[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4297 Reported in House (RH)]

                                                 Union Calendar No. 513
112th CONGRESS
  2d Session
                                H. R. 4297

                      [Report No. 112-699, Part I]

To reform and strengthen the workforce investment system of the Nation 
     to put Americans back to work and make the United States more 
                    competitive in the 21st century.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 29, 2012

    Ms. Foxx (for herself, Mr. McKeon, and Mr. Heck) introduced the 
 following bill; which was referred to the Committee on Education and 
  the Workforce, and in addition to the Committees on the Judiciary, 
       Agriculture, Energy and Commerce, and Transportation and 
   Infrastructure, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

                            December 5, 2012

  Reported from the Committee on Education and the Workforce with an 
                               amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                            December 5, 2012

The Committees on the Judiciary, Agriculture, Energy and Commerce, and 
              Transportation and Infrastructure discharged

                            December 5, 2012

Referred to the Committee on Veterans' Affairs for a period ending not 
 later than December 14, 2012, for consideration of such provisions of 
    the bill and amendment as fall within the jurisdiction of that 
               committee pursuant to clause 1(s), rule X

                           December 14, 2012

Additional sponsors: Mr. Bucshon, Mr. Roe of Tennessee, Mr. Kline, and 
                              Mr. Barletta

                           December 14, 2012

    The Committee on Veterans' Affairs discharged; committed to the 
 Committee of the Whole House on the State of the Union and ordered to 
                               be printed
 [For text of introduced bill, see copy of bill as introduced on March 
                               29, 2012]

_______________________________________________________________________

                                 A BILL


 
To reform and strengthen the workforce investment system of the Nation 
     to put Americans back to work and make the United States more 
                    competitive in the 21st century.


 


    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 2012''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

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

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

              Subtitle A--Workforce Investment Definitions

Sec. 101. Definitions.

      Subtitle B--Statewide and Local Workforce Investment Systems

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

                         Subtitle C--Job Corps

Sec. 116. Job Corps purposes.
Sec. 117. Job Corps definitions.
Sec. 118. Individuals eligible for the job corps.
Sec. 119. Recruitment, screening, selection, and assignment of 
                            enrollees.
Sec. 120. Job Corps Centers.
Sec. 121. Program activities.
Sec. 122. Counseling and Job Placement.
Sec. 123. Support.
Sec. 124. Operations.
Sec. 125. Community participation.
Sec. 126. Workforce councils.
Sec. 127. Technical assistance.
Sec. 128. Special provisions.
Sec. 129. Performance accountability management.
Sec. 130. Closure of low-performing job corps centers.
Sec. 131. Reforms for opening new job corps centers.

                     Subtitle D--National Programs

Sec. 132. Technical assistance.
Sec. 133. Evaluations.
Sec. 134. Military transitional assistance.

                       Subtitle E--Administration

Sec. 135. Requirements and restrictions.
Sec. 136. Prompt allocation of funds.
Sec. 137. Fiscal controls; Sanctions.
Sec. 138. Reports to congress.
Sec. 139. Administrative provisions.
Sec. 140. State legislative authority.
Sec. 141. Continuation of State activities and policies.
Sec. 142. General program requirements.
Sec. 143. Department Staff.

                     Subtitle F--State Unified Plan

Sec. 144. State unified plan.

        TITLE II--ADULT EDUCATION AND FAMILY LITERACY EDUCATION

Sec. 201. Amendment.

             TITLE III--AMENDMENTS TO THE WAGNER-PEYSER ACT

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

              TITLE IV--REPEALS AND CONFORMING AMENDMENTS

Sec. 401. Repeals.
Sec. 402. Amendment to the Comprehensive Environmental Response, 
                            Compensation, and Liability Act of 1980.
Sec. 403. Amendments to the Food and Nutrition Act of 2008.
Sec. 404. Conforming amendments to the United States Code.
Sec. 405. Conforming amendment to table of contents.

         TITLE V--AMENDMENTS TO THE REHABILITATION ACT OF 1973

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

SEC. 3. REFERENCES.

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

SEC. 4. EFFECTIVE DATE.

    Except as otherwise provided, this Act and the amendments made by 
this Act shall be effective with respect to fiscal year 2013 and 
succeeding fiscal years.

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

              Subtitle A--Workforce Investment Definitions

SEC. 101. DEFINITIONS.

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

      Subtitle B--Statewide and Local Workforce Investment Systems

SEC. 102. PURPOSE.

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

SEC. 103. STATE WORKFORCE INVESTMENT BOARDS.

    Section 111 (29 U.S.C. 2821) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) by striking subparagraph (B);
                            (ii) by redesignating subparagraph (C) as 
                        subparagraph (B); and
                            (iii) in subparagraph (B) (as so 
                        redesignated)--
                                    (I) by amending clause (i)(I), by 
                                striking ``section 117(b)(2)(A)(i)'' 
                                and inserting ``section 117(b)(2)(A)'';
                                    (II) by amending clause (i)(II) to 
                                read as follows:
                                    ``(II) represent businesses, 
                                including large and small businesses, 
                                with immediate and long-term employment 
                                opportunities in in-demand industries 
                                and other occupations important to the 
                                State economy; and'';
                                    (III) by striking clause (iii) and 
                                inserting the following:
                            ``(iii) a State agency official responsible 
                        for economic development; and'';
                                    (IV) by striking clauses (iv) 
                                through (vi);
                                    (V) by amending clause (vii) to 
                                read as follows:
                            ``(vii) such other representatives and 
                        State agency officials as the Governor may 
                        designate, including--
                                    ``(I) members of the State 
                                legislature;
                                    ``(II) representatives of 
                                individuals and organizations that have 
                                experience with respect to youth 
                                activities;
                                    ``(III) representatives of 
                                individuals and organizations that have 
                                experience and expertise in the 
                                delivery of workforce investment 
                                activities, including chief executive 
                                officers of community colleges and 
                                community-based organizations within 
                                the State;
                                    ``(IV) representatives of the lead 
                                State agency officials with 
                                responsibility for the programs and 
                                activities that are described in 
                                section 121(b) and carried out by one-
                                stop partners; or
                                    ``(V) representatives of veterans 
                                service organizations; and''; and
                                    (VI) by redesignating clause (vii) 
                                (as so amended) as clause (iv); and
                    (B) by amending paragraph (3) to read as follows:
            ``(3) Majority.--A \2/3\ majority of the members of the 
        board shall be representatives described in paragraph 
        (1)(B)(i).'';
            (2) in subsection (c), by striking ``(b)(1)(C)(i)'' and 
        inserting ``(b)(1)(B)(i)'';
            (3) by amending subsection (d) to read as follows:
    ``(d) Functions.--The State board shall assist the Governor of the 
State as follows:
            ``(1) State plan.--Consistent with section 112, develop a 
        State plan.
            ``(2) Statewide workforce development system.--Review and 
        develop statewide policies and programs in the State in a 
        manner that supports a comprehensive Statewide workforce 
        development system that will result in meeting the workforce 
        needs of the State and its local areas. Such review shall 
        include determining whether the State should consolidate 
        additional programs into the Workforce Investment Fund under 
        section 132(b).
            ``(3) Workforce and labor market information system.--
        Develop a statewide workforce and labor market information 
        system described in section 15(e) of the Wagner-Peyser Act, 
        which may include using existing information conducted by the 
        State economic development agency or related entity in 
        developing such system.
            ``(4) Employer engagement.--Develop strategies across local 
        areas that meet the needs of employers and support economic 
        growth in the State by enhancing communication, coordination, 
        and collaboration among employers, economic development 
        entities, and service providers.
            ``(5) Designation of local areas.--Designate local areas as 
        required under section 116.
            ``(6) One-stop delivery system.--Identify and disseminate 
        information on best practices for effective operation of one-
        stop centers, including use of innovative business outreach, 
        partnerships, and service delivery strategies.
            ``(7) Program oversight.--Conduct the following program 
        oversight:
                    ``(A) Reviewing and approving local plans under 
                section 118.
                    ``(B) Ensuring the appropriate use of management of 
                the funds provided for State employment and training 
                activities authorized under section 134.
                    ``(C) Preparing an annual report to the Secretary 
                described in section 136(d).
            ``(8) Development of performance measures.--Develop and 
        ensure continuous improvement of comprehensive State 
        performance measures, including State adjusted levels of 
        performance, as described under section 136(b).'';
            (4) by striking subsection (e) and redesignating subsection 
        (f) as subsection (e);
            (5) in subsection (e) (as so redesignated), by inserting 
        ``or participate in action taken'' after ``vote'';
            (6) by inserting after subsection (e) (as so redesignated), 
        the following:
    ``(f) Staff.--The State board may employ staff to assist in 
carrying out the functions described in subsection (d).''; and
            (7) in subsection (g), by inserting ``electronic means 
        and'' after ``on a regular basis through''.

SEC. 104. STATE PLAN.

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

SEC. 105. LOCAL WORKFORCE INVESTMENT AREAS.

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

SEC. 106. LOCAL WORKFORCE INVESTMENT BOARDS.

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

SEC. 107. LOCAL PLAN.

    Section 118 (29 U.S.C. 2833) is amended--
            (1) in subsection (a), by striking ``5-year'' and inserting 
        ``3-year'';
            (2) by amending subsection (b) to read as follows:
    ``(b) Contents.--The local plan shall include--
            ``(1) a description of the analysis of the local area's 
        economic and workforce conditions conducted under section 
        117(d)(2)(A)(i), and an assurance that the local board will use 
        such analysis to carry out the activities under this subtitle;
            ``(2) a description of the one-stop delivery system in the 
        local area, including--
                    ``(A) a description of how the local board will 
                ensure--
                            ``(i) the continuous improvement of 
                        eligible providers of services through the 
                        system; and
                            ``(ii) that such providers meet the 
                        employment needs of local businesses and 
                        participants; and
                    ``(B) a description of how the local board will 
                facilitate access to services provided through the one-
                stop delivery system consistent with section 117(d)(8);
            ``(3) a description of the strategies and services that 
        will be used in the local area--
                    ``(A) to more fully engage employers, including 
                small businesses and employers in in-demand industries 
                and occupations important to the local economy;
                    ``(B) to meet the needs of employers in the local 
                area;
                    ``(C) to better coordinate workforce development 
                programs with economic development; and
                    ``(D) to better coordinate workforce development 
                programs with employment, training, and literacy 
                services carried out by nonprofit organizations, 
                including libraries, as appropriate;
            ``(4) a description of how the local board will convene (or 
        help to convene) industry or sector partnerships that lead to 
        collaborative planning, resource alignment, and training 
        efforts across multiple firms for a range of workers employed 
        or potentially employed by a targeted industry cluster--
                    ``(A) to encourage industry growth and 
                competitiveness and to improve worker training, 
                retention, and advancement in targeted industry 
                clusters;
                    ``(B) to address the immediate and long-term 
                skilled workforce needs of in-demand industries, small 
                businesses, and other occupations important to the 
                State economy; and
                    ``(C) to address critical skill gaps within and 
                across industries;
            ``(5) a description of how the funds reserved under section 
        117(d)(4)(A)(ii) will be used to carry out activities described 
        in section 134(c)(4);
            ``(6) a description of how the local board will coordinate 
        workforce investment activities carried out in the local area 
        with statewide activities, as appropriate;
            ``(7) a description of how the local area will--
                    ``(A) coordinate activities with the local area's 
                disability community and with services provided under 
                section 614(d)(1)(A)(i)(VIII) of the Individuals with 
                Disabilities Education Act (20 U.S.C. 
                1414(d)(1)(A)(i)(VIII)) by local educational agencies 
                serving such local area to make available 
                comprehensive, high-quality services to individuals 
                with disabilities;
                    ``(B) consistent with section 188 and Executive 
                Order 13217 (42 U.S.C. 12131 note), serve the 
                employment and training needs of individuals with 
                disabilities; and
                    ``(C) consistent with sections 504 and 508 of the 
                Rehabilitation Act of 1973, include the provision of 
                outreach, intake, assessments, and service delivery, 
                the development of performance measures, the training 
                of staff, and other aspects of accessibility to 
                programs and services under this subtitle;
            ``(8) a description of the local levels of performance 
        negotiated with the Governor and chief elected official 
        pursuant to section 136(c), to be--
                    ``(A) used to measure the performance of the local 
                area; and
                    ``(B) used by the local board for measuring 
                performance of the local fiscal agent (where 
                appropriate), eligible providers, and the one-stop 
                delivery system, in the local area;
            ``(9) a description of the process used by the local board, 
        consistent with subsection (c), to provide an opportunity for 
        public comment prior to submission of the plan;
            ``(10) a description of how the local area will serve the 
        employment and training needs of dislocated workers (including 
        displaced homemakers), low-income individuals (including 
        recipients of public assistance such as the Supplemental 
        Nutrition Assistance Program), long-term unemployed individuals 
        (including individuals who have exhausted entitlement to State 
        and Federal unemployment compensation), English learners, 
        homeless individuals, individuals training for nontraditional 
        employment, youth (including out-of-school youth and at-risk 
        youth), older workers, ex-offenders, migrant and seasonal 
        farmworkers, refugee and entrants, veterans (including disabled 
        veterans and homeless veterans), and Native Americans;
            ``(11) an identification of the entity responsible for the 
        disbursal of grant funds described in subclause (III) of 
        section 117(d)(4)(B)(i), as determined by the chief elected 
        official or the Governor under such section;
            ``(12) a description of the strategies and services that 
        will be used in the local area to assist at-risk youth and out-
        of-school youth in acquiring the education and skills, 
        credentials (including recognized postsecondary credentials and 
        industry-recognized credentials), and employment experience to 
        succeed in the labor market, including--
                    ``(A) training and internships in in-demand 
                industries or occupations important to the State and 
                local economy;
                    ``(B) dropout recovery activities that are designed 
                to lead to the attainment of a regular secondary school 
                diploma or its recognized equivalent, or other State 
                recognized equivalent (including recognized alternative 
                standards for individuals with disabilities); and
                    ``(C) activities combining remediation of academic 
                skills, work readiness training, and work experience, 
                and including linkages to postsecondary education and 
                training and career-ladder employment;
            ``(13) a description of--
                    ``(A) how the local area will furnish employment, 
                training, supportive, and placement services to 
                veterans, including disabled and homeless veterans;
                    ``(B) the strategies and services that will be used 
                in the local area to assist and expedite reintegration 
                of homeless veterans into the labor force; and
                    ``(C) the veteran population to be served in the 
                local area;
            ``(14) a description of--
                    ``(A) the duties assigned to the veteran employment 
                specialist consistent with the requirements of section 
                134(f);
                    ``(B) the manner in which the veteran employment 
                specialist is integrated into the One-Stop Career 
                System described in section 121;
                    ``(C) the date on which the veteran employment 
                specialist was assigned; and
                    ``(D) whether the veteran employment specialist has 
                satisfactorily competed such training by the National 
                Veterans' Employment and Training Services Institute; 
                and
            ``(15) such other information as the Governor may 
        require.'';
            (3) in subsection (c)(1), by striking ``such means'' and 
        inserting ``electronic means such''; and
            (4) in subsection (c)(2), by striking ``, including 
        representatives of business and representatives of labor 
        organizations,''.

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

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

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

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

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

    ``(a) Eligibility.--
            ``(1) In general.--The Governor, after consultation with 
        the State board, shall establish criteria and procedures 
        regarding the eligibility of providers of training services 
        described in section 134(c)(4) to receive funds provided under 
        section 133(b) for the provision of such training services.
            ``(2) Providers.--Subject to the provisions of this 
        section, to be eligible to receive the funds provided under 
        section 133(b) for the provision of training services, the 
        provider shall be--
                    ``(A) a postsecondary educational institution 
                that--
                            ``(i) is eligible to receive Federal funds 
                        under title IV of the Higher Education Act of 
                        1965 (20 U.S.C. 1070 et seq.); and
                            ``(ii) provides a program that leads to 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 
        Secretary of Labor to carry out the programs described in 
        paragraph (2)(B).
    ``(b) Criteria.--
            ``(1) In general.--The criteria established pursuant to 
        subsection (a) shall take into account--
                    ``(A) the performance of providers of training 
                services with respect to the performance measures 
                described in section 136 and other matters for which 
                information is required under paragraph (2) and other 
                appropriate measures of performance outcomes for those 
                participants receiving training services under this 
                subtitle (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 in 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.
            ``(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 shall 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--
            ``(1) identify--
                    ``(A) the application process for a provider of 
                training services to become eligible to receive funds 
                under section 133(b) for the provision of training 
                services; and
                    ``(B) the respective roles of the State and local 
                areas in receiving and reviewing applications and in 
                making determinations of eligibility based on the 
                criteria established under this section; and
            ``(2) establish a process for a provider of training 
        services to appeal a denial or termination of eligibility under 
        this section that includes an opportunity for a hearing and 
        prescribes appropriate time limits to ensure prompt resolution 
        of the appeal.
    ``(d) Information To Assist Participants in Choosing Providers.--
            ``(1) In general.--In order to facilitate and assist 
        participants under chapter 5 in choosing providers of training 
        services, the Governor shall ensure that an appropriate list or 
        lists of providers determined eligible under this section in 
        the State, including information regarding the occupations in 
        demand that relate to the training programs of such providers 
        and the accompanying information described in paragraph (2), is 
        provided to the local boards in the State to be made available 
        to such participants and to members of the public through the 
        one-stop delivery system in the State.
            ``(2) Availability through one-stop delivery system.--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 shall be terminated.
                    ``(C) Repayment.--A provider of training services 
                whose eligibility is terminated under subparagraph (A) 
                or (B) shall be liable for the repayment of funds 
                received under chapter 5 during a period of 
                noncompliance described in such subparagraph.
            ``(2) Construction.--Paragraph (1) shall be construed to 
        provide remedies and penalties that supplement, but do not 
        supplant, other civil and criminal remedies and penalties.
    ``(f) Agreements With Other States.--States may enter into 
agreements, on a reciprocal basis, to permit eligible providers of 
training services to accept career enhancement accounts provided in 
another State.
    ``(g) Recommendations.--In developing the criteria, procedures, and 
information required under this section, the Governor shall solicit and 
take into consideration the recommendations of local boards and 
providers of training services within the State.
    ``(h) Opportunity To Submit Comments.--During the development of 
the criteria, procedures, requirements for information, and the list of 
eligible providers required under this section, the Governor shall 
provide an opportunity for interested members of the public to submit 
comments regarding such criteria, procedures, and information.
    ``(i) On-the-Job Training or Customized Training Exception.--
            ``(1) In general.--Providers of on-the-job training or 
        customized training shall not be subject to the requirements of 
        subsections (a) through (d).
            ``(2) Collection and dissemination of information.--A one-
        stop operator in a local area shall collect such performance 
        information from on-the-job training and customized training 
        providers as the Governor may require, determine whether the 
        providers meet such performance criteria as the Governor may 
        require, and disseminate information identifying providers that 
        meet the criteria as eligible providers, and the performance 
        information, through the one-stop delivery system. Providers 
        determined to meet the criteria shall be considered to be 
        identified as eligible providers of training services.''.

SEC. 110. GENERAL AUTHORIZATION.

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

SEC. 111. STATE ALLOTMENTS.

    Section 132 (29 U.S.C. 2862) is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) In General.--The Secretary shall--
            ``(1) reserve \1/2\ of 1 percent of the total amount 
        appropriated under section 137 for a fiscal year, of which--
                    ``(A) 50 percent shall be used to provide technical 
                assistance under section 170; and
                    ``(B) 50 percent shall be used for evaluations 
                under section 172;
            ``(2) reserve not more than 2 percent of the total amount 
        appropriated under section 137 for a fiscal year to make grants 
        to, and enter into contracts or cooperative agreements with 
        Indian tribes, tribal organizations, Alaska-Native entities, 
        Indian-controlled organizations serving Indians, or Native 
        Hawaiian organizations to carry out employment and training 
        activities;
            ``(3) reserve not more than 28 percent of the total amount 
        appropriated under section 137 for a fiscal year to carry out 
        the Jobs Corps program under subtitle C;
            ``(4) reserve not more than 0.15 percent of the total 
        amount appropriated under section 137 for a fiscal year to 
        carry out military transitional assistance under section 175; 
        and
            ``(5) from the remaining amount appropriated under section 
        137 for a fiscal year (after reserving funds under paragraphs 
        (1) through (4)), make allotments in accordance with subsection 
        (b) of this section.''; and
            (2) by amending subsection (b) to read as follows:
    ``(b) Workforce Investment Fund.--
            ``(1) Reservation for outlying areas.--
                    ``(A) In general.--From the amount made available 
                under subsection (a)(5) for a fiscal year, the 
                Secretary shall reserve not more than \1/4\ of 1 
                percent to provide assistance to the outlying areas.
                    ``(B) Restriction.--The Republic of Palau shall 
                cease to be eligible to receive funding under this 
                subparagraph upon entering into an agreement for 
                extension of United States educational assistance under 
                the Compact of Free Association (approved by the 
                Compact of Free Association Amendments Act of 2003 
                (Public Law 99-658)) after the date of enactment of the 
                Workforce Investment Improvement Act of 2012.
            ``(2) States.--
                    ``(A) In general.--After determining the amount to 
                be reserved under paragraph (1), the Secretary shall 
                allot the remainder of the amount referred to in 
                subsection (a)(5) for a fiscal year to the States 
                pursuant to subparagraph (B) for employment and 
                training activities and statewide workforce investment 
                activities.
                    ``(B) Formula.--Subject to subparagraphs (C) and 
                (D), of the remainder--
                            ``(i) 25 percent shall be allotted on the 
                        basis of the relative number of unemployed 
                        individuals in areas of substantial 
                        unemployment in each State, compared to the 
                        total number of unemployed individuals in areas 
                        of substantial unemployment in all States;
                            ``(ii) 25 percent shall be allotted on the 
                        basis of the relative number of individuals in 
                        the civilian labor force in each State, 
                        compared to the total number of such 
                        individuals in all States;
                            ``(iii) 25 percent shall be allotted on the 
                        basis of the relative number of individuals in 
                        each State who have been unemployed for 15 
                        weeks or more, compared to the total number of 
                        individuals in all States who have been 
                        unemployed for 15 weeks or more; and
                            ``(iv) 25 percent shall be allotted on the 
                        basis of the relative number of disadvantaged 
                        youth in each State, compared to the total 
                        number of disadvantaged youth in all States.
                    ``(C) Minimum and maximum percentages.--
                            ``(i) Minimum percentage.--The Secretary 
                        shall ensure that no State shall receive an 
                        allotment under this paragraph for--
                                    ``(I) fiscal year 2013, that is 
                                less than 100 percent of the allotment 
                                percentage of the State for the 
                                preceding fiscal year; and
                                    ``(II) fiscal year 2014 and each 
                                succeeding fiscal year, that is less 
                                than 90 percent of the allotment 
                                percentage of the State for the 
                                preceding fiscal year.
                            ``(ii) Maximum percentage.--Subject to 
                        clause (i), the Secretary shall ensure that no 
                        State shall receive an allotment under this 
                        paragraph for a fiscal year that is more than 
                        130 percent of the allotment percentage of the 
                        State for the preceding fiscal year.
                    ``(D) Small state minimum allotment.--Subject to 
                subparagraph (C), the Secretary shall ensure that no 
                State shall receive an allotment under this paragraph 
                for a fiscal year that is less than \2/10\ of 1 percent 
                of the remainder described in subparagraph (A) for the 
                fiscal year.
                    ``(E) Definitions.--For the purpose of the formula 
                specified in this paragraph:
                            ``(i) Allotment percentage.--The term 
                        `allotment percentage'--
                                    ``(I) used with respect to fiscal 
                                year 2012, means the percentage of the 
                                amounts allotted to States under title 
                                I of this Act, title V of the Older 
                                Americans Act of 1965, sections 4103A 
                                and 4104 of title 38, United States 
                                Code, section 2021 of title 38, United 
                                States Code, section 1144 of title 10, 
                                United States Code, and sections 1 
                                through 14 of the Wagner-Peyser Act, as 
                                such provisions were in effect on the 
                                day before the date of enactment of the 
                                Workforce Investment Improvement Act of 
                                2012, that is received under such 
                                provisions by the State involved for 
                                fiscal year 2012; and
                                    ``(II) used with respect to fiscal 
                                year 2013 or a subsequent year, means 
                                the percentage of the amounts allotted 
                                to States for fiscal year 2012 under 
                                the provisions described in subclause 
                                (I) that is received through an 
                                allotment made under this paragraph for 
                                the fiscal year.
                            ``(ii) Disadvantaged youth.--The term 
                        `disadvantaged youth' means an individual who 
                        is not less than age 16 and not more than age 
                        24 who receives an income, or is a member of a 
                        family that received a total family income, 
                        that in relation to family size, does not 
                        exceed the higher of--
                                    ``(I) the poverty line; or
                                    ``(II) 70 percent of the lower 
                                living standard income level.
                            ``(iii) Individual.--The term `individual' 
                        means an individual who is not less than age 16 
                        and not more than age 72.''.

SEC. 112. WITHIN STATE ALLOCATIONS.

    Section 133 is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) Reservations for Statewide Employment and Training 
Activities.--
            ``(1) In general.--The Governor of a State shall reserve up 
        to 10 percent of the total amount allotted to the State under 
        section 132(b)(2) for a fiscal year to carry out the statewide 
        activities described in paragraphs (2) and (3) of section 
        134(a).
            ``(2) Statewide rapid response activities.--Of the amount 
        reserved under paragraph (1) for a fiscal year, the Governor of 
        the State shall reserve not more than 10 percent for statewide 
        rapid response activities described in section 134(a)(4).
            ``(3) Statewide individuals with barriers to employment 
        grants.--The Governor of a State shall reserve 2 percent of the 
        total amount allotted to the State under section 132(b)(2) for 
        a fiscal year to carry out statewide activities described in 
        section 134(a)(5).'';
            (2) by amending subsection (b) to read as follows:
    ``(b) Within State Allocation.--
            ``(1) Statewide employment and training activities.--The 
        Governor, acting in accordance with the State plan, and after 
        consulting with chief elected officials in the local areas, 
        shall--
                    ``(A) allocate the funds that are allotted to the 
                State for employment and training activities and not 
                reserved under subsection (a), in accordance with 
                paragraph (2)(A); and
                    ``(B) award the funds that are reserved by the 
                State under subsection (a)(3) through competitive 
                grants to eligible entities, in accordance with section 
                134(a)(1)(C).
            ``(2) Formula allocations for the workforce investment 
        fund.--
                    ``(A) Allocation.--In allocating the funds 
                described in paragraph (1)(A) to local areas, a State 
                shall allocate--
                            ``(i) 25 percent on the basis described in 
                        section 132(b)(2)(B)(i);
                            ``(ii) 25 percent on the basis described in 
                        section 132(b)(2)(B)(ii);
                            ``(iii) 25 percent on the basis described 
                        in section 132(b)(B)(iii); and
                            ``(iv) 25 percent on the basis described in 
                        section 132(b)(2)(B)(iv).
                    ``(B) Minimum and maximum percentages.--
                            ``(i) Minimum percentage.--The State shall 
                        ensure that no local area shall receive an 
                        allocation under this paragraph for--
                                    ``(I) fiscal year 2013, that is 
                                less than 100 percent of the allocation 
                                percentage of the local area for the 
                                preceding fiscal year; and
                                    ``(II) fiscal year 2014 and each 
                                succeeding fiscal year, that is less 
                                than 90 percent of the allocation 
                                percentage of the local area for the 
                                preceding fiscal year.
                            ``(ii) Maximum percentage.--Subject to 
                        clause (i), the State shall ensure that no 
                        local area shall receive an allocation for a 
                        fiscal year under this paragraph for a fiscal 
                        year that is more than 130 percent of the 
                        allocation percentage of the local area for the 
                        preceding fiscal year.
                    ``(C) Definitions.--For the purpose of the formula 
                specified in this paragraph, the term `allocation 
                percentage'--
                            ``(i) used with respect to fiscal year 
                        2012, means the percentage of the amounts 
                        allocated to local areas under title I of this 
                        Act, title V of the Older Americans Act of 
                        1965, sections 4103A and 4104 of title 38, 
                        United States Code, section 2021 of title 38, 
                        United States Code, section 1144 of title 10, 
                        United States Code, and sections 1 through 14 
                        of the Wagner-Peyser Act, as such provisions 
                        were in effect on the day before the date of 
                        enactment of the Workforce Investment 
                        Improvement Act of 2012, that is received under 
                        such provisions by the local area involved for 
                        fiscal year 2012; and
                            ``(ii) used with respect to fiscal year 
                        2013 or a subsequent year, means the percentage 
                        of the amounts allocated to local areas for 
                        fiscal year 2012 under the provisions described 
                        in clause (i) that is received through an 
                        allocation made under this paragraph for the 
                        fiscal year.'';
            (3) in subsection (c)--
                    (A) by amending paragraph (1) to read as follows:
            ``(1) In general.--The Governor, may in accordance with 
        this subsection, reallocate to eligible local areas within the 
        State amounts that are allocated under subsection (b) for 
        employment and training activities and that are available for 
        reallocation.'';
                    (B) in paragraph (2), by striking ``paragraph 
                (2)(A) or (3) of subsection (b) for such activities'' 
                and inserting ``subsection (b) for such activities'';
                    (C) by amending paragraph (3) to read as follows:
            ``(3) Reallocations.--In making reallocations to eligible 
        local areas of amounts available pursuant to paragraph (2) for 
        a program year, the Governor shall allocate to each eligible 
        local area within the State an amount based on the relative 
        amount allocated to such local area under subsection (b)(2) for 
        such activities for such prior program year, as compared to the 
        total amount allocated to all eligible local areas in the State 
        under subsection (b)(2) for such activities for such prior 
        program year.''; and
                    (D) in paragraph (4), by striking ``paragraph 
                (2)(A) or (3) of''; and
            (4) by adding at the end the following new subsection:
    ``(d) Local Administrative Cost Limit.--Of the amounts allocated to 
a local area under this section for a fiscal year, not more than 10 
percent of the amount may be used by the local board involved for the 
administrative costs of carrying out local workforce investment 
activities in the local area under this chapter.''.

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

    Section 134 is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) Statewide Employment and Training Activities.--
            ``(1) In general.--
                    ``(A) Distribution of statewide activities.--Funds 
                reserved by a Governor for a State as described in 
                section 133(a)(1)--
                            ``(i) shall be used to carry out the 
                        statewide employment and training activities 
                        described in paragraph (2); and
                            ``(ii) may be used to carry out any of the 
                        statewide employment and training activities 
                        described in paragraph (3).
                    ``(B) Statewide rapid response activities.--Funds 
                reserved by a Governor for a State as described in 
                section 133(a)(2) shall be used to carry out the 
                statewide rapid response activities described in 
                paragraph (4).
                    ``(C) Statewide individuals with barriers to 
                employment grants.--Funds reserved by a Governor for a 
                State as described in section 133(a)(3) shall be used 
                to carry out the Statewide Individuals with Barriers to 
                Employment Grant competition described in paragraph 
                (5).
            ``(2) Required statewide employment and training 
        activities.--A State shall use funds reserved as described in 
        section 133(a)(1) to carry out statewide employment and 
        training activities, which shall include--
                    ``(A) supporting the provision of work ready 
                services described in subsection (c)(2) in the one-stop 
                delivery system;
                    ``(B) implementing innovative programs and 
                strategies designed to meet the needs of all employers 
                in the State, including small employers, which may 
                include incumbent worker training programs, sectoral 
                and industry cluster strategies and partnerships, 
                career ladder programs, micro-enterprise and 
                entrepreneurial training and support programs, 
                utilization of effective business intermediaries, 
                activities to improve linkages between the one-stop 
                delivery system in the State and all employers 
                (including small employers) in the State, and other 
                business services and strategies that better engage 
                employers in workforce investment activities and make 
                the workforce investment system more relevant to the 
                needs of State and local businesses, consistent with 
                the objectives of this title;
                    ``(C) implementing strategies and services that 
                will be used in the State to assist at-risk youth and 
                out-of-school youth in acquiring the education and 
                skills, credentials (including recognized postsecondary 
                credentials and industry-recognized credentials), and 
                employment experience to succeed in the labor market; 
                and
                    ``(D) conducting evaluations under section 136(e) 
                of activities authorized under this chapter in 
                coordination with evaluations carried out by the 
                Secretary under section 172.
            ``(3) Allowable statewide employment and training 
        activities.--A State may use funds reserved as described in 
        section 133(a)(1) to carry out statewide employment and 
        training activities which may include--
                    ``(A) 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;
                    ``(B) 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;
                    ``(C) operating a fiscal and management 
                accountability system under section 136(f);
                    ``(D) carrying out monitoring and oversight of 
                activities carried out under this chapter;
                    ``(E) developing strategies for effectively 
                integrating programs and services among one-stop 
                partners;
                    ``(F) carrying out activities to facilitate remote 
                access to services provided through a one-stop delivery 
                system, including facilitating access through the use 
                of technology; and
                    ``(G) incorporating pay-for-performance contracting 
                strategies as an element in funding activities under 
                this section.
            ``(4) Statewide rapid response activities.--A State shall 
        use funds reserved as described in section 133(a)(2) to carry 
        out statewide rapid response activities, which shall include--
                    ``(A) provision of rapid response activities, 
                carried out in local areas by the State or by an entity 
                designated by the State, working in conjunction with 
                the local boards and the chief elected officials in the 
                local areas; and
                    ``(B) provision of additional assistance to local 
                areas that experience disasters, mass layoffs or plant 
                closings, or other events that precipitate substantial 
                increases in the number of unemployed individuals, 
                carried out in local areas by the State or by an entity 
                designated by the State, working in conjunction with 
                the local boards and the chief elected officials in the 
                local areas.
            ``(5) Statewide grants for individuals with barriers to 
        employment.--
                    ``(A) In general.--Of the funds reserved as 
                described in section 133(a)(3), the Governor of a 
                State--
                            ``(i) may reserve up to 5 percent to 
                        provide technical assistance to, and conduct 
                        evaluations as described in section 136(e), of 
                        the programs and activities carried out under 
                        this paragraph; and
                            ``(ii) using the remainder, shall award 
                        grants on a competitive basis to eligible 
                        entities described in subparagraph (B) to carry 
                        out employment and training programs authorized 
                        under this paragraph for individuals with 
                        barriers to employment that meet specific 
                        performance outcomes and criteria established 
                        by the Governor under subparagraph (G).
                    ``(B) Eligible entity defined.--For purposes of 
                this paragraph, the term `eligible entity' means an 
                entity that--
                            ``(i) is a--
                                    ``(I) local board or a consortium 
                                of local boards;
                                    ``(II) nonprofit entity, for profit 
                                entity, or a consortium of nonprofit or 
                                for-profit entities; or
                                    ``(III) consortium of the entities 
                                described in subclauses (I) and (II);
                            ``(ii) has a demonstrated record of placing 
                        individuals into unsubsidized employment and 
                        serving hard to serve individuals; and
                            ``(iii) agrees to be reimbursed primarily 
                        on the basis of achievement of specified 
                        performance outcomes and criteria established 
                        under subparagraph (F).
                    ``(C) Grant period.--
                            ``(i) In general.--A grant under this 
                        paragraph shall be awarded for a period of 1 
                        year.
                            ``(ii) Grant renewal.--A Governor of a 
                        State may renew, for up to 4 additional 1-year 
                        periods, a grant awarded under this paragraph.
                    ``(D) Eligible participants.--To be eligible to 
                participate in activities under this paragraph, an 
                individual shall be a low-income individual between the 
                ages of 16 and 74 or a member of a low-income family.
                    ``(E) Use of funds.--An eligible entity receiving a 
                grant under this paragraph shall use such funds for 
                activities that are designed to assist eligible 
                participants in obtaining employment and acquiring the 
                education and skills necessary to succeed in the labor 
                market.
                    ``(F) Applications.--To be eligible to receive a 
                grant under this paragraph, an eligible entity shall 
                submit an application to a State at such time, in such 
                manner, and containing such information as the State 
                may require, including--
                            ``(i) a description of how the strategies 
                        and activities will be aligned with the State 
                        plan submitted under section 112 and the local 
                        plans submitted under section 118 with respect 
                        to the areas of the State that will be the 
                        focus of grant activities under this paragraph;
                            ``(ii) a description of the educational and 
                        skills training programs and activities the 
                        eligible entities will provide to eligible 
                        participants under this paragraph;
                            ``(iii) how the eligible entity will 
                        collaborate with State and local workforce 
                        investment systems established under this title 
                        in the provision of such programs and 
                        activities;
                            ``(iv) a description of the programs of 
                        demonstrated effectiveness on which the 
                        provision of such educational and skills 
                        training programs and activities are based, and 
                        a description of how such programs and 
                        activities will improve the education and 
                        skills training for eligible participants;
                            ``(v) a description of the populations to 
                        be served and the skill needs of those 
                        populations, and the manner in which eligible 
                        participants will be recruited and selected as 
                        participants;
                            ``(vi) a description of the private, 
                        public, local, and State resources that will be 
                        leveraged, in addition to the grant funds 
                        provided for the programs and activities under 
                        this paragraph, and how the entity will ensure 
                        the sustainability of such programs and 
                        activities after grant funds are no longer 
                        available;
                            ``(vii) a description of the extent of the 
                        involvement of employers in such programs and 
                        activities;
                            ``(viii) a description of the levels of 
                        performance the eligible entity expects to 
                        achieve with respect to the indicators of 
                        performance for all individuals specified in 
                        section in 136(b)(2);
                            ``(ix) a detailed budget and a description 
                        of the system of fiscal controls, and auditing 
                        and accountability procedures that will be used 
                        to ensure fiscal soundness for the programs and 
                        activities provided under this paragraph;
                            ``(x) the information described in clauses 
                        (i) through (vii) of subparagraph (G); and
                            ``(xi) any other criteria the Governor may 
                        require.
                    ``(G) Performance outcomes and criteria.--Not later 
                than 6 months after the date of the enactment of the 
                Workforce Investment Improvement Act of 2012, the 
                Governor of the State shall establish and publish 
                specific performance measures for the initial 
                qualification of eligible entities to receive a grant 
                under this section. At a minimum, the Governor shall 
                require each eligible entity to--
                            ``(i) identify a particular program area 
                        and client population that is not achieving 
                        optimal outcomes;
                            ``(ii) provide evidence that the proposed 
                        strategy would achieve better results;
                            ``(iii) clearly articulate and quantify the 
                        improved outcomes of such new approach;
                            ``(iv) identify data that would be required 
                        to evaluate whether outcomes are being achieved 
                        for a target population and a comparison group;
                            ``(v) identify estimated savings that would 
                        result from the improved outcomes, including to 
                        other programs or units of government;
                            ``(vi) demonstrate the capacity to collect 
                        required data, track outcomes, and validate 
                        those outcomes; and
                            ``(vii) any other criteria the Governor may 
                        require.
            ``(6) Limitation.--Not more than 5 percent of the funds 
        allotted under section 132(b) to a State and reserved as 
        described in section 133(a)(1) may be used by the State for 
        administrative costs carried out under this subsection.'';
            (2) by amending subsection (b) to read as follows:
    ``(b) Local Employment and Training Activities.--Funds allocated to 
a local area under section 133(b)(2)--
            ``(1) shall be used to carry out employment and training 
        activities described in subsection (c); and
            ``(2) may be used to carry out employment and training 
        activities described in subsection (d).''.
            (3) by striking subsection (c);
            (4) by redesignating subsections (d) and (e), as 
        subsections (c) and (d), respectively;
            (5) in subsection (c) (as so redesignated)--
                    (A) by amending paragraph (1) to read as follows:
            ``(1) In general.--Funds allocated to a local area under 
        section 133(b)(2) shall be used--
                    ``(A) to establish a one-stop delivery system as 
                described in section 121(e);
                    ``(B) to provide the work ready services described 
                in paragraph (2) through the one-stop delivery system 
                in accordance with such paragraph; and
                    ``(C) to provide training services described in 
                paragraph (4) in accordance with such paragraph.'';
                    (B) in paragraph (2)--
                            (i) in the heading, by striking ``Core 
                        services'' and inserting ``Work ready 
                        services'';
                            (ii) by striking ``core services'' and 
                        inserting ``work ready services'';
                            (iii) by striking ``who are adults or 
                        dislocated workers'';
                            (iv) 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'';
                            (v) 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));'';
                            (vi) in subparagraph (E), by striking 
                        ``employment statistics'' and inserting 
                        ``workforce and labor market'';
                            (vii) in subparagraph (F), by striking 
                        ``and eligible providers of youth activities 
                        described in section 123,'';
                            (viii) in subparagraph (I), by inserting 
                        ``and the administration of the work test for 
                        the unemployment compensation system'' after 
                        ``compensation'';
                            (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
                            (x) by redesignating subparagraph (K) as 
                        subparagraph (U); 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;
                    ``(L) comprehensive and specialized assessments of 
                the skill levels and service needs of workers, which 
                may include--
                            ``(i) diagnostic testing and use of other 
                        assessment tools; and
                            ``(ii) in-depth interviewing and evaluation 
                        to identify employment barriers and appropriate 
                        employment goals;
                    ``(M) 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;
                    ``(N) group counseling;
                    ``(O) individual counseling and career planning;
                    ``(P) case management;
                    ``(Q) short-term pre-career services, including 
                development of learning skills, communications skills, 
                interviewing skills, punctuality, personal maintenance 
                skills, and professional conduct, to prepare 
                individuals for unsubsidized employment or training;
                    ``(R) internships and work experience;
                    ``(S) 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.);
                    ``(T) out-of-area job search assistance and 
                relocation assistance; and''; and
                    (C) by amending paragraph (3) to read as follows:
            ``(3) Delivery of services.--The work ready services 
        described in paragraph (2) shall be provided through the one-
        stop delivery system and may be provided through contracts with 
        public, private for-profit, and private nonprofit service 
        providers, approved by the local board.'';
                    (D) in paragraph (4)--
                            (i) by amending subparagraph (A) to read as 
                        follows:
                    ``(A) In general.--Funds allocated to a local area 
                under section 133(b) shall be used to provide training 
                services to individuals who--
                            ``(i) after an interview, evaluation, or 
                        assessment, and case management, have been 
                        determined by a one-stop operator or one-stop 
                        partner, as appropriate, to--
                                    ``(I) be in need of training 
                                services to obtain or retain 
                                employment; and
                                    ``(II) have the skills and 
                                qualifications to successfully 
                                participate in the selected program of 
                                training services;
                            ``(ii) select programs of training services 
                        that are directly linked to the employment 
                        opportunities in the local area involved or in 
                        another area in which the individual receiving 
                        such services are willing to commute or 
                        relocate; and
                            ``(iii) who meet the requirements of 
                        subparagraph (B);''; and
                            (ii) in subparagraph (B)(i), by striking 
                        ``Except'' and inserting ``Notwithstanding 
                        section 479B of the Higher Education Act of 
                        1965 (20 U.S.C. 1087uu) and except'';
                            (iii) by amending subparagraph (D) to read 
                        as follows:
                    ``(D) Training services.--Training services 
                authorized under this paragraph may include--
                            ``(i) occupational skills training;
                            ``(ii) on-the-job training;
                            ``(iii) skill upgrading and retraining;
                            ``(iv) entrepreneurial training;
                            ``(v) education activities leading to a 
                        regular secondary school diploma or its 
                        recognized equivalent in combination with, 
                        concurrently or subsequently, occupational 
                        skills training;
                            ``(vi) adult education and literacy 
                        activities provided in conjunction with other 
                        training authorized under this subparagraph;
                            ``(vii) workplace training combined with 
                        related instruction; and
                            ``(viii) occupational skills training that 
                        incorporates English language acquisition.'';
                            (iv) by striking subparagraph (E) and 
                        redesignating subparagraphs (F) and (G) as 
                        subparagraphs (E) and (F), respectively; and
                            (v) in subparagraph (E) (as so 
                        redesignated)--
                                    (I) in clause (ii)--
                                            (aa) in the matter 
                                        preceding subclause (I), by 
                                        striking ``subsection (c)'' and 
                                        inserting ``section 121''; and
                                            (bb) in subclause (II), by 
                                        striking ``subsections (e) and 
                                        (h)'' and inserting 
                                        ``subsection (i)''; and
                                    (II) by striking clause (iii) and 
                                inserting the following:
                            ``(iii) Career enhancement accounts.--An 
                        individual who seeks training services and who 
                        is eligible pursuant to subparagraph (A), may, 
                        in consultation with a case manager, select an 
                        eligible provider of training services from the 
                        list or identifying information for providers 
                        described in clause (ii)(I). Upon such 
                        selection, the one-stop operator involved 
                        shall, to the extent practicable, refer such 
                        individual to the eligible provider of training 
                        services, and arrange for payment for such 
                        services through a career enhancement account.
                            ``(iv) Coordination.--Each local board may, 
                        through one-stop centers, coordinate career 
                        enhancement accounts with other Federal, State, 
                        local, or private job training programs or 
                        sources to assist the individual in obtaining 
                        training services.
                            ``(v) 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 (F) (as so 
                        redesignated)--
                                    (I) in the subparagraph heading, by 
                                striking ``individual training 
                                accounts'' and inserting ``career 
                                enhancement accounts'';
                                    (II) in clause (i) by striking 
                                ``individual training accounts'' and 
                                inserting ``career enhancement 
                                accounts'';
                                    (III) in clause (ii)--
                                            (aa) by striking ``an 
                                        individual training account'' 
                                        and inserting ``a career 
                                        enhancement account'';
                                            (bb) 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 
                                in-demand sectors or occupations, if 
                                such contract does not limit customer 
                                choice.'';
                                    (IV) in clause (iii), by striking 
                                ``adult or dislocated worker'' and 
                                inserting ``individual''; and
                                    (V) in clause (iv)--
                                            (aa) by redesignating 
                                        subclause (IV) as subclause (V) 
                                        and inserting after subclause 
                                        (III) the following:
                                    ``(IV) Individuals with 
                                disabilities.'';
            (6) in subsection (d) (as so redesignated)--
                    (A) by amending paragraph (1) to read as follows:
            ``(1) Discretionary one-stop delivery activities.--
                    ``(A) In general.--Funds allocated to a local area 
                under section 133(b) may be used to provide, through 
                the one-stop delivery system--
                            ``(i) customized screening and referral of 
                        qualified participants in training services to 
                        employers;
                            ``(ii) customized employment-related 
                        services to employers on a fee-for-service 
                        basis;
                            ``(iii) customer supports, including 
                        transportation and childcare, to navigate among 
                        multiple services and activities for special 
                        participant populations that face multiple 
                        barriers to employment, including individuals 
                        with disabilities;
                            ``(iv) employment and training assistance 
                        provided in coordination with child support 
                        enforcement activities of the State agency 
                        carrying out subtitle D of title IV of the 
                        Social Security Act (42 U.S.C. 651 et seq.);
                            ``(v) incorporating pay-for-performance 
                        contracting strategies as an element in funding 
                        activities under this section;
                            ``(vi) activities to facilitate remote 
                        access to services provided through a one-stop 
                        delivery system, including facilitating access 
                        through the use of technology; and
                            ``(vii) activities to carry out business 
                        services and strategies that meet the workforce 
                        investment needs of local area employers, as 
                        determined by the local board, consistent with 
                        the local plan under section 118.''.
                    (B) by striking paragraphs (2) and (3); and
                    (C) by adding at the end the following:
            ``(2) Incumbent worker training programs.--
                    ``(A) In general.--The local board may use funds 
                allocated to a local area under section 133(b)(2) to 
                carry out incumbent worker training programs in 
                accordance with this paragraph.
                    ``(B) Training activities.--The training programs 
                for incumbent workers under this paragraph shall be 
                carried out by the local area in conjunction with the 
                employers of such workers for the purpose of assisting 
                such workers in obtaining the skills necessary to 
                retain employment and avert layoffs.
                    ``(C) Employer match required.--
                            ``(i) In general.--Employers participating 
                        in programs under this paragraph shall be 
                        required to pay a proportion of the costs of 
                        providing the training to the incumbent workers 
                        of the employers. The 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 50 percent of the costs.
                            ``(ii) Calculation of match.--The wages 
                        paid by an employer to a worker while they are 
                        attending training may be included as part of 
                        the required payment of the employer.''; and
            (7) by adding at the end the following:
    ``(e) Priority for Placement in Private Sector Jobs.--In providing 
employment and training activities authorized under this section, the 
State and local board shall give priority to placing participants in 
jobs in the private sector.
    ``(f) Veteran Employment Specialist.--
            ``(1) In general.--A local area shall hire and employ one 
        or more veteran employment specialist to carry out employment, 
        training, and placement services under this subsection.
            ``(2) Principal duties.--A veteran employment specialist in 
        a local area shall--
                    ``(A) conduct outreach to employers in the local 
                area to assist veterans, including disabled veterans, 
                in gaining employment, including--
                            ``(i) conducting seminars for employers; 
                        and
                            ``(ii) in conjunction with employers, 
                        conducting job search workshops, and 
                        establishing job search groups; and
                    ``(B) facilitate employment, training, supportive, 
                and placement services furnished to veterans, including 
                disabled and homeless veterans, in the local area.
            ``(3) Hiring preference for veterans and individuals with 
        expertise in serving veterans.--A local area shall, to the 
        maximum extent practicable, employ veterans or individuals with 
        expertise in serving veterans to carry out the services 
        described in paragraph (2). In hiring an individual to serve as 
        a veteran employment specialist, a local board shall give 
        preference to veterans and other individuals in the following 
        order:
                    ``(A) To qualified service-connected disabled 
                veterans.
                    ``(B) If no veteran described in subparagraph (A) 
                is available, to qualified eligible veterans.
                    ``(C) If no veteran described in subparagraph (A) 
                or (B) is available, to any other individuals with 
                expertise in serving veterans.
            ``(4) Reporting.--
                    ``(A) In general.--Each veteran employment 
                specialist shall be administratively responsible to the 
                manager of the one-stop delivery center in the local 
                area and shall provide reports, not less frequently 
                than quarterly, to the manager of such center and to 
                the Director for Veterans' Employment and Training for 
                the State on compliance by the representative with 
                Federal law and regulations with respect to the special 
                services and hiring preferences described in paragraph 
                (3) for veterans and individuals with expertise in 
                serving veterans.
                    ``(B) Report to secretary.--Each State shall submit 
                to the Secretary an annual report on the qualifications 
                used by the local area in making hiring determinations 
                for a veteran employment specialist and the salary 
                structure under which such specialists are compensated.
                    ``(C) Report to congress.--The Secretary shall 
                submit to the Committee on Education and the Workforce 
                of the House of Representatives and the Committee on 
                Health, Education, Labor, and Pensions of the Senate an 
                annual report summarizing the reports submitted under 
                subparagraph (B), including summaries of outcomes 
                achieved by participating veterans disaggregated by 
                local communities.
            ``(5) Part-time employees.--A part-time veteran employment 
        specialist shall perform the functions of a veteran employment 
        specialist under this subsection on a halftime basis.
            ``(6) Training requirements.--Each veteran employment 
        specialist described in paragraph (1) shall satisfactorily 
        complete training provided by the National Veterans' Employment 
        and Training Institute during the three-year period that begins 
        on the date on which the employee is so assigned.
            ``(7) Specialist's duties.--A full-time veteran employment 
        specialist shall perform only duties related to the employment, 
        training, supportive, and placement services under this 
        subtitle, and shall not perform other non-veteran-related 
        duties if such duties detract from the specialist's ability to 
        perform the specialist's duties related to employment, 
        training, and placement services under this subtitle.''.

SEC. 114. PERFORMANCE ACCOUNTABILITY SYSTEM.

    Section 136 (29 U.S.C. 2871) is amended--
            (1) in subsection (b)--
                    (A) by amending paragraphs (1) and (2) to read as 
                follows:
            ``(1) In general.--For each State, the State performance 
        measures shall consist of--
                    ``(A)(i) the core indicators of performance 
                described in paragraph (2)(A); and
                    ``(ii) additional indicators of performance (if 
                any) identified by the State under paragraph (2)(B); 
                and
                    ``(B) a State adjusted level of performance for 
                each indicator described in subparagraph (A).
            ``(2) Indicators of performance.--
                    ``(A) Core indicators of performance.--
                            ``(i) In general.--The core indicators of 
                        performance for the program of employment and 
                        training activities authorized under sections 
                        132(a)(2), 134, and 175, the program of adult 
                        education and literacy activities authorized 
                        under title II, and the program authorized 
                        under title I of the Rehabilitation Act of 1973 
                        (29 U.S.C. 720 et seq.), other than section 112 
                        or part C of that title (29 U.S.C. 732, 741), 
                        shall consist of the following indicators of 
                        performance, each disaggregated by the 
                        populations identified in the State and local 
                        plans:
                                    ``(I) the percentage and number of 
                                program participants who are in 
                                unsubsidized employment during the 
                                second full calendar quarter after exit 
                                from the program;
                                    ``(II) the percentage and number of 
                                program participants who are in 
                                unsubsidized employment during the 
                                fourth full calendar quarter after exit 
                                from the program;
                                    ``(III) the median earnings of 
                                program participants who are in 
                                unsubsidized employment during the 
                                second full calendar quarter after exit 
                                from the program compared to the median 
                                earnings of such participants prior to 
                                the training received under such 
                                program;
                                    ``(IV) the percentage and number of 
                                program participants who obtain a 
                                recognized postsecondary credential, 
                                including a registered apprenticeship, 
                                an industry-recognized credential, or a 
                                regular secondary school diploma or its 
                                recognized equivalent (subject to 
                                clause (iii)), during participation in 
                                or within 1 year after exit from 
                                program;
                                    ``(V) the percentage and number of 
                                program participants who, during a 
                                program year--
                                            ``(aa) are in an education 
                                        or training program that leads 
                                        to a recognized postsecondary 
                                        credential, including a 
                                        registered apprenticeship or 
                                        on-the-job training program, an 
                                        industry-recognized credential, 
                                        a regular secondary school 
                                        diploma or its recognized 
                                        equivalent, or unsubsidized 
                                        employment; and
                                            ``(bb) are achieving 
                                        measurable basic skill gains 
                                        toward such a credential or 
                                        employment; and
                                    ``(VI) the percentage and number of 
                                program participants who obtain 
                                unsubsidized employment in the field 
                                relating to the training services 
                                described in section 134(c)(4) that 
                                such participants received.
                            ``(ii) Indicator relating to credential.--
                        For purposes of clause (i)(IV), program 
                        participants who obtain a regular secondary 
                        school diploma or its recognized equivalent 
                        shall be included in the percentage counted as 
                        meeting the criterion under such clause only if 
                        such participants, in addition to obtaining 
                        such diploma or its recognized equivalent, 
                        have, within 1 year after exit from the 
                        program, obtained or retained employment, have 
                        been removed from public assistance, or are in 
                        an education or training program leading to a 
                        recognized postsecondary credential described 
                        in clause (i)(IV).
                    ``(B) Additional indicators.--A State may identify 
                in the State plan additional indicators for workforce 
                investment activities authorized under this 
                subtitle.''; and
                    (B) in paragraph (3)--
                            (i) in subparagraph (A)--
                                    (I) in the heading, by striking 
                                ``and customer satisfaction 
                                indicator'';
                                    (II) in clause (i), by striking 
                                ``and the customer satisfaction 
                                indicator described in paragraph 
                                (2)(B)'';
                                    (III) in clause (ii), by striking 
                                ``and the customer satisfaction 
                                indicator of performance, for the first 
                                3'' and inserting ``, for the first 
                                2'';
                                    (IV) in clause (iii)--
                                            (aa) in the heading, by 
                                        striking ``3 years'' and 
                                        inserting ``2 years''; and
                                            (bb) by striking ``and the 
                                        customer satisfaction indicator 
                                        of performance, for the first 3 
                                        program years'' and inserting 
                                        ``for the first 2 program 
                                        years'';
                                    (V) in clause (iv)--
                                            (aa) by striking subclause 
                                        (I) and redesignating 
                                        subclauses (II) and (III) as 
                                        subclauses (I) and (II), 
                                        respectively; and
                                            (bb) in subclause (I) (as 
                                        so redesignated)--

                                                    (AA) by striking 
                                                ``taking into account'' 
                                                and inserting ``which 
                                                shall be adjusted based 
                                                on'';

                                                    (BB) by inserting 
                                                ``, such as 
                                                unemployment rates and 
                                                job losses or gains in 
                                                particular industries'' 
                                                after ``economic 
                                                conditions''; and

                                                    (CC) by inserting 
                                                ``, such as indicators 
                                                of poor work 
                                                experience, dislocation 
                                                from high-wage 
                                                employment, low levels 
                                                of literacy or English 
                                                proficiency, disability 
                                                status, including the 
                                                number of veterans with 
                                                disabilities, and 
                                                welfare dependency'' 
                                                after ``program'';

                                    (VI) by striking clause (v) and 
                                redesignating clause (vi) as clause 
                                (v); and
                                    (VII) in clause (v) (as so 
                                redesignated),
                                            (aa) by striking 
                                        ``described in clause 
                                        (iv)(II)'' and inserting 
                                        ``described in clause 
                                        (iv)(I)''; and
                                            (bb) by striking ``or 
                                        (v)''; and
                            (ii) in subparagraph (B), by striking 
                        ``paragraph (2)(C)'' and inserting ``paragraph 
                        (2)(B)'';
            (2) in subsection (c)(1)(A)--
                    (A) by amending clause (i) to read as follows: 
                ``(i) the core indicators of performance described in 
                subsection (b)(2)(A) for activities described in such 
                subsections, other than statewide workforce investment 
                activities; and'';
                    (B) in clause (ii), by striking ``(b)(2)(C)'' and 
                inserting ``(b)(2)(B)''; and
                    (C) by amending paragraph (3) to read as follows:
            ``(3) Determinations.--In determining such local levels of 
        performance, the local board, the chief elected official, and 
        the Governor shall ensure such levels are adjusted based on the 
        specific economic characteristics (such as unemployment rates 
        and job losses or gains in particular industries), demographic 
        characteristics, or other characteristics of the population to 
        be served in the local area, 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.'';
            (3) in subsection (d)--
                    (A) in paragraph (1)--
                            (i) by striking ``127 or'';
                            (ii) by inserting ``maintain a central 
                        repository of policies related to access, 
                        eligibility, availability of services, and 
                        other matters approved by the State board and 
                        plans and such policies approved by each local 
                        board and make such repository available to the 
                        public, including by electronic means and 
                        shall'' after ``132 shall''; and
                            (iii) by striking ``and the customer 
                        satisfaction indicator'' each place it appears;
                    (B) in paragraph (2)--
                            (i) in subparagraph (A), by striking 
                        ``section 134(d)(4)'' and inserting ``section 
                        134(c)(4)'';
                            (ii) in subparagraph (E), by striking 
                        ``(excluding participants who received only 
                        self-service and informational activities);'' 
                        and inserting a semicolon;
                            (iii) by striking ``and'' at the end of 
                        subparagraph (E);
                            (iv) by striking the period at the end of 
                        subparagraph (F) and inserting a semicolon;
                            (v) by adding at the end, the following:
                    ``(G) with respect to each local area in the 
                State--
                            ``(i) the number of individuals who 
                        received work ready services described under 
                        section 134(c)(2) and the number of individuals 
                        who received training services described under 
                        section 134(c)(4) during the most recent 
                        program year and fiscal year, and the preceding 
                        5 program years, where the individuals received 
                        the training, disaggregated by the type of 
                        entity that provided the training, and the 
                        amount of funds spent on each type of service;
                            ``(ii) the number of individuals who 
                        successfully exited out of work ready services 
                        described under section 134(c)(2) and the 
                        number of individuals who exited out of 
                        training services described under section 
                        134(c)(4) during the most recent program year 
                        and fiscal year, and the preceding 5 program 
                        years, and where the individuals received the 
                        training, disaggregated by the type of entity 
                        that provided the training; and
                            ``(iii) the average cost per participant of 
                        those individuals who received work ready 
                        services described under section 134(c)(2) and 
                        the average cost per participant of those 
                        individuals who received training services 
                        described under section 134(c)(4) during the 
                        most recent program year and fiscal year, and 
                        the preceding 5 program years, and where the 
                        individuals received the training, 
                        disaggregated by the type of entity that 
                        provided the training; and
                    ``(H) the amount of funds spent on training 
                services and discretionary one-stop delivery 
                activities, disaggregated by the populations identified 
                in the State and local plans.'';
                    (C) in paragraph (3)(A), by striking ``through 
                publication'' and inserting ``through electronic 
                means''; and
                    (D) by adding at the end the following:
            ``(4) Data validation.--In preparing the reports described 
        in this subsection, each State shall establish procedures, 
        consistent with guidelines issued by the Secretary, to ensure 
        the information contained in the report is valid and 
        reliable.'';
            (4) in subsection (g)--
                    (A) in paragraph (1)(A), by striking ``or (B)'';
                    (B) in paragraph (1)(B), by striking ``may reduce 
                by not more than 5 percent,'' and inserting ``shall 
                reduce''; and
                    (C) by striking paragraph (2) and inserting the 
                following:
            ``(2) Funds resulting from reduced allotments.--The 
        Secretary shall return to the Treasury the amount retained, as 
        a result of a reduction in an allotment to a State made under 
        paragraph (1)(B).'';
            (5) in subsection (h)(1), by striking ``or (B)'';
            (6) in subsection (h)(2)--
                    (A) in subparagraph (A), by amending the matter 
                preceding clause (i) to read as follows:
                    ``(A) In general.--If such failure continues for a 
                second consecutive year, the Governor shall take 
                corrective actions, including the development of a 
                reorganization plan. Such plan shall--'';
                    (B) by redesignating subparagraphs (B) and (C) as 
                subparagraphs (C) and (D), respectively;
                    (C) by inserting after subparagraph (A), the 
                following:
                    ``(B) Reduction in the amount of grant.--If such 
                failure continues for a third consecutive year, the 
                Governor of a State shall reduce the amount of the 
                grant that would (in the absence of this subparagraph) 
                be payable to the local area under such program for the 
                program year after such third consecutive year. Such 
                penalty shall be based on the degree of failure to meet 
                local levels of performance.'';
                    (D) in subparagraph (C)(i) (as so redesignated), by 
                striking ``a reorganization plan under subparagraph (A) 
                may, not later than 30 days after receiving notice of 
                the reorganization plan, appeal to the Governor to 
                rescind or revise such plan'' and inserting 
                ``corrective actions under subparagraphs (A) and (B) 
                may, not later than 30 days after receiving notice of 
                the actions, appeal to the Governor to rescind or 
                revise such actions''; and
                    (E) in subparagraph (D) (as so redesignated), by 
                striking ``subparagraph (B)'' each place it appears and 
                inserting ``subparagraph (C)'';
            (7) in subsection (i)(1)(C), by striking ``(b)(3)(A)(vi)'' 
        and inserting ``(b)(3)(A)(v)'';
            (8) in subsection (i)(1)(B), by striking ``subsection 
        (b)(2)(C)'' and inserting ``subsection (b)(2)(B)''; and
            (9) by adding at the end the following subsection:
    ``(j) Use of Core Indicators for Other Programs.--In addition to 
the programs carried out under chapter 5, and consistent with the 
requirements of the applicable authorizing laws, the Secretary shall 
use the core indicators of performance described in subsection 
(b)(2)(A) to assess the effectiveness of the programs described under 
section 121(b)(1)(B) that are carried out by the Secretary.''.

SEC. 115. AUTHORIZATION OF APPROPRIATIONS.

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

``SEC. 137. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out the 
activities described in section 132, $6,292,486,000 for fiscal year 
2013 and each of the 5 succeeding fiscal years.''.

                         Subtitle C--Job Corps

SEC. 116. JOB CORPS PURPOSES.

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

SEC. 117. JOB CORPS DEFINITIONS.

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

SEC. 118. INDIVIDUALS ELIGIBLE FOR THE JOB CORPS.

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

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

    Section 145 (29 U.S.C. 2885) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (2)(C)(i) by striking 
                ``vocational'' and inserting ``career and technical 
                education and training'';
                    (B) in paragraph (3)--
                            (i) by striking ``To the extent 
                        practicable, the'' and inserting ``The'';
                            (ii) in subparagraph (A)--
                                    (I) by striking ``applicable''; and
                                    (II) by inserting ``and'' after the 
                                semicolon;
                            (iii) by striking subparagraphs (B) and 
                        (C); and
                            (iv) by adding at the end the following:
                    ``(B) organizations that have a demonstrated record 
                of effectiveness in placing at-risk youth into 
                employment.''; and
                    (C) in paragraph (5), by inserting at the end the 
                following: ``The Secretary shall allot not more than 
                \1/2\ of 1 percent of the budget of the Job Corps 
                program for the purpose of this paragraph.'';
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (B), by inserting ``and 
                        agrees to such rules'' after ``failure to 
                        observe the rules''; and
                            (ii) by amending subparagraph (C) to read 
                        as follows:
                    ``(C) the individual has passed a background check 
                conducted in accordance with procedures established by 
                the Secretary, which shall include--
                            ``(i) a search of the State criminal 
                        registry or repository in the State where the 
                        individual resides and each State where the 
                        individual previously resided;
                            ``(ii) a search of State-based child abuse 
                        and neglect registries and databases in the 
                        State where the individual resides and each 
                        State where the individual previously resided;
                            ``(iii) a search of the National Crime 
                        Information Center;
                            ``(iv) a Federal Bureau of Investigation 
                        fingerprint check using the Integrated 
                        Automated Fingerprint Identification System; 
                        and
                            ``(v) a search of the National Sex Offender 
                        Registry established under the Adam Walsh Child 
                        Protection and Safety Act of 2006 (42 U.S.C. 
                        16901 et seq.).''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(3) Individuals convicted of a crime.--An individual 
        shall be ineligible for enrollment if the individual--
                    ``(A) makes a false statement in connection with 
                the criminal background check described in paragraph 
                (1)(C);
                    ``(B) is registered or is required to be registered 
                on a State sex offender registry or the National Sex 
                Offender Registry established under the Adam Walsh 
                Child Protection and Safety Act of 2006 (42 U.S.C. 
                16901 et seq.); or
                    ``(C) has been convicted of a felony consisting 
                of--
                            ``(i) homicide;
                            ``(ii) child abuse or neglect;
                            ``(iii) a crime against children, including 
                        child pornography;
                            ``(iv) a crime involving rape or sexual 
                        assault; or
                            ``(v) physical assault, battery, or a drug-
                        related offense, committed within the past 5 
                        years.''.
            (3) in subsection (c)--
                    (A) in paragraph (1)--
                            (i) by striking ``2 years'' and inserting 
                        ``year''; and
                            (ii) by striking ``an assignment'' and 
                        inserting ``a'';
                    (B) in paragraph (2)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``, every 2 years,'';
                            (ii) in subparagraph (B), by striking 
                        ``and'' at the end; and
                            (iii) in subparagraph (C)--
                                    (I) by inserting ``the education 
                                and training'' after ``including''; and
                                    (II) by striking the period at the 
                                end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(D) the performance of the Job Corps center 
                relating to the indicators described in paragraphs (1) 
                and (2) in section 159(c)(1), and whether any actions 
                have been taken with respect to such center pursuant to 
                paragraph (3) of section 159(f).'';
            (4) in subsection (d)--
                    (A) in paragraph (1)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``is closest to the home of 
                        the enrollee, except that the'' and inserting 
                        ``offers the type of career and technical 
                        education and training selected by the 
                        individual and, among the centers that offer 
                        such education and training, is closest to the 
                        home of the individual. The'';
                            (ii) by striking subparagraph (A); and
                            (iii) by redesignating subparagraphs (B) 
                        and (C) as subparagraphs (A) and (B), 
                        respectively; and
                    (B) in paragraph (2), by inserting ``that offers 
                the career and technical education and training desired 
                by'' after ``home of the enrollee''.

SEC. 120. JOB CORPS CENTERS.

    Section 147 (29 U.S.C. 2887) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A), by striking 
                        ``vocational'' both places it appears and 
                        inserting ``career and technical''; and
                            (ii) in subparagraph (B)--
                                    (I) by striking ``may'' and 
                                inserting ``shall'';
                                    (II) by inserting ``that resides in 
                                the State in which the Jobs Corps 
                                center is located'' before ``to 
                                provide''; and
                                    (III) by inserting before the 
                                period at the end the following: ``, as 
                                appropriate'';
                    (B) in paragraph (2)--
                            (i) in subparagraph (A)--
                                    (I) by striking ``subsections (c) 
                                and (d) of section 303 of the Federal 
                                Property and Administrative Services 
                                Act of 1949 (41 U.S.C. 253)'' and 
                                inserting ``subsections (a) and (b) of 
                                section 3304 of title 41, United States 
                                Code''; and
                                    (II) by striking ``industry 
                                council'' and inserting ``workforce 
                                council'';
                            (ii) in subparagraph (B)(i)--
                                    (I) by amending subclause (II) to 
                                read as follows:
                                    ``(II) the ability of the entity to 
                                offer career and technical education 
                                and training that the workforce council 
                                proposes under section 154(c);'';
                                    (II) in subclause (III), by 
                                striking ``is familiar with the 
                                surrounding communities,'' and 
                                inserting ``demonstrates relationships 
                                with the surrounding communities, 
                                employers, workforce boards,'' and by 
                                striking ``and'' at the end;
                                    (III) by amending subclause (IV) to 
                                read as follows:
                                    ``(IV) the performance of the 
                                entity, if any, relating to operating 
                                or providing activities described in 
                                this subtitle to a Job Corps center, 
                                including the entity's demonstrated 
                                effectiveness in assisting individuals 
                                in achieving the primary and secondary 
                                indicators of performance described in 
                                paragraphs (1) and (2) of section 
                                159(c); and''; and
                                    (IV) by adding at the end the 
                                following new subclause:
                                    ``(V) the ability of the entity to 
                                demonstrate a record of successfully 
                                assisting at-risk youth to connect to 
                                the workforce, including by providing 
                                them with intensive academic, and 
                                career and technical education and 
                                training.''; and
                            (iii) in subparagraph (B)(ii), by striking 
                        ``, as appropriate'';
            (2) in subsection (b), by striking ``In any year, no more 
        than 20 percent of the individuals enrolled in the Job Corps 
        may be nonresidential participants in the Job Corps.'';
            (3) by amending subsection (c) to read as follows:
    ``(c) Civilian Conservation Centers.--
            ``(1) In general.--The Job Corps centers may include 
        Civilian Conservation Centers, operated under an agreement 
        between the Secretary of Labor and the Secretary of 
        Agriculture, that are located primarily in rural areas. Such 
        centers shall adhere to all the provisions of this subtitle, 
        and shall provide, in addition to education, career and 
        technical education and training, and workforce preparation 
        skills training described in section 148, programs of work 
        experience to conserve, develop, or manage public natural 
        resources or public recreational areas or to develop community 
        projects in the public interest.
            ``(2) Selection process.--The Secretary shall select an 
        entity that submits an application under subsection (d) to 
        operate a Civilian Conservation Center on a competitive basis, 
        as provided in subsection (a).''; and
            (4) by striking subsection (d) and inserting the following:
    ``(d) Application.--To be eligible to operate a Job Corps center 
under this subtitle, an entity shall submit an application to the 
Secretary at such time, in such manner, and containing such information 
as the Secretary may require, including--
            ``(1) a description of the program activities that will be 
        offered at the center, including how the career and technical 
        education and training reflect State and local employment 
        opportunities, including in in-demand industries;
            ``(2) a description of the counseling, placement, and 
        support activities that will be offered at the center, 
        including a description of the strategies and procedures the 
        entity will use to place graduates into unsubsidized employment 
        upon completion of the program;
            ``(3) a description of the demonstrated record of 
        effectiveness that the entity has in placing at-risk youth into 
        employment, including past performance of operating a Job Corps 
        center under this subtitle;
            ``(4) a description of the relationships that the entity 
        has developed with State and local workforce boards, employers, 
        State and local educational agencies, and the surrounding 
        communities in an effort to promote a comprehensive statewide 
        workforce development system;
            ``(5) a description of the strong fiscal controls the 
        entity has in place to ensure proper accounting of Federal 
        funds;
            ``(6) a description of the strategies and policies the 
        entity will utilize to reduce participant costs;
            ``(7) a detailed budget of the activities that will be 
        supported using funds under this subtitle;
            ``(8) a detailed budget of the activities that will be 
        supported using funds from non-Federal resources;
            ``(9) an assurance the entity will comply with the 
        administrative cost limitation included in section 151(c);
            ``(10) an assurance the entity is licensed to operate in 
        the State in which the center is located; and
            ``(11) an assurance the entity will comply with and meet 
        basic health and safety codes, including those measures 
        described in section 152(b).
    ``(e) Length of Agreement.--The agreement described in subsection 
(a)(1)(A) shall be for not longer than a 2-year period. The Secretary 
may renew the agreement for 3 one-year periods if the entity meets the 
requirements of subsection (f).
    ``(f) Renewal.--
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        may renew the terms of an agreement described in subsection 
        (a)(1)(A) for an entity to operate a Job Corps center if the 
        center meets or exceeds each of the indicators of performance 
        described in section 159(c)(1).
            ``(2) Recompetition.--
                    ``(A) In general.--Notwithstanding paragraph (1), 
                the Secretary shall not renew the terms of the 
                agreement for an entity to operate a Job Corps center 
                if such center is ranked in the bottom quintile of 
                centers described in section 159(f)(2) for any program 
                year. Such entity may submit a new application under 
                subsection (d) only if such center has shown 
                significant improvement in the indicators of 
                performance described in section 159(c)(1) over the 
                last program year.
                    ``(B) Violations.--The Secretary shall not select 
                an entity to operate a Job Corps center if such entity 
                or such center has been found to have a systemic or 
                substantial material failure that involves--
                            ``(i) a threat to the health, safety, or 
                        civil rights of program participants or staff;
                            ``(ii) the misuse of funds received under 
                        this subtitle;
                            ``(iii) loss of legal status or financial 
                        viability, loss of permits, debarment from 
                        receiving Federal grants or contracts, or the 
                        improper use of Federal funds;
                            ``(iv) failure to meet any other Federal or 
                        State requirement that the entity has shown an 
                        unwillingness or inability to correct, after 
                        notice from the Secretary, within the period 
                        specified; or
                            ``(v) an unresolved area of noncompliance.
    ``(g) Current Grantees.--Not later than 60 days after the date of 
enactment of the Workforce Investment Improvement Act of 2012 and 
notwithstanding any previous grant award or renewals of such award 
under this subtitle, the Secretary shall require all entities operating 
a Job Corps center under this subtitle to submit an application under 
subsection (d) to carry out the requirements of this section.''.

SEC. 121. PROGRAM ACTIVITIES.

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

SEC. 122. COUNSELING AND JOB PLACEMENT.

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

SEC. 123. SUPPORT.

    Subsection (b) of section 150 (29 U.S.C. 2890) is amended to read 
as follows:
    ``(b) Transition Allowances and Support for Graduates.--The 
Secretary shall arrange for a transition allowance to be paid to 
graduates. The transition allowance shall be incentive-based to reflect 
a graduate's completion of academic, career and technical education or 
training, and attainment of a recognized postsecondary credential, 
including an industry-recognized credential.''.

SEC. 124. OPERATIONS.

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

SEC. 125. COMMUNITY PARTICIPATION.

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

``SEC. 153. COMMUNITY PARTICIPATION.

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

SEC. 126. WORKFORCE COUNCILS.

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

``SEC. 154. WORKFORCE COUNCILS.

    ``(a) In General.--Each Job Corps center shall have a workforce 
council appointed by the Governor of the State in which the Job Corps 
center is located.
    ``(b) Workforce Council Composition.--
            ``(1) In general.--A workforce council shall be comprised 
        of--
                    ``(A) business members of the State Board described 
                in section 111(b)(1)(B)(i);
                    ``(B) business members of the local Boards 
                described in section 117(b)(2)(A) located in the State;
                    ``(C) a representative of the State Board described 
                in section 111(f); and
                    ``(D) such other representatives and State agency 
                officials as the Governor may designate.
            ``(2) Majority.--A \2/3\rds majority of the members of the 
        workforce council shall be representatives described in 
        paragraph (1)(A).
    ``(c) Responsibilities.--The responsibilities of the workforce 
council shall be--
            ``(1) to review all the relevant labor market information, 
        including related information in the State workforce plan in 
        section 112, to--
                    ``(A) determine the in-demand industries in the 
                State in which enrollees intend to seek employment 
                after graduation;
                    ``(B) determine the skills and education that are 
                necessary to obtain the employment opportunities 
                described in subparagraph (A); and
                    ``(C) determine the type or types of career and 
                technical education and training that will be 
                implemented at the center to enable the enrollees to 
                obtain the employment opportunities; and
            ``(2) to meet at least once a year to reevaluate the labor 
        market information, and other relevant information, to 
        determine any necessary changes in the career and technical 
        education and training provided at the center.
    ``(d) New Centers.--The workforce council for a Job Corps center 
that is not yet operating shall carry out the responsibilities 
described in subsection (c) at least 3 months prior to the date on 
which the center accepts the first enrollee at the center.''.

SEC. 127. TECHNICAL ASSISTANCE.

    Section 156 is amended to read as follows:

``SEC. 156. TECHNICAL ASSISTANCE TO CENTERS.

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

SEC. 128. SPECIAL PROVISIONS.

    Section 158 (29 U.S.C. 2989) is amended--
            (1) by amending paragraph (1) in subsection (c), by 
        striking ``title II of the Federal Property and Administrative 
        Services Act of 1949 (40 U.S.C. 481 et seq.)'' and inserting 
        ``chapter of 5 title 40, United States Code,'';
            (2) by striking subsection (e); and
            (3) by redesignating subsections (f) and (g) as subsections 
        (e) and (f), respectively.

SEC. 129. PERFORMANCE ACCOUNTABILITY MANAGEMENT.

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

SEC. 130. CLOSURE OF LOW-PERFORMING JOB CORPS CENTERS.

    Section 161 (29 U.S.C. 2901) is amended to read as follows:

``SEC. 161. CLOSURE OF LOW-PERFORMING JOB CORPS CENTERS.

    ``(a) Audit.--Not later than 3 months after the date of enactment 
of the Workforce Investment Improvement Act of 2012, the Secretary 
shall conduct an audit on the past 10 years of performance of Job Corps 
centers, including information indicating--
            ``(1) a comparison of each Job Corps center, by rank, on 
        the performance indicators described in subsections (c) and (d) 
        of section 159 (as such sections were in effect on the day 
        before the date of enactment of the Workforce Investment 
        Improvement Act of 2012);
            ``(2) a comparison of each Job Corps center, by rank, on 
        the average performance of all performance indicators described 
        in subsections (c) and (d) of section 159 (as such sections 
        were in effect on the day before the date of enactment of the 
        Workforce Investment Improvement Act of 2012); and
            ``(3) a listing of the centers, by rank, that have 
        experienced the highest number of serious incidents of crimes 
        of violence, as defined in section 16 of title 18, United 
        States Code.
    ``(b) Recommendations.--Not later than 6 months after the date of 
enactment of the Workforce Investment Improvement Act of 2012, the 
Secretary shall submit a report to the Education and the Workforce 
Committee of the House of Representatives and the Health, Education, 
Labor, and Pensions Committee of the Senate, which shall contain a 
detailed statement of the findings and conclusions from the audit 
described in subsection (a), including information indicating the 
centers that are ranked in the bottom quintile on the performance 
indicators described in paragraphs (1) and (2) of subsection (a).
    ``(c) Closure.--Not later than 12 months after the date of 
enactment of the Workforce Investment Improvement Act of 2012, the 
Secretary shall close the Job Corps centers identified under subsection 
(b) in accordance with section 158(g).
    ``(d) Transition.--The Secretary shall ensure that program 
participants enrolled in low-performing Job Corps centers slated for 
closure under this subsection receive priority placement to enroll in 
another center in the State or neighboring State.''.

SEC. 131. REFORMS FOR OPENING NEW JOB CORPS CENTERS.

    Subtitle C of title I (29 U.S.C. 2881 et seq.) is amended by adding 
at the end the following:

``SEC. 162. REFORMS FOR OPENING NEW JOB CORPS CENTERS.

    ``(a) In General.--The Secretary shall develop and implement 
specific policies and procedures governing the selection of the State 
and local area for construction of Job Corps centers. Such policies and 
procedures shall be the same across all regions, based on a needs 
assessment of the assignment plan described under section 145(c), and 
free from political favoritism, biases, or considerations.
    ``(b) Restrictions.--
            ``(1) Notification of congress.--The Secretary shall notify 
        the Education and the Workforce Committee of the House of 
        Representatives and the Health, Education, Labor, and Pensions 
        Committee of the Senate before releasing a Request for Proposal 
        for the designation and construction of a Job Corps center.
            ``(2) Number of centers.--Except as provided under 
        paragraph (3), the Secretary shall enter into agreements with 
        not more than 20 Job Corps centers per region, as those regions 
        were in effect on the date of enactment of the Workforce 
        Investment Improvement Act of 2012.
            ``(3) Exception.--The Secretary may enter into agreements 
        with more than 20 Job Corps centers upon approval, in writing, 
        of the Chairman and Ranking Member of the Education and the 
        Workforce Committee of the House of Representatives and the 
        Health, Education, Labor, and Pensions Committee of the 
        Senate.''.

                     Subtitle D--National Programs

SEC. 132. TECHNICAL ASSISTANCE.

    Section 170 (29 U.S.C. 2915) is amended--
            (1) by striking subsection (b);
            (2) by striking:
    ``(a) General Technical Assistance.--'';
            (3) by redesignating paragraphs (1), (2), and (3) as 
        subsections (a), (b), and (c) respectively, and moving such 
        subsections 2 ems to the left;
            (4) in subsection (a) (as so redesignated)--
                    (A) by inserting ``the training of staff providing 
                rapid response services, the training of other staff of 
                recipients of funds under this title, assistance 
                regarding accounting and program operation practices 
                (when such assistance would not be duplicative to 
                assistance provided by the State), technical assistance 
                to States that do not meet State performance measures 
                described in section 136,'' after ``localities,''; and
                    (B) by striking ``from carrying out activities'' 
                and all that follows up to the period and inserting 
                ``to implement the amendments made by the Workforce 
                Investment Improvement Act of 2012'';
            (5) in subsection (b) (as so redesignated)--
                    (A) by striking ``paragraph (1)'' and inserting 
                ``subsection (a)''; and
                    (B) by striking ``, or recipient of financial 
                assistance under any of sections 166 through 169,'';
            (6) in subsection (c) (as so redesignated), by striking 
        ``paragraph (1)'' and inserting ``subsection (a)''; and
            (7) by inserting, after subsection (c) (as so 
        redesignated), the following:
    ``(d) Best Practices Coordination.--The Secretary shall--
            ``(1) establish a system through which States may share 
        information regarding best practices with regard to the 
        operation of workforce investment activities under this Act; 
        and
            ``(2) evaluate and disseminate information regarding best 
        practices and identify knowledge gaps.''.

SEC. 133. EVALUATIONS.

    Section 172 (29 U.S.C. 2917) is amended--
            (1) in subsection (a), by striking ``the Secretary shall 
        provide for the continuing evaluation of the programs and 
        activities, including those programs and activities carried out 
        under section 171'' and inserting ``the Secretary, through 
        grants, contracts, or cooperative agreements, shall conduct, at 
        least once every 5 years, an independent evaluation of the 
        programs and activities funded under this Act'';
            (2) in subsection (a)(4) is amended to read as follows:
            ``(4) the impact of receiving services and not receiving 
        services under such programs and activities on the community, 
        businesses, and individuals;'';
            (3) in subsection (c) is amended to read as follows:
    ``(c) Techniques.--Evaluations conducted under this section shall 
utilize appropriate and rigorous methodology and research designs, 
including the use of control groups chosen by scientific random 
assignment methodologies, quasi-experimental methods, impact analysis 
and the use of administrative data. The Secretary shall conduct an 
impact analysis, as described in subsection (a)(4), of the formula 
grant program under subtitle B not later than 2014, and thereafter 
shall conduct such an analysis not less than once every four years.'';
            (4) in subsection (e) is amended by striking ``the 
        Committee on Labor and Human Resources of the Senate'' and 
        inserting ``the Committee on Health, Education, Labor, and 
        Pensions of the Senate''; and
            (5) by adding at the end, the following:
    ``(g) Public Availability.--The results of the evaluations 
conducted under this section shall be made publicly available, 
including by posting such results on the Department's website.''.

SEC. 134. MILITARY TRANSITIONAL ASSISTANCE.

    Subtitle D of title I (29 U.S.C. 2911 et seq.) is amended by adding 
at the end the following:

``SEC. 175. MILITARY TRANSITIONAL ASSISTANCE.

    ``(a) In General.--The Secretary, in consultation with the 
Secretaries of Defense, Homeland Security, and Veterans Affairs, shall 
establish and carry out a program to furnish counseling, assistance in 
identifying employment and training opportunities, help in obtaining 
such employment and training, and other related information and 
services to members of the armed forces under the jurisdiction of the 
Secretary concerned who are being separated from active duty and the 
spouses of such members. Such services shall be provided to a member 
within the time periods provided under paragraph (3) of section 1142(a) 
of title 10, United States Code, except that the Secretary concerned 
shall not provide pre-separation counseling to a member described in 
paragraph (4)(A) of such section.
    ``(b) Elements of Program.--In establishing and carrying out a 
program under this section, the Secretary shall--
            ``(1) provide information concerning employment and 
        training assistance, including--
                    ``(A) labor market information;
                    ``(B) civilian work place requirements and 
                employment opportunities;
                    ``(C) instruction in resume preparation; and
                    ``(D) job analysis techniques, job search 
                techniques, and job interview techniques.
            ``(2) in providing information under paragraph (1), use 
        experience obtained from implementation of the pilot program 
        established under section 408 of Public Law 101-237;
            ``(3) provide information concerning Federal, State, and 
        local programs, and programs of military and veterans' service 
        organizations, that may be of assistance to such members after 
        separation from the armed forces, including, as appropriate, 
        the information and services to be provided under section 1142 
        of title 10, United States Code;
            ``(4) inform such members that the Department of Defense 
        and the Department of Homeland Security are required under 
        section 1143(a) of title 10, United States Code, to provide 
        proper certification or verification of job skills and 
        experience acquired while on active duty that may have 
        application to employment in the civilian sector for use in 
        seeking civilian employment and in obtaining job search skills;
            ``(5) provide information and other assistance to such 
        members in their efforts to obtain loans and grants from the 
        Small Business Administration and other Federal, State, and 
        local agencies;
            ``(6) provide information about the geographic areas in 
        which such members will relocate after separation from the 
        armed forces, including, to the degree possible, information 
        about employment opportunities, the labor market, and the cost 
        of living in those areas (including, to the extent practicable, 
        the cost and availability of housing, child care, education, 
        and medical and dental care);
            ``(7) work with military and veterans service organizations 
        and other appropriate organizations in promoting and 
        publicizing job fairs for such members; and
            ``(8) provide information regarding the public and 
        community service jobs program carried out under section 1143a 
        of title 10, United States Code.
    ``(c) Participation.--(1) Except as provided in paragraph (2), the 
Secretary shall enter into an agreement with the Secretary of Defense 
and the Secretary of Homeland Security, to require the participation in 
the program carried out under this section of the members eligible for 
assistance under the program.
    ``(2) The Secretary may, under regulations the Secretary of Defense 
and the Secretary of Homeland Security prescribe, waive the 
participation requirement of paragraph (1) with respect to--
            ``(A) such groups or classifications of members as the 
        Secretary determines, after consultation with the Secretary of 
        Defense, Secretary of Homeland Security and the Secretary of 
        Veterans Affairs, for whom participation is not and would not 
        be of assistance to such members based on the Secretaries' 
        articulable justification that there is extraordinarily high 
        reason to believe the exempted members are unlikely to face 
        major readjustment, health care, employment, or other 
        challenges associated with transition to civilian life; and
            ``(B) individual members possessing specialized skills who, 
        due to unavoidable circumstances, are needed to support a 
        unit's imminent deployment.
    ``(d) Use of Personnel and Organizations.--In carrying out the 
program established under this section, the Secretaries--
            ``(1) shall use the veterans employment specialist 
        appointed under section 134(f); and
            ``(2) may--
                    ``(A) use other employment service personnel funded 
                by the Department of Labor to the extent that the 
                Secretary of Labor determines that such use will not 
                significantly interfere with the provision of services 
                or other benefits to eligible veterans and other 
                eligible recipients of such services or benefits;
                    ``(B) use military and civilian personnel of the 
                Department of Defense and the Department of Homeland 
                Security;
                    ``(C) use personnel of the Veterans Benefits 
                Administration of the Department of Veterans Affairs 
                and other appropriate personnel of that Department;
                    ``(D) use representatives of military and veterans 
                service organizations;
                    ``(E) enter into contracts with public entities;
                    ``(F) enter into contracts with private entities, 
                particularly with qualified private entities that have 
                experience with instructing members of the armed forces 
                eligible for assistance under the program carried out 
                under this section on--
                            ``(i) private sector culture, resume 
                        writing, career networking, and training on job 
                        search technologies;
                            ``(ii) academic readiness and educational 
                        opportunities; or
                            ``(iii) other relevant topics; and
                    ``(G) take other necessary action to develop and 
                furnish the information and services to be provided 
                under this section.
    ``(e) Participation in Apprenticeship Programs.--As part of the 
program carried out under this section, the Secretary, in consultation 
with the Secretary of Defense and the Secretary of Homeland Security, 
may permit a member of the armed forces eligible for assistance under 
the program to participate in an apprenticeship program registered 
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 a pre-apprenticeship program that provides credit toward a program 
registered under such Act, that provides members of the armed forces 
with the education, training, and services necessary to transition to 
meaningful employment that leads to economic self-sufficiency.''.

                       Subtitle E--Administration

SEC. 135. REQUIREMENTS AND RESTRICTIONS.

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

SEC. 136. PROMPT ALLOCATION OF FUNDS.

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

SEC. 137. FISCAL CONTROLS; SANCTIONS.

    Section 184(a)(2) (29 U.S.C. 2934(a)(2)) is amended by striking 
subparagraph (B).

SEC. 138. REPORTS TO CONGRESS.

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

SEC. 139. ADMINISTRATIVE PROVISIONS.

    Section 189 (29 U.S.C. 2939) is amended--
            (1) in subsection (g)--
                    (A) by amending paragraph (1) to read as follows:
            ``(1) In general.--Appropriations for any fiscal year for 
        programs and activities carried out under this title shall be 
        available for obligation only on the basis of a program year. 
        The program year shall begin on July 1 in the fiscal year for 
        which the appropriation is made.''; and
                    (B) in paragraph (2)--
                            (i) by striking ``each State'' and 
                        inserting ``each recipient''; and
                            (ii) by striking ``171 or'';
            (2) in subsection (i)(4)--
                    (A) in subparagraph (A)--
                            (i) by striking ``requirements of 
                        subparagraph (B)'' and all that follows through 
                        ``any of the statutory or regulatory 
                        requirements of subtitle B'' and inserting 
                        ``requirements of subparagraph (B) or (D), any 
                        of the statutory or regulatory requirements of 
                        subtitle B'';
                            (ii) by striking clause (ii); and
                            (iii) in clause (i), by striking ``; and'' 
                        and inserting a period at the end; and
                    (B) by adding at the end the following:
                    ``(D) Expedited process for extending approved 
                waivers to additional states.--In lieu of the 
                requirements of subparagraphs (B) and (C), the 
                Secretary may establish an expedited procedure for the 
                purpose of extending to additional States the waiver of 
                statutory or regulatory requirements that have been 
                approved for a State pursuant to a request under 
                subparagraph (B). Such procedure shall ensure that the 
                extension of such waivers to additional States are 
                accompanied by appropriate conditions relating the 
                implementation of such waivers.''.

SEC. 140. STATE LEGISLATIVE AUTHORITY.

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

SEC. 141. CONTINUATION OF STATE ACTIVITIES AND POLICIES.

    Section 194 (29 U.S.C. 2944) is amended--
            (1) in subsection (a)(1)(A), by striking ``127 or'';
            (2) in subsection (a)(1)(B), by striking ``127 or''; and
            (3) in subsection (a)(2), by striking ``127 or''.

SEC. 142. GENERAL PROGRAM REQUIREMENTS.

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

SEC. 143. DEPARTMENT STAFF.

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

``SEC. 196. DEPARTMENT STAFF.

    ``The Secretary shall--
            ``(1) not later than 60 days after the date of the 
        enactment of the Workforce Investment Improvement Act of 2012--
                    ``(A) identify the number of Department of Labor 
                employees who work on or administer programs under this 
                Act, as such programs were in effect on the day before 
                such date of enactment; and
                    ``(B) publish such information on the Department's 
                website;
            ``(2) not later than 60 days after such date of enactment, 
        identify the number of full-time equivalent employees who work 
        on or administer programs authorized under this Act, as such 
        programs were in effect on the day before such date of 
        enactment, that have been eliminated or consolidated on or 
        after such date; and
            ``(3) not later than 1 year after such date of enactment--
                    ``(A) reduce the workforce of the Department of 
                Labor by the number of full-time equivalent employees 
                identified under paragraph (2); and
                    ``(B) submit to Congress a report on--
                            ``(i) the number of employees associated 
                        with each program authorized under this Act and 
                        administered by the Department;
                            ``(ii) the number of full-time equivalent 
                        employees identified under paragraph (2); and
                            ``(iii) how the Secretary reduced the 
                        number of employees at the Department under 
                        subparagraph (A).''.

                     Subtitle F--State Unified Plan

SEC. 144. STATE UNIFIED PLAN.

    Section 501 (29 U.S.C. 9271) is amended--
            (1) by amending subsection (b) to read as follows:
    ``(b) State Unified Plan.--
            ``(1) In general.--A State may develop and submit to the 
        appropriate Secretaries a State unified plan for 2 or more of 
        the activities or programs set forth in paragraph (2). The 
        State unified plan shall cover one or more of the activities 
        set forth in subparagraphs (A) and (B) of paragraph (2) and may 
        cover one or more of the activities set forth in subparagraphs 
        (C) through (N) of paragraph (2). For purposes of this 
        paragraph, the activities and programs described in 
        subparagraphs (A) and (B) of paragraph (2) shall not be 
        considered to be 2 or more activities or programs for purposes 
        of the unified plan. Such activities or programs shall be 
        considered to be 1 activity or program.
            ``(2) Activities and programs.--The activities and programs 
        referred to in paragraph (1) are as follows:
                    ``(A) Programs and activities authorized under 
                title I.
                    ``(B) Programs and activities authorized under 
                title II.
                    ``(C) Programs authorized under the Rehabilitation 
                Act of 1973.
                    ``(D) Secondary career education programs 
                authorized under the Carl D. Perkins Career and Applied 
                Technology Education Act.
                    ``(E) Postsecondary career education programs 
                authorized under the Carl D. Perkins Career and Applied 
                Technology Education Act.
                    ``(F) Programs and activities authorized under 
                title II of the Trade Act of 1974.
                    ``(G) National Apprenticeship Act of 1937.
                    ``(H) Programs authorized under the Community 
                Services Block Grant Act.
                    ``(I) Programs authorized under the part A of title 
                IV of the Social Security Act.
                    ``(J) Programs authorized under State unemployment 
                compensation laws (in accordance with applicable 
                Federal law).
                    ``(K) Work programs authorized under section 6(o) 
                of the Food Stamp Act of 1977.
                    ``(L) Programs and activities authorized title I of 
                the Housing and Community Development Act of 1974.
                    ``(M) Programs and activities authorized under the 
                Public Workers and Economic Development Act of 1965.
                    ``(N) Activities as defined under chapter 41 of 
                title 38, United States Code.''; and
            (2) by adding at the end, the following:
    ``(e) Authority To Consolidate Funds Into Workforce Investment 
Fund.--
            ``(1) In general.--A State may consolidate funds allotted 
        to a State under an approved application under subsection (d) 
        into the Workforce Investment Fund under section 132(b) in 
        order to reduce inefficiencies in the administration of 
        federally-funded State and local employment and training 
        programs.
            ``(2) Treatment of funds.--
                    ``(A) In general.--Notwithstanding subsection (c), 
                a State with an approved application under subsection 
                (d) may treat any and all funds consolidated into the 
                Workforce Investment Fund as if they were original 
                funds allotted to a State under section 132(b).
                    ``(B) Applicability.--Such a State shall continue 
                to make reservations, except the reservation under 
                section 133(a)(1), and allotments in accordance with 
                section 133(b)(2).
            ``(3) Special rule.--A State may not consolidate funds 
        allocated to the State under the Carl D. Perkins Career and 
        Technical Education Act of 2006 and funds allocated to the 
        State under the Rehabilitation Act of 1973.''.

        TITLE II--ADULT EDUCATION AND FAMILY LITERACY EDUCATION

SEC. 201. AMENDMENT.

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

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

``SEC. 201. SHORT TITLE.

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

``SEC. 202. PURPOSE.

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

``SEC. 203. DEFINITIONS.

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

``SEC. 204. HOME SCHOOLS.

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

``SEC. 205. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this title, 
$606,294,933 for fiscal years 2013 and for each of the 5 succeeding 
fiscal years.

                    ``Subtitle A--Federal Provisions

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

    ``(a) Reservation of Funds.--From the sums appropriated under 
section 205 for a fiscal year, the Secretary shall reserve 2.0 percent 
to carry out section 242.
    ``(b) Grants to Eligible Agencies.--
            ``(1) In general.--From the sums appropriated under section 
        205 and not reserved under subsection (a) for a fiscal year, 
        the Secretary shall award a grant to each eligible agency 
        having a State plan approved under section 224 in an amount 
        equal to the sum of the initial allotment under subsection 
        (c)(1) and the additional allotment under subsection (c)(2) for 
        the eligible agency for the fiscal year, subject to subsections 
        (f) and (g).
            ``(2) Purpose of grants.--The Secretary may award a grant 
        under paragraph (1) only if the eligible agency involved agrees 
        to expend the grant in accordance with the provisions of this 
        title.
    ``(c) Allotments.--
            ``(1) Initial allotments.--From the sums appropriated under 
        section 205 and not reserved under subsection (a) for a fiscal 
        year, the Secretary shall allot to each eligible agency having 
        a State plan approved under section 224--
                    ``(A) $100,000, in the case of an eligible agency 
                serving an outlying area; and
                    ``(B) $250,000, in the case of any other eligible 
                agency.
            ``(2) Additional allotments.--From the sums appropriated 
        under section 205, not reserved under subsection (a), and not 
        allotted under paragraph (1), for a fiscal year, the Secretary 
        shall allot to each eligible agency that receives an initial 
        allotment under paragraph (1) an additional amount that bears 
        the same relationship to such sums as the number of qualifying 
        adults in the State or outlying area served by the eligible 
        agency bears to the number of such adults in all States and 
        outlying areas.
    ``(d) Qualifying Adult.--For the purpose of subsection (c)(2), the 
term `qualifying adult' means an adult who--
            ``(1) is at least 16 years of age;
            ``(2) is beyond the age of compulsory school attendance 
        under the law of the State or outlying area;
            ``(3) does not have a secondary school diploma or its 
        recognized equivalent; and
            ``(4) is not enrolled in secondary school.
    ``(e) Special Rule.--
            ``(1) In general.--From amounts made available under 
        subsection (c) for the Republic of Palau, the Secretary shall 
        award grants to Guam, American Samoa, the Commonwealth of the 
        Northern Mariana Islands, or the Republic of Palau to carry out 
        activities described in this title in accordance with the 
        provisions of this title as determined by the Secretary.
            ``(2) Termination of eligibility.--Notwithstanding any 
        other provision of law, the Republic of Palau shall be eligible 
        to receive a grant under this title until an agreement for the 
        extension of United States education assistance under the 
        Compact of Free Association for the Republic of Palau becomes 
        effective.
    ``(f) Hold-Harmless Provisions.--
            ``(1) In general.--Notwithstanding subsection (c), and 
        subject to paragraphs (2) and (3), for fiscal year 2013 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.

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

                     ``Subtitle B--State Provisions

``SEC. 221. STATE ADMINISTRATION.

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

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

    ``(a) State Distribution of Funds.--Each eligible agency receiving 
a grant under this title for a fiscal year--
            ``(1) shall use an amount not less than 82.5 percent of the 
        grant funds to award grants and contracts under section 231 and 
        to carry out section 225, of which not more than 10 percent of 
        such amount shall be available to carry out section 225;
            ``(2) shall use not more than 12.5 percent of the grant 
        funds to carry out State leadership activities under section 
        223; and
            ``(3) shall use not more than 5 percent of the grant funds, 
        or $65,000, whichever is greater, for the administrative 
        expenses of the eligible agency.
    ``(b) Matching Requirement.--
            ``(1) In general.--In order to receive a grant from the 
        Secretary under section 211(b), each eligible agency shall 
        provide, for the costs to be incurred by the eligible agency in 
        carrying out the adult education and family literacy education 
        programs for which the grant is awarded, a non-Federal 
        contribution in an amount that is not less than--
                    ``(A) in the case of an eligible agency serving an 
                outlying area, 12 percent of the total amount of funds 
                expended for adult education and family literacy 
                education programs in the outlying area, except that 
                the Secretary may decrease the amount of funds required 
                under this subparagraph for an eligible agency; and
                    ``(B) in the case of an eligible agency serving a 
                State, 25 percent of the total amount of funds expended 
                for adult education and family literacy education 
                programs in the State.
            ``(2) Non-federal contribution.--An eligible agency's non-
        Federal contribution required under paragraph (1) may be 
        provided in cash or in kind, fairly evaluated, and shall 
        include only non-Federal funds that are used for adult 
        education and family literacy education programs in a manner 
        that is consistent with the purpose of this title.

``SEC. 223. STATE LEADERSHIP ACTIVITIES.

    ``(a) In General.--Each eligible agency may use funds made 
available under section 222(a)(2) for any of the following adult 
education and family literacy education programs:
            ``(1) The establishment or operation of professional 
        development programs to improve the quality of instruction 
        provided pursuant to local activities required under section 
        231(b).
            ``(2) The provision of technical assistance to eligible 
        providers of adult education and family literacy education 
        programs, including for the development and dissemination of 
        evidence based research instructional practices in reading, 
        writing, speaking, math, and English language acquisition 
        programs.
            ``(3) The provision of assistance to eligible providers in 
        developing, implementing, and reporting measurable progress in 
        achieving the objectives of this title.
            ``(4) The provision of technology assistance, including 
        staff training, to eligible providers of adult education and 
        family literacy education programs, including distance 
        education activities, to enable the eligible providers to 
        improve the quality of such activities.
            ``(5) The development and implementation of technology 
        applications or distance education, 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 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) 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.
            ``(11) Integration of literacy, instructional, and 
        occupational skill training and promotion of linkages with 
        employees.
    ``(b) Coordination.--In carrying out this section, eligible 
agencies shall coordinate where possible, and avoid duplicating 
efforts, in order to maximize the impact of the activities described in 
subsection (a).
    ``(c) State-Imposed Requirements.--Whenever a State or outlying 
area implements any rule or policy relating to the administration or 
operation of a program authorized under this title that has the effect 
of imposing a requirement that is not imposed under Federal law 
(including any rule or policy based on a State or outlying area 
interpretation of a Federal statute, regulation, or guideline), the 
State or outlying area shall identify, to eligible providers, the rule 
or policy as being imposed by the State or outlying area.

``SEC. 224. STATE PLAN.

    ``(a) 3-Year Plans.--
            ``(1) In general.--Each eligible agency desiring a grant 
        under this title for any fiscal year shall submit to, or have 
        on file with, the Secretary a 3-year State plan.
            ``(2) State unified plan.--The eligible agency may submit 
        the State plan as part of a State unified plan described in 
        section 501.
    ``(b) Plan Contents.--The eligible agency shall include in the 
State plan or any revisions to the State plan--
            ``(1) an objective assessment of the needs of individuals 
        in the State or outlying area for adult education and family 
        literacy education programs, including individuals most in need 
        or hardest to serve;
            ``(2) a description of the adult education and family 
        literacy education programs that will be carried out with funds 
        received under this title;
            ``(3) an assurance that the funds received under this title 
        will not be expended for any purpose other than for activities 
        under this title;
            ``(4) a description of how the eligible agency will fund 
        local activities in accordance with the measurable goals 
        described in section 231(d);
            ``(5) an assurance that the eligible agency will expend the 
        funds under this title only in a manner consistent with fiscal 
        requirements in section 241;
            ``(6) 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, and other State agencies that promote the 
                improvement of adult education and family literacy 
                education programs, and direct providers of such 
                programs; and
                    ``(B) may include consultation with the State 
                agency on higher education, institutions responsible 
                for professional development of adult education and 
                family literacy education programs instructors, 
                representatives of business and industry, refugee 
                assistance programs, and faith-based organizations;
            ``(7) a description of the eligible agency's strategies for 
        serving populations that include, at a minimum--
                    ``(A) low-income individuals;
                    ``(B) individuals with disabilities;
                    ``(C) the unemployed;
                    ``(D) the underemployed; and
                    ``(E) individuals with multiple barriers to 
                educational enhancement, including English learners;
            ``(8) a description of how the adult education and family 
        literacy education programs that will be carried out with any 
        funds received under this title will be integrated with other 
        adult education, career development, and employment and 
        training activities in the State or outlying area served by the 
        eligible agency;
            ``(9) a description of the steps the eligible agency will 
        take to ensure direct and equitable access, as required in 
        section 231(c)(1), including--
                    ``(A) how the State will build the capacity of 
                community-based and faith-based organizations to 
                provide adult education and family literacy education 
                programs; and
                    ``(B) how the State will increase the participation 
                of business and industry in adult education and family 
                literacy education programs;
            ``(10) an assessment of the adequacy of the system of the 
        State or outlying area to ensure teacher quality and a 
        description of how the State or outlying area will use funds 
        received under this subtitle to improve teacher quality, 
        including evidence-based professional development to improve 
        instruction; and
            ``(11) a description of how the eligible agency will 
        consult with any State agency responsible for postsecondary 
        education to develop adult education that prepares students to 
        enter postsecondary education without the need for remediation 
        upon completion of secondary school equivalency programs.
    ``(c) Plan Revisions.--When changes in conditions or other factors 
require substantial revisions to an approved State plan, the eligible 
agency shall submit the revisions of the State plan to the Secretary.
    ``(d) Consultation.--The eligible agency shall--
            ``(1) submit the State plan, and any revisions to the State 
        plan, to the Governor, the chief State school officer, or the 
        State officer responsible for administering community or 
        technical colleges, or outlying area for review and comment; 
        and
            ``(2) ensure that any comments regarding the State plan by 
        the Governor, the chief State school officer, or the State 
        officer responsible for administering community or technical 
        colleges, and any revision to the State plan, are submitted to 
        the Secretary.
    ``(e) Plan Approval.--The Secretary shall--
            ``(1) approve a State plan within 120 days after receiving 
        the plan unless the Secretary makes a written determination 
        within 30 days after receiving the plan that the plan does not 
        meet the requirements of this section or is inconsistent with 
        specific provisions of this subtitle; and
            ``(2) not finally disapprove of a State plan before 
        offering the eligible agency the opportunity, prior to the 
        expiration of the 30-day period beginning on the date on which 
        the eligible agency received the written determination 
        described in paragraph (3), to review the plan and providing 
        technical assistance in order to assist the eligible agency in 
        meeting the requirements of this subtitle.

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

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

                     ``Subtitle C--Local Provisions

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

    ``(a) Grants and Contracts.--From grant funds made available under 
section 222(a)(1), each eligible agency shall award multi-year grants 
or contracts, on a competitive basis, to eligible providers within the 
State or outlying area that meet the conditions and requirements of 
this title to enable the eligible providers to develop, implement, and 
improve adult education and family literacy education programs within 
the State.
    ``(b) Local Activities.--The eligible agency shall require eligible 
providers receiving a grant or contract under subsection (a) to 
establish or operate--
            ``(1) programs that provide adult education and literacy 
        activities;
            ``(2) programs that provide such activities concurrently 
        with postsecondary education or training or employment 
        activities; or
            ``(3) credit-bearing postsecondary coursework.
    ``(c) Direct and Equitable Access; Same Process.--Each eligible 
agency receiving funds under this title shall ensure that--
            ``(1) all eligible providers have direct and equitable 
        access to apply for grants or contracts under this section; and
            ``(2) the same grant or contract announcement process and 
        application process is used for all eligible providers in the 
        State or outlying area.
    ``(d) Measurable Goals.--The eligible agency shall require eligible 
providers receiving a grant or contract under subsection (a) to 
demonstrate--
            ``(1) the eligible provider's measurable goals for 
        participant outcomes to be achieved annually on the core 
        indicators of performance described in section 136(b)(2)(A);
            ``(2) the past effectiveness of the eligible provider in 
        improving the basic academic skills of adults and, for eligible 
        providers receiving grants in the prior year, the success of 
        the eligible provider receiving funding under this title in 
        exceeding its performance goals in the prior year;
            ``(3) the commitment of the eligible provider to serve 
        individuals in the community who are the most in need of basic 
        academic skills instruction services, including individuals 
        with disabilities and individuals who are low-income or have 
        minimal reading, writing, speaking, and math skills, or are 
        English learners;
            ``(4) the program is of sufficient intensity and quality 
        for participants to achieve substantial learning gains;
            ``(5) educational practices are evidence-based;
            ``(6) the activities of the eligible provider effectively 
        employ advances in technology, and delivery systems including 
        distance education;
            ``(7) the activities provide instruction in real-life 
        contexts, including integrated education and training when 
        appropriate, to ensure that an individual has the skills needed 
        to compete in the workplace and exercise the rights and 
        responsibilities of citizenship;
            ``(8) the activities are staffed by well-trained 
        instructors, counselors, and administrators who meet minimum 
        qualifications established by the State;
            ``(9) the activities are coordinated with other available 
        resources in the community, such as through strong links with 
        elementary schools and secondary schools, postsecondary 
        educational institutions, local workforce investment boards, 
        one-stop centers, job training programs, community-based and 
        faith-based organizations, and social service agencies;
            ``(10) the activities offer flexible schedules and support 
        services (such as child care and transportation) that are 
        necessary to enable individuals, including individuals with 
        disabilities or other special needs, to attend and complete 
        programs;
            ``(11) the activities include a high-quality information 
        management system that has the capacity to report measurable 
        participant outcomes (consistent with section 136) and to 
        monitor program performance;
            ``(12) the local communities have a demonstrated need for 
        additional English language acquisition programs, and 
        integrated education and training programs;
            ``(13) the capacity of the eligible provider to produce 
        valid information on performance results, including enrollments 
        and measurable participant outcomes;
            ``(14) adult education and family literacy education 
        programs offer rigorous reading, writing, speaking, and math 
        content that are evidence based; and
            ``(15) applications of technology, and services to be 
        provided by the eligible providers, are of sufficient intensity 
        and duration to increase the amount and quality of learning and 
        lead to measurable learning gains within specified time 
        periods.
    ``(e) Special Rule.--Eligible providers may use grant funds under 
this title to serve children participating in family literacy programs 
assisted under this part, provided that other sources of funds 
available to provide similar services for such children are used first.

``SEC. 232. LOCAL APPLICATION.

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

``SEC. 233. LOCAL ADMINISTRATIVE COST LIMITS.

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

                    ``Subtitle D--General Provisions

``SEC. 241. ADMINISTRATIVE PROVISIONS.

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

``SEC. 242. NATIONAL ACTIVITIES.

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

             TITLE III--AMENDMENTS TO THE WAGNER-PEYSER ACT

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

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

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

    ``(a) System Content.--
            ``(1) In general.--The Secretary of Labor, in accordance 
        with the provisions of this section, shall oversee the 
        development, maintenance, and continuous improvement of a 
        nationwide workforce and labor market information system that 
        includes--
                    ``(A) statistical data from cooperative statistical 
                survey and projection programs and data from 
                administrative reporting systems that, taken together, 
                enumerate, estimate, and project employment 
                opportunities and conditions at national, State, and 
                local levels in a timely manner, including statistics 
                on--
                            ``(i) employment and unemployment status of 
                        national, State, and local populations, 
                        including self-employed, part-time, and 
                        seasonal workers;
                            ``(ii) industrial distribution of 
                        occupations, as well as current and projected 
                        employment opportunities, wages, benefits 
                        (where data is available), and skill trends by 
                        occupation and industry, with particular 
                        attention paid to State and local conditions;
                            ``(iii) the incidence of, industrial and 
                        geographical location of, and number of workers 
                        displaced by, permanent layoffs and plant 
                        closings; and
                            ``(iv) employment and earnings information 
                        maintained in a longitudinal manner to be used 
                        for research and program evaluation;
                    ``(B) information on State and local employment 
                opportunities, and other appropriate statistical data 
                related to labor market dynamics, which--
                            ``(i) shall be current and comprehensive;
                            ``(ii) shall meet the needs identified 
                        through the consultations described in 
                        subparagraphs (A) and (B) of subsection (e)(2); 
                        and
                            ``(iii) shall meet the needs for the 
                        information identified in section 121;
                    ``(C) technical standards (which the Secretary 
                shall publish annually) for data and information 
                described in subparagraphs (A) and (B) that, at a 
                minimum, meet the criteria of chapter 35 of title 44, 
                United States Code;
                    ``(D) procedures to ensure compatibility and 
                additivity of the data and information described in 
                subparagraphs (A) and (B) from national, State, and 
                local levels;
                    ``(E) procedures to support standardization and 
                aggregation of data from administrative reporting 
                systems described in subparagraph (A) of employment-
                related programs;
                    ``(F) analysis of data and information described in 
                subparagraphs (A) and (B) for uses such as--
                            ``(i) national, State, and local 
                        policymaking;
                            ``(ii) implementation of Federal policies 
                        (including allocation formulas);
                            ``(iii) program planning and evaluation; 
                        and
                            ``(iv) researching labor market dynamics;
                    ``(G) wide dissemination of such data, information, 
                and analysis in a user-friendly manner and voluntary 
                technical standards for dissemination mechanisms; and
                    ``(H) programs of--
                            ``(i) training for effective data 
                        dissemination;
                            ``(ii) research and demonstration; and
                            ``(iii) programs and technical assistance.
            ``(2) Information to be confidential.--
                    ``(A) In general.--No officer or employee of the 
                Federal Government or agent of the Federal Government 
                may--
                            ``(i) use any submission that is furnished 
                        for exclusively statistical purposes under the 
                        provisions of this section for any purpose 
                        other than the statistical purposes for which 
                        the submission is furnished;
                            ``(ii) disclose to the public any 
                        publication or media transmittal of the data 
                        contained in the submission described in clause 
                        (i) that permits information concerning an 
                        individual subject to be reasonably inferred by 
                        either direct or indirect means; or
                            ``(iii) permit anyone other than a sworn 
                        officer, employee, or agent of any Federal 
                        department or agency, or a contractor 
                        (including an employee of a contractor) of such 
                        department or agency, to examine an individual 
                        submission described in clause (i),
                without the consent of the individual, agency, or other 
                person who is the subject of the submission or provides 
                that submission.
                    ``(B) Immunity from legal process.--Any submission 
                (including any data derived from the submission) that 
                is collected and retained by a Federal department or 
                agency, or an officer, employee, agent, or contractor 
                of such a department or agency, for exclusively 
                statistical purposes under this section shall be immune 
                from the legal process and shall not, without the 
                consent of the individual, agency, or other person who 
                is the subject of the submission or provides that 
                submission, be admitted as evidence or used for any 
                purpose in any action, suit, or other judicial or 
                administrative proceeding.
                    ``(C) Rule of construction.--Nothing in this 
                section shall be construed to provide immunity from the 
                legal process for such submission (including any data 
                derived from the submission) if the submission is in 
                the possession of any person, agency, or entity other 
                than the Federal Government or an officer, employee, 
                agent, or contractor of the Federal Government, or if 
                the submission is independently collected, retained, or 
                produced for purposes other than the purposes of this 
                Act.
    ``(b) System Responsibilities.--
            ``(1) In general.--The workforce and labor market 
        information system described in subsection (a) shall be 
        planned, administered, overseen, and evaluated through a 
        cooperative governance structure involving the Federal 
        Government and States.
            ``(2) Duties.--The Secretary, with respect to data 
        collection, analysis, and dissemination of workforce and labor 
        market information for the system, shall carry out the 
        following duties:
                    ``(A) Assign responsibilities within the Department 
                of Labor for elements of the workforce and labor market 
                information system described in subsection (a) to 
                ensure that all statistical and administrative data 
                collected is consistent with appropriate Bureau of 
                Labor Statistics standards and definitions.
                    ``(B) Actively seek the cooperation of other 
                Federal agencies to establish and maintain mechanisms 
                for ensuring complementarity and nonduplication in the 
                development and operation of statistical and 
                administrative data collection activities.
                    ``(C) Eliminate gaps and duplication in statistical 
                undertakings, with the systemization of wage surveys as 
                an early priority.
                    ``(D) In collaboration with the Bureau of Labor 
                Statistics and States, develop and maintain the 
                elements of the workforce and labor market information 
                system described in subsection (a), including the 
                development of consistent procedures and definitions 
                for use by the States in collecting the data and 
                information described in subparagraphs (A) and (B) of 
                subsection (a)(1).
                    ``(E) Establish procedures for the system to ensure 
                that--
                            ``(i) such data and information are timely;
                            ``(ii) paperwork and reporting for the 
                        system are reduced to a minimum; and
                            ``(iii) States and localities are fully 
                        involved in the development and continuous 
                        improvement of the system at all levels.
    ``(c) National Electronic Tools To Provide Services.--The Secretary 
is authorized to assist in the development of national electronic tools 
that may be used to facilitate the delivery of work ready services 
described in section 134(c)(2) and to provide workforce information to 
individuals through the one-stop delivery systems described in section 
121 and through other appropriate delivery systems.
    ``(d) Coordination With the States.--
            ``(1) In general.--The Secretary, working through the 
        Bureau of Labor Statistics and the Employment and Training 
        Administration, shall regularly consult with representatives of 
        State agencies carrying out workforce information activities 
        regarding strategies for improving the workforce and labor 
        market information system.
            ``(2) Formal consultations.--At least twice each year, the 
        Secretary, working through the Bureau of Labor Statistics, 
        shall conduct formal consultations regarding programs carried 
        out by the Bureau of Labor Statistics with representatives of 
        each of the Federal regions of the Bureau of Labor Statistics, 
        elected (pursuant to a process established by the Secretary) 
        from the State directors affiliated with State agencies that 
        perform the duties described in subsection (e)(2).
    ``(e) State Responsibilities.--
            ``(1) In general.--In order to receive Federal financial 
        assistance under this section, the Governor of a State shall--
                    ``(A) be responsible for the management of the 
                portions of the workforce and labor market information 
                system described in subsection (a) that comprise a 
                statewide workforce and labor market information system 
                and for the State's participation in the development of 
                the annual plan;
                    ``(B) establish a process for the oversight of such 
                system;
                    ``(C) consult with State and local employers, 
                participants, and local workforce investment boards 
                about the labor market relevance of the data to be 
                collected and disseminated through the statewide 
                workforce and labor market information system;
                    ``(D) consult with State educational agencies and 
                local educational agencies concerning the provision of 
                employment statistics in order to meet the needs of 
                secondary school and postsecondary school students who 
                seek such information;
                    ``(E) collect and disseminate for the system, on 
                behalf of the State and localities in the State, the 
                information and data described in subparagraphs (A) and 
                (B) of subsection (a)(1);
                    ``(F) maintain and continuously improve the 
                statewide workforce and labor market information system 
                in accordance with this section;
                    ``(G) perform contract and grant responsibilities 
                for data collection, analysis, and dissemination for 
                such system;
                    ``(H) conduct such other data collection, analysis, 
                and dissemination activities as will ensure an 
                effective statewide workforce and labor market 
                information system;
                    ``(I) actively seek the participation of other 
                State and local agencies in data collection, analysis, 
                and dissemination activities in order to ensure 
                complementarity, compatibility, and usefulness of data;
                    ``(J) participate in the development of the annual 
                plan described in subsection (c); and
                    ``(K) utilize the quarterly records described in 
                section 136(f)(2) to assist the State and other States 
                in measuring State progress on State performance 
                measures.
            ``(2) Rule of construction.--Nothing in this section shall 
        be construed as limiting the ability of a Governor to conduct 
        additional data collection, analysis, and dissemination 
        activities with State funds or with Federal funds from sources 
        other than this section.
    ``(f) Nonduplication Requirement.--None of the functions and 
activities carried out pursuant to this section shall duplicate the 
functions and activities carried out under the Carl D. Perkins Career 
and Technical Education Act of 2006 (20 U.S.C. 2301 et seq.).
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $63,473,000 for fiscal year 2013 
and each of the 5 succeeding fiscal years.
    ``(h) Definition.--In this section, the term `local area' means the 
smallest geographical area for which data can be produced with 
statistical reliability.''.

              TITLE IV--REPEALS AND CONFORMING AMENDMENTS

SEC. 401. REPEALS.

    The following provisions are repealed:
            (1) Chapter 4 of subtitle B of title I, and sections 123, 
        155, 166, 167, 168, 169, 171, 173, 173A, 174, 192, 502, 503, 
        and 506 of the Workforce Investment Act of 1998 (as such 
        provisions were in effect on the day before the date of 
        enactment of the Workforce Investment Improvement Act of 2012).
            (2) Title V of the Older Americans Act of 1965.
            (3) Sections 1 through 14 of the Wagner-Peyser Act.
            (4) Subsection (c) of section 414 of the American 
        Competitiveness and Workforce Improvement Act (29 U.S.C. 
        2916a).
            (5) Youth Conservation Corps Act of 1970 (16 U.S.C. 1701 et 
        seq.).
            (6) Section 821 of the Higher Education Amendments of 1998 
        (20 U.S.C. 1151) (Grants to States for workplace and community 
        transition training for incarcerated individuals).
            (7) Section 412 of the Immigration and Nationality Act (8 
        U.S.C. 1522) and section 501(a) of the Refugee Education 
        Assistance Act of 1980 (94 Stat. 1809; 8 U.S.C. 1522 note).
            (8) Section 231 of the Second Chance Act of 2007 (Public 
        Law 110-199).
            (9) The Women in Apprenticeship and Nontraditional 
        Occupations Act (29 U.S.C. 2501 et seq.).
            (10) Sections 4103A and 4104 of title 38, United States 
        Code.
            (11) Section 2021 of title 38, United States Code (Homeless 
        Veterans Reintegration Programs).
            (12) Section 1144 of title 10, United States Code 
        (Employment assistance, job training assistance, and other 
        transitional services).

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

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

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

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

SEC. 404. CONFORMING AMENDMENTS TO THE UNITED STATES CODE.

    Title 38, United States Code, is amended--
            (1) by striking the item relating to section 4103A and 
        section 4104 in the table of sections at the beginning of 
        chapter 41 of such title;
            (2) in section 4102A--
                    (A) in subsection (b)--
                            (i) by striking paragraphs (5), (6), and 
                        (7);
                            (ii) by redesignating paragraph (8) as 
                        paragraph (5);
                    (B) by striking subsections (c) and (h);
                    (C) by redesignating subsection (d), (e), (f), and 
                (g) as subsection (c), (d), (e), and (f);
                    (D) in subsection (e)(1) (as so redesignated)--
                            (i) by striking ``, including disabled 
                        veterans' outreach program specialists and 
                        local veterans' employment representatives 
                        providing employment, training, and placement 
                        services under this chapter in a State'';
                            (ii) by striking ``for purposes of 
                        subsection (c)''.
            (3) in section 4109(a), by striking ``disabled veterans' 
        outreach program specialists, local veterans' employment 
        representatives'' and inserting ``veteran employment 
        specialists appointed under section 134(f) of the Workforce 
        Investment Act'';
            (4) in section 4109(d)(1), by striking ``disabled veterans' 
        outreach program specialists and local veterans' employment 
        representatives'' and inserting ``veteran employment 
        specialists appointed under section 134(f) of the Workforce 
        Investment Act'';
            (5) in section 4112(d)--
                    (A) in paragraph (1), by striking ``disabled 
                veterans' outreach program specialist'' and inserting 
                ``veteran employment specialist appointed under section 
                134(f) of the Workforce Investment Act''; and
                    (B) by striking paragraph (2) and redesignating 
                paragraph (3) as paragraph (2);
            (6) in section 3672(d)(1), by striking ``disabled veterans' 
        outreach program specialists under section 4103A'' and 
        inserting ``veteran employment specialists appointed under 
        section 134(f) of the Workforce Investment Act of 1998''.
            (7) in section 4113--
                    (A) in subsection (a), by striking ``section 1144 
                of title 10'' and inserting ``section 175 of the 
                Workforce Investment Act of 1998''; and
                    (B) in subsection (b), by striking ``section 
                1144(a)(1) of title 10'' and inserting ``section 175(a) 
                of the Workforce Investment Act of 1998''; and
            (8) in section 4104A--
                    (A) in subsection (b)(1), by striking subparagraph 
                (A) and inserting the following:
                    ``(A) the appropriate veteran employment specialist 
                (in carrying out the functions described in section 
                134(f);''; and
                    (B) in subsection (c)(1), by striking subparagraph 
                (A) and inserting the following:
                    ``(A) collaborate with the appropriate veteran 
                employment specialist (as described in section 134(f)) 
                and the appropriate State boards and local boards (as 
                such terms are defined in section 101 of the Workforce 
                Investment Act of 1998 (29 U.S.C. 2801));''.

SEC. 405. CONFORMING AMENDMENT TO TABLE OF CONTENTS.

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

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

                ``TITLE I--WORKFORCE INVESTMENT SYSTEMS

             ``Subtitle A--Workforce Investment Definitions

``Sec. 101. Definitions.

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

``Sec. 106. Purpose.

                     ``Chapter 1--State Provisions

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

                     ``Chapter 2--Local Provisions

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

         ``Chapter 3--Workforce Investment Activities Providers

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

                        ``Chapter 4--[Repealed]

            ``Chapter 5--Employment and Training Activities

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

                    ``Chapter 6--General Provisions

``Sec. 136. Performance accountability system.
``Sec. 137. Authorization of appropriations.

                        ``Subtitle C--Job Corps

``Sec. 141. Purposes.
``Sec. 142. Definitions.
``Sec. 143. Establishment.
``Sec. 144. Individuals eligible for the Job Corps.
``Sec. 145. Recruitment, screening, selection, and assignment of 
                            enrollees.
``Sec. 146. Enrollment.
``Sec. 147. Job Corps centers.
``Sec. 148. Program activities.
``Sec. 149. Counseling and job placement.
``Sec. 150. Support.
``Sec. 151. Operations.
``Sec. 152. Standards of conduct.
``Sec. 153. Community participation.
``Sec. 154. Workforce councils.
``Sec. 155. [Repealed].
``Sec. 156. Technical assistance to centers.
``Sec. 157. Application of provisions of Federal law.
``Sec. 158. Special provisions.
``Sec. 159. Management information.
``Sec. 160. General provisions.
``Sec. 161. Closure of low-performing Job Corps centers.
``Sec. 162. Reforms to remove political favoritism in the opening of 
                            new Job Corps centers.

                    ``Subtitle D--National Programs

``Sec. 166. [Repealed].
``Sec. 167. [Repealed].
``Sec. 168. [Repealed].
``Sec. 169. [Repealed].
``Sec. 170. Technical assistance.
``Sec. 171. [Repealed].
``Sec. 172. Evaluations.
``Sec. 173. [Repealed].
``Sec. 173A. [Repealed].
``Sec. 174. [Repealed].
``Sec. 175. Military transitional assistance.

                      ``Subtitle E--Administration

``Sec. 181. Requirements and restrictions.
``Sec. 182. Prompt allocation of funds.
``Sec. 183. Monitoring.
``Sec. 184. Fiscal controls; sanctions.
``Sec. 185. Reports; recordkeeping; investigations.
``Sec. 186. Administrative adjudication.
``Sec. 187. Judicial review.
``Sec. 188. Nondiscrimination.
``Sec. 189. Administrative provisions.
``Sec. 190. References.
``Sec. 191. State legislative authority.
``Sec. 192. [Repealed].
``Sec. 193. Use of certain real property.
``Sec. 194. Continuation of State activities and policies.
``Sec. 195. General program requirements.
``Sec. 196. Department Staff.

            ``Subtitle F--Repeals and Conforming Amendments

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

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

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

                    ``Subtitle A--Federal Provisions

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

                     ``Subtitle B--State Provisions

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

                     ``Subtitle C--Local Provisions

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

                    ``Subtitle D--General Provisions

``Sec. 241. Administrative provisions.
``Sec. 242. National activities.

          ``TITLE III--WORKFORCE INVESTMENT-RELATED ACTIVITIES

                    ``Subtitle A--Wagner-Peyser Act

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

               ``Subtitle B--Linkages With Other Programs

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

        ``Subtitle C--Twenty-First Century Workforce Commission

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

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

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

           ``TITLE IV--REHABILITATION ACT AMENDMENTS OF 1998

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

                     ``TITLE V--GENERAL PROVISIONS

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

         TITLE V--AMENDMENTS TO THE REHABILITATION ACT OF 1973

SEC. 501. FINDINGS.

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

SEC. 502. REHABILITATION SERVICES ADMINISTRATION.

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

SEC. 503. DEFINITIONS.

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

SEC. 504. STATE PLAN.

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

SEC. 505. SCOPE OF SERVICES.

    Section 103 of the Rehabilitation Act of 1973 (29 U.S.C. 723) is 
amended--
            (1) in subsection (a), by striking paragraph (15) and 
        inserting the following:
            ``(15) transition services for students with disabilities, 
        that facilitate the achievement of the employment outcome 
        identified in the individualized plan for employment, including 
        services described in clauses (i) through (iii) of section 
        101(a)(26)(B);'';
            (2) in subsection (b), by striking paragraph (6) and 
        inserting the following:
            ``(6)(A)(i) Consultation and technical assistance services 
        to assist State and local educational agencies in planning for 
        the transition of students with disabilities from school to 
        post-school activities, including employment.
            ``(ii) Training and technical assistance described in 
        section 101(a)(26)(B)(iv).
            ``(B) Services for groups of individuals with disabilities 
        who meet the requirements of clauses (i) and (iii) of section 
        7(35)(A), including services described in clauses (i), (ii), 
        (iii), and (v) of section 101(a)(26)(B), to assist in the 
        transition from school to post-school activities.''; and
            (3) in subsection (b) by inserting at the end, the 
        following:
            ``(7) The establishment, development, or improvement of 
        assistive technology demonstration, loan, reutilization, or 
        financing programs in coordination with activities authorized 
        under the Assistive Technology Act of 1998 (29 U.S.C. 3001) to 
        promote access to assistive technology for individuals with 
        disabilities and employers.''.

SEC. 506. STANDARDS AND INDICATORS.

    Section 106 of the Rehabilitation Act of 1973 (29 U.S.C. 726(a)) is 
amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) Standards and Indicators.--The performance standards and 
indicators for the vocational rehabilitation program carried out under 
this title--
            ``(1) shall be subject to paragraphs (2)(A) and (3) of 
        section 136(b) of the Workforce Investment Act of 1998; and
            ``(2) may, at a State's discretion, include additional 
        indicators identified in the State plan submitted under section 
        101.''; and
            (2) in subsection (b)(2)(B), by striking clause (i) and 
        inserting the following:
                            ``(i) on a biannual basis, review the 
                        program improvement efforts of the State and, 
                        if the State has not improved its performance 
                        to acceptable levels, as determined by the 
                        Director, direct the State to make revisions to 
                        the plan to improve performance; and''.

SEC. 507. COLLABORATION WITH INDUSTRY.

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

``SEC. 109A. COLLABORATION WITH INDUSTRY.

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

SEC. 508. RESERVATION FOR EXPANDED TRANSITION SERVICES.

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

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

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

SEC. 509. CLIENT ASSISTANCE PROGRAM.

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

SEC. 510. TITLE III REPEALS.

    Title III of the Rehabilitation Act of 1973 (29 U.S.C. 771 et seq.) 
is amended--
            (1) in section 301(a)--
                    (A) in paragraph (2), by inserting ``and'' at the 
                end;
                    (B) by striking paragraphs (3) and (4); and
                    (C) by redesignating paragraph (5) as paragraph 
                (3);
            (2) in section 302(g)--
                    (A) in the heading, by striking ``And In-Service 
                Training''; and
                    (B) by striking paragraph (3);
            (3) by striking sections 304 and 305; and
            (4) by redesignating section 306 as section 304.

SEC. 511. REPEAL OF TITLE VI.

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

SEC. 512. CHAIRPERSON.

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

SEC. 513. AUTHORIZATIONS OF APPROPRIATIONS.

    The Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.) is further 
amended--
            (1) in section 100(b)(1) (29 U.S.C. 720(b)(1)), by striking 
        ``such sums as may be necessary for fiscal years 1999 through 
        2003'' and inserting ``$3,121,712,000 for fiscal year 2013 and 
        each of the 5 succeeding fiscal years'';
            (2) in section 110(c) (29 U.S.C. 730(c)), by amending 
        paragraph (2) to read as follows:
            ``(2) The sum referred to in paragraph (1) shall be, as 
        determined by the Secretary, not less than 1 percent and not 
        more than 1.5 percent of the amount referred to in paragraph 
        (1) for each of fiscal years 2013 through 2018.'';
            (3) in section 112(h) (29 U.S.C. 732(h)) by striking ``such 
        sums as may be necessary for fiscal years 1999 through 2003'' 
        and inserting ``$12,240,000 for fiscal year 2013 and each of 
        the 5 succeeding fiscal years'';
            (4) by amending subsection (a) of section 201 (29 U.S.C. 
        761(a)) to read as follows: ``(a) There are authorized to be 
        appropriated $108,817,000 for fiscal year 2013 and each of the 
        5 succeeding fiscal years to carry out this title.'';
            (5) in section 302(i) (29 U.S.C. 772(i)) by striking ``such 
        sums as may be necessary for each of the fiscal years 1999 
        through 2003'' and inserting ``$35,515,000 for fiscal year 2013 
        and each of the 5 succeeding fiscal years'';
            (6) in section 303(e) (29 U.S.C. 773(e)) by striking ``such 
        sums as may be necessary for each of the fiscal years 1999 
        through 2003'' and inserting ``$5,325,000 for fiscal year 2013 
        and each of the 5 succeeding fiscal years'';
            (7) in section 405 (29 U.S.C. 785) by striking ``such sums 
        as may be necessary for each of the fiscal years 1999 through 
        2003'' and inserting ``$3,258,000 for fiscal year 2013 and each 
        of the 5 succeeding fiscal years'';
            (8) in section 502(j) (29 U.S.C. 792(j)) by striking ``such 
        sums as may be necessary for each of the fiscal years 1999 
        through 2003'' and inserting ``$7,400,000 for fiscal year 2013 
        and each of the 5 succeeding fiscal years'';
            (9) in section 509(l) (29 U.S.C. 794e(l)) by striking 
        ``such sums as may be necessary for each of the fiscal years 
        1999 through 2003'' and inserting ``$18,031,000 for fiscal year 
        2013 and each of the 5 succeeding fiscal years'';
            (10) in section 714 (29 U.S.C. 796e-3), by striking ``such 
        sums as may be necessary for each of the fiscal years 1999 
        through 2003'' and inserting ``$23,359,000 for fiscal year 2013 
        and each of the 5 succeeding fiscal years'';
            (11) in section 727 (29 U.S.C. 796f-6), by striking ``such 
        sums as may be necessary for each of the fiscal years 1999 
        through 2003'' and inserting ``$79,953,000 for fiscal year 2013 
        and each of the 5 succeeding fiscal years''; and
            (12) in section 753 (29 U.S.C. 7961), by striking ``such 
        sums as may be necessary for each of the fiscal years 1999 
        through 2003'' and inserting ``$34,018,000 for fiscal year 2013 
        and each of the 5 succeeding fiscal years''.

SEC. 514. CONFORMING AMENDMENTS.

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

``Sec. 109A. Collaboration with industry.'';
            (2) by inserting after the item relating to section 110 the 
        following:

``Sec. 110A. Reservation for expanded transition services.'';
            (3) by striking the item related to section 304 and 
        inserting the following:

``Sec. 304. Measuring of project outcomes and performance.'';
            (4) by striking the items related to sections 305 and 306; 
        and
            (5) by striking the items related to title VI.
                                                 Union Calendar No. 513

112th CONGRESS

  2d Session

                               H. R. 4297

                      [Report No. 112-699, Part I]

_______________________________________________________________________

                                 A BILL

To reform and strengthen the workforce investment system of the Nation 
     to put Americans back to work and make the United States more 
                    competitive in the 21st century.

_______________________________________________________________________

                           December 14, 2012

    The Committee on Veterans' Affairs discharged; committed to the 
 Committee of the Whole House on the State of the Union and ordered to 
                               be printed