[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8102 Introduced in House (IH)]

<DOC>






119th CONGRESS
  2d Session
                                H. R. 8102

 To amend the Workforce Innovation and Opportunity Act to enhance the 
   performance accountability system and dedicate funding to skills 
                              development.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 26, 2026

   Ms. Foxx introduced the following bill; which was referred to the 
                  Committee on Education and Workforce

_______________________________________________________________________

                                 A BILL


 
 To amend the Workforce Innovation and Opportunity Act to enhance the 
   performance accountability system and dedicate funding to skills 
                              development.

    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 Investments Accountability 
Act''.

SEC. 2. PERFORMANCE ACCOUNTABILITY SYSTEM.

    (a) State Performance Accountability Measures.--
            (1) Primary indicators of performance.--Section 
        116(b)(2)(A) of the Workforce Innovation and Opportunity Act 
        (29 U.S.C. 3141(b)(2)(A)) is amended--
                    (A) in clause (i)--
                            (i) in subclause (II)--
                                    (I) by striking ``fourth'' and 
                                inserting ``second''; and
                                    (II) by inserting ``and remain in 
                                unsubsidized employment during the 
                                fourth quarter after exit from the 
                                program'' after ``the program'';
                            (ii) in subclause (IV), by striking 
                        ``secondary school diploma'' and inserting 
                        ``regular high school diploma'';
                            (iii) in subclause (V)--
                                    (I) by striking ``, during a 
                                program year, are in'' and inserting 
                                ``enter into''; and
                                    (II) by inserting before the 
                                semicolon at the end the following: 
                                ``within 12 months after the quarter in 
                                which the participant enters into the 
                                education and training program''; and
                            (iv) by amending subclause (VI) to read as 
                        follows:
                                    ``(VI) of the program participants 
                                who received training services during a 
                                program year, the percentage of such 
                                program participants who participated 
                                in on-the-job training, employer-
                                directed skills development, incumbent 
                                worker training, or an 
                                apprenticeship.'';
                    (B) in clause (ii)--
                            (i) in subclause (II)--
                                    (I) by striking ``fourth'' and 
                                inserting ``second'';
                                    (II) by inserting ``, and who 
                                remain either in such activities or 
                                unsubsidized employment during the 
                                fourth quarter after exit from the 
                                program'' after ``the program''; and
                                    (III) by striking ``and'' at the 
                                end;
                            (ii) in subclause (III)--
                                    (I) by striking ``(VI)'' and 
                                inserting ``(V)''; and
                                    (II) by striking the period at the 
                                end and inserting ``; and''; and
                            (iii) by adding at the end the following:
                                    ``(IV) of the program participants 
                                who exited the program during a program 
                                year, the percentage of such program 
                                participants who completed, prior to 
                                such exit, a work experience as 
                                described in section 129(c)(2)(C).'';
                    (C) in clause (iii), by striking ``secondary school 
                diploma'' and inserting ``regular high school 
                diploma''; and
                    (D) by striking clause (iv).
            (2) Levels of performance.--Section 116(b)(3)(A) of the 
        Workforce Innovation and Opportunity Act (29 U.S.C. 
        3141(b)(3)(A)) is amended--
                    (A) by amending clause (iii) to read as follows:
                            ``(iii) Identification in state plan.--
                                    ``(I) Secretaries.--For each State 
                                submitting a State plan, the Secretary 
                                of Labor and the Secretary of Education 
                                shall, not later than January 15 of the 
                                year in which such State plan is 
                                submitted, for the first 2 program 
                                years covered by the State plan, and 
                                not later than January 15 of the second 
                                program year covered by the State plan, 
                                for the third and fourth program years 
                                covered by the State plan--
                                            ``(aa) propose to the State 
                                        expected levels of performance, 
                                        for each of the corresponding 
                                        primary indicators of 
                                        performance for each of the 
                                        programs described in clause 
                                        (ii) for such State, which 
                                        shall--

                                                    ``(AA) be 
                                                consistent with the 
                                                factors listed in 
                                                clause (v); and

                                                    ``(BB) be proposed 
                                                in a manner that 
                                                ensures sufficient time 
                                                is provided for the 
                                                State to evaluate and 
                                                respond to such 
                                                proposals; and

                                            ``(bb) publish, on a public 
                                        website of the Department of 
                                        Labor, the statistical model 
                                        developed under clause (viii) 
                                        and the methodology used to 
                                        develop each such expected 
                                        level of performance.
                                    ``(II) States.--Each State shall--
                                            ``(aa) evaluate each of the 
                                        expected levels of performance 
                                        proposed under subclause (I) 
                                        with respect to such State;
                                            ``(bb) based on such 
                                        evaluation of each such 
                                        expected level of performance--

                                                    ``(AA) accept the 
                                                expected level of 
                                                performance as so 
                                                proposed; or

                                                    ``(BB) provide a 
                                                counterproposal for 
                                                such expected level of 
                                                performance, including 
                                                an analysis of how the 
                                                counterproposal 
                                                addresses factors or 
                                                circumstances unique to 
                                                the State that may not 
                                                have been accounted for 
                                                in the expected level 
                                                of performance; and

                                            ``(cc) include in the State 
                                        plan, with respect to each of 
                                        the corresponding primary 
                                        indicators of performance for 
                                        each of the programs described 
                                        in clause (ii) for such State--

                                                    ``(AA) the expected 
                                                level of performance 
                                                proposed under 
                                                subclause (I);

                                                    ``(BB) the 
                                                counterproposal for 
                                                such proposed level, if 
                                                any; and

                                                    ``(CC) the level of 
                                                performance that is 
                                                agreed to under clause 
                                                (iv).'';

                    (B) in clause (iv)--
                            (i) in subclause (I)--
                                    (I) in the second sentence, by 
                                striking ``the levels identified in the 
                                State plan under clause (iii) and the 
                                factors described in clause (v)'' and 
                                inserting ``the factors described in 
                                clause (v) and any counterproposal, and 
                                the analysis provided by the State with 
                                such counterproposal, described in 
                                clause (iii)(II)(bb)(BB)''; and
                                    (II) in the third sentence, by 
                                striking ``incorporated into the State 
                                plan'' and inserting ``included in the 
                                State plan, as described in clause 
                                (iii)(II)(cc),''; and
                            (ii) in subclause (II)--
                                    (I) in the second sentence, by 
                                striking ``the factors described in 
                                clause (v)'' and inserting ``the 
                                factors described in clause (v) and any 
                                counterproposal, and the analysis 
                                provided by the State with such 
                                counterproposal, described in clause 
                                (iii)(II)(bb)(BB)''; and
                                    (II) in the third sentence, by 
                                striking ``incorporated into the State 
                                plan'' and inserting ``included in the 
                                State plan, as described in clause 
                                (iii)(II)(cc),''; and
                    (C) in clause (v)(II)--
                            (i) in the matter preceding item (aa), by 
                        striking ``based on'' and inserting ``based on 
                        each consideration that is found to be 
                        predictive of performance on an indicator for a 
                        program and consists of''; and
                            (ii) in item (bb), by inserting ``, foster 
                        care status, school status, education level, 
                        highest grade level completed, and low-income 
                        status''.
    (b) Performance Reports.--Section 116(d) of the Workforce 
Innovation and Opportunity Act (29 U.S.C. 3141(d)) is amended--
            (1) by amending paragraph (1) to read as follows:
            ``(1) In general.--
                    ``(A) Templates for performance reports.--Not later 
                than 12 months after the date of enactment of the 
                Workforce Investments Accountability Act, the Secretary 
                of Labor, in conjunction with the Secretary of 
                Education, shall develop, or review and modify, as 
                appropriate, to comply with the requirements of this 
                subsection, the templates for performance reports that 
                shall be used by States (including by States on behalf 
                of eligible providers of training services under 
                section 122) and local areas to produce a report on 
                outcomes achieved by the core programs. In developing, 
                or reviewing and modifying, such templates, the 
                Secretary of Labor, in conjunction with the Secretary 
                of Education, shall take into account the need to 
                maximize the value of the templates for workers, 
                jobseekers, employers, local elected officials, State 
                officials, Federal policymakers, and other key 
                stakeholders.
                    ``(B) Standardized reporting.--In developing, or 
                reviewing and modifying, the templates under 
                subparagraph (A), the Secretary of Labor, in 
                conjunction with the Secretary of Education, shall 
                ensure that States and local areas, in producing 
                performance reports for core programs and eligible 
                providers of training services, collect and report 
                information on common data elements--
                            ``(i) in a comparable and uniform format; 
                        and
                            ``(ii) using terms that are assigned 
                        identical meanings across all such reports.
                    ``(C) Additional reporting.--The Secretary of 
                Labor, in conjunction with the Secretary of Education--
                            ``(i) in addition to the information on the 
                        common data elements, may require additional 
                        information with respect to any core program as 
                        necessary for effective reporting; and
                            ``(ii) shall periodically review any such 
                        requirement for additional information to 
                        ensure the requirement is necessary and does 
                        not impose an undue reporting burden.
                    ``(D) Privacy.--The Secretary of Labor, in 
                conjunction with the Secretary of Education, shall 
                ensure subparagraph (B) is carried out in a manner that 
                protects and promotes individual privacy and data 
                security, in accordance with applicable Federal privacy 
                laws.
                    ``(E) Access to wage records.--
                            ``(i) Access.--A State may facilitate for a 
                        local area that meets the requirements of 
                        clause (ii), for the sole purpose of fulfilling 
                        the reporting requirements under this 
                        subsection, access to the quarterly wage 
                        records (excluding such records made available 
                        by any other State) of program participants in 
                        the local area.
                            ``(ii) Privacy protections.--To receive 
                        access to such quarterly wage records, the 
                        local area shall have demonstrated to the State 
                        the ability to comply, and agree to comply, 
                        with all applicable Federal and State 
                        requirements relating to the access and use of 
                        such quarterly wage records, including 
                        requirements relating to data privacy and 
                        cybersecurity.'';
            (2) in paragraph (2)--
                    (A) in subparagraph (B), by inserting ``, and 
                aggregated to compare those levels of performance for 
                all individuals with barriers to employment with those 
                levels of performance for all other individuals'' 
                before the semicolon at the end;
                    (B) in subparagraphs (D) and (F), by striking 
                ``career and training services, respectively'' and 
                inserting ``career services, training services, and 
                supportive services, respectively'';
                    (C) by redesignating subparagraphs (J) through (L) 
                as subparagraphs (K) through (M), respectively and 
                inserting after subparagraph (I) the following:
                    ``(J) the median earnings gain of participants who 
                received training services, calculated as the median 
                value of the difference between--
                            ``(i) participant earnings in unsubsidized 
                        employment during the 4 quarters after program 
                        exit; and
                            ``(ii) participant earnings in the 4 
                        quarters prior to entering the program;''; and
                    (D) in subparagraph (L), as so redesignated--
                            (i) by striking clause (ii); and
                            (ii) by striking ``strategies for 
                        programs'' and all that follows through ``the 
                        performance'', and inserting ``strategies for 
                        programs, the performance'';
            (3) in paragraph (3)--
                    (A) in subparagraph (A), by striking ``(L)'' and 
                inserting ``(M)'';
                    (B) in subparagraph (B), by striking ``and'' at the 
                end;
                    (C) by redesignating subparagraph (C) as 
                subparagraph (F); and
                    (D) by inserting after subparagraph (B) the 
                following:
                    ``(C) the percentage of the local area's allocation 
                under section 133(b) that the local area spent on 
                services paid for through an individual training 
                account described in section 134(c)(3)(F)(iii) or a 
                training contract described in section 
                134(c)(3)(G)(ii);
                    ``(D) the percentage of the local area's allocation 
                under section 133(b) that the local area spent on 
                supportive services;
                    ``(E) the percentage of the local area's allocation 
                under section 133(b), if any, that is spent on 
                incumbent worker training; and'';
            (4) by amending paragraph (4) to read as follows:
            ``(4) Contents of eligible training providers performance 
        report.--
                    ``(A) In general.--The State shall use the 
                information submitted by the eligible providers of 
                training services under section 122 and administrative 
                records, including quarterly wage records, of the 
                participants of the programs offered by the providers 
                to produce a performance report on the eligible 
                providers of training services in the State, which 
                shall include, subject to paragraph (6)(C)--
                            ``(i) with respect to each program of study 
                        (or the equivalent) of a provider on the list 
                        described in section 122(d)--
                                    ``(I) information specifying the 
                                levels of performance achieved with 
                                respect to the primary indicators of 
                                performance described in subclauses (I) 
                                through (IV) of subsection (b)(2)(A)(i) 
                                with respect to all individuals 
                                engaging in the program of study (or 
                                the equivalent); and
                                    ``(II) the total number of 
                                individuals exiting from the program of 
                                study (or the equivalent), 
                                disaggregated by whether such 
                                individuals completed the program of 
                                study (or equivalent); and
                            ``(ii) with respect to all eligible 
                        providers of training services under section 
                        122--
                                    ``(I) the total number of 
                                participants who received training 
                                services through each adult and 
                                dislocated worker program authorized 
                                under chapter 3 of subtitle B, 
                                disaggregated by the type of entity 
                                that provided the training services, 
                                during the most recent program year and 
                                the 3 preceding program years;
                                    ``(II) the total number of 
                                participants who exited from training 
                                services, disaggregated by the type of 
                                entity that provided the training 
                                services, and by whether such 
                                participants completed the training 
                                services, during the most recent 
                                program year and the 3 preceding 
                                program years;
                                    ``(III) the average cost per 
                                participant for the participants who 
                                received training services, 
                                disaggregated by the type of entity 
                                that provided the training, during the 
                                most recent program year and the 3 
                                preceding program years;
                                    ``(IV) the average of the per-
                                program ratios of median earnings 
                                increase for a participant to the total 
                                cost of the provider's program; and
                                    ``(V) the number of individuals 
                                with barriers to employment served by 
                                each adult and dislocated worker 
                                program authorized under chapter 3 of 
                                subtitle B, disaggregated by each 
                                subpopulation of such individuals, and 
                                by race, ethnicity, sex, and age; and
                            ``(iii) to the extent practicable, with 
                        respect to each recognized postsecondary 
                        credential awarded by eligible providers in the 
                        State described in section 122(d)--
                                    ``(I) information specifying the 
                                levels of performance achieved with 
                                respect to the primary indicators of 
                                performance described in subclauses (I) 
                                through (IV) of subsection (b)(2)(A)(i) 
                                for all participants in the State 
                                receiving such credential; and
                                    ``(II) information specifying the 
                                levels of performance achieved with 
                                respect to the primary indicators of 
                                performance described in subclauses (I) 
                                through (IV) of subsection (b)(2)(A)(i) 
                                for participants in the State receiving 
                                such credential who are individuals 
                                with barriers to employment, 
                                disaggregated by each subpopulation of 
                                such individuals, and by race, 
                                ethnicity, sex, and age.''; and
            (5) in paragraph (6)--
                    (A) by amending subparagraph (A) to read as 
                follows:
                    ``(A) State performance reports.--The Secretary of 
                Labor and the Secretary of Education shall annually 
                make available the performance reports for States 
                containing the information described in paragraph (2), 
                which shall include making such reports available--
                            ``(i) digitally using transparent, linked, 
                        open, and interoperable data formats that are 
                        human readable and machine actionable such that 
                        the data from these reports--
                                    ``(I) are easily understandable; 
                                and
                                    ``(II) can be easily included in 
                                web-based tools and services supporting 
                                search, discovery, comparison, 
                                analysis, navigation, and guidance;
                            ``(ii) in a printable format; and
                            ``(iii) in multiple languages, to the 
                        extent practicable.'';
                    (B) in subparagraph (B)--
                            (i) by striking ``(including by electronic 
                        means), in an easily understandable format,''; 
                        and
                            (ii) by adding at the end the following: 
                        ``The Secretary of Labor and the Secretary of 
                        Education shall include, on the website where 
                        the State performance reports are required 
                        under subparagraph (A) to be made available, a 
                        link to local area performance reports and the 
                        eligible provider of training services report 
                        for each State. Such reports shall be made 
                        available in each of the formats described in 
                        subparagraph (A).''; and
                    (C) by adding at the end the following:
                    ``(E) Rule of construction.--Nothing in this 
                subsection shall be construed to require the 
                retroactive collection of information, from program 
                years beginning prior to the date of the enactment of 
                the Workforce Investments Accountability Act, that was 
                not required under this subsection prior to such 
                enactment.''.
    (c) Evaluation of State Programs.--Section 116(e) of the Workforce 
Innovation and Opportunity Act (29 U.S.C. 3141(e)) is amended--
            (1) in paragraph (1)--
                    (A) in the first sentence, by striking ``shall 
                conduct ongoing'' and inserting ``shall use data to 
                conduct analyses and ongoing''; and
                    (B) in the second sentence, by striking ``conduct 
                the'' and inserting ``conduct such analyses and''; and
            (2) in paragraph (2), by adding ``A State may use various 
        forms of analysis, such as machine learning or other advanced 
        analytics, to improve program operations and outcomes and to 
        identify areas for further evaluation.'' at the end.
    (d) Sanctions for State Failure To Meet State Performance 
Accountability Measures.--Section 116(f) of the Workforce Innovation 
and Opportunity Act (29 U.S.C. 3141(f)) is amended to read as follows:
    ``(f) Sanctions for State Failure To Meet State Performance 
Accountability Measures.--
            ``(1) Targeted support and assistance.--
                    ``(A) In general.--If a State fails to meet 80 
                percent of the State adjusted level of performance for 
                an indicator described in subsection (b)(2)(A) 
                (referred to in the regulations carrying out this 
                section as an `individual indicator score') for a core 
                program for any program year, the Secretary of Labor 
                and the Secretary of Education shall provide technical 
                assistance.
                    ``(B) Sanctions.--
                            ``(i) In general.--If the State fails in 
                        the manner described in subclause (I) or (II) 
                        of clause (ii) with respect to the program year 
                        specified in that subclause, the percentage of 
                        each amount that could (in the absence of this 
                        subsection) be reserved by the Governor under 
                        section 128(a)(1) for the immediately 
                        succeeding program year shall be reduced by 5 
                        percent and an amount equivalent to the amount 
                        reduced shall be returned to the Secretary of 
                        Labor until such date as the Secretary of Labor 
                        or the Secretary of Education, as appropriate, 
                        determines that the State meets the State 
                        adjusted level of performance, in the case of a 
                        failure described in clause (ii)(II), or has 
                        submitted the reports for the appropriate 
                        program years, in the case of a failure 
                        described in clause (ii)(I).
                            ``(ii) Failures.--A State shall be subject 
                        to clause (i)--
                                    ``(I) if (except in the case of 
                                exceptional circumstances as determined 
                                by the Secretary of Labor or the 
                                Secretary of Education, as 
                                appropriate), such State fails to 
                                submit a report under subsection (d) 
                                for any program year; or
                                    ``(II) for a failure under 
                                subparagraph (A) that has continued for 
                                a second consecutive program year.
            ``(2) Comprehensive support and assistance.--
                    ``(A) In general.--If a State fails to meet an 
                average of 90 percent of the State adjusted levels of 
                performance for a single core program across all 
                indicators of performance (referred to in the 
                regulations carrying out this section as an `overall 
                State program score') for any program year, or if a 
                State fails to meet an average of 90 percent of the 
                State adjusted levels of performance for a single 
                indicator of performance across all core programs 
                (referred to in the regulations carrying out this 
                section as an `overall State indicator score') for any 
                program year, the Secretary of Labor and the Secretary 
                of Education shall provide technical assistance, as 
                described and authorized under section 168(b), 
                including assistance in the development of a 
                comprehensive performance improvement plan.
                    ``(B) Second consecutive year failure.--If such 
                failure under subparagraph (A) continues for a second 
                consecutive program year, the percentage of each amount 
                that could (in the absence of this subsection) be 
                reserved by the Governor under section 128(a)(1) for 
                the immediately succeeding program year shall be 
                reduced by 8 percent and an amount equivalent to the 
                amount reduced shall be returned to the Secretary of 
                Labor until such date as the Secretary of Labor or the 
                Secretary of Education, as appropriate, determines that 
                the State meets such State adjusted levels of 
                performance.
            ``(3) Limitation.--The total reduction under this 
        subsection to the percentage of each amount that could (in the 
        absence of this subsection) be reserved by the Governor under 
        section 128(a)(1) may not exceed 10 percent for a program year.
            ``(4) Reallotment of reductions.--
                    ``(A) In general.--The amounts available for 
                reallotment for a program year shall be reallotted to a 
                State (in this paragraph referred to as an `eligible 
                State') that--
                            ``(i) was not subject to a reduction of 
                        funds under paragraph (1)(B) or paragraph 
                        (2)(B) of this subsection for such program 
                        year;
                            ``(ii) in the case of amounts available 
                        under section 127(b)(1)(C), was 1 of the 5 
                        States that achieved, in the most recent 
                        program year, the greatest increase from the 
                        prior year to the average of the State's 
                        adjusted levels of performance across all 
                        indicators of performance for the youth program 
                        under chapter 2 of subtitle B;
                            ``(iii) in the case of amounts available 
                        under section 132(b)(1)(B), was 1 of the 5 
                        States that achieved, in the most recent 
                        program year, the greatest increase from the 
                        prior year to the average of the State's 
                        adjusted levels of performance across all 
                        indicators of performance for the adult program 
                        under chapter 3 of subtitle B; and
                            ``(iv) in the case of amounts available 
                        under section 132(b)(2)(B), was 1 of the 5 
                        States that achieved, in the most recent 
                        program year, the greatest increase from the 
                        prior year to the average of the State's 
                        adjusted levels of performance across all 
                        indicators of performance for the dislocated 
                        worker program under chapter 3 of subtitle B.
                    ``(B) Amounts available for reallotment.--In this 
                paragraph, the term `amounts available for reallotment 
                for a program year' means the amounts available under 
                section 127(b)(1)(C) and paragraphs (1)(B) and (2)(B) 
                of section 132(b) for such program year which could (in 
                the absence of the requirements to return funds of 
                paragraph (1)(B) or paragraph (2)(B) of this 
                subsection) have otherwise been reserved under section 
                128(a)(1) by a Governor of a State for such program 
                year.
                    ``(C) Reallotment amounts.--In making reallotments 
                under subparagraph (A) for a program year to eligible 
                States, the Secretary shall allot to each eligible 
                State--
                            ``(i) in the case of amounts available 
                        under section 127(b)(1)(C), an amount based on 
                        the relative amount of the allotment made 
                        (before the reallotments under this paragraph 
                        are made) to such eligible State under section 
                        127(b)(1)(C) for such program year, compared to 
                        the total allotments made (before the 
                        reallotments under this paragraph are made) to 
                        all eligible States under section 127(b)(1)(C) 
                        for such program year;
                            ``(ii) in the case of amounts available 
                        under paragraph (1)(B) of section 132(b), an 
                        amount based on the relative amount of the 
                        allotment made (before the reallotments under 
                        this paragraph are made) to such eligible State 
                        under paragraph (1)(B) of section 132(b) for 
                        such program year, compared to the total 
                        allotments made (before the reallotments under 
                        this paragraph are made) to all eligible States 
                        under paragraph (1)(B) of section 132(b) for 
                        such program year; and
                            ``(iii) in the case of amounts available 
                        under paragraph (2)(B) of section 132(b), an 
                        amount based on the relative amount of the 
                        allotment made (before the reallotments under 
                        this paragraph are made) to such eligible State 
                        under paragraph (2)(B) of section 132(b) for 
                        such program year, compared to the total 
                        allotments made (before the reallotments under 
                        this paragraph are made) to all eligible States 
                        under paragraph (2)(B) of section 132(b) for 
                        such program year.''.
    (e) Sanctions for Local Area Failure To Meet Local Performance 
Accountability Measures.--Section 116(g) of the Workforce Innovation 
and Opportunity Act (29 U.S.C. 3141(g)) is amended--
            (1) in paragraph (1)--
                    (A) by inserting ``80 percent of the'' before 
                ``local performance''; and
                    (B) by striking ``local performance accountability 
                measures established under subsection (c)'' and 
                inserting ``local level of performance established 
                under subsection (c) for an indicator of performance 
                described in subsection (b)(2)(A) for a single program, 
                an average of 90 percent of the local levels of 
                performance across all such indicators for a single 
                program, or an average of 90 percent of the local 
                levels of performance for a single such indicator 
                across all programs,''; and
            (2) in paragraph (2)--
                    (A) by amending subparagraph (A) to read as 
                follows:
                    ``(A) In general.--If such failure continues, the 
                Governor shall take corrective actions, which shall 
                include--
                            ``(i) in the case of such failure, as 
                        described in paragraph (1), for a second 
                        consecutive year, on any single indicator, 
                        across indicators for a single program, or on a 
                        single indicator across programs, a 5-percent 
                        reduction in the amount that would (in the 
                        absence of this clause) be allocated to the 
                        local area for the immediately succeeding 
                        program year under chapter 2 or 3 of subtitle B 
                        for the program subject to the performance 
                        failure;
                            ``(ii) in the case of such failure, as 
                        described in paragraph (1), for a third 
                        consecutive year, the development of a 
                        reorganization plan through which the Governor 
                        shall--
                                    ``(I) require the appointment and 
                                certification of a new local board, 
                                consistent with the criteria 
                                established under section 107(b);
                                    ``(II) prohibit the use of one-stop 
                                delivery system contractors or service 
                                providers identified as achieving a 
                                poor level of performance; and
                                    ``(III) redesignate a local area 
                                (which may include merging a local area 
                                with another local area), if the 
                                Governor determines that the likely 
                                cause of such continued performance 
                                failure of a local area is due to such 
                                local area's designation being granted 
                                without the appropriate consideration 
                                of parameters described under section 
                                106(b)(1)(B); or
                            ``(iii) taking another significant action 
                        determined appropriate by the Governor.'';
                    (B) in subparagraph (B)(i), by inserting ``(ii)'' 
                after ``subparagraph (A)''; and
                    (C) by adding at the end the following:
                    ``(D) Reallocation of reductions.--With respect to 
                any amounts available to carry out section 128(b), 
                paragraph (2)(A) or (3) of section 133(b), and section 
                133(b)(2)(B) to a Governor for a program year which 
                would (in the absence of subparagraph (A)(i)) have 
                otherwise been allocated by such Governor to a local 
                area (referred to individually in this subparagraph as 
                an `unallocated amount') for such program year--
                            ``(i) 10 percent of those 3 unallocated 
                        amounts shall be reserved by the Governor to 
                        provide technical assistance to local areas 
                        within the State that were subject to a 
                        reduction of allocation amounts pursuant to 
                        subparagraph (A)(i) for such program year; and
                            ``(ii) the amounts remaining after the 
                        reservations under clause (i) shall be 
                        reallocated by the Governor, to the local areas 
                        within the State that were not subject to a 
                        reduction of allocation amounts pursuant to 
                        subparagraph (A)(i) for such program year, in a 
                        manner determined by the Governor, which may 
                        take into consideration the extent to which 
                        local areas serve a significant number, as 
                        determined by the Governor, of individuals with 
                        barriers to employment.''.
    (f) Establishing Pay-for-Performance Contract Strategy 
Incentives.--Section 116(h) of the Workforce Innovation and Opportunity 
Act (29 U.S.C. 3141(h)) is amended by striking ``non-Federal funds'' 
and inserting ``not more than 5 percent of the funds reserved under 
section 128(a)(1)''.
    (g) Information and Technical Assistance.--Section 116 of the 
Workforce Innovation and Opportunity Act (29 U.S.C. 3141) is amended--
            (1) by redesignating subsection (i) as subsection (j); and
            (2) by inserting after subsection (h) the following:
    ``(i) Information and Technical Assistance.--Beginning not later 
than 12 months after the date of enactment of the Workforce Investments 
Accountability Act, the Secretary of Labor shall hold meetings with 
each State board and State agency that administers a core program, and 
that requests such a meeting, to provide information and technical 
assistance concerning the performance accountability measures 
established in accordance with subsection (b), and related requirements 
for States under this section.''.
    (h) Fiscal and Management Accountability Information Systems.--
Section 116(j) of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3141(j)), as so redesignated, is amended--
            (1) in the first sentence of paragraph (2), by inserting 
        ``, and may use information provided from the National 
        Directory of New Hires in accordance with section 453(j)(8) of 
        the Social Security Act (42 U.S.C. 653(j)(8))'' after ``State 
        law'';
            (2) by redesignating paragraph (3) as paragraph (4); and
            (3) by inserting after paragraph (2) the following:
            ``(3) Designated entity.--The Governor shall designate a 
        State agency (or appropriate State entity) to assist in 
        carrying out the performance reporting requirements of this 
        section for core programs and eligible providers of training 
        services. The designated State agency (or appropriate State 
        entity) shall be responsible for--
                    ``(A) facilitating data matches using quarterly 
                wage record information, including wage record 
                information made available by other States, to measure 
                employment and earnings outcomes;
                    ``(B) notifying State agencies that administer core 
                programs and eligible providers of training services of 
                the State's procedures for data validation and 
                reliability, as described in subsection (d)(5); and
                    ``(C) protection against disaggregation that would 
                violate applicable privacy standards, as described in 
                subsection (d)(6)(C).''.
    (i) Implementation of Performance Accountability Measures.--Section 
116 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3141) is 
amended by adding at the end the following:
    ``(k) Implementation of Performance Accountability Measures.--Not 
later than 12 months after the date of enactment of the Workforce 
Investments Accountability Act, the Secretary of Labor and the 
Secretary of Education shall fully implement the requirements of this 
section for programs described in subsection (b)(3)(A)(iv), including--
            ``(1) developing and disseminating the objective 
        statistical adjustment model described in subsection 
        (b)(3)(A)(viii) and using the model as described in subsection 
        (b)(3)(A)(viii) for each program; and
            ``(2) notifying the State agencies carrying out such 
        programs of the performance accountability measures established 
        under this section, of the reporting and evaluation 
        requirements for such programs, and of the sanctions 
        requirements for programs that fail to meet State adjusted 
        levels of performance under subsection (b)(3)(A)(iv).''.

SEC. 3. MINIMUM AMOUNT FOR SKILLS DEVELOPMENT.

    Section 134(c)(1) of the Workforce Innovation and Opportunity Act 
(29 U.S.C. 3174(c)(1)) is amended--
            (1) by redesignating subparagraph (B) as subparagraph (C); 
        and
            (2) by inserting after subparagraph (A), the following:
                    ``(B) Minimum amount for skills development.--Not 
                less than 50 percent of the funds described in 
                subparagraph (A) shall be used by the local area for 
                the payment of training services--
                            ``(i) provided to adults and dislocated 
                        workers under paragraph (3)(F)(iii); and
                            ``(ii) provided to adults and dislocated 
                        workers under paragraph (3)(G)(ii),''.
                                 <all>