscal year.
            ``(4) Consolidated formula.--
                    ``(A) In general.--Subject to subparagraphs (B) and 
                (C), of the amount referred to in paragraph (2)(B)--
                            ``(i) 60 percent shall be allotted on the 
                        basis of the relative number of unemployed 
                        individuals in each State, compared to the 
                        total number of unemployed individuals in all 
                        States;
                            ``(ii) 25 percent shall be allotted on the 
                        basis of the relative excess number of 
                        unemployed individuals in each State, compared 
                        to the total excess number of unemployed 
                        individuals in all States; and
                            ``(iii) 15 percent shall be allotted on the 
                        basis of the relative number of disadvantaged 
                        adults in each State, compared to the total 
                        number of disadvantaged adults in all States.
                    ``(B) Minimum and maximum percentages.--
                            ``(i) Minimum percentage.--The Secretary 
                        shall ensure that no State shall receive an 
                        allotment under this paragraph for a fiscal 
                        year that is less than 90 percent of the 
                        allotment percentage of the State under this 
                        paragraph for the preceding fiscal year.
                            ``(ii) Maximum percentage.--Subject to 
                        clause (i), the Secretary shall ensure that no 
                        State shall receive an allotment for a fiscal 
                        year under this paragraph that is more than 130 
                        percent of the allotment of the State under 
                        this paragraph for the preceding fiscal year.
                    ``(C) Small state minimum allotment.--Subject to 
                subparagraph (B), the Secretary shall ensure that no 
                State shall receive an allotment under this paragraph 
                that is less than \2/10\ of 1 percent of the amount 
                available under subparagraph (A).
                    ``(D) Definitions.--For the purposes of this 
                paragraph:
                            ``(i) Allotment percentage.--The term 
                        `allotment percentage', used with respect to 
                        fiscal year 2008 or a subsequent fiscal year, 
                        means a percentage of the amounts described in 
                        paragraph (2)(B) that is received through an 
                        allotment made under this paragraph for the 
                        fiscal year. The term, with respect to fiscal 
                        year 2007, 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 Improvement Act of 
                        2007) and under reemployment service grants 
                        received by the State involved for fiscal year 
                        2007.
                            ``(ii) Disadvantaged adult.--The term 
                        `disadvantaged adult' means an individual who 
                        is age 22 through 72 who received an income, or 
                        is a member of a family that received a total 
                        family income, that, in relation to family 
                        size, does not exceed the poverty line.
                            ``(iii) Excess number.--The term `excess 
                        number' means, used with respect to the excess 
                        number of unemployed individuals within a 
                        State, the number that represents the number of 
                        unemployed individuals in excess of 4\1/2\ 
                        percent of the civilian labor force in the 
                        State.
            ``(5) Adjustments in allotments based on differences with 
        unconsolidated formulas.--
                    ``(A) In general.--The Secretary shall ensure that 
                for any fiscal year no State has an allotment 
                difference, as defined in subparagraph (C), that is 
                less than zero. The Secretary shall adjust the amounts 
                allotted to the States under this subsection in 
                accordance with subparagraph (B) if necessary to carry 
                out this subparagraph.
                    ``(B) Adjustments in allotments.--
                            ``(i) Redistribution of excess amounts.--
                                    ``(I) In general.--If necessary to 
                                carry out subparagraph (A), the 
                                Secretary shall reduce the amounts that 
                                would be allotted under paragraphs (3) 
                                and (4) to States that have an excess 
                                allotment difference, as defined in 
                                subclause (II), by the amount of such 
                                excess, and use such amounts to 
                                increase the allotments to States that 
                                have an allotment difference less than 
                                zero.
                                    ``(II) Excess amounts.--For 
                                purposes of subclause (I), the term 
                                `excess' allotment difference means an 
                                allotment difference for a State that 
                                is--
                                            ``(aa) in excess of 3 
                                        percent of the amount described 
                                        in subparagraph (C)(i)(II); or
                                            ``(bb) in excess of a 
                                        percentage established by the 
                                        Secretary that is greater than 
                                        3 percent of the amount 
                                        described in subparagraph 
                                        (C)(i)(II) if the Secretary 
                                        determines that such greater 
                                        percentage is sufficient to 
                                        carry out subparagraph (A).
                            ``(ii) Use of amounts available under 
                        national reserve account.--If the funds 
                        available under clause (i) are insufficient to 
                        carry out subparagraph (A), the Secretary shall 
                        use funds reserved under section 132(a) in such 
                        amounts as are necessary to increase the 
                        allotments to States to meet the requirements 
                        of subparagraph (A). Such funds shall be used 
                        in the same manner as the States use the other 
                        funds allotted under this subsection.
                    ``(C) Definition of allotment difference.--
                            ``(i) In general.--For purposes of this 
                        paragraph, the term `allotment difference' 
                        means the difference between--
                                    ``(I) the total amount a State 
                                would receive of the amounts available 
                                for allotment under subsection (b)(2) 
                                for a fiscal year pursuant to 
                                paragraphs (3) and (4); and
                                    ``(II) the total amount the State 
                                would receive of the amounts available 
                                for allotment under subsection (b)(2) 
                                for the fiscal year if such amounts 
                                were allotted pursuant to the 
                                unconsolidated formulas (applied as 
                                described in clause (iii)) that were 
                                used in allotting funds for fiscal year 
                                2007.
                            ``(ii) Unconsolidated formulas.--For 
                        purposes of clause (i), the unconsolidated 
                        formulas are:
                                    ``(I) The requirements for the 
                                allotment of funds to the States 
                                contained in section 132(b)(1)(B) of 
                                this Act (as in effect on the day 
                                before the date of enactment of the 
                                Workforce Investment Improvement Act of 
                                2007) that were applicable to the 
                                allotment of funds under such section 
                                for fiscal year 2007.
                                    ``(II) The requirements for the 
                                allotment of funds to the States 
                                contained in section 132(b)(2)(B) of 
                                this Act (as in effect on the day 
                                before the date of enactment of the 
                                Workforce Investment Improvement Act of 
                                2007) that were applicable to the 
                                allotment of funds under such section 
                                for fiscal year 2007.
                                    ``(III) The requirements for the 
                                allotment of funds to the States that 
                                were contained in section 6 of the 
                                Wagner-Peyser Act (as in effect on the 
                                day before the date of enactment of the 
                                Workforce Investment Improvement Act of 
                                2007) that were applicable to the 
                                allotment of funds under such Act for 
                                fiscal year 2007.
                                    ``(IV) The requirements for the 
                                allotment of funds to the States that 
                                were established by the Secretary for 
                                Reemployment Services Grants that were 
                                applicable to the allotment of funds 
                                for such grants for fiscal year 2007.
                            ``(iii) Proportionate application of 
                        unconsolidated formulas based on fiscal year 
                        2007.--In calculating the amount under clause 
                        (i)(II), each of the unconsolidated formulas 
                        identified in clause (ii) shall be applied, 
                        respectively, only to the proportionate share 
                        of the total amount of funds available for 
                        allotment under subsection (b)(2) for a fiscal 
                        year that is equal to the proportionate share 
                        to which each of the unconsolidated formulas 
                        applied with respect to the total amount of 
                        funds allotted to the States under all of the 
                        unconsolidated formulas in fiscal year 2007.
                            ``(iv) Rule of construction.--The amounts 
                        used to adjust the allotments to a State under 
                        subparagraph (B) for a fiscal year shall not be 
                        included in the calculation of the amounts 
                        under clause (i) for a subsequent fiscal year, 
                        including the calculation of allocation 
                        percentages for a preceding fiscal year 
                        applicable to paragraphs (3) and (4) and to the 
                        unconsolidated formulas described in clause 
                        (ii).''; and
            (3) in subsection (c)--
                    (A) by amending paragraph (2) to read as follows:
            ``(2) Amount.--The amount available for reallotment for a 
        program year is equal to the amount by which the unexpended 
        balance at the end of the program year prior to the program 
        year for which the determination is made exceeds 30 percent of 
        the total amount of funds available to the State under this 
        section during such prior program year (including amounts 
        allotted to the State in all prior program years that remained 
        available). For purposes of this paragraph, the expended 
        balance is the amount that is the difference between--
                    ``(A) the total amount of funds available to the 
                State under this section during the program year prior 
                to the program year for which the determination is made 
                (including amounts allotted to the State in all prior 
                program years that remained available); and
                    ``(B) the accrued expenditures during such prior 
                program year.'';
                    (B) in paragraph (3)--
                            (i) by striking ``for the prior program 
                        year'' and inserting ``for the program year in 
                        which the determination is made''; and
                            (ii) by striking ``such prior program 
                        year'' and inserting ``such program year'';
                    (C) by amending paragraph (4) to read as follows:
            ``(4) Eligibility.--For purposes of this subsection, an 
        eligible State means a State that does not have an amount 
        available for reallotment under paragraph (2) for the program 
        year for which the determination under paragraph (2) is 
        made.''; and
                    (D) in paragraph (5), by striking ``obligation'' 
                and inserting ``accrued expenditure''.
    (d) Within State Allocations.--Section 133 (29 U.S.C. 2863) is 
amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) Reservation for Statewide Activities.--The Governor of a 
State may reserve up to 40 percent of the total amount allotted to the 
State under section 132 for a fiscal year to carry out the statewide 
activities described in section 134(a).'';
            (2) by amending subsection (b) to read as follows:
    ``(b) Allocations to Local Areas.--
            ``(1) In general.--Of the amounts allotted to the State 
        under section 132(b)(2) and not reserved under subsection (a)--
                    ``(A) 85 percent of such amounts shall be allocated 
                by the Governor to local areas in accordance with 
                paragraph (2); and
                    ``(B) 15 percent of such amounts shall be allocated 
                by the Governor to local areas in accordance with 
                paragraph (3).
            ``(2) Established formula.--
                    ``(A) In general.--Of the amounts described in 
                paragraph (1)(A), the Governor shall allocate--
                            ``(i) 60 percent on the basis of the 
                        relative number of unemployed individuals in 
                        each local area, compared to the total number 
                        of unemployed individuals in all local areas in 
                        the State;
                            ``(ii) 25 percent on the basis of the 
                        relative excess number of unemployed 
                        individuals in each local area, compared to the 
                        total excess number of unemployed individuals 
                        in all local areas in the State; and
                            ``(iii) 15 percent shall be allotted on the 
                        basis of the relative number of disadvantaged 
                        adults in each local area, compared to the 
                        total number of disadvantaged adults in all 
                        local areas in the State.
                    ``(B) Minimum and maximum percentages.--The 
                Governor shall ensure that no local area shall receive 
                an allocation for a fiscal year under this paragraph 
                that is less than 90 percent or greater than 130 
                percent of the allocation percentage of the local area 
                for the preceding fiscal year.
                    ``(C) Definitions.--
                            ``(i) Allocation percentage.--The term 
                        `allocation percentage', used with respect to 
                        fiscal year 2008 or a subsequent fiscal year, 
                        means a percentage of the amount described in 
                        paragraph (1)(A) that is received through an 
                        allocation made under this paragraph for the 
                        fiscal year. The term, with respect to fiscal 
                        year 2007, 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 
                        Improvement Act of 2007) that is received by 
                        the local area involved for fiscal year 2007.
                            ``(ii) Disadvantaged adult.--The term 
                        `disadvantaged adult' means an individual who 
                        is age 22 through 72 who received an income, or 
                        is a member of a family that received a total 
                        family income, that, in relation to family 
                        size, does not exceed the poverty line.
                            ``(iii) Excess number.--The term `excess 
                        number' means, used with respect to the excess 
                        number of unemployed individuals within a local 
                        area, the number that represents the number of 
                        unemployed individuals in excess of 4.5 percent 
                        of the civilian labor force in the local area.
            ``(3) Discretionary allocation.--The Governor shall 
        allocate to local areas the amounts described in paragraph 
        (1)(B) based on a formula developed in consultation with the 
        State board and local boards. Such formula shall be objective 
        and geographically equitable and may include such demographic 
        and economic factors as the Governor, after consultation with 
        the State board and local boards, determines are appropriate.
            ``(4) Local administrative cost limit.--
                    ``(A) In general.--Of the amounts allocated to a 
                local area under this subsection and section 128(b) for 
                a fiscal year, not more than 10 percent of the amount 
                may be used by the local boards for the administrative 
                costs of carrying out local workforce investment 
                activities under this chapter or chapter 4.
                    ``(B) Use of funds.--Funds made available for 
                administrative costs under subparagraph (A) may be used 
                for the administrative costs of any of the local 
                workforce investment activities described in this 
                chapter or chapter 4, regardless of whether the funds 
                were allocated under this subsection or section 
                128(b).'';
            (3) in subsection (c)--
                    (A) in paragraph (1), by striking ``paragraph 
                (2)(A) or (3) of'';
                    (B) by amending paragraph (2) to read as follows:
            ``(2) Amount.--The amount available for reallocation for a 
        program year is equal to the amount by which the unexpended 
        balance at the end of the program year prior to the program 
        year for which the determination is made exceeds 30 percent of 
        the total amount of funds available to the local area under 
        this section during such prior program year (including amounts 
        allotted to the local area in prior program years that remain 
        available). For purposes of this paragraph, the unexpended 
        balance is the amount that is the difference between--
                    ``(A) the total amount of funds available to the 
                local area under this section during the program year 
                prior to the program year for which the determination 
                is made (including amounts allocated to the local area 
                in all prior program years that remained available); 
                and
                    ``(B) the accrued expenditures during such prior 
                program year.'';
                    (C) by amending paragraph (3)--
                            (i) by striking ``subsection (b)(3)'' the 
                        first two places it appears and inserting 
                        ``subsection (b)'';
                            (ii) by striking ``the prior program year'' 
                        and inserting ``the program year in which the 
                        determination is made'';
                            (iii) by striking ``such prior program 
                        year'' and inserting ``such program year''; and
                            (iv) by striking the last sentence; and
                    (D) by amending paragraph (4) to read as follows:
            ``(4) Eligibility.--For purposes of this subsection, an 
        eligible local area means a local area which does not have an 
        amount available for reallocation under paragraph (2) for the 
        program year for which the determination under paragraph (2) is 
        made.''.
    (e) Use of Funds for Employment and Training Activities.--
            (1) Statewide employment and training activities.--Section 
        134(a) (29 U.S.C. 2864(a) is amended to read as follows:
            ``(1) In general.--
                    ``(A) Required use of funds.--Not less than 60 
                percent of the funds reserved by a Governor under 
                section 133(a) shall be used to support One-Stop 
                delivery systems and the provision of work ready 
                services, and, in addition, may be used to support the 
                provision of discretionary one-step delivery services, 
                in local areas, consistent with the local plan, through 
                one-stop delivery systems by distributing funds to 
                local areas in accordance with subparagraph (B). Such 
                funds may be used by States to employ State personnel 
                to provide such services in designated local areas in 
                consultation with local boards.
                    ``(B) Method of distributing funds.--The method of 
                distributing funds under this paragraph shall be 
                developed in consultation with the State board and 
                local boards. Such method of distribution, which may 
                include the formula established under section 
                121(h)(3), shall be objective and geographically 
                equitable, and may include factors such as the number 
                of centers in the local area that have been certified, 
                the population served by such centers, and the 
                performance of such centers.
                    ``(C) Other use of funds.--Funds reserved by a 
                Governor for a State--
                            ``(i) under section 133(a) and not used 
                        under subparagraph (A), may be used for 
                        statewide activities described in paragraph 
                        (2); and
                            ``(ii) under section 133(a) and not used 
                        under subparagraph (A), and under section 
                        128(a) may be used to carry out any of the 
                        statewide employment and training activities 
                        described in paragraph (3).
            ``(2) Statewide rapid response activities.--A State shall 
        carry out statewide rapid response activities using funds 
        reserved as described in section 133(a). Such activities shall 
        include--
                    ``(A) provision of rapid response activities, 
                carried out in local areas by the State or by an entity 
                designated by the State, working in conjunction with 
                the local boards and the chief elected officials in the 
                local areas; and
                    ``(B) provision of additional assistance to local 
                areas that experience disasters, mass layoffs or plant 
                closings, or other events that precipitate substantial 
                increases in the number of unemployed individuals, 
                carried out in local areas by the State, working in 
                conjunction with the local boards and the chief elected 
                officials in the local areas.
            ``(3) Statewide activities.--Funds reserved by a Governor 
        for a State as described in sections 133(a) and 128(a) may be 
        used for statewide activities including--
                    ``(A) supporting the provision of work ready 
                services described in section 134(c)(2) in the one-stop 
                delivery system;
                    ``(B) 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, sectoral skills 
                partnerships (in which representatives of multiple 
                employers for a specific industry sector or group of 
                related occupations, economic development agencies, 
                providers of training services described in subsection 
                (d)(4), labor federations, and other entities that can 
                provide needed supportive services tailored to the 
                needs of workers in that sector or group, for a local 
                area or region, identify gaps between the current and 
                expected demand and supply of labor and skills in that 
                sector or group for that area or region and develop a 
                strategic skills gap action plan), career ladder 
                programs, micro-enterprise and entrepreneurial training 
                and support programs, utilization of effective business 
                intermediaries, activities to improve linkages between 
                the one-stop delivery system in the State and all 
                employers (including small employers) in the State, and 
                other business services and strategies that better 
                engage employers in workforce investment activities and 
                make the workforce investment system more relevant to 
                the needs of State and local businesses, consistent 
                with the objectives of this title;
                    ``(C) conducting evaluations under section 136(e) 
                of activities authorized under this chapter and chapter 
                4 in coordination with evaluations carried out by the 
                Secretary under section 172, research, and 
                demonstration projects;
                    ``(D) providing incentive grants to local areas for 
                regional cooperation among local boards (including 
                local boards in a designated region as described in 
                section 116(c)), for local coordination of activities 
                carried out under this Act, and for exemplary 
                performance by local areas on the local performance 
                measures;
                    ``(E) providing technical assistance and capacity 
                building to local areas, one-stop operators, one-stop 
                partners, and eligible providers, including the 
                development and training of staff, the development of 
                exemplary program activities, and the provision of 
                technical assistance to local areas that fail to meet 
                local performance measures;
                    ``(F) operating a fiscal and management 
                accountability system under section 136(f);
                    ``(G) carrying out monitoring and oversight of 
                activities carried out under this chapter and chapter 
                4;
                    ``(H) implementing innovative programs, such as 
                incumbent worker training programs, programs and 
                strategies designed to meet the needs of businesses in 
                the State, including small businesses, and engage 
                employers in workforce activities, and programs serving 
                individuals with disabilities consistent with section 
                188;
                    ``(I) developing strategies for effectively serving 
                hard-to-serve populations and for integrating programs 
                and services among one-stop partners; and
                    ``(J) carrying out activities to facilitate remote 
                access to services provided through a one-stop delivery 
                system, including facilitating access through the use 
                of technology.
            ``(4) Limitation.--Not more than 5 percent of the funds 
        allotted under section 132(b) shall be used by the State for 
        administrative activities carried out under this subsection and 
        section 128(a).''.
            (2) Local employment and training activities.--Section 
        134(b) (29 U.S.C. 2864(b)) is amended--
                    (A) by striking ``under paragraph (2)(A)'' and all 
                that follows through ``section 133(b)(2)(B)'' and 
                inserting ``under section 133(b)''; and
                    (B) in paragraphs (1) and (2), by striking ``or 
                dislocated workers, respectively''.
            (3) Technical amendment.--Section 134 is further amended by 
        redesignating subsections (d) and (e) as subsections (c) and 
        (d), respectively.
            (4) Required local employment and training activities.--
                    (A) Allocated funds.--Section 134(c)(1) (29 U.S.C. 
                2864(c)(1)) (as redesignated by paragraph (3)) is 
                amended to read as follows:
            ``(1) In general.--Funds allocated to a local area for 
        adults under section 133(b) shall be used--
                    ``(A) to establish a one-stop delivery system as 
                described in section 121(e);
                    ``(B) to provide the work ready services described 
                in paragraph (2) through the one-stop delivery system 
                in accordance with such paragraph;
                    ``(C) to provide training services described in 
                paragraph (4) to adults described in such paragraph; 
                and
                    ``(D) 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.''.
                    (B) Work ready services.--Section 134(c)(2) (29 
                U.S.C. 2864(c)(2)) (as redesignated by paragraph (3)) 
                is amended----
                            (i) in the heading, by striking ``core 
                        services'' and inserting ``work ready 
                        services'';
                            (ii) by striking ``core services'' and 
                        inserting ``work ready services'';
                            (iii) by striking ``paragraph (1)(A)'' and 
                        inserting ``paragraph (1)(A)(i)'';
                            (iv) by striking ``who are adults or 
                        dislocated workers'';
                            (v) in subparagraph (A), by inserting ``and 
                        assistance in obtaining eligibility 
                        determinations under the other one-stop partner 
                        programs through such activities as assisting 
                        in the submission of applications, the 
                        provision of information on the results of such 
                        applications, the provision of intake services 
                        and information, and, where appropriate and 
                        consistent with the authorizing statute of the 
                        one-stop partner program, determinations of 
                        eligibility'' after ``subtitle'';
                            (vi) by amending subparagraph (D) to read 
                        as follows:
                    ``(D) labor exchange services, including--
                            ``(i) job search and placement assistance, 
                        and where appropriate career counseling;
                            ``(ii) appropriate recruitment services for 
                        employers, including small employers, in the 
                        local area, which may include services 
                        described in this subsection, including 
                        information and referral to specialized 
                        business services not traditionally offered 
                        through the one-stop delivery system; and
                            ``(iii) reemployment services provided to 
                        unemployment claimants, including claimants 
                        identified as in need of such services under 
                        the worker profiling system established under 
                        section 303(j) of the Social Security Act (42 
                        U.S.C. 503(j);'';
                            (vii) in subparagraph (I), by inserting 
                        ``and the administration of the work test for 
                        the unemployment compensation system'' after 
                        ``compensation''; and
                            (viii) 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
                            (ix) by amending subparagraph (J) to read 
                        as follows:
                    ``(J) assistance in establishing eligibility for 
                programs of financial aid assistance for training and 
                education programs that are not funded under this Act 
                and are available in the local area; and''; and
                            (x) by redesignating subparagraph (K) as 
                        subparagraph (M); and
                            (xi) by inserting the following new 
                        subparagraphs after subparagraph (J)):
                    ``(K) the provision of information from official 
                publications of the Internal Revenue Service, regarding 
                federal tax credits available to individuals relating 
                to education, job training and employment, including 
                the Hope Scholarship Credit and the Lifetime Learning 
                Credit (26 U.S.C. 25A), and the Earned Income Tax 
                Credit (26 U.S.C. 32);
                    ``(L) services relating to the Work Opportunity Tax 
                Credit (26 U.S.C. 51);
                    ``(M) comprehensive and specialized assessments of 
                the skill levels and service needs of adults and 
                dislocated workers, which may include--
                            ``(i) diagnostic testing and use of other 
                        assessment tools; and
                            ``(ii) in-depth interviewing and evaluation 
                        to identify employment barriers and appropriate 
                        employment goals;
                    ``(N) development of an individual employment plan, 
                to identify the employment goals, appropriate 
                achievement objectives, and appropriate combination of 
                services for the participation to achieve the 
                employment goals;
                    ``(O) group counseling;
                    ``(P) individual counseling and career planning;
                    ``(Q) case management;
                    ``(R) short-term prevocational services, including 
                development of learning skills, communications skills, 
                interviewing skills, punctuality, personal maintenance 
                skills, and professional conduct, to prepare 
                individuals for unsubsidized employment or training;
                    ``(S) internships and work experience;
                    ``(T) literacy activities relating to basic work 
                readiness, information and communication technology 
                literacy activities, and financial literacy activities, 
                if such activities are not available to participants in 
                the local area under programs administered under the 
                Adult Education and Family Literacy Act (20 U.S.C. 2901 
                et seq.); and
                    ``(U) out-of-area job search assistance and 
                relocation assistance.''.
                    (C) Delivery of services.--Section 134(c)(3) (29 
                U.S.C. 2864(c)(3) (as redesignated by paragraph (3) of 
                this subsection) is amended to read as follows:
            ``(3) Delivery of services.--The work ready services 
        described in paragraph (M) through (U) shall be provided 
        through the one-stop delivery system and may be provided 
        through contracts with public, private for-profit, and private 
        nonprofit service providers, approved by the local board.''.
                    (D) Training services.--Section 134(c)(4) (as 
                redesignated by paragraph (3) of this subsection) is 
                amended--
                            (i) by amending subparagraph (A) to read as 
                        follows:
                    ``(A) In general.--Funds allocated to a local area 
                under section 133(b) shall be used to provide training 
                services to adults who--
                            ``(i) after an interview, evaluation, or 
                        assessment, and case management, have been 
                        determined by a one-stop operator or one-stop 
                        partner, as appropriate, to--
                                    ``(I) be in need of training 
                                services to obtain or retain suitable 
                                employment; and
                                    ``(II) have the skills and 
                                qualifications to successfully 
                                participate in the selected program of 
                                training services;
                            ``(ii) select programs of training services 
                        that are directly linked to the employment 
                        opportunities in the local area involved or in 
                        another area in which the adults receiving such 
                        services are willing to commute or relocate;
                            ``(iii) who meet the requirements of 
                        subparagraph (B); and
                            ``(iv) who are determined eligible in 
                        accordance with the priority system in effect 
                        under subparagraph (E).'';
                            (ii) in subparagraph (B)(i), by striking 
                        ``Except'' and inserting ``Notwithstanding 
                        section 479B of the Higher Education Act of 
                        1965 (20 U.S.C. 1087uu) and except'';
                            (iii) by amending subparagraph (D) to read 
                        as follows:
                    ``(D) Training services.--Training services 
                authorized under this paragraph may include--
                            ``(i) occupational skills training;
                            ``(ii) on-the-job training;
                            ``(iii) skill upgrading and retraining;
                            ``(iv) entrepreneurial training;
                            ``(v) education activities leading to a 
                        high school diploma or its equivalent, 
                        including a General Educational Development 
                        credential, in combination with, concurrently 
                        or subsequently, occupational skills training;
                            ``(vi) adult education and literacy 
                        activities provided in conjunction with other 
                        training authorized under this subparagraph;
                            ``(vii) workplace training combined with 
                        related instruction; and
                            ``(viii) occupational skills training that 
                        incorporates English language acquisition.'';
                            (iv) by amending subparagraph (E) to read 
                        as follows:
                    ``(E) Priority.--
                            ``(i) In general.--A priority shall be 
                        given to unemployed individuals and employed 
                        workers who need training services to retain 
                        employment or to advance in a career for the 
                        provision of intensive and training services 
                        under this subsection.
                            ``(ii) Determinations.--The Governor and 
                        the appropriate local board shall direct the 
                        one-stop operators in the local area with 
                        regard to making determinations with respect to 
                        the priority of service under this 
                        subparagraph.'';
                            (v) in subparagraph (F), by striking clause 
                        (iii) and inserting the following:
                            ``(iii) Career enhancement accounts.--An 
                        individual who seeks training services and who 
                        is eligible pursuant to subparagraph (A), may, 
                        in consultation with a case manager, select an 
                        eligible provider of training services from the 
                        list or identifying information for providers 
                        described in clause (ii)(I). Upon such 
                        selection, the one-stop operator involved 
                        shall, to the extent practicable, refer such 
                        individual to the eligible provider of training 
                        services, and arrange for payment for such 
                        services through a career enhancement account.
                            ``(iv) Coordination.--Each local board may, 
                        through one-stop centers, coordinate career 
                        enhancement accounts with other Federal, State, 
                        local, or private job training programs or 
                        sources to assist the individual in obtaining 
                        training services.
                            ``(v) Enhanced career enhancement 
                        accounts.--Each local board may, through one-
                        stop centers, assist individuals receiving 
                        career enhancement accounts through the 
                        establishment of such accounts that include, in 
                        addition to the funds provided under this 
                        paragraph, funds from other programs and 
                        sources that will assist the individual in 
                        obtaining training services.''; and
                            (vi) in subparagraph (G)--
                                    (I) in the subparagraph heading, by 
                                striking ``individual training 
                                accounts'' and inserting ``career 
                                enhancement accounts'';
                                    (II) in clause (i) by striking 
                                ``individual training accounts'' and 
                                inserting ``career enhancement 
                                accounts'';
                                    (III) in clause (ii)--
                                            (aa) by striking ``an 
                                        individual training account'' 
                                        and inserting ``a career 
                                        enhancement account'';
                                            (bb) in subclause (II), by 
                                        striking ``individual training 
                                        accounts'' and inserting 
                                        ``career enhancement 
                                        accounts'';
                                            (cc) in subclause (II) by 
                                        striking ``or'' after the 
                                        semicolon;
                                            (dd) in subclause (III) by 
                                        striking the period and 
                                        inserting ``; or''; and
                                            (ee) by adding at the end 
                                        of 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.''.
                                    (IV) in clause (iv)--
                                            (aa) by redesignating 
                                        subclause (IV) as subclause (V) 
                                        and inserting after subclause 
                                        (III) the following:
                                    ``(IV) Individuals with 
                                disabilities.''.
            (5) Permissible activities.--Section 134(d) (as 
        redesignated by paragraph (3)) is amended--
                    (A) by amending paragraph (1) to read as follows:
            ``(1) Discretionary one-stop delivery activities.--
                    ``(A) In general.--Funds allocated to a local area 
                under section 133(b) may be used to provide, through 
                the one-stop delivery system--
                            ``(i) customized screening and referral of 
                        qualified participants in training services to 
                        employers;
                            ``(ii) customized employment-related 
                        services to employers on a fee-for-service 
                        basis;
                            ``(iii) customer support to navigate among 
                        multiple services and activities for special 
                        participant populations that face multiple 
                        barriers to employment, including individuals 
                        with disabilities;
                            ``(iv) employment and training assistance 
                        provided in coordination with child support 
                        enforcement activities of the State agency 
                        carrying out subtitle D of title IV of the 
                        Social Security Act (42 U.S.C. 651 et seq.);
                            ``(v) activities to improve services to 
                        local employers, including small employers in 
                        the local area, and increase linkages between 
                        the local workforce investment system and 
                        employers;
                            ``(vi) activities to facilitate remote 
                        access to services provided through a one-stop 
                        delivery system, including facilitating access 
                        through the use of technology; and
                            ``(vii) activities to carry out business 
                        services and strategies that meet the workforce 
                        investment needs of local area employers, as 
                        determined by the local board, consistent with 
                        the local plan under section 118, 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.
                    ``(B) Work support activities for low-wage 
                workers.--
                            ``(i) In general.--Funds allocated to a 
                        local area under 133(b) may be used to provide, 
                        through the one-stop delivery system and in 
                        collaboration with the appropriate programs and 
                        resources of the one-stop partners, work 
                        support activities designed to assist low-wage 
                        workers in retaining and enhancing employment. 
                        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 assistance 
                        in accessing financial supports for which such 
                        workers may be eligible and the provision of 
                        activities available through the one-stop 
                        delivery system in a manner that enhances the 
                        opportunities of such workers to participate, 
                        such as the provision of employment and 
                        training activities during nontraditional hours 
                        and the provision of on-site child care while 
                        such activities are being provided.''; and
                    (B) by adding after paragraph (3) the following new 
                paragraph:
            ``(4) Incumbent worker training programs.--
                    ``(A) In general.--The local board may use up to 10 
                percent of the funds allocated to a local area under 
                section 133(b) to carry out incumbent worker training 
                programs in accordance with this paragraph.
                    ``(B) Training activities.--The training programs 
                for incumbent workers under this paragraph shall be 
                carried out by the local area in conjunction with the 
                employers of such workers for the purpose of assisting 
                such workers in obtaining the skills necessary to 
                retain employment and avert layoffs.
                    ``(C) Employer match required.--
                            ``(i) In general.--Employers participating 
                        in programs under this paragraph shall be 
                        required to pay a proportion of the costs of 
                        providing the training to the incumbent workers 
                        of the employers. The State board, in 
                        consultation with the local board as 
                        appropriate, shall establish the required 
                        portion of such costs, which may include in-
                        kind contributions. The required portion shall 
                        not be less than--
                                    ``(I) 10 percent of the costs, for 
                                employers with 50 or fewer employees;
                                    ``(II) 25 percent of the costs, for 
                                employers with more than 50 employees 
                                but fewer than 100 employees; and
                                    ``(III) 50 percent of the costs, 
                                for employers with 100 or more 
                                employees.
                            ``(ii) Calculation of match.--The wages 
                        paid by an employer to a worker while they are 
                        attending training may be included as part of 
                        the requirement payment of the employer.''.

SEC. 113. PERFORMANCE ACCOUNTABILITY SYSTEM.

    (a) State Performance Measures.--
            (1) In general.--Section 136(b)(1) (29 U.S.C. 2871(b)(1)) 
        is amended--
                    (A) in subparagraph (A)(i), by striking ``and the 
                customer satisfaction indicator of performance 
                described in paragraph (2)(B)''; and
                    (B) in subparagraph (A)(ii), by striking 
                ``paragraph (2)(C)'' and inserting ``paragraph 
                (2)(B)''.
            (2) Indicators of performance.--Section 136(b)(2) (29 
        U.S.C. 2871(b)(2)) is amended--
                    (A) in subparagraph (A)(i)--
                            (i) by striking ``(except for self-service 
                        and information activities) and (for 
                        participants who are eligible youth age 19 
                        through 21) for youth activities authorized 
                        under section 129'';
                            (ii) in subclause (II), by striking ``6 
                        months after entry into the employment'' and 
                        inserting ``and'' after the semicolon; and
                            (iii) by striking subclause (III), and 
                        inserting the following:
                                    ``(III) average earnings from 
                                unsubsidized employment.'';
                    (B) by striking subclause (IV) of subparagraph 
                (A)(i);
                    (C) by amending subparagraph (A)(ii) to read as 
                follows:
                            ``(ii) Core indicators for eligible 
                        youth.--The core indicators of performance for 
                        youth activities authorized under section 129 
                        shall consist of--
                                    ``(I) entry into employment, 
                                education or advanced training, or 
                                military service;
                                    ``(II) attainment of secondary 
                                school diploma, General Educational 
                                Development credential (GED), or other 
                                State-recognized equivalent or 
                                certificate (including recognized 
                                alternative standards for individuals 
                                with disabilities); and
                                    ``(III) literacy or numeracy 
                                gains.'';
                    (D) by striking subparagraph (B); and
                    (E) by redesignating subparagraph (C) as 
                subparagraph (B), and by adding at the end of such 
                subparagraph the following new sentence: ``Such 
                indicators may include customer satisfaction of 
                employers and participants with services received from 
                the workforce investment activities authorized under 
                this subtitle.''.
            (3) Levels of performance.--Section 136(b)(3)(A) (29 U.S.C. 
        2871(b)(3)(A)) is amended--
                    (A) in clause (i), by striking ``and the customer 
                satisfaction indicator described in paragraph (2)(B)'';
                    (B) in clause (ii), by striking ``and the customer 
                satisfaction indicator of performance, for the first 
                3'' and inserting ``for the 2'';
                    (C) in clause (iii)--
                            (i) in the heading, by striking ``for first 
                        3 years''; and
                            (ii) by striking ``and the customer 
                        satisfaction indicator of performance, for the 
                        first 3'' and inserting ``for the 2'';
                    (D) in clause (iv)--
                            (i) by striking subclause (I);
                            (ii) by redesignating subclauses (II) and 
                        (III) as subclauses (I) and (II), respectively; 
                        and
                            (iii) in subclause (I) (as so 
                        redesignated)--
                                    (I) by striking ``taking into 
                                account'' and inserting ``which shall 
                                be adjusted based on'';
                                    (II) by inserting ``, such as 
                                unemployment rates and job losses or 
                                gains in particular industries'' after 
                                ``economic conditions''; and
                                    (III) by inserting ``, such as 
                                indicators of poor work history, lack 
                                of work experience, dislocation from 
                                high-wage employment, low levels of 
                                literacy or English proficiency, 
                                disability status, including the number 
                                of veterans with disabilities, and 
                                welfare dependency'' after ``program'';
                    (E) by striking clause (v) and redesignating clause 
                (vi) as clause (v).
            (4) Additional indicators.--Section 136(b)(3)(B) is amended 
        by striking ``paragraph (2)(C)'' and inserting ``paragraph 
        (2)(B)''.
    (b) Local Performance Measures.--Section 136(c) (29 U.S.C. 2871(c)) 
is amended--
            (1) in paragraph (1)(A)(i), by striking ``, and the 
        customer satisfaction indicator of performance described in 
        subsection (b)(2)(B),'';
            (2) in paragraph (1)(A)(ii), by striking ``subsection 
        (b)(2)(C)'' and inserting ``subsection (b)(2)(B)''; and
            (3) by amending paragraph (3) to read as follows:
            ``(3) Determinations.--In determining such local levels of 
        performance, the local board, the chief elected official, and 
        the Governor shall ensure such levels are adjusted based on the 
        specific economic characteristics (such as unemployment rates 
        and job losses or gains in particular industries), demographic 
        characteristics, or other characteristics of the population to 
        be served in the local area, such as poor work history, lack of 
        work experience, dislocation from high-wage employment, low 
        levels of literacy or English proficiency, disability status, 
        including the number of veterans with disabilities, and welfare 
        dependency.''.
    (c) Report.--Section 136(d) (29 U.S.C. 2871(d)) is amended--
            (1) in paragraph (1), by striking ``and the customer 
        satisfaction indicator'' in both places that it appears;
            (2) in paragraph (2)--
                    (A) in subparagraph (E), by striking ``(excluding 
                participants who received only self-service and 
                informational activities); and'' and inserting a 
                semicolon;
                    (B) in subparagraph (F), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(G) the number of participants who have received 
                services other than followup services, authorized under 
                this title, in the form of work ready services 
                described in section 134(d)(2), and training services 
                described in section 134(d)(4), respectively;
                    ``(H) the number of participants who have received 
                followup services authorized under this title; and
                    ``(I) the cost per participant for services 
                authorized under this title.''; and
            (3) by adding at the end the following:
            ``(4) Data validation.--In preparing the reports described 
        in this subsection, the States shall establish procedures, 
        consistent with guidelines issued by the Secretary, to ensure 
        the information contained in the report is valid and 
        reliable.''.
    (d) Sanctions for State.--Section 136(g) (29 U.S.C. 2871(g)) is 
amended--
            (1) in paragraph (1)(A), by striking ``or (B)''; and
            (2) in paragraph (2), by striking ``section 503'' and 
        inserting ``section 136(i)''.
    (e) Sanctions for Local Areas.--Section 136(h) (29 U.S.C. 2871(h)) 
is amended--
            (1) in paragraph (1), by striking ``or (B)''; and
            (2) by amending paragraph (2)(B) to read as follows:
                    ``(B) Appeal to governor.--A local area that is 
                subject to a reorganization plan under subparagraph (A) 
                may, not later than 30 days after receiving notice of 
                the reorganization plan, appeal to the Governor to 
                rescind or revise such plan. In such case, the Governor 
                shall make a final decision not later than 30 days 
                after the receipt of the appeal.''.
    (f) Incentive Grants.--Section 136(i) (29 U.S.C. 2871(i)) is 
amended to read as follows:
    ``(i) Incentive Grants for States and Local Areas.--
            ``(1) Incentive grants for states.--
                    ``(A) In general.--From funds appropriated under 
                section 174, the Secretary may award incentive grants 
                to States for exemplary performance in carrying 
                programs under chapters 4 and 5 of this title. Such 
                awards may be based on States meeting or exceeding the 
                performance measures established under this section, on 
                the performance of the State in serving special 
                populations, including the levels of service provided 
                and the performance outcomes, and such other factors 
                relating to the performance of the State under this 
                title as the Secretary determines is appropriate.
                    ``(B) Use of funds.--The funds awarded to a State 
                under this paragraph may be used to carry out any 
                activities authorized under chapters 4 and 5 of this 
                title, including--
                            ``(i) activities that provide technical 
                        assistance to local areas to replicate best 
                        practices for workforce and education programs;
                            ``(ii) activities that support the needs of 
                        businesses, especially for incumbent workers 
                        and enhancing opportunities for retention and 
                        advancement;
                            ``(iii) activities that support linkages 
                        between the workforce and education programs, 
                        and secondary, postsecondary, or career and 
                        technical education programs, including 
                        activities under the Carl D. Perkins Career and 
                        Technical Education Act (20 U.S.C. 2301 et 
                        seq.), the Adult Education and Family Literacy 
                        Act (20 U.S.C. 9201 et seq.), and the 
                        Rehabilitation Act of 1973 (29 U.S.C. 701 et 
                        seq.);
                            ``(iv) activities that support regional 
                        economic development plans that support high-
                        wage, high-skill, or high-demand occupations 
                        leading to self-sufficiency;
                            ``(v) activities that coordinate the 
                        workforce and education programs with other 
                        Federal and State programs related to the 
                        workforce and education programs;
                            ``(vi) activities that support the 
                        development of an integrated performance 
                        information system that includes common 
                        measures for one-stop partner programs 
                        described in section 121;
                            ``(vii) activities that support activities 
                        to improve performance in workforce and 
                        education programs and program coordination of 
                        workforce and education programs; or
                            ``(viii) activities that leverage 
                        additional training resources, other than those 
                        provided through workforce and education 
                        programs, for adults and youth.
            ``(2) Incentive grants for local areas.--
                    ``(A) In general.--From funds reserved under 
                sections 128(a) and 133(a), the Governor may award 
                incentive grants to local areas for exemplary 
                performance with respect to the measures established 
                under this section and with the performance of the 
                local area in serving special populations, including 
                the levels of service and the performance outcomes.
                    ``(B) Use of funds.--The funds awarded to a local 
                area may be used to carry out activities authorized for 
                local areas under chapters 4 and 5 of this title, the 
                Adult Education and Family Literacy Act, and the 
                Rehabilitation Act of 1973 (referred to in this 
                subsection as `workforce and education programs'), and 
                such innovative projects or programs that increase 
                coordination and enhance service to participants in 
                such programs, particularly hard-to-serve populations, 
                as may be approved by the Governor, including--
                            ``(i) activities that support the needs of 
                        businesses, especially for incumbent workers 
                        and enhancing opportunities for retention and 
                        advancement;
                            ``(ii) activities that support linkages 
                        between the workforce and education programs, 
                        and secondary, postsecondary, or career and 
                        technical education programs, including 
                        activities under the Carl D. Perkins Career and 
                        Technical Education Act (20 U.S.C. 2301 et 
                        seq.), the Adult Education and Family Literacy 
                        Act (20 U.S.C. 9201 et seq.), and the 
                        Rehabilitation Act of 1973 (29 U.S.C. 701 et 
                        seq.);
                            ``(iii) activities that support regional 
                        economic development plans that support high-
                        wage, high-skill, or high-demand occupations 
                        leading to self-sufficiency;
                            ``(iv) activities that coordinate the 
                        workforce and education programs with other 
                        Federal and State programs related to the 
                        workforce and education programs;
                            ``(v) activities that support the 
                        development of an integrated performance 
                        information system that includes common 
                        measures for one-stop partner programs 
                        described in section 121;
                            ``(vi) activities that support activities 
                        to improve performance in workforce and 
                        education programs and program coordination of 
                        workforce and education programs; or
                            ``(vii) activities that leverage additional 
                        training resources, other than those provided 
                        through workforce and education programs, for 
                        adults and youth.''.
    (g) Use of Core Indicators for Other Programs.--Section 136 (29 
U.S.C. 2871) is further amended by adding at the end the following 
subsection:
    ``(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 core indicators of performance described in subsection 
(b)(2)(A) to assess the effectiveness of the programs described under 
section 121(b)(1)(B) that are carried out by the Secretary.''.
    (h) Repeal of Definitions.--Sections 502 and 503 (and the items 
related to such sections in the table of contents) are repealed.

SEC. 114. AUTHORIZATION OF APPROPRIATIONS.

    (a) Youth Activities.--Section 137(a) (29 U.S.C. 2872(a)) is 
amended by striking ``such sums as may be necessary for each of fiscal 
years 1999 through 2003'' and inserting ``such sums as may be necessary 
for each of fiscal year 2008 through 2012''.
    (b) Adult Employment and Training Activities.--Section 137(b) (29 
U.S.C. 2872(b)) is amended by striking ``section 132(a)(1), such sums 
as may be necessary for each of fiscal years 1999 through 2003'' and 
inserting ``section 132(a), such sums as may be necessary for each of 
fiscal years 2008 through 2012''.
    (c) Dislocated Worker Employment and Training Activities.--Section 
137 is further amended by striking subsection (c).

SEC. 115. JOB CORPS.

    (a) Program Activities.--Section 148(a) is amended by striking 
paragraph (1) and inserting the following:
            ``(1) In general.--Each Job Corps Center shall provide 
        enrollees with an intensive, well organized, and fully 
        supervised program of education, career training, work 
        experience, recreational activities, physical rehabilitation 
        and development, and counseling. Each Job Corps center shall 
        provide enrollees assigned to the center with access to work 
        ready services described in section 134(c)(2).''.
    (b) Industry Councils.--Section 154(b) (29 U.S.C. 2894(b)) is 
amended--
            (1) in paragraph (1)(A), by striking ``local and distant''; 
        and
            (2) by adding after paragraph (2) the following:
            ``(3) Employers outside of local areas.--The industry 
        council may include, or otherwise provide for consultation 
        with, employers from outside the local area who are likely to 
        hire a significant number of enrollees from the Job Corps 
        center.
            ``(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.''.
    (c) Indicators of Performance and Additional Information.--Section 
159(c) (29 U.S.C. 2893(c)) is amended--
            (1) by amending paragraph (1) to read as follows:
            ``(1) Core indicators.--The Secretary shall annually 
        establish expected levels of performance for Job Corps centers 
        and the Job Corps program relating to each of the following 
        core indicators of performance for youth--
                    ``(A) entry into education, employment, military 
                service or advanced training;
                    ``(B) attainment of a secondary school diploma, 
                General Educational Development credential (GED), or 
                other State-recognized equivalent; and
                    ``(C) literacy or numeracy gains.''; and
            (2) in paragraph (2), by striking ``measures'' each place 
        it appears and inserting ``indicators''.
    (d) Authorization of Appropriations.--Section 161 (29 U.S.C. 2901) 
is amended by striking ``1999 through 2003'' and inserting ``2008 
through 2012''.
    (e) Repeal of Requirement Relating to Federal Administration.--
Section 102 of the Departments of Labor, Health and Human Services, and 
Education, and Related Agencies Appropriations Act, 2006 (Public Law 
109-149) is repealed.

SEC. 116. NATIVE AMERICAN PROGRAMS.

    (a) Advisory Council.--Section 166(h)(4)(C) (29 U.S.C. 
2911(h)(4)(C)) is amended to read as follows:
                    ``(C) Duties.--The Council shall advise the 
                Secretary on the operation and administration of the 
                programs assisted under this section.''.
    (b) Assistance to American Samoans in Hawaii.--Section 166 (29 
U.S.C. 2911) is further amended by striking subsection (j).

SEC. 117. MIGRANT AND SEASONAL FARMWORKER PROGRAMS.

    Section 167(d) is amended by inserting ``(including permanent 
housing)'' after ``housing''.

SEC. 118. 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. 119. YOUTH CHALLENGE GRANTS.

    (a) In General.--Section 169 (29 U.S.C. 2914) is amended to read as 
follows:

``SEC. 169. YOUTH CHALLENGE GRANTS.

    ``(a) In General.--Of the amounts reserved by the Secretary under 
section 127(a)(1)(A) for a fiscal year--
            ``(1) the Secretary shall use not less than 80 percent to 
        award competitive grants under subsection (b); and
            ``(2) the Secretary may use not more than 20 percent to 
        award discretionary grants under subsection (c).
    ``(b) Competitive Grants to States and Local Areas.--
            ``(1) Establishment.--From the funds described in 
        subsection (a)(1), the Secretary shall award competitive grants 
        to eligible entities to carry out activities authorized under 
        this section to assist eligible youth in acquiring the skills, 
        credentials and employment experience necessary to succeed in 
        the labor market.
            ``(2) Eligible entities.--Grants under this subsection may 
        be awarded to States, local boards, recipients of grants under 
        section 166 (relating to Native American programs), and public 
        or private entities (including consortia of such entities) 
        applying in conjunction with local boards.
            ``(3) Grant period.--The Secretary may make a grant under 
        this section for a period of 1 year and may renew the grants 
        for each of the 4 succeeding years.
            ``(4) Authority to require match.--The Secretary may 
        require that grantees under this subsection provide a non-
        Federal share of the cost of activities carried out under a 
        grant awarded under this subsection.
            ``(5) Participant eligibility.--Youth ages 14 through 19 as 
        of the time the eligibility determination is made may be 
        eligible to participate in activities provided under this 
        subsection.
            ``(6) Use of funds.--Funds under this subsection may be 
        used for activities that are designed to assist youth in 
        acquiring the skills, credentials and employment experience 
        that are necessary to succeed in the labor market, including 
        the activities identified in section 129. The activities may 
        include activities such as--
                    ``(A) training and internships for out-of-school 
                youth in sectors of the economy experiencing or 
                projected to experience high growth;
                    ``(B) after-school dropout prevention activities 
                for in-school youth;
                    ``(C) activities designed to assist special youth 
                populations, such as court-involved youth and youth 
                with disabilities; and
                    ``(D) activities combining remediation of academic 
                skills, work readiness training, and work experience, 
                and including linkages to postsecondary education, 
                apprenticeships, and career-ladder employment.
            ``(7) Applications.--To be eligible to receive a grant 
        under this subsection, an eligible entity shall submit an 
        application to the Secretary at such time, in such manner, and 
        containing such information as the Secretary may require, 
        including--
                    ``(A) a description of the activities the eligible 
                entity will provide to eligible youth under this 
                subsection and how the eligible entity will collaborate 
                with State and local workforce investment systems 
                established under this title in the provisions 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 private and public, and 
                local and State resources that will be leveraged to 
                provide the activities described under subparagraph (A) 
                in addition to the funds provided under this subsection 
                and a description of the extent of the involvement of 
                employers in the activities; and
                    ``(D) the levels of performance the eligible entity 
                expects to achieve with respect to the indicators of 
                performance for youth specified in section 
                136(b)(2)(A)(ii).
            ``(8) Factors for award.--
                    ``(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 eligible 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;
                            ``(viii) the quality of the proposed 
                        activities in meeting the needs of the eligible 
                        youth to be served; and
                            ``(ix) the extent to which the proposed 
                        activities will expand on services provided 
                        under section 127.
                    ``(B) Equitable geographic distribution.--In 
                awarding grants under this subsection the Secretary 
                shall ensure an equitable distribution of such grants 
                across geographically diverse areas.
            ``(9) Evaluation.--The Secretary may reserve up to 5 
        percent of the funds described in subsection(a)(1) to provide 
        technical assistance to, and conduct evaluations of the 
        projects funded under this subsection (using appropriate 
        techniques as described in section 172(c)).
    ``(c) Discretionary Grants for Youth Activities.--
            ``(1) In general.--From the funds described in 
        subsection(a)(2), the Secretary may award grants to eligible 
        entities to provide activities that will assist youth in 
        preparing for, and entering and retaining, employment.
            ``(2) Eligible entities.--Grants under this subsection may 
        be awarded to public or private entities that the Secretary 
        determines would effectively carry out activities relating to 
        youth under this subsection.
            ``(3) Participant eligibility.--Youth ages 14 through 19 at 
        the time the eligibility determination is made may be eligible 
        to participate in activities under this subsection.
            ``(4) Use of funds.--Funds provided under this subsection 
        may be used for activities that will assist youth in preparing 
        for, and entering and retaining, employment, including the 
        activities described in section 129 for out-of-school youth, 
        activities designed to assist in-school youth to stay in school 
        and gain work experience, and such other activities that the 
        Secretary determines are appropriate.
            ``(5) Applications.--To be eligible to receive a grant 
        under this subsection, an eligible entity shall submit an 
        application to the Secretary at such time, in such manner, and 
        containing such information as the Secretary may require.
            ``(6) Additional requirements.--The Secretary may require 
        the provision of a non-Federal share for projects funded under 
        this subsection and may require participation of grantees in 
        evaluations of such projects, including evaluations using the 
        techniques as described in section 172(c).''.
    (b) Clerical Amendment.--The table of contents in section 1(b) is 
amended by amending the item related to section 169 to read as follows:

``Sec. 169. Youth challenge grants.''.

SEC. 120. TECHNICAL ASSISTANCE.

    Section 170 (29 U.S.C. 2915) is amended--
            (1) by striking subsection (b);
            (2) by striking
    ``(a) General Technical Assistance.--'';
            (3) by redesignating paragraphs (1), (2), and (3) as 
        subsections (a), (b), and (c) respectively, and moving such 
        subsections 2 ems to the left;
            (4) in subsection (a) (as redesignated by paragraph (3))--
                    (A) by inserting ``the training of staff providing 
                rapid response services, the training of other staff of 
                recipients of funds under this title, peer review 
                activities under this title, assistance regarding 
                accounting and program operation practices (when such 
                assistance would not be duplicative to assistance 
                provided by the State), technical assistance to States 
                that do not meet State performance measures described 
                in section 136,'' after ``localities,''; and
                    (B) by striking ``from carrying out activities'' 
                and all that follows up to the period and inserting 
                ``to implement the amendments made by the Workforce 
                Investment Improvement Act of 2007''; and
            (5) by inserting, after subsection (c) (as redesignated by 
        paragraph (3)), the following:
    ``(d) Best Practices Coordination.--The Secretary shall--
            ``(1) establish a system through which States may share 
        information regarding best practices with regard to the 
        operation of workforce investment activities under this Act;
            ``(2) evaluate and disseminate information regarding best 
        practices and identify knowledge gaps; and
            ``(3) commission research under section 171(c) to address 
        knowledge gaps identified under paragraph (2).''.

SEC. 121. DEMONSTRATION, PILOT, MULTISERVICE, RESEARCH AND MULTI-STATE 
              PROJECTS.

    (a) Demonstration and Pilot Projects.--Section 171(b) (29 U.S.C. 
2916(b)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``Under a'' and inserting 
                ``Consistent with the priorities specified in the'';
                    (B) by amending subparagraphs (A) through (D) to 
                read as follows:
                    ``(A) projects that assist national employers in 
                connecting with the workforce investment system 
                established under this title in order to facilitate the 
                recruitment and employment of needed workers and to 
                provide information to such system on skills and 
                occupations in demand;
                    ``(B) projects that promote the development of 
                systems that will improve the effectiveness and 
                efficiency of programs carried out under this title;
                    ``(C) projects that focus on opportunities for 
                employment in industries and sectors of industries that 
                are experiencing or are likely to experience high rates 
                of growth, including those relating to information 
                technology;
                    ``(D) projects carried out by States and local 
                areas to test innovative approaches to delivering 
                employment-related services;'';
                    (C) by striking subparagraph (E);
                    (D) by redesignating subparagraphs (F) and (G) as 
                subparagraphs (E) and (F), respectively;
                    (E) in subparagraph (F) (as so redesignated, by 
                striking ``; and'' and inserting a semicolon;
                    (F) by inserting after subparagraph (F) (as so 
                redesignated) the following:
                    ``(G) projects carried out by States and local 
                areas to assist adults or out of school youth in 
                starting a small business, including training and 
                assistance in business or financial management or in 
                developing other skills necessary to operate a 
                business;''; and
                    (G) by amending subparagraph (H) to read as 
                follows:
                    ``(H) projects that focus on opportunities for 
                employment in industries and sectors of industries that 
                are being transformed by technology and innovation 
                requiring new knowledge or skill sets for workers, 
                including advanced manufacturing; and''; and
            (2) in paragraph (2)--
                    (A) by striking subparagraph (B); and
                    (B) by redesignating subparagraph (C) as 
                subparagraph (B).
    (b) Multiservice Projects.--Section 171(c)(2)(B) (29 U.S.C. 
2916(c)(2)(B)) is amended to read as follows:
                    ``(B) Net impact studies and reports.--The 
                Secretary shall conduct studies to determine the net 
                impacts of programs, services, and activities carried 
                out under this title. The Secretary shall prepare and 
                disseminate to Congress and the public reports 
                containing the results of such studies.''.

SEC. 122. COMMUNITY-BASED JOB TRAINING.

    Section 171(d) is amended to read as follows:
    ``(d) Community-Based Job Training.--
            ``(1) Demonstration project.--In addition to the 
        demonstration projects under subsection (b), the Secretary may 
        establish and implement a national demonstration project 
        designed to develop local solutions to the workforce challenges 
        facing high-growth, high-skill industries with labor shortages, 
        and increase opportunities for workers to gain access to 
        employment in high-growth, high-demand occupations by promoting 
        the establishment of partnerships among education entities, the 
        workforce investment system, and businesses in high-growth, 
        high-skill industries.
            ``(2) Grants.--In carrying out the demonstration project 
        under this subsection, the Secretary shall award competitive 
        grants, in accordance with generally applicable Federal 
        requirements, to eligible entities to carry out activities 
        authorized under this subsection.
            ``(3) Definitions.--
                    ``(A) Eligible entity.--In this subsection, the 
                term `eligible entity' means a community college or 
                consortium of community colleges that shall work in 
                conjunction with--
                            ``(i) the local workforce investment 
                        system; and
                            ``(ii) business or businesses in a 
                        qualified industry or an industry association 
                        in a qualified industry.
                    ``(B) Qualified industry.--In this subsection, the 
                term `qualified industry' means an industry or economic 
                sector that is projected to experience significant 
                growth, such as an industry and economic sector that--
                            ``(i) is projected to add substantial 
                        numbers of new jobs to the economy;
                            ``(ii) has significant impact on the 
                        economy;
                            ``(iii) impacts the growth of other 
                        industries and economic sectors;
                            ``(iv) is being transformed by technology 
                        and innovation requiring new knowledge or skill 
                        sets for workers;
                            ``(v) is a new or emerging industry or 
                        economic sector that is projected to grow; or
                            ``(vi) has high-skilled occupations and 
                        significant labor shortages in the local area.
                    ``(C) Community college.--As used in this 
                subsection, the term `community college' means an 
                institution of higher education, as defined in section 
                101 of the Higher Education Act of 1965 (20 U.S.C. 
                1001), that provides not less than a 2-year program 
                that is acceptable for full credit toward a bachelor's 
                degree, or is a tribally controlled college or 
                university.
            ``(4) Authority to require non-federal share.--The 
        Secretary may require that recipients of grants under this 
        subsection provide a non-Federal share, from either cash or 
        noncash resources, of the costs of activities carried out under 
        a grant awarded under this subsection.
            ``(5) Use of funds.--Grants awarded under this subsection 
        may be used for--
                    ``(A) the development, by a community college, in 
                consultation with representatives of qualified 
                industries, of rigorous training and education programs 
                related to employment in a qualified industry 
                identified in the eligible entity's application;
                    ``(B) training of adults and dislocated workers in 
                the skills and competencies needed to obtain or upgrade 
                employment in a qualified industry identified in the 
                eligible entity's application;
                    ``(C) disseminating to adults and dislocated 
                workers, through the one-stop delivery system, 
                information on high-growth, high-demand occupations in 
                qualified industries;
                    ``(D) placing, through the one-stop delivery 
                system, trained individuals into employment in 
                qualified industries; and
                    ``(E) increasing the integration of community 
                colleges with activities of businesses and the one-stop 
                delivery system to meet the training needs for 
                qualified industries.
            ``(6) 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 eligible entity that 
                will offer training under the grant;
                    ``(B) an economic analysis of the local labor 
                market to identify high-growth, high-demand industries, 
                identify the workforce issues faced by those 
                industries, and potential participants in programs 
                funded under this subsection;
                    ``(C) a description of the qualified industry for 
                which training will occur and the availability of 
                competencies on which training will be based and how 
                the grant will help workers acquire the competencies 
                and skills necessary for employment;
                    ``(D) an assurance that the application was 
                developed in consultation with the local board or 
                boards and businesses, including small businesses, in 
                the geographic area or areas where the proposed grant 
                will be used;
                    ``(E) performance measures for the grant, including 
                expected number of individuals to be trained in a 
                qualified industry, the employment and retention rates 
                for such individuals in a qualified industry, and 
                earnings increases for such individuals;
                    ``(F) a description of how the activities funded by 
                the proposed grant will be coordinated with activities 
                provided through the one-stop delivery system in the 
                local area or areas; and
                    ``(G) a description of any local or private 
                resources that will support the activities carried out 
                under this subsection and allow the entity to carry out 
                and expand such activities after the expiration of the 
                grant.
            ``(7) Factors for award of grant.--
                    ``(A) In general.--In awarding grants under this 
                subsection the Secretary shall consider--
                            ``(i) the extent of public and private 
                        collaboration, including existing partnerships 
                        among industries, community colleges, and the 
                        public workforce investment system;
                            ``(ii) the extent to which the grant will 
                        provide job seekers with employment 
                        opportunities in high-growth, high-demand 
                        occupations;
                            ``(iii) the extent to which the grant will 
                        expand the eligible entity and local one-stop 
                        delivery system's capacity to be demand-driven 
                        and responsive to local economic needs;
                            ``(iv) the extent to which local businesses 
                        commit to hire or retain individuals who 
                        receive training through the grant; and
                            ``(v) the extent to which the eligible 
                        entity commits to make any newly developed 
                        products, such as competencies or training 
                        curriculum, available for distribution 
                        nationally.
                    ``(B) Leveraging of resources.--In awarding grants 
                under this subsection, the Secretary shall also 
                consider--
                            ``(i) the extent to which local or private 
                        resources, in addition to the funds provided 
                        under this subsection, will be made available 
                        to support the activities carried out under 
                        this subsection; and
                            ``(ii) the ability of an eligible entity to 
                        continue to carry out and expand such 
                        activities after the expiration of the grant.
                    ``(C) Distribution of grants.--In awarding grants 
                under this subsection the Secretary shall ensure an 
                equitable distribution of such grants across 
                geographically diverse areas.
            ``(8) Performance accountability and evaluation.--
                    ``(A) Performance accountability.--The Secretary 
                shall require an eligible entity that receives a grant 
                under this subsection to report to the Secretary on the 
                employment outcomes obtained by individuals receiving 
                training under this subsection using the indicators of 
                performance identified in the eligible entity's grant 
                application.
                    ``(B) Evaluation.--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. 123. EVALUATIONS.

    (a) Impact Analysis.--Section 172(a)(4) (29 U.S.C. 2917(a)(4)) is 
amended to read as follows:
            ``(4) the impact of receiving services and not receiving 
        services under such programs and activities on the community, 
        businesses, and individuals;''; and
    (b) Techniques.--Section 172(c) (29 U.S.C. 2917(c)) is amended to 
read as follows:
    ``(c) Techniques.--Evaluations conducted under this section shall 
utilize appropriate and rigorous methodology and research designs, 
including the use of control groups chosen by scientific random 
assignment methodologies, quasi-experimental methods, impact analysis 
and the use of administrative data. The Secretary shall conduct an 
impact analysis, as described in subsection (a)(4), of the formula 
grant programs under subtitle B not later than 2010, and thereafter 
shall conduct such an analysis not less than once every four years.''.

SEC. 124. NATIONAL DISLOCATED WORKER GRANTS.

    (a) In General.--Section 173 (29 U.S.C. 2916) is amended--
            (1) by amending the designation and heading to read as 
        follows:

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

        and
            (2) in subsection (a)--
                    (A) by striking ``national emergency grants'' in 
                the matter preceding paragraph (1) and inserting 
                ``national dislocated worker grants''; and
                    (B) in paragraph (1), by striking ``subsection 
                (c)'' and inserting ``subsection (b)''.
            (3) by striking subsections (b) and (e) and redesignating 
        subsections (c), (d), (f), and (g) as subsections (b) through 
        (e), respectively;
            (4) in subsection (b)(1)(B) as so redesignated), by 
        striking ``, and other entities'' and all that follows and 
        inserting a period; and
            (5) in subsection (b)(2)(A) (as so redesignated)--
                    (A) in clause (iii), by striking ``; or'' and 
                inserting a semicolon;
                    (B) in clause (iv)(IV) by striking the period and 
                inserting ``; or''; and
                    (C) by inserting at the end the following:
                            ``(v) is the spouse of a member of the 
                        Armed Forces who is on active duty or full-time 
                        National Guard duty, or who was recently 
                        separated from such duties, and such spouse is 
                        in need of employment and training assistance 
                        to obtain or retain employment.''.
    (b) Conforming Amendment.--The table of contents in section 1(b) is 
amended by amending the item related to section 173 to read as follows:

``Sec. 173. National dislocated worker grants.''.

SEC. 125. 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 ``2008 through 
2012''.
    (b) Reservations.--Section 174(b) is amended to read as follows:
    ``(b) Technical Assistance; Demonstration and Pilot Projects; 
Evaluations; Incentive Grants.--
            ``(1) Demonstration and pilot projects.--There are 
        authorized to be appropriated to carry out section 171, such 
        sums as may be necessary for fiscal years 2008 through 2012.
            ``(2) Technical assistance, evaluations.--There are 
        authorized to be appropriated to carry out section 170, section 
        172, and section 136 such sums as may be necessary for each of 
        fiscal years 2008 through 2012.''.

SEC. 126. REQUIREMENTS AND RESTRICTIONS.

    (a) In General.--Section 181(c)(2)(A) (29 U.S.C. 2931(c)(2)(A)) is 
amended in the matter preceding clause (i) by striking ``shall'' and 
inserting ``may''.
    (b) Limitations.--Section 181(e) (29 U.S.C. 2931(e)) is amended by 
striking ``training for'' and inserting ``the entry into employment, 
retention in employment, or increases in earnings of''.
    (c) Salary Cap.--Section 181 (29 U.S.C. 2931) is further amended by 
adding at the end the following new subsection:
    ``(g) Salary and Bonus Limitation.--No funds provided under this 
title shall be used by a recipient or subrecipient of such funds to pay 
the salary and bonuses of an individual, either as direct costs or 
indirect costs, at a rate in excess of Level II of the Federal 
Executive Pay Schedule (5 U.S.C. 5313). This limitation shall not apply 
to vendors providing goods and services as defined in OMB Circular A-
133. Where States are recipients of such funds, States may establish a 
lower limit for salaries and bonuses of those receiving salaries and 
bonuses from subrecipients of such funds, taking into account factors 
including the relative cost-of-living in the State, the compensation 
levels for comparable State or local government employees, and the size 
of the organizations that administer the programs.''.
    (d) Reports to Congress.--Section 185 (29 U.S.C. 2935) is amended--
            (1) in subsection (c)--
                    (A) in paragraph (2), by striking ``and'' after the 
                semicolon;
                    (B) in paragraph (3), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(4) shall have the option to submit or disseminate 
        electronically any reports, records, plans, or any other data 
        that are required to be collected or disseminated under this 
        title.''; and
            (2) in paragraph (e)(2), by inserting ``and the Secretary 
        shall submit to the Committee on Education and Labor of the 
        House of Representatives and the Committee on Health, 
        Education, Labor, and Pensions of the Senate,'' after 
        ``Secretary,''.

SEC. 127. NONDISCRIMINATION.

    Section 188(a)(2) (29 U.S.C. 2931(a)(2)) is amended to read as 
follows:
            ``(2) Prohibition of discrimination regarding 
        participation, benefits, and employment.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), no individual shall be excluded from 
                participation in, denied the benefits of, subjected to 
                discrimination under, or denied employment in the 
                administration of or in connection with, any such 
                program or activity because of race, color, religion, 
                sex (except as otherwise permitted under title IX of 
                the Education Amendments of 1972), national origin, 
                age, disability, or political affiliation or belief.
                    ``(B) Exemption for religious organizations.--
                Subparagraph (A) shall not apply to a recipient of 
                financial assistance under this title that is a 
                religious corporation, association, educational 
                institution, or society, with respect to the employment 
                of individuals of a particular religion to perform work 
                connected with the carrying on by such corporation, 
                association, educational institution, or society of its 
                activities. Such recipients shall comply with the other 
                requirements contained in subparagraph (A).''.

SEC. 128. ADMINISTRATIVE PROVISIONS.

    (a) Program Year.--Section 189(g)(1) (29 U.S.C. 2939(g)(1)) is 
amended to read as follows:
            ``(1) In general.--Appropriations for any fiscal year for 
        programs and activities carried out under this title shall be 
        available for obligation only on the basis of a program year. 
        The program year shall begin on July 1 in the fiscal year for 
        which the appropriation is made.''.
    (b) Availability.--Section 189(g)(2) (29 U.S.C. 2939(g)(2)) is 
amended by striking ``each State'' and inserting ``each recipient''.
    (c) General Waivers.--Section 189(i)(4) (29 U.S.C. 2939(i)(4)) is 
amended--
            (1) in subparagraph (A)--
                    (A) in the matter preceding clause (i), by 
                inserting ``, or in accordance with subparagraph (D)'' 
                after ``subparagraph (B)''; and
                    (B) by striking clause (ii), the clause (i) 
                designation and the dash preceding such designation, 
                and moving the remaining text flush with the preceding 
                matter; and
            (2) by adding the following subparagraph:
                    ``(D) Expedited process for extending approved 
                waivers to additional states.--In lieu of the 
                requirements of subparagraphs (B) and (C), the 
                Secretary may establish an expedited procedure for the 
                purpose of extending to additional States the waiver of 
                statutory or regulatory requirements that have been 
                approved for a State pursuant to a request under 
                subparagraph (B). Such procedure shall ensure that the 
                extension of such waivers to additional States are 
                accompanied by appropriate conditions relating the 
                implementation of such waivers.''.

SEC. 129. STATE LEGISLATIVE AUTHORITY.

    Section 191is amended--
            (1) in subsection (a), by striking ``consistent with the 
        provisions of this title'' and inserting ``consistent with 
        State law and the provisions of this title''; and
            (2) in subsection (a), by striking ``consistent with the 
        terms and conditions required under this title'' and inserting 
        ``consistent with State law and the terms and conditions 
        required under this title''.

SEC. 130. WORKFORCE INNOVATION IN REGIONAL ECONOMIC DEVELOPMENT.

    (a) Workforce Innovation in Regional Economic Development.--Section 
192 (29 U.S.C. 2942) is amended to read as follows:

``SEC. 192. WORKFORCE INNOVATION IN REGIONAL ECONOMIC DEVELOPMENT.

    ``(a) Workforce Innovation in Regional Economic Development 
Plans.--
            ``(1) In general.--The Secretary, in cooperation with other 
        federal agency heads responsible for the administration of 
        programs included in plans submitted under this subsection, may 
        approve Workforce Innovation in Regional Economic Development 
        (in this subsection referred to as WIRED) plans submitted by a 
        State pursuant to paragraph (2) to support the development of 
        regional economies in order to foster economic development, 
        expand employment, and advancement opportunities for workers 
        and to promote the creation of high-skill and high-wage 
        opportunities.
            ``(2) Contents of plan.--To have a WIRED plan approved 
        under this subsection, a State and the region or regions 
        identified in subparagraph (A) shall jointly submit a plan to 
        the Secretary at such time, in such manner, and containing such 
        information as the Secretary may require, including--
                    ``(A) the identification of the multi-county region 
                or regions that is to be the focus of the activities 
                provided under the plan, including identification of 
                the communities in the region that share common 
                characteristics, and a description of why the selected 
                area comprises a regional economy;
                    ``(B) a description of the broad-based regional 
                partnership that has been created for the region 
                identified in subparagraph (A) representing the major 
                assets of the region, consistent with the requirements 
                of paragraph (3), and that will assist in developing 
                the economic vision described in subparagraph (D), the 
                strategies described in subparagraph (E), and provide a 
                forum for regional economic decision-making, including 
                a description of the partnership's involvement, 
                particularly that of representatives of affected local 
                boards and chief elected officials, in the development 
                of the plan;
                    ``(C) a description of the assets of the region 
                identified in subparagraph (A), based on a regional 
                assessment, and identification of the strengths, 
                weaknesses, opportunities, and risks based on those 
                assets;
                    ``(D) a description of an economic vision for the 
                region identified in subparagraph (A), based on the 
                identified strengths and assets described in 
                subparagraph (C), and evidence of support for that 
                vision from the broad-based regional partnership 
                described in subparagraph (B);
                    ``(E) a description of the talent development and 
                related strategies that provide a blueprint for how to 
                achieve the economic vision for the region as described 
                in subparagraph (D), including the activities to be 
                carried out under this subsection, consistent with 
                paragraphs (5) and (6), and the identification of 
                specific goals associated with those strategies;
                    ``(F) information on the workforce development 
                programs to be integrated in the region, in accordance 
                with the requirements of paragraph (4), into an 
                integrated workforce development program, including--
                            ``(i) identification of the programs to be 
                        integrated;
                            ``(ii) the amount and proportion of the 
                        resources available to the region under each of 
                        the integrated programs to carry out the 
                        strategies described in subparagraph (E);
                            ``(iii) a description of how these 
                        resources will be used to accomplish the vision 
                        identified in subparagraph (D), including the 
                        services to be provided and how such services 
                        will be provided, consistent with clause (iv) 
                        and paragraph (5);
                            ``(iv) assurances that in carrying out the 
                        wired plan--
                                    ``(I) the region, through the 
                                integrated workforce development 
                                program, will maintain a local 
                                workforce investment board, or a 
                                regional workforce investment board, 
                                that is substantially similar to the 
                                local workforce investment boards 
                                required under section 117 of this Act, 
                                that such board will carry out 
                                functions that are substantially 
                                similar to those described under 
                                section 117(d), and, that such region 
                                shall submit to the State for approval 
                                a local plan for the region that is 
                                substantially similar to the local 
                                plans required under section 118 of 
                                this Act;
                                    ``(II) the region, through the 
                                integrated workforce development 
                                program, will maintain a one-stop 
                                delivery system that is consistent with 
                                the requirements of section 121 of this 
                                Act;
                                    ``(III) the region, through the 
                                integrated workforce development 
                                program, will serve populations 
                                consistent with the populations served 
                                by the programs being integrated, and 
                                will provide universal access to work 
                                ready services as described in section 
                                134(d)(2) of this Act;
                                    ``(IV) the region, in carrying out 
                                the integrated workforce development 
                                program, will comply with the veterans' 
                                priority of service requirement under 
                                section 4215 of title 38, United States 
                                Code;
                                    ``(V) of the funds expended under 
                                the integrated workforce development 
                                program each year, not more than 10 
                                percent of such funds will be expended 
                                on the costs of administration (as 
                                defined by the Secretary);
                                    ``(VI) the services provided under 
                                the integrated workforce development 
                                program will be coordinated with 
                                employment-related programs not 
                                included under the integrated workforce 
                                program;
                                    ``(VII) the region, in carrying out 
                                the integrated workforce development 
                                program, will comply with requirements 
                                under this title relating to wage and 
                                labor standards (including 
                                nondisplacement provisions), grievance 
                                procedures and judicial review, and 
                                nondiscrimination;
                    ``(G) an assurance that each local workforce board 
                and chief elected official included in the region that 
                will carry out the integrated workforce development 
                plan has approved the plan;
                    ``(H) information on the community and economic 
                development programs, if any, that will provide a 
                portion of funds that will be integrated to carry out 
                the strategies described in subparagraph (E), in 
                accordance with the requirements of paragraph (6), 
                including--
                            ``(i) identification of the included 
                        community and economic development programs;
                            ``(ii) the amount and proportion of the 
                        resources available to the State under each 
                        such program that will be used in the region to 
                        carry out the strategies described in 
                        subparagraph (E);
                            ``(iii) a description of how these 
                        resources will be used to assist in 
                        accomplishing the vision identified in 
                        subparagraph (D), including the activities to 
                        be carried out;
                    ``(I) in addition to the resources described under 
                subparagraphs (F) and (G), identification of other 
                resources that will be used to support the strategies 
                of the region described in subparagraph (E), from a 
                wide range of sources, including foundations, private 
                investment such as venture capital, and federal, state, 
                and local governments.
            ``(3) Broad-based regional partnership.--For purposes of 
        this subsection, a broad-based regional partnership--
                    ``(A) shall include--
                            ``(i) representatives from each of the 
                        local workforce investment systems in the 
                        region identified under paragraph (2)(A), such 
                        as the chairpersons or executive directors of 
                        affected local workforce investment boards in 
                        such region;
                            ``(ii) representatives of the education 
                        system in the region identified under paragraph 
                        (2)(A), including representatives from each of 
                        the following:
                                    ``(I) The K-12 public school 
                                systems;
                                    ``(II) Community colleges; and
                                    ``(III) Four-year educational 
                                institutions;
                            ``(iii) representatives of businesses and 
                        industry associations in the region identified 
                        under paragraph (2)(A);
                            ``(iv) the chief elected officials from 
                        each of the affected local areas identified 
                        under paragraph (2)(A); and
                            ``(v) representatives of local and regional 
                        economic development agencies in the region 
                        identified under paragraph (2)(A); and
                    ``(B) may include--
                            ``(i) representatives of the philanthropic 
                        community;
                            ``(ii) representatives of postsecondary 
                        education and training providers in addition to 
                        those described in subparagraph (A)(ii);
                            ``(iii) representatives of private 
                        investment entities such as seed and venture 
                        capital organizations; investor networks; and 
                        entrepreneurs;
                            ``(iv) representatives of faith and 
                        community-based organizations; and
                            ``(v) representatives of such other 
                        Federal, state or local entities and 
                        organizations that may enhance the carrying out 
                        of the activities of the partnership.
            ``(4) Integration of workforce development services 
        authorized.--
                    ``(A) Authorization for integration.--In carrying 
                out this subsection, the Secretary of Labor, in 
                cooperation with the federal agency heads responsible 
                for the administration of the workforce development 
                programs described in subparagraph (D) that are 
                included in the WIRED plan submitted by the State, 
                shall, upon the approval of the plan submitted under 
                paragraph (2), authorize the State to integrate 
                programs as described in subparagraph (B).
                    ``(B) Integration.--The authorization shall give 
                the State the authority to integrate, in accordance 
                with such approved plan, the federally-funded programs 
                described in subparagraph (D) that are included in the 
                approved plan, in a manner that integrates those 
                programs into a single, coordinated, comprehensive 
                workforce development program to achieve the economic 
                vision identified in such plan for the region.
                    ``(C) Effect on program requirements.--The 
                provisions of the approved grant application and the 
                requirements of this subsection shall supersede the 
                requirements of the statutes authorizing the programs 
                included for integration in such approved plan, except 
                as otherwise specified in this subsection.
                    ``(D) Included workforce development programs.--
                            ``(i) Mandatory programs.--A WIRED plan 
                        authorized under this subsection shall include 
                        the workforce investment activities for adults 
                        authorized under chapter 5 of subtitle B.
                            ``(ii) Additional programs.--In addition to 
                        the integration of the programs described in 
                        clause (i) into a single program, a WIRED plan 
                        may include integration of one or more of the 
                        following programs as part of such single 
                        program--
                                    ``(I) the program of workforce 
                                investment activities for youth 
                                authorized under chapter 4 of subtitle 
                                B; or
                                    ``(II) any of the other required 
                                one-stop partner programs and 
                                activities described in section 
                                121(b)(1)(B) of this Act.
            ``(5) Workforce development activities to be carried out 
        under wired plan.--The workforce development activities carried 
        out under a WIRED plan may include--
                    ``(A) job training and related activities for 
                workers to assist them in gaining the skills and 
                competencies needed to obtain or upgrade employment in 
                industries or economic sectors projected to experience 
                significant growth in the region identified in 
                paragraph (2)(A), including--
                            ``(i) activities supporting talent 
                        development related to entrepreneurship and 
                        small business development; and
                            ``(ii) the purchase of equipment to train 
                        job seekers and workers for high-growth 
                        occupations;
                    ``(B) activities to enhance the training and 
                related activities described in subparagraph (A) and to 
                promote workforce development in the region identified 
                in paragraph (2)(A), including--
                            ``(i) the development and implementation of 
                        model activities, such as developing 
                        appropriate curricula to build core 
                        competencies and train workers in the region;
                            ``(ii) identifying and disseminating career 
                        and skill information relating to the region;
                            ``(iii) developing or purchasing regional 
                        data tools or systems to deepen understanding 
                        of the regional economy and labor market; and
                            ``(iv) integrated regional planning, such 
                        as increasing the integration of community and 
                        technical college activities with activities of 
                        businesses and the public workforce investment 
                        system to meet the training needs of high 
                        growth industries in the region.
                    ``(C) appropriate employment-related activities and 
                services authorized under the workforce development 
                programs that are integrated under the plan in 
                accordance with paragraphs (2)(F) and (4) that will 
                assist achieving the economic vision described in 
                paragraph (2)(D) and in implementing the strategies 
                described in paragraph (2)(E).
            ``(6) Integration of community and economic development 
        funds authorized.--
                    ``(A) Authorization for integration of funds.--In 
                carrying out this subsection, the Secretary of Labor, 
                in cooperation with the federal agency heads 
                responsible for the administration of the community and 
                economic development programs described in subparagraph 
                (D) that are included in the WIRED plan submitted by 
                the State, shall, upon the approval of the plan 
                submitted under paragraph (2), authorize the State to 
                integrate the portion of the funds from such programs 
                to assist in implementing such plans.
                    ``(B) Integration.--The authorization shall give 
                the State the authority to integrate, in accordance 
                with such approved plan, funds provided under programs 
                identified from subparagraph (D) to carry out the 
                community and economic development activities described 
                in paragraph (2)(G).
                    ``(C) Effect on program requirements.--The 
                integrated funds may be used, consistent with the 
                description contained in paragraph (2)(G), to carry out 
                any of the activities authorized under any the programs 
                described in subparagraph (D) that are included in the 
                plan.
                    ``(D) Included community and economic development 
                programs.--The funds that may be integrated under this 
                paragraph are funds provided under--
                            ``(i) Community Development Block Grants 
                        authorized under title I of the Housing and 
                        Community Development Act of 1974 (42 U.S.C. 
                        5301-5321);
                            ``(ii) grants authorized under the 
                        Community Services Block Grant Act (42 U.S.C. 
                        9901 et seq.);
                            ``(iii) Public Works and Economic 
                        Development Grants authorized under section 201 
                        of the Public Works and Economic Development 
                        Act of 1965 (42 U.S.C. 3141);
                            ``(iv) Rural Business Enterprise Grants 
                        authorized under the Consolidated Farm and 
                        Rural Development Act (7 U.S.C. 1932);
                            ``(v) Rural Business Opportunity Grants 
                        authorized under section 741(a)(11) of the 
                        Federal Agriculture Improvement and Reform Act 
                        of 1996 (42 U.S.C. 1926(a)(11);
                            ``(vi) grants authorized under the 
                        Brownfields Economic Development Initiative; 
                        and
                            ``(vii) Rural Housing and Economic 
                        Development grants.
            ``(7) Special rule.--If a State elects not to submit a 
        WIRED plan described in paragraph (2) for approval or does not 
        have a plan approved under paragraph (2), the Secretary may 
        approve a WIRED plan submitted by a local workforce investment 
        board or a regional workforce investment board that serves a 
        region within such State, if the plan meets all other 
        requirements of this section.
            ``(8) Performance measures and reporting.--
                    ``(A) Performance measures.--The Secretary shall 
                establish performance measures that will be used to 
                evaluate the effectiveness of activities carried out 
                under this subsection and shall require such entities 
                to report to the Secretary on the employment outcomes 
                obtained by individuals receiving training under this 
                subsection using those core indicators of performance 
                described in section 136(b)(2).
                    ``(B) Reporting.--Each State with an approved plan 
                under this subsection shall ensure that records are 
                maintained and reports are submitted, in such form and 
                containing such information, as the Secretary may 
                require regarding the performance of programs and 
                activities carried out under this subsection.
            ``(9) Technical assistance and evaluation.--
                    ``(A) Technical assistance.--The Secretary shall 
                provide such staff training, technical assistance, and 
                other activities as the Secretary deems appropriate to 
                support the implementation of this subsection.
                    ``(B) Evaluation.--The Secretary may require that 
                States with an approved plan under this subsection to 
                participate in an evaluation of activities carried out 
                under this subsection, including an evaluation using 
                the techniques described in section 172(c).
            ``(10) Plan review.--Upon receipt of a WIRED plan from the 
        Governor, the Secretary shall consult with the Federal agency 
        head responsible for the administration of any of the programs 
        included in the plan pursuant to paragraph (4) or (6).
            ``(11) Federal responsibilities.--
                    ``(A) Interagency memorandum of understanding.--
                Within 90 days following the date of enactment of this 
                subsection, the Secretary and the federal agency heads 
                responsible for programs that could be included in a 
                plan approved under this subsection pursuant to 
                paragraph (4) or (6) shall enter into an 
                interdepartmental memorandum of agreement providing for 
                the implementation of WIRED plans with respect to the 
                integration of programs and funds administered by each 
                Secretary.
                    ``(B) Interagency funds transfers authorized.--The 
                Secretary and the federal agency heads responsible for 
                the programs that are included in a plan approved under 
                paragraph (4) or (6) are authorized to take such action 
                as may be necessary to provide for intra-agency or 
                interagency transfers of funds otherwise available to a 
                State in order to further the purposes of this 
                subsection.
            ``(12) Administration of funds.--
                    ``(A) Separate records not required.--Nothing in 
                this subsection shall be construed as requiring the 
                region to maintain separate records tracing any 
                services or activities conducted under an approved 
                WIRED plan to the programs under which funds were 
                originally authorized, nor shall the State be required 
                to allocate expenditures among such programs.
                    ``(B) Single audit act.--Nothing in this section 
                shall be construed to interfere with the ability of the 
                Secretary to fulfill the responsibilities for the 
                safeguarding of Federal funds pursuant to the Single 
                Audit Act of 1984.
    ``(b) Authority To Carry Out Additional WIRED Activities Under 
WIA.--
            ``(1) Authorization for use of certain funds under wia.--
        Funds available under sections 128(a), 133(a), 171, and 173 of 
        this Act may be used by recipients and subrecipients of those 
        funds for WIRED activities, as defined in paragraph (2), in 
        addition to the other activities for which such funds are 
        authorized to be used.
            ``(2) Definition.--For purposes of this subsection, WIRED 
        activities include--
                    ``(A) WIRED planning activities, including--
                            ``(i) defining the regional economy;
                            ``(ii) creating a broad-based regional 
                        partnership that assists in developing the 
                        economic vision described in clause (iv), the 
                        strategies described in clause (v), and that 
                        provides a forum for regional economic 
                        decision-making;
                            ``(iii) conducting an assessment of the 
                        regional economy to map the assets of a region 
                        and identify the strengths, weaknesses, 
                        opportunities and risks based on those assets;
                            ``(iv) developing an economic vision based 
                        on those strengths and assets;
                            ``(v) developing strategies and 
                        corresponding implementation plans that 
                        identify specific goals and tasks and provides 
                        a blueprint for how to achieve the economic 
                        vision for the region; and
                            ``(vi) identifying resources to support the 
                        plan of the region;
                    ``(B) job training and related activities for 
                workers to assist them in gaining the skills and 
                competencies needed to obtain or upgrade employment in 
                industries or economic sectors projected to experience 
                significant growth in the region, including--
                            ``(i) activities supporting talent 
                        development related to entrepreneurship and 
                        small business development in the region; and
                            ``(ii) the purchase of equipment to train 
                        job seekers and workers for high-growth 
                        occupations in the region; and
                    ``(C) activities to enhance training and related 
                activities and to promote workforce development in the 
                region, including--
                            ``(i) the development and implementation of 
                        model activities, such as developing 
                        appropriate curricula to build core 
                        competencies and train workers in the region;
                            ``(ii) identifying and disseminating career 
                        and skill information relating to the region;
                            ``(iii) developing or purchasing regional 
                        data tools or systems to deepen understanding 
                        of the regional economy and labor market; and
                            ``(iv) integrated regional planning, such 
                        as increasing the integration of community and 
                        technical college activities with activities of 
                        businesses and the public workforce investment 
                        system to meet the training needs of businesses 
                        in the region.''.

SEC. 131. GENERAL PROGRAM REQUIREMENTS.

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

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

SEC. 201. TABLE OF CONTENTS.

    The table of contents in section 1(b) is amended by amending the 
items relating to title II to read as follows:

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

``Sec. 201. Short title.
``Sec. 202. Purpose.
``Sec. 203. Definitions.
``Sec. 204. Home schools.
``Sec. 205. Authorization of appropriations.
                    ``Chapter 1--Federal Provisions

``Sec. 211. Reservation of funds; grants to eligible agencies; 
                            allotments.
``Sec. 212. Performance accountability system.
``Sec. 213. Incentive grants for States.
                     ``Chapter 2--State Provisions

``Sec. 221. State administration.
``Sec. 222. State distribution of funds; matching requirement.
``Sec. 223. State leadership activities.
``Sec. 224. State plan.
``Sec. 225. Programs for corrections education and other 
                            institutionalized individuals.
                     ``Chapter 3--Local Provisions

``Sec. 231. Grants and contracts for eligible providers.
``Sec. 232. Local application.
``Sec. 233. Local administrative cost limits.
                    ``Chapter 4--General Provisions

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

SEC. 202. AMENDMENT.

    Title II (29 U.S.C. 2901 et seq.) is amended to read as follows:

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

``SEC. 201. SHORT TITLE.

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

``SEC. 202. PURPOSE.

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

``SEC. 203. DEFINITIONS.

    ``In this title:
            ``(1) Adult education, basic skills, and family literacy 
        education programs.--The term `adult education, basic skills, 
        and family literacy education programs' means a sequence of 
        academic instruction and educational services below the 
        postsecondary level that increase an individual's ability to 
        read, write, and speak in English and perform mathematical 
        computations leading to a level of proficiency equivalent to at 
        least a secondary school completion that is provided for 
        individuals--
                    ``(A) who are at least 16 years of age;
                    ``(B) who are not enrolled or required to be 
                enrolled in secondary school under State law; and
                    ``(C) who--
                            ``(i) lack sufficient mastery of basic 
                        reading, writing, speaking, and math skills to 
                        enable the individuals to function effectively 
                        in society;
                            ``(ii) do not have a secondary school 
                        diploma, General Educational Development 
                        credential (GED), or other State-recognized 
                        equivalent and have not achieved an equivalent 
                        level of education; or
                            ``(iii) are unable to read, write, or speak 
                        the English language.
            ``(2) Eligible agency.--The term `eligible agency'--
                    ``(A) means the primary entity or agency in a State 
                or an outlying area responsible for administering or 
                supervising policy for adult education, basic skills, 
                and family literacy education programs in the State or 
                outlying area, respectively, consistent with the law of 
                the State or outlying area, respectively; and
                    ``(B) may be the State educational agency, the 
                State agency responsible for administering workforce 
                investment activities, or the State agency responsible 
                for administering community or technical colleges.
            ``(3) Eligible provider.--The term `eligible provider' 
        means--
                    ``(A) a local educational agency;
                    ``(B) a community-based or faith-based organization 
                of demonstrated effectiveness;
                    ``(C) a volunteer literacy organization of 
                demonstrated effectiveness;
                    ``(D) an institution of higher education;
                    ``(E) a public or private educational agency;
                    ``(F) a library;
                    ``(G) a public housing authority;
                    ``(H) an institution that is not described in any 
                of subparagraphs (A) through (G) and has the ability to 
                provide adult education, basic skills, and family 
                literacy education programs to adults and families; or
                    ``(I) a consortium of the agencies, organizations, 
                institutions, libraries, or authorities described in 
                any of subparagraphs (A) through (H).
            ``(4) English language acquisition program.--The term 
        `English language acquisition program' means a program of 
        instruction designed to help individuals with limited English 
        proficiency achieve competence in reading, writing, and 
        speaking the English language.
            ``(5) Essential components of reading instruction.--The 
        term `essential components of reading instruction' has the 
        meaning given to that term in section 1208 of the Elementary 
        and Secondary Education Act of 1965.
            ``(6) Family literacy education program.--The term `family 
        literacy education program' means an educational program that--
                    ``(A) assists parents and students, on a voluntary 
                basis, in achieving the purposes of this title as 
                described in section 202; and
                    ``(B) is of sufficient intensity in terms of hours 
                and of sufficient duration to make sustainable changes 
                in a family, is based upon scientifically based 
                research, and, for the purpose of substantially 
                increasing the ability of parents and children to read, 
                write, and speak English, integrates--
                            ``(i) interactive literacy activities 
                        between parents and their children;
                            ``(ii) training for parents regarding how 
                        to be the primary teacher for their children 
                        and full partners in the education of their 
                        children;
                            ``(iii) parent literacy training that leads 
                        to economic self-sufficiency; and
                            ``(iv) an age-appropriate education to 
                        prepare children for success in school and life 
                        experiences.
            ``(7) Governor.--The term `Governor' means the chief 
        executive officer of a State or outlying area.
            ``(8) Individual with a disability.--
                    ``(A) In general.--The term `individual with a 
                disability' means an individual with any disability (as 
                defined in section 3 of the Americans with Disabilities 
                Act of 1990).
                    ``(B) Individuals with disabilities.--The term 
                `individuals with disabilities' means more than one 
                individual with a disability.
            ``(9) Individual with limited english proficiency.--The 
        term `individual with limited English proficiency' means an 
        adult or out-of-school youth who has limited ability in 
        reading, writing, speaking, or understanding the English 
        language, and--
                    ``(A) whose native language is a language other 
                than English; or
                    ``(B) who lives in a family or community 
                environment where a language other than English is the 
                dominant language.
            ``(10) Institution of higher education.--The term 
        `institution of higher education' has the meaning given to that 
        term in section 101 of the Higher Education Act of 1965.
            ``(11) Literacy.--The term `literacy' means an individual's 
        ability to read, write, and speak in English, compute, and 
        solve problems at a level of proficiency necessary to obtain 
        employment and to successfully make the transition to 
        postsecondary education.
            ``(12) Local educational agency.--The term `local 
        educational agency' has the meaning given to that term in 
        section 9101 of the Elementary and Secondary Education Act of 
        1965.
            ``(13) Outlying area.--The term `outlying area' has the 
        meaning given to that term in section 101 of this Act.
            ``(14) Postsecondary educational institution.--The term 
        `postsecondary educational institution' means--
                    ``(A) an institution of higher education that 
                provides not less than a 2-year program of instruction 
                that is acceptable for credit toward a bachelor's 
                degree;
                    ``(B) a tribally controlled community college; or
                    ``(C) a nonprofit educational institution offering 
                certificate or apprenticeship programs at the 
                postsecondary level.
            ``(15) Reading.--The term `reading' has the meaning given 
        to that term in section 1208 of the Elementary and Secondary 
        Education Act of 1965.
            ``(16) Scientifically based research.--The term 
        `scientifically based research' has the meaning given to that 
        term in section 9101 of the Elementary and Secondary Education 
        Act of 1965.
            ``(17) Secretary.--The term `Secretary' means the Secretary 
        of Education.
            ``(18) State.--The term `State' means each of the several 
        States of the United States, the District of Columbia, and the 
        Commonwealth of Puerto Rico.
            ``(19) State educational agency.--The term `State 
        educational agency' has the meaning given to that term in 
        section 9101 of the Elementary and Secondary Education Act of 
        1965.
            ``(20) Workplace literacy program.--The term `workplace 
        literacy program' means an educational program that is offered 
        in collaboration between eligible providers and employers or 
        employee organizations for the purpose of improving the 
        productivity of the workforce through the improvement of 
        reading, writing, speaking, and math skills.

``SEC. 204. HOME SCHOOLS.

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

``SEC. 205. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this title 
$590,127,000 for fiscal year 2008 and such sums as may be necessary for 
fiscal years 2009 through 2012.

                    ``CHAPTER 1--FEDERAL PROVISIONS

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

    ``(a) Reservation of Funds.--From the sums appropriated under 
section 205 for a fiscal year, the Secretary--
            ``(1) shall reserve up to 1.72 percent for incentive grants 
        under section 213;
            ``(2) shall reserve 1.75 percent to carry out section 242; 
        and
            ``(3) shall reserve up to 1.55 percent to carry out section 
        243.
    ``(b) Grants to Eligible Agencies.--
            ``(1) In general.--From the sums appropriated under section 
        205 and not reserved under subsection (a) for a fiscal year, 
        the Secretary shall award a grant to each eligible agency 
        having a State plan approved under section 224 in an amount 
        equal to the sum of the initial allotment under subsection 
        (c)(1) and the additional allotment under subsection (c)(2) for 
        the eligible agency for the fiscal year, subject to subsections 
        (f) and (g).
            ``(2) Purpose of grants.--The Secretary may award a grant 
        under paragraph (1) only if the eligible agency involved agrees 
        to expend the grant in accordance with the provisions of this 
        title.
    ``(c) Allotments.--
            ``(1) Initial allotments.--From the sums appropriated under 
        section 205 and not reserved under subsection (a) for a fiscal 
        year, the Secretary shall allot to each eligible agency having 
        a State plan approved under section 224--
                    ``(A) $100,000, in the case of an eligible agency 
                serving an outlying area; and
                    ``(B) $250,000, in the case of any other eligible 
                agency.
            ``(2) Additional allotments.--From the sums appropriated 
        under section 205, not reserved under subsection (a), and not 
        allotted under paragraph (1), for a fiscal year, the Secretary 
        shall allot to each eligible agency that receives an initial 
        allotment under paragraph (1) an additional amount that bears 
        the same relationship to such sums as the number of qualifying 
        adults in the State or outlying area served by the eligible 
        agency bears to the number of such adults in all States and 
        outlying areas.
    ``(d) Qualifying Adult.--For the purpose of subsection (c)(2), the 
term `qualifying adult' means an adult who--
            ``(1) is at least 16 years of age;
            ``(2) is beyond the age of compulsory school attendance 
        under the law of the State or outlying area;
            ``(3) does not have a secondary school diploma, General 
        Educational Development credential (GED), or other State-
        recognized equivalent; and
            ``(4) is not enrolled in secondary school.
    ``(e) Special Rule.--
            ``(1) In general.--From amounts made available under 
        subsection (c) for the Republic of Palau, the Secretary shall 
        award grants to Guam, American Samoa, the Commonwealth of the 
        Northern Mariana Islands, or the Republic of Palau to carry out 
        activities described in this title in accordance with the 
        provisions of this title as determined by the Secretary.
            ``(2) Termination of eligibility.--Notwithstanding any 
        other provision of law, the Republic of Palau shall be eligible 
        to receive a grant under this title until an agreement for the 
        extension of United States education assistance under the 
        Compact of Free Association for the Republic of Palau becomes 
        effective.
            ``(3) Administrative costs.--The Secretary may provide not 
        more than 5 percent of the funds made available for grants 
        under this subsection to pay the administrative costs of the 
        Pacific Region Educational Laboratory regarding activities 
        assisted under this subsection.
    ``(f) Hold-Harmless Provisions.--
            ``(1) In general.--Notwithstanding subsection (c), and 
        subject to paragraphs (2) and (3), for fiscal year 2008 and 
        each succeeding fiscal year, no eligible agency shall receive 
        an allotment under this title that is less than 90 percent of 
        the allotment the eligible agency received for the preceding 
        fiscal year under this title.
            ``(2) Exception.--An eligible agency that receives for the 
        preceding fiscal year only an initial allotment under 
        subsection (c)(1) (and no additional allotment under subsection 
        (c)(2)) shall receive an allotment equal to 100 percent of the 
        initial allotment.
            ``(3) Ratable reduction.--If for any fiscal year the amount 
        available for allotment under this title is insufficient to 
        satisfy the provisions of paragraph (1), the Secretary shall 
        ratably reduce the payments to all eligible agencies, as 
        necessary.
    ``(g) Reallotment.--The portion of any eligible agency's allotment 
under this title for a fiscal year that the Secretary determines will 
not be required for the period such allotment is available for carrying 
out activities under this title, shall be available for reallotment 
from time to time, on such dates during such period as the Secretary 
shall fix, to other eligible agencies in proportion to the original 
allotments to such agencies under this title for such year.

``SEC. 212. PERFORMANCE ACCOUNTABILITY SYSTEM.

    ``(a) Purpose.--The purpose of this section is to establish a 
comprehensive performance accountability system, composed of the 
activities described in this section, to assess the effectiveness of 
eligible agencies in achieving continuous improvement of adult 
education, basic skills, and family literacy education programs funded 
under this title, in order to optimize the return on investment of 
Federal funds in adult education, basic skills, and family literacy 
education programs.
    ``(b) Eligible Agency Performance Measures.--
            ``(1) In general.--For each eligible agency, the eligible 
        agency performance measures shall consist of--
                    ``(A)(i) the core indicators of performance 
                described in paragraph (2)(A); and
                    ``(ii) employment performance indicators identified 
                by the eligible agency under paragraph (2)(B); and
                    ``(B) an eligible agency adjusted level of 
                performance for each indicator described in 
                subparagraph (A).
            ``(2) Indicators of performance.--
                    ``(A) Core indicators of performance.--The core 
                indicators of performance shall include the following:
                            ``(i) Measurable improvements in literacy, 
                        including basic skill levels in reading, 
                        writing, and speaking the English language and 
                        basic math, leading to proficiency in each 
                        skill.
                            ``(ii) Receipt of a secondary school 
                        diploma, General Educational Development 
                        credential (GED), or other State-recognized 
                        equivalent.
                            ``(iii) Placement in postsecondary 
                        education or other training programs.
                    ``(B) Employment performance indicators.--
                Consistent with applicable Federal and State privacy 
                laws, an eligible agency shall identify in the State 
                plan the following individual participant employment 
                performance indicators:
                            ``(i) Entry into employment.
                            ``(ii) Retention in employment.
                            ``(iii) Increase in earnings.
            ``(3) Levels of performance.--
                    ``(A) Eligible agency adjusted levels of 
                performance for core indicators.--
                            ``(i) In general.--For each eligible agency 
                        submitting a State plan, there shall be 
                        established, in accordance with this 
                        subparagraph, levels of performance for each of 
                        the core indicators of performance described in 
                        paragraph (2)(A) for adult education, basic 
                        skills, and family literacy education programs 
                        authorized under this title. The levels of 
                        performance established under this subparagraph 
                        shall, at a minimum--
                                    ``(I) be expressed in an objective, 
                                quantifiable, and measurable form; and
                                    ``(II) show the progress of the 
                                eligible agency toward continuously and 
                                significantly improving the agency's 
                                performance outcomes in an objective, 
                                quantifiable, and measurable form.
                            ``(ii) Identification in state plan.--Each 
                        eligible agency shall identify, in the State 
                        plan submitted under section 224, expected 
                        levels of performance for each of the core 
                        indicators of performance for the first 3 
                        program years covered by the State plan.
                            ``(iii) Agreement on eligible agency 
                        adjusted levels of performance for first 3 
                        years.--In order to ensure an optimal return on 
                        the investment of Federal funds in adult 
                        education, basic skills, and family literacy 
                        education programs authorized under this title, 
                        the Secretary and each eligible agency shall 
                        reach agreement on levels of student 
                        performance for each of the core indicators of 
                        performance, for the first 3 program years 
                        covered by the State plan, taking into account 
                        the levels identified in the State plan under 
                        clause (ii) and the factors described in clause 
                        (iv). The levels agreed to under this clause 
                        shall be considered to be the eligible agency 
                        adjusted levels of performance for the eligible 
                        agency for such years and shall be incorporated 
                        into the State plan prior to the approval of 
                        such plan.
                            ``(iv) Factors.--The agreement described in 
                        clause (iii) or (v) shall take into account--
                                    ``(I) how the levels involved 
                                compare with the eligible agency's 
                                adjusted levels of performance, taking 
                                into account factors including the 
                                characteristics of participants when 
                                the participants entered the program; 
                                and
                                    ``(II) the extent to which such 
                                levels promote continuous and 
                                significant improvement in performance 
                                on the student proficiency measures 
                                used by such eligible agency and ensure 
                                optimal return on the investment of 
                                Federal funds.
                            ``(v) Agreement on eligible agency adjusted 
                        levels of performance for second 3 years.--
                        Prior to the fourth program year covered by the 
                        State plan, the Secretary and each eligible 
                        agency shall reach agreement on levels of 
                        student performance for each of the core 
                        indicators of performance for the fourth, 
                        fifth, and sixth program years covered by the 
                        State plan, taking into account the factors 
                        described in clause (iv). The levels agreed to 
                        under this clause shall be considered to be the 
                        eligible agency adjusted levels of performance 
                        for the eligible agency for such years and 
                        shall be incorporated into the State plan.
                            ``(vi) Revisions.--If unanticipated 
                        circumstances arise in a State resulting in a 
                        significant change in the factors described in 
                        clause (iv)(I), the eligible agency may request 
                        that the eligible agency adjusted levels of 
                        performance agreed to under clause (iii) or (v) 
                        be revised.
                    ``(B) Levels of employment performance.--The 
                eligible agency shall identify, in the State plan, 
                eligible agency levels of performance for each of the 
                employment performance indicators described in 
                paragraph (2)(B). Such levels shall be considered to be 
                eligible agency adjusted levels of performance for 
                purposes of this title.
    ``(c) Definitions for Indicators of Perfomance.--In order to ensure 
comparability of performance data across States, the Secretary shall 
issue definitions for the indicators of performance under paragraph 
(2).
    ``(d) Report.--
            ``(1) In general.--Each eligible agency that receives a 
        grant under section 211(b) shall annually prepare and submit to 
        the Secretary, the Governor, the State legislature, and 
        eligible providers a report on the progress of the eligible 
        agency in achieving eligible agency performance measures, 
        including the following:
                    ``(A) Information on the levels of performance 
                achieved by the eligible agency with respect to the 
                core indicators of performance and employment 
                performance indicators.
                    ``(B) The number and type of each eligible provider 
                that receives funding under such grant.
            ``(2) Information dissemination.--The Secretary--
                    ``(A) shall make the information contained in such 
                reports available to the general public through 
                publication (including on the Internet site of the 
                Department of Education) and other appropriate methods;
                    ``(B) shall disseminate State-by-State comparisons 
                of the information; and
                    ``(C) shall provide the appropriate committees of 
                the Congress with copies of such reports.

``SEC. 213. INCENTIVE GRANTS FOR STATES.

    ``(a) In General.--From funds appropriated under section 211(a)(1), 
the Secretary may award grants to States for exemplary performance in 
carrying out programs under this title. Such awards shall be based on 
States exceeding the core indicators of performance established under 
section 212(b)(2)(A) and may be based on the performance of the State 
in serving populations, such as those described in section 224(b)(10), 
including the levels of service provided and the performance outcomes, 
and such other factors relating to the performance of the State under 
this title as the Secretary determines appropriate.
    ``(b) Use of Funds.--The funds awarded to a State under this 
paragraph may be used to carry out any activities authorized under this 
title, including demonstrations and innovative programs for hard-to-
serve populations.

                     ``CHAPTER 2--STATE PROVISIONS

``SEC. 221. STATE ADMINISTRATION.

    ``Each eligible agency shall be responsible for the following 
activities under this title:
            ``(1) The development, submission, implementation, and 
        monitoring of the State plan.
            ``(2) Consultation with other appropriate agencies, groups, 
        and individuals that are involved in, or interested in, the 
        development and implementation of activities assisted under 
        this title.
            ``(3) Coordination and avoidance of duplication with other 
        Federal and State education, training, corrections, public 
        housing, and social service programs.

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

    ``(a) State Distribution of Funds.--Each eligible agency receiving 
a grant under this title for a fiscal year--
            ``(1) shall use an amount not less than 82.5 percent of the 
        grant funds to award grants and contracts under section 231 and 
        to carry out section 225, of which not more than 10 percent of 
        such amount shall be available to carry out section 225;
            ``(2) shall use not more than 12.5 percent of the grant 
        funds to carry out State leadership activities under section 
        223; and
            ``(3) shall use not more than 5 percent of the grant funds, 
        or $75,000, whichever is greater, for the administrative 
        expenses of the eligible agency.
    ``(b) Matching Requirement.--
            ``(1) In general.--In order to receive a grant from the 
        Secretary under section 211(b), each eligible agency shall 
        provide, for the costs to be incurred by the eligible agency in 
        carrying out the adult education, basic skills, and family 
        literacy education programs for which the grant is awarded, a 
        non-Federal contribution in an amount at least equal to--
                    ``(A) in the case of an eligible agency serving an 
                outlying area, 12 percent of the total amount of funds 
                expended for adult education, basic skills, and family 
                literacy education programs in the outlying area, 
                except that the Secretary may decrease the amount of 
                funds required under this subparagraph for an eligible 
                agency; and
                    ``(B) in the case of an eligible agency serving a 
                State, 25 percent of the total amount of funds expended 
                for adult education, basic skills, and family literacy 
                education programs in the State.
            ``(2) Non-federal contribution.--An eligible agency's non-
        Federal contribution required under paragraph (1) may be 
        provided in cash or in kind, fairly evaluated, and shall 
        include only non-Federal funds that are used for adult 
        education, basic skills, and family literacy education programs 
        in a manner that is consistent with the purpose of this title.

``SEC. 223. STATE LEADERSHIP ACTIVITIES.

    ``(a) In General.--Each eligible agency may use funds made 
available under section 222(a)(2) for any of the following adult 
education, basic skills, and family literacy education programs:
            ``(1) The establishment or operation of professional 
        development programs to improve the quality of instruction 
        provided pursuant to local activities required under section 
        231(b), including instruction incorporating the essential 
        components of reading instruction and instruction provided by 
        volunteers or by personnel of a State or outlying area.
            ``(2) The provision of technical assistance to eligible 
        providers of adult education, basic skills, and family literacy 
        education programs, including for the development and 
        dissemination of scientifically based research instructional 
        practices in reading, writing, speaking, math, and English 
        language acquisition programs.
            ``(3) The provision of assistance to eligible providers in 
        developing, implementing, and reporting measurable progress in 
        achieving the objectives of this title.
            ``(4) The provision of technology assistance, including 
        staff training, to eligible providers of adult education, basic 
        skills, and family literacy education programs, including 
        distance learning activities, to enable the eligible providers 
        to improve the quality of such activities.
            ``(5) The development and implementation of technology 
        applications or distance learning, including professional 
        development to support the use of instructional technology.
            ``(6) Coordination with other public programs, including 
        welfare-to-work, workforce development, and job training 
        programs.
            ``(7) Coordination with existing support services, such as 
        transportation, child care, and other assistance designed to 
        increase rates of enrollment in, and successful completion of, 
        adult education, basic skills, and family literacy education 
        programs, for adults enrolled in such activities.
            ``(8) The development and implementation of a system to 
        assist in the transition from adult basic education to 
        postsecondary education.
            ``(9) Activities to promote workplace literacy programs.
            ``(10) Activities to promote and complement local outreach 
        initiatives described in section 243(7).
            ``(11) Other activities of statewide significance, 
        including assisting eligible providers in achieving progress in 
        improving the skill levels of adults who participate in 
        programs under this title.
            ``(12) Integration of literacy, instructional, and 
        occupational skill training and promotion of linkages with 
        employees.
    ``(b) Coordination.--In carrying out this section, eligible 
agencies shall coordinate where possible, and avoid duplicating 
efforts, in order to maximize the impact of the activities described in 
subsection (a).
    ``(c) State-Imposed Requirements.--Whenever a State or outlying 
area implements any rule or policy relating to the administration or 
operation of a program authorized under this title that has the effect 
of imposing a requirement that is not imposed under Federal law 
(including any rule or policy based on a State or outlying area 
interpretation of a Federal statute, regulation, or guideline), the 
State or outlying area shall identify, to eligible providers, the rule 
or policy as being imposed by the State or outlying area.

``SEC. 224. STATE PLAN.

    ``(a) 6-Year Plans.--
            ``(1) In general.--Each eligible agency desiring a grant 
        under this title for any fiscal year shall submit to, or have 
        on file with, the Secretary a 6-year State plan.
            ``(2) Comprehensive plan or application.--The eligible 
        agency may submit the State plan as part of a comprehensive 
        plan or application for Federal education assistance.
    ``(b) Plan Contents.--The eligible agency shall include in the 
State plan or any revisions to the State plan--
            ``(1) an objective assessment of the needs of individuals 
        in the State or outlying area for adult education, basic 
        skills, and family literacy education programs, including 
        individuals most in need or hardest to serve;
            ``(2) a description of the adult education, basic skills, 
        and family literacy education programs that will be carried out 
        with funds received under this title;
            ``(3) a description of how the eligible agency will 
        evaluate and measure annually the effectiveness and improvement 
        of the adult education, basic skills, and family literacy 
        education programs based on the performance measures described 
        in section 212 including--
                    ``(A) how the eligible agency will evaluate and 
                measure annually such effectiveness on a grant-by-grant 
                basis; and
                    ``(B) how the eligible agency--
                            ``(i) will hold eligible providers 
                        accountable regarding the progress of such 
                        providers in improving the academic achievement 
                        of participants in adult education programs 
                        under this title and regarding the core 
                        indicators of performance described in section 
                        212(b)(2)(A); and
                            ``(ii) will use technical assistance, 
                        sanctions, and rewards (including allocation of 
                        grant funds based on performance and 
                        termination of grant funds based on 
                        nonperformance);
            ``(4) a description of the performance measures described 
        in section 212 and how such performance measures have 
        significantly improved adult education, basic skills, and 
        family literacy education programs in the State or outlying 
        area;
            ``(5) an assurance that the eligible agency will, in 
        addition to meeting all of the other requirements of this 
        title, award not less than one grant under this title to an 
        eligible provider that--
                    ``(A) offers flexible schedules and necessary 
                support services (such as child care and 
                transportation) to enable individuals, including 
                individuals with disabilities, or individuals with 
                other special needs, to participate in adult education, 
                basic skills, and family literacy education programs; 
                and
                    ``(B) attempts to coordinate with support services 
                that are not provided under this title prior to using 
                funds for adult education, basic skills, and family 
                literacy education programs provided under this title 
                for support services;
            ``(6) an assurance that the funds received under this title 
        will not be expended for any purpose other than for activities 
        under this title;
            ``(7) a description of how the eligible agency will fund 
        local activities in accordance with the measurable goals 
        described in section 231(d);
            ``(8) an assurance that the eligible agency will expend the 
        funds under this title only in a manner consistent with fiscal 
        requirements in section 241;
            ``(9) a description of the process that will be used for 
        public participation and comment with respect to the State 
        plan, which process--
                    ``(A) shall include consultation with the State 
                workforce investment board, the State board responsible 
                for administering community or technical colleges, the 
                Governor, the State educational agency, the State board 
                or agency responsible for administering block grants 
                for temporary assistance to needy families under title 
                IV of the Social Security Act, the State council on 
                disabilities, the State vocational rehabilitation 
                agency, other State agencies that promote the 
                improvement of adult education, basic skills, and 
                family literacy education programs, and direct 
                providers of such programs; and
                    ``(B) may include consultation with the State 
                agency on higher education, institutions responsible 
                for professional development of adult education, basic 
                skills, and family literacy education programs 
                instructors, representatives of business and industry, 
                refugee assistance programs, and faith-based 
                organizations;
            ``(10) a description of the eligible agency's strategies 
        for serving populations that include, at a minimum--
                    ``(A) low-income individuals;
                    ``(B) individuals with disabilities;
                    ``(C) the unemployed;
                    ``(D) the underemployed; and
                    ``(E) individuals with multiple barriers to 
                educational enhancement, including individuals with 
                limited English proficiency;
            ``(11) a description of how the adult education, basic 
        skills, and family literacy education programs that will be 
        carried out with any funds received under this title will be 
        integrated with other adult education, career development, and 
        employment and training activities in the State or outlying 
        area served by the eligible agency;
            ``(12) a description of the steps the eligible agency will 
        take to ensure direct and equitable access, as required in 
        section 231(c)(1), including--
                    ``(A) how the State will build the capacity of 
                community-based and faith-based organizations to 
                provide adult education, basic skills, and family 
                literacy education programs; and
                    ``(B) how the State will increase the participation 
                of business and industry in adult education, basic 
                skills, and family literacy education programs;
            ``(13) an assessment of the adequacy of the system of the 
        State or outlying area to ensure teacher quality and a 
        description of how the State or outlying area will use funds 
        received under this subtitle to improve teacher quality, 
        including professional development on the use of scientifically 
        based research to improve instruction; and
            ``(14) a description of how the eligible agency will 
        consult with any State agency responsible for postsecondary 
        education to develop adult education that prepares students to 
        enter postsecondary education without the need for remediation 
        upon completion of secondary school equivalency programs.
    ``(c) Plan Revisions.--When changes in conditions or other factors 
require substantial revisions to an approved State plan, the eligible 
agency shall submit the revisions of the State plan to the Secretary.
    ``(d) Consultation.--The eligible agency shall--
            ``(1) submit the State plan, and any revisions to the State 
        plan, to the Governor, the chief State school officer, or the 
        State officer responsible for administering community or 
        technical colleges, or outlying area for review and comment; 
        and
            ``(2) ensure that any comments regarding the State plan by 
        the Governor, the chief State school officer, or the State 
        officer responsible for administering community or technical 
        colleges, and any revision to the State plan, are submitted to 
        the Secretary.
    ``(e) Plan Approval.--A State plan submitted to the Secretary shall 
be approved by the Secretary only if the plan is consistent with the 
specific provisions of this title.

``SEC. 225. PROGRAMS FOR CORRECTIONS EDUCATION AND OTHER 
              INSTITUTIONALIZED INDIVIDUALS.

    ``(a) Program Authorized.--From funds made available under section 
222(a)(1) for a fiscal year, each eligible agency shall carry out 
corrections education and education for other institutionalized 
individuals.
    ``(b) Uses of Funds.--The funds described in subsection (a) shall 
be used for the cost of educational programs for criminal offenders in 
correctional institutions and for other institutionalized individuals, 
including academic programs for--
            ``(1) basic skills education;
            ``(2) special education programs as determined by the 
        eligible agency;
            ``(3) reading, writing, speaking, and math programs; and
            ``(4) secondary school credit or diploma programs or their 
        recognized equivalent.
    ``(c) Priority.--Each eligible agency that is using assistance 
provided under this section to carry out a program for criminal 
offenders within a correctional institution shall give priority to 
serving individuals who are likely to leave the correctional 
institution within 5 years of participation in the program.
    ``(d) Definitions.--For purposes of this section:
            ``(1) Correctional institution.--The term `correctional 
        institution' means any--
                    ``(A) prison;
                    ``(B) jail;
                    ``(C) reformatory;
                    ``(D) work farm;
                    ``(E) detention center; or
                    ``(F) halfway house, community-based rehabilitation 
                center, or any other similar institution designed for 
                the confinement or rehabilitation of criminal 
                offenders.
            ``(2) Criminal offender.--The term `criminal offender' 
        means any individual who is charged with, or convicted of, any 
        criminal offense.

                     ``CHAPTER 3--LOCAL PROVISIONS

``SEC. 231. GRANTS AND CONTRACTS FOR ELIGIBLE PROVIDERS.

    ``(a) Grants and Contracts.--From grant funds made available under 
section 211(b), each eligible agency shall award multiyear grants or 
contracts, on a competitive basis, to eligible providers within the 
State or outlying area that meet the conditions and requirements of 
this title to enable the eligible providers to develop, implement, and 
improve adult education, basic skills, and family literacy education 
programs within the State.
    ``(b) Local Activities.--The eligible agency shall require eligible 
providers receiving a grant or contract under subsection (a) to 
establish or operate one or more programs of instruction that provide 
services or instruction in one or more of the following categories:
            ``(1) Adult education, basic skills, and family literacy 
        education programs (including proficiency in reading, writing, 
        speaking, and math).
            ``(2) Workplace literacy programs.
            ``(3) English language acquisition programs.
            ``(4) Family literacy education programs.
    ``(c) Direct and Equitable Access; Same Process.--Each eligible 
agency receiving funds under this title shall ensure that--
            ``(1) all eligible providers have direct and equitable 
        access to apply for grants or contracts under this section; and
            ``(2) the same grant or contract announcement process and 
        application process is used for all eligible providers in the 
        State or outlying area.
    ``(d) Measurable Goals.--The eligible agency shall require eligible 
providers receiving a grant or contract under subsection (a) to 
demonstrate--
            ``(1) the eligible provider's measurable goals for 
        participant outcomes to be achieved annually on the core 
        indicators of performance and employment performance indicators 
        described in section 212(b)(2);
            ``(2) the past effectiveness of the eligible provider in 
        improving the basic academic skills of adults and, for eligible 
        providers receiving grants in the prior year, the success of 
        the eligible provider receiving funding under this title in 
        exceeding its performance goals in the prior year;
            ``(3) the commitment of the eligible provider to serve 
        individuals in the community who are the most in need of basic 
        academic skills instruction services, including individuals who 
        are low-income or have minimal reading, writing, speaking, and 
        math skills, or limited English proficiency;
            ``(4) the program--
                    ``(A) is of sufficient intensity and duration for 
                participants to achieve substantial learning gains; and
                    ``(B) uses instructional practices that include the 
                essential components of reading instruction;
            ``(5) educational practices are based on scientifically 
        based research;
            ``(6) the activities of the eligible provider effectively 
        employ advances in technology, as appropriate, including the 
        use of computers;
            ``(7) the activities provide instruction in real-life 
        contexts, when appropriate, to ensure that an individual has 
        the skills needed to compete in the workplace and exercise the 
        rights and responsibilities of citizenship;
            ``(8) the activities are staffed by well-trained 
        instructors, counselors, and administrators;
            ``(9) the activities are coordinated with other available 
        resources in the community, such as through strong links with 
        elementary schools and secondary schools, postsecondary 
        educational institutions, one-stop centers, job training 
        programs, community-based and faith-based organizations, and 
        social service agencies;
            ``(10) the activities offer flexible schedules and support 
        services (such as child care and transportation) that are 
        necessary to enable individuals, including individuals with 
        disabilities or other special needs, to attend and complete 
        programs;
            ``(11) the activities include a high-quality information 
        management system that has the capacity to report measurable 
        participant outcomes and to monitor program performance against 
        the performance measures established by the eligible agency;
            ``(12) the local communities have a demonstrated need for 
        additional English language acquisition programs;
            ``(13) the capacity of the eligible provider to produce 
        valid information on performance results, including enrollments 
        and measurable participant outcomes;
            ``(14) adult education, basic skills, and family literacy 
        education programs offer rigorous reading, writing, speaking, 
        and math content that are based on scientifically based 
        research; and
            ``(15) applications of technology, and services to be 
        provided by the eligible providers, are of sufficient intensity 
        and duration to increase the amount and quality of learning and 
        lead to measurable learning gains within specified time 
        periods.
    ``(e) Special Rule.--Eligible providers may use grant funds under 
this title to serve children participating in family literacy programs 
assisted under this part, provided that other sources of funds 
available to provide similar services for such children are used first.

``SEC. 232. LOCAL APPLICATION.

    ``Each eligible provider desiring a grant or contract under this 
title shall submit an application to the eligible agency containing 
such information and assurances as the eligible agency may require, 
including--
            ``(1) a description of how funds awarded under this title 
        will be spent consistent with the requirements of this title;
            ``(2) a description of any cooperative arrangements the 
        eligible provider has with other agencies, institutions, or 
        organizations for the delivery of adult education, basic 
        skills, and family literacy education programs; and
            ``(3) each of the demonstrations required by section 
        231(d).

``SEC. 233. LOCAL ADMINISTRATIVE COST LIMITS.

    ``(a) In General.--Subject to subsection (b), of the amount that is 
made available under this title to an eligible provider--
            ``(1) at least 95 percent shall be expended for carrying 
        out adult education, basic skills, and family literacy 
        education programs; and
            ``(2) the remaining amount shall be used for planning, 
        administration, personnel and professional development, 
        development of measurable goals in reading, writing, speaking, 
        and math, and interagency coordination.
    ``(b) Special Rule.--In cases where the cost limits described in 
subsection (a) are too restrictive to allow for adequate planning, 
administration, personnel development, and interagency coordination, 
the eligible provider may negotiate with the eligible agency in order 
to determine an adequate level of funds to be used for noninstructional 
purposes.

                    ``CHAPTER 4--GENERAL PROVISIONS

``SEC. 241. ADMINISTRATIVE PROVISIONS.

    ``(a) Supplement Not Supplant.--Funds made available for adult 
education, basic skills, and family literacy education programs under 
this title shall supplement and not supplant other State or local 
public funds expended for adult education, basic skills, and family 
literacy education programs.
    ``(b) Maintenance of Effort.--
            ``(1) In general.--
                    ``(A) Determination.--An eligible agency may 
                receive funds under this title for any fiscal year if 
                the Secretary finds that the fiscal effort per student 
                or the aggregate expenditures of such eligible agency 
                for activities under this title, in the second 
                preceding fiscal year, were not less than 90 percent of 
                the fiscal effort per student or the aggregate 
                expenditures of such eligible agency for adult 
                education, basic skills, and family literacy education 
                programs, in the third preceding fiscal year.
                    ``(B) Proportionate reduction.--Subject to 
                paragraphs (2), (3), and (4), for any fiscal year with 
                respect to which the Secretary determines under 
                subparagraph (A) that the fiscal effort or the 
                aggregate expenditures of an eligible agency for the 
                preceding program year were less than such effort or 
                expenditures for the second preceding program year, the 
                Secretary--
                            ``(i) shall determine the percentage 
                        decreases in such effort or in such 
                        expenditures; and
                            ``(ii) shall decrease the payment made 
                        under this title for such program year to the 
                        agency for adult education, basic skills, and 
                        family literacy education programs by the 
                        lesser of such percentages.
            ``(2) Computation.--In computing the fiscal effort and 
        aggregate expenditures under paragraph (1), the Secretary shall 
        exclude capital expenditures and special one-time project 
        costs.
            ``(3) Decrease in federal support.--If the amount made 
        available for adult education, basic skills, and family 
        literacy education programs under this title for a fiscal year 
        is less than the amount made available for adult education, 
        basic skills, and family literacy education programs under this 
        title for the preceding fiscal year, then the fiscal effort per 
        student and the aggregate expenditures of an eligible agency 
        required in order to avoid a reduction under paragraph (1)(B) 
        shall be decreased by the same percentage as the percentage 
        decrease in the amount so made available.
            ``(4) Waiver.--The Secretary may waive the requirements of 
        this subsection for not more than 1 fiscal year, if the 
        Secretary determines that a waiver would be equitable due to 
        exceptional or uncontrollable circumstances, such as a natural 
        disaster or an unforeseen and precipitous decline in the 
        financial resources of the State or outlying area of the 
        eligible agency. If the Secretary grants a waiver under the 
        preceding sentence for a fiscal year, the level of effort 
        required under paragraph (1) shall not be reduced in the 
        subsequent fiscal year because of the waiver.

``SEC. 242. NATIONAL INSTITUTE FOR LITERACY.

    ``(a) In General.--
            ``(1) Purpose.--The purpose of the National Institute for 
        Literacy is to promote the improvement of literacy, including 
        skills in reading, writing, and English language acquisition 
        for children, youth, and adults, through practices derived from 
        the findings of scientifically based research.
            ``(2) Establishment.--There is established a National 
        Institute for Literacy (in this section referred to as the 
        `Institute'). The Institute shall be administered under the 
        terms of an interagency agreement entered into, reviewed 
        annually, and modified as needed by the Secretary of Education 
        with the Secretary of Health and Human Services and the 
        Secretary of Labor (in this section referred to as the 
        `Interagency Group').
            ``(3) Offices.--The Institute shall have offices separate 
        from the offices of the Department of Education, the Department 
        of Health and Human Services, and the Department of Labor.
            ``(4) Administrative support.--The Department of Education 
        shall provide administrative support for the Institute.
            ``(5) Daily operations.--The Director of the Institute 
        shall administer the daily operations of the Institute.
    ``(b) Duties.--
            ``(1) In general.--To carry out its purpose, the Institute 
        may--
                    ``(A) identify and disseminate rigorous scientific 
                research on the effectiveness of instructional 
                practices and organizational strategies relating to 
                programs on the acquisition of skills in reading, 
                writing, and English language acquisition for children, 
                youth, and adults;
                    ``(B) create and widely disseminate materials about 
                the acquisition and application of skills in reading, 
                writing, and English language acquisition for children, 
                youth, and adults based on scientifically based 
                research;
                    ``(C) ensure a broad understanding of 
                scientifically based research on reading, writing, and 
                English language acquisition for children, youth, and 
                adults among Federal agencies with responsibilities for 
                administering programs that provide related services, 
                including State and local educational agencies;
                    ``(D) facilitate coordination and information 
                sharing among national organizations and associations 
                interested in programs that provide services to improve 
                skills in reading, writing, and English language 
                acquisition for children, youth, and adults;
                    ``(E) coordinate with the appropriate offices in 
                the Department of Education, the Department of Health 
                and Human Services, the Department of Labor, and other 
                Federal agencies to apply the findings of 
                scientifically based research related to programs on 
                reading, writing, and English language acquisition for 
                children, youth, and adults;
                    ``(F) establish a national electronic database and 
                Internet site describing and fostering communication on 
                scientifically based programs in reading, writing, and 
                English language acquisition for children, youth, and 
                adults, including professional development programs; 
                and
                    ``(G) provide opportunities for technical 
                assistance, meetings, and conferences that will foster 
                increased coordination among Federal, State, and local 
                agencies and entities and improvement of reading, 
                writing, and English language acquisition skills for 
                children, youth, and adults.
            ``(2) Coordination.--In identifying scientifically based 
        research on reading, writing, and English language acquisition 
        for children, youth, and adults, the Institute shall use 
        standards for research quality that are consistent with those 
        established by the Institute of Education Sciences.
            ``(3) Grants, contracts, and cooperative agreements.--
                    ``(A) In general.--The Institute may award grants 
                to, or enter into contracts or cooperative agreements 
                with, individuals, public or private institutions, 
                agencies, organizations, or consortia of such 
                individuals, institutions, agencies, or organizations, 
                to carry out the activities of the Institute.
                    ``(B) Regulations.--The Director may adopt the 
                general administrative regulations of the Department of 
                Education, as applicable, for use by the Institute.
                    ``(C) Relation to other laws.--The duties and 
                powers of the Institute under this title are in 
                addition to the duties and powers of the Institute 
                under subparts 1, 2, and 3 of part B of the Elementary 
                and Secondary Education Act of 1965 (commonly referred 
                to as Reading First, Early Reading First, and the 
                William F. Goodling Even Start Family Literacy Program, 
                respectively).
    ``(c) Visiting Scholars.--The Institute may establish a visiting 
scholars program, with such stipends and allowances as the Director 
considers necessary, for outstanding researchers, scholars, and 
individuals who--
            ``(1) have careers in adult education, workforce 
        development, or scientifically based reading, writing, or 
        English language acquisition; and
            ``(2) can assist the Institute in translating research into 
        practice and providing analysis that advances instruction in 
        the fields of reading, writing, and English language 
        acquisition for children, youth, and adults.
    ``(d) Interns and Volunteers.--The Institute, in consultation with 
the National Institute for Literacy Advisory Board, may award paid and 
unpaid internships to individuals seeking to assist the Institute in 
carrying out its purpose. Notwithstanding section 1342 of title 31, 
United States Code, the Institute may accept and use voluntary and 
uncompensated services as the Institute determines necessary.
    ``(e) National Institute for Literacy Advisory Board.--
            ``(1) Establishment.--
                    ``(A) In general.--There shall be a National 
                Institute for Literacy Advisory Board (in this section 
                referred to as the `Board'), which shall consist of 10 
                individuals appointed by the President with the advice 
                and consent of the Senate.
                    ``(B) Qualifications.--The Board shall be composed 
                of individuals who--
                            ``(i) are not otherwise officers or 
                        employees of the Federal Government; and
                            ``(ii) are knowledgeable about current 
                        effective scientifically based research 
                        findings on instruction in reading, writing, 
                        and English language acquisition for children, 
                        youth, and adults.
                    ``(C) Composition.--The Board may include--
                            ``(i) representatives of business, 
                        industry, labor, literacy organizations, adult 
                        education providers, community colleges, 
                        students with disabilities, and State agencies, 
                        including State directors of adult education; 
                        and
                            ``(ii) individuals who, and representatives 
                        of entities that, have been successful in 
                        improving skills in reading, writing, and 
                        English language acquisition for children, 
                        youth, and adults.
            ``(2) Duties.--The Board shall--
                    ``(A) make recommendations concerning the 
                appointment of the Director of the Institute;
                    ``(B) provide independent advice on the operation 
                of the Institute;
                    ``(C) receive reports from the Interagency Group 
                and the Director; and
                    ``(D) review the biennial report to the Congress 
                under subsection (k).
            ``(3) Federal advisory committee act.--Except as otherwise 
        provided, the Board shall be subject to the provisions of the 
        Federal Advisory Committee Act.
            ``(4) Appointments.--
                    ``(A) In general.--Each member of the Board shall 
                be appointed for a term of 3 years, except that the 
                initial terms for members may be 1, 2, or 3 years in 
                order to establish a rotation in which one-third of the 
                members are selected each year. Any such member may be 
                appointed for not more than 2 consecutive terms.
                    ``(B) Vacancies.--Any member appointed to fill a 
                vacancy occurring before the expiration of the term for 
                which the member's predecessor was appointed shall be 
                appointed only for the remainder of that term. A member 
                may serve after the expiration of that member's term 
                until a successor has taken office.
            ``(5) Quorum.--A majority of the members of the Board shall 
        constitute a quorum, but a lesser number may hold hearings. 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.
            ``(6) Election of officers.--The Chairperson and Vice 
        Chairperson of the Board shall be elected by the members of the 
        Board. The term of office of the Chairperson and Vice 
        Chairperson shall be 2 years.
            ``(7) Meetings.--The Board shall meet at the call of the 
        Chairperson or a majority of the members of the Board.
    ``(f) Gifts, Bequests, and Devises.--
            ``(1) In general.--The Institute may accept, administer, 
        and use gifts or donations of services, money, or property, 
        whether real or personal, tangible or intangible.
            ``(2) Rules.--The Board shall establish written rules 
        setting forth the criteria to be used by the Institute in 
        determining whether the acceptance of contributions of 
        services, money, or property whether real or personal, tangible 
        or intangible, would reflect unfavorably upon the ability of 
        the Institute or any employee to carry out the responsibilities 
        of the Institute or employee, or official duties, in a fair and 
        objective manner, or would compromise the integrity, or the 
        appearance of the integrity, of the Institute's programs or any 
        official involved in those programs.
    ``(g) Mails.--The Board and the Institute may use the United States 
mails in the same manner and under the same conditions as other 
departments and agencies of the United States.
    ``(h) Director.--The Secretary of Education, after considering 
recommendations made by the Board and consulting with the Interagency 
Group, shall appoint and fix the pay of the Director of the Institute 
and, when necessary, shall appoint an Interim Director of the 
Institute.
    ``(i) Applicability of Certain Civil Service Laws.--The Director 
and staff of the Institute may be appointed without regard to the 
provisions of title 5, United States Code, governing appointments in 
the competitive service, and may be paid without regard to the 
provisions of chapter 51 and subchapter III of chapter 53 of that title 
relating to classification and General Schedule pay rates, except that 
an individual so appointed may not receive pay in excess of the annual 
rate of basic pay payable for level IV of the Executive Schedule.
    ``(j) Experts and Consultants.--The Institute may procure temporary 
and intermittent services under section 3109(b) of title 5, United 
States Code.
    ``(k) Biennial Report.--
            ``(1) In general.--The Institute shall submit a report 
        biennially to the Committee on Education and Labor of the House 
        of Representatives and the Committee on Health, Education, 
        Labor, and Pensions of the Senate. Each report submitted under 
        this subsection shall include--
                    ``(A) a comprehensive and detailed description of 
                the Institute's operations, activities, financial 
                condition, and accomplishments in identifying and 
                describing programs on reading, writing, and English 
                language acquisition for children, youth, and adults 
                for the period covered by the report; and
                    ``(B) a description of how plans for the operation 
                of the Institute for the succeeding 2 fiscal years will 
                facilitate achievement of the purpose of the Institute.
            ``(2) First report.--The Institute shall submit its first 
        report under this subsection to the Congress not later than 1 
        year after the date of the enactment of the Workforce 
        Investment Improvement Act of 2007.
    ``(l) Additional Funding.--In addition to the funds authorized 
under section 205 and reserved for the Institute under section 211, the 
Secretary of Education, the Secretary of Health and Human Services, the 
Secretary of Labor, or the head of any other Federal agency or 
department that participates in the activities of the Institute may 
provide funds to the Institute for activities that the Institute is 
authorized to perform under this section.

``SEC. 243. NATIONAL LEADERSHIP ACTIVITIES.

    ``The Secretary shall establish and carry out a program of national 
leadership activities that may include the following:
            ``(1) Technical assistance, on request, including 
        assistance--
                    ``(A) on request to volunteer community- and faith-
                based organizations, including but not limited to, 
                improving their fiscal management, research-based 
                instruction, and reporting requirements, and the 
                development of measurable objectives to carry out the 
                requirements of this title;
                    ``(B) in developing valid, measurable, and reliable 
                performance data, and using performance information for 
                the improvement of adult education basic skills, 
                English language acquisition, and family literacy 
                education programs;
                    ``(C) on adult education professional development; 
                and
                    ``(D) in using distance learning and improving the 
                application of technology in the classroom, including 
                instruction in English language acquisition for 
                individuals who have limited English proficiency.
            ``(2) Providing for the conduct of research on national 
        literacy basic skill acquisition levels among adults, including 
        the number of limited English proficient adults functioning at 
        different levels of reading proficiency.
            ``(3) Improving the coordination, efficiency, and 
        effectiveness of adult education and workforce development 
        services at the national, State, and local levels.
            ``(4) Determining how participation in adult education 
        basic skills, English language acquisition, and family literacy 
        education programs prepares individuals for entry into and 
        success in postsecondary education and employment, and in the 
        case of prison-based services, the effect on recidivism.
            ``(5) Evaluating how different types of providers, 
        including community and faith-based organizations or private 
        for-profit agencies measurably improve the skills of 
        participants in adult education basic skills, English language 
        acquisition, and family literacy education programs.
            ``(6) Identifying model integrated basic and workplace 
        skills education programs, including programs for individuals 
        with limited English proficiency coordinated literacy and 
        employment services, and effective strategies for serving 
        adults with disabilities.
            ``(7) Supporting the development of an entity that would 
        produce and distribute technology-based programs and materials 
        for adult education, basic skills, and family literacy 
        education programs using an intercommunication system, as that 
        term is defined in section 397 of the Communications Act of 
        1934, and expand the effective outreach and use of such 
        programs and materials to adult education eligible providers.
            ``(8) Initiating other activities designed to improve the 
        measurable quality and effectiveness of adult education basic 
        skills, English language acquisition, and family literacy 
        education programs nationwide.''.

             TITLE III--AMENDMENTS TO THE WAGNER-PEYSER ACT

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

    The Wagner-Peyser Act (29 U.S.C. 49 et seq.) is amended--
            (1) by striking sections 1 through 13;
            (2) in section 14 by inserting ``of Labor'' after 
        ``Secretary''; and
            (3) by amending section 15 to read as follows:

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

    ``(a) System Content.--
            ``(1) In general.--The Secretary of Labor, in accordance 
        with the provisions of this section, shall oversee the 
        development, maintenance, and continuous improvement of a 
        nationwide workforce and labor market information system that 
        includes--
                    ``(A) statistical data from cooperative statistical 
                survey and projection programs and data from 
                administrative reporting systems that, taken together, 
                enumerate, estimate, and project employment 
                opportunities and conditions at national, State, and 
                local levels in a timely manner, including statistics 
                on--
                            ``(i) employment and unemployment status of 
                        national, State, and local populations, 
                        including self-employed, part-time, and 
                        seasonal workers;
                            ``(ii) industrial distribution of 
                        occupations, as well as current and projected 
                        employment opportunities, wages, benefits 
                        (where data is available), and skill trends by 
                        occupation and industry, with particular 
                        attention paid to State and local conditions;
                            ``(iii) the incidence of, industrial and 
                        geographical location of, and number of workers 
                        displaced by, permanent layoffs and plant 
                        closings; and
                            ``(iv) employment and earnings information 
                        maintained in a longitudinal manner to be used 
                        for research and program evaluation;
                    ``(B) information on State and local employment 
                opportunities, and other appropriate statistical data 
                related to labor market dynamics, which--
                            ``(i) shall be current and comprehensive;
                            ``(ii) shall meet the needs identified 
                        through the consultations described in 
                        subparagraphs (A) and (B) of subsection (e)(2); 
                        and
                            ``(iii) shall meet the needs for the 
                        information identified in section 134(d);
                    ``(C) technical standards (which the Secretary 
                shall publish annually) for data and information 
                described in subparagraphs (A) and (B) that, at a 
                minimum, meet the criteria of chapter 35 of title 44, 
                United States Code;
                    ``(D) procedures to ensure compatibility and 
                additivity of the data and information described in 
                subparagraphs (A) and (B) from national, State, and 
                local levels;
                    ``(E) procedures to support standardization and 
                aggregation of data from administrative reporting 
                systems described in subparagraph (A) of employment-
                related programs;
                    ``(F) analysis of data and information described in 
                subparagraphs (A) and (B) for uses such as--
                            ``(i) national, State, and local 
                        policymaking;
                            ``(ii) implementation of Federal policies 
                        (including allocation formulas);
                            ``(iii) program planning and evaluation; 
                        and
                            ``(iv) researching labor market dynamics;
                    ``(G) wide dissemination of such data, information, 
                and analysis in a user-friendly manner and voluntary 
                technical standards for dissemination mechanisms; and
                    ``(H) programs of--
                            ``(i) training for effective data 
                        dissemination;
                            ``(ii) research and demonstration; and
                            ``(iii) programs and technical assistance.
            ``(2) Information to be confidential.--
                    ``(A) In general.--No officer or employee of the 
                Federal Government or agent of the Federal Government 
                may--
                            ``(i) use any submission that is furnished 
                        for exclusively statistical purposes under the 
                        provisions of this section for any purpose 
                        other than the statistical purposes for which 
                        the submission is furnished;
                            ``(ii) disclose to the public any 
                        publication or media transmittal of the data 
                        contained in the submission described in clause 
                        (i) that permits information concerning an 
                        individual subject to be reasonably inferred by 
                        either direct or indirect means; or
                            ``(iii) permit anyone other than a sworn 
                        officer, employee, or agent of any Federal 
                        department or agency, or a contractor 
                        (including an employee of a contractor) of such 
                        department or agency, to examine an individual 
                        submission described in clause (i),
                without the consent of the individual, agency, or other 
                person who is the subject of the submission or provides 
                that submission.
                    ``(B) Immunity from legal process.--Any submission 
                (including any data derived from the submission) that 
                is collected and retained by a Federal department or 
                agency, or an officer, employee, agent, or contractor 
                of such a department or agency, for exclusively 
                statistical purposes under this section shall be immune 
                from the legal process and shall not, without the 
                consent of the individual, agency, or other person who 
                is the subject of the submission or provides that 
                submission, be admitted as evidence or used for any 
                purpose in any action, suit, or other judicial or 
                administrative proceeding.
                    ``(C) Rule of construction.--Nothing in this 
                section shall be construed to provide immunity from the 
                legal process for such submission (including any data 
                derived from the submission) if the submission is in 
                the possession of any person, agency, or entity other 
                than the Federal Government or an officer, employee, 
                agent, or contractor of the Federal Government, or if 
                the submission is independently collected, retained, or 
                produced for purposes other than the purposes of this 
                Act.
    ``(b) System Responsibilities.--
            ``(1) In general.--The workforce and labor market 
        information system described in subsection (a) shall be 
        planned, administered, overseen, and evaluated through a 
        cooperative governance structure involving the Federal 
        Government and States.
            ``(2) Duties.--The Secretary, with respect to data 
        collection, analysis, and dissemination of workforce and labor 
        market information for the system, shall carry out the 
        following duties:
                    ``(A) Assign responsibilities within the Department 
                of Labor for elements of the workforce and labor market 
                information system described in subsection (a) to 
                ensure that all statistical and administrative data 
                collected is consistent with appropriate Bureau of 
                Labor Statistics standards and definitions.
                    ``(B) Actively seek the cooperation of other 
                Federal agencies to establish and maintain mechanisms 
                for ensuring complementarity and nonduplication in the 
                development and operation of statistical and 
                administrative data collection activities.
                    ``(C) Eliminate gaps and duplication in statistical 
                undertakings, with the systemization of wage surveys as 
                an early priority.
                    ``(D) In collaboration with the Bureau of Labor 
                Statistics and States, develop and maintain the 
                elements of the workforce and labor market information 
                system described in subsection (a), including the 
                development of consistent procedures and definitions 
                for use by the States in collecting the data and 
                information described in subparagraphs (A) and (B) of 
                subsection (a)(1).
                    ``(E) Establish procedures for the system to ensure 
                that--
                            ``(i) such data and information are timely;
                            ``(ii) paperwork and reporting for the 
                        system are reduced to a minimum; and
                            ``(iii) States and localities are fully 
                        involved in the development and continuous 
                        improvement of the system at all levels.
    ``(c) National Electronic Tools To Provide Services.--The Secretary 
is authorized to assist in the development of national electronic tools 
that may be used to facilitate the delivery of work ready services 
described in section 134 and to provide workforce information to 
individuals through the one-stop delivery systems described in section 
121 and through other appropriate delivery systems.
    ``(d) Coordination With the States.--
            ``(1) In general.--The Secretary, working through the 
        Bureau of Labor Statistics and the Employment and Training 
        Administration, shall regularly consult with representatives of 
        State agencies carrying out workforce information activities 
        regarding strategies for improving the workforce and labor 
        market information system.
            ``(2) Formal consultations.--At least twice each year, the 
        Secretary, working through the Bureau of Labor Statistics, 
        shall conduct formal consultations regarding programs carried 
        out by the Bureau of Labor Statistics with representatives of 
        each of the 6 Federal regions of the Bureau of Labor 
        Statistics, elected (pursuant to a process established by the 
        Secretary) from the State directors affiliated with State 
        agencies that perform the duties described in subsection 
        (e)(2).
    ``(e) State Responsibilities.--
            ``(1) In general.--In order to receive Federal financial 
        assistance under this section, the Governor of a State shall--
                    ``(A) be responsible for the management of the 
                portions of the workforce and labor market information 
                system described in subsection (a) that comprise a 
                statewide workforce and labor market information system 
                and for the State's participation in the development of 
                the annual plan;
                    ``(B) establish a process for the oversight of such 
                system;
                    ``(C) consult with State and local employers, 
                participants, and local workforce investment boards 
                about the labor market relevance of the data to be 
                collected and disseminated through the statewide 
                workforce and labor market information system;
                    ``(D) consult with State educational agencies and 
                local educational agencies concerning the provision of 
                employment statistics in order to meet the needs of 
                secondary school and postsecondary school students who 
                seek such information;
                    ``(E) collect and disseminate for the system, on 
                behalf of the State and localities in the State, the 
                information and data described in subparagraphs (A) and 
                (B) of subsection (a)(1);
                    ``(F) maintain and continuously improve the 
                statewide workforce and labor market information system 
                in accordance with this section;
                    ``(G) perform contract and grant responsibilities 
                for data collection, analysis, and dissemination for 
                such system;
                    ``(H) conduct such other data collection, analysis, 
                and dissemination activities as will ensure an 
                effective statewide workforce and labor market 
                information system;
                    ``(I) actively seek the participation of other 
                State and local agencies in data collection, analysis, 
                and dissemination activities in order to ensure 
                complementarity, compatibility, and usefulness of data;
                    ``(J) participate in the development of the annual 
                plan described in subsection (c); and
                    ``(K) utilize the quarterly records described in 
                section 136(f)(2) of the Workforce Investment Act of 
                1998 to assist the State and other States in measuring 
                State progress on State performance measures.
            ``(2) Rule of construction.--Nothing in this section shall 
        be construed as limiting the ability of a Governor to conduct 
        additional data collection, analysis, and dissemination 
        activities with State funds or with Federal funds from sources 
        other than this section.
    ``(f) Nonduplication Requirement.--None of the functions and 
activities carried out pursuant to this section shall duplicate the 
functions and activities carried out under the Carl D. Perkins 
Vocational and Applied Technology Education Act (20 U.S.C. 2301 et 
seq.).
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for each of the fiscal years 2008 through 2012.
    ``(h) Definition.--In this section, the term `local area' means the 
smallest geographical area for which data can be produced with 
statistical reliability.''.

         TITLE IV--AMENDMENTS TO THE REHABILITATION ACT OF 1973

SEC. 401. FINDINGS.

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

SEC. 402. REHABILITATION SERVICES ADMINISTRATION.

    Section 3(a) of the Rehabilitation Act of 1973 (29 U.S.C. 702(a)) 
is amended--
            (1) by striking ``Office of the Secretary'' and inserting 
        ``Department of Education'';
            (2) by striking ``President by and with the advice and 
        consent of the Senate'' and inserting ``Secretary, except that 
        the Commissioner appointed under the authority existing on the 
        day prior to the date of enactment of the Workforce Investment 
        Improvement Act of 2007 may continue to serve in the former 
        capacity''; and
            (3) by striking ``, and the Commissioner shall be the 
        principal officer,''.

SEC. 403. DIRECTOR.

    (a) In General.--The Rehabilitation Act of 1973 (29 U.S.C. 701 et 
seq.) is amended--
            (1) by striking ``Commissioner'' each place it appears, 
        except in sections 3(a) (as amended by section 402) and 21, and 
        inserting ``Director'';
            (2) in section 100(d)(2)(B), by striking ``commissioner'' 
        and inserting ``director'';
            (3) in section 706, by striking ``commissioner'' and 
        inserting ``director''; and
            (4) in section 723(a)(3), by striking ``commissioner'' and 
        inserting ``director''.
    (b) Exception.--Section 21 of the Rehabilitation Act of 1973 (29 
U.S.C. 718) is amended--
            (1) in subsection (b)(1)--
                    (A) by striking ``Commissioner'' the first place it 
                appears and inserting ``Director of the Rehabilitation 
                Services Administration''; and
                    (B) by striking ``(referred to in this subsection 
                as the `Director')''; and
            (2) by striking ``Commissioner and the Director'' each 
        place it appears and inserting ``both such Directors''.

SEC. 404. DEFINITIONS.

    Section 7 of the Rehabilitation Act of 1973 (29 U.S.C. 705) is 
amended--
            (1) by redesignating paragraphs (35) through (39) as 
        paragraphs (36), (37), (38), (40), and (41), respectively;
            (2) in subparagraph (A)(ii) of paragraph (36) (as 
        redesignated in paragraph (1)), by striking ``paragraph 
        (36)(C)'' and inserting ``paragraph (37)(C)'';
            (3) by inserting after paragraph (34) the following:
            ``(35)(A) The term `student with a disability' means an 
        individual with a disability who--
                    ``(i) is not younger than 16 and not older than 21;
                    ``(ii) has been determined to be eligible under 
                section 102(a) for assistance under this title; and
                    ``(iii)(I) is eligible for, and is receiving, 
                special education under part B of the Individuals with 
                Disabilities Education Act (20 U.S.C. 1411 et seq.); or
                    ``(II) is an individual with a disability, for 
                purposes of section 504.
            ``(B) The term `students with disabilities' means more than 
        1 student with a disability.''; and
            (4) by inserting after paragraph (38) (as redesignated by 
        paragraph (1)) the following:
            ``(39) The term `transition services expansion year' 
        means--
                    ``(A) the first fiscal year for which the amount 
                appropriated under section 100(b) exceeds the amount 
                appropriated under section 100(b) for fiscal year 2004 
                by not less than $100,000,000; and
                    ``(B) each fiscal year subsequent to that first 
                fiscal year.''.

SEC. 405. STATE PLAN.

    (a) Coordination With Education Officials and Assistive Technology 
Programs.--Section 101(a)(11) of the Rehabilitation Act of 1973 (29 
U.S.C. 721(a)(11)) is amended--
            (1) in subparagraph (D)(i) by inserting ``, which may be 
        provided using alternative means of meeting participation (such 
        as video conferences and conference calls)'' before the 
        semicolon; and
            (2) by adding at the end the following:
                    ``(G) Coordination with assistive technology 
                programs.--The State plan shall include an assurance 
                that the designated State unit and the lead agency 
                responsible for carrying out duties under the Assistive 
                Technology Act of 1998 (29 U.S.C. 3001), as amended, 
                have developed working relationships and coordinate 
                their activities.''.
    (b) Assessment and Strategies.--Section 101(a)(15) of the 
Rehabilitation Act of 1973 (29 U.S.C. 721(a)(15)) is amended--
            (1) in subparagraph (A)
                    (A) in clause (i)--
                            (i) in subclause (II), by striking ``and'' 
                        at the end;
                            (ii) in subclause (III), by adding ``and'' 
                        at the end; and
                            (iii) by adding at the end the following:
                                    ``(IV) in a transition services 
                                expansion year, students with 
                                disabilities, including their need for 
                                transition services;''; and
                    (B) by redesignating clauses (ii) and (iii) as 
                clauses (iii) and (iv), respectively, and inserting 
                after clause (i) the following:
                            ``(ii) include an assessment of the 
                        transition services provided under this Act, 
                        and coordinated with transition services under 
                        the Individuals with Disabilities Education 
                        Act, as to those services meeting the needs of 
                        individuals with disabilities;''; and
            (2) in subparagraph (D)--
                    (A) by redesignating clauses (iii), (iv), and (v) 
                as clauses (iv), (v), and (vi), respectively; and
                    (B) by inserting after clause (ii) the following:
                            ``(iii) in a transition services expansion 
                        year, the methods to be used to improve and 
                        expand vocational rehabilitation services for 
                        students with disabilities, including the 
                        coordination of services designed to facilitate 
                        the transition of such students from the 
                        receipt of educational services in school to 
                        the receipt of vocational rehabilitation 
                        services under this title or to postsecondary 
                        education or employment;''.
    (c) Services for Students With Disabilities.--Section 101(a) of the 
Rehabilitation Act of 1973 (29 U.S.C. 721(a)) is further amended by 
adding at the end the following:
            ``(25) Services for students with disabilities.--The State 
        plan for a transition services expansion year shall provide an 
        assurance satisfactory to the Secretary that the State--
                    ``(A) has developed and implemented strategies to 
                address the needs identified in the assessment 
                described in paragraph (15), and achieve the goals and 
                priorities identified by the State, to improve and 
                expand vocational rehabilitation services for students 
                with disabilities on a statewide basis in accordance 
                with paragraph (15); and
                    ``(B) from funds reserved under section 110A, shall 
                carry out programs or activities designed to improve 
                and expand vocational rehabilitation services for 
                students with disabilities that--
                            ``(i) facilitate the transition of the 
                        students with disabilities from the receipt of 
                        educational services in school, to the receipt 
                        of vocational rehabilitation services under 
                        this title, including, at a minimum, those 
                        services specified in the interagency agreement 
                        required in paragraph (11)(D);
                            ``(ii) improve the achievement of post-
                        school goals of students with disabilities, 
                        including improving the achievement through 
                        participation (as appropriate when vocational 
                        goals are discussed) in meetings regarding 
                        individualized education programs developed 
                        under section 614 of the Individuals with 
                        Disabilities Education Act (20 U.S.C. 1414);
                            ``(iii) provide vocational guidance, career 
                        exploration services, and job search skills and 
                        strategies and technical assistance to students 
                        with disabilities;
                            ``(iv) support the provision of training 
                        and technical assistance to State and local 
                        educational agency and designated State agency 
                        personnel responsible for the planning and 
                        provision of services to students with 
                        disabilities; and
                            ``(v) support outreach activities to 
                        students with disabilities who are eligible 
                        for, and need, services under this title.''.

SEC. 406. SCOPE OF SERVICES.

    Section 103 of the Rehabilitation Act of 1973 (29 U.S.C. 723) is 
amended--
            (1) in subsection (a), by striking paragraph (15) and 
        inserting the following:
            ``(15) transition services for students with disabilities, 
        that facilitate the achievement of the employment outcome 
        identified in the individualized plan for employment, 
        including, in a transition services expansion year, services 
        described in clauses (i) through (iii) of section 
        101(a)(25)(B);'';
            (2) in subsection (b), by striking paragraph (6) and 
        inserting the following:
            ``(6)(A)(i) Consultation and technical assistance services 
        to assist State and local educational agencies in planning for 
        the transition of students with disabilities from school to 
        post-school activities, including employment.
            ``(ii) In a transition services expansion year, training 
        and technical assistance described in section 
        101(a)(25)(B)(iv).
            ``(B) In a transition services expansion year, services for 
        groups of individuals with disabilities who meet the 
        requirements of clauses (i) and (iii) of section 7(35)(A), 
        including services described in clauses (i), (ii), (iii), and 
        (v) of section 101(a)(25)(B), to assist in the transition from 
        school to post-school activities.''; and
            (3) in subsection (b) by inserting at the end, the 
        following:
            ``(7) The establishment, development, or improvement of 
        assistive technology demonstration, loan, reutilization, or 
        financing programs in coordination with activities authorized 
        under the Assistive Technology Act of 1998 (29 U.S.C. 3001), as 
        amended, to promote access to assistive technology for 
        individuals with disabilities and employers.''.

SEC. 407. STANDARDS AND INDICATORS.

    Section 106(a) of the Rehabilitation Act of 1973 (29 U.S.C. 726(a)) 
is amended by striking paragraph (1)(C) and all that follows through 
paragraph (2) and inserting the following:
            ``(2) Measures.--The standards and indicators shall include 
        outcome and related measures of program performance that--
                    ``(A) facilitate the accomplishment of the purpose 
                and policy of this title;
                    ``(B) to the maximum extent practicable, are 
                consistent with the core indicators of performance, and 
                corresponding State adjusted levels of performance, 
                established under section 136(b) of the Workforce 
                Investment Act of 1998 (29 U.S.C. 2871(b)); and
                    ``(C) include measures of the program's performance 
                with respect to the transition to post-school 
                vocational activities, and achievement of the post-
                school vocational goals, of students with disabilities 
                served under the program.''.

SEC. 408. RESERVATION FOR EXPANDED TRANSITION SERVICES.

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

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

    ``(a) Reservation.--From the State allotment under section 110 in a 
transition services expansion year, each State shall reserve an amount 
calculated by the Director under subsection (b) to carry out programs 
and activities under sections 101(a)(25)(B) and 103(b)(6).
    ``(b) Calculation.--The Director shall calculate the amount to be 
reserved for such programs and activities for a fiscal year by each 
State by multiplying $50,000,000 by the percentage determined by 
dividing--
            ``(1) the amount allotted to that State under section 110 
        for the prior fiscal year, by
            ``(2) the total amount allotted to all States under section 
        110 for that prior fiscal year.''.

SEC. 409. CLIENT ASSISTANCE PROGRAM.

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

SEC. 410. PROTECTION AND ADVOCACY OF INDIVIDUAL RIGHTS.

    Section 509(g)(2) of the Rehabilitation Act of 1973 (29 U.S.C. 
794e(g)(2)) is amended by striking ``was paid'' and inserting ``was 
paid, except that program income generated from such amount shall 
remain available to such system for one additional fiscal year''.

SEC. 411. CHAIRPERSON.

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

SEC. 412. AUTHORIZATIONS OF APPROPRIATIONS.

    The Rehabilitation Act of 1973 is further amended--
            (1) in section 100(b)(1) by striking ``fiscal years 1999 
        through 2003'' and inserting ``fiscal years 2008 through 
        2012'';
            (2) in section 100(d)(1)(B) by striking ``fiscal year 
        2003'' and inserting ``fiscal year 2012'';
            (3) in section 110(c) by amending paragraph (2) to read as 
        follows:
            ``(2) The sum referred to in paragraph (1) shall be, as 
        determined by the Secretary, not less than 1 percent and not 
        more than 1.5 percent of the amount referred to in paragraph 
        (1) for each of fiscal years 2008 through 2012.'';
            (4) in section 112(h) by striking ``fiscal years 1999 
        through 2003'' and inserting ``fiscal years 2008 through 
        2012'';
            (5) in section 201(a) by striking ``fiscal years 1999 
        through 2003'' each place it appears and inserting ``fiscal 
        years 2008 through 2012'';
            (6) in section 302(i) by striking ``fiscal years 1999 
        through 2003'' and inserting ``fiscal years 2008 through 
        2012'';
            (7) in section 303(e) by striking ``fiscal years 1999 
        through 2003'' and inserting ``fiscal years 2008 through 
        2012'';
            (8) in section 304(b) by striking ``fiscal years 1999 
        through 2003'' and inserting ``fiscal years 2008 through 
        2012'';
            (9) in section 305(b) by striking ``fiscal years 1999 
        through 2003'' and inserting ``fiscal years 2008 through 
        2012'';
            (10) in section 405 by striking ``fiscal years 1999 through 
        2003'' and inserting ``fiscal years 2008 through 2012'';
            (11) in section 502(j) by striking ``fiscal years 1999 
        through 2003'' and inserting ``fiscal years 2008 through 
        2012'';
            (12) in section 509(l) by striking ``fiscal years 1999 
        through 2003'' and inserting ``fiscal years 2008 through 
        2012'';
            (13) in section 612 by striking ``fiscal years 1999 through 
        2003'' and inserting ``fiscal years 2008 through 2012'';
            (14) in section 628 by striking ``fiscal years 1999 through 
        2003'' and inserting ``fiscal years 2008 through 2012'';
            (15) in section 714 by striking ``fiscal years 1999 through 
        2003'' and inserting ``fiscal years 2008 through 2012'';
            (16) in section 727 by striking ``fiscal years 1999 through 
        2003'' and inserting ``fiscal years 2008 through 2012''; and
            (17) in section 753 by striking ``fiscal years 1999 through 
        2003'' and inserting ``fiscal years 2008 through 2012''.

SEC. 413. CONFORMING AMENDMENT.

    Section 1(b) of the Rehabilitation Act of 1973 is amended by 
inserting after the item relating to section 110 the following:

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

SEC. 414. 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 
``2008 through 2012''.
    (b) Helen Keller National Center Federal Endowment Fund.--The first 
sentence of section 208(h) of such Act (29 U.S.C. 1907(h)) is amended 
by striking ``1999 through 2003'' and inserting ``2008 through 2012''.

                 TITLE V--TRANSITION AND EFFECTIVE DATE

SEC. 501. TRANSITION PROVISIONS.

    The Secretary of Labor shall take such actions as the Secretary 
determines to be appropriate to provide for the orderly implementation 
of this Act.

SEC. 502. EFFECTIVE DATE.

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