[Congressional Record Volume 151, Number 62 (Thursday, May 12, 2005)]
[Senate]
[Pages S5109-S5154]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. ENZI (for himself and Mr. Kennedy):
  S. 1021. A bill to reauthorize the Workforce Investment Act of 1998, 
and for other purposes; to the Committee on Health, Education, Labor, 
and Pensions.
  Mr. ENZI. Mr. President I rise today to introduce the Workforce 
Investment Act Amendments of 2005. I am pleased to be joined in this 
important effort by Senator Kennedy, the Ranking Member of the Health, 
Education, Labor and Pensions Committee.
  The Workforce Investment Act (WIA), together with the Perkins Career 
and Technical Education Act, which we passed earlier this year, and the 
Higher Education Act, which we will consider in the next few months, 
will provide the important resources that are needed to adequately 
prepare our workforce with the skills that are necessary for jobs and 
careers in high wage and high skilled occupations.
  We are facing an economic challenge that threatens our ability as a 
nation to compete in the global economy. As we heard from the witnesses 
who testified at a hearing held on April 14, 2005, before the Health, 
Education, Labor and Pensions Committee, we have too few workers with 
too few skills. The skill and literacy requirements of today's and 
tomorrow's workplace cannot be met if we do not provide everyone access 
to lifelong education, training and retraining.
  Sixty percent of tomorrow's jobs will require skills that only 20 
percent of today's workers possess. About half of our current workforce 
does not have a postsecondary education degree or credential, when all 
projections are that job growth over the next decade will be in jobs 
that require some postsecondary education or training.
  Technology is demanding that everyone continue to learn and gain 
skills. In January of this year the labor force participation rate for 
individuals over the age of 16 who are willing and able to work was 
68.8 percent, the lowest in over 15 years, as more Americans conclude 
that they cannot meet the skill demands of today's workplace and choose 
to no longer participate in the workforce.
  The legislation I am introducing today helps meet these challenges. 
It is the result of a bipartisan process that began in the 108th 
Congress. It gives States and local areas the flexibility to provide 
training for jobs in high skill, high wage, and high demand 
occupations. It strengthens connections with the private sector, 
postsecondary education and training, and economic development systems 
to prepare the 21st century workforce. It improves the existing 
structure of one-stops to ensure an effective response to the changing 
needs of employers and workers in a new economy. It includes a new 
focus on entrepreneurial skills and micro-enterprises, addresses unique 
needs of small businesses and rural areas, and encourages collaboration 
locally and regionally with economic development and education.
  This legislation also amends the Adult Education and Family Literacy 
Act and the Vocational Rehabilitation Act. These amendments encourage 
coordination with K-12 schools, postsecondary education and the 
workforce system so that individuals with barriers to workforce 
participation will have an opportunity to gain the literacy, language 
or core skills they will need to enter and advance in the workplace.
  I hope that our bipartisan efforts will continue to produce the 
results that are needed as we move this bill through the Senate and 
into Conference. This legislation is critical to meeting the workforce 
challenges of the 21st century. It sends a clear message that we are 
serious about helping our workers and employers remain competitive and 
closing the skills gap that places America's long-term competitiveness 
in jeopardy.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1021

       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 Act 
     Amendments of 2005''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.

[[Page S5115]]

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

                        Subtitle A--Definitions

Sec. 101. Definitions.

      Subtitle B--Statewide and Local Workforce Investment Systems

Sec. 111. Purpose.
Sec. 112. State workforce investment boards.
Sec. 113. State plan.
Sec. 114. Local workforce investment areas.
Sec. 115. Local workforce investment boards.
Sec. 116. Local plan.
Sec. 117. Establishment of one-stop delivery systems.
Sec. 118. Eligible providers of training services.
Sec. 119. Eligible providers of youth activities.
Sec. 120. Youth activities.
Sec. 121. Adult and dislocated worker employment and training 
              activities.
Sec. 122. Performance accountability system.
Sec. 123. Authorization of appropriations.

                         Subtitle C--Job Corps

Sec. 131. Job Corps.

                     Subtitle D--National Programs

Sec. 141. Native American programs.
Sec. 142. Migrant and seasonal farmworker programs.
Sec. 143. Veterans' workforce investment programs.
Sec. 144. Youth challenge grants.
Sec. 145. Technical assistance.
Sec. 146. Demonstration, pilot, multiservice, research, and multistate 
              projects.
Sec. 147. National dislocated worker grants.
Sec. 148. Authorization of appropriations for national activities.

                       Subtitle E--Administration

Sec. 151. Requirements and restrictions.
Sec. 152. Reports.
Sec. 153. Administrative provisions.
Sec. 154. Use of certain real property.
Sec. 155. General program requirements.
Sec. 156. Table of contents.

                      Subtitle F--Incentive Grants

Sec. 161. Incentive grants.

                   Subtitle G--Conforming Amendments

Sec. 171. Conforming amendments.

  TITLE II--AMENDMENTS TO THE ADULT EDUCATION AND FAMILY LITERACY ACT

Sec. 201. Short title; purpose.
Sec. 202. Definitions.
Sec. 203. Authorization of appropriations.
Sec. 204. Home schools.
Sec. 205. Reservation of funds; grants to eligible agencies; 
              allotments.
Sec. 206. Performance accountability system.
Sec. 207. State administration.
Sec. 208. State distribution of funds; matching requirement.
Sec. 209. State leadership activities.
Sec. 210. State plan.
Sec. 211. Programs for corrections education and other 
              institutionalized individuals.
Sec. 212. Grants and contracts for eligible providers.
Sec. 213. Local application.
Sec. 214. Local administrative cost limits.
Sec. 215. Administrative provisions.
Sec. 216. National Institute for Literacy.
Sec. 217. National leadership activities.
Sec. 218. Integrated English literacy and civics education.
Sec. 219. Transition.

            TITLE III--AMENDMENTS TO OTHER PROVISIONS OF LAW

Sec. 301. Wagner-Peyser Act.

                TITLE IV--REHABILITATION ACT AMENDMENTS

Sec. 401. Short title.
Sec. 402. Technical amendments to table of contents.
Sec. 403. Purpose.
Sec. 404. Definitions.
Sec. 405. Administration of the Act.
Sec. 406. Reports.
Sec. 407. Carryover.

             Subtitle A--Vocational Rehabilitation Services

Sec. 411. Declaration of policy; authorization of appropriations.
Sec. 412. State plans.
Sec. 413. Eligibility and individualized plan for employment.
Sec. 414. Vocational rehabilitation services.
Sec. 415. State rehabilitation council.
Sec. 416. Evaluation standards and performance indicators.
Sec. 417. Monitoring and review.
Sec. 418. State allotments.
Sec. 419. Reservation for expanded transition services.
Sec. 420. Client assistance program.
Sec. 421. Incentive grants.
Sec. 422. Vocational rehabilitation services grants.
Sec. 423. GAO studies.

                   Subtitle B--Research and Training

Sec. 431. Declaration of purpose.
Sec. 432. Authorization of appropriations.
Sec. 433. National Institute on Disability and Rehabilitation Research.
Sec. 434. Interagency committee.
Sec. 435. Research and other covered activities.
Sec. 436. Rehabilitation Research Advisory Council.
Sec. 437. Definition.

     Subtitle C--Professional Development and Special Projects and 
                             Demonstrations

Sec. 441. Training.
Sec. 442. Demonstration and training programs.
Sec. 443. Migrant and seasonal farmworkers.
Sec. 444. Recreational programs.

               Subtitle D--National Council on Disability

Sec. 451. Authorization of appropriations.

                    Subtitle E--Rights and Advocacy

Sec. 461. Architectural and Transportation Barriers Compliance Board.
Sec. 462. Protection and advocacy of individual rights.

 Subtitle F--Employment Opportunities for Individuals With Disabilities

Sec. 471. Projects with industry.
Sec. 472. Projects with industry authorization of appropriations.
Sec. 473. Services for individuals with significant disabilities 
              authorization of appropriations.

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

Sec. 481. State plan.
Sec. 482. Statewide Independent Living Council.
Sec. 483. Independent living services authorization of appropriations.
Sec. 484. Program authorization.
Sec. 485. Grants to centers for independent living in States in which 
              Federal funding exceeds State funding.
Sec. 486. Grants to centers for independent living in States in which 
              State funding equals or exceeds Federal funding.
Sec. 487. Standards and assurances for centers for independent living.
Sec. 488. Centers for independent living authorization of 
              appropriations.
Sec. 489. Independent living services for older individuals who are 
              blind.
Sec. 490. Program of grants.
Sec. 491. Independent living services for older individuals who are 
              blind authorization of appropriations.

                       Subtitle H--Miscellaneous

Sec. 495. Helen Keller National Center Act.

                 TITLE V--TRANSITION AND EFFECTIVE DATE

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

     SEC. 3. REFERENCES.

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

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

                        Subtitle A--Definitions

     SEC. 101. DEFINITIONS.

       Section 101 (29 U.S.C. 2801) is amended--
       (1) by redesignating paragraphs (1) through (4), (5) 
     through (16), (17), (18) through (41), and (42) through (53) 
     as paragraphs (2) through (5), (7) through (18), (20), (23) 
     through (46), and (48) through (59), respectively;
       (2) by inserting before paragraph (2) (as redesignated by 
     paragraph (1)) the following:
       ``(1) Accrued expenditures.--The term `accrued 
     expenditures' means charges incurred by recipients of funds 
     under this title for a given period requiring the provision 
     of funds for--
       ``(A) goods or other tangible property received;
       ``(B) services performed by employees, contractors, 
     subgrantees, subcontractors, and other payees; and
       ``(C) other amounts becoming owed under programs assisted 
     under this title for which no current services or performance 
     is required, such as annuities, insurance claims, and other 
     benefit payments.'';
       (3) in paragraph (2) (as redesignated by paragraph (1)), by 
     striking ``Except in sections 127 and 132,'' and inserting 
     ``Except in section 132,'';
       (4) by striking paragraph (5) (as redesignated by paragraph 
     (1)) and inserting the following:
       ``(5) Basic skills deficient.--The term `basic skills 
     deficient' means, with respect to an individual, that the 
     individual--
       ``(A) has English reading, writing, or computing skills at 
     or below the 8th grade level on a generally accepted 
     standardized test or a comparable score on a criterion-
     referenced test; or
       ``(B) is unable to compute or solve problems, read, write, 
     or speak English at a level necessary to function on the job, 
     in the individual's family, or in society.'';
       (5) by inserting after paragraph (5) (as redesignated by 
     paragraph (1)) the following:
       ``(6) Business intermediary.--The term `business 
     intermediary' means an entity that brings together various 
     stakeholders with an expertise in an industry or business 
     sector.'';
       (6) in paragraph (9) (as redesignated by paragraph (1)), by 
     inserting ``, including a faith-based organization,'' after 
     ``nonprofit organization'';
       (7) in paragraph (10) (as redesignated by paragraph (1))--
       (A) in subparagraph (B), by striking ``and'' after the 
     semicolon;
       (B) in subparagraph (C)--
       (i) by striking ``for not less than 50 percent of the cost 
     of the training.'' and inserting ``for--
       ``(i) a significant portion of the cost of training as 
     determined by the local board,

[[Page S5116]]

     taking into account the size of the employer and such other 
     factors as the local board determines to be appropriate; and
       ``(ii) in the case of customized training (as defined in 
     subparagraphs (A) and (B)) with an employer in multiple local 
     areas in the State, a significant portion of the cost of the 
     training, as determined by the Governor, taking into account 
     the size of the employer and such other factors as the 
     Governor determines to be appropriate.'';
       (8) in paragraph (11) (as redesignated by paragraph (1))--
       (A) in subparagraph (A)(ii)(II), by striking ``section 
     134(c)'' and inserting ``section 121(e)'';
       (B) in subparagraph (C), by striking ``or'' after the 
     semicolon;
       (C) in subparagraph (D), by striking the period and 
     inserting ``; or''; and
       (D) by adding at the end the following:
       ``(E)(i) is the spouse of a member of the Armed Forces on 
     active duty for a period of more than 30 days (as defined in 
     section 101(d)(2) of title 10, United States Code) who has 
     experienced a loss of employment as a direct result of 
     relocation to accommodate a permanent change in duty station 
     of such member; or
       ``(ii) is the spouse of a member of the Armed Forces on 
     active duty who meets the criteria described in paragraph 
     (12)(B).'';
       (9) in paragraph (12)(A) (as redesignated by paragraph 
     (1))--
       (A) by striking ``and'' after the semicolon and inserting 
     ``or'';
       (B) by striking ``(A)'' and inserting ``(A)(i)''; and
       (C) by adding at the end the following:
       ``(ii) is the dependent spouse of a member of the Armed 
     Forces on active duty for a period of more than 30 days (as 
     defined in section 101(d)(2) of title 10, United States Code) 
     whose family income is significantly reduced because of a 
     deployment (as defined in section 991(b) of title 10, United 
     States Code, or pursuant to paragraph (4) of such section), a 
     call or order to active duty pursuant to a provision of law 
     referred to in section 101(a)(13)(B) of title 10, United 
     States Code, a permanent change of station, or the service-
     connected (as defined in section 101(16) of title 38, United 
     States Code) death or disability of the member; and'';
       (10) in paragraph (14)(A) (as redesignated by paragraph 
     (1)), by striking ``section 122(e)(3)'' and inserting 
     ``section 122'';
       (11) by inserting after paragraph (18) (as redesignated by 
     paragraph (1)) the following:
       ``(19) Hard-to-serve populations.--The term `hard-to-serve 
     populations' means populations of individuals who are hard to 
     serve, including displaced homemakers, low-income 
     individuals, Native Americans, individuals with disabilities, 
     older individuals, ex-offenders, homeless individuals, 
     individuals with limited English proficiency, individuals who 
     do not meet the definition of literacy in section 203, 
     individuals facing substantial cultural barriers, migrant and 
     seasonal farmworkers, individuals within 2 years of 
     exhausting lifetime eligibility under part A of title IV of 
     the Social Security Act (42 U.S.C. 601 et seq.), single 
     parents (including single pregnant women), and such other 
     groups as the Governor determines to be hard to serve.'';
       (12) by inserting after paragraph (20) (as redesignated by 
     paragraph (1)) the following:
       ``(21) Integrated training program.--The term `integrated 
     training program' means a program that combines occupational 
     skills training with English language acquisition.
       ``(22) Institution of higher education.--The term 
     `institution of higher education' has the meaning given the 
     term in section 101(a), and subparagraphs (A) and (B) of 
     section 102(a)(1), of the Higher Education Act of 1965 (20 
     U.S.C. 1001(a), 1002(a)(1)).'';
       (13) in paragraph (30) (as redesignated by paragraph (1))--
       (A) by redesignating subparagraphs (D) through (F) as 
     subparagraphs (E) through (G), respectively; and
       (B) by inserting after subparagraph (C) the following:
       ``(D) receives or is eligible to receive a free or reduced 
     price lunch under the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1751 et seq.);'';
       (14) in paragraph (31) (as redesignated by paragraph (1)), 
     by inserting after ``fields of work'' the following: ``, 
     including occupations in computer science and technology and 
     other emerging high-skill occupations,'';
       (15) in paragraph (35) (as redesignated by paragraph (1)), 
     by inserting ``, subject to section 121(b)(1)(C)'' after 
     ``121(b)(1)'';
       (16) by striking paragraph (38) (as redesignated by 
     paragraph (1)) and inserting the following:
       ``(38) Out-of-school youth.--The term `out-of-school youth' 
     means an out-of-school youth as defined in section 
     129(a)(1)(B).'';
       (17) by inserting after paragraph (46) (as redesignated by 
     paragraph (1)) the following:
       ``(47) Self-sufficiency.--The term `self-sufficiency' means 
     self-sufficiency within the meaning of subsections 
     (a)(3)(A)(x) and (e)(1)(A)(xii) of section 134.'';
       (18) in paragraph (49) (as redesignated by paragraph (1)), 
     by striking ``clause (iii) or (v) of section 136(b)(3)(A)'' 
     and inserting ``section 136(b)(3)(A)(iii)'';
       (19) in paragraph (58) (as redesignated by paragraph (1)), 
     by striking ``(or as described in section 129(c)(5))'' and 
     inserting ``(or as described in section 129(a)(2))''; and
       (20) in paragraph (59) (as redesignated by paragraph (1)), 
     by striking ``established under section 117(h)'' and 
     inserting ``that may be established under section 
     117(h)(2)''.

      Subtitle B--Statewide and Local Workforce Investment Systems

     SEC. 111. PURPOSE.

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

     ``SEC. 106. PURPOSES.

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

     SEC. 112. STATE WORKFORCE INVESTMENT BOARDS.

       (a) Membership.--
       (1) In general.--Section 111(b) (29 U.S.C. 2821(b)) is 
     amended--
       (A) in paragraph (1), by striking subparagraph (C) and 
     inserting the following:
       ``(C) representatives appointed by the Governor, who--
       ``(i) are the lead State agency officials with 
     responsibility for the programs and activities that are 
     described in section 121(b) and carried out by one-stop 
     partners, except that--

       ``(I) in any case in which no lead State agency official 
     has responsibility for such a program or activity, the 
     representative shall be a representative in the State with 
     expertise relating to such program or activity; and
       ``(II) in the case of the programs authorized under title I 
     of the Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.), 
     the representative shall be the director of the designated 
     State unit, as defined in section 7 of the Rehabilitation Act 
     of 1973 (29 U.S.C. 705);

       ``(ii) are the State agency officials responsible for 
     economic development;
       ``(iii) are representatives of business in the State, 
     including small businesses, who--

       ``(I) are owners of businesses, chief executive or 
     operating officers of businesses, or other business 
     executives or employers with optimum policymaking or hiring 
     authority;
       ``(II) represent businesses with employment opportunities 
     that reflect employment opportunities in the State; and
       ``(III) are appointed from among individuals nominated by 
     State business organizations, business trade associations, 
     and local boards;

       ``(iv) are chief elected officials (representing cities and 
     counties, where appropriate);
       ``(v) are representatives of labor organizations, who have 
     been nominated by State labor federations; and
       ``(vi) are such other State agency officials and other 
     representatives as the Governor may designate.''; and
       (B) in paragraph (3), by striking ``paragraph (1)(C)(i)'' 
     and inserting ``paragraph (1)(C)(iii)''.
       (2) Conforming amendment.--Section 111(c) (29 U.S.C. 
     2821(c)) is amended by striking ``subsection (b)(1)(C)(i)'' 
     and inserting ``subsection (b)(1)(C)(iii)''.
       (b) Functions.--Section 111(d) (29 U.S.C. 2821(d)) is 
     amended--

[[Page S5117]]

       (1) in paragraph (1), by striking ``development'' and 
     inserting ``development, implementation, and revision'';
       (2) in paragraph (2)--
       (A) by striking ``section 134(c)'' and inserting ``section 
     121(e)''; and
       (B) in subparagraph (A), by inserting after ``section 
     121(b)'' the following: ``, including granting the authority 
     for the State employment service under the Wagner-Peyser Act 
     (29 U.S.C. 49 et seq.) to plan and coordinate employment and 
     training activities with local boards'';
       (3) by striking paragraph (3) and inserting the following:
       ``(3) reviewing and providing comment on the State plans of 
     all one-stop partner programs, where applicable, in order to 
     provide effective strategic leadership in the development of 
     a high quality, comprehensive statewide workforce investment 
     system, including commenting at least once annually on the 
     measures taken pursuant to section 113(b)(3) of the Carl D. 
     Perkins Vocational and Technical Education Act of 1998 (20 
     U.S.C. 2323(b)(3)) and title II of this Act;'';
       (4) by redesignating paragraphs (4) through (9) as 
     paragraphs (5) through (10), respectively;
       (5) by inserting after paragraph (3) the following:
       ``(4) development and review of statewide policies 
     affecting the coordinated provision of services through the 
     one-stop delivery system described in section 121(e) within 
     the State, including--
       ``(A) the development of objective criteria and procedures 
     for use by local boards in assessing the effectiveness and 
     continuous improvement of one-stop centers under section 
     121(g);
       ``(B) the development of guidance for the allocation of 
     one-stop center infrastructure funds under section 
     121(h)(1)(B);
       ``(C) the development of--
       ``(i) statewide policies relating to the appropriate roles 
     and contributions of one-stop partner programs within the 
     one-stop delivery system, including approaches to 
     facilitating equitable and efficient cost allocation in the 
     one-stop delivery system;
       ``(ii) statewide strategies for providing effective 
     outreach to individuals, including hard-to-serve populations, 
     and employers who could benefit from services provided 
     through the one-stop delivery system;
       ``(iii) strategies for technology improvements to 
     facilitate access to services provided through the one-stop 
     delivery system, in remote areas, and for individuals with 
     disabilities, which may be utilized throughout the State; and
       ``(iv) strategies for the effective coordination of 
     activities between the one-stop delivery system of the State 
     and the State employment service under the Wagner-Peyser Act 
     (29 U.S.C. 49 et seq.);
       ``(D) identification and dissemination of information on 
     best practices for effective operation of one-stop centers, 
     including use of innovative business outreach, partnerships, 
     and service delivery strategies, including for hard-to-serve 
     populations; and
       ``(E) conduct of such other matters as may promote 
     statewide objectives for, and enhance the performance of, the 
     one-stop delivery system;'';
       (6) in paragraph (5) (as redesignated by paragraph (4)), by 
     inserting ``and the development of statewide criteria to be 
     used by chief elected officials for the appointment of local 
     boards consistent with section 117'' after ``section 116'';
       (7) in paragraph (6) (as redesignated by paragraph (4)), by 
     striking ``sections 128(b)(3)(B) and 133(b)(3)(B)'' and 
     inserting ``sections 128(b)(3) and 133(b)(3)(B)'';
       (8) in paragraph (9) (as redesignated by paragraph (4))--
       (A) by striking ``employment statistics system'' and 
     inserting ``workforce and labor market information system''; 
     and
       (B) by striking ``and'' after the semicolon;
       (9) in paragraph (10) (as redesignated by paragraph (4))--
       (A) by inserting ``section 136(i) and'' before ``section 
     503''; and
       (B) by striking the period and inserting ``; and''; and
       (10) by adding at the end the following:
       ``(11) increasing the availability of skills training, 
     employment opportunities, and career advancement, for hard-
     to-serve populations.''.
       (c) Alternative Entity.--Section 111(e) (29 U.S.C. 2821(e)) 
     is amended--
       (1) in paragraph (1), by striking ``For'' and inserting 
     ``Subject to paragraph (3), for''; and
       (2) by adding at the end the following:
       ``(3) Failure to meet performance measures.--If a State 
     fails to have performed successfully, as defined in section 
     116(a)(2), the Secretary may require the State to establish a 
     State board in accordance with subsections (a), (b), and (c) 
     in lieu of the alternative entity established under paragraph 
     (1).''.
       (d) Conflict of Interest.--Section 111(f)(1) (29 U.S.C. 
     2821(f)(1)) is amended by inserting ``or participate in 
     action taken on'' after ``vote''.
       (e) Sunshine Provision.--Section 111(g) (29 U.S.C. 2821(g)) 
     is amended--
       (1) by inserting ``, and modifications to the State plan,'' 
     before ``prior''; and
       (2) by inserting ``, and modifications to the State plan'' 
     after ``the plan''.
       (f) Authority To Hire Staff.--Section 111 (29 U.S.C. 2821) 
     is amended by adding at the end the following:
       ``(h) Authority To Hire Staff.--
       ``(1) In general.--The State board may hire staff to assist 
     in carrying out the functions described in subsection (d) 
     using funds allocated under sections 127(b)(1)(C) and 132(b).
       ``(2) Limitation on rate.--Funds appropriated under this 
     title shall not be used to pay staff employed by the State 
     board, either as a direct cost or through any proration as an 
     indirect cost, at a rate in excess of the maximum rate 
     payable for a position at GS-15 of the General Schedule as in 
     effect on the date of enactment of the Workforce Investment 
     Act Amendments of 2005.''.

     SEC. 113. STATE PLAN.

       (a) Planning Cycle.--Section 112(a) (29 U.S.C. 2822(a)) is 
     amended--
       (1) by inserting ``, or a State unified plan as described 
     in section 501,'' before ``that outlines'';
       (2) by striking ``5-year strategy'' and inserting ``4-year 
     strategy''; and
       (3) by adding at the end the following: ``At the end of the 
     first 2-year period of the 4-year State plan, the State board 
     shall review and, as needed, amend the 4-year State plan to 
     reflect labor market and economic conditions. In addition, 
     the State shall submit a modification to the State plan at 
     the end of the first 2-year period of the State plan, which 
     may include redesignation of local areas pursuant to section 
     116(a) and specification of the levels of performance under 
     sections 136 for the third and fourth years of the plan.''.
       (b) Contents.--Section 112(b) (29 U.S.C. 2822(b)) is 
     amended--
       (1) in paragraph (8)(A)--
       (A) in clause (ix), by striking ``and'' after the 
     semicolon; and
       (B) by adding at the end the following:
       ``(xi) programs authorized under title II of the Social 
     Security Act (42 U.S.C. 401 et seq.) (relating to Federal 
     old-age, survivors, and disability insurance benefits), title 
     XVI of such Act (42 U.S.C. 1381 et seq.) (relating to 
     supplemental security income), title XIX of such Act (42 
     U.S.C. 1396 et seq.) (relating to medicaid), and title XX of 
     such Act (42 U.S.C. 1397 et seq.) (relating to block grants 
     to States for social services), programs authorized under 
     title VII of the Rehabilitation Act of 1973 (29 U.S.C. 796 et 
     seq.), and programs carried out by State agencies relating to 
     mental retardation and developmental disabilities; and'';
       (2) by striking paragraph (10) and inserting the following:
       ``(10) a description of how the State will use funds the 
     State received under this subtitle to leverage other Federal, 
     State, local, and private resources, in order to maximize the 
     effectiveness of such resources, expand resources for the 
     provision of education and training services, and expand the 
     participation of businesses, employees, and individuals in 
     the statewide workforce investment system, including a 
     description of incentives and technical assistance the State 
     will provide to local areas for such purposes;'';
       (3) in paragraph (12)(A), by striking ``sections 
     128(b)(3)(B) and 133(b)(3)(B)'' and inserting ``sections 
     128(b)(3) and 133(b)(3)(B)'';
       (4) in paragraph (14), by striking ``section 134(c)'' and 
     inserting ``section 121(e)'';
       (5) in paragraph (15), by striking ``section 116(a)(5)'' 
     and inserting ``section 116(a)(4)'';
       (6) in paragraph (17)--
       (A) in subparagraph (A)--
       (i) in clause (iii)--

       (I) by inserting ``local'' before ``customized training''; 
     and
       (II) by striking ``and'' at the end;

       (ii) in clause (iv), by striking ``(including displaced 
     homemakers),'' and all that follows through ``disabilities)'' 
     and inserting ``, hard-to-serve populations, and individuals 
     training for nontraditional employment''; and
       (iii) by adding after clause (iv) the following:
       ``(v) how the State will serve the employment and training 
     needs of individuals with disabilities, consistent with 
     section 188 and Executive Order 13217 (42 U.S.C. 12131 note; 
     relating to community-based alternatives for individuals with 
     disabilities), including the provision of outreach, intake, 
     the conduct of assessments, service delivery, the development 
     of adjustments to performance measures established under 
     section 136, and the training of staff; and''; and
       (B) in subparagraph (B), by striking ``and'' at the end;
       (7) in paragraph (18)(D)--
       (A) by striking ``youth opportunity grants under section 
     169'' and inserting ``youth challenge grants authorized under 
     section 169 and other federally funded youth programs''; and
       (B) by striking the period and inserting a semicolon; and
       (8) by adding at the end the following:
       ``(19) a description of how the State will utilize 
     technology to facilitate access to services in remote areas, 
     which may be utilized throughout the State;
       ``(20) a description of the State strategy for coordinating 
     workforce investment activities and economic development 
     activities, and promoting entrepreneurial skills training and 
     microenterprise services;
       ``(21) a description of the State strategy and assistance 
     to be provided for ensuring regional cooperation within the 
     State and across State borders as appropriate;
       ``(22) a description of how the State will use funds the 
     State receives under this subtitle to--
       ``(A) implement innovative programs and strategies designed 
     to meet the needs of all

[[Page S5118]]

     businesses in the State, including small businesses, which 
     may include incumbent worker training programs, sectoral and 
     industry cluster strategies, regional skills alliances, 
     career ladder programs, utilization of effective business 
     intermediaries, and other business services and strategies 
     that better engage employers in workforce investment 
     activities and make the statewide workforce investment system 
     more relevant to the needs of State and local businesses, 
     consistent with the objectives of this title; and
       ``(B) provide incentives and technical assistance to assist 
     local areas in more fully engaging all employers, including 
     small employers, in local workforce investment activities, to 
     make the workforce investment system more relevant to the 
     needs of area businesses, and to better coordinate workforce 
     investment and economic development efforts to contribute to 
     the economic well-being of the local area, as determined 
     appropriate by the local board;
       ``(23) a description of the State strategy--
       ``(A) for ensuring cooperation between transportation 
     providers, including public transportation providers, and 
     providers of workforce investment activities; and
       ``(B) for ensuring coordination among appropriate State 
     agencies and programs to make available skills training, 
     employment services and opportunities, and career advancement 
     activities, that will assist ex-offenders in reentering the 
     workforce;
       ``(24) a description of how the State will assist local 
     areas in assuring physical and programmatic accessibility for 
     individuals with disabilities at one-stop centers;
       ``(25) a description of the process and methodology that 
     will be used by the State board to--
       ``(A) review statewide policies and provide guidance on the 
     coordinated provision of services through the one-stop 
     delivery system described in section 121(e);
       ``(B) establish, in consultation with chief elected 
     officials and local boards, objective criteria and procedures 
     for use by local boards in periodically assessing the 
     effectiveness, physical and programmatic accessibility, and 
     continuous improvement of one-stop centers and the one-stop 
     delivery system as described in section 121(g); and
       ``(C) determine--
       ``(i) one-stop partner program contributions for the costs 
     of the infrastructure of one-stop centers under section 
     121(h)(2); and
       ``(ii) the formula for allocating the funds described in 
     section 121(h)(2) to local areas;
       ``(26) a description of the State strategy for ensuring 
     that activities carried out under this title are placing men 
     and women in jobs, education, or training that lead to 
     comparable pay; and
       ``(27) a description of the technical assistance available 
     to one-stop operators and providers of training services for 
     strategies to serve hard-to-serve populations and promote 
     placement in nontraditional employment.''.
       (c) Modifications to Plan.--Section 112(d) (29 U.S.C. 
     2822(d)) is amended--
       (1) by striking ``5-year period'' and inserting ``4-year 
     period''; and
       (2) by adding at the end the following: ``In addition, the 
     State shall submit the modifications to the State plan 
     required under subsection (a), under circumstances prescribed 
     by the Secretary that are due to changes in Federal law that 
     significantly affect elements of the State plan.''.

     SEC. 114. LOCAL WORKFORCE INVESTMENT AREAS.

       (a) Designation of Areas.--
       (1) Considerations.--Section 116(a)(1) (29 U.S.C. 
     2831(a)(1)) is amended--
       (A) in subparagraph (A), by striking ``paragraphs (2), (3), 
     and (4)'' and inserting ``paragraphs (2) and (3)''; and
       (B) in subparagraph (B), by adding at the end the 
     following:
       ``(vi) The extent to which such local areas will promote 
     maximum effectiveness in the administration and provision of 
     services.''.
       (2) Automatic designation.--Section 116(a)(2) (29 U.S.C. 
     2831(a)(2)) is amended to read as follows:
       ``(2) Automatic designation.--
       ``(A) In general.--The Governor shall approve a request for 
     designation as a local area that is submitted prior to the 
     submission of the State plan, or of a modification to the 
     State plan relating to area designation, from any area that--
       ``(i) is a unit of general local government with a 
     population of 500,000 or more, except that after the initial 
     2-year period following such designation pursuant to this 
     clause that occurs after the date of enactment of the 
     Workforce Investment Act Amendments of 2005, the Governor 
     shall only be required to approve a request for designation 
     from such area if such area--

       ``(I) performed successfully; and
       ``(II) sustained fiscal integrity;

       ``(ii) was a local area under this title for the preceding 
     2-year period, if such local area--

       ``(I) performed successfully; and
       ``(II) sustained fiscal integrity;

       ``(iii) is served by a rural concentrated employment 
     program grant recipient, except that after the initial 2-year 
     period following any such designation under the initial State 
     plan submitted after the date of enactment of the Workforce 
     Investment Act Amendments of 2005, the Governor shall only be 
     required to approve a request for designation under this 
     clause for such area if such area--

       ``(I) performed successfully; and
       ``(II) sustained fiscal integrity; or

       ``(iv) was a local area under section 116(a)(2)(C) (as in 
     effect on the day before the date of enactment of the 
     Workforce Investment Act Amendments of 2005), except that 
     after the initial 2-year period following such designation 
     pursuant to this clause that occurs after that date of 
     enactment, the Governor shall only be required to approve a 
     request for designation under this clause for such area if 
     such area--

       ``(I) performed successfully; and
       ``(II) sustained fiscal integrity.

       ``(B) Definitions.--For purposes of this paragraph:
       ``(i) Performed successfully.--The term `performed 
     successfully', when used with respect to a local area, means 
     the local area performed at 80 percent or more of the 
     adjusted level of performance for core indicators of 
     performance described in section 136(b)(2)(A) for 2 
     consecutive years.
       ``(ii) Sustained fiscal integrity.--The term `sustained 
     fiscal integrity', used with respect to an area, means that 
     the Secretary has not made a formal determination during the 
     preceding 2-year period that either the grant recipient or 
     the administrative entity of the area misexpended funds 
     provided under this title due to willful disregard of the 
     requirements of the Act involved, gross negligence, or 
     failure to comply with accepted standards of 
     administration.''.
       (3) Conforming amendments.--Section 116(a) (29 U.S.C. 
     2831(a)) is amended--
       (A) by striking paragraph (3);
       (B) by redesignating paragraphs (4) and (5) as paragraph 
     (3) and (4), respectively;
       (C) in paragraph (3) (as redesignated by subparagraph 
     (B))--
       (i) by striking ``(including temporary designation)''; and
       (ii) by striking ``(v)'' and inserting ``(vi)''; and
       (D) in paragraph (4) (as redesignated by subparagraph 
     (B))--
       (i) by striking ``under paragraph (2) or (3)'' and 
     inserting ``under paragraph (2)''; and
       (ii) by striking the second sentence.
       (b) Single Local Area States.--Section 116(b) (29 U.S.C. 
     2831(b)) is amended to read as follows:
       ``(b) Single Local Area States.--
       ``(1) Continuation of previous designation.--
     Notwithstanding subsection (a)(2), the Governor of any State 
     that was a single local area for purposes of this title as of 
     July 1, 2004, may continue to designate the State as a single 
     local area for purposes of this title if the Governor 
     identifies the State as a local area in the State plan under 
     section 112(b)(5).
       ``(2) Redesignation.--The Governor of a State not described 
     in paragraph (1) may designate the State as a single local 
     area if, prior to the submission of the State plan or 
     modification to such plan so designating the State, no local 
     area meeting the requirements for automatic designation under 
     subsection (a)(2) requests such designation as a separate 
     local area.
       ``(3) Effect on local plan.--In any case in which a State 
     is designated as a local area pursuant to this subsection, 
     the local plan prepared under section 118 for the area shall 
     be submitted to the Secretary for approval as part of the 
     State plan under section 112.''.
       (c) Regional Planning.--Section 116(c) (29 U.S.C. 2831(c)) 
     is amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(1) Planning.--
       ``(A) In general.--As part of the process for developing 
     the State plan, a State may require regional planning by 
     local boards for a designated region in the State. The State 
     may require the local boards for a designated region to 
     participate in a regional planning process that results in 
     the establishment of regional performance measures for 
     workforce investment activities authorized under this 
     subtitle. The State, after consultation with local boards and 
     chief elected officials, may require the local boards for the 
     designated region to prepare, submit, and obtain approval of 
     a single regional plan that incorporates local plans for each 
     of the local areas in the region, as required under section 
     118. The State may award regional incentive grants to the 
     designated regions that meet or exceed the regional 
     performance measures pursuant to section 134(a)(2)(B)(iii).
       ``(B) Technical assistance.--If the State requires regional 
     planning as provided in subparagraph (A), the State shall 
     provide technical assistance and labor market information to 
     such local areas in the designated regions to assist with 
     such regional planning and subsequent service delivery 
     efforts.'';
       (2) in paragraph (2), by inserting ``information about the 
     skill requirements of existing and emerging industries and 
     industry clusters,'' after ``information about employment 
     opportunities and trends,''; and
       (3) in paragraph (3), by adding at the end the following: 
     ``Such services may be required to be coordinated with 
     regional economic development services and strategies.''.

     SEC. 115. LOCAL WORKFORCE INVESTMENT BOARDS.

       (a) Composition.--Section 117(b) (29 U.S.C. 2832(b)) is 
     amended--
       (1) in paragraph (2)(A)--
       (A) in clause (i), by striking subclause (II) and inserting 
     the following:

       ``(II) collectively, represent businesses with employment 
     opportunities that reflect the employment opportunities of 
     the local area, and include representatives of businesses 
     that are in high-growth and emerging industries, and 
     representatives of businesses, including small businesses, in 
     the local area; and'';

       (B) by striking clause (ii) and inserting the following:

[[Page S5119]]

       ``(ii)(I) a superintendent representing the local school 
     districts involved or another high-level official from such 
     districts;
       ``(II) the president or highest ranking official of an 
     institution of higher education participating in the 
     workforce investment activities in the local area; and
       ``(III) an administrator of local entities providing adult 
     education and literacy activities in the local area;'';
       (C) in clause (iv), by inserting ``, hard-to-serve 
     populations,'' after ``disabilities'';
       (D) in clause (v), by striking ``and'' at the end; and
       (E) by striking clause (vi) and inserting the following:
       ``(vi) a representative from the State employment service 
     under the Wagner-Peyser Act (29 U.S.C. 49 et seq.) who is 
     serving the local area; and
       ``(vii) if the local board does not establish or continue a 
     youth council, representatives with experience serving out-
     of-school youth, particularly out-of-school youth facing 
     barriers to employment; and''; and
       (2) by adding at the end the following:
       ``(6) Special rule.--In the case that there are multiple 
     school districts or institutions of higher education serving 
     a local area, the representatives described in subclause (I) 
     or (II) of paragraph (2)(A)(ii), respectively, shall be 
     appointed from among individuals nominated by regional or 
     local educational agencies, institutions, or organizations 
     representing such agencies or institutions.''.
       (b) Authority of Board Members.--Section 117(b)(3) (29 
     U.S.C. 2832(b)(3)) is amended--
       (1) in the heading, by inserting ``and representation'' 
     after ``Authority''; and
       (2) by adding at the end the following: ``The members of 
     the board shall represent diverse geographic sections within 
     the local area.''.
       (c) Conforming Amendment.--Section 117(c)(1)(C) (29 U.S.C. 
     2832(c)(1)(C)) is amended by striking ``section 
     116(a)(2)(B)'' and inserting ``section 116(a)(2)(A)(ii)''.
       (d) Functions.--Section 117(d) (29 U.S.C. 2832(d)) is 
     amended--
       (1) in paragraph (2)--
       (A) in subparagraph (B)--
       (i) by inserting ``(except as provided in section 123(b))'' 
     after ``basis''; and
       (ii) by inserting ``(where appropriate)'' after ``youth 
     council''; and
       (B) by adding at the end the following:
       ``(E) Consumer choice requirements.--Consistent with 
     sections 122 and paragraphs (3) and (4) of 134(d), the local 
     board shall work to ensure there are sufficient providers of 
     intensive services and training services serving the local 
     area in a manner that maximizes consumer choice, including 
     providers with expertise in assisting individuals with 
     disabilities.'';
       (2) in paragraph (3)(B), by striking clause (ii) and 
     inserting the following:
       ``(ii) Staff.--

       ``(I) In general.--The local board may hire staff.
       ``(II) Limitation on rate.--Funds appropriated under this 
     title shall not be used to pay staff employed by the local 
     board, either as a direct cost or through any proration as an 
     indirect cost, at a rate in excess of the maximum rate 
     payable for a position at GS-15 of the General Schedule, as 
     in effect on the date of enactment of the Workforce 
     Investment Act Amendments of 2005.'';

       (3) in paragraph (4), by inserting ``, and shall ensure the 
     appropriate use and management of the funds provided under 
     this subtitle for such programs, activities, and system'' 
     after ``area'';
       (4) in paragraph (6)--
       (A) by striking ``Employment statistics system'' and 
     inserting ``Workforce and labor market information system''; 
     and
       (B) by striking ``employment statistics system'' and 
     inserting ``workforce and labor market information system'';
       (5) in paragraph (8)--
       (A) by inserting ``, including small employers,'' after 
     ``private sector employers''; and
       (B) by striking the period and inserting ``, taking into 
     account the unique needs of small businesses.''; and
       (6) by adding at the end the following:
       ``(9) Technology improvements.--The local board shall 
     develop strategies for technology improvements to facilitate 
     access to services, in remote areas, for services authorized 
     under this subtitle and carried out in the local area.''.
       (e) Conforming Amendment.--Section 117(f)(2) (29 U.S.C. 
     2832(f)(2)) is amended by striking ``described in section 
     134(c)''.
       (f) Conflict of Interest.--Section 117(g)(1) (29 U.S.C. 
     2832(g)(1)) is amended by inserting ``or participate in 
     action taken on'' after ``vote.''
       (g) Authority To Establish Councils and Elimination of 
     Requirement for Youth Councils.--Section 117(h) (29 U.S.C. 
     2832(h)) is amended to read as follows:
       ``(h) Councils.--The local board may establish or continue 
     councils to provide information and advice to assist the 
     local board in carrying out activities under this title. Such 
     councils may include--
       ``(1) a council composed of one-stop partners to advise the 
     local board on the operation of the one-stop delivery system 
     involved;
       ``(2) a youth council composed of experts and stakeholders 
     in youth programs to advise the local board on youth 
     activities; and
       ``(3) such other councils as the local board determines are 
     appropriate.''.
       (h) Alternative Entity Provision.--Section 117(i)(1) (29 
     U.S.C. 2832(i)(1)) is amended--
       (1) in the matter preceding subparagraph (A), by striking 
     ``and paragraphs (1) and (2) of subsection (h),'';
       (2) by striking subparagraph (B) and inserting the 
     following:
       ``(B) was in existence on August 7, 1998, pursuant to State 
     law; and'';
       (3) by striking subparagraph (C); and
       (4) by redesignating subparagraph (D) as subparagraph (C).

     SEC. 116. LOCAL PLAN.

       (a) Planning Cycle.--Section 118(a) (29 U.S.C. 2833(a)) is 
     amended--
       (1) by striking ``5-year'' and inserting ``4-year''; and
       (2) by adding at the end the following: ``At the end of the 
     first 2-year period of the 4-year plan, the local board shall 
     review and, as needed, amend the 4-year plan to reflect labor 
     market and economic conditions.''.
       (b) Contents.--Section 118(b) (29 U.S.C. 2833(b)) is 
     amended--
       (1) in paragraph (2)--
       (A) in subparagraph (A), by striking ``and'' after the 
     semicolon;
       (B) by striking subparagraph (B) and inserting the 
     following:
       ``(B) a description of how the local board will facilitate 
     access to services provided through the one-stop delivery 
     system involved, in remote areas, including facilitating 
     access through the use of technology; and''; and
       (C) by adding at the end the following:
       ``(C) a description of how the local board will ensure 
     physical and programmatic accessibility for individuals with 
     disabilities at one-stop centers;'';
       (2) in paragraph (9), by striking ``; and'' and inserting a 
     semicolon;
       (3) by redesignating paragraph (10) as paragraph (16); and
       (4) by inserting after paragraph (9) the following:
       ``(10) a description of how the local board will coordinate 
     workforce investment activities carried out in the local area 
     with economic development activities carried out in the local 
     area, and promote entrepreneurial skills training and 
     microenterprise services;
       ``(11) a description of the strategies and services that 
     will be initiated in the local area to more fully engage all 
     employers, including small employers, in workforce investment 
     activities, to make the workforce investment system more 
     relevant to the needs of area businesses, and to better 
     coordinate workforce investment and economic development 
     efforts, which may include the implementation of innovative 
     initiatives such as incumbent worker training programs, 
     sectoral and industry cluster strategies, regional skills 
     alliance initiatives, career ladder programs, utilization of 
     effective business intermediaries, and other business 
     services and strategies designed to meet the needs of area 
     employers and contribute to the economic well-being of the 
     local area, as determined appropriate by the local board, 
     consistent with the objectives of this title;
       ``(12) a description of how the local board will expand 
     access to education and training services for eligible 
     individuals who are in need of such services through--
       ``(A) the utilization of programs funded under this title; 
     and
       ``(B) the increased leveraging of resources other than 
     those provided under this title, including tax credits, 
     private sector-provided training, and other Federal, State, 
     local, and private funds that are brokered through the one-
     stop centers for training services;
       ``(13) a description of how the local board will coordinate 
     workforce investment activities carried out in the local area 
     with the provision of transportation, including public 
     transportation, in the local area;
       ``(14) a description of plans for, assurances concerning, 
     and strategies for maximizing coordination of services 
     provided by the State employment service under the Wagner-
     Peyser Act (29 U.S.C. 49 et seq.) and services provided in 
     the local area through the one-stop delivery system described 
     in section 121(e), to improve service delivery and avoid 
     duplication of services;
       ``(15) a description of how the local board will coordinate 
     workforce investment activities carried out in the local area 
     with other Federal, State, and local area education, job 
     training, and economic development programs and activities; 
     and''.

     SEC. 117. ESTABLISHMENT OF ONE-STOP DELIVERY SYSTEMS.

       (a) One-Stop Partners.--
       (1) Required partners.--Section 121(b)(1) (29 U.S.C. 
     2841(b)(1)) is amended--
       (A) by striking subparagraph (A) and inserting the 
     following:
       ``(A) Roles and responsibilities of one-stop partners.--
     Each entity that carries out a program or activities 
     described in subparagraph (B) shall--
       ``(i) provide access through the one-stop delivery system 
     to the programs and activities carried out by the entity, 
     including making the core services described in section 
     134(d)(2) that are applicable to the program of the entity 
     available at the 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

[[Page S5120]]

     to the operation of the one-stop system that meets the 
     requirements of subsection (c);
       ``(iv) participate in the operation of the one-stop system 
     consistent with the terms of the memorandum of understanding, 
     the requirements of this title, and the requirements of the 
     Federal laws authorizing the programs carried out by the 
     entity; and
       ``(v) provide representation on the State board to the 
     extent provided under section 111.'';
       (B) in subparagraph (B)--
       (i) by striking clause (v);
       (ii) by redesignating clauses (vi) through (xii) as clauses 
     (v) through (xi), respectively;
       (iii) in clause (x) (as redesignated by clause (ii)), by 
     striking ``and'' at the end;
       (iv) in clause (xi) (as redesignated by clause (ii)), by 
     striking the period and inserting ``; and''; and
       (v) by adding at the end the following:
       ``(xii) programs authorized under part A of title IV of the 
     Social Security Act (42 U.S.C. 601 et seq.), subject to 
     subparagraph (C).''; and
       (C) by adding at the end the following:
       ``(C) Determination by the governor.--
       ``(i) In general.--An entity that carries out programs 
     referred to in subparagraph (B)(xii) shall be included in the 
     one-stop partners for the local area, as a required partner, 
     for purposes of this title unless the Governor of the State 
     provides the notification described in clause (ii).
       ``(ii) Notification.--The notification referred to in 
     clause (i) is a notification that--

       ``(I) is made in writing of a determination by the Governor 
     not to include such entity in the one-stop partners described 
     in clause (i); and
       ``(II) is provided to the Secretary and the Secretary of 
     Health and Human Services.''.

       (2) Additional partners.--
       (A) In general.--Section 121(b)(2)(A) (29 U.S.C. 
     2841(b)(2)(A)) is amended to read as follows:
       ``(A) In general.--With the approval of the local board and 
     chief elected official, in addition to the entities described 
     in paragraph (1), other entities that carry out human 
     resource programs described in subparagraph (B) may be one-
     stop partners and carry out the responsibilities described in 
     paragraph (1)(A).''.
       (B) Additional partners.--Section 121(b)(2)(B) (29 U.S.C. 
     2841(b)(2)(B)) is amended by striking clauses (i) through 
     (iii) and inserting the following:
       ``(i) employment and training programs administered by the 
     Social Security Administration, including the Ticket to Work 
     and Self-Sufficiency program established under section 1148 
     of the Social Security Act (42 U.S.C. 1320b-19);
       ``(ii) employment and training programs carried out by the 
     Small Business Administration;
       ``(iii) programs authorized under section 6(d)(4) of the 
     Food Stamp Act of 1977 (7 U.S.C. 2015(d)(4));''.
       (b) Local Memorandum of Understanding.--Section 
     121(c)(2)(A) (29 U.S.C. 2841(c)(2)(A)) is amended to read as 
     follows:
       ``(A) provisions describing--
       ``(i) the services to be provided through the one-stop 
     delivery system consistent with the requirements of this 
     section, including the manner in which the services will be 
     coordinated through such system;
       ``(ii) how the costs of such services and the operating 
     costs of such system will be funded, 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;
       ``(iv) methods to ensure the needs of hard-to-serve 
     populations are addressed in providing access to services 
     through the one-stop system; and
       ``(v) the duration of the memorandum of understanding and 
     the procedures for amending the memorandum during the term of 
     the memorandum, and assurances that such memorandum shall be 
     reviewed not less than once every 2-year period to ensure 
     appropriate funding and delivery of services; and''.
       (c) Conforming Amendment.--Section 121(d)(2) (29 U.S.C. 
     2841(d)(2)) is amended by striking ``section 134(c)'' and 
     inserting ``section 121(e)''.
       (d) Provision of Services.--
       (1) Elimination of provisions concerning established 
     systems.--Section 121 (29 U.S.C. 2841) is amended by striking 
     subsection (e).
       (2) Redesignation.--Subtitle B of title I is amended--
       (A) in section 134 (29 U.S.C. 2864), by redesignating 
     subsection (c) as subsection (e); and
       (B) by transferring that subsection (e) so that the 
     subsection appears after subsection (d) of section 121.
       (3) One-stop delivery systems.--Paragraph (1) of section 
     121(e) (29 U.S.C. 2841(e)) (as redesignated by paragraph (2)) 
     is amended--
       (A) in subparagraph (A), by striking ``subsection (d)(2)'' 
     and inserting ``section 134(d)(2)'';
       (B) in subparagraph (B)--
       (i) by striking ``subsection (d)'' and inserting ``section 
     134(d)'';
       (ii) by striking ``individual training accounts'' and 
     inserting ``career scholarship accounts''; and
       (iii) by striking ``subsection (d)(4)(G)'' and inserting 
     ``section 134(d)(4)(G)'';
       (C) in subparagraph (C), by striking ``subsection (e)'' and 
     inserting ``section 134(e)'';
       (D) in subparagraph (D), by striking ``section 121(b)'' and 
     inserting ``subsection (b)''; and
       (E) in subparagraph (E), by striking ``information 
     described in section 15'' and inserting ``data, information, 
     and analysis described in section 15(a)''.
       (e) Continuous Improvement of One-Stop Centers.--Section 
     121 (29 U.S.C. 2841) is amended by adding at the end the 
     following:
       ``(g) Continuous Improvement of One-Stop Centers.--
       ``(1) In general.--The State board, in consultation with 
     chief local elected officials and local boards, shall 
     establish objective criteria and procedures for use by local 
     boards in periodically assessing the effectiveness, physical 
     and programmatic accessibility, and continuous improvement of 
     one-stop centers and the one-stop delivery system.
       ``(2) Criteria.--The procedures and criteria developed 
     under this subsection shall include minimum standards 
     relating to the scope and degree of service coordination 
     achieved by the one-stop delivery system with respect to the 
     programs administered by the one-stop partners at the one-
     stop centers, consistent with the guidelines and guidance 
     provided by the Governor and by the State board, in 
     consultation with the chief elected official and local 
     boards, for such partners' participation under subsections 
     (h)(1)(B) and subsection (i), respectively, and such other 
     factors relating to the quality, accessibility, and 
     effectiveness of the one-stop delivery system as the State 
     board determines to be appropriate.
       ``(3) Local boards.--Consistent with the criteria developed 
     by the State, the local board may develop additional criteria 
     of higher standards to respond to local labor market and 
     demographic conditions and trends.
       ``(h) Funding of One-Stop Infrastructure.--
       ``(1) In general.--
       ``(A) Options for infrastructure funding.--
       ``(i) Local options.--The local board, chief elected 
     officials, and one-stop partners in a local area may choose 
     to fund the costs of the infrastructure of one-stop centers 
     through--

       ``(I) methods described in the local memorandum of 
     understanding, if, the local board, chief elected officials, 
     and one-stop partners agree to such methods; or
       ``(II) the State infrastructure funding mechanism described 
     in paragraph (2).

       ``(ii) Failure to reach agreement on funding methods.--If, 
     as of July 1, 2006, the local board, chief elected officials, 
     and one-stop partners in a local area fail to reach agreement 
     on methods of sufficient funding of the infrastructure costs 
     of one-stop centers, as determined by the local area, the 
     State infrastructure funding mechanism described in paragraph 
     (2) shall be applicable to such local area.
       ``(B) Guidance for infrastructure funding.--In addition to 
     carrying out the requirements relating to the State mechanism 
     for one-stop center infrastructure funding described in 
     paragraph (2), the Governor, after consultation with chief 
     local elected officials, local boards, and the State board, 
     and consistent with the guidelines provided by the State 
     board under subsection (i), shall provide--
       ``(i) guidelines for State administered one-stop partner 
     programs in determining such programs' contributions to and 
     participation in the one-stop delivery system, including 
     funding for the costs of infrastructure as defined in 
     paragraph (2)(D), negotiated pursuant to the local memorandum 
     of understanding under subsection (c); and
       ``(ii) guidance to assist local areas in identifying 
     equitable and stable alternative methods of funding of the 
     costs of the infrastructure of one-stop centers in local 
     areas.
       ``(2) State one-stop infrastructure funding.--
       ``(A) Partner contributions.--
       ``(i) In general.--Subject to clause (iii), a portion 
     determined under clause (ii) of the Federal funds provided to 
     the State and areas within the State under the Federal laws 
     authorizing the programs described in subsection (b)(1) and 
     administered by one-stop partners for a fiscal year shall be 
     provided to the Governor from such programs to assist in 
     paying the costs of infrastructure of one-stop centers in 
     those local areas of the State not funded under the option 
     described in paragraph (1)(A)(i)(I).
       ``(ii) Determination of governor.--

       ``(I) In general.--Subject to subclause (II) and clause 
     (iii), the Governor, after consultation with chief local 
     elected officials, local boards, and the State board, shall 
     determine the portion of funds to be provided under clause 
     (i) by each one-stop partner from each program described in 
     clause (i). In making such determination, the Governor shall 
     calculate the proportionate use of the one-stop centers for 
     the purpose of determining funding contributions pursuant to 
     clause (i)(II) or (ii) of paragraph (1)(A) by each partner, 
     and the costs of administration for purposes not related to 
     one-stop centers for each partner. The Governor shall exclude 
     from such determination the portion of funds and use of one-
     stop centers attributable to the programs of one-stop 
     partners for those local areas of the State where the 
     infrastructure of one-stop centers is funded under the option 
     described in paragraph (1)(A)(i)(I).

[[Page S5121]]

       ``(II) Special rule.--In a State in which the State 
     constitution places policymaking authority that is 
     independent of the authority of the Governor in an entity or 
     official with respect to the funds provided for adult 
     education and literacy activities authorized under title II 
     and for postsecondary vocational and technical education 
     activities authorized under the Carl D. Perkins Vocational 
     and Technical Education Act of 1998 (20 U.S.C. 2301 et seq.), 
     or vocational rehabilitation services offered under the 
     Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.), the 
     determination described in subclause (I) with respect to the 
     programs authorized under that title and those Acts shall be 
     made by the chief officer of the entity with such authority 
     in consultation with the Governor.
       ``(III) Appeal by one-stop partners.--The Governor shall 
     establish a procedure for the one-stop partner administering 
     a program described in subsection (b) to appeal a 
     determination regarding the portion of funds to be 
     contributed under this paragraph on the basis that such 
     determination is inconsistent with the criteria described in 
     the State plan or with the requirements of this paragraph. 
     Such procedure shall ensure prompt resolution of the appeal.

       ``(iii) Limitations.--

       ``(I) Provision from administrative funds.--The funds 
     provided under this paragraph by each one-stop partner shall 
     be provided only from funds available for the costs of 
     administration under the program administered by such 
     partner, and shall be subject to the program limitations with 
     respect to the portion of funds under such program that may 
     be used for administration.
       ``(II) Cap on required contributions.--

       ``(aa) WIA formula programs and employment service.--The 
     portion of funds required to be contributed under clause 
     (i)(II) or (ii) of paragraph (1)(A) by the programs 
     authorized under chapters 4 and 5 and under the Wagner-Peyser 
     Act (29 U.S.C. 49 et seq.) shall not be in excess of 3 
     percent of the amount of Federal funds provided to carry out 
     each such program in the State for a fiscal year.
       ``(bb) Other one-stop partners.--The portion of funds 
     required to be contributed under clause (i)(II) or (ii) of 
     paragraph (1)(A) by a one-stop partner from a program 
     described in subsection (b)(1) other than the programs 
     described under item (aa) shall not be in excess of 1\1/2\ 
     percent of the amount of Federal funds provided to carry out 
     such program in the State for a fiscal year.
       ``(cc) Special rule.--Notwithstanding items (aa) and (bb), 
     an agreement, including a local memorandum of understanding, 
     entered into prior to the date of enactment of the Workforce 
     Investment Act Amendments of 2005 by an entity regarding 
     contributions under this title that permits the percentages 
     described in such items to be exceeded, may continue to be in 
     effect until terminated by the parties.
       ``(dd) Vocational rehabilitation.--Notwithstanding items 
     (aa) and (bb), an entity administering a program under title 
     I of the Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.) 
     shall not be required to provide, for the purposes of this 
     paragraph, an amount in excess of--

       ``(AA) 0.75 percent of the amount provided for such program 
     in the State for the second program year that begins after 
     the date of enactment of the Workforce Investment Act 
     Amendments of 2005;
       ``(BB) 1.0 percent of the amount provided for such program 
     in the State for the third program year that begins after 
     such date;
       ``(CC) 1.25 percent of the amount provided for such program 
     in the State for the fourth program year that begins after 
     such date; and
       ``(DD) 1.5 percent of the amount provided for such program 
     in the State for the fifth and each succeeding program year 
     that begins after such date.
       ``(III) Federal direct spending programs.--An entity 
     administering a program funded with direct spending as 
     defined in section 250(c)(8) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985 (2 U.S.C. 900(c)(8)) 
     shall not be required to provide, for purposes of this 
     paragraph, an amount in excess of the amount determined to be 
     equivalent to the cost of the proportionate use of the one-
     stop centers for such program in the State.
       ``(IV) Native american programs.--Native American programs 
     established under section 166 shall not be subject to the 
     provisions of this subsection or subsection (i). The method 
     for determining the appropriate portion of funds to be 
     provided by such Native American programs to pay for the 
     costs of infrastructure of a one-stop center shall be 
     determined as part of the development of the memorandum of 
     understanding under subsection (c) for the one-stop center 
     and shall be stated in the memorandum.

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

     SEC. 118. 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(d)(4) (referred to in this section 
     as `training services') to receive funds provided under 
     section 133(b) for the provision of training services.
       ``(2) Providers.--Subject to the provisions of this 
     section, to be eligible to receive the funds provided under 
     section 133(b) for the provision of training services, the 
     provider shall be--
       ``(A) a postsecondary educational institution that--
       ``(i) is eligible to receive Federal funds under title IV 
     of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.); 
     and
       ``(ii) provides a program that leads to an associate 
     degree, baccalaureate degree, or industry-recognized 
     certification;
       ``(B) an entity that carries out programs under the Act of 
     August 16, 1937 (commonly known as the `National 
     Apprenticeship Act'; 50 Stat. 664, chapter 663; 29 U.S.C. 50 
     et seq.); or
       ``(C) another public or private provider of a program of 
     training services.
       ``(3) Inclusion in list of eligible providers.--A provider 
     described in subparagraph (A) or (C) of paragraph (2) shall 
     comply with the criteria and procedures established under 
     this section to be included on the list of eligible providers 
     of training services described in subsection (d)(1). A 
     provider described in paragraph (2)(B) shall be included on 
     the list of eligible providers of training services described 
     in subsection (d)(1) for so long as the provider remains 
     certified by the Department of Labor to carry out the 
     programs described in paragraph (2)(B).
       ``(b) Criteria.--
       ``(1) In general.--The criteria established by the Governor 
     pursuant to subsection (a) shall take into account--
       ``(A) the performance of providers of training services 
     with respect to the performance measures 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) the need to ensure access to training services 
     throughout the State, including any rural areas;
       ``(C) the information such providers are required to report 
     to State agencies with respect to Federal and State programs 
     (other than the program carried out under this subtitle), 
     including one-stop partner programs;
       ``(D) the requirements for State licensing of providers of 
     training services, and the licensing status of each provider 
     of training services if applicable;
       ``(E) to the extent practicable, encouraging the use of 
     industry-recognized standards and certification;
       ``(F) the ability of the providers to offer programs that 
     lead to a degree or an industry-recognized certification;

[[Page S5122]]

       ``(G) the ability to provide training services to hard-to-
     serve populations, including individuals with disabilities; 
     and
       ``(H) such other factors as the Governor determines are 
     appropriate to ensure--
       ``(i) the quality of services provided;
       ``(ii) the accountability of the providers;
       ``(iii) that the one-stop centers in the State will ensure 
     that such providers meet the needs of local employers and 
     participants;
       ``(iv) the informed choice of participants under chapter 5; 
     and
       ``(v) that the collection of information required is not 
     unduly burdensome or costly to providers.
       ``(2) Information.--The criteria established by the 
     Governor shall require that a provider of training services 
     submit appropriate, accurate, and timely information to the 
     State for purposes of carrying out subsection (d), with 
     respect to participants receiving training services under 
     this subtitle in the applicable program, including--
       ``(A) information on degrees and industry-recognized 
     certifications received by such participants;
       ``(B) information on costs of attendance for such 
     participants;
       ``(C) information on the program completion rate for such 
     participants; and
       ``(D) information on the performance of the provider with 
     respect to the performance measures described in section 136 
     for such participants (taking into consideration the 
     characteristics of the population served and relevant 
     economic conditions), which may include information 
     specifying the percentage of such participants who entered 
     unsubsidized employment in an occupation related to the 
     program.
       ``(3) Renewal.--The criteria established by the Governor 
     shall also provide for biennial review and renewal of 
     eligibility under this section for providers of training 
     services.
       ``(4) Local criteria.--A local board in the State may 
     establish criteria in addition to the criteria established by 
     the Governor, or may require higher levels of performance 
     than required under the criteria established by the Governor, 
     for purposes of determining the eligibility of providers of 
     training services to receive funds described in subsection 
     (a) to provide the services in the local area involved.
       ``(5) Information to establish initial eligibility.--
       ``(A) In general.--In an effort to provide the highest-
     quality training services and responsiveness to new and 
     emerging industries, providers may seek initial eligibility 
     under this section as providers of training services. The 
     criteria established by the Governor shall require that a 
     provider who has not previously been an eligible provider of 
     training services under this section provide the information 
     described in subparagraph (B).
       ``(B) Information.--The provider shall provide verifiable 
     program-specific performance information supporting the 
     provider's ability to serve participants under this subtitle. 
     The information provided under this subparagraph may include 
     information on outcome measures such as job placement and 
     wage increases for individuals participating in the program, 
     information on business partnerships and other factors that 
     indicate high-quality training services, and information on 
     alignment with industries targeted for potential employment 
     opportunities.
       ``(C) Provision.--The provider shall provide the 
     information described in subparagraph (B) to the Governor and 
     the local boards in a manner that will permit the Governor 
     and the local boards to make a decision on inclusion of the 
     provider on the list of eligible providers described in 
     subsection (d).
       ``(c) Procedures.--The procedures established under 
     subsection (a) shall identify the application process for a 
     provider of training services to become eligible to receive 
     funds provided under section 133(b) for the provision of 
     training services, and identify the respective roles of the 
     State and local areas in receiving and reviewing the 
     applications and in making determinations of such eligibility 
     based on the criteria established under this section. The 
     procedures shall also establish a process for a provider of 
     training services to appeal a denial or termination of 
     eligibility under this section, that includes an opportunity 
     for a hearing and prescribes appropriate time limits to 
     ensure prompt resolution of the appeal.
       ``(d) Information To Assist Participants in Choosing 
     Providers.--In order to facilitate and assist participants in 
     choosing employment and training activities under chapter 5 
     and in choosing providers of training services, the Governor 
     shall ensure that an appropriate list of providers determined 
     to be eligible under this section in the State, accompanied 
     by appropriate information, is provided to the one-stop 
     delivery system in the State. The accompanying information 
     shall consist of information provided by providers described 
     in subparagraphs (A) and (C) of subsection (a)(2) in 
     accordance with subsection (b) (including information on 
     receipt of degrees and industry-recognized certifications, 
     and costs of attendance, for participants receiving training 
     services under this subtitle in applicable programs) and such 
     other information as the Secretary determines is appropriate. 
     The list and the accompanying information shall be made 
     available to such participants and to members of the public 
     through the one-stop delivery system in the State.
       ``(e) Enforcement.--
       ``(1) In general.--The criteria and procedures established 
     under this section shall provide the following:
       ``(A) Intentionally supplying inaccurate information.--Upon 
     a determination, by an individual or entity specified in the 
     criteria or procedures, that a provider of training services, 
     or individual providing information on behalf of the 
     provider, intentionally supplied inaccurate information under 
     this section, the eligibility of such provider to receive 
     funds under chapter 5 shall be terminated for a period of 
     time that is not less than 2 years.
       ``(B) Substantial violations.--Upon a determination, by an 
     individual or entity specified in the criteria or procedures, 
     that a provider of training services substantially violated 
     any requirement under this title, the eligibility of such 
     provider to receive funds under the program involved may be 
     terminated, or other appropriate action may be taken.
       ``(C) Repayment.--A provider of training services whose 
     eligibility is terminated under subparagraph (A) or (B) shall 
     be liable for the repayment of funds received under chapter 5 
     during a period of noncompliance described in such 
     subparagraph.
       ``(2) Construction.--Paragraph (1) shall be construed to 
     provide remedies and penalties that supplement, but do not 
     supplant, other civil and criminal remedies and penalties.
       ``(f) Agreements With Other States.--States may enter into 
     agreements, on a reciprocal basis, to permit eligible 
     providers of training services to accept career scholarship 
     accounts provided in another State.
       ``(g) Opportunity To Submit Comments.--In establishing 
     criteria, procedures, requirements for information, and the 
     list of eligible providers described in subsection (d)(1), 
     the Governor shall provide an opportunity for interested 
     members of the public to make recommendations and submit 
     comments regarding such criteria, procedures, requirements 
     for information, and list.
       ``(h) Transition Period for Implementation.--The 
     requirements of this section shall be implemented not later 
     than December 31, 2006. In order to facilitate early 
     implementation of this section, the Governor may establish 
     transition procedures under which providers eligible to 
     provide training services under chapter 5 as such chapter was 
     in effect on the day before the date of enactment of the 
     Workforce Investment Act Amendments of 2005 may continue to 
     be eligible to provide such services until December 31, 2006, 
     or until such earlier date as the Governor determines to be 
     appropriate.
       ``(i) On-the-Job Training, Customized Training, or 
     Incumbent Worker Training Exception.--
       ``(1) In general.--Providers of on-the-job training, 
     customized training, or incumbent worker training shall not 
     be subject to the requirements of subsections (a) through 
     (h).
       ``(2) Collection and dissemination of information.--A one-
     stop operator in a local area shall collect such performance 
     information from providers of on-the-job training, customized 
     training, and incumbent worker training 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. 119. ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES.

       Section 123 (29 U.S.C. 2843) is amended to read as follows:

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

       ``(a) In General.--From the funds allocated under section 
     128(b) to a local area, the local board for such area shall 
     award grants or contracts on a competitive basis to providers 
     of youth activities identified based on the criteria in the 
     State plan described in section 112 and shall conduct 
     oversight with respect to such providers.
       ``(b) Exceptions.--A local board may award grants or 
     contracts on a sole-source basis if such board determines 
     there is an insufficient number of eligible providers of 
     youth activities in the local area involved (such as a rural 
     area) for grants and contracts to be awarded on a competitive 
     basis under subsection (a).''.

     SEC. 120. YOUTH ACTIVITIES.

       (a) State Allotments.--Section 127 (29 U.S.C. 2852) is 
     amended--
       (1) in subsection (a)(1), by striking ``opportunity'' and 
     inserting ``challenge''; and
       (2) by striking subsection (b) and inserting the following:
       ``(b) Allotment Among States.--
       ``(1) Youth activities.--
       ``(A) Youth challenge grants and youth activities for 
     farmworkers and native americans.--
       ``(i) In general.--For each fiscal year in which the amount 
     appropriated under section 137(a) exceeds $1,000,000,000, the 
     Secretary shall reserve a portion of the amount to provide 
     youth activities under section 167 (relating to migrant and 
     seasonal farmworker programs) and provide youth challenge 
     grants and other activities under section 169 (relating to 
     youth challenge grants).
       ``(ii) Portion.--The portion referred to in clause (i) 
     shall equal, for a fiscal year--

       ``(I) except as provided in subclause (II), the difference 
     obtained by subtracting $1,000,000,000 from the amount 
     appropriated under section 137(a) for the fiscal year; or

[[Page S5123]]

       ``(II) for any fiscal year in which the amount is 
     $1,250,000,000 or greater, $250,000,000.

       ``(iii) Youth activities for farmworkers.--For a fiscal 
     year described in clause (i), the Secretary shall reserve the 
     greater of $10,000,000 or 4 percent of the portion described 
     in clause (i) for a fiscal year to provide youth activities 
     under section 167. For a fiscal year not described in clause 
     (i), the Secretary shall reserve $10,000,000 of the amount 
     appropriated under section 137(a) to provide youth activities 
     under section 167.
       ``(iv) Youth activities for native americans.--From the 
     amount appropriated under section 137(a) for each fiscal year 
     that is not reserved under clause (i) or (iii), the Secretary 
     shall reserve not more than 1\1/2\ percent of such 
     appropriated amount to provide youth activities under section 
     166 (relating to Native Americans).
       ``(B) Outlying areas.--
       ``(i) In general.--From the amount appropriated under 
     section 137(a) for each fiscal year that is not reserved 
     under subparagraph (A), the Secretary shall reserve not more 
     than \1/4\ of 1 percent of the appropriated amount to provide 
     assistance to the outlying areas to carry out youth 
     activities and statewide workforce investment activities.
       ``(ii) Limitation for freely associated states.--

       ``(I) Competitive grants.--The Secretary shall use funds 
     described in clause (i) to award grants to Guam, American 
     Samoa, the Commonwealth of the Northern Mariana Islands, and 
     the Freely Associated States to carry out youth activities 
     and statewide workforce investment activities.
       ``(II) Award basis.--The Secretary shall award grants 
     pursuant to subclause (I) on a competitive basis and pursuant 
     to the recommendations of experts in the field of employment 
     and training, working through the Pacific Region Educational 
     Laboratory in Honolulu, Hawaii.
       ``(III) Assistance requirements.--Any Freely Associated 
     State that desires to receive assistance under this 
     subparagraph shall submit an application to the Secretary and 
     shall include in the application for assistance--

       ``(aa) information demonstrating that the Freely Associated 
     State will meet all conditions that apply to States under 
     this title;
       ``(bb) an assurance that, notwithstanding any other 
     provision of this title, the Freely Associated State will use 
     such assistance only for the direct provision of services; 
     and
       ``(cc) such other information and assurances as the 
     Secretary may require.

       ``(IV) Administrative costs.--The Secretary may provide not 
     more than 5 percent of the funds made available for grants 
     under subclause (I) to pay the administrative costs of the 
     Pacific Region Educational Laboratory in Honolulu, Hawaii, 
     regarding activities assisted under this clause.

       ``(iii) Additional requirement.--The provisions of Public 
     Law 95-134, permitting the consolidation of grants by the 
     outlying areas, shall not apply to assistance provided to 
     those areas, including the Freely Associated States, under 
     this subparagraph.
       ``(C) States.--
       ``(i) In general.--From the remainder of the amount 
     appropriated under section 137(a) for a fiscal year that 
     exists after the Secretary determines the amounts to be 
     reserved under subparagraphs (A) and (B), the Secretary shall 
     allot to the States--

       ``(I) an amount of the remainder that is less than or equal 
     to the total amount that was allotted to States for fiscal 
     year 2005 under section 127(b)(1)(C) of this Act (as in 
     effect on the day before the date of enactment of the 
     Workforce Investment Act Amendments of 2005), in accordance 
     with the requirements of such section 127(b)(1)(C); and
       ``(II) the amount of the remainder, if any, in excess of 
     the amount referred to in subclause (I), in accordance with 
     clause (ii).

       ``(ii) Formula.--Subject to clauses (iii) and (iv), of the 
     amount described in clause (i)(II)--

       ``(I) 33\1/3\ percent shall be allotted on the basis of the 
     relative number of individuals in the civilian labor force 
     who are ages 16 through 21 in each State, compared to the 
     total number of individuals in the civilian labor force who 
     are ages 16 through 21 in all States;
       ``(II) 33\1/3\ percent shall be allotted on the basis of 
     the relative number of unemployed individuals in each State, 
     compared to the total number of unemployed individuals in all 
     States; and
       ``(III) 33\1/3\ percent shall be allotted on the basis of 
     the relative number of disadvantaged youth who are ages 16 
     through 21 in each State, compared to the total number of 
     disadvantaged youth who are ages 16 through 21 in all States.

       ``(iii) Minimum and maximum percentages.--

       ``(I) Minimum percentage.--The Secretary shall ensure that 
     no State shall receive an allotment percentage under this 
     subparagraph for a fiscal year that is less than 90 percent 
     of the allotment percentage of the State for the preceding 
     fiscal year.
       ``(II) Maximum percentage.--Subject to subclause (I), the 
     Secretary shall ensure that no State shall receive an 
     allotment percentage under this subparagraph for a fiscal 
     year that is more than 130 percent of the allotment 
     percentage of the State for the preceding fiscal year.

       ``(iv) Small state minimum allotment.--Subject to clause 
     (iii), the Secretary shall ensure that no State shall receive 
     an allotment under this subparagraph that is less than the 
     total of--

       ``(I) \3/10\ of 1 percent of $1,000,000,000 of the 
     remainder described in clause (i) for the fiscal year; and
       ``(II) if the remainder described in clause (i) for the 
     fiscal year exceeds $1,000,000,000, \2/5\ of 1 percent of the 
     excess.

       ``(2) Definitions.--For the purposes of paragraph (1):
       ``(A) Allotment percentage.--The term `allotment 
     percentage', used with respect to fiscal year 2006 or a 
     subsequent fiscal year, means a percentage of the remainder 
     described in paragraph (1)(C)(i) that is received by the 
     State involved through an allotment made under this 
     subsection for the fiscal year. The term, used with respect 
     to fiscal year 2005, means the percentage of the amounts 
     allotted to States under this chapter (as in effect on the 
     day before the date of enactment of the Workforce Investment 
     Act Amendments of 2005) that is received by the State 
     involved for fiscal year 2005.
       ``(B) Disadvantaged youth.--Subject to paragraph (3), the 
     term `disadvantaged youth' means an individual who is age 16 
     through 21 who received an income, or is a member of a family 
     that received a total family income, that, in relation to 
     family size, does not exceed the higher of--
       ``(i) the poverty line; or
       ``(ii) 70 percent of the lower living standard income 
     level.
       ``(C) Freely associated state.--The term `Freely Associated 
     State' means the Republic of the Marshall Islands, the 
     Federated States of Micronesia, and the Republic of Palau.
       ``(3) Special rule.--For purposes of the formula specified 
     in paragraph (1)(C), the Secretary shall, as appropriate and 
     to the extent practicable, exclude college students and 
     members of the Armed Forces from the determination of the 
     number of disadvantaged youth.''.
       (b) Reallotment.--
       (1) Amendment.--Section 127(c) (29 U.S.C. 2852(c)) is 
     amended--
       (A) by striking paragraph (2) and inserting the following:
       ``(2) Amount.--The amount available for reallotment for a 
     program year is equal to the amount by which the unexpended 
     balance at the end of the program year prior to the program 
     year for which the determination is made exceeds 30 percent 
     of the total amount of funds available to the State under 
     this section during such prior program year (including 
     amounts allotted to the State in all prior program years that 
     remained available). For purposes of this paragraph, the 
     unexpended balance is the amount that is the difference 
     between--
       ``(A) the total amount of funds available to the State 
     under this section during the program year prior to the 
     program year for which the determination is made (including 
     amounts allotted to the State in all prior program years that 
     remained available); and
       ``(B) the accrued expenditures during such prior program 
     year.'';
       (B) in paragraph (3)--
       (i) by striking ``for the prior program year'' and 
     inserting ``for the program year for which the determination 
     is made''; and
       (ii) by striking ``such prior program year'' and inserting 
     ``such program year'';
       (C) by striking paragraph (4) and inserting the following:
       ``(4) Eligibility.--For purposes of this subsection, an 
     eligible State means a State that does not have an amount 
     available for reallotment under paragraph (2) for the program 
     year for which the determination under paragraph (2) is 
     made.''; and
       (D) in paragraph (5), by striking ``obligation'' and 
     inserting ``accrued expenditure''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall take effect for the program year that begins after the 
     date of enactment of this Act.
       (c) Within State Allocations.--
       (1) Reservation for statewide activities.--Section 128(a) 
     (29 U.S.C. 2853(a)) is amended to read as follows:
       ``(a) Reservations for Statewide Activities.--
       ``(1) In general.--The Governor of a State shall reserve 
     not more than 15 percent of each of the amounts allotted to 
     the State under section 127(b)(1)(C) and paragraphs (1)(B) 
     and (2)(B) of section 132(b) for a fiscal year for statewide 
     workforce investment activities.
       ``(2) Use of funds.--Regardless of whether the reserved 
     amounts were allotted under section 127(b)(1)(C), or under 
     paragraph (1)(B) or (2)(B) of section 132(b), the Governor 
     may use the reserved amounts to carry out statewide 
     activities under section 129(b) or statewide employment and 
     training activities, for adults or dislocated workers, under 
     section 134(a).''.
       (2) Within state allocation.--Section 128(b) (29 U.S.C. 
     2853(b)) is amended to read as follows:
       ``(b) Within State Allocations.--
       ``(1) In general.--Of the amount allotted to the State 
     under section 127(b)(1)(C) and not reserved under subsection 
     (a)(1)--
       ``(A) a portion equal to not less than 80 percent of such 
     amount shall be allocated by the Governor to local areas in 
     accordance with paragraph (2); and
       ``(B) a portion equal to not more than 20 percent of such 
     amount may be allocated by the Governor to local areas in 
     accordance with paragraph (3).
       ``(2) Established formula.--

[[Page S5124]]

       ``(A) In general.--Of the portion described in paragraph 
     (1)(A), the Governor shall allocate--
       ``(i) 33\1/3\ percent on the basis of the relative number 
     of individuals in the civilian labor force who are ages 16 
     through 21 in each local area, compared to the total number 
     of individuals in the civilian labor force who are ages 16 
     through 21 in all local areas in the State;
       ``(ii) 33\1/3\ percent on the basis of the relative number 
     of unemployed individuals in each local area, compared to the 
     total number of unemployed individuals in all local areas in 
     the State; and
       ``(iii) 33\1/3\ percent on the basis of the relative number 
     of disadvantaged youth who are ages 16 through 21 in each 
     local area, compared to the total number of disadvantaged 
     youth who are ages 16 through 21 in all local areas in the 
     State.
       ``(B) Minimum and maximum percentages.--
       ``(i) Minimum percentage.--The Governor shall ensure that 
     no local area shall receive an allocation percentage under 
     this paragraph for a fiscal year that is less than 90 percent 
     of the allocation percentage of the local area for the 
     preceding fiscal year.
       ``(ii) Maximum percentage.--Subject to clause (i), the 
     Governor shall ensure that no local area shall receive an 
     allocation percentage under this paragraph for a fiscal year 
     that is more than 130 percent of the allocation percentage of 
     the local area for the preceding fiscal year.
       ``(C) Definitions.--In this paragraph:
       ``(i) Allocation percentage.--The term `allocation 
     percentage', used with respect to fiscal year 2006 or a 
     subsequent fiscal year, means a percentage of the portion 
     described in paragraph (1)(A) that is received by the local 
     area involved through an allocation made under this paragraph 
     for the fiscal year. The term, used with respect to fiscal 
     year 2005, means the percentage of the amounts allocated to 
     local areas under this chapter (as in effect on the day 
     before the date of enactment of the Workforce Investment Act 
     Amendments of 2005) that is received by the local area 
     involved for fiscal year 2005.
       ``(ii) Disadvantaged youth.--The term `disadvantaged youth' 
     means an individual who--

       ``(I) is age 16 through 21;
       ``(II) is not a college student or member of the Armed 
     Forces; and
       ``(III) received an income, or is a member of a family that 
     received a total family income, that, in relation to family 
     size, does not exceed the higher of--

       ``(aa) the poverty line; or
       ``(bb) 70 percent of the lower living standard income 
     level.
       ``(3) Youth discretionary allocation.--The Governor may 
     allocate the portion described in paragraph (1)(B) to local 
     areas where there are a significant number of eligible youth, 
     after consultation with the State board and local boards.
       ``(4) Local administrative cost limit.--
       ``(A) In general.--Of the amount allocated to a local area 
     under this subsection and section 133(b) for a fiscal year, 
     not more than 10 percent of the amount may be used by the 
     local board involved for the administrative costs of carrying 
     out local workforce investment activities under this chapter 
     or chapter 5.
       ``(B) Use of funds.--Funds made available for 
     administrative costs under subparagraph (A) may be used for 
     the administrative costs of any of the local workforce 
     investment activities described in this chapter or chapter 5, 
     regardless of whether the funds were allocated under this 
     subsection or section 133(b).''.
       (3) Reallocation.--
       (A) Amendment.--Section 128(c) (29 U.S.C. 2853(c)) is 
     amended--
       (i) in paragraph (1), by striking ``paragraph (2)(A) or (3) 
     of'';
       (ii) by striking paragraph (2) and inserting the following:
       ``(2) Amount.--The amount available for reallocation for a 
     program year is equal to the amount by which the unexpended 
     balance at the end of the program year prior to the program 
     year for which the determination is made exceeds 30 percent 
     of the total amount of funds available to the local area 
     under this section during such prior program year (including 
     amounts allocated to the local area in all prior program 
     years that remained available). For purposes of this 
     paragraph, the unexpended balance is the amount that is the 
     difference between--
       ``(A) the total amount of funds available to the local area 
     under this section during the program year prior to the 
     program year for which the determination is made (including 
     amounts allocated to the local area in all prior program 
     years that remained available); and
       ``(B) the accrued expenditures during such prior program 
     year.'';
       (iii) by amending paragraph (3)--

       (I) by striking ``subsection (b)(3)'' each place it appears 
     and inserting ``subsection (b)'';
       (II) by striking ``for the prior program year'' the first 
     place it appears and inserting ``for the program year for 
     which the determination is made'';
       (III) by striking ``such prior program year'' and inserting 
     ``such program year''; and
       (IV) by striking the last sentence; and

       (iv) by striking paragraph (4) and inserting the following:
       ``(4) Eligibility.--For purposes of this subsection, an 
     eligible local area means a local area that does not have an 
     amount available for reallocation under paragraph (2) for the 
     program year for which the determination under paragraph (2) 
     is made.''.
       (B) Effective date.--The amendments made by subparagraph 
     (A) shall take effect for the later of--
       (i) the program year that begins after the date of 
     enactment of this Act; or
       (ii) program year 2006.
       (d) Youth Participant Eligibility.--Section 129(a) (29 
     U.S.C. 2854(a)) is amended to read as follows:
       ``(a) Youth Participant Eligibility.--
       ``(1) Eligibility.--
       ``(A) In general.--To be eligible to participate in 
     activities carried out under this chapter during any program 
     year an individual shall, at the time the eligibility 
     determination is made, be an out-of-school youth or an in-
     school youth.
       ``(B) Out-of-school youth.--In this title the term `out-of-
     school youth' means an individual who is--
       ``(i) not younger than age 16 nor older than age 21; and
       ``(ii) one of the following:

       ``(I) A school dropout.
       ``(II) A youth who is within the age for compulsory school 
     attendance, but has not attended school for at least 1 school 
     year calendar quarter.
       ``(III) A recipient of a secondary school diploma or its 
     equivalent who is--

       ``(aa) deficient in basic skills, including limited English 
     proficiency;
       ``(bb) a low-income individual; and
       ``(cc) not attending any school.

       ``(IV) Subject to the juvenile or adult justice system or 
     ordered by a court to an alternative school.
       ``(V) A low-income individual who is pregnant or parenting 
     and not attending any school.

       ``(VI) A youth who is not attending school or a youth 
     attending an alternative school, who is homeless, a runaway, 
     a foster child, a child eligible for assistance under section 
     477 of the Social Security Act (42 U.S.C. 677), or in an out-
     of-home placement.
       ``(VII) A low-income individual who is not attending school 
     and requires additional assistance to enter or complete an 
     educational program or to secure or hold employment.

       ``(C) In-school youth.--In this section the term `in-school 
     youth' means an individual who is--
       ``(i) not younger than age 14 nor older than age 21;
       ``(ii) a low-income individual; and
       ``(iii) one or more of the following:

       ``(I) Deficient in basic literacy skills, including limited 
     English proficiency.
       ``(II) Homeless, a runaway, a foster child, a child 
     eligible for assistance under section 477 of the Social 
     Security Act (42 U.S.C. 677), or in an out-of-home placement.
       ``(III) Pregnant or parenting.
       ``(IV) An offender (other than an individual described in 
     subparagraph (B)(ii)(IV)).
       ``(V) An individual who requires additional assistance to 
     complete an educational program or to secure or hold 
     employment.

       ``(2) Exception.--Not more than 5 percent of the 
     individuals assisted under this section in each local area, 
     in the case of individuals for whom low income is a 
     requirement for eligibility under this section, may be 
     individuals who are not low income.
       ``(3) Limitations on activities for in-school youth.--
       ``(A) In general.--For any program year, not more than 60 
     percent of the funds available for statewide activities under 
     subsection (b), and not more than 60 percent of funds 
     available to local areas under subsection (c), may be used to 
     provide activities for in-school youth meeting the 
     requirements of paragraph (1)(B).
       ``(B) Exception.--A State that receives a minimum allotment 
     under section 127(b)(1) in accordance with section 
     127(b)(1)(C)(iv) or under section 132(b)(1) in accordance 
     with section 132(b)(1)(B)(iv)(II) may increase the percentage 
     described in subparagraph (A) for a local area in the State, 
     if--
       ``(i) after an analysis of the eligible youth population in 
     the local area, the State determines that the local area will 
     be unable to use at least 40 percent of the funds available 
     for activities under subsection (b) or (c) to serve out-of-
     school youth due to a low number of out-of-school youth; and
       ``(ii)(I) the State submits to the Secretary, for the local 
     area, a request including a proposed increased percentage for 
     purposes of subparagraph (A), and the summary of the eligible 
     youth population analysis; and
       ``(II) the request is approved by the Secretary.
       ``(4) Consistency with compulsory school attendance laws.--
     In providing assistance under this section to an individual 
     who is required to attend school under applicable State 
     compulsory school attendance laws, the priority in providing 
     such assistance shall be for the individual to attend school 
     regularly.''.
       (e) Statewide Activities.--Section 129(b) (29 U.S.C. 
     2854(b)) is amended to read as follows:
       ``(b) Statewide Activities.--
       ``(1) In general.--Funds reserved by a Governor for a State 
     as described in sections 128(a) and 133(a)(1) shall be used, 
     regardless of whether the funds were allotted to the State 
     under section 127(b)(1)(C) or under paragraph (1)(B) or 
     (2)(B) of section 132(b) for statewide activities, which may 
     include--
       ``(A) conducting--
       ``(i) evaluations under section 136(e) of activities 
     authorized under this chapter and

[[Page S5125]]

     chapter 5 in coordination with evaluations carried out by the 
     Secretary under section 172;
       ``(ii) research; and
       ``(iii) demonstration projects;
       ``(B) providing incentive grants to local areas for 
     regional cooperation among local boards (including local 
     boards in a designated region as described in section 
     116(c)), for local coordination of activities carried out 
     under this title, and for performance by local areas as 
     described in section 136(i)(2);
       ``(C) providing technical assistance and capacity building 
     activities to local areas, one-stop operators, one-stop 
     partners, and eligible providers, including the development 
     and training of staff, the development of exemplary program 
     activities, the provision of technical assistance to local 
     areas that fail to meet local performance measures described 
     in section 136(c), and the provision of technology to 
     facilitate remote access to services provided through the 
     one-stop delivery system in the State;
       ``(D) operating a fiscal and management accountability 
     information system under section 136(f);
       ``(E) carrying out monitoring and oversight of activities 
     carried out under this chapter and chapter 5, which may 
     include a review comparing the services provided to male and 
     female youth;
       ``(F) providing additional assistance to local areas that 
     have high concentrations of eligible youth;
       ``(G) supporting the development of alternative programs 
     and other activities that enhance the choices available to 
     eligible youth and encourage such youth to reenter secondary 
     education, enroll in postsecondary education and advanced 
     training, and obtain career path employment;
       ``(H) supporting the provision of core services described 
     in section 134(d)(2) in the one-stop delivery system in the 
     State; and
       ``(I) supporting financial literacy, including--
       ``(i) supporting the ability to create household budgets, 
     initiate savings plans, and make strategic investment 
     decisions for education, retirement, home ownership, wealth 
     building, or other savings goals;
       ``(ii) supporting the ability to manage spending, credit, 
     and debt, including credit card debt, effectively;
       ``(iii) increasing awareness of the availability and 
     significance of credit reports and credit scores in obtaining 
     credit, the importance of their accuracy (and how to correct 
     inaccuracies), their effect on credit terms, and the effect 
     common financial decisions may have on credit scores;
       ``(iv) supporting the ability to ascertain fair and 
     favorable credit terms;
       ``(v) supporting the ability to avoid abusive, predatory, 
     or deceptive credit offers and financial products;
       ``(vi) supporting the ability to understand, evaluate, and 
     compare financial products, services, and opportunities;
       ``(vii) supporting the ability to understand resources that 
     are easily accessible and affordable, and that inform and 
     educate an investor as to the investor's rights and avenues 
     of recourse when the investor believes the investor's rights 
     have been violated by unprofessional conduct of market 
     intermediaries;
       ``(viii) increasing awareness of the particular financial 
     needs and financial transactions (such as the sending of 
     remittances) of consumers who are targeted in multilingual 
     financial literacy and education programs and improving the 
     development and distribution of multilingual financial 
     literacy and education materials;
       ``(ix) promoting bringing individuals who lack basic 
     banking services into the financial mainstream by opening and 
     maintaining accounts with financial institutions; and
       ``(x) improving financial literacy and education through 
     all other related skills, including personal finance and 
     related economic education, with the primary goal of programs 
     not simply to improve knowledge, but rather to improve 
     consumers' financial choices and outcomes.
       ``(2) Limitation.--Not more than 5 percent of the funds 
     allotted to a State under section 127(b)(1)(C) shall be used 
     by the State for administrative activities carried out under 
     this subsection or section 134(a).
       ``(3) Prohibition.--No funds described in this subsection 
     may be used to develop or implement education curricula for 
     school systems in the State.''.
       (f) Local Elements and Requirements.--
       (1) Program design.--Section 129(c)(1) (29 U.S.C. 
     2854(c)(1)) is amended--
       (A) in the matter that precedes subparagraph (A), by 
     striking ``paragraph (2)(A) or (3), as appropriate, of'';
       (B) in subparagraph (B), by inserting ``are directly linked 
     to 1 or more of the performance measures relating to this 
     chapter under section 136, and that'' after ``for each 
     participant that''; and
       (C) in subparagraph (C)--
       (i) by redesignating clauses (i) through (iv) as clauses 
     (ii) through (v), respectively;
       (ii) by inserting before clause (ii) (as redesignated by 
     clause (i)) the following:
       ``(i) activities leading to the attainment of a secondary 
     school diploma or its equivalent, or another recognized 
     credential;'';
       (iii) in clause (ii) (as redesignated by clause (i)), by 
     inserting ``and advanced training'' after ``opportunities'';
       (iv) in clause (iii) (as redesignated by clause (i))--

       (I) by inserting ``instruction based on State academic 
     content and student academic achievement standards 
     established under section 1111 of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 6311)'' after 
     ``academic''; and
       (II) by inserting ``that lead to the attainment of 
     recognized credentials'' after ``learning''; and

       (v) by striking clause (v) (as redesignated by clause (i)) 
     and inserting the following:
       ``(v) effective connections to all employers, including 
     small employers, in sectors of the local and regional labor 
     markets that are experiencing high growth in employment 
     opportunities.''.
       (2) Program elements.--Section 129(c)(2) (29 U.S.C. 
     2854(c)(2)) is amended--
       (A) in subparagraph (A), by striking ``secondary school, 
     including dropout prevention strategies'' and inserting ``the 
     requirements for a secondary school diploma or its recognized 
     equivalent (including recognized alternative standards for 
     individuals with disabilities) or for another recognized 
     credential, including dropout prevention strategies'';
       (B) in subparagraph (B), by inserting ``, with a priority 
     on exposing youth to technology and nontraditional jobs'' 
     before the semicolon;
       (C) in subparagraph (F), by striking ``during nonschool 
     hours'';
       (D) in subparagraph (I), by striking ``and'' at the end;
       (E) in subparagraph (J), by striking the period at the end 
     and inserting a semicolon; and
       (F) by adding at the end the following:
       ``(K) on-the-job training opportunities;
       ``(L) opportunities to acquire financial literacy skills;
       ``(M) entrepreneurial skills training and microenterprise 
     services; and
       ``(N) information about average wages for a range of jobs 
     available in the local area, including technology jobs.''.
       (3) Additional requirements.--Section 129(c)(3)(A) (29 
     U.S.C. 2854(c)(3)(A)) is amended in the matter preceding 
     clause (i) by striking ``or applicant who meets the minimum 
     income criteria to be considered an eligible youth''.
       (4) Priority and exceptions.--Section 129(c) (29 U.S.C. 
     2854(c)) is amended by striking paragraphs (4) and (5).
       (5) Prohibitions and linkages.--Section 129(c) (29 U.S.C. 
     2854(c)), as amended by paragraph (4), is further amended--
       (A) by redesignating paragraphs (6), (7), and (8) as 
     paragraphs (4), (5), and (6), respectively;
       (B) in paragraph (4) (as redesignated by subparagraph 
     (A))--
       (i) by striking subparagraph (B); and
       (ii) by redesignating subparagraph (C) as subparagraph (B); 
     and
       (C) in paragraph (5) (as redesignated by subparagraph (A)), 
     by striking ``youth councils'' and inserting ``local 
     boards''.

     SEC. 121. ADULT AND DISLOCATED WORKER EMPLOYMENT AND TRAINING 
                   ACTIVITIES.

       (a) State Allotments.--
       (1) Reservations.--Section 132(a)(2)(A) (29 U.S.C. 2862 
     (a)(2)(A)) is amended by striking ``national emergency 
     grants, other than under subsection (a)(4), (f), and (g)'' 
     and inserting ``national dislocated worker grants, other than 
     under paragraph (4) or (5) of subsection (a), subsection (e), 
     and subsection (f)''.
       (2) Allotment among states.--Section 132(b) (29 U.S.C. 
     2862(b)) is amended--
       (A) in paragraph (1)(A)(ii), by striking ``section 
     127(b)(1)(B),'' and all that follows and inserting ``section 
     127(b)(1)(B).'';
       (B) by striking paragraph (1)(B)(ii) and inserting the 
     following:
       ``(ii) Formula.--Subject to clauses (iii) and (iv), of the 
     remainder--

       ``(I) 40 percent shall be allotted on the basis of the 
     relative number of unemployed individuals in areas of 
     substantial unemployment in each State, compared to the total 
     number of unemployed individuals in areas of substantial 
     unemployment in all States;
       ``(II) 25 percent shall be allotted on the basis of the 
     relative number of individuals in the civilian labor force in 
     each State, compared to the total number of such individuals 
     in all States; and
       ``(III) 35 percent shall be allotted on the basis of the 
     relative number of disadvantaged adults in each State, 
     compared to the total number of disadvantaged adults in all 
     States, except as described in clause (iii).'';

       (C) in paragraph (1)(B)--
       (i) in clause (iii), by striking ``section 116(a)(2)(B)'' 
     and inserting ``section 116(a)(2)(A)(iii)'';
       (ii) in clause (iv)--

       (I) in subclause (I)--

       (aa) by striking ``Subject to subclause (IV), the'' and 
     inserting ``The''; and
       (bb) by striking ``than the greater of'' and all that 
     follows and inserting ``than an amount based on 90 percent of 
     the allotment percentage of the State for the preceding 
     fiscal year.'';

       (II) in subclause (II), by striking ``subclauses (I), 
     (III), and (IV)'' and inserting ``subclauses (I) and (III)''; 
     and
       (III) by striking subclause (IV); and

       (iii) in clause (v), by striking subclause (VI); and
       (D) in paragraph (2)(A)(ii), by striking ``section 
     127(b)(1)(B)'' and all that follows and inserting ``section 
     127(b)(1)(B).''.
       (3) Reallotment.--Section 132(c) (29 U.S.C. 2862(c)) is 
     amended--
       (A) by striking paragraph (2) and inserting the following:
       ``(2) Amount.--The amount available for reallotment for a 
     program year for programs

[[Page S5126]]

     funded under subsection (b)(1)(B) (relating to adult 
     employment and training) and subsection (b)(2)(B) (relating 
     to dislocated worker employment and training), respectively, 
     is equal to the amount by which the unexpended balance at the 
     end of the program year prior to the program year for which 
     the determination is made exceeds 30 percent of the total 
     amount of funds available to the State under subsection 
     (b)(1)(B) or (b)(2)(B), respectively, during such prior 
     program year (including amounts allotted to the State in all 
     prior program years under such provisions that remained 
     available). For purposes of this paragraph, the unexpended 
     balance is the amount that is the difference between--
       ``(A) the total amount of funds available to the State 
     under subsection (b)(1)(B) or (b)(2)(B), respectively, during 
     the program year prior to the program year for which the 
     determination is made (including amounts allotted to the 
     State in all prior program years under such provisions that 
     remained available); and
       ``(B) the accrued expenditures from such total amount of 
     funds available under subsection (b)(1)(B) or (b)(2)(B), 
     respectively, during such prior program year.'';
       (B) in paragraph (3)--
       (i) by striking ``under this section for such activities 
     for the prior program year'' and inserting ``under subsection 
     (b)(1)(B) or (b)(2)(B), as appropriate, for the program year 
     for which the determination is made''; and
       (ii) by striking ``under this section for such activities 
     for such prior program year'' and inserting ``under 
     subsection (b)(1)(B) or (b)(2)(B), as appropriate, for such 
     program year'';
       (C) by striking paragraph (4) and inserting the following:
       ``(4) Eligibility.--For purposes of this subsection, an 
     eligible State means--
       ``(A) with respect to funds allotted under subsection 
     (b)(1)(B), a State that does not have an amount of such funds 
     available for reallotment under paragraph (2) for the program 
     year for which the determination under paragraph (2) is made; 
     and
       ``(B) with respect to funds allotted under subsection 
     (b)(2)(B), a State that does not have an amount of such funds 
     available for reallotment under paragraph (2) for the program 
     year for which the determination under paragraph (2) is 
     made.''; and
       (D) in paragraph (5), by striking ``obligation'' and 
     inserting ``accrued expenditure''.
       (4) Effective date.--The amendments made by paragraph (3) 
     shall take effect for the later of--
       (A) the program year that begins after the date of 
     enactment of this Act; or
       (B) program year 2006.
       (b) Within State Allocations.--
       (1) Allocation.--Section 133(b)(2)(A)(i) (29 U.S.C. 
     2863(b)(2)(A)(i)) is amended--
       (A) in subclause (I), by striking ``33\1/3\ percent'' and 
     inserting ``40 percent'';
       (B) in subclause (II), by striking ``33\1/3\ percent'' and 
     inserting ``25 percent''; and
       (C) in subclause (III), by striking ``33\1/3\ percent'' and 
     inserting ``35 percent''.
       (2) Transfer authority.--Section 133(b)(4) (29 U.S.C. 
     2863(b)(4)) is amended by striking ``20 percent'' each place 
     it appears and inserting ``45 percent''.
       (3) Requirements.--Clauses (i) and (ii) of section 
     133(b)(5)(B) (29 U.S.C. 2863(b)(5)(B)) are amended by 
     striking ``section 134(c)'' and inserting ``section 121(e)''.
       (4) Reallocation.--Section 133(c) (29 U.S.C. 2863(c)) is 
     amended--
       (A) in paragraph (1), by inserting ``, and under subsection 
     (b)(2)(B) for dislocated worker employment and training 
     activities,'' after ``activities'';
       (B) by striking paragraph (2) and inserting the following:
       ``(2) Amount.--The amount available for reallocation for a 
     program year for programs funded under paragraphs (2)(A) and 
     (3) of subsection (b) (relating to adult employment and 
     training) and subsection (b)(2)(B) (relating to dislocated 
     worker employment and training), respectively, is equal to 
     the amount by which the unexpended balance at the end of the 
     program year prior to the program year for which the 
     determination is made exceeds 30 percent of the total amount 
     of funds available to the local area under paragraphs (2)(A) 
     and (3) of subsection (b), or subsection (b)(2)(B), 
     respectively, during such prior program year (including 
     amounts allocated to the local area in all prior program 
     years under such provisions that remained available). For 
     purposes of this paragraph, the unexpended balance is the 
     amount that is the difference between--
       ``(A) the total amount of funds available to the local area 
     under paragraphs (2)(A) and (3) of subsection (b), or 
     subsection (b)(2)(B), respectively, during the program year 
     prior to the program year for which the determination is made 
     (including amounts allotted to the local area in all prior 
     program years under such provisions that remained available); 
     and
       ``(B) the accrued expenditures from such total amount of 
     funds available under paragraphs (2)(A) and (3) of subsection 
     (b), or subsection (b)(2)(B), respectively, during such prior 
     program year.'';
       (C) by striking paragraph (3) and inserting the following:
       ``(3) Reallocation.--In making reallocations to eligible 
     local areas of amounts available pursuant to paragraph (2) 
     for a program year, the Governor shall allocate to each 
     eligible local area within the State--
       ``(A) with respect to amounts that are available for 
     reallocation under paragraph (2) that were allocated under 
     paragraphs (2)(A) or (3) of subsection (b), an amount based 
     on the relative amount allocated to such local area under 
     paragraphs (2)(A) or (3) of subsection (b), as appropriate, 
     for the program year for which the determination is made, as 
     compared to the total amount allocated to all eligible local 
     areas under paragraphs (2)(A) or (3) of subsection (b), as 
     appropriate, for such program year; and
       ``(B) with respect to amounts that are available for 
     reallocation under paragraph (2) that were allocated under 
     subsection (b)(2)(B), an amount based on the relative amount 
     allocated to such local area under subsection (b)(2)(B) for 
     the program year for which the determination is made, as 
     compared to the total amount allocated to all eligible local 
     areas under subsection (b)(2)(B) for such program year.''; 
     and
       (D) by striking paragraph (4) and inserting the following:
       ``(4) Eligibility.--For purposes of this subsection, an 
     eligible local area means--
       ``(A) with respect to funds allocated under paragraphs 
     (2)(A) or (3) of subsection (b), a local area that does not 
     have an amount of such funds available for reallocation under 
     paragraph (2) for the program year for which the 
     determination under paragraph (2) is made; and
       ``(B) with respect to funds allocated under subsection 
     (b)(2)(B), a local area that does not have an amount of such 
     funds available for reallocation under paragraph (2) for the 
     program year for which the determination under paragraph (2) 
     is made.''.
       (5) Effective date.--The amendments made by paragraph (3) 
     shall take effect for the later of--
       (A) the program year that begins after the date of 
     enactment of this Act; or
       (B) program year 2006.
       (c) Use of Funds for Employment and Training Activities.--
       (1) Statewide employment and training activities.--
       (A) Statewide rapid response activities.--Section 
     134(a)(2)(A) (29 U.S.C. 2864(a)(2)(A)) is amended to read as 
     follows:
       ``(A) Statewide rapid response activities.--
       ``(i) In general.--A State shall carry out statewide rapid 
     response activities using funds reserved by a Governor for a 
     State under section 133(a)(2). Such activities shall 
     include--

       ``(I) provision of rapid response activities, carried out 
     in local areas by the State or by an entity designated by the 
     State, working in conjunction with the local boards and the 
     chief elected officials for the local areas; and
       ``(II) provision of additional assistance to local areas 
     that experience disasters, mass layoffs, or plant closings, 
     or other events that precipitate substantial increases in the 
     number of unemployed individuals, carried out in local areas 
     by the State, working in conjunction with the local boards 
     and the chief elected officials for the local areas.

       ``(ii) Use of unexpended funds.--Funds reserved under 
     section 133(a)(2) to carry out this subparagraph that remain 
     unexpended after the first program year for which such funds 
     were allotted may be used by the Governor to carry out 
     statewide activities authorized under subparagraph (B) and 
     paragraph (3)(A) in addition to activities under this 
     subparagraph.''.
       (B) Statewide employment and training activities.--Section 
     134(a)(2) (29 U.S.C. 2864(a)(2)) is amended by striking 
     subparagraph (B) and inserting the following:
       ``(B) Statewide employment and training activities.--Funds 
     reserved by a Governor for a State under sections 128(a)(1) 
     and 133(a)(1) and not used under paragraph (1)(A) (regardless 
     of whether the funds were allotted to the States under 
     section 127(b)(1)(C) or paragraphs (1)(B) or (2)(B) of 
     section 132(b)) shall be used for statewide employment and 
     training activities, including--
       ``(i) disseminating--

       ``(I) the State list of eligible providers of training 
     services, including eligible providers of nontraditional 
     training services and eligible providers of apprenticeship 
     programs described in section 122(a)(2)(B);
       ``(II) information identifying eligible providers of on-
     the-job training, customized training, and incumbent worker 
     training;
       ``(III) information on effective business outreach, 
     partnerships, and services;
       ``(IV) performance information and information on costs of 
     attendance, as described in subsections (d) and (i) of 
     section 122; and
       ``(V) information on physical and programmatic 
     accessibility for individuals with disabilities;

       ``(ii) conducting evaluations under section 136(e) of 
     activities authorized under this chapter and chapter 5 in 
     coordination with evaluations carried out by the Secretary 
     under section 172;
       ``(iii) providing incentive grants to local areas, in 
     accordance with section 136(i);
       ``(iv) developing strategies for ensuring that activities 
     carried out under this section are placing men and women in 
     jobs, education, and training that lead to comparable pay;
       ``(v) providing technical assistance and capacity building 
     to local areas, one-stop operators, one-stop partners, and 
     eligible providers, including the development and training of 
     staff, the development of exemplary program activities, and 
     the provision of technical assistance to local areas that 
     fail to meet local performance measures described in section 
     136(c), which may include

[[Page S5127]]

     the development and training of staff to provide 
     opportunities for hard-to-serve populations to enter high-
     wage, high-skilled, and nontraditional occupations;
       ``(vi) operating a fiscal and management accountability 
     system under section 136(f); and
       ``(vii) carrying out monitoring and oversight of activities 
     carried out under this chapter and chapter 4.''.
       (C) Allowable statewide employment and training 
     activities.--Section 134(a)(3)(A) (29 U.S.C. 2864(a)(3)(A) is 
     amended to read as follows:
       ``(A) In general.--Funds reserved by a Governor for a State 
     under sections 128(a)(1) and 133(a)(1) and not used under 
     paragraph (1)(A) or (2)(B) (regardless of whether the funds 
     were allotted to the State under section 127(b)(1)(C) or 
     paragraph (1)(B) or (2)(B) of section 132(b)) may be used to 
     carry out additional statewide employment and training 
     activities, which may include--
       ``(i) implementing innovative programs and strategies 
     designed to meet the needs of all businesses in the State, 
     including small businesses, which may include incumbent 
     worker training programs, sectoral and industry cluster 
     strategies and partnerships, including regional skills 
     alliances, career ladder programs, micro-enterprise and 
     entrepreneurial training and support programs, utilization of 
     effective business intermediaries, activities to improve 
     linkages between the one-stop delivery 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;
       ``(ii) developing strategies for effectively serving hard-
     to-serve populations and for coordinating programs and 
     services among one-stop partners;
       ``(iii) implementing innovative programs for displaced 
     homemakers, which for purposes of this clause may include an 
     individual who is receiving public assistance and is within 2 
     years of exhausting lifetime eligibility under part A of 
     title IV of the Social Security Act (42 U.S.C. 601 et seq.);
       ``(iv) implementing programs to increase the number of 
     individuals training for and placed in nontraditional 
     employment;
       ``(v) carrying out activities to facilitate remote access 
     to services, including training services described in 
     subsection (d)(4), provided through a one-stop delivery 
     system, including facilitating access through the use of 
     technology;
       ``(vi) supporting the provision of core services described 
     in subsection (d)(2) in the one-stop delivery system in the 
     State;
       ``(vii) coordinating with the child welfare system to 
     facilitate services for children in foster care and those who 
     are eligible for assistance under section 477 of the Social 
     Security Act (42 U.S.C. 677);
       ``(viii) activities--

       ``(I) to improve coordination between workforce investment 
     activities carried out within the State involved and economic 
     development activities, and to promote entrepreneurial skills 
     training and microenterprise services;
       ``(II) to improve coordination between employment and 
     training assistance, child support services, and assistance 
     provided by State and local agencies carrying out part D of 
     title IV of the Social Security Act (42 U.S.C. 651 et seq.);
       ``(III) to improve coordination between employment and 
     training assistance and cooperative extension programs 
     carried out by the Department of Agriculture;
       ``(IV) to improve coordination between employment and 
     training assistance and programs carried out in the local 
     area for individuals with disabilities, including programs 
     carried out by State agencies relating to mental retardation 
     and developmental disabilities, Statewide Independent Living 
     Councils established under section 705 of the Rehabilitation 
     Act of 1973 (29 U.S.C. 796d), and centers for independent 
     living defined in section 702 of the Rehabilitation Act of 
     1973 (29 U.S.C. 796a);
       ``(V) to develop and disseminate workforce and labor market 
     information;
       ``(VI) to improve coordination with the corrections system 
     to facilitate provision of training services and employment 
     opportunities that will assist ex-offenders in reentering the 
     workforce; and
       ``(VII) to promote financial literacy, including carrying 
     out activities described in section 129(b)(1)(I);

       ``(ix) conducting--

       ``(I) research; and
       ``(II) demonstration projects; and

       ``(x) adopting, calculating, or commissioning a minimum 
     self-sufficiency standard that specifies the income needs of 
     families, by family size, the number and ages of children in 
     the family, and sub-State geographical considerations.''.
       (2) Required local employment and training activities.--
       (A) Allocated funds.--Section 134(d)(1)(A) (29 U.S.C. 
     2864(d)(1)(A)) is amended--
       (i) in clause (i), by striking ``described in subsection 
     (c)'';
       (ii) in clause (iii), by striking ``and'' at the end;
       (iii) in clause (iv), by striking the period and inserting 
     a semicolon; and
       (iv) by adding at the end the following:
       ``(v) to designate a dedicated business liaison in the 
     local area who may be funded with funds provided under this 
     title or from other sources to establish and develop 
     relationships and networks with large and small employers and 
     their intermediaries; and
       ``(vi) in order to improve service delivery to avoid 
     duplication of services and enhance coordination of services, 
     to require the colocation of employment services provided 
     under the Wagner-Peyser Act (29 U.S.C. 49 et seq.) at the 
     one-stop centers.''.
       (B) Core services.--Section 134(d)(2) (29 U.S.C. 
     2864(d)(2)) is amended--
       (i) in the matter preceding subparagraph (A), by striking 
     ``paragraph (1)(A)'' and inserting ``paragraph (1)'';
       (ii) in subparagraph (C), by inserting ``(including 
     literacy, numeracy, and English language proficiency)'' after 
     ``skill levels'';
       (iii) by striking subparagraph (D) and inserting the 
     following:
       ``(D) labor exchange services, including--
       ``(i) job search and placement assistance and, in 
     appropriate cases, career counseling, including--

       ``(I) exposure to high wage, high skill jobs; and
       ``(II) nontraditional employment; and

       ``(ii) appropriate recruitment and other business services 
     for all employers, including small employers, in the local 
     area, which may include services described in this 
     subsection, including information and referral to specialized 
     business services not traditionally offered through the one-
     stop delivery system;'';
       (iv) in subparagraph (E)(iii)--

       (I) by inserting ``, career ladders,'' after ``earnings''; 
     and
       (II) by striking ``and'' at the end;

       (v) in subparagraph (F)--

       (I) by striking ``and program cost information''; and
       (II) by striking ``described in section 123'';

       (vi) by striking subparagraph (H) and inserting the 
     following:
       ``(H) provision of accurate information, in formats that 
     are usable and understandable to all one-stop center 
     customers, relating to the availability of supportive 
     services or assistance, including child care, child support, 
     medical or child health assistance under title XIX or XXI of 
     the Social Security Act (42 U.S.C. 1396 et seq. and 1397aa et 
     seq.), benefits under the Food Stamp Act of 1977 (7 U.S.C. 
     2011 et seq.), the earned income tax credit under section 32 
     of the Internal Revenue Code of 1986, and assistance under a 
     State program funded under part A of title IV of the Social 
     Security Act (42 U.S.C. 601 et seq.) and other supportive 
     services and transportation provided through funds made 
     available under such part, available in the local area, and 
     referral to such services or assistance as appropriate;''; 
     and
       (vii) in subparagraph (J), by striking 
     ``for--'' and all that follows through ``(ii) programs'' and 
     inserting ``for programs''.
       (C) Intensive services.--Section 134(d)(3) (29 U.S.C. 
     2864(d)(3)) is amended--
       (i) by striking subparagraph (A) and inserting the 
     following:
       ``(A) In general.--
       ``(i) Eligibility.--Except as provided in clause (ii), 
     funds allocated to a local area for adults under paragraph 
     (2)(A) or (3), as appropriate, of section 133(b), and funds 
     allocated to the local area for dislocated workers under 
     section 133(b)(2)(B), shall be used to provide intensive 
     services to adults and dislocated workers, respectively--

       ``(I) who are unemployed and who, after an interview, 
     evaluation, or assessment, have been determined by a one-stop 
     operator or one-stop partner to be--

       ``(aa) unlikely or unable to obtain employment, that leads 
     to self-sufficiency or wages comparable to or higher than 
     previous employment, through core services described in 
     paragraph (2); and
       ``(bb) in need of intensive services to obtain employment 
     that leads to self-sufficiency or wages comparable to or 
     higher than previous employment; or

       ``(II) who are employed, but who, after an interview, 
     evaluation, or assessment are determined by a one-stop 
     operator or one-stop partner to be in need of intensive 
     services to obtain or retain employment that leads to self-
     sufficiency.

       ``(ii) Special rule.--A new interview, evaluation, or 
     assessment of a participant is not required under clause (i) 
     if the one-stop operator or one-stop partner determines that 
     it is appropriate to use a recent assessment of the 
     participant conducted pursuant to another education or 
     training program.''; and
       (ii) in subparagraph (C)--

       (I) in clause (v), by striking ``for participants seeking 
     training services under paragraph (4)''; and
       (II) by adding at the end the following:

       ``(vii) Internships and work experience.
       ``(viii) Literacy activities relating to basic work 
     readiness.
       ``(ix) Financial literacy services, such as activities 
     described in section 129(b)(1)(I).
       ``(x) Out-of-area job search assistance and relocation 
     assistance.
       ``(xi) English language acquisition and integrated training 
     programs.''.
       (D) Training services.--Section 134(d)(4) (29 U.S.C. 
     2864(d)(4)) is amended--
       (i) by striking subparagraph (A) and inserting the 
     following:
       ``(A) In general.--
       ``(i) Eligibility.--Except as provided in clause (ii), 
     funds allocated to a local area for adults under paragraph 
     (2)(A) or (3), as appropriate, of section 133(b), and funds 
     allocated to the local area for dislocated workers under 
     section 133(b)(2)(B), shall be used to

[[Page S5128]]

     provide training services to adults and dislocated workers, 
     respectively--

       ``(I) who, after an interview, evaluation, or assessment, 
     and case management, have been determined by a one-stop 
     operator or one-stop partner, as appropriate, to--

       ``(aa) be unlikely or unable to obtain or retain 
     employment, that leads to self-sufficiency or wages 
     comparable to or higher than previous employment, through the 
     intensive services described in paragraph (3);
       ``(bb) be in need of training services to obtain or retain 
     employment that leads to self-sufficiency or wages comparable 
     to or higher than previous employment; and
       ``(cc) have the skills and qualifications to successfully 
     participate in the selected program of training services;

       ``(II) who select programs of training services that are 
     directly linked to the employment opportunities in the local 
     area or region involved or in another area to which the 
     adults or dislocated workers are willing to commute or 
     relocate;
       ``(III) who meet the requirements of subparagraph (B); and
       ``(IV) who are determined to be eligible in accordance with 
     the priority system in effect under subparagraph (E).

       ``(ii) Special rule.--A new interview, evaluation, or 
     assessment of a participant is not required under clause (i) 
     if the one-stop operator or one-stop partner determines that 
     it is appropriate to use a recent assessment of the 
     participant conducted pursuant to another education or 
     training program.'';
       (ii) in subparagraph (B)(i), by striking ``Except'' and 
     inserting ``Notwithstanding section 479B of the Higher 
     Education Act of 1965 (20 U.S.C. 1087uu) and except'';
       (iii) in subparagraph (D)--

       (I) in clause (viii), by striking ``and'' after the 
     semicolon;
       (II) in clause (ix), by striking the period and inserting 
     ``; and''; and
       (III) by adding at the end the following:

       ``(x) English language acquisition and integrated training 
     programs.'';
       (iv) in subparagraph (F)--

       (I) in clause (ii), by striking ``referred to in subsection 
     (c), shall make available--'' and all that follows and 
     inserting ``shall make available a list of eligible providers 
     of training services, and accompanying information, in 
     accordance with section 122(d).'';
       (II) in the heading of clause (iii), by striking 
     ``Individual training accounts'' and inserting ``Career 
     scholarship accounts'';
       (III) in clause (iii)--

       (aa) by striking ``identifying information'' and inserting 
     ``accompanying information'';
       (bb) by striking ``clause (ii)(I)'' and inserting ``clause 
     (ii)''; and
       (cc) by striking ``an individual training account'' and 
     inserting ``a career scholarship account''; and

       (IV) by adding at the end the following:

       ``(iv) Coordination.--Each local board may, through one-
     stop centers, coordinate career scholarship accounts with 
     other Federal, State, local, or private job training programs 
     or sources to assist the individual in obtaining training 
     services.''; and
       (v) in subparagraph (G)--

       (I) in the subparagraph heading, by striking ``individual 
     training accounts'' and inserting ``career scholarship 
     accounts'';
       (II) in clause (i), by striking ``individual training 
     accounts'' and inserting ``career scholarship accounts'';
       (III) in clause (ii)--

       (aa) by striking ``an individual training account'' and 
     inserting ``a career scholarship account'';
       (bb) in subclause (II), by striking ``individual training 
     accounts'' and inserting ``career scholarship accounts'';
       (cc) in subclause (II) by striking ``or'' after the 
     semicolon;
       (dd) in subclause (III), by striking ``special participant 
     populations that face multiple barriers to employment'' and 
     inserting ``hard-to-serve populations'';
       (ee) in subclause (III), by striking the period and 
     inserting '``; or''; and
       (ff) by adding at the end the following:

       ``(IV) the local board determines that it would be most 
     appropriate to award a contract to an institution of higher 
     education in order to facilitate the training of multiple 
     individuals in high-demand occupations, if such contract does 
     not limit customer choice.''; and
       (IV) in clause (iv)--

       (aa) by redesignating subclause (IV) as subclause (V); and
       (bb) by inserting after subclause (III) the following:

       ``(IV) Individuals with disabilities.''.

       (3) Permissible activities.--Section 134(e) (29 U.S.C. 
     2864(e)) is amended--
       (A) by striking the matter preceding paragraph (2) and 
     inserting the following:
       ``(e) Permissible Local Employment and Training 
     Activities.--
       ``(1) In general.--
       ``(A) Activities.--Funds allocated to a local area for 
     adults under paragraph (2)(A) or (3), as appropriate, of 
     section 133(b), and funds allocated to the local area for 
     dislocated workers under section 133(b)(2)(B), may be used to 
     provide, through the one-stop delivery system involved--
       ``(i) customized screening and referral of qualified 
     participants in training services described in subsection 
     (d)(4) to employment;
       ``(ii) customized employment-related services to employers 
     on a fee-for-service basis;
       ``(iii) customer support to enable members of hard-to-serve 
     populations, including individuals with disabilities, to 
     navigate among multiple services and activities for such 
     populations;
       ``(iv) technical assistance and capacity building for 
     serving individuals with disabilities in local areas, for 
     one-stop operators, one-stop partners, and eligible 
     providers, including the development and training of staff, 
     the provision of outreach, intake, assessments, and service 
     delivery, and the development of performance measures;
       ``(v) employment and training assistance provided in 
     coordination with child support enforcement activities of the 
     State and local agencies carrying out part D of title IV of 
     the Social Security Act (42 U.S.C. 651 et seq.);
       ``(vi) activities to improve coordination between 
     employment and training assistance, child support services, 
     and assistance provided by State and local agencies carrying 
     out part D of title IV of the Social Security Act (42 U.S.C. 
     651 et seq.);
       ``(vii) activities to improve coordination between 
     employment and training assistance and cooperative extension 
     programs carried out by the Department of Agriculture;
       ``(viii) activities to facilitate remote access to services 
     provided through a one-stop delivery system, including 
     facilitating access through the use of technology;
       ``(ix) activities--

       ``(I) to improve coordination between workforce investment 
     activities carried out within the local area involved and 
     economic development activities, and to promote 
     entrepreneurial skills training and microenterprise services; 
     and
       ``(II) to improve services and linkages between the local 
     workforce investment system including the local one-stop 
     delivery system, and all employers, including small employers 
     in the local area, through services described in this 
     section, including subparagraph (B);

       ``(x) training programs for displaced homemakers and for 
     individuals training for nontraditional occupations, in 
     conjunction with programs operated in the local area;
       ``(xi) using a portion of the funds allocated under section 
     133(b), activities to carry out business services and 
     strategies that meet the workforce investment needs of local 
     area employers, as determined by the local board, consistent 
     with the local plan under section 118, which services--

       ``(I) may be provided through effective business 
     intermediaries working in conjunction with the local board, 
     and may also be provided on a fee-for-service basis or 
     through the leveraging of economic development and other 
     resources as determined appropriate by the local board; and
       ``(II) may include--

       ``(aa) identifying and disseminating to business, 
     educators, and job seekers, information related to the 
     workforce, economic and community development needs, and 
     opportunities of the local economy;
       ``(bb) development and delivery of innovative workforce 
     investment services and strategies for area businesses, which 
     may include sectoral, industry cluster, regional skills 
     alliances, career ladder, skills upgrading, skill standard 
     development and certification, apprenticeship, and other 
     effective initiatives for meeting the workforce investment 
     needs of area employers and workers;
       ``(cc) participation in seminars and classes offered in 
     partnership with relevant organizations focusing on the 
     workforce-related needs of area employers and job seekers;
       ``(dd) training consulting, needs analysis, and brokering 
     services for area businesses, including the organization and 
     aggregation of training (which may be paid for with funds 
     other than those provided under this title), for individual 
     employers and coalitions of employers with similar interests, 
     products, or workforce needs;
       ``(ee) assistance to area employers in the aversion of 
     layoffs and in managing reductions in force in coordination 
     with rapid response activities;
       ``(ff) the marketing of business services offered under 
     this title, to appropriate area employers, including small 
     and mid-sized employers;
       ``(gg) information referral on concerns affecting local 
     employers; and
       ``(hh) other business services and strategies designed to 
     better engage employers in workforce investment activities 
     and to make the workforce investment system more relevant to 
     the workforce investment needs of area businesses, as 
     determined by the local board to be consistent with the 
     objectives of this title;
       ``(xii) activities to adjust the self-sufficiency standards 
     for local factors, or activities to adopt, calculate, or 
     commission a self-sufficiency standard that specifies the 
     income needs of families, by family size, the number and ages 
     of children in the family, and sub-State geographical 
     considerations; and
       ``(xiii) improved coordination between employment and 
     training assistance and programs carried out in the local 
     area for individuals with disabilities, including programs 
     carried out by State agencies relating to mental retardation 
     and developmental disabilities, Statewide Independent Living 
     Councils established under section 705 of the Rehabilitation 
     Act of 1973 (29 U.S.C. 796d), and centers for independent 
     living defined in section 702 of the Rehabilitation Act of 
     1973 (29 U.S.C. 796a).
       ``(B) Work support activities for low-wage workers.--
       ``(i) In general.--Funds allocated to a local area for 
     adults under paragraph (2)(A) or (3), as appropriate, of 
     section 133(b), and

[[Page S5129]]

     funds allocated to the local area for dislocated workers 
     under section 133(b)(2)(B), may be used to provide, through 
     the one-stop delivery system involved, work support 
     activities designed to assist low-wage workers in retaining 
     and enhancing employment. The one-stop partners shall 
     coordinate the appropriate programs and resources of the 
     partners with the activities and resources provided under 
     this subparagraph.
       ``(ii) Activities.--The activities described in clause (i) 
     may include the provision of activities described in this 
     section through the one-stop delivery system in a manner that 
     enhances the opportunities of such workers to participate in 
     the activities, such as the provision of activities described 
     in this section during nontraditional hours and the provision 
     of onsite child care while such activities are being 
     provided.'';
       (B) in paragraph (2), by striking the matter preceding 
     subparagraph (A) and inserting the following:
       ``(2) Supportive services.--Funds allocated to a local area 
     for adults under paragraph (2)(A) or (3), as appropriate, of 
     section 133(b), and funds allocated to the local area for 
     dislocated workers under section 133(b)(2)(B), may be used to 
     provide supportive services to adults and dislocated workers, 
     respectively--''; and
       (C) by adding at the end the following:
       ``(4) Incumbent worker training programs.--
       ``(A) In general.--The local board may use up to 10 percent 
     of the funds allocated to the local area involved under 
     section 133(b) to pay for the Federal share of the cost of 
     providing training through an incumbent worker training 
     program carried out in accordance with this paragraph. The 
     Governor or State board may make recommendations to the local 
     board regarding incumbent worker training with statewide 
     impact.
       ``(B) Training activities.--The training program for 
     incumbent workers carried out under this paragraph shall be 
     carried out by the local board in conjunction with the 
     employers or groups of employers of such workers for the 
     purpose of assisting such workers in obtaining the skills 
     necessary to retain employment or avert layoffs.
       ``(C) Employer share required.--
       ``(i) In general.--Employers participating in the program 
     carried out under this paragraph shall be required to pay the 
     non-Federal share of the costs of providing the training to 
     incumbent workers of the employers. The local board shall 
     establish the non-Federal share of such costs, which may 
     include in-kind contributions. The non-Federal share shall 
     not be less than--

       ``(I) 10 percent of the costs, for employers with 50 or 
     fewer employees;
       ``(II) 25 percent of the costs, for employers with more 
     than 50 employees but fewer than 100 employees; and
       ``(III) 50 percent of the costs, for employers with 100 or 
     more employees.

       ``(ii) Calculation of employer share.--The non-Federal 
     share paid by such an employer may include the amount of the 
     wages paid by the employer to a worker while the worker is 
     attending a training program under this paragraph.''.

     SEC. 122. PERFORMANCE ACCOUNTABILITY SYSTEM.

       (a) State Performance Measures.--
       (1) Indicators of performance.--Section 136(b)(2)(A) (29 
     U.S.C. 2871(b)(2)(A)) is amended--
       (A) in clause (i)--
       (i) in the matter preceding subclause (I), by striking 
     ``and (for participants who are eligible youth age 19 through 
     21) for youth activities authorized under section 129'';
       (ii) by striking subclause (III) and inserting the 
     following:

       ``(III) increases in earnings from unsubsidized employment; 
     and''; and

       (iii) in subclause (IV), by striking ``, or by 
     participants'' and all that follows through ``unsubsidized 
     employment''; and
       (B) by striking clause (ii) and inserting the following:
       ``(ii) Core indicators for eligible youth.--The core 
     indicators of performance for youth activities authorized 
     under section 129 shall consist of--

       ``(I) entry into employment, education or advanced 
     training, or military service;
       ``(II) school retention, and attainment of secondary school 
     diplomas or their recognized equivalents and of postsecondary 
     certificates; and
       ``(III) literacy or numeracy gains.''.

       (2) Additional indicators.--Section 136(b)(2)(C) (29 U.S.C. 
     2871(b)(2)(C)) is amended to read as follows:
       ``(C) Additional indicators.--A State may identify in the 
     State plan additional indicators for workforce investment 
     activities under this subtitle, including indicators 
     identified in collaboration with State business and industry 
     associations, with employee representatives where applicable, 
     and with local boards, to measure the performance of the 
     workforce investment system in serving the workforce needs of 
     business and industry in the State.''.
       (3) Levels of performance.--Section 136(b)(3)(A) (29 U.S.C. 
     2871(b)(3)(A)) is amended--
       (A) in clause (iii)--
       (i) in the heading, by striking ``for first 3 years'';
       (ii) by striking ``and the customer satisfaction indicator 
     of performance, for the first 3'' and inserting ``described 
     in clauses (i) and (ii) of paragraph (2)(A) and the customer 
     satisfaction indicator of performance, for the first 2''; and
       (iii) by inserting at the end the following: ``Agreements 
     on levels of performance for each of the core indicators of 
     performance for the third and fourth program years covered by 
     the State plan shall be reached prior to the beginning of the 
     third program year covered by the State plan, and 
     incorporated as a modification to the State plan.'';
       (B) in clause (iv)--
       (i) in the matter preceding subclause (I), by striking ``or 
     (v)'';
       (ii) in subclause (II)--

       (I) by striking ``taking into account'' and inserting ``and 
     shall ensure that the levels involved are adjusted, using 
     objective statistical methods, based on'';
       (II) by inserting ``(such as differences in unemployment 
     rates and job losses or gains in particular industries)'' 
     after ``economic conditions'';
       (III) by inserting ``(such as indicators of poor work 
     history, lack of work experience, lack of educational or 
     occupational skills attainment, dislocation from high-wage 
     and benefit employment, low levels of literacy or English 
     proficiency, disability status, homelessness, ex-offender 
     status, and welfare dependency)'' after ``program''; and
       (IV) by striking ``and'' at the end;

       (iii) in subclause (III), by striking the period and 
     inserting ``; and''; and
       (iv) by adding at the end the following:

       ``(IV) the extent to which the levels involved will assist 
     the State in meeting the national goals described in clause 
     (v).'';

       (C) by striking clause (v) and inserting the following:
       ``(v) Establishment of national goals.--In order to promote 
     enhanced performance outcomes on the performance measures and 
     to facilitate the process of reaching agreements with the 
     States under clause (iii) and to measure systemwide 
     performance for the one-stop delivery systems of the States, 
     the Secretary shall establish long-term national goals for 
     the adjusted levels of performance for that systemwide 
     performance to be achieved by the programs assisted under 
     chapters 4 and 5 on the core indicators of performance 
     described in subparagraphs (A) and (B) of subsection (b)(2). 
     Such goals shall be established in accordance with the 
     Government Performance and Results Act of 1993 in 
     consultation with the States and other appropriate 
     parties.''; and
       (D) in clause (vi)--
       (i) by striking ``or (v)''; and
       (ii) by striking ``with the representatives described in 
     subsection (i)'' and inserting ``with the States and other 
     interested parties''.
       (b) Local Performance Measures.--Section 136(c)(3) (29 
     U.S.C. 2871(c)(3))--
       (1) by striking ``shall take into account'' and inserting 
     ``shall ensure that the levels involved are adjusted, using 
     objective statistical methods, based on'';
       (2) by inserting ``(characteristics such as unemployment 
     rates and job losses or gains in particular industries)'' 
     after ``economic''; and
       (3) by inserting ``(characteristics such as indicators of 
     poor work history, lack of work experience, lack of 
     educational and occupational skills attainment, dislocation 
     from high-wage and benefit employment, low levels of literacy 
     or English proficiency, disability status, homelessness, ex-
     offender status, and welfare dependency)'' after 
     ``demographic''.
       (c) Report.--Section 136(d) (29 U.S.C. 2871(d)) is 
     amended--
       (1) in paragraph (1), by adding at the end the following: 
     ``In the case of a State or local area that chooses to expend 
     funds for activities under subsection (a)(3)(A)(i) or 
     (e)(1)(A)(xi), respectively, of section 134, the report also 
     shall include the amount of such funds so expended and the 
     percentage that such funds are of the funds available for 
     activities under section 134.'';
       (2) in paragraph (2)--
       (A) in subparagraph (E)--
       (i) by striking ``(excluding participants who received only 
     self-service and informational activities)''; and
       (ii) by striking ``and'' after the semicolon;
       (B) in subparagraph (F)--
       (i) by inserting ``noncustodial parents with child support 
     obligations, homeless individuals,'' after ``displaced 
     homemakers,''; and
       (ii) by striking the period and inserting a semicolon; and
       (C) by adding at the end the following:
       ``(G) the number of participants who have received 
     services, other than followup services, authorized under this 
     title;
       ``(H) the number of participants who have received 
     services, other than followup services, authorized under this 
     title, in the form of core services described in section 
     134(d)(2), intensive services described in section 134(d)(3), 
     and training services described in section 134(d)(4), 
     respectively;
       ``(I) the number of participants who have received followup 
     services authorized under this title;
       ``(J) the cost per participant for services authorized 
     under this title; and
       ``(K) the amount of adult and dislocated worker funds spent 
     on--
       ``(i) core, intensive, and training services, respectively; 
     and
       ``(ii) services provided under subsection (a)(3)(A)(i) or 
     (e)(1)(A)(xi) of section 134, if applicable.''; and
       (3) by adding at the end the following:
       ``(4) Data validation.--In preparing the reports described 
     in this subsection, the States shall establish procedures, 
     consistent with guidelines issued by the Secretary, to

[[Page S5130]]

     ensure that the information contained in the reports is valid 
     and reliable.''.
       (d) Evaluation of State Programs.--Section 136(e)(3) is 
     amended by inserting ``, including information on promoting 
     self-sufficiency and comparable pay between men and women'' 
     after ``employers''.
       (e) Sanctions for State.--Section 136(g) is amended--
       (1) in paragraph (1)(B), by striking ``If such failure 
     continues for a second consecutive year'' and inserting ``If 
     a State performs at less than 80 percent of the adjusted 
     level of performance for core indicators of performance 
     described in subsection (b)(2)(A) for 2 consecutive years''; 
     and
       (2) in paragraph (2), by striking ``section 503'' and 
     inserting ``subsection (i)(1)''.
       (f) Sanctions for Local Area.--Section 136(h)(2)(A) (29 
     U.S.C. 2871(h)(2)(A)) is amended--
       (1) in the matter preceding clause (i), by striking ``If 
     such failure continues for a second consecutive year'' and 
     inserting ``If a local area performs at less than 80 percent 
     of the adjusted level of performance for core indicators of 
     performance described in subsection (b)(2)(A) for 2 
     consecutive years'';
       (2) in clause (ii), by striking ``or'' after the semicolon;
       (3) by redesignating clause (iii) as clause (iv); and
       (4) by inserting after clause (ii) the following:
       ``(iii) redesignate the local area in accordance with 
     section 116(b)(2); or''.
       (g) Incentive Grants.--Section 136(i) (29 U.S.C. 2871(i)) 
     is amended to read as follows:
       ``(i) Incentive Grants for Local Areas.--
       ``(1) In general.--From funds reserved under sections 
     128(a) and 133(a)(1), the Governor involved shall award 
     incentive grants to local areas for performance described in 
     paragraph (2) in carrying out programs under chapters 4 and 
     5.
       ``(2) Basis.--The Governor shall award the grants on the 
     basis that the local areas--
       ``(A) have exceeded the performance measures established 
     under subsection (c)(2) relating to indicators described in 
     subsection (b)(3)(A)(iii); or
       ``(B) have--
       ``(i) met the performance measures established under 
     subsection (c)(2) relating to indicators described in 
     subsection (b)(3)(A)(iii); and
       ``(ii) demonstrated--

       ``(I) exemplary coordination of Federal workforce and 
     education programs, statewide economic development, or 
     business needs;
       ``(II) exemplary performance in the State in serving hard-
     to-serve populations; or
       ``(III) effective--

       ``(aa) coordination of multiple systems into a 
     comprehensive workforce investment system, including 
     coordination of employment services under the Wagner-Peyser 
     Act (29 U.S.C. 49 et seq.) and core activities under this 
     title as well as one-stop partner programs described in 
     section 121;
       ``(bb) expansion of access to training, including through 
     increased leveraging of resources other than those funded 
     through programs under this title;
       ``(cc) implementation of coordination activities through 
     agreements with relevant regional or local agencies and 
     offices, including those responsible for programs under the 
     Adult Education and Family Literacy Act (20 U.S.C. 9201 et 
     seq.) and the Rehabilitation Act of 1973 (29 U.S.C. 701 et 
     seq.);
       ``(dd) regional coordination with other local workforce 
     investment boards or areas;
       ``(ee) alignment of management information systems to 
     integrate participant information across programs; or
       ``(ff) integration of performance information systems and 
     common measures for accountability across workforce and 
     education programs.
       ``(3) Use of Funds.--The funds awarded to a local area 
     under this subsection may be used to carry out activities 
     authorized for local areas and such innovative projects or 
     programs that increase coordination and enhance service to 
     program participants, particularly hard-to-serve populations, 
     as may be approved by the Governor, including--
       ``(A) activities that support business needs, especially 
     for incumbent workers and enhancing opportunities for 
     retention and advancement;
       ``(B) activities that support linkages with secondary, 
     postsecondary, or career and technical education programs, 
     including activities under the Carl D. Perkins Vocational and 
     Technical Education Act of 1998 (20 U.S.C. 2301 et seq.), the 
     Adult Education and Family Literacy Act (20 U.S.C. 9201 et 
     seq.), and the Rehabilitation Act of 1973 (29 U.S.C. 701 et 
     seq.);
       ``(C) activities that support regional economic development 
     plans that support high-wage, high-skill, or high-demand 
     occupations leading to self-sufficiency;
       ``(D) activities that coordinate workforce investment 
     programs with other Federal and State programs related to the 
     activities under this Act;
       ``(E) activities that support the development of an 
     integrated performance information system that includes 
     common measures;
       ``(F) activities that align management information systems 
     with integrated performance information across education and 
     workforce programs;
       ``(G) activities that support activities to improve 
     performance and program coordination with other training 
     providers; or
       ``(H) activities that leverage additional training 
     resources for adults and youth.
       ``(4) Technical assistance.--The Governor shall reserve 4 
     percent of the funds available for grants under this 
     subsection to provide technical assistance to local areas to 
     replicate best practices or to develop integrated performance 
     information systems and strengthen coordination with 
     education and regional economic development.''.
       (h) Use of Core Measures in Other Department of Labor 
     Programs.--Section 136 (29 U.S.C. 2871) is amended by adding 
     at the end the following:
       ``(j) Use of Core Indicators for Other Programs.--In 
     addition to the programs carried out under chapters 4 and 5, 
     and consistent with the requirements of the applicable 
     authorizing laws, the Secretary shall use the indicators of 
     performance described in subparagraphs (A) and (B) of 
     subsection (b)(2) to assess the effectiveness of the programs 
     described in clauses (i), (ii), and (vi) of section 
     121(b)(1)(B) that are carried out by the Secretary.''.
       (i) Previous Definitions of Core Indicators.--Section 502 
     (29 U.S.C. 9272) is repealed.

     SEC. 123. AUTHORIZATION OF APPROPRIATIONS.

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

                         Subtitle C--Job Corps

     SEC. 131. JOB CORPS.

       (a) Eligibility.--Section 144(3) (29 U.S.C. 2884(3)) is 
     amended by adding at the end the following:
       ``(F) A child eligible for assistance under section 477 of 
     the Social Security Act (42 U.S.C. 677).''.
       (b) Implementation of Standards and Procedures.--Section 
     145(a)(3) (29 U.S.C. 2885(a)(3)) is amended--
       (1) in subparagraph (B), by striking ``and'' after the 
     semicolon;
       (2) in subparagraph (C), by striking the period and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(D) child welfare agencies that are responsible for 
     children in foster care and children eligible for assistance 
     under section 477 of the Social Security Act (42 U.S.C. 
     677).''.
       (c) Industry Councils.--Section 154(b) (29 U.S.C. 2894(b)) 
     is amended--
       (1) in paragraph (1)(A), by striking ``local and distant''; 
     and
       (2) by adding at the end the following:
       ``(3) Employers outside of local area.--The industry 
     council may include, or otherwise provide for consultation 
     with, employers from outside the local area who are likely to 
     hire a significant number of enrollees from the Job Corps 
     center.
       ``(4) Special rule for single local area states.--In the 
     case of a single local area State designated under section 
     116(b), the industry council shall include a representative 
     of the State Board.''.
       (d) Indicators of Performance.--Section 159 (29 U.S.C. 
     2899) is amended--
       (1) in subsection (c)--
       (A) by striking paragraph (1) and inserting the following:
       ``(1) Performance indicators.--The Secretary shall annually 
     establish expected levels of performance for Job Corps 
     centers and the Job Corps program relating to each of the 
     core indicators of performance for youth activities 
     identified in section 136(b)(2)(A)(ii).'';
       (B) in paragraph (2), by striking ``measures'' each place 
     it appears and inserting ``indicators''; and
       (C) in paragraph (3)--
       (i) in the first sentence, by striking ``core performance 
     measures, as compared to the expected performance level for 
     each performance measure'' and inserting ``performance 
     indicators described in paragraph (1), as compared to the 
     expected level of performance established under paragraph (1) 
     for each performance measure''; and
       (ii) in the second sentence, by striking ``measures'' each 
     place it appears and inserting ``indicators''; and
       (2) in subsection (f)(2), in the first sentence, by 
     striking ``core performance measures'' and inserting 
     ``indicators of performance''.
       (e) Authorization of Appropriations.--Section 161 (29 
     U.S.C. 2901) is amended by striking ``1999 through 2003'' and 
     inserting ``2006 through 2011''.

                     Subtitle D--National Programs

     SEC. 141. NATIVE AMERICAN PROGRAMS.

       (a) Advisory Council.--Section 166(h)(4)(C) (29 U.S.C. 
     2911(h)(4)(C)) is amended to read as follows:
       ``(C) Duties.--The Council shall advise the Secretary on 
     the operation and administration of the programs assisted 
     under this section, including the selection of the individual 
     appointed as head of the unit established under paragraph 
     (1).''.

[[Page S5131]]

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

     SEC. 142. MIGRANT AND SEASONAL FARMWORKER PROGRAMS.

       Section 167 (29 U.S.C. 2912) is amended--
       (1) in subsection (a), by striking ``2'' and inserting ``2 
     to 4'';
       (2) in subsection (b), by inserting ``and deliver'' after 
     ``administer'';
       (3) in subsection (c)--
       (A) in paragraph (1), by striking ``2-year'' and inserting 
     ``4-year'';
       (B) in paragraph (2)--
       (i) in subparagraph (A)--

       (I) by inserting ``describe the population to be served 
     and'' before ``identify''; and
       (II) by inserting ``, including upgraded employment in 
     agriculture'' before the semicolon;

       (ii) in subparagraph (B), by striking ``and'' at the end;
       (iii) in subparagraph (C), by striking the period and 
     inserting a semicolon; and
       (iv) by adding at the end the following:
       ``(D) describe the availability and accessibility of local 
     resources such as supportive services, services provided 
     through one-stop delivery systems, and education and training 
     services, and how the resources can be made available to the 
     population to be served; and
       ``(E) describe the plan for providing services under this 
     section, including strategies and systems for outreach, case 
     management, assessment, and delivery through one-stop 
     delivery systems.''; and
       (C) by striking paragraph (4) and inserting the following:
       ``(4) Competition.--The competition for grants made and 
     contracts entered into under this section shall be conducted 
     every 2 to 4 years.'';
       (4) in subsection (d), by striking ``include'' and all that 
     follows and inserting ``include outreach, employment, 
     training, educational assistance, literary assistance, 
     English language and literacy instruction, pesticide and 
     worker safety training, housing (including permanent 
     housing), supportive services, school dropout prevention 
     activities, followup services for those individuals placed in 
     employment, self-employment and related business or micro-
     enterprise development or education as needed by eligible 
     individuals and as identified pursuant to the plan required 
     by subsection (c), customized career and technical education 
     in occupations that will lead to higher wages, enhanced 
     benefits, and long-term employment in agriculture or another 
     area, and technical assistance to improve coordination of 
     services and implement best practices relating to service 
     delivery through one-stop delivery systems.'';
       (5) in subsection (f), by striking ``take into account the 
     economic circumstances and demographics of eligible migrant 
     and seasonal farmworkers.'' and inserting ``are adjusted 
     based on the economic and demographic barriers to employment 
     of eligible migrant and seasonal farmworkers.'';
       (6) in subsection (g), by striking ``(enacted by the Single 
     Audit Act of 1984)'';
       (7) in subsection (h)--
       (A) by striking paragraph (1) and inserting the following:
       ``(1) Dependent.--The term `dependent', used with respect 
     to an eligible migrant or seasonal farmworker, means an 
     individual who--
       ``(A) was claimed as a dependent on the farmworker's 
     Federal income tax return for the previous year;
       ``(B) is the spouse of the farmworker; or
       ``(C) is able to establish--
       ``(i) a relationship as the farmworker's--

       ``(I) biological or legally adopted child, grandchild, or 
     great-grandchild;
       ``(II) foster child;
       ``(III) stepchild;
       ``(IV) brother, sister, half-brother, half-sister, 
     stepbrother, or stepsister;
       ``(V) parent, grandparent, or other direct ancestor (but 
     not foster parent);
       ``(VI) stepfather or stepmother;
       ``(VII) uncle or aunt;
       ``(VIII) niece or nephew; or
       ``(IX) father-in-law, mother-in-law, son-in-law, daughter-
     in-law, brother-in-law, or sister-in-law; and

       ``(ii) the receipt of over half of the individual's total 
     support from the farmworker's family during the eligibility 
     determination period for the farmworker.''; and
       (B) in paragraph (4)(A)--
       (i) by striking ``disadvantaged person'' and inserting 
     ``low-income individual''; and
       (ii) by inserting ``and who faces multiple barriers to 
     self-sufficiency'' before the semicolon;
       (8) by redesignating subsection (h) as subsection (i); and
       (9) by inserting before subsection (i) the following:
       ``(h) Funding Allocation.--From the funds appropriated and 
     made available to carry out this section, the Secretary shall 
     reserve not more than 1 percent for discretionary purposes, 
     such as providing technical assistance to eligible 
     entities.''

     SEC. 143. VETERANS' WORKFORCE INVESTMENT PROGRAMS.

       Section 168(a)(3) (29 U.S.C. 2913(a)(3)) is amended--
       (1) in subparagraph (A), by inserting ``, including 
     services provided by one-stop operators and one-stop 
     partners'' before the semicolon; and
       (2) in subparagraph (C), by striking ``section 134(c)'' and 
     inserting ``section 121(e)''.

     SEC. 144. YOUTH CHALLENGE GRANTS.

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

     ``SEC. 169. YOUTH CHALLENGE GRANTS.

       ``(a) In General.--Of the amounts reserved by the Secretary 
     under section 127(b)(1)(A) for a fiscal year--
       ``(1) the Secretary shall use not less than 80 percent to 
     award competitive grants under subsection (b); and
       ``(2) the Secretary may use not more than 20 percent to 
     award competitive grants under subsection (c).
       ``(b) Competitive Grants to States and Local Areas.--
       ``(1) Establishment.--From the funds described in 
     subsection (a)(1), the Secretary shall award competitive 
     grants to eligible entities to carry out activities 
     authorized under this subsection to assist eligible youth in 
     acquiring the skills, credentials, and employment experience 
     necessary to achieve the performance outcomes for youth 
     described in section 136.
       ``(2) Eligible entity.--In this subsection, the term 
     `eligible entity' means--
       ``(A) a State or consortium of States;
       ``(B) a local board or consortium of local boards;
       ``(C) a recipient of a grant under section 166 (relating to 
     Native American programs); or
       ``(D) a public or private entity (including a consortium of 
     such entities) with expertise in the provision of youth 
     activities, applying in partnership with a local board or 
     consortium of local boards.
       ``(3) Applications.--To be eligible to receive a grant 
     under this subsection, an eligible entity shall submit an 
     application to the Secretary at such time, in such manner, 
     and containing such information as the Secretary may require, 
     including--
       ``(A) a description of the activities the eligible entity 
     will provide to eligible youth under this subsection, and how 
     the eligible entity will collaborate with State and local 
     workforce investment systems established under this title in 
     the provision of such activities;
       ``(B) a description of the programs of demonstrated 
     effectiveness on which the provision of the activities under 
     subparagraph (A) are based, and a description of how such 
     activities will expand the base of knowledge relating to the 
     provision of activities for youth;
       ``(C) a description of the State, local, and private 
     resources that will be leveraged to provide the activities 
     described under subparagraph (A) in addition to funds 
     provided under this subsection, and a description of the 
     extent of the involvement of employers in the activities;
       ``(D) the levels of performance the eligible entity expects 
     to achieve with respect to the indicators of performance for 
     youth specified in section 136(b)(2)(A)(ii); and
       ``(E) an assurance that the State board of each State in 
     which the proposed activities are to be carried out had the 
     opportunity to review the application, and including the 
     comments, if any, of the affected State boards on the 
     application, except that this subparagraph shall not apply to 
     an eligible entity described in paragraph (2)(C).
       ``(4) Factors for award.--
       ``(A) In general.--In awarding grants under this subsection 
     the Secretary shall consider--
       ``(i) the quality of the proposed activities;
       ``(ii) the goals to be achieved;
       ``(iii) the likelihood of successful implementation;
       ``(iv) the extent to which the proposed activities are 
     based on proven strategies or the extent to which the 
     proposed activities will expand the base of knowledge 
     relating to the provision of activities for eligible youth;
       ``(v) the extent of collaboration with the State and local 
     workforce investment systems in carrying out the proposed 
     activities;
       ``(vi) the extent of employer involvement in the proposed 
     activities;
       ``(vii) whether there are other Federal and non-Federal 
     funds available for similar activities to the proposed 
     activities, and the additional State, local, and private 
     resources

[[Page S5132]]

     that will be provided to carry out the proposed activities;
       ``(viii) the quality of the proposed activities in meeting 
     the needs of the eligible youth to be served; and
       ``(ix) the extent to which the proposed activities will 
     expand on services provided under section 127.
       ``(B) Equitable geographic distribution.--In awarding 
     grants under this subsection the Secretary shall ensure an 
     equitable distribution of such grants across geographically 
     diverse areas.
       ``(5) Use of funds.--
       ``(A) In general.--An eligible entity that receives a grant 
     under this subsection shall use the grant funds to carry out 
     activities that are designed to assist youth in acquiring the 
     skills, credentials, and employment experience that are 
     necessary to succeed in the labor market, including the 
     activities identified in section 129.
       ``(B) Activities.--The activities carried out pursuant to 
     subparagraph (A) may include the following:
       ``(i) Training and internships for out-of-school youth in 
     sectors of the economy experiencing, or projected to 
     experience, high growth.
       ``(ii) Dropout prevention activities for in-school youth.
       ``(iii) Activities designed to assist special youth 
     populations, such as court-involved youth and youth with 
     disabilities.
       ``(iv) Activities combining remediation of academic skills, 
     work readiness training, and work experience, and including 
     linkages to postsecondary education, apprenticeships, and 
     career-ladder employment.
       ``(v) Activities, including work experience, paid 
     internships, and entrepreneurial training, in areas where 
     there is a migration of youth out of the areas.
       ``(C) Participant eligibility.--Youth who are 14 years of 
     age through 21 years of age, as of the time the eligibility 
     determination is made, may be eligible to participate in 
     activities carried out under this subsection.
       ``(6) Grant period.--The Secretary shall make a grant under 
     this subsection for a period of 2 years and may renew the 
     grant, if the eligible entity has performed successfully, for 
     a period of not more than 3 succeeding years.
       ``(7) Matching funds required.--The Secretary shall require 
     that an eligible entity that receives a grant under this 
     subsection provide non-Federal matching funds in an amount to 
     be determined by the Secretary that is not less than 10 
     percent of the cost of activities carried out under the 
     grant. The Secretary may require that such non-Federal 
     matching funds be provided in cash resources, noncash 
     resources, or a combination of cash and noncash resources.
       ``(8) Evaluation.--The Secretary shall reserve not more 
     than 3 percent of the funds described in subsection (a)(1) to 
     provide technical assistance to, and conduct evaluations of 
     (using appropriate techniques as described in section 
     172(c)), the projects funded under this subsection.
       ``(c) Competitive First Jobs for Youth.--
       ``(1) Eligible entity.--In this subsection, the term 
     `eligible entity' means a consortium that--
       ``(A) shall include--
       ``(i)(I) a State board; or
       ``(II) a local board; and
       ``(ii) a consortium of businesses, including small 
     businesses; and
       ``(B) may include 1 or more--
       ``(i) local educational agencies;
       ``(ii) institutions of higher education;
       ``(iii) business intermediaries;
       ``(iv) community-based organizations; or
       ``(v) apprenticeship programs.
       ``(2) Authorization.--From the funds described in 
     subsection (a)(2), the Secretary may award grants to eligible 
     entities to provide activities that will assist youth in 
     preparing for, entering, and retaining employment.
       ``(3) Applications.--To be eligible to receive a grant 
     under this subsection, an eligible entity shall submit an 
     application to the Secretary at such time, in such manner, 
     and containing such information as the Secretary may require, 
     including--
       ``(A) a description of the area to be served, including 
     information demonstrating that the area has--
       ``(i) high unemployment among individuals ages 16 through 
     21;
       ``(ii) high unemployment among youth who are individuals 
     with disabilities; or
       ``(iii) high job loss;
       ``(B) a description of the proposed program, including 
     activities, compensation, and expected outcomes;
       ``(C) an assurance that the participating employers in the 
     proposed program are located in the local area to be served, 
     and a demonstration of the commitment of the participating 
     employers to hire individuals who--
       ``(i) have successfully completed the program; or
       ``(ii) continue to work in the program;
       ``(D) demographic information about the targeted 
     populations to be served by the proposed program, including 
     gender, age, and race;
       ``(E) a description of how the proposed program will 
     address the barriers to employment of the targeted 
     populations;
       ``(F) a description of the manner in which the eligible 
     entity will evaluate the program; and
       ``(G) a description of the ability of the eligible entity 
     to carry out and expand the program after the expiration of 
     the grant period.
       ``(4) Equitable distribution to rural areas.--In awarding 
     grants under this subsection, the Secretary shall ensure an 
     equitable distribution of such grants to rural areas.
       ``(5) Use of funds.--
       ``(A) In general.--An eligible entity that receives a grant 
     under this subsection shall use the grant funds to carry 
     out--
       ``(i) activities that will assist youth in preparing for, 
     entering, and retaining employment, including the activities 
     described in section 129 for out-of-school youth;
       ``(ii) activities designed to strengthen academic skills 
     that would assist--

       ``(I) in-school participants to be successful in secondary 
     school and continue such participants' education; and
       ``(II) out-of-school youth to earn a high school diploma or 
     its recognized equivalent, or prepare for postsecondary 
     programs;

       ``(iii) activities designed to assist youth in economically 
     distressed areas;
       ``(iv) subsidized employment for not more than 9 months 
     that provides direct experience in a sector that has 
     opportunities for full-time employment;
       ``(v) career and academic advisement, activities to promote 
     financial literacy and the attainment of entrepreneurial 
     skills, and labor market information on high-skill, high-
     wage, and nontraditional occupations; and
       ``(vi) such other activities as the Secretary determines 
     are appropriate to ensure that youth entering the workforce 
     have the skills needed by employers.
       ``(B) Participant eligibility.--An individual who is not 
     younger than 16 years of age and not older than 21 years of 
     age, as of the time the eligibility determination is made, 
     who face barriers to employment, including an individual who 
     is an individual with a disability, may be eligible to 
     participate in activities under this subsection.
       ``(6) Special rule.--An eligible entity that receives a 
     grant under this subsection shall coordinate activities with 
     the designated State agency (as defined in section 7 of the 
     Rehabilitation Act of 1973 (29 U.S.C. 705)) and other 
     appropriate State agencies in the State to be served.
       ``(7) Matching funds required.--The Secretary shall require 
     that an eligible entity that receives a grant under this 
     subsection provide non-Federal matching funds in an amount to 
     be determined by the Secretary that is not less than 10 
     percent of the cost of activities carried out under the 
     grant. The Secretary may require that such non-Federal 
     matching funds be provided in cash resources, noncash 
     resources, or a combination of cash and noncash resources.
       ``(8) Evaluations.--The Secretary may require that an 
     eligible entity that receives a grant under this subsection 
     participate in an evaluation of activities carried out under 
     this subsection, including an evaluation using the techniques 
     described in section 172(c).''.

     SEC. 145. TECHNICAL ASSISTANCE.

       Section 170 (29 U.S.C. 2915) is amended--
       (1) in subsection (a)(1), by--
       (A) inserting ``the training of staff providing rapid 
     response services, the training of other staff of recipients 
     of funds under this title, the training of members of State 
     boards and local boards, peer review activities under this 
     title,'' after ``localities,''; and
       (B) striking ``from carrying out activities'' and all that 
     follows through the period and inserting ``to implement the 
     amendments made by the Workforce Investment Act Amendments of 
     2005.'';
       (2) in subsection (a)(2), by adding at the end the 
     following: ``The Secretary shall also hire staff qualified to 
     provide the assistance described in paragraph (1).'';
       (3) in subsection (b)(2), by striking the last sentence and 
     inserting ``Such projects shall be administered by the 
     Employment and Training Administration.''; and
       (4) by adding at the end the following:
       ``(c) Best Practices Coordination.--The Secretary shall--
       ``(1) establish a system through which States may share 
     information regarding best practices with regard to the 
     operation of workforce investment activities under this Act;
       ``(2) evaluate and disseminate information regarding best 
     practices and identify knowledge gaps; and
       ``(3) commission research under section 171(c) to address 
     knowledge gaps identified under paragraph (2).''.

     SEC. 146. DEMONSTRATION, PILOT, MULTISERVICE, RESEARCH, AND 
                   MULTISTATE PROJECTS.

       (a) Demonstration and Pilot Projects.--Section 171(b) (29 
     U.S.C. 2916(b)) is amended--
       (1) in paragraph (1)--
       (A) by striking ``Under a'' and inserting ``Consistent with 
     the priorities specified in the'';
       (B) by striking subparagraphs (A) through (E) and inserting 
     the following:
       ``(A) projects that assist national employers in connecting 
     with the workforce investment system established under this 
     title in order to facilitate the recruitment and employment 
     of needed workers for career ladder jobs and to provide 
     information to such system on skills and occupations in 
     demand;
       ``(B) projects that promote the development of systems that 
     will improve the maximum effectiveness of programs carried 
     out under this title;
       ``(C) projects that focus on opportunities for employment 
     in industries and sectors of

[[Page S5133]]

     industries that are experiencing, or are likely to 
     experience, high rates of growth and jobs with wages leading 
     to self-sufficiency;
       ``(D) computerized, individualized, self-paced training 
     projects targeted to dislocated, disadvantaged, or incumbent 
     workers utilizing equipment and curriculum designed in 
     partnership with industries for employment in the operations, 
     repair, and maintenance of high-tech equipment that is used 
     in integrated systems technology;
       ``(E) projects carried out by States and local areas to 
     test innovative approaches to delivering employment-related 
     services;'';
       (C) in subparagraph (G), by striking ``and'' after the 
     semicolon; and
       (D) by striking subparagraph (H) and inserting the 
     following:
       ``(H) projects that provide retention grants, which shall--
       ``(i) be made to qualified job training programs offering 
     instruction, assessment, or professional coaching, upon 
     placement of a low-income individual trained by the program 
     involved in employment with an employer and retention of the 
     low-income individual in that employment with that employer 
     for a period of 1 year, if that employment provides the low-
     income individual with an annual salary--

       ``(I) that is at least $10,000 more than the individual's 
     federally adjusted income for the previous year; and
       ``(II) that is not less than twice the poverty line 
     applicable to the individual; and

       ``(ii) be made taking into account the economic benefit 
     received by the Federal Government from the employment and 
     retention of the individual, including the economic benefit 
     from tax revenue and decreased public subsidies;
       ``(I) targeted innovation projects that improve access to 
     and delivery of employment and training services, with 
     emphasis given to projects that incorporate advanced 
     technologies to facilitate the connection of individuals to 
     the information and tools the individuals need to upgrade 
     skills;
       ``(J) projects that promote the use of distance learning, 
     enabling students to take courses through the use of media 
     technology such as videos, teleconferencing computers, and 
     the Internet; and
       ``(K) projects that provide comprehensive education and 
     training services, and support services, in coordination with 
     local boards, for populations in targeted high poverty areas 
     where the greatest barriers to employment exist, including 
     ex-offenders, out-of-school youth, and public assistance 
     recipient populations.''; and
       (2) in paragraph (2)--
       (A) by striking subparagraph (B); and
       (B) by redesignating subparagraph (C) as subparagraph (B).
       (b) Multiservice Projects.--Section 171(c)(2)(B) (29 U.S.C. 
     2916(c)(2)(B)) is amended to read as follows:
       ``(B) Studies and reports.--
       ``(i) Net impact studies and reports.--

       ``(I) In general.--The Secretary, in coordination with the 
     Secretary of Education, shall conduct studies to determine 
     the net impacts of, including best practices of, programs, 
     services, and activities carried out under this title.
       ``(II) Reports.--The Secretary shall prepare and 
     disseminate to the public reports containing the results of 
     the studies conducted under subclause (I).

       ``(ii) Study on resources available to assist out-of-school 
     youth.--The Secretary, in coordination with the Secretary of 
     Education, may conduct a study examining the resources 
     available at the Federal, State, and local levels to assist 
     out-of-school youth in obtaining the skills, credentials, and 
     work experience necessary to become successfully employed, 
     including the availability of funds provided through average 
     daily attendance and other methodologies used by States and 
     local areas to distribute funds.
       ``(iii) Study of industry-based certification and 
     credentials.--

       ``(I) In general.--The Secretary shall conduct a study 
     concerning the role and benefits of credentialing and 
     certification to businesses and workers in the economy and 
     the implications of certification to the services provided 
     through the workforce investment system. The study may 
     examine issues such as--

       ``(aa) the characteristics of successful credentialing and 
     certification systems that serve business and individual 
     needs;
       ``(bb) the relative proportions of certificates and 
     credentials attained with assistance from the public sector, 
     with private-sector training of new hires or incumbent 
     workers, and by individuals on their own initiative without 
     other assistance, respectively;
       ``(cc) the return on human capital investments from 
     occupational credentials and industry-based skill 
     certifications, including the extent to which acquisition of 
     such credentials or certificates enhances outcomes such as 
     entry into employment, retention, earnings (including the 
     number and amount of wage increases), career advancement, and 
     layoff aversion;
       ``(dd) the implications of the effects of skill 
     certifications and credentials to the types and delivery of 
     services provided through the workforce investment system;
       ``(ee) the role that Federal and State governments play in 
     fostering the development of and disseminating credentials 
     and skill standards; and
       ``(ff) the use of credentials by businesses to achieve 
     goals for workforce skill upgrading and greater operating 
     efficiency.

       ``(II) Report to congress.--The Secretary shall prepare and 
     submit to Congress a report containing the results of the 
     study conducted pursuant to subclause (I). Such report may 
     include any recommendations that the Secretary determines are 
     appropriate to include in such report relating to promoting 
     the acquisition of industry-based certification and 
     credentials, and the appropriate role of the Department of 
     Labor and the workforce investment system in supporting the 
     needs of business and individuals with respect to such 
     certification and credentials.

       ``(iv) Study of effectiveness of workforce investment 
     system in meeting business needs.--

       ``(I) In general.--Using funds available to carry out this 
     section jointly with funds available to the Secretary of 
     Commerce and Administrator of the Small Business 
     Administration, the Secretary, in coordination with the 
     Secretary of Commerce and the Administrator of the Small 
     Business Administration, may conduct a study of the 
     effectiveness of the workforce investment system in meeting 
     the needs of business, with particular attention to the needs 
     of small business, including in assisting workers to obtain 
     the skills needed to utilize emerging technologies. In 
     conducting the study, the Secretary, in coordination with the 
     Secretary of Commerce and the Administrator of the Small 
     Business Administration, may examine issues such as--

       ``(aa) methods for identifying the workforce needs of 
     businesses and how the requirements of small businesses may 
     differ from larger establishments;
       ``(bb) business satisfaction with the workforce investment 
     system, with particular emphasis on the satisfaction of small 
     businesses;
       ``(cc) the extent to which business is engaged as a 
     collaborative partner in the workforce investment system, 
     including the extent of business involvement as members of 
     State boards and local boards, and the extent to which such 
     boards and one-stop centers effectively collaborate with 
     business and industry leaders in developing workforce 
     investment strategies, including strategies to identify high 
     growth opportunities;
       ``(dd) ways in which the workforce investment system 
     addresses changing skill needs of business that result from 
     changes in technology and work processes;
       ``(ee) promising practices for serving small businesses;
       ``(ff) the extent and manner in which the workforce 
     investment system uses technology to serve business and 
     individual needs, and how uses of technology could enhance 
     efficiency and effectiveness in providing services; and
       ``(gg) the extent to which various segments of the labor 
     force have access to and utilize technology to locate job 
     openings and apply for jobs, and characteristics of 
     individuals utilizing such technology (such as age, gender, 
     race or ethnicity, industry sector, and occupational groups).

       ``(II) Report to congress.--The Secretary shall prepare and 
     submit to Congress a report containing the results of the 
     study described in subclause (I). Such report may include any 
     recommendations the Secretary determines are appropriate to 
     include in such report, including ways to enhance the 
     effectiveness of the workforce investment system in meeting 
     the needs of business for skilled workers.''.

       (c) Administration.--Section 171(d) (29 U.S.C. 2916(d)) is 
     amended by striking the last sentence and inserting the 
     following: ``Such projects shall be administered by the 
     Employment and Training Administration.''.
       (d) Next Generation Technologies.--Section 171 (29 U.S.C. 
     2916) is amended by adding at the end the following:
       ``(e) Skill Certification Pilot Projects.--
       ``(1) Pilot projects.--In accordance with subsection (b) 
     and from funds appropriated pursuant to paragraph (10), the 
     Secretary shall establish and carry out not more than 10 
     pilot projects to establish a system of industry-validated 
     national certifications of skills, including--
       ``(A) not more than 8 national certifications of skills in 
     high-technology industries, including biotechnology, 
     telecommunications, highly automated manufacturing (including 
     semiconductors), nanotechnology, and energy technology; and
       ``(B) not more than 2 cross-disciplinary national 
     certifications of skills in homeland security technology.
       ``(2) Grants to eligible entities.--In carrying out the 
     pilot projects, the Secretary shall make grants to eligible 
     entities, for periods of not less than 36 months and not more 
     than 48 months, to carry out the authorized activities 
     described in paragraph (7) with respect to the certifications 
     described in paragraph (1). In awarding grants under this 
     subsection the Secretary shall take into consideration 
     awarding grants to eligible entities from diverse geographic 
     areas, including rural areas.
       ``(3) Eligible entities.--
       ``(A) Definition of eligible entity.--In this subsection 
     the term `eligible entity' means an entity that shall work in 
     conjunction with a local board and shall include as a 
     principal participant 1 or more of the following:
       ``(i) An educational institution, including a 2- or 4-year 
     college, or a technical or vocational school.
       ``(ii) An advanced technology education center.
       ``(iii) A local board.

[[Page S5134]]

       ``(iv) A representative of a business in a target industry 
     for the certification involved.
       ``(v) A representative of an industry association, labor 
     organization, or community development organization.
       ``(B) History of demonstrated capability required.--To be 
     eligible to receive a grant under this subsection, an 
     eligible entity shall have a history of demonstrated 
     capability for effective collaboration with industry on 
     workforce investment activities that is consistent with the 
     objectives of this title.
       ``(4) Applications.--To be eligible to receive a grant 
     under this subsection, an eligible entity shall submit an 
     application to the Secretary at such time, in such manner, 
     and containing such information as the Secretary may require.
       ``(5) Criteria.--The Secretary shall establish criteria, 
     consistent with paragraph (6), for awarding grants under this 
     subsection.
       ``(6) Priority.--In selecting eligible entities to receive 
     grants under this subsection, the Secretary shall give 
     priority to eligible entities that demonstrate the 
     availability of and ability to provide matching funds from 
     industry or nonprofit sources. Such matching funds may be 
     provided in cash or in kind.
       ``(7) Authorized activities.--
       ``(A) In general.--An eligible entity that receives a grant 
     under this subsection shall use the funds made available 
     through the grant--
       ``(i) to facilitate the establishment of certification 
     requirements for a certification described in paragraph (1) 
     for an industry;
       ``(ii) to develop and initiate a certification program that 
     includes preparatory courses, course materials, procedures, 
     and examinations, for the certification; and
       ``(iii) to collect and analyze data related to the program 
     at the program's completion, and to identify best practices 
     (consistent with paragraph (8)) that may be used by State and 
     local workforce investment boards in the future.
       ``(B) Basis for requirements.--The certification 
     requirements established under the grant shall be based on 
     applicable skill standards for the industry involved that 
     have been developed by or linked to national centers of 
     excellence under the National Science Foundation's Advanced 
     Technological Education Program. The requirements shall 
     require an individual to demonstrate an identifiable set of 
     competencies relevant to the industry in order to receive 
     certification. The requirements shall be designed to provide 
     evidence of a transferable skill set that allows flexibility 
     and mobility of workers within a high technology industry.
       ``(C) Relationship to training and education programs.--The 
     eligible entity shall ensure that--
       ``(i) a training and education program related to 
     competencies for the industry involved, that is flexible in 
     mode and timeframe for delivery and that meets the needs of 
     those seeking the certification, is offered; and
       ``(ii) the certification program is offered at the 
     completion of the training and education program.
       ``(D) Relationship to the associate degree.--The eligible 
     entity shall ensure that the certification program is 
     consistent with the requirements for a 2-year associate 
     degree.
       ``(E) Availability.--The eligible entity shall ensure that 
     the certification program is open to students pursuing 
     associate degrees, employed workers, and displaced workers.
       ``(8) Consultation.--The Secretary shall consult with the 
     Director of the National Science Foundation to ensure that 
     the pilot projects build on the expertise and information 
     about best practices gained through the implementation of the 
     National Science Foundation's Advanced Technological 
     Education Program.
       ``(9) Core components; guidelines; reports.--After 
     collecting and analyzing the data obtained from the pilot 
     programs, the Secretary shall--
       ``(A) establish the core components of a model high-
     technology certification program;
       ``(B) establish guidelines to assure development of a 
     uniform set of standards and policies for such programs;
       ``(C) prepare and submit a report on the pilot projects to 
     the Committee on Health, Education, Labor, and Pensions of 
     the Senate and the Committee on Education and the Workforce 
     of the House of Representatives; and
       ``(D) make available to the public both the data and the 
     report.
       ``(10) Authorization of appropriations.--In addition to 
     amounts authorized to be appropriated under section 174(b), 
     there is authorized to be appropriated $30,000,000 for fiscal 
     year 2006 to carry out this subsection.''.
       (e) Integrated Workforce Training Programs for Adults With 
     Limited English Proficiency.--Section 171 (29 U.S.C. 2916), 
     as amended by subsection (d), is further amended by adding at 
     the end the following:
       ``(f) Integrated Workforce Training Programs for Adults 
     With Limited English Proficiency.--
       ``(1) Definitions.--In this subsection:
       ``(A) Integrated workforce training.--The term `integrated 
     workforce training' means training that integrates 
     occupational skills training with language acquisition.
       ``(B) Secretary.--The term `Secretary' means the Secretary 
     of Labor in consultation with the Secretary of Education.
       ``(2) Demonstration project.--In accordance with subsection 
     (b) and from funds appropriated pursuant to paragraph (11), 
     the Secretary shall establish and implement a national 
     demonstration project designed to both analyze and provide 
     data on workforce training programs that integrate English 
     language acquisition and occupational training.
       ``(3) Grants.--
       ``(A) In general.--In carrying out the demonstration 
     project, the Secretary shall make not less than 10 grants, on 
     a competitive basis, to eligible entities to provide the 
     integrated workforce training programs. In awarding grants 
     under this subsection the Secretary shall take into 
     consideration awarding grants to eligible entities from 
     diverse geographic areas, including rural areas.
       ``(B) Periods.--The Secretary shall make the grants for 
     periods of not less than 24 months and not more than 48 
     months.
       ``(4) Eligible entities.--
       ``(A) In general.--To be eligible to receive a grant under 
     this subsection, an eligible entity shall work in conjunction 
     with a local board and shall include as a principal 
     participant 1 or more of the following:
       ``(i) An employer or employer association.
       ``(ii) A nonprofit provider of English language 
     instruction.
       ``(iii) A provider of occupational or skills training.
       ``(iv) A community-based organization.
       ``(v) An educational institution, including a 2- or 4-year 
     college, or a technical or vocational school.
       ``(vi) A labor organization.
       ``(vii) A local board.
       ``(B) Expertise.--To be eligible to receive a grant under 
     this subsection, an eligible entity shall have proven 
     expertise in--
       ``(i) serving individuals with limited English proficiency, 
     including individuals with lower levels of oral and written 
     English; and
       ``(ii) providing workforce programs with training and 
     English language instruction.
       ``(5) Applications.--
       ``(A) In general.--To be eligible to receive a grant under 
     this subsection, an eligible entity shall submit an 
     application to the Secretary at such time, in such manner, 
     and containing such information as the Secretary may require.
       ``(B) Contents.--Each application submitted under 
     subparagraph (A) shall--
       ``(i) contain information, including capability statements, 
     that demonstrates that the eligible entity has the expertise 
     described in paragraph (4)(B); and
       ``(ii) include an assurance that the program to be assisted 
     shall--

       ``(I) establish a generalized adult bilingual workforce 
     training and education model that integrates English language 
     acquisition and occupational training, and incorporates the 
     unique linguistic and cultural factors of the participants;
       ``(II) establish a framework by which the employer, 
     employee, and other relevant members of the eligible entity 
     can create a career development and training plan that 
     assists both the employer and the employee to meet their 
     long-term needs;
       ``(III) ensure that the framework established under 
     subclause (II) takes into consideration the knowledge, 
     skills, and abilities of the employee with respect to both 
     the current and economic conditions of the employer and 
     future labor market conditions relevant to the local area; 
     and
       ``(IV) establish identifiable measures so that the progress 
     of the employee and employer and the relative efficacy of the 
     program can be evaluated and best practices identified.

       ``(6) Criteria.--The Secretary shall establish criteria for 
     awarding grants under this subsection.
       ``(7) Integrated workforce training programs.--
       ``(A) Program components.--
       ``(i) Required components.--Each program that receives 
     funding under this subsection shall--

       ``(I) test an individual's English language proficiency 
     levels to assess oral and literacy gains from the beginning 
     and throughout program enrollment;
       ``(II) combine training specific to a particular occupation 
     or occupational cluster, with--

       ``(aa) English language instruction, such as instruction 
     through an English as a Second Language program, or an 
     English for Speakers of Other Languages program;
       ``(bb) basic skills instruction; and
       ``(cc) supportive services;

       ``(III) effectively integrate public and private sector 
     entities, including the local workforce investment system and 
     its functions, to achieve the goals of the program; and
       ``(IV) require matching or in-kind resources from private 
     and nonprofit entities.

       ``(ii) Permissible components.--The program may offer other 
     services, as necessary to promote successful participation 
     and completion, including work-based learning, substance 
     abuse treatment, and mental health services.
       ``(B) Goal.--Each program that receives funding under this 
     subsection shall be designed to prepare limited English 
     proficient adults for, and place such adults in employment 
     in, growing industries with identifiable career ladder paths.

[[Page S5135]]

       ``(C) Program types.--In selecting programs to receive 
     funding under this subsection, the Secretary shall select 
     programs that meet 1 or more of the following criteria:
       ``(i) A program that--

       ``(I) serves unemployed, limited English proficient 
     individuals with significant work experience or substantial 
     education but persistently low wages; and
       ``(II) aims to prepare such individuals for, and place such 
     individuals in, higher paying employment, defined for 
     purposes of this subparagraph as employment that provides at 
     least 75 percent of the median wage in the local area.

       ``(ii) A program that--

       ``(I) serves limited English proficient individuals with 
     lower levels of oral and written fluency, who are working but 
     at persistently low wages; and
       ``(II) aims to prepare such individuals for, and place such 
     individuals in, higher paying employment, through services 
     provided at the worksite, or at a location central to several 
     work sites, during work hours.

       ``(iii) A program that--

       ``(I) serves unemployed, limited English proficient 
     individuals with lower levels of oral and written fluency, 
     who have little or no work experience; and
       ``(II) aims to prepare such individuals for, and place such 
     individuals in, employment through services that include 
     subsidized employment, in addition to the components required 
     in subparagraph (A)(i).

       ``(iv) A program that includes funds from private and 
     nonprofit entities.
       ``(D) Program approaches.--In selecting programs to receive 
     funding under this subsection, the Secretary shall select 
     programs with different approaches to integrated workforce 
     training, in different contexts, in order to obtain 
     comparative data on multiple approaches to integrated 
     workforce training and English language instruction, to 
     ensure programs are tailored to characteristics of 
     individuals with varying skill levels, and to assess how 
     different curricula work for limited English proficient 
     populations. Such approaches may include--
       ``(i) bilingual programs in which the workplace language 
     component and the training are conducted in a combination of 
     an individual's native language and English;
       ``(ii) integrated workforce training programs that combine 
     basic skills, language instruction, and job specific skills 
     training; or
       ``(iii) sequential programs that provide a progression of 
     skills, language, and training to ensure success upon an 
     individual's completion of the program.
       ``(8) Evaluation by eligible entity.--Each eligible entity 
     that receives a grant under this subsection for a program 
     shall carry out a continuous program evaluation and an 
     evaluation specific to the last phase of the program 
     operations.
       ``(9) Evaluation by secretary.--
       ``(A) In general.--The Secretary shall conduct an 
     evaluation of program impacts of the programs funded under 
     the demonstration project, with a random assignment, 
     experimental design impact study done at each worksite at 
     which such a program is carried out.
       ``(B) Data collection and analysis.--The Secretary shall 
     collect and analyze the data from the demonstration project 
     to determine program effectiveness, including gains in 
     language proficiency, acquisition of skills, and job 
     advancement for program participants.
       ``(C) Report.--The Secretary shall prepare and submit to 
     the Committee on Health, Education, Labor, and Pensions of 
     the Senate and the Committee on Education and the Workforce 
     of the House of Representatives, and make available to the 
     public, a report on the demonstration project, including the 
     results of the evaluation.
       ``(10) Technical assistance.--The Secretary shall provide 
     technical assistance to recipients of grants under this 
     subsection throughout the grant periods.
       ``(11) Authorization of appropriations.--In addition to 
     amounts authorized to be appropriated under section 174(b), 
     there is authorized to be appropriated $10,000,000 for fiscal 
     year 2006 to carry out this subsection.''.
       (f) Community-Based Job Training.--Section 171 (29 U.S.C. 
     2916), as amended by subsection (e), is further amended by 
     adding at the end the following:
       ``(g) Community-Based Job Training.--
       ``(1) Definitions.--In this subsection:
       ``(A) Community college.--The term `community college' 
     means--
       ``(i) an institution of higher education, as defined in 
     section 101 of the Higher Education Act of 1965 (20 U.S.C. 
     1001), that provides a 2-year degree that is acceptable for 
     full credit toward a bachelor's degree; or
       ``(ii) a tribally controlled college or university, as 
     defined in section 2 of the Tribally Controlled College or 
     University Assistance Act of 1978 (25 U.S.C. 1801).
       ``(B) Eligible entity.--The term `eligible entity' means a 
     community college or a consortium composed of a community 
     college and an institution of higher education, that shall 
     work with--
       ``(i) a local board;
       ``(ii) a business in the qualified industry or an industry 
     association in the qualified industry, as identified in the 
     application of the entity; and
       ``(iii) an economic development entity.
       ``(C) Institution of higher education.--Except as otherwise 
     provided in subparagraph (A)(i), the term `institution of 
     higher education' has the meaning given the term in section 
     101 of the Higher Education Act of 1965 (20 U.S.C. 1001) and 
     the meaning given the term postsecondary vocational 
     institution in section 102(a)(1)(B) of such Act (20 U.S.C. 
     1002(a)(1)(B)).
       ``(D) Qualified industry.--The term `qualified industry' 
     means an industry or economic sector that is projected to 
     experience significant growth, such as an industry or 
     economic sector that--
       ``(i) is projected to add substantial numbers of new jobs 
     to the regional economy;
       ``(ii) has or is projected to have significant impact on 
     the regional economy;
       ``(iii) impacts or is projected to impact the growth of 
     other industries or economic sectors in the regional economy;
       ``(iv) is being transformed by technology and innovation 
     requiring new knowledge or skill sets for workers;
       ``(v) is a new or emerging industry or economic sector that 
     is projected to grow; or
       ``(vi) requires high skills and has significant labor 
     shortages in the regional economy.
       ``(2) Demonstration project.--In addition to the 
     demonstration projects authorized under subsection (b), the 
     Secretary may establish and implement a national 
     demonstration project designed--
       ``(A) to develop local innovative solutions to the 
     workforce challenges facing high-growth, high-skill 
     industries with labor shortages; and
       ``(B) to increase employment opportunities for workers in 
     high-growth, high-demand occupations by establishing 
     partnerships among education entities, the workforce 
     investment system, and businesses in high-growth, high-skill 
     industries or sectors.
       ``(3) Grants.--In carrying out the national demonstration 
     project authorized under this subsection, the Secretary shall 
     award grants, on a competitive basis, for 2, 3, or 4 years, 
     in accordance with generally applicable Federal requirements, 
     to eligible entities to enable the eligible entities to carry 
     out activities authorized under this subsection.
       ``(4) Applications.--To be eligible to receive a grant 
     under this subsection, an eligible entity shall submit an 
     application to the Secretary at such time, in such manner, 
     and containing such information as the Secretary may require, 
     including--
       ``(A) a description of the eligible entity that will offer 
     training under the grant;
       ``(B) a justification of the need for discretionary funding 
     under the grant, including the need for external funds to 
     create a program to carry out the activities described in 
     paragraph (6);
       ``(C) an economic analysis of the local labor market to 
     identify--
       ``(i) high-growth, high-demand industries;
       ``(ii) the workforce issues faced by such industries; and
       ``(iii) potential participants in programs funded under 
     this subsection;
       ``(D) a description of the qualified industry for which the 
     training will occur, the availability of competencies on 
     which the training will be based, and how the grant will help 
     workers acquire the competencies and skills necessary for 
     employment;
       ``(E) a description of the involvement of the local board 
     and businesses, including small businesses, in the geographic 
     area where the proposed grant will be implemented;
       ``(F) performance measures for the grant, including the 
     expected number of individuals to be trained in a qualified 
     industry, the employment and retention rates for such 
     individuals in a qualified industry, and initial earnings and 
     earnings increases for such individuals;
       ``(G) a description of how the activities funded by the 
     grant will be coordinated with activities provided through 
     the one-stop center in the local area; and
       ``(H) a description of the local or private resources that 
     will--
       ``(i) support the activities carried out under this 
     subsection; and
       ``(ii) enable the entity to carry out and expand such 
     activities after the expiration of the grant.
       ``(5) Factors for award of grant.--
       ``(A) In general.--In awarding grants under this 
     subsection, the Secretary shall consider--
       ``(i) the extent of public and private collaboration, 
     including existing partnerships among qualified industries, 
     the eligible entity, and the public workforce investment 
     system;
       ``(ii) the extent to which the grant will provide job 
     seekers with high-quality training for employment in high-
     growth, high-demand occupations;
       ``(iii) the extent to which the grant will expand the 
     eligible entity and local one-stop center's capacity to be 
     demand-driven and responsive to local economic needs;
       ``(iv) the extent to which local businesses commit to hire, 
     retain, or advance individuals who receive training through 
     the grant; and
       ``(v) the extent to which the eligible entity commits to 
     make any newly developed products, such as skill standards, 
     assessments, or industry-recognized training curricula, 
     available for dissemination nationally.
       ``(B) Leveraging of resources.--In awarding grants under 
     this subsection, the Secretary shall also consider--
       ``(i) the extent to which local or private resources will 
     be made available to support the activities carried out under 
     this subsection, taking into account the resources of the 
     eligible entity and the entity's partners; and

[[Page S5136]]

       ``(ii) the ability of an eligible entity to continue to 
     carry out and expand such activities after the expiration of 
     the grant.
       ``(C) Distribution of grants.--In awarding grants under 
     this subsection, the Secretary shall ensure an equitable 
     distribution of such grants across diverse industries and 
     geographic areas.
       ``(6) Use of funds.--An eligible entity that receives a 
     grant under this subsection--
       ``(A) shall use the grant funds for--
       ``(i) the development by the community college that is a 
     part of the eligible entity in collaboration with other 
     partners identified in the application, and, if applicable, 
     other representatives of qualified industries, of rigorous 
     training and education programs leading to an industry-
     recognized credential or degree and employment in the 
     qualified industry; and
       ``(ii) training of adults, incumbent workers, dislocated 
     workers, or out-of-school youth in the skills and 
     competencies needed to obtain or upgrade employment in a 
     qualified industry identified in the eligible entity's 
     application; and
       ``(B) may use the grant funds for--
       ``(i) disseminating information on training available for 
     high-growth, high-demand occupations in qualified industries 
     through the one-stop delivery system to prospective 
     participants, businesses, business intermediaries, and 
     community-based organizations in the region, including 
     training available through the grant;
       ``(ii) referring individuals trained under the grant for 
     employment in qualified industries;
       ``(iii) enhancing integration of community colleges, 
     training and education with businesses, and the one-stop 
     system to meet the training needs of qualified industries for 
     new and incumbent workers;
       ``(iv) providing training and relevant job skills to small 
     business owners or operators to facilitate small business 
     development in high-growth industries; or
       ``(v) expanding or creating programs for distance, evening, 
     weekend, modular, or compressed learning opportunities that 
     provide relevant skill training in high-growth, high-demand 
     industries.
       ``(7) Authority to require non-federal share.--The 
     Secretary may require that recipients of grants under this 
     subsection provide a non-Federal share, from either cash or 
     noncash resources, of the costs of activities carried out 
     under a grant awarded under this subsection.
       ``(8) Performance accountability and evaluation.--
       ``(A) Performance accountability.--The Secretary shall 
     require an eligible entity that receives a grant under this 
     subsection to submit an interim and final report to the 
     Secretary on the impact on business partners and employment 
     outcomes obtained by individuals receiving training under 
     this subsection using the performance measures identified in 
     the eligible entity's grant application.
       ``(B) Evaluation.--The Secretary shall require that an 
     eligible entity that receives a grant under this subsection 
     participate in an evaluation of activities carried out under 
     this subsection, including an evaluation using the techniques 
     described in section 172(c).''.

     SEC. 147. NATIONAL DISLOCATED WORKER GRANTS.

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

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

       and
       (2) in subsection (a)--
       (A) by striking the matter preceding paragraph (1) and 
     inserting the following:
       ``(a) In General.--The Secretary is authorized to award 
     national dislocated worker grants--'';
       (B) in paragraph (1), by striking ``subsection (c)'' and 
     inserting ``subsection (b)'';
       (C) in paragraph (3), by striking ``and'' after the 
     semicolon; and
       (D) by striking paragraph (4) and inserting the following:
       ``(4) to a State or entity (as defined in subsection 
     (b)(1)(B)) to carry out subsection (e), including providing 
     assistance to eligible individuals;
       ``(5) to a State or entity (as defined in subsection 
     (b)(1)(B)) to carry out subsection (f), including providing 
     assistance to eligible individuals;
       ``(6) to provide additional assistance to a State board or 
     local board where a higher than average demand for employment 
     and training activities for dislocated members of the Armed 
     Forces, or spouses, as described in section 101(11)(E), of 
     members of the Armed Forces, described in subsection 
     (b)(2)(A)(iv), exceeds State and local resources for 
     providing such services, and where such programs are to be 
     carried out in partnership with the Department of Defense and 
     Department of Veterans Affairs transition assistance 
     programs; and
       ``(7) to provide assistance to a State for statewide or 
     local use in order to--
       ``(A) address cases in which there have been worker 
     dislocations across multiple sectors, across multiple 
     businesses within a sector, or across multiple local areas, 
     and such workers remain dislocated;
       ``(B) meet emerging economic development needs; and
       ``(C) train eligible individuals who are dislocated workers 
     described in subparagraph (A).
     The Secretary shall issue a final decision on an application 
     for a national dislocated worker grant under this subsection 
     not later than 45 calendar days after receipt of the 
     application. The Secretary shall issue a notice of obligation 
     for such a grant not later than 10 days after the award of 
     the grant.''.
       (b) Administration and Additional Assistance.--Section 173 
     (29 U.S.C. 2918) is amended--
       (1) by striking subsection (b);
       (2) by redesignating subsections (c) through (g) as 
     subsections (b) through (f), respectively;
       (3) in paragraph (2) of subsection (b) (as redesignated by 
     paragraph (2))--
       (A) in subparagraph (A), in the matter preceding clause 
     (i), by striking ``national emergency grant'' and inserting 
     ``national dislocated worker grant''; and
       (B) in subparagraph (C), by striking ``national emergency 
     grants'' and inserting ``national dislocated worker grants'';
       (4) by striking subsection (d) (as redesignated by 
     paragraph (2)) and inserting the following:
       ``(d) Additional Assistance.--
       ``(1) In general.--From the amount appropriated and made 
     available to carry out this section for any program year, the 
     Secretary shall use not more than $20,000,000 to make grants 
     to States to provide employment and training activities under 
     section 134, in accordance with subtitle B.
       ``(2) Eligible states.--The Secretary shall make a grant 
     under paragraph (1) to a State for a program year if--
       ``(A) the amount of the allotment that was made to the 
     State for the program year 2003 under the formula specified 
     in section 132(b)(1)(B) as such section was in effect on July 
     1, 2003, is greater than
       ``(B) the amount of the allotment that would be made to the 
     State for the program year under the formula specified in 
     section 132(b)(1)(B).
       ``(3) Amount of grants.--Subject to paragraph (1), the 
     amount of the grant made under paragraph (1) to a State for a 
     program year shall be based on the difference between--
       ``(A) the amount of the allotment that was made to the 
     State for the program year 2003 under the formula specified 
     in section 132(b)(1)(B) as such section was in effect on July 
     1, 2003; and
       ``(B) the amount of the allotment that would be made to the 
     State for the program year under the formula specified in 
     section 132(b)(1)(B).'';
       (5) in subsection (e) (as redesignated by paragraph (2))--
       (A) in paragraph (1), by striking ``paragraph (4)(A)'' and 
     inserting ``paragraph (4)'';
       (B) in paragraph (2), by striking ``subsection (g)'' and 
     inserting ``subsection (f)'';
       (C) in paragraph (3)(B), by striking ``subsection 
     (a)(4)(A)'' and inserting ``subsection (a)(4)'';
       (D) in paragraph (4), by striking ``subsection (g)'' and 
     inserting ``subsection (f)'';
       (E) in paragraph (5), by striking ``subsection (g)'' and 
     inserting ``subsection (f)''; and
       (F) in paragraph (6)--
       (i) by striking ``subsection (g)'' and inserting 
     ``subsection (f)''; and
       (ii) by striking ``subsection (c)(1)(B)'' and inserting 
     ``subsection (b)(1)(B)''; and
       (6) in subsection (f) (as redesignated by paragraph (2))--
       (A) in paragraph (1)--
       (i) by striking ``paragraph (4)(B)'' and inserting 
     ``paragraph (5)''; and
       (ii) by striking ``subsection (f)(1)(A)'' and inserting 
     ``subsection (e)(1)(A)''; and
       (B) in paragraph (4)(B), by striking ``subsection 
     (a)(4)(B)'' and inserting ``subsection (a)(5)''.

     SEC. 148. AUTHORIZATION OF APPROPRIATIONS FOR NATIONAL 
                   ACTIVITIES.

       (a) In General.--Section 174(a)(1) (29 U.S.C. 2919(a)(1)) 
     is amended by striking ``1999 through 2003'' and inserting 
     ``2006 through 2011''.
       (b) Reservations.--Section 174(b) (29 U.S.C. 2919(b)) is 
     amended to read as follows:
       ``(b) Technical Assistance; Demonstration and Pilot 
     Projects, Evaluations, Incentive Grants.--
       ``(1) In general.--Subject to paragraph (2), there are 
     authorized to be appropriated to carry out sections 170 
     through 172, section 136(i), and section 503 such sums as may 
     be necessary for each of fiscal years 2006 through 2011.
       ``(2) Reservation.--Of the amount appropriated pursuant to 
     the authorization of appropriations under paragraph (1) for a 
     fiscal year, the Secretary shall, for each of the fiscal 
     years 2006 through 2011, reserve not less than 25 percent for 
     carrying out section 503.''.
       (c) Assistance for Eligible Workers.--Section 174(c) (29 
     U.S.C. 2919(c)) is amended--
       (1) in paragraphs (1)(A) and (2)(A), by striking 
     ``subsection (a)(4)(A)'' and inserting ``subsection (a)(4)''; 
     and
       (2) in paragraphs (1)(B) and (2)(B), by striking 
     ``subsection (a)(4)(B)'' and inserting ``subsection (a)(5)''.

                       Subtitle E--Administration

     SEC. 151. REQUIREMENTS AND RESTRICTIONS.

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

     SEC. 152. REPORTS.

       Section 185(c) (29 U.S.C. 2935(c)) is amended--

[[Page S5137]]

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

     SEC. 153. ADMINISTRATIVE PROVISIONS.

       (a) Annual Report.--Section 189(d) (29 U.S.C. 2939(d)) is 
     amended--
       (1) in paragraph (3), by striking ``and'' after the 
     semicolon;
       (2) by redesignating paragraph (4) as paragraph (5); and
       (3) by inserting after paragraph (3) the following:
       ``(4) the negotiated levels of performance of the States, 
     the States' requests for adjustments of such levels, and the 
     adjustments of such levels that are made; and''.
       (b) Availability.--Section 189(g)(2) (29 U.S.C. 2939(g)(2)) 
     is amended, in the first sentence--
       (1) by striking ``Funds'' and inserting ``Except as 
     otherwise provided in this paragraph, funds''; and
       (2) by striking ``each State receiving'' and inserting 
     ``each recipient of''.
       (c) General Waivers.--Section 189(i)(4) (29 U.S.C. 
     2939(i)(4)) is amended--
       (1) in subparagraph (A)(i), by inserting ``the funding of 
     infrastructure costs for one-stop centers,'' after ``local 
     boards,'';
       (2) in subparagraph (C), by striking ``90'' and inserting 
     ``60''; and
       (3) by adding at the end the following:
       ``(D) Expedited requests.--The Secretary shall expedite 
     requests for waivers of statutory or regulatory requirements 
     that have been approved for a State pursuant to subparagraph 
     (B), if the requirements of this paragraph have been 
     satisfied.
       ``(E) Special rule.--With respect to any State that has a 
     waiver under this paragraph relating to the transfer 
     authority under section 133(b)(4), and has the waiver in 
     effect on the date of enactment of the Workforce Investment 
     Act Amendments of 2005 or subsequently receives such a 
     waiver, the waiver shall continue to apply for so long as the 
     State meets or exceeds State performance measures relating to 
     the indicators described in section 136(b)(2)(A)(i).''.

     SEC. 154. USE OF CERTAIN REAL PROPERTY.

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

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

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

     SEC. 155. GENERAL PROGRAM REQUIREMENTS.

       Section 195 (29 U.S.C. 2945) is amended by adding at the 
     end the following:
       ``(14) Funds provided under this title shall not be used to 
     establish or operate fee-for-service enterprises that are not 
     affiliated with the one-stop service delivery systems 
     described in section 121(e) and that compete with private 
     sector employment agencies (as defined in section 701 of the 
     Civil Rights Act of 1964 (42 U.S.C. 2000e)).''.

     SEC. 156. TABLE OF CONTENTS.

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

``Sec. 106. Purposes.'';

       (2) by striking the item relating to section 123 and 
     inserting the following:

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

       (3) by striking the item relating to section 169 and 
     inserting the following:

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

       (4) by striking the item relating to section 173 and 
     inserting the following:

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

       (5) by striking the item relating to section 193 and 
     inserting the following:

``Sec. 193. Transfer of Federal equity in State employment security 
              agency real property to the States.'';

       (6) by inserting after the item relating to section 243 the 
     following:

``Sec. 244. Integrated English literacy and civics education.'';

       and
       (7) by striking the item relating to section 502.

                      Subtitle F--Incentive Grants

     SEC. 161. INCENTIVE GRANTS.

       Section 503 (20 U.S.C. 9273) is amended--
       (1) by striking subsection (a) and inserting the following:
       ``(a) In General.--
       ``(1) Timeline.--
       ``(A) Prior to july 1, 2006.--Prior to July 1, 2006, the 
     Secretary shall award a grant to each State in accordance 
     with the provisions of this section as this section was in 
     effect on July 1, 2003.
       ``(B) Beginning july 1, 2006.--Beginning on July 1, 2006, 
     the Secretary shall award incentive grants to States for 
     performance described in paragraph (2) in carrying out 
     innovative programs consistent with the programs under 
     chapters 4 and 5 of subtitle B of title I, to implement or 
     enhance innovative and coordinated programs consistent with 
     the statewide economic, workforce, and educational interests 
     of the State.
       ``(2) Basis.--The Secretary shall award the grants on the 
     basis that States--
       ``(A) have exceeded the State adjusted levels of 
     performance for title I, the adjusted levels of performance 
     for title II, and the levels of performance under the Carl D. 
     Perkins Vocational and Technical Education Act of 1998 (20 
     U.S.C. 2301 et seq.); or
       ``(B) have--
       ``(i) met the State adjusted levels of performance for 
     title I, the adjusted levels of performance for title II, and 
     the levels of performance under the Carl D. Perkins 
     Vocational and Technical Education Act of 1998 (20 U.S.C. 
     2301 et seq.); and
       ``(ii) demonstrated--

       ``(I) exemplary coordination of Federal workforce and 
     education programs, statewide economic development, or 
     business needs;
       ``(II) exemplary performance in serving hard-to-serve 
     populations; or
       ``(III) effective--

       ``(aa) coordination of multiple systems into a 
     comprehensive workforce investment system, including 
     coordination of employment activities under the Wagner-Peyser 
     Act (29 U.S.C. 49 et seq.) and core activities under title I 
     as well as one-stop partner programs described in section 
     121;
       ``(bb) expansion of access to training, including through 
     increased leveraging of resources other than those funded 
     through programs under title I;
       ``(cc) implementation of statewide coordination activities 
     through agreements with relevant State agencies and offices, 
     including those responsible for programs under the Adult 
     Education and Family Literacy Act (20 U.S.C. 9201 et seq.) 
     and the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.);
       ``(dd) statewide coordination through local workforce 
     investment boards or areas;
       ``(ee) alignment of management information systems to 
     integrate participant information across programs; or
       ``(ff) integration of performance information systems and 
     common measures for accountability across workforce and 
     education programs.
       ``(3) Use of funds.--The funds awarded to a State under 
     this section may be used to carry out activities authorized 
     for States under chapters 4 and 5 of subtitle B of title I, 
     title II, and the Carl D. Perkins Vocational and Technical 
     Education Act of 1998 (20 U.S.C. 2301 et seq.), including 
     demonstration projects, and for such innovative projects or 
     programs that increase coordination and enhance service to 
     program participants, particularly hard-to-serve populations, 
     including--
       ``(A) activities that support business needs, especially 
     for incumbent workers and enhancing opportunities for 
     retention and advancement;
       ``(B) activities that support linkages with secondary, 
     postsecondary, or career and technical education programs, 
     including activities under the Carl D. Perkins Vocational and 
     Technical Education Act of 1998 (20 U.S.C. 2301 et seq.), the 
     Adult Education and Family Literacy Act (20 U.S.C. 9201 et 
     seq.), and the Rehabilitation Act of 1973 (29 U.S.C. 701 et 
     seq.);
       ``(C) activities that support statewide economic 
     development plans that support high-wage, high-skill, or 
     high-demand occupations leading to self-sufficiency;
       ``(D) activities that coordinate workforce investment 
     programs with other Federal and State programs related to the 
     activities under this Act;
       ``(E) activities that support the development of a 
     statewide integrated performance information system that 
     includes common measures;
       ``(F) activities that align management information systems 
     with integrated performance information across education and 
     workforce programs; or
       ``(G) activities that support local workforce investment 
     boards or areas in improving performance and program 
     coordination.
       ``(4) Waiver.--For States that have developed and 
     implemented a statewide integrated performance information 
     system with common measures, as described in paragraph 
     (3)(E), for federally funded workforce and education 
     programs, the Secretary may waive specified Federal reporting 
     requirements for such State to be in compliance with 
     reporting requirements under this Act and other workforce and 
     education programs as the Secretary has authority or 
     agreement to waive.

[[Page S5138]]

       ``(5) Technical assistance.--The Secretary shall reserve 4 
     percent of the funds available for grants under this section 
     to provide technical assistance to States to replicate best 
     practices or to develop integrated performance information 
     systems and strengthen coordination with education and 
     economic development.''; and
       (2) by striking subsection (d).

                   Subtitle G--Conforming Amendments

     SEC. 171. CONFORMING AMENDMENTS.

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

  TITLE II--AMENDMENTS TO THE ADULT EDUCATION AND FAMILY LITERACY ACT

     SEC. 201. SHORT TITLE; PURPOSE.

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

     SEC. 202. DEFINITIONS.

       Section 203 of the Adult Education and Family Literacy Act 
     (20 U.S.C. 9202) is amended--
       (1) in paragraph (1)--
       (A) in the matter preceding subparagraph (A), by striking 
     ``services or instruction below the postsecondary level'' and 
     inserting ``academic instruction and education services below 
     the postsecondary level that increase an individual's ability 
     to read, write, and speak in English and perform 
     mathematics''; and
       (B) by striking subparagraph (C)(i) and inserting the 
     following:
       ``(i) are basic skills deficient as defined in section 
     101;'';
       (2) in paragraph (2), by striking ``activities described in 
     section 231(b)'' and inserting ``programs and services which 
     include reading, writing, speaking, or mathematics skills, 
     workplace literacy activities, family literacy activities, 
     English language acquisition activities, or other activities 
     necessary for the attainment of a secondary school diploma or 
     its State recognized equivalent'';
       (3) in paragraph (5)--
       (A) by inserting ``an organization that has demonstrated 
     effectiveness in providing adult education, that may 
     include'' after ``means'';
       (B) in subparagraph (B), by striking ``of demonstrated 
     effectiveness'';
       (C) in subparagraph (C), by striking ``of demonstrated 
     effectiveness''; and
       (D) in subparagraph (I), by inserting ``or coalition'' 
     after ``consortium'';
       (4) in paragraph (6)--
       (A) by striking ``literacy program'' and inserting 
     ``language acquisition program'';
       (B) by striking ``literacy program'' and inserting 
     ``language acquisition program''; and
       (C) by inserting ``reading, writing, and speaking'' after 
     ``competence in'';
       (5) by striking paragraph (10);
       (6) by redesignating paragraphs (7) through (9) and (12) 
     through (18) as paragraphs (8) through (10) and (13) through 
     (19), respectively;
       (7) by inserting after paragraph (6) the following:
       ``(7) Essential components of reading instruction.--The 
     term `essential components of reading instruction' has the 
     meaning given the term in section 1208 of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 6368).'';
       (8) by inserting after paragraph (11) the following:
       ``(12) Limited english proficiency.--The term `limited 
     English proficiency', when used with respect to an 
     individual, means an adult or out-of-school youth who has 
     limited ability in speaking, reading, writing, 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) by striking paragraph (15), as redesignated by 
     paragraph (6), and inserting the following:
       ``(15) Outlying area.--The term `outlying area' means the 
     United States Virgin Islands, Guam, American Samoa, and the 
     Commonwealth of the Northern Mariana Islands.''; and
       (10) by striking paragraph (19), as redesignated by 
     paragraph (6), and inserting the following:
       ``(19) Workplace literacy program.--The term `workplace 
     literacy program' means an educational program designed to 
     improve the productivity of the workforce through the 
     improvement of literacy skills that is offered by an eligible 
     provider in collaboration with an employer or an employee 
     organization at a workplace, at an off-site location, or in a 
     simulated workplace environment.''.

     SEC. 203. HOME SCHOOLS.

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

     ``SEC. 204. HOME SCHOOLS.

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

     SEC. 204. AUTHORIZATION OF APPROPRIATIONS.

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

     SEC. 205. RESERVATION OF FUNDS; GRANTS TO ELIGIBLE AGENCIES; 
                   ALLOTMENTS.

       Section 211 of the Adult Education and Family Literacy Act 
     (20 U.S.C. 9211) is amended--
       (1) by striking subsection (a) and inserting the following:
       ``(a) Reservation of Funds.--From the sum appropriated 
     under section 205 for a fiscal year, the Secretary--
       ``(1) shall reserve 1.5 percent to carry out section 242, 
     except that the amount so reserved shall not exceed 
     $10,000,000;
       ``(2) shall reserve 1.5 percent to carry out section 243 
     and subsection (f)(4), except that the amount so reserved 
     shall not exceed $8,000,000;
       ``(3) shall make available, to the Secretary of Labor, 1.72 
     percent for incentive grants under section 136(i); and
       ``(4) shall reserve 12 percent of the amount that remains 
     after reserving funds under paragraphs (1), (2) and (3) to 
     carry out section 244.'';
       (2) in subsection (c)(2)--
       (A) by inserting ``and the sole agency responsible for 
     administering or supervising policy for adult education and 
     literacy in the Republic of Palau'' after ``an initial 
     allotment under paragraph (1)'';
       (B) by inserting ``or served by the agency for the Republic 
     of Palau'' after ``by the eligible agency''; and
       (C) by striking ``States and outlying areas'' and inserting 
     ``States, outlying areas, and the Republic of Palau'';
       (3) in subsection (e)--
       (A) in paragraph (1)--
       (i) by striking ``the Republic of the Marshall Islands, the 
     Federated States of Micronesia, and''; and
       (ii) by striking ``the Republic of the Marshall Islands, 
     the Federated States of Micronesia, or'' and inserting 
     ``or''; and
       (B) in paragraph (3)--
       (i) by striking ``the Republic of the Marshall Islands, the 
     Federated States of Micronesia, and''; and
       (ii) by striking ``2001'' and inserting ``2007''; and
       (4) by striking subsection (f) and inserting the following:
       ``(f) Hold-Harmless Provisions.--
       ``(1) In general.--Notwithstanding subsection (c) and 
     subject to paragraph (2), for fiscal year 2005 and each 
     succeeding fiscal year, no eligible agency shall receive an 
     allotment under this section that is less than 90 percent of 
     the allotment the eligible agency received for the preceding 
     fiscal year under this section.
       ``(2) 100 percent allotment.--Notwithstanding paragraphs 
     (1) and (2) of subsection (e), an eligible agency that 
     receives only an initial allotment under subsection (c)(1) 
     (and no additional allotment under subsection (c)(2)) shall 
     receive an allotment under this section that is equal to 100 
     percent of the initial allotment under subsection (c)(1).
       ``(3) Ratable reduction.--If for any fiscal year the amount 
     available for allotment under this subtitle is insufficient 
     to satisfy the provisions of paragraphs (1) and (2), the 
     Secretary shall ratably reduce the payments to all eligible 
     agencies, as necessary.
       ``(4) Additional assistance.--
       ``(A) In general.--From amounts reserved under subsection 
     (a)(2), the Secretary shall make grants to eligible agencies 
     described in subparagraph (B) to enable such agencies to 
     provide activities authorized under chapter 2.
       ``(B) Eligibility.--An eligible agency is eligible to 
     receive a grant under this paragraph for a fiscal year if the 
     amount of the allotment such agency receives under this 
     section for the fiscal year is less than the amount such 
     agency would have received for the fiscal year if the 
     allotment formula under this section as in effect on 
     September 30, 2003, were in effect for such year.
       ``(C) Amount of grant.--The amount of a grant made to an 
     eligible agency under this paragraph for a fiscal year shall 
     be the difference between--
       ``(i) the amount of the allotment such agency would have 
     received for the fiscal

[[Page S5139]]

     year if the allotment formula under this section as in effect 
     on September 30, 2003, were in effect for such year; and
       ``(ii) the amount of the allotment such agency receives 
     under this section for the fiscal year.''.

     SEC. 206. PERFORMANCE ACCOUNTABILITY SYSTEM.

       Section 212 of the Adult Education and Family Literacy Act 
     (20 U.S.C. 9212) is amended--
       (1) in subsection (b)--
       (A) in paragraph (1)(A)(ii), by striking ``additional 
     indicators of performance (if any)'' and inserting ``the 
     employment performance indicators'';
       (B) by striking paragraph (2) and inserting the following:
       ``(2) Indicators of performance.--
       ``(A) Core indicators of performance.--An eligible agency 
     shall identify in the State plan individual academic 
     performance indicators that include, at a minimum, the 
     following:
       ``(i) Measurable improvements in literacy skill levels in 
     reading, writing, and speaking the English language, 
     numeracy, problem solving, English language acquisition, and 
     other literacy skills.
       ``(ii) Placement in, retention in, or completion of, 
     postsecondary education or other training programs.
       ``(iii) Completion of a secondary school diploma, its 
     recognized equivalent, or a recognized alternative standard 
     for individuals with disabilities.
       ``(B) Employment performance indicators.--
       ``(i) In general.--An eligible agency shall identify in the 
     State plan individual participant employment performance 
     indicators that include, at a minimum, the following:

       ``(I) Entry into unsubsidized employment.
       ``(II) Retention in unsubsidized employment 6 months after 
     entry into the employment.
       ``(III) Increases in earnings from unsubsidized employment.

       (ii) Data collection.--The State workforce investment board 
     shall assist the eligible agency in obtaining and using 
     quarterly wage records to collect data for each of the 
     indicators described in clause (i), consistent with 
     applicable Federal and State privacy laws.
       ``(C) Indicators for workplace literacy programs.--Special 
     accountability measures may be negotiated for workplace 
     literacy programs.''; and
       (C) in paragraph (3)--
       (i) in subparagraph (A)--

       (I) in clause (i)(II), by striking ``in performance'' and 
     inserting ``the agency's performance outcomes in an 
     objective, quantifiable, and measurable form'';
       (II) in clause (ii), by striking ``3 programs years'' and 
     inserting ``2 program years'';
       (III) in clause (iii), by striking ``first 3 years'' and 
     inserting ``first 2 years'';
       (IV) in clause (iii), by striking ``first 3 program years'' 
     and inserting ``first 2 program years'';
       (V) in clause (v), by striking ``4th and 5th'' and 
     inserting ``3rd and 4th'';
       (VI) in clause (v), by striking ``to the fourth'' and 
     inserting ``to the third'';
       (VII) in clause (v), by striking ``fourth and fifth'' and 
     inserting ``third and fourth''; and
       (VIII) in clause (vi), by striking ``(II)'' and inserting 
     ``(I)'';

       (ii) in subparagraph (B)--

       (I) by striking the heading and inserting ``Levels of 
     employment performance'';
       (II) by striking ``may'' and inserting ``shall''; and
       (III) by striking ``additional'' and inserting ``employment 
     performance''; and

       (iii) by adding at the end the following:
       ``(C) Alternative assessment systems.--Eligible agencies 
     may approve the use of assessment systems that are not 
     commercially available standardized systems if such systems 
     meet the Standards for Educational and Psychological Testing 
     issued by the Joint Committee on Standards for Educational 
     and Psychological Testing of the American Educational 
     Research Association, the American Psychological Association, 
     and the National Council on Measurement in Education.'';
       (2) in subsection (c)--
       (A) in paragraph (1)--
       (i) by inserting ``the Governor, the State legislature, and 
     the State workforce investment board'' after ``Secretary''; 
     and
       (ii) by striking ``including'' and all that follows through 
     the period and inserting ``including the following:
       ``(A) Information on the levels of performance achieved by 
     the eligible agency with respect to the core indicators of 
     performance, and employment performance indicators.
       ``(B) Information on the number or percentage of qualifying 
     adults (as defined in section 211(d)) who are participants in 
     adult education programs under this subtitle and making 
     satisfactory progress toward 1 or more of each of the 
     following:
       ``(i) Core indicators of performance.
       ``(ii) Employment performance indicators.
       ``(iii) Other long-term objectives.
       ``(C) The number and type of each eligible provider that 
     receives funding under such grant.
       ``(D) The number of enrollees 16 to 18 years of age who 
     enrolled in adult education not later than 1 year after 
     participating in secondary school education.'';
       (B) in paragraph (2)(A), by inserting ``eligible providers 
     and'' after ``available to''; and
       (C) by adding at the end the following:
       ``(3) Data access.--The report made available under 
     paragraph (2) shall indicate which eligible agencies did not 
     have access to State unemployment insurance wage data in 
     measuring employment performance indicators.''; and
       (3) by adding at the end the following:
       ``(d) Program Improvement.--
       ``(1) In general.--If the Secretary determines that an 
     eligible agency did not meet its adjusted levels of 
     performance for the core indicators of performance described 
     in subsection (b)(2)(A) for any program year, the eligible 
     agency shall--
       ``(A) work with the Secretary to develop and implement a 
     program improvement plan for the 2 program years succeeding 
     the program year in which the eligible agency did not meet 
     its adjusted levels of performance; and
       ``(B) revise its State plan under section 224, if 
     necessary, to reflect the changes agreed to in the program 
     improvement plan.
       ``(2) Further assistance.--If, after the period described 
     in paragraph (1)(A), the Secretary has provided technical 
     assistance to the eligible agency but determines that the 
     eligible agency did not meet its adjusted levels of 
     performance for the core indicators of performance described 
     in subsection (b)(2)(A), the Secretary may require the 
     eligible agency to make further revisions to the program 
     improvement plan described in paragraph (1). Such further 
     revisions shall be accompanied by further technical 
     assistance from the Secretary.''.

     SEC. 207. STATE ADMINISTRATION.

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

     SEC. 208. STATE DISTRIBUTION OF FUNDS; MATCHING REQUIREMENT.

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

     SEC. 209. STATE LEADERSHIP ACTIVITIES.

       Section 223 of the Adult Education and Family Literacy Act 
     (20 U.S.C. 9223) is amended--
       (1) in subsection (a)--
       (A) in the matter preceding paragraph (1), by inserting 
     ``to develop or enhance the adult education system of the 
     State or outlying area'' after ``activities'';
       (B) in paragraph (1), by striking ``instruction 
     incorporating'' and all that follows through the period and 
     inserting ``instruction incorporating the essential 
     components of reading instruction and instruction provided by 
     volunteers or by personnel of a State or outlying area.'';
       (C) in paragraph (2), by inserting ``, including 
     development and dissemination of instructional and 
     programmatic practices based on the most rigorous research 
     available in reading, writing, speaking, mathematics, English 
     language acquisition programs, distance learning, and staff 
     training'' after ``activities'';
       (D) in paragraph (5), by striking ``monitoring and'';
       (E) by striking paragraph (6) and inserting the following:
       ``(6) The development and implementation of technology 
     applications, translation technology, or distance learning, 
     including professional development to support the use of 
     instructional technology.''; and
       (F) by striking paragraph (7) through paragraph (11) and 
     inserting the following:
       ``(7) Coordination with--
       ``(A) other partners carrying out activities authorized 
     under this Act; and
       ``(B) existing support services, such as transportation, 
     child care, mental health services, and other assistance 
     designed to increase rates of enrollment in, and successful 
     completion of, adult education and literacy activities, for 
     adults enrolled in such activities.
       ``(8) Developing and disseminating curricula, including 
     curricula incorporating the essential components of reading 
     instruction as such components relate to adults.
       ``(9) The provision of assistance to eligible providers in 
     developing, implementing, and reporting measurable progress 
     in achieving the objectives of this subtitle.
       ``(10) The development and implementation of a system to 
     assist in the transition from adult basic education to 
     postsecondary education, including linkages with 
     postsecondary educational institutions.
       ``(11) Integration of literacy and English language 
     instruction with occupational skill training, and promoting 
     linkages with employers.
       ``(12) Activities to promote workplace literacy programs.
       ``(13) Activities to promote and complement local outreach 
     initiatives described in section 243(b)(3)(F).
       ``(14) In cooperation with efforts funded under sections 
     242 and 243, the development

[[Page S5140]]

     of curriculum frameworks and rigorous content standards 
     that--
       ``(A) specify what adult learners should know and be able 
     to do in the areas of reading and language arts, mathematics, 
     and English language acquisition; and
       ``(B) take into consideration the following:
       ``(i) State academic standards established under section 
     1111(b) of the Elementary and Secondary Education Act of 
     1965.
       ``(ii) The current adult skills and literacy assessments 
     used in the State or outlying area.
       ``(iii) The core indicators of performance established 
     under section 212(b)(2)(A).
       ``(iv) Standards and academic requirements for enrollment 
     in non-remedial, for-credit, courses in postsecondary 
     education institutions supported by the State or outlying 
     area.
       ``(v) Where appropriate, the basic and literacy skill 
     content of occupational and industry skill standards widely 
     used by business and industry in the State or outlying area.
       ``(15) In cooperation with efforts funded under sections 
     242 and 243, development and piloting of--
       ``(A) new assessment tools and strategies that--
       ``(i) are based on scientifically based research, where 
     available and appropriate; and
       ``(ii) identify the needs and capture the gains of students 
     at all levels, with particular emphasis on--

       ``(I) students at the lowest achievement level;
       ``(II) students who have limited English proficiency; and
       ``(III) adults with learning disabilities;

       ``(B) options for improving teacher quality and retention; 
     and
       ``(C) assistance in converting research into practice.
       ``(16) The development and implementation of programs and 
     services to meet the needs of adult learners with learning 
     disabilities or limited English proficiency.
       ``(17) Other activities of statewide significance that 
     promote the purpose of this title.''; and
       (2) in subsection (c), by striking ``being State- or 
     outlying area-imposed'' and inserting ``being imposed by the 
     State or outlying area''.

     SEC. 210. STATE PLAN.

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

     SEC. 211. PROGRAMS FOR CORRECTIONS EDUCATION AND OTHER 
                   INSTITUTIONALIZED INDIVIDUALS.

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

     SEC. 212. GRANTS AND CONTRACTS FOR ELIGIBLE PROVIDERS.

       Section 231 of the Adult Education and Family Literacy Act 
     (20 U.S.C. 9241) is amended--
       (1) in subsection (b)--
       (A) in paragraph (1), by striking ``workplace literacy 
     services'' and inserting ``workplace literacy programs''; and
       (B) in paragraph (3), by striking ``literacy'' and 
     inserting ``language acquisition''; and
       (2) in subsection (e)--
       (A) in paragraph (1), by inserting ``to be achieved 
     annually on the core indicators of performance and employment 
     performance indicators described in section 212(b)(2)'' after 
     ``outcomes'';
       (B) by striking paragraph (3) and inserting the following:
       ``(3) the commitment of the eligible provider to be 
     responsive to local needs and to serve individuals in the 
     community who were identified by the assessment as most in

[[Page S5141]]

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

     SEC. 213. LOCAL APPLICATION.

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

     SEC. 214. LOCAL ADMINISTRATIVE COST LIMITS.

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

     SEC. 215. ADMINISTRATIVE PROVISIONS.

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

     SEC. 216. NATIONAL INSTITUTE FOR LITERACY.

       Section 242 of the Adult Education and Family Literacy Act 
     (20 U.S.C. 9252) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``literacy'' and 
     inserting ``effective literacy programs for children, youth, 
     adults, and families'';
       (B) in paragraph (2), by inserting ``and disseminates 
     information on'' after ``coordinates''; and
       (C) by striking paragraph (3)(A) and inserting the 
     following:
       ``(A) coordinating and participating in the Federal effort 
     to identify and disseminate information on literacy that is 
     derived from scientifically based research, or the most 
     rigorous research available, and effective programs that 
     serve children, youth, adults, and families; and'';
       (2) by striking subsection (b)(3) and inserting the 
     following:
       ``(3) Recommendations.--The Interagency Group, in 
     consultation with the National Institute for Literacy 
     Advisory Board (in this section referred to as the `Board') 
     established under subsection (e), shall plan the goals of the 
     Institute and the implementation of any programs to achieve 
     the goals. The Board may also request a meeting of the 
     Interagency Group to discuss any recommendations the Board 
     may make.'';
       (3) in subsection (c)--
       (A) in paragraph (1)--
       (i) in subparagraph (A)--

       (I) by striking ``to establish'' and inserting ``to 
     maintain'';
       (II) in clause (i), by striking ``phonemic awareness, 
     systematic phonics, fluency, and reading comprehension'' and 
     inserting ``the essential components of reading 
     instruction'';
       (III) in clause (iii), by striking ``and'' after the 
     semicolon;
       (IV) in clause (iv), by inserting ``and'' after the 
     semicolon; and
       (V) by adding at the end the following:

       ``(v) a list of local adult education and literacy 
     programs;'';
       (ii) in subparagraph (C)--

       (I) by striking ``reliable and replicable research'' and 
     inserting ``reliable and replicable research as defined by 
     the Institute of Education Sciences''; and
       (II) by striking ``especially with the Office of 
     Educational Research and Improvement in the Department of 
     Education,'';

       (iii) in subparagraph (D), by striking ``phonemic 
     awareness, systematic phonics, fluency, and reading 
     comprehension based on'' and inserting ``the essential 
     components of reading instruction and'';
       (iv) in subparagraph (H), by striking ``and'' after the 
     semicolon;
       (v) in subparagraph (I), by striking the period at the end 
     and inserting a semicolon; and
       (vi) by adding at the end the following:
       ``(J) to work cooperatively with the Department of 
     Education to assist States that are pursuing the 
     implementation of standards-based educational improvements 
     for adults through the dissemination of training, technical 
     assistance, and related support and through the development 
     and dissemination of related standards-based assessment 
     instruments; and
       ``(K) to identify scientifically based research where 
     available, or the most rigorous research available, on the 
     effectiveness of instructional practices and organizational 
     strategies relating to literacy programs on the acquisition 
     of skills in reading, writing, English acquisition, and 
     mathematics.''; and
       (B) by adding at the end the following:
       ``(3) Coordination.--In identifying the reliable and 
     replicable research the Institute will support, the Institute 
     shall use standards for research quality that are consistent 
     with those of the Institute of Education Sciences.'';
       (4) in subsection (e)--
       (A) in paragraph (1)(B)--
       (i) in clause (i), by striking ``literacy programs'' and 
     inserting ``language acquisition programs'';
       (ii) in clause (ii), by striking ``literacy programs'' and 
     inserting ``or have participated in or partnered with 
     workplace literacy programs'';
       (iii) in clause (iv), by inserting ``, including adult 
     literacy research'' after ``research'';
       (iv) in clause (vi), by striking ``and'' after the 
     semicolon;
       (v) in clause (vii), by striking the period at the end and 
     inserting ``; and''; and
       (vi) by adding at the end the following:
       ``(viii) institutions of higher education.'';
       (B) in paragraph (2)--
       (i) in subparagraph (B), by striking ``and'' after the 
     semicolon;
       (ii) in subparagraph (C), by striking the period at the end 
     and inserting ``; and''; and
       (iii) by adding at the end the following:
       ``(D) review the biennial report submitted to Congress 
     pursuant to subsection (k).''; and
       (C) in paragraph (5), by striking the second sentence and 
     inserting the following: ``A recommendation of the Board may 
     be passed only by a majority of the Board's members present 
     at a meeting for which there is a quorum.''; and
       (5) in subsection (k)--
       (A) by striking ``Labor and Human Resources'' and inserting 
     ``Health, Education, Labor, and Pensions''; and
       (B) by striking ``The Institute shall submit a report 
     biennially to'' and inserting ``Not later than 1 year after 
     the date of enactment of the Adult Education and Family 
     Literacy Act Amendments of 2005, and biennially thereafter, 
     the Institute shall submit a report to''.

     SEC. 217. NATIONAL LEADERSHIP ACTIVITIES.

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

     ``SEC. 243. NATIONAL LEADERSHIP ACTIVITIES.

       ``(a) In General.--The Secretary shall establish and carry 
     out a program of national leadership activities to enhance 
     the quality of adult education and literacy programs 
     nationwide.
       ``(b) Permissive Activities.--The national leadership 
     activities described in subsection (a) may include the 
     following:
       ``(1) Technical assistance, including--
       ``(A) assistance provided to eligible providers in 
     developing and using performance measures for the improvement 
     of adult education and literacy activities, including family 
     literacy services;
       ``(B) assistance related to professional development 
     activities, and assistance for the purposes of developing, 
     improving, identifying, and disseminating the most successful 
     methods and techniques for providing adult

[[Page S5142]]

     education and literacy activities, including family literacy 
     services, based on scientific evidence where available;
       ``(C) assistance in distance learning and promoting and 
     improving the use of technology in the classroom;
       ``(D) assistance in developing valid, measurable, and 
     reliable performance data, including data about employment 
     and employment outcome, and using performance information for 
     the improvement of adult education and literacy programs; and
       ``(E) assistance to help States, particularly low-
     performing States, meet the requirements of section 212.
       ``(2) A program of grants, contracts, or cooperative 
     agreements awarded on a competitive basis to national, 
     regional, or local networks of private nonprofit 
     organizations, public libraries, or institutions of higher 
     education to build the capacity of such networks' members to 
     meet the performance requirements of eligible providers under 
     this title and involve adult learners in program improvement.
       ``(3) Funding national leadership activities that are not 
     described in paragraph (1), either directly or through 
     grants, contracts, or cooperative agreements awarded on a 
     competitive basis to or with postsecondary educational 
     institutions, public or private organizations or agencies, or 
     consortia of such institutions, organizations, or agencies, 
     such as--
       ``(A) developing, improving, and identifying the most 
     successful methods and techniques for addressing the 
     education needs of adults, including instructional practices 
     using the essential components of reading instruction based 
     on the work of the National Institute of Child Health and 
     Human Development;
       ``(B) increasing the effectiveness of, and improving the 
     quality of, adult education and literacy activities, 
     including family literacy services;
       ``(C) carrying out rigorous research, including 
     scientifically based research where appropriate, on national 
     literacy basic skill acquisition for adult learning, 
     including estimating the number of adults functioning at the 
     lowest levels of literacy proficiency;
       ``(D)(i) carrying out demonstration programs;
       ``(ii) disseminating best practices information, including 
     information regarding promising practices resulting from 
     federally funded demonstration programs; and
       ``(iii) developing and replicating best practices and 
     innovative programs, including--
       ``(I) the development of models for basic skill 
     certificates;
       ``(II) the identification of effective strategies for 
     working with adults with learning disabilities and with 
     adults with limited English proficiency;
       ``(III) integrated basic and workplace skills education 
     programs;
       ``(IV) coordinated literacy and employment services; and
       ``(V) postsecondary education transition programs;
       ``(E) providing for the conduct of an independent 
     evaluation and assessment of adult education and literacy 
     activities through studies and analyses conducted 
     independently through grants and contracts awarded on a 
     competitive basis, which evaluation and assessment shall 
     include descriptions of--
       ``(i) the effect of performance measures and other measures 
     of accountability on the delivery of adult education and 
     literacy activities, including family literacy services;
       ``(ii) the extent to which the adult education and literacy 
     activities, including family literacy services, increase the 
     literacy skills of adults (and of children, in the case of 
     family literacy services), lead the participants in such 
     activities to involvement in further education and training, 
     enhance the employment and earnings of such participants, 
     and, if applicable, lead to other positive outcomes, such as 
     reductions in recidivism in the case of prison-based adult 
     education and literacy activities;
       ``(iii) the extent to which the provision of support 
     services to adults enrolled in adult education and family 
     literacy programs increase the rate of enrollment in, and 
     successful completion of, such programs; and
       ``(iv) the extent to which different types of providers 
     measurably improve the skills of participants in adult 
     education and literacy programs;
       ``(F) supporting efforts aimed at capacity building of 
     programs at the State and local levels such as technical 
     assistance in program planning, assessment, evaluation, and 
     monitoring of activities carried out under this subtitle;
       ``(G) collecting data, such as data regarding the 
     improvement of both local and State data systems, through 
     technical assistance and development of model performance 
     data collection systems;
       ``(H) supporting the development of an entity that would 
     produce and distribute technology-based programs and 
     materials for adult education and literacy programs using an 
     interconnection system (as defined in section 397 of the 
     Communications Act of 1934 (47 U.S.C. 397)) and expand the 
     effective outreach and use of such programs and materials to 
     adult education eligible providers;
       ``(I) determining how participation in adult education and 
     literacy activities prepares individuals for entry into 
     postsecondary education and employment and, in the case of 
     prison-based services, has an effect on recidivism; and
       ``(J) other activities designed to enhance the quality of 
     adult education and literacy activities nationwide.''.

     SEC. 218. INTEGRATED ENGLISH LITERACY AND CIVICS EDUCATION.

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

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

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

     SEC. 219. TRANSITION.

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

            TITLE III--AMENDMENTS TO OTHER PROVISIONS OF LAW

     SEC. 301. WAGNER-PEYSER ACT.

       (a) Conforming Amendment.--Section 2(3) of the Wagner-
     Peyser Act (29 U.S.C. 49a(3)) is amended by striking 
     ``section 134(c)'' and inserting ``section 121(e)''.
       (b) Colocation.--Section 3 of the Wagner-Peyser Act (29 
     U.S.C. 49b) is amended by adding at the end the following:
       ``(d) In order to avoid duplication of services and enhance 
     integration of services, employment services offices in each 
     State shall be colocated with one-stop centers established 
     under title I of the Workforce Investment Act of 1998 (29 
     U.S.C. 2801 et seq.).
       ``(e) The Secretary, in consultation with States, is 
     authorized to assist in the development of national 
     electronic tools that may be used to improve access to 
     workforce information for individuals through--
       ``(1) the one-stop delivery systems established under 
     section 121(e) of the Workforce Investment Act of 1998 (29 
     U.S.C. 2841(e)); and
       ``(2) such other delivery systems as the Secretary 
     determines to be appropriate.''.
       (c) Cooperative Statistical Program.--Section 14 of the 
     Wagner-Peyser Act (29 U.S.C. 49l-1) is amended by striking 
     the section heading and all that follows through ``There'' 
     and inserting the following:

     ``SEC. 14. COOPERATIVE STATISTICAL PROGRAM.

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

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

       (2) by striking ``employment statistics system'' each place 
     it appears and inserting ``workforce and labor market 
     information system'';
       (3) in subsection (a)(1), by striking ``of employment 
     statistics'';
       (4) in subsection (b)--
       (A) in paragraph (1)--
       (i) by striking ``The'' and inserting the following:
       ``(A) Structure.--The''; and
       (ii) by adding at the end the following:
       ``(B) Grants or cooperative agreements.--
       ``(i) In general.--The Secretary shall carry out the 
     provisions of this section in a timely manner through grants 
     or cooperative agreements with States.
       ``(ii) Distribution of funds.--With regard to distributing 
     funds appropriated under subsection (g) (relating to 
     workforce and labor market information funding) for fiscal 
     years 2006 through 2011, the Secretary shall continue to 
     distribute the funds to States in the manner in which the 
     Secretary distributed funds to the States under this section 
     for fiscal years 1999 through 2003.''; and
       (B) in paragraph (2)(E)--
       (i) in clause (i), by adding ``and'' at the end;
       (ii) in clause (ii), by striking ``; and'' and inserting a 
     period; and
       (iii) by striking clause (iii);
       (5) by striking subsections (c) and (d) and inserting the 
     following:
       ``(c) Two-Year Plan.--The Secretary, working through the 
     Commissioner of Labor Statistics, and in cooperation with the 
     States and with the assistance of the Assistant Secretary for 
     Employment and Training and heads of other appropriate 
     Federal agencies, shall prepare a 2-year plan which shall be 
     the mechanism for achieving cooperative

[[Page S5143]]

     management of the nationwide workforce and labor market 
     information system described in subsection (a) and the 
     statewide workforce and labor market information systems that 
     comprise the nationwide system. The plan shall--
       ``(1) describe the steps the to be taken in the following 2 
     years to carry out the duties described in subsection (b)(2);
       ``(2) evaluate the performance of the system and recommend 
     needed improvements, with particular attention to the 
     improvements needed at the State and local levels; and
       ``(3) describe the involvement of States in the development 
     of the plan, through consultation between the Secretary and 
     representatives from State agencies in accordance with 
     subsection (d).
       ``(d) Coordination With the States.--The Secretary, working 
     though the Commissioner of Labor Statistics and in 
     coordination with the Assistant Secretary for Employment and 
     Training, shall consult at least annually with 
     representatives of each of the Federal regions of the 
     Department of Labor, elected (pursuant to a process 
     established by the Secretary) by and from the State workforce 
     and labor market information directors affiliated with the 
     State agencies that perform the duties described in 
     subsection (e)(2).'';
       (6) in subsection (e)(2)--
       (A) in subparagraph (G), by adding ``and'' at the end;
       (B) by striking subparagraph (H); and
       (C) by redesignating subparagraph (I) as subparagraph (H); 
     and
       (7) in subsection (g), by striking ``1999 through 2004'' 
     and inserting ``2006 through 2011''.

                TITLE IV--REHABILITATION ACT AMENDMENTS

     SEC. 401. SHORT TITLE.

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

     SEC. 402. TECHNICAL AMENDMENTS TO TABLE OF CONTENTS.

       (a) Expanded Transition Services.--Section 1(b) of the 
     Rehabilitation Act of 1973 is amended by inserting after the 
     item relating to section 110 the following:

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

       (b) Incentive Grants.--Section 1(b) of the Rehabilitation 
     Act of 1973 is amended by inserting after the item relating 
     to section 112 the following:

``Sec. 113. Incentive grants.''.

       (c) Independent Living Services for Older Individuals Who 
     Are Blind.--Section 1(b) of the Rehabilitation Act of 1973 is 
     amended by striking the items relating to sections 752 and 
     753 and inserting the following:

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

     SEC. 403. PURPOSE.

       Section 2 of the Rehabilitation Act of 1973 (29 U.S.C. 701) 
     is amended--
       (1) in subsection (a)--
       (A) in paragraph (5), by striking ``and'' after the 
     semicolon;
       (B) in paragraph (6), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(7)(A) a high proportion of youth who are individuals 
     with disabilities is leaving special education without being 
     employed or being enrolled in continuing education; and
       ``(B) there is a substantial need to support those youth as 
     the youth transition from school to postsecondary life.''; 
     and
       (2) in subsection (b)--
       (A) in paragraph (1)(F), by striking ``and'' after the 
     semicolon;
       (B) in paragraph (2), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(3) to provide opportunities for employers and vocational 
     rehabilitation service providers to provide meaningful input 
     at all levels of government to ensure successful employment 
     of individuals with disabilities.''.

     SEC. 404. DEFINITIONS.

       Section 7 of the Rehabilitation Act of 1973 (29 U.S.C. 705) 
     is amended--
       (1) in paragraph (2)(B)--
       (A) in the matter preceding clause (i), by inserting ``and 
     literacy services'' after ``supported employment''; and
       (B) in clause (iii), by inserting ``and literacy skills'' 
     after ``educational achievements'';
       (2) by striking paragraphs (3) and (4) and inserting the 
     following:
       ``(3) Assistive technology definitions.--
       ``(A) Assistive technology.--The term `assistive 
     technology' has the meaning given such term in section 3 of 
     the Assistive Technology Act of 1998 (29 U.S.C. 3002).
       ``(B) Assistive technology device.--The term `assistive 
     technology device' has the meaning given such term in section 
     3 of the Assistive Technology Act of 1998, except that the 
     reference in such section to the term `individuals with 
     disabilities' shall be deemed to mean more than one 
     individual with a disability as defined in paragraph (20)(A).
       ``(C) Assistive technology service.--The term `assistive 
     technology service' has the meaning given such term in 
     section 3 of the Assistive Technology Act of 1998, except 
     that the reference in such section--
       ``(i) to the term `individual with a disability' shall be 
     deemed to mean an individual with a disability, as defined in 
     paragraph (20)(A); and
       ``(ii) to the term `individuals with disabilities' shall be 
     deemed to mean more than one such individual.'';
       (3) by striking paragraph (7) and inserting the following:
       ``(7) Consumer organization.--The term `consumer 
     organization' means a membership organization in which a 
     majority of the organization's members and a majority of the 
     organization's officers are individuals with disabilities.'';
       (4) in paragraph (17)--
       (A) in subparagraph (C), by striking ``and'' after the 
     semicolon;
       (B) in subparagraph (D), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(E) maintaining individuals with significant disabilities 
     in, or transitioning individuals with significant 
     disabilities to, community-based living.'';
       (5) by redesignating paragraphs (24) through (28), (29) 
     through (34), (35) through (37), and (38) through (39), as 
     paragraphs (25) through (29), (31) through (36), (38) through 
     (40), and (42) through (43), respectively;
       (6) by inserting after paragraph (23) the following:
       ``(24) Literacy.--The term `literacy' has the meaning given 
     the term in section 203 of the Adult Education and Family 
     Literacy Act (20 U.S.C. 9202).'';
       (7) by inserting after paragraph (29), as redesignated by 
     paragraph (5), the following:
       ``(30) Post-employment service.--The term `post-employment' 
     service means a service identified in section 103(a) that 
     is--
       ``(A) provided subsequent to the achievement of an 
     employment outcome; and
       ``(B) necessary for an individual to maintain, regain, or 
     advance in employment, consistent with the individual's 
     strengths, resources, priorities, concerns, abilities, 
     capabilities, interests, and informed choice.'';
       (8) by inserting after paragraph (36), as redesignated by 
     paragraph (5), the following:
       ``(37) Student with a disability.--
       ``(A) In general.--The term `student with a disability' 
     means an individual with a disability who attends an 
     elementary school or secondary school and who--
       ``(i) is not younger than 16 years of age;
       ``(ii) is not older than 22 years of age;
       ``(iii) has been determined to be eligible under section 
     102(a) for assistance under title I; and
       ``(iv)(I) is eligible for, and receiving, special education 
     or related services 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) Students with disabilities.--The term `students with 
     disabilities' means more than 1 student with a disability.'';
       (9) in paragraph (38)(A)(ii), as redesignated by paragraph 
     (5), by striking ``paragraph (36)(C)'' and inserting 
     ``paragraph (39)(C)''; and
       (10) by inserting after paragraph (40), as redesignated by 
     paragraph (5), the following:
       ``(41) Transition services expansion year.--The term 
     `transition services expansion year' means--
       ``(A) the first fiscal year for which the amount 
     appropriated under section 100(b) exceeds the amount 
     appropriated under section 100(b) for fiscal year 2006 by not 
     less than $100,000,000; and
       ``(B) each fiscal year subsequent to that first fiscal 
     year.''.

     SEC. 405. ADMINISTRATION OF THE ACT.

       Section 12(a)(1) of the Rehabilitation Act of 1973 (29 
     U.S.C. 709(a)(1)) is amended--
       (1) by inserting ``(A)'' after ``(1)'';
       (2) by adding at the end the following:
       ``(B) provide technical assistance to the designated State 
     units on developing successful partnerships with local and 
     multi-State businesses in an effort to employ individuals 
     with disabilities; and
       ``(C) provide technical assistance on developing self-
     employment opportunities and outcomes for individuals with 
     disabilities;''.

     SEC. 406. REPORTS.

       Section 13 of the Rehabilitation Act of 1973 (29 U.S.C. 
     710) is amended by adding at the end the following:
       ``(d)(1)(A) The Commissioner shall ensure that the reports, 
     information, and data described in subparagraph (B) will be 
     posted in a timely manner on the website of the Department of 
     Education, in order to inform the public about the 
     administration and performance of programs in each State 
     under this Act.
       ``(B) The reports, information, and data referred to in 
     subparagraph (A) shall consist of--
       ``(i) reports submitted by a designated State unit under 
     this Act;
       ``(ii) accountability information (including State 
     performance information relating to evaluation standards and 
     performance indicators under section 106 and State 
     performance information relating to State performance 
     measures under section 136 of the Workforce Investment Act of 
     1998 (29 U.S.C. 2871)) submitted by a designated State unit 
     under this Act or submitted under such section 136;
       ``(iii) data collected from each designated State unit 
     under this Act with the approval of the Office of Management 
     and Budget; and
       ``(iv) monitoring reports conducted under this Act.
       ``(C) The Commissioner shall maintain, and post on the 
     website, a listing of the reports, information, and data 
     required to be submitted by designated State units under this 
     Act.

[[Page S5144]]

       ``(D) The Commissioner shall post on the website, or 
     establish links on the website to, evaluations, studies, and 
     audits, including evaluations, studies, and audits conducted 
     by agencies of the Federal government, concerning programs 
     carried out under this Act.
       ``(E) The Commissioner shall maintain on the website a list 
     of the designated State units and shall establish links on 
     the website to websites maintained by those units.
       ``(2) The Commissioner shall maintain public use read-only 
     access to the State and aggregated reports and analyzed data 
     filed and maintained on the Rehabilitation Services 
     Administration management information system or a similar 
     system maintained by the Department of Education.''.

     SEC. 407. CARRYOVER.

       Section 19 of the Rehabilitation Act of 1973 (29 U.S.C. 
     716) is amended--
       (1) in subsection (a)(1)--
       (A) by striking ``, section 509 (except as provided in 
     section 509(b))'';
       (B) by striking ``or C''; and
       (C) by striking ``752(b)'' and inserting ``753(b)''; and
       (2) by adding at the end the following:
       ``(c) Client Assistance Program; Protection and Advocacy of 
     Individual Rights.--
       ``(1) Appropriated amounts.--Notwithstanding any other 
     provision of law, any funds appropriated for a fiscal year to 
     carry out a grant program under section 112 or 509 (except as 
     provided in section 509(b)), including any funds reallotted 
     under such grant program, that are not obligated and expended 
     by recipients prior to the beginning of the succeeding fiscal 
     year shall remain available for obligation and expenditure by 
     such recipients during such succeeding fiscal year.
       ``(2) Program income.--Notwithstanding any other provision 
     of law, any amounts of program income received by recipients 
     under a grant program under section 112 or 509 in a fiscal 
     year that are not obligated and expended by recipients prior 
     to the beginning of the succeeding fiscal year, shall remain 
     available until expended.''.

             Subtitle A--Vocational Rehabilitation Services

     SEC. 411. DECLARATION OF POLICY; AUTHORIZATION OF 
                   APPROPRIATIONS.

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

     SEC. 412. STATE PLANS.

       (a) In General.--Section 101(a) of the Rehabilitation Act 
     of 1973 (29 U.S.C. 721(a)) is amended--
       (1) in paragraph (2), by adding at the end the following:
       ``(D) State agency for reimbursement purposes.--A governing 
     body of an Indian tribe that receives a grant under section 
     121 shall be considered, for purposes of the cost 
     reimbursement provisions--
       ``(i) in section 222(d)(1) of the Social Security Act (42 
     U.S.C. 422(d)(1)), to be a State; and
       ``(ii) in subsections (d) and (e) of section 1615 of the 
     Social Security Act (42 U.S.C. 1382d), to be a State agency 
     described in subsection (d) of that section.'';
       (2) in paragraph (6)(B), by striking ``to employ and 
     advance in employment'' and inserting ``to recruit, employ, 
     and advance in employment'';
       (3) in paragraph (7)(A)(v), by striking subclause (I) and 
     inserting the following:

       ``(I) a system for the continuing education of 
     rehabilitation professionals and paraprofessionals within the 
     designated State unit, particularly with respect to 
     rehabilitation technology, including training implemented in 
     coordination with State programs carried out under section 4 
     of the Assistive Technology Act of 1998 (29 U.S.C. 3003); 
     and'';

       (4) in paragraph (10)--
       (A) in subparagraph (B), by striking ``annual reporting on 
     the eligible individuals receiving the services, on those 
     specific data elements described in section 136(d)(2) of the 
     Workforce Investment Act of 1998'' and inserting ``annual 
     reporting of information on eligible individuals receiving 
     the services that is needed to assess performance on the core 
     indicators of performance described in section 
     136(b)(2)(A)(i) of the Workforce Investment Act of 1998 (29 
     U.S.C. 2871(b)(2)(A)(i))'';
       (B) in subparagraph (C), by striking clauses (iii) and (iv) 
     and inserting the following:
       ``(iii) the number of applicants and eligible recipients, 
     including the number of individuals with significant 
     disabilities, who exited the program carried out under this 
     title and the number of such individuals who achieved 
     employment outcomes after receiving vocational rehabilitation 
     services; and
       ``(iv) the number of individuals who received vocational 
     rehabilitation services who entered and retained employment 
     and the earnings of such individuals, as such entry, 
     retention, and earnings are defined for purposes of the core 
     indicators of performance described in section 
     136(b)(2)(A)(i) of the Workforce Investment Act of 1998 (29 
     U.S.C. 2871(b)(2)(A)(i)).''; and
       (C) in subparagraph (E)(ii), by striking ``in meeting'' and 
     all that follows through the period and inserting ``in 
     meeting the standards and indicators established pursuant to 
     section 106.'';
       (5) in paragraph (11)--
       (A) by striking subparagraph (C) and inserting the 
     following:
       ``(C) Interagency cooperation with other agencies.--The 
     State plan shall include descriptions of interagency 
     cooperation with, and utilization of the services and 
     facilities of, Federal, State, and local agencies and 
     programs, including the State programs carried out under 
     section 4 of the Assistive Technology Act of 1998 (29 U.S.C. 
     3003), programs carried out by the Under Secretary for Rural 
     Development of the Department of Agriculture, and State use 
     contracting programs, to the extent that such agencies and 
     programs are not carrying out activities through the 
     statewide workforce investment system.'';
       (B) by striking subparagraph (D)(ii) and inserting the 
     following:
       ``(ii) transition planning by personnel of the designated 
     State agency and the State educational agency that will 
     facilitate the development and completion of the 
     individualized education programs under section 614(d) of the 
     Individuals with Disabilities Education Act (20 U.S.C. 
     1414(d)) and, as appropriate, the development and completion 
     of the individualized plan for employment, in order to 
     achieve post-school employment outcomes of students with 
     disabilities;''; and
       (C) by adding at the end the following:
       ``(G) Coordination with assistive technology programs.--The 
     State plan shall include an assurance that the designated 
     State unit, and the lead agency and implementing agency (if 
     any) designated by the Governor of the State under section 4 
     of the Assistive Technology Act of 1998 (29 U.S.C. 3003), 
     have developed working relationships and will enter into 
     agreements for the coordination of their activities, 
     including the referral of individuals with disabilities to 
     programs and activities described in that section.
       ``(H) Coordination with ticket to work and self-sufficiency 
     program.--The State plan shall include an assurance that the 
     designated State unit will coordinate activities with any 
     other State agency that is functioning as an employment 
     network under the Ticket to Work and Self-Sufficiency Program 
     established under section 1148 of the Social Security Act (42 
     U.S.C. 1320b-19).'';
       (6) in paragraph (15)--
       (A) in subparagraph (A)--
       (i) in clause (i)--

       (I) in subclause (II), by striking ``and'' after the 
     semicolon;
       (II) in subclause (III), by inserting ``and'' after the 
     semicolon; and
       (III) by adding at the end the following:
       ``(IV) for purposes of addressing needs in a transition 
     services expansion year, 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 needs of individuals 
     with disabilities for transition services provided under this 
     Act, and coordinated with transition services provided under 
     the Individuals with Disabilities Education Act (20 U.S.C. 
     1400 et seq.), and an assessment as to whether the transition 
     services provided under those Acts meet 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) for use in a transition services expansion year, 
     the methods to be used to improve and expand vocational 
     rehabilitation services for students with disabilities, 
     including the coordination of services designed to facilitate 
     the transition of such students from the receipt of 
     educational services in school to postsecondary life, 
     including the receipt of vocational rehabilitation services 
     under this title, postsecondary education, or employment;'';
       (7) in paragraph (20)--
       (A) by redesignating subparagraph (B) as subparagraph (C);
       (B) by inserting after subparagraph (A) the following:
       ``(B) Information on assistance for beneficiaries of 
     assistance under title ii or xvi of the social security 
     act.--The State plan shall include an assurance that the 
     designated State agency will make available to individuals 
     entitled to benefits under title II or XVI of the Social 
     Security Act (42 U.S.C. 401 et seq., 1381 et seq.) on the 
     basis of a disability or blindness--
       ``(i) information on the availability of benefits and 
     medical assistance authorized under the State medicaid 
     program under title XIX of the Social Security Act (42 U.S.C. 
     1396 et seq.) or under the medicare program under title XVIII 
     of the Social Security Act (42 U.S.C. 1395 et seq.), and 
     medical assistance authorized under other federally funded 
     programs;
       ``(ii) information on the availability of assistance 
     through benefits planning and assistance programs authorized 
     under section 1149 of the Social Security Act (42 U.S.C. 
     1320b-20) and services provided by the State protection and 
     advocacy system and authorized under section 1150 of the 
     Social Security Act (42 U.S.C. 1320b-21); and
       ``(iii) in the case of individuals who are also eligible 
     for a ticket under the Ticket to Work and Self-Sufficiency 
     Program established under section 1148 of the Social Security 
     Act (42 U.S.C. 1320b-19), general information regarding the 
     options for using the ticket and information on how to 
     contact a program manager of the Ticket to Work and Self-
     Sufficiency Program to obtain information on approved 
     employment networks, on providers for the benefits planning 
     and assistance programs described in subparagraph

[[Page S5145]]

     (B) in the State, and on the services provided by the State 
     protection and advocacy system and described in subparagraph 
     (B).''; and
       (C) in subparagraph (C)(ii), as redesignated by 
     subparagraph (A)--
       (i) in subclause (II), by inserting ``, to the maximum 
     extent possible,'' after ``point of contact''; and
       (ii) in subclause (III), by striking ``or regain'' and 
     inserting ``regain, or advance in''; and
       (8) by adding at the end the following:
       ``(25) Services for students with disabilities.--The State 
     plan for a transition services expansion year shall provide 
     an assurance satisfactory to the Secretary that the State--
       ``(A) has developed and shall implement, in each transition 
     services expansion year, 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) in each transition services expansion year--
       ``(i) shall not use more than 5 percent of the funds 
     reserved under section 110A and available for this 
     subparagraph, to pay for administrative costs; and
       ``(ii) shall use the remaining funds to carry out programs 
     or activities designed to improve and expand vocational 
     rehabilitation services for students with disabilities, 
     through partnerships described in subparagraph (C), that--

       ``(I) facilitate the transition of the students with 
     disabilities from the receipt of educational services in 
     school, to the receipt of vocational rehabilitation services 
     under this title, including, at a minimum, those services 
     specified in the interagency agreement required in paragraph 
     (11)(D);
       ``(II) improve the achievement of post-school goals of 
     students with disabilities through the provision of 
     transition services, including improving the achievement 
     through participation (as appropriate when vocational goals 
     are discussed) in meetings regarding individualized education 
     programs developed under section 614 of the Individuals with 
     Disabilities Education Act (20 U.S.C. 1414);
       ``(III) provide vocational guidance, career exploration 
     services, and job search skills and strategies and technical 
     assistance to students with disabilities;
       ``(IV) support the provision of training and technical 
     assistance to local educational 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; and

       ``(C) in each transition services expansion year, shall 
     ensure that the funds described in subparagraph (B)(ii) are 
     awarded only to partnerships that--
       ``(i) shall include local vocational rehabilitation 
     services providers and local educational agencies; and
       ``(ii) may include (or may have linkages with) other 
     agencies such as employment, social service, and health 
     organizations, that contribute funds for the provision of 
     vocational rehabilitation services described in subparagraph 
     (B)(ii) for eligible students with disabilities.''.
       (b) Construction.--Section 101 of the Rehabilitation Act of 
     1973 (29 U.S.C. 721) is amended by adding at the end the 
     following:
       ``(c) Construction.--
       ``(1) Definitions.--In this subsection, the terms `child 
     with a disability', `free appropriate public education', 
     `related services', and `special education' have the meanings 
     given the terms in section 602 of the Individuals with 
     Disabilities Education Act (20 U.S.C. 1401).
       ``(2) Obligation to provide or pay for transition 
     services.--Nothing in this part shall be construed to reduce 
     the obligation of a local educational agency or any other 
     agency to provide or pay for any transition services that are 
     also considered special education or related services and 
     that are necessary for ensuring a free appropriate public 
     education to children with disabilities within the State 
     involved.''.

     SEC. 413. ELIGIBILITY AND INDIVIDUALIZED PLAN FOR EMPLOYMENT.

       Section 102 of the Rehabilitation Act of 1973 (29 U.S.C. 
     722) is amended--
       (1) in subsection (b)--
       (A) in paragraph (1)--
       (i) in subparagraph (A), by striking the semicolon at the 
     end and inserting ``, including a listing of all the 
     community resources (including resources from consumer 
     organizations), to the maximum extent possible, to assist in 
     the development of such individual's individualized plan for 
     employment to enable the individual to make informed and 
     effective choices in developing the individualized plan for 
     employment;''; and
       (ii) in subparagraph (D)--

       (I) in clause (i), by striking ``and'' after the semicolon;
       (II) in clause (ii), by striking the period at the end and 
     inserting a semicolon; and
       (III) by adding at the end the following:

       ``(iii) for individuals entitled to benefits under title II 
     or XVI of the Social Security Act (42 U.S.C. 401 et seq., 
     1381 et seq.) on the basis of a disability or blindness--

       ``(I) information on the availability of benefits and 
     medical assistance authorized under the State medicaid 
     program under title XIX of the Social Security Act (42 U.S.C. 
     1396 et seq.) or under the medicare program under title XVIII 
     of the Social Security Act (42 U.S.C. 1395 et seq.), and 
     medical assistance authorized under other federally funded 
     programs;
       ``(II) information on the availability of assistance 
     through benefits planning and assistance programs authorized 
     under section 1149 of the Social Security Act (42 U.S.C. 
     1320b-20) and services provided by the State protection and 
     advocacy system and authorized under section 1150 of the 
     Social Security Act (42 U.S.C. 1320b-21); and
       ``(III) in the case of individuals who are also eligible 
     for a ticket under the Ticket to Work and Self-Sufficiency 
     Program established under section 1148 of the Social Security 
     Act (42 U.S.C. 1320b-19), general information regarding the 
     options for using the ticket and information on how to 
     contact a program manager of the Ticket to Work and Self-
     Sufficiency Program to obtain information on approved 
     employment networks, on providers for the benefits planning 
     and assistance programs described in subparagraph (B) in the 
     State, and on the services provided by the State protection 
     and advocacy system and described in subparagraph (B).'';

       (B) in paragraph (2)(E)--
       (i) in clause (i)(II), by striking ``and'' after the 
     semicolon;
       (ii) in clause (ii), by striking the period at the end and 
     inserting ``; and''; and
       (iii) by adding at the end the following:
       ``(iii) amended, as necessary, to include the post-
     employment services and service providers that are necessary 
     for the individual to maintain, regain, or advance in 
     employment, consistent with the individual's strengths, 
     resources, priorities, concerns, abilities, capabilities, 
     interests, and informed choice.''; and
       (C) in paragraph (3)--
       (i) in subparagraph (B)(i)(I), by striking ``and personal 
     assistance services'' and all that follows and inserting 
     ``mentoring services, and personal assistance services, 
     including training in the management of such services, and 
     referrals described in section 103(a)(3) to the device 
     reutilization programs and device demonstrations described in 
     subparagraphs (B) and (D) of section 4(e)(2) of the Assistive 
     Technology Act of 1998 (42 U.S.C. 3003(e)(2)) through 
     agreements developed under section 101(a)(11)(G); and'';
       (ii) in subparagraph (F)(ii), by striking ``and'' after the 
     semicolon;
       (iii) in subparagraph (G), by striking the period at the 
     end and inserting ``; and''; and
       (iv) by adding at the end the following:
       ``(H) for an individual who is receiving assistance from an 
     employment network under the Ticket to Work and Self-
     Sufficiency Program established under section 1148 of the 
     Social Security Act (42 U.S.C. 1320b-19), a list of the 
     services that are listed in the individual work plan that the 
     individual developed with the employment network under 
     subsection (g) of that section.''; and
       (2) in subsection (c)(7), by inserting ``that take into 
     consideration the informed choice of the individual,'' after 
     ``plan development''.

     SEC. 414. VOCATIONAL REHABILITATION SERVICES.

       Section 103 of the Rehabilitation Act of 1973 (29 U.S.C. 
     723) is amended--
       (1) in subsection (a)--
       (A) in paragraph (5), by inserting ``literacy services,'' 
     after ``vocational adjustment services,'';
       (B) by striking paragraph (15) and inserting the following:
       ``(15) transition services for students with disabilities, 
     that facilitate the transition from school to postsecondary 
     life (including employment through the achievement of the 
     employment outcome identified in the individualized plan for 
     employment), including, in a transition services expansion 
     year, services described in clauses (i) through (iii) of 
     section 101(a)(25)(B);'';
       (C) in paragraph (17), by striking ``and'' after the 
     semicolon;
       (D) in paragraph (18), by striking the period at the end 
     and inserting ``; and''; and
       (E) by adding at the end the following:
       ``(19) mentoring services.''; and
       (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 postsecondary life, including employment.
       ``(ii) In a transition services expansion year, training 
     and technical assistance described in section 
     101(a)(25)(B)(iv).
       ``(B) In a transition services expansion year, services for 
     groups of individuals with disabilities who meet the 
     requirements of clauses (i) and (iii) of section 7(35)(A), 
     including services described in clauses (i), (ii), (iii), and 
     (v) of section 101(a)(25)(B), to assist in the transition 
     from school to postsecondary life, including employment.''.

     SEC. 415. STATE REHABILITATION COUNCIL.

       Section 105 of the Rehabilitation Act of 1973 (29 U.S.C. 
     725) is amended--
       (1) in subsection (b)--
       (A) in paragraph (1)(A)--
       (i) by striking clause (ix) and inserting the following:
       ``(ix) in a State in which one or more projects provide 
     services under section 121, at least one representative of 
     the directors of the projects;'';
       (ii) in clause (x), by striking the ``and'' after the 
     semicolon;

[[Page S5146]]

       (iii) in clause (xi), by striking the period at the end and 
     inserting ``; and''; and
       (iv) by adding at the end the following:
       ``(xii) the director of the State's comprehensive statewide 
     program of technology-related assistance funded under section 
     4 of the Assistive Technology Act of 1998 (29 U.S.C. 
     3003).''; and
       (B) by striking paragraph (5) and inserting the following:
       ``(5) Chairperson.--The Council shall select a chairperson 
     from among the voting membership of the Council.''; and
       (2) in subsection (c)(6), by inserting before the semicolon 
     the following: ``and with the activities of entities carrying 
     out programs under the Assistive Technology Act of 1998 (29 
     U.S.C. 3001 et seq.)''.

     SEC. 416. EVALUATION STANDARDS AND PERFORMANCE INDICATORS.

       Section 106 of the Rehabilitation Act of 1973 (29 U.S.C. 
     726) is amended--
       (1) in subsection (a), by striking paragraph (1)(C) and all 
     that follows through paragraph (2) and inserting the 
     following:
       ``(2) Measures.--The standards and indicators shall include 
     outcome and related measures of program performance that 
     include measures of the program's performance with respect to 
     the transition from school to postsecondary life, including 
     employment, and achievement of the postsecondary vocational 
     goals, of students with disabilities served under the 
     program.''; and
       (2) in subsection (b)(2)(B)(i), by striking ``, if 
     necessary'' and all that follows through the semicolon and 
     inserting ``, if the State has not improved its performance 
     to acceptable levels, as determined by the Commissioner, 
     direct the State to make further revisions to the plan to 
     improve performance, which may include revising the plan to 
     allocate a higher proportion of the State's resources for 
     services to individuals with disabilities if the State 
     agency's spending on such services is low in comparison to 
     spending on such services by comparable agencies in other 
     States;''.

     SEC. 417. MONITORING AND REVIEW.

       Section 107(b)(1) of the Rehabilitation Act of 1973 (29 
     U.S.C. 727(b)(1)) is amended by inserting before the 
     semicolon the following: ``, including--
       ``(A) consulting with the Department of Labor, the Small 
     Business Administration, other appropriate Federal agencies, 
     and businesses or business-led intermediaries; and
       ``(B) based on information obtained through the 
     consultations, providing technical assistance that improves 
     that quality by enabling designated State units to develop 
     successful partnerships with local and multi-State businesses 
     in an effort to employ individuals with disabilities, and 
     technical assistance on developing self-employment 
     opportunities and improving outcomes for individuals with 
     disabilities''.

     SEC. 418. STATE ALLOTMENTS.

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

     SEC. 419. RESERVATION FOR EXPANDED TRANSITION SERVICES.

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

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

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

     SEC. 420. CLIENT ASSISTANCE PROGRAM.

       Section 112 of the Rehabilitation Act of 1973 (29 U.S.C. 
     732) is amended--
       (1) in subsection (a)--
       (A) in the first sentence, by striking ``States'' and 
     inserting ``agencies designated under subsection (c)''; and
       (B) in the second sentence, by striking ``State'' and 
     inserting ``State in which the program is located'';
       (2) in subsection (b), by striking ``the State has in 
     effect not later than October 1, 1984, a client assistance 
     program which'' and inserting ``the State designated under 
     subsection (c) an agency that'';
       (3) in subsection (e)--
       (A) in paragraph (1)--
       (i) in subparagraph (A), by striking ``The Secretary'' and 
     all that follows through the period and inserting the 
     following: ``After reserving funds under subparagraphs (E) 
     and (F), the Secretary shall allot the remainder of the sums 
     appropriated for each fiscal year under this section among 
     the agencies designated under subsection (c) within the 
     States (referred to individually in this subsection as a 
     `designated agency') on the basis of relative population of 
     each State, except that no such agency shall receive less 
     than $50,000.'';
       (ii) in subparagraph (B), by inserting ``the designated 
     agencies located in'' after ``each to'';
       (iii) in subparagraph (D)(i)--

       (I) by inserting ``the designated agencies located in'' 
     after ``$100,000 for''; and
       (II) by inserting ``the designated agencies located in'' 
     after ``$45,000 for''; and

       (iv) by adding at the end the following:
       ``(E)(i) For any fiscal year for which the amount 
     appropriated to carry out this section equals or exceeds 
     $13,000,000, the Secretary shall reserve funds appropriated 
     under this section to make a grant to the protection and 
     advocacy system serving the American Indian Consortium to 
     provide client assistance services in accordance with this 
     section. The amount of such a grant shall be the same amount 
     as is provided to a territory under subparagraph (B), as 
     increased under clauses (i) and (ii) of subparagraph (D).
       ``(ii) In this subparagraph:
       ``(I) The term `American Indian Consortium' has the meaning 
     given the term in section 102 of the Developmental 
     Disabilities Assistance and Bill of Rights Act of 2000 (42 
     U.S.C. 15002).
       ``(II) The term `protection and advocacy system' means a 
     protection and advocacy

[[Page S5147]]

     system established under subtitle C of title I of the 
     Developmental Disabilities Assistance and Bill of Rights Act 
     of 2000 (42 U.S.C. 15041 et seq.).
       ``(F) For any fiscal year for which the amount appropriated 
     to carry out this section equals or exceeds $14,000,000, the 
     Secretary shall reserve not less than 1.8 percent and not 
     more than 2.2 percent of such amount to provide a grant for 
     training and technical assistance for the programs 
     established under this section. Such training and technical 
     assistance shall be coordinated with activities provided 
     under section 509(c)(1)(A).''; and
       (B) in paragraph (2)--
       (i) by striking ``State'' each place such term appears and 
     inserting ``designated agency''; and
       (ii) by striking ``States'' each place such term appears 
     and inserting ``designated agencies'';
       (4) in subsection (f), by striking ``State'' and inserting 
     ``agency designated under subsection (c)'';
       (5) in subsection (g)(1), by striking ``State'' and 
     inserting ``State in which the program is located''; and
       (6) in subsection (h), by striking ``fiscal years 1999 
     through 2003'' and inserting ``fiscal years 2006 through 
     2011''.

     SEC. 421. INCENTIVE GRANTS.

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

     ``SEC. 113. INCENTIVE GRANTS.

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

     SEC. 422. VOCATIONAL REHABILITATION SERVICES GRANTS.

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

     SEC. 423. GAO STUDIES.

       (a) Study on Title I and Ticket to Work.--
       (1) In general.--The Comptroller General of the United 
     States shall conduct a study on the interaction of programs 
     carried out under title I of the Rehabilitation Act of 1973 
     (29 U.S.C. 720 et seq.) with the Ticket to Work and Self-
     Sufficiency Program established under section 1148 of the 
     Social Security Act (42 U.S.C. 1320b-19), including the 
     impact of the interaction on beneficiaries, community 
     rehabilitation programs (as defined in section 7 of the 
     Rehabilitation Act of 1973 (29 U.S.C. 705)), and State 
     vocational rehabilitation agencies.
       (2) Conduct of study.--In conducting the study under 
     paragraph (1), the Comptroller General of the United States 
     shall consult with all types of participants in the Ticket to 
     Work and Self-Sufficiency Program, including the Social 
     Security Administration, the Rehabilitation Services 
     Administration, ticketholders, designated State agencies, 
     entities carrying out such community rehabilitation programs 
     (including employment networks and nonemployment networks), 
     protection and advocacy agencies, MAXIMUS, and organizations 
     representing the interests of ticketholders.
       (3) Report to congress.--Not later than 18 months after the 
     date of enactment of this Act, the Comptroller General of the 
     United States shall submit the study conducted pursuant to 
     this subsection to the appropriate committees of Congress.
       (b) Study on the Allotment Formula.--
       (1) In general.--The Comptroller General of the United 
     States shall conduct a study on the relationship between the 
     State allotment formula under section 110 of the 
     Rehabilitation Act of 1973 (29 U.S.C. 730) and the ability of 
     States to provide vocational rehabilitation services in 
     accordance with the States' State plans under section 101 of 
     such Act (29 U.S.C. 721).
       (2) Conduct of study.--In conducting the study under 
     paragraph (1), the Comptroller General of the United States 
     shall consult with appropriate entities.
       (3) Report to congress.--Not later than 12 months after the 
     date of enactment of this Act, the Comptroller General of the 
     United States shall submit the study conducted pursuant to 
     this subsection to the appropriate committees of Congress.

                   Subtitle B--Research and Training

     SEC. 431. DECLARATION OF PURPOSE.

       Section 200(3) of the Rehabilitation Act of 1973 (29 U.S.C. 
     760(3)) is amended by inserting ``, in a timely and efficient 
     manner,'' before ``through''.

     SEC. 432. AUTHORIZATION OF APPROPRIATIONS.

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

     SEC. 433. NATIONAL INSTITUTE ON DISABILITY AND REHABILITATION 
                   RESEARCH.

       Section 202 of the Rehabilitation Act of 1973 (29 U.S.C. 
     762) is amended--
       (1) in subsection (b)--
       (A) in paragraph (6), by inserting before the semicolon the 
     following: ``, including convening a national assistive 
     technology summit, to be held at or in conjunction with a 
     national conference relating to assistive technology with 
     respect to all categories of disabilities''; and
       (B) in paragraph (10), by striking ``and telecommuting'' 
     and inserting ``, supported employment, and telecommuting'';
       (2) in subsection (f)(1)--
       (A) by striking ``Federal employees'' and inserting 
     ``Department of Education employees''; and
       (B) by adding at the end the following: ``The peer review 
     panel shall include a director of a designated State unit. It 
     shall include a member of the covered school community (for 
     an activity resulting in educational materials or a product 
     to be used in a covered school), a member of the business 
     community (for an activity resulting in a product to be used 
     in an employment activity), assistive technology developers 
     and manufacturers (for an activity relating to assistive 
     technology), or information technology vendors and 
     manufacturers (for an activity relating to information 
     technology).'';
       (3) by redesignating subsections (i), (j), and (k) as 
     subsections (j), (k), and (l), respectively;
       (4) by inserting after subsection (h) the following:
       ``(i)(1) The Director, with the assistance of the 
     Rehabilitation Research Advisory Council established under 
     section 205, shall determine if entities that receive 
     financial assistance under this title are complying with the 
     applicable requirements of this Act and achieving measurable 
     goals, described in section 204(d)(2), that are consistent 
     with the requirements of the programs under which the 
     entities received the financial assistance.
       ``(2) To assist the Director in carrying out the 
     responsibilities described in paragraph (1), the Director 
     shall require recipients of financial assistance under this 
     title to submit relevant information to evaluate program 
     outcomes with respect to the measurable goals described in 
     section 204(d)(2).''; and
       (5) by adding at the end the following:
       ``(m)(1) Not later than December 31 of each year, the 
     Secretary shall prepare, and submit to the Secretary, the 
     Committee on Education and the Workforce of the House of 
     Representatives, and the Committee on Health, Education, 
     Labor, and Pensions of

[[Page S5148]]

     the Senate, a report on the activities funded under this 
     title.
       ``(2) Such report shall include--
       ``(A) a compilation and summary of the information provided 
     by recipients of financial assistance for such activities 
     under this title; and
       ``(B) a summary of the applications for financial 
     assistance received under this title and the progress of the 
     recipients of financial assistance in achieving the 
     measurable goals described in section 204(d)(2).
       ``(n)(1) If the Director determines that an entity that 
     receives financial assistance under this title fails to 
     comply with the applicable requirements of this Act, or to 
     make progress toward achieving the measurable goals described 
     in section 204(d)(2), with respect to the covered activities 
     involved, the Director shall assist the entity through 
     technical assistance or other means, within 90 days after 
     such determination, to develop a corrective action plan.
       ``(2) If the entity fails to develop and comply with a 
     corrective action plan described in paragraph (1) during a 
     fiscal year, the entity shall be subject to 1 of the 
     following corrective actions selected by the Director:
       ``(A) Partial or complete termination of financial 
     assistance for the covered activities, until the entity 
     develops and complies with such a plan.
       ``(B) Ineligibility to receive financial assistance for 
     such covered activities for the following year.
       ``(3) The Secretary shall establish appeals procedures for 
     entities described in paragraph (1) that the Secretary 
     determines fail to comply with the applicable requirements of 
     this Act, or to make progress toward achieving the measurable 
     goals.
       ``(4) As part of the annual report required under 
     subsection (m), the Secretary shall describe each action 
     taken by the Secretary under paragraph (1) or (2) and the 
     outcomes of such action.''.

     SEC. 434. INTERAGENCY COMMITTEE.

       Section 203 of the Rehabilitation Act of 1973 (29 U.S.C. 
     763) is amended--
       (1) in subsection (a)(1), by striking ``and the Director of 
     the National Science Foundation'' and inserting ``the 
     Director of the National Science Foundation, the Secretary of 
     Commerce, and the Administrator of the Small Business 
     Administration''; and
       (2) in subsection (b)(2)--
       (A) in subparagraph (D), by striking ``and'' after the 
     semicolon;
       (B) in subparagraph (E), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(F) conduct a study, on the assistive technology 
     industry, for which the Committee shall--
       ``(i) determine the number of individuals who use assistive 
     technology and the scope of the technologies they use;
       ``(ii) separately identify categories of assistive 
     technology companies by the disability group served, and the 
     type of product or service provided, categorized by--
       ``(I) size (small, medium, and large) of the companies;
       ``(II) capitalization of the companies;
       ``(III) region in which the companies are located; and
       ``(IV) products or services produced by the companies;
       ``(iii) compile aggregate data on revenues and unit sales 
     of such companies, including information on international 
     sales, for a recent reporting period, categorized by 
     institution or user type acquiring the products or services, 
     disability for which the products or services are used, and 
     industry segment for the companies;
       ``(iv) identify platform availability and usage, for those 
     products and services that are electronic and information 
     technology-related;
       ``(v) identify the types of clients of the companies, such 
     as government, school, business, private payor, and 
     charitable clients, and funding sources for the clients; and
       ``(vi) specify geographic segments for the companies, to 
     determine whether there are significant distinctions in 
     industry opportunities on the basis of geography, other than 
     distinctions related to population.''.

     SEC. 435. RESEARCH AND OTHER COVERED ACTIVITIES.

       Section 204 of the Rehabilitation Act of 1973 (29 U.S.C. 
     764) is amended--
       (1) in subsection (a)--
       (A) in paragraph (2)(B)--
       (i) in clause (vi), by striking ``and'' after the 
     semicolon;
       (ii) in clause (vii), by striking the period at the end and 
     inserting ``; and''; and
       (iii) by adding at the end the following:
       ``(viii) studies, analyses, and other activities affecting 
     employment outcomes, including self-employment and 
     telecommuting, of individuals with disabilities.''; and
       (B) by adding at the end the following:
       ``(3) In carrying out this section, the Director shall 
     emphasize covered activities that are collaborations 
     between--
       ``(A) for-profit companies working in the assistive 
     technology, rehabilitative engineering, or information 
     technology fields; and
       ``(B) States or public or private agencies and 
     organizations.
       ``(4) In carrying out this section, the Director shall 
     emphasize covered activities that include plans for--
       ``(A) dissemination of educational materials, research 
     results, or findings, conclusions, and recommendations 
     resulting from covered activities; or
       ``(B) the commercialization of marketable products 
     resulting from the covered activities.'';
       (2) in subsection (b)--
       (A) in paragraph (1), by striking ``(18)'' each place it 
     appears and inserting ``(19)'';
       (B) in paragraph (2)--
       (i) in subparagraph (A)(i), by striking ``rehabilitation 
     services or'' and inserting ``rehabilitation services, 
     developers or providers of assistive technology devices, 
     assistive technology services, or information technology 
     devices or services, or providers of'' after ``rehabilitation 
     services'';
       (ii) in subparagraph (B)--

       (I) in clause (i), by inserting ``improve the evaluation 
     process for determining the assistive technology needs of 
     individuals with disabilities,'' after ``conditions,'';
       (II) in clause (ii), by inserting ``and assistive 
     technology services'' before the semicolon; and
       (III) in clause (iii), by inserting ``, assistive 
     technology services personnel,'' before ``and other'';

       (iii) in subparagraph (C)--

       (I) in clause (i), by inserting ``, including research on 
     assistive technology devices, assistive technology services, 
     and accessible electronic and information technology 
     devices'' before the semicolon; and
       (II) in clause (iii), by inserting ``, including the use of 
     assistive technology devices and accessible electronic and 
     information technology devices in employment'' before the 
     semicolon;

       (iv) in subparagraph (D), by inserting ``, including 
     training to provide knowledge about assistive technology 
     devices, assistive technology services, and accessible 
     electronic and information technology devices and services,'' 
     after ``personnel''; and
       (v) in subparagraph (G)(i), by inserting ``, assistive 
     technology-related, and accessible electronic and information 
     technology-related'' before ``courses''; and
       (C) in paragraph (3)--
       (i) in subparagraph (D)(ii), by adding at the end the 
     following: ``Each such Center conducting activities including 
     the creation of an assistance technology device shall include 
     in the committee representatives from the assistive 
     technology industry and accessible electronic and information 
     technology industry. Each such Center conducting activities 
     involving a covered school, or an employer, shall include in 
     the committee a representative of the covered school, or of 
     the employer, respectively.''; and
       (ii) in subparagraph (G)(ii) by inserting ``the success of 
     any commercialized product researched or developed through 
     the Center,'' after ``disabilities,'';
       (D) in paragraph (8), by inserting ``the Department of 
     Commerce, the Small Business Administration,'' before ``other 
     Federal agencies,'';
       (E) in paragraph (13), in the matter preceding clause (i), 
     by striking ``employment needs of individuals with 
     disabilities'' and inserting ``employment needs, 
     opportunities, and outcomes, including self-employment, 
     supported employment, and telecommuting needs, opportunities, 
     and outcomes, of individuals with disabilities, including 
     older individuals with disabilities, and students with 
     disabilities who are transitioning from school to 
     postsecondary life, including employment''; and
       (E) by adding at the end the following:
       ``(19) Research grants may be used to provide for research 
     and demonstration projects that--
       ``(A) explore methods and practices for promoting access to 
     electronic commerce activities for individuals with 
     disabilities; and
       ``(B) will--
       ``(i) ensure dissemination of research findings;
       ``(ii) provide encouragement and support for initiatives 
     and new approaches by companies engaged in electronic 
     commerce activities; and
       ``(iii) result in the establishment and maintenance of 
     close working relationships between the disability, research, 
     and business communities.'';
       (3) in subsection (c)(2), by striking ``$500,000'' and 
     inserting ``$750,000''; and
       (4) by adding at the end the following:
       ``(d)(1) In awarding grants, contracts, or other financial 
     assistance under this title, the Director shall award the 
     financial assistance on a competitive basis.
       ``(2)(A) To be eligible to receive financial assistance 
     described in paragraph (1) for a covered activity, an entity 
     shall submit an application to the Director at such time, in 
     such manner, and containing such information as the Director 
     may require.
       ``(B) The application shall include information 
     describing--
       ``(i) measurable goals, and a timeline and specific plan 
     for meeting the goals, that the applicant has set for 
     addressing priorities related to--
       ``(I) commercialization of a marketable product (including 
     a marketable curriculum or research) resulting from the 
     covered activity;
       ``(II) in the case of a covered activity relating to 
     technology, technology transfer;
       ``(III) in the case of research, dissemination of research 
     results to, as applicable, government entities, individuals 
     with disabilities, covered schools, the business community, 
     the assistive technology community, and the accessible 
     electronic and information technology community; and
       ``(IV) other matters as required by the Director; and

[[Page S5149]]

       ``(ii) information describing how the applicant will 
     quantifiably measure the goals to determine whether the goals 
     have been accomplished.
       ``(3)(A) In the case of an application for financial 
     assistance under this title to carry out a covered activity 
     that results in the development of a marketable product, the 
     application shall also include a commercialization and 
     dissemination plan, containing commercialization and 
     marketing strategies for the product involved, and strategies 
     for disseminating information about the product. The 
     financial assistance shall not be used to carry out the 
     commercialization and marketing strategies.
       ``(B) In the case of any other application for financial 
     assistance to carry out a covered activity under this title, 
     the application shall also include a dissemination plan, 
     containing strategies for disseminating educational 
     materials, research results, or findings, conclusions, and 
     recommendations, resulting from the covered activity.''.

     SEC. 436. REHABILITATION RESEARCH ADVISORY COUNCIL.

       Section 205 of the Rehabilitation Act of 1973 (29 U.S.C. 
     765) is amended--
       (1) in subsection (a), by inserting ``at least'' before 
     ``12''; and
       (2) in subsection (c), by inserting after ``rehabilitation 
     researchers,'' the following: ``the directors of community 
     rehabilitation programs, the business community (and shall 
     include a representative of the small business community) 
     that has experience with the system of vocational 
     rehabilitation services carried out under this Act and with 
     hiring individuals with disabilities, the community of 
     assistive technology developers and manufacturers, the 
     community of information technology vendors and 
     manufacturers, the community of entities carrying out 
     programs under the Assistive Technology Act of 1998 (29 
     U.S.C. 3001 et seq.), the community of covered school 
     professionals,''.

     SEC. 437. DEFINITION.

       Title II of the Rehabilitation Act of 1973 (29 U.S.C. 761 
     et seq.) is amended by adding at the end the following:

     ``SEC. 206. DEFINITION.

       ``In this title, the term `covered school' means an 
     elementary school or secondary school (as such terms are 
     defined in section 9101 of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 7801)), a community college, 
     or an institution of higher education.''.

     Subtitle C--Professional Development and Special Projects and 
                             Demonstrations

     SEC. 441. TRAINING.

       Section 302 of the Rehabilitation Act of 1973 (29 U.S.C. 
     772) is amended--
       (1) in subsection (a)(1)--
       (A) in subparagraph (F), by striking the ``and'' after the 
     semicolon;
       (B) in subparagraph (G), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(H) personnel trained in providing assistive technology 
     services.'';
       (2) in subsection (b)(1)(B)(i), by striking ``or 
     prosthetics and orthotics'' and inserting ``prosthetics and 
     orthotics, rehabilitation teaching for the blind, or 
     orientation and mobility instruction''; and
       (3) in subsection (i), by striking ``fiscal years 1999 
     through 2003'' and inserting ``fiscal years 2006 through 
     2011''.

     SEC. 442. DEMONSTRATION AND TRAINING PROGRAMS.

       Section 303 of the Rehabilitation Act of 1973 (29 U.S.C. 
     773) is amended--
       (1) in subsection (b)(5)(A)(i), by striking ``special 
     projects'' and inserting ``not less than 2 special 
     projects'';
       (2) by redesignating subsections (c), (d), and (e) as 
     subsections (f), (g), and (i), respectively;
       (3) by inserting after subsection (b) the following:
       ``(c) Demonstration Projects for Employment of Students 
     With Intellectual Disabilities or Mental Illness.--
       ``(1) Purpose.--The purpose of this subsection is to 
     support model demonstration projects to provide supported and 
     competitive employment experiences for students with 
     intellectual disabilities or students with mental illness, 
     and training for personnel that work with students described 
     in this paragraph, to enable the students to gain employment 
     skills and experience that will promote effective transitions 
     from school to postsecondary life, including employment.
       ``(2) Awards authorized.--
       ``(A) Competitive awards authorized.--The Secretary may 
     award grants, contracts, and cooperative agreements, on a 
     competitive basis, to eligible organizations described in 
     paragraph (3), to enable the organizations to carry out 
     demonstration projects described in paragraph (1).
       ``(B) Duration.--The Secretary shall award grants, 
     contracts, and cooperative agreements under this subsection 
     for periods of 3 to 5 years.
       ``(3) Eligible organizations.--To be eligible to receive a 
     grant, contract, or cooperative agreement under this 
     subsection, an organization shall--
       ``(A) have expertise in providing employment and support 
     services for individuals with intellectual disabilities or 
     individuals with mental illness;
       ``(B) have a proven track record in successfully running 
     supported employment programs;
       ``(C) provide employment services that are exclusively 
     integrated community-based supported employment services;
       ``(D) have expertise in creating natural supports for 
     employment;
       ``(E) have expertise in providing computer training for the 
     targeted population for the project involved; and
       ``(F) have experience operating mentoring programs for the 
     target population in middle and high schools for at least a 
     decade in diverse communities throughout the Nation.
       ``(4) Applications.--Each organization desiring to receive 
     a grant, contract, or cooperative agreement under this 
     subsection shall submit an application to the Secretary at 
     such time, in such manner, and including such information as 
     the Secretary may require. Each application shall include--
       ``(A) a description of how the organization plans to carry 
     out the activities authorized in this subsection through a 
     demonstration project;
       ``(B) a description of how the organization will evaluate 
     the project;
       ``(C) a description of how the organization will 
     disseminate information about the activities and the impact 
     of the activities on the lives of students served by the 
     project; and
       ``(D) a description of how the organization will coordinate 
     activities with any other relevant service providers in the 
     locality where the organization is based, including federally 
     supported independent living centers.
       ``(5) Authorized activities.--An organization that receives 
     a grant, contract, or cooperative agreement under this 
     subsection shall use the funds made available through the 
     grant, contract, or cooperative agreement to carry out 1 or 
     more of the following activities for individuals, ages 14 
     through 21, who are students with intellectual disabilities 
     or students with mental illness:
       ``(A) Providing supported and competitive employment 
     experiences.--The development of innovative and effective 
     supported and competitive employment experiences after 
     school, on weekends, and in the summer, utilizing natural 
     supports that lead to competitive high-paying jobs.
       ``(B) Providing training to school and transition 
     personnel.--The development and deployment of experts to work 
     with transition programs (including personnel working with 
     students on transition) so that personnel from the programs 
     develop skills needed to train students with intellectual 
     disabilities or students with mental illness to be successful 
     in competitive employment in a range of settings, including 
     office settings. The training shall include training for the 
     personnel in providing instruction to students in computer 
     skills, office skills, interview etiquette, and appropriate 
     social behavior required for successful long-term employment 
     in professional environments.
       ``(6) Authorization of appropriations.--There are 
     authorized to be appropriated to carry out this subsection 
     $5,000,000 for fiscal year 2006 and such sums as may be 
     necessary for fiscal years 2007 through 2011.
       ``(d) Demonstration Project for Employment of Individuals 
     who are Deaf and Low Functioning.--
       ``(1) Purpose.--The purpose of this subsection is to 
     support a model demonstration project to provide training and 
     employment and support services for individuals who are deaf 
     and low functioning to enable them to gain employment skills 
     that will allow them to become employed and economically 
     self-sufficient.
       ``(2) Definition.--
       ``(A) In general.--In this subsection, the term `individual 
     who is deaf and low functioning' means an individual who has 
     been deaf from birth or very early childhood, reads at or 
     below the second grade level, has little or no intelligible 
     speech, and lacks a secondary school diploma or its 
     recognized equivalent.
       ``(B) Secondary disabilities.--Such term may include an 
     individual with a secondary disability.
       ``(3) Grants authorized.--
       ``(A) Competitive grants authorized.--The Secretary may 
     award grants to State agencies, other public agencies or 
     organizations, or not-for-profit organizations with expertise 
     in providing training and employment and support services for 
     individuals who are deaf and low functioning to support model 
     demonstration projects.
       ``(B) Duration.--Grants under this subsection shall be 
     awarded for a period not to exceed 5 years.
       ``(4) Authorized activities.--
       ``(A) Developing a comprehensive training program.--Each 
     grant recipient under this subsection shall develop an 
     innovative, comprehensive training program for individuals 
     who are deaf and low functioning that can be implemented at 
     multiple training locations through such means as distance 
     learning and use of advanced technology, as appropriate. Such 
     training program shall be developed to maximize the potential 
     for replication of the program by other training providers.
       ``(B) Implementation.--Each grant recipient under this 
     subsection shall implement the comprehensive training program 
     developed under subparagraph (A) as soon as feasible. Such 
     training shall provide instruction on the job and the social 
     skills necessary for successful long-term employment of 
     individuals who are deaf and low functioning.
       ``(C) Establishing a post-training program of employment 
     and support services.--Each grant recipient under this 
     subsection shall implement employment and

[[Page S5150]]

     support services to assist individuals who complete the 
     training program under subparagraph (A) in securing 
     employment and transitioning to the workplace, for a period 
     of not less than 90 days subsequent to placement in the 
     employment.
       ``(5) Applications.--Each entity desiring to receive a 
     grant under this subsection for a model demonstration project 
     shall submit an application to the Secretary at such time, in 
     such manner, and accompanied by such information as the 
     Secretary may require including--
       ``(A) a description of how the applicant plans to address 
     the activities authorized under this subsection;
       ``(B) a description of the evaluation plan to be used in 
     the model demonstration project;
       ``(C) a description of how the applicant will disseminate 
     information about the training program developed and the 
     results of the project; and
       ``(D) a description of how the entity will coordinate 
     activities with any other relevant service providers or 
     entities providing training and employment and support 
     services for individuals who are deaf and low functioning.
       ``(6) Mandated evaluation and dissemination activities.--
       ``(A) Annual report.--Not later than 2 years after the date 
     on which a grant under this subsection is awarded and 
     annually thereafter, the grant recipient shall submit to the 
     Commissioner a report containing information on--
       ``(i) the number of individuals who are participating in 
     the demonstration project funded under this subsection;
       ``(ii) the employment and other skills being taught in the 
     project;
       ``(iii) the number of individuals participating in the 
     project that are placed in employment;
       ``(iv) the job sites in which those individuals are placed 
     and the type of jobs the individuals are placed in; and
       ``(v) the number of individuals who have dropped out of the 
     project and the reasons for their terminating participation 
     in the project.
       ``(B) Evaluation of the project.--Each grant recipient 
     under this subsection shall implement the evaluation plan 
     approved in its application for determining the results of 
     the project within the timeframe specified in, and following 
     the provisions of, the approved application.
       ``(C) Participant evaluation process; final evaluation.--In 
     the final year of the project, the grant recipient will 
     prepare and submit to the Commissioner a final evaluation 
     report of the results of the model demonstration project 
     containing--
       ``(i) information on--

       ``(I) the number of individuals who participated in the 
     demonstration project;
       ``(II) the number of those individuals that are placed in 
     employment;
       ``(III) the job sites in which those individuals were 
     placed and the type of jobs the individuals were placed in;
       ``(IV) the number of those individuals who have dropped out 
     of the project and the reasons for their terminating 
     participation in the project; and
       ``(V) the number of those individuals who participated in 
     the project and who remain employed as of 2 months prior to 
     the date on which the final report is submitted to the 
     Secretary;

       ``(ii) a written analysis of the project, including both 
     the strengths and weaknesses of the project, to assist other 
     entities in replicating the training program developed 
     through the project; and
       ``(iii) such other information as the Secretary determines 
     appropriate.
       ``(D) Dissemination.--Not later than 5 years after the date 
     on which a grant is awarded under this subsection, the 
     evaluation report containing results of activities funded by 
     such grant shall be disseminated to designated State 
     agencies, school systems providing instruction to students 
     who are individuals who are deaf and low functioning, 
     supported employment providers, postsecondary vocational 
     training programs, employers, the Social Security 
     Administration, and other interested parties.
       ``(7) Authorization of appropriations.--There are 
     authorized to be appropriated to carry out this subsection, 
     $5,000,000 for fiscal year 2006 and such sums as may be 
     necessary for each of fiscal years 2007 through 2011.
       ``(e) Training and Technical Assistance Center To Promote 
     High-Quality Employment Outcomes for Individuals Receiving 
     Services from Designated State Agencies.--
       ``(1) In general.--The Commissioner shall award a grant, 
     contract, or cooperative agreement to an entity to support a 
     training and technical assistance program that--
       ``(A) responds to State-specific information requests 
     concerning high-quality employment outcomes, from designated 
     State agencies funded under title I, including--
       ``(i) requests for information on the expansion of self-
     employment, business ownership, and business development 
     opportunities, and other types of entrepreneural employment 
     opportunities for individuals with disabilities;
       ``(ii) requests for information on the expansion and 
     improvement of transition services to facilitate the 
     transition of students with disabilities from school to 
     postsecondary life, including employment;
       ``(iii) requests for examples of policies, practices, 
     procedures, or regulations, that have enhanced or may enhance 
     access to funding for assistive technology devices and 
     assistive technology services for individuals with 
     disabilities;
       ``(iv) requests for information on effective approaches to 
     enhance informed choice and a consumer-directed State 
     vocational rehabilitation system;
       ``(v) requests for assistance developing corrective action 
     plans;
       ``(vi) requests for assistance in developing and 
     implementing effective data collection and reporting systems 
     that measure the outcomes of the vocational rehabilitation 
     services, and preparing reports for the Commissioner as 
     described in section 106(b)(1); and
       ``(vii) requests for information on effective approaches 
     that enhance employment outcomes for individuals with 
     disabilities, including conducting outreach and forming 
     partnerships with business and industry; and
       ``(B) provides State-specific, regional, and national 
     training and technical assistance concerning vocational 
     rehabilitation services and related information to designated 
     State agencies, including--
       ``(i) facilitating onsite and electronic information 
     sharing using state-of-the-art Internet technologies such as 
     real-time online discussions, multipoint video conferencing, 
     and web-based audio/video broadcasts, on emerging topics that 
     affect vocational rehabilitation programs authorized under 
     title I;
       ``(ii) enabling the designated State agencies to coordinate 
     training and data collection efforts with one-stop centers 
     established under section 121(e) of the Workforce Investment 
     Act of 1998 (29 U.S.C. 2841(e));
       ``(iii) enabling the designated State agencies to provide 
     information on how the vocational rehabilitation programs 
     authorized under title I can provide technical assistance to 
     the one-stop centers on making programs offered through the 
     centers physically and programmatically accessible to 
     individuals with disabilities;
       ``(iv) sharing evidence-based and promising practices among 
     the vocational rehabilitation programs;
       ``(v) maintaining an accessible website that includes links 
     to--

       ``(I) the vocational rehabilitation programs;
       ``(II) appropriate Federal departments and agencies, and 
     private associations;
       ``(III) State assistive technology device and assistive 
     technology service demonstration programs, device loan 
     programs, device reutilization programs, alternative 
     financing systems, or State financing activities, operated 
     through, or independently of, comprehensive statewide 
     programs of technology-related assistance carried out under 
     section 4 of the Assistive Technology Act of 1998 (29 U.S.C. 
     3003), telework programs, and other programs that provide 
     sources of funding for assistive technology devices; and
       ``(IV) various programs, including programs with tax 
     credits, available to employers for hiring or accommodating 
     employees who are individuals with disabilities;

       ``(vi) enhancing employment outcomes for individuals with 
     mental illness and individuals with cognitive disabilities;
       ``(vii) convening experts from the vocational 
     rehabilitation programs to discuss and make recommendations 
     with regard to the employment of individuals with 
     disabilities and national emerging issues of importance to 
     individuals with vocational rehabilitation needs;
       ``(viii) enabling the designated State agencies to provide 
     practical information on effective approaches for business 
     and industry to use in employing individuals with 
     disabilities, including provision of reasonable 
     accommodations;
       ``(ix) providing information on other emerging issues 
     concerning the delivery of publicly funded employment and 
     training services and supports to assist individuals with 
     disabilities to enter the workforce, achieve improved 
     outcomes, and become economically self-sufficient; and
       ``(x) carrying out such other activities as the Secretary 
     may require.
       ``(2) Eligible entities.--To be eligible to receive a 
     grant, contract, or cooperative agreement under this 
     subsection, an entity shall have (or agree to award a grant 
     or contract to an entity that has)--
       ``(A) experience and expertise in administering vocational 
     rehabilitation services;
       ``(B) documented experience with and knowledge about self-
     employment, business ownership, business development, and 
     other types of entrepreneural employment opportunities and 
     outcomes for individuals with disabilities, providing 
     transition services for students with disabilities, and 
     assistive technology; and
       ``(C) the expertise necessary to identify the additional 
     data elements needed to provide comprehensive reporting of 
     activities and outcomes of the vocational rehabilitation 
     programs authorized under title I, and experience in 
     utilizing data to provide annual reports.
       ``(3) Collaboration.--In developing and providing training 
     and technical assistance under this subsection, a recipient 
     of a grant, contract, or cooperative agreement under this 
     subsection shall collaborate with other organizations, in 
     particular--
       ``(A) agencies carrying out vocational rehabilitation 
     programs under title I and national organizations 
     representing such programs;
       ``(B) organizations representing individuals with 
     disabilities;

[[Page S5151]]

       ``(C) organizations representing State officials and 
     agencies engaged in the delivery of assistive technology;
       ``(D) relevant employees from Federal departments and 
     agencies, other than the Department of Education;
       ``(E) representatives of businesses;
       ``(F) individuals with disabilities who use assistive 
     technology and understand the barriers to the acquisition of 
     such technology and assistive technology services; and
       ``(G) family members, guardians, advocates, and authorized 
     representatives of such individuals.'';
       (4) by inserting after subsection (g), as redesignated by 
     paragraph (2), the following:
       ``(h) Access to Telework.--
       ``(1) Definition of telework.--In this subsection, the term 
     `telework' means work from home and other telework sites with 
     the assistance of a computer and with reasonable 
     accommodations, including the necessary equipment to 
     facilitate successful work from home and other telework 
     sites.
       ``(2) Authorization of program.--The Commissioner is 
     authorized to make grants to States and governing bodies of 
     Indian tribes located on Federal and State reservations (and 
     consortia of such governing bodies) to pay for the Federal 
     share of the cost of establishing or expanding a telework 
     program.
       ``(3) Application.--A State or Indian tribe that desires to 
     receive a grant under this subsection shall submit an 
     application to the Commissioner at such time, in such manner, 
     and containing such information as the Commissioner may 
     require.
       ``(4) Use of funds.--
       ``(A) In general.--A State or Indian tribe that receives a 
     grant under this subsection shall establish or expand a 
     telework program that shall provide assistance through loans 
     or other alternative financing mechanisms to individuals with 
     disabilities. The State or Indian tribe shall provide the 
     assistance through the program to enable such individuals to 
     purchase computers or other equipment, including adaptive 
     equipment, to facilitate access to employment and enhance 
     employment outcomes by providing the individual with the 
     opportunity--
       ``(i) to work from home or other telework sites so that 
     such individuals are able to telework; or
       ``(ii) to become self-employed on a full-time or part-time 
     basis from home or other telework sites.
       ``(B) Development of telework opportunities and business 
     plans.--A State or Indian tribe that receives a grant under 
     this subsection may use not more than 10 percent of the grant 
     award to develop telework opportunities with employers and 
     assist in the development of business plans for individuals 
     with disabilities interested in self-employment, before such 
     individuals apply for assistance through the telework 
     program.
       ``(C) Self employment.--A State or Indian tribe that 
     receives a grant under this subsection shall enter into 
     cooperative agreements with small business development 
     centers for the development of business plans as described in 
     section 103(a)(13) for individuals described in subparagraph 
     (B), and provide assurances that the State or Indian tribe 
     will, through plans to achieve self-support, vocational 
     rehabilitation services, or other means, identify ways for 
     the individuals described in subparagraph (B) to pay for the 
     development of business plans, before such individuals apply 
     for assistance through the telework program.
       ``(D) Definitions.--In this paragraph:
       ``(i) Plan to achieve self-support.--The term `plan to 
     achieve self-support' means a plan described in sections 
     416.1180 through 416.1182 of title 20, Code of Federal 
     Regulations (or any corresponding similar regulation or 
     ruling).
       ``(ii) Small business development center.--The term `small 
     business development center' means a center established under 
     section 21 of the Small Business Act (15 U.S.C. 648).
       ``(5) Federal share.--The Federal share of the cost of 
     establishing or expanding a telework program under this 
     section shall be 10 percent of the cost.
       ``(6) Existing grant recipients.--An entity that receives a 
     grant under the Access to Telework Fund Program under 
     subsection (b) for a fiscal year may use the funds made 
     available through that grant for that fiscal year in 
     accordance with this subsection rather than subsection (b).
       ``(7) Annual report.--
       ``(A) In general.--A State or Indian tribe that receives a 
     grant under this subsection shall prepare and submit an 
     annual report to the Commissioner.
       ``(B) Contents.--The report under subparagraph (A) shall 
     include the following:
       ``(i) Information on the characteristics of each individual 
     with a disability that receives assistance through a loan or 
     other alternative financing mechanism under the program, 
     including information about the individual such as the 
     following:

       ``(I) Age.
       ``(II) Ethnicity.
       ``(III) Employment status at the time of application for 
     assistance through a loan or other alternative financing 
     mechanism under this subsection.
       ``(IV) Whether the individual attempted to secure financial 
     support from other sources to enable the individual to 
     telework and, if so, a description of such sources.
       ``(V) Whether the individual is working and, if so, whether 
     the individual teleworks, the occupation in which the 
     individual is working, the hourly salary the individual 
     receives, and the hourly salary of the individual prior to 
     receiving assistance through a loan or other alternative 
     financing mechanism under the program.
       ``(VI) Whether the individual has repaid assistance from 
     the loan or other alternative financing mechanism received 
     under the program, is in repayment status, is delinquent on 
     repayments, or has defaulted on the assistance from the loan 
     or other alternative financing mechanism.

       ``(ii) An analysis of the individuals with disabilities 
     that have benefited from the program.
       ``(iii) Any other information that the Commissioner may 
     require.''; and
       (5) in subsection (i), as redesignated by paragraph (2)--
       (A) by striking ``this section'' and inserting ``this 
     section (other than subsections (c) and (d))''; and
       (B) by striking ``fiscal years 1999 through 2003'' and 
     inserting ``fiscal years 2006 through 2011''.

     SEC. 443. DISABILITY CAREER PATHWAYS PROGRAM.

       Section 303 of the Rehabilitation Act of 1973 (29 U.S.C. 
     773) is amended--
       (1) by redesignating subsection (i) (as redesignated by 
     section 442(2) as subsection (j); and
       (2) by inserting after subsection (h) the following new 
     subsection:
       ``(i) Grants for Disability Career Pathways Program.--
       ``(1) Definitions.--In this subsection:
       ``(A) Assistive technology.--The term `assistive 
     technology' has the meaning given the term in section 3 of 
     the Assistive Technology Act of 1998 (29 U.S.C. 3002).
       ``(B) Center for independent living.--The term `center for 
     independent living' means a center for independent living 
     funded under subtitle C of title VII.
       ``(C) Covered institution.--The term `covered institution' 
     means--
       ``(i) a secondary school; and
       ``(ii) in the discretion of the eligible consortium 
     involved, an institution of higher education.
       ``(D) Eligible consortium.--The term `eligible consortium' 
     means a consortium described in paragraph (3)(A).
       ``(E) Secondary school.--The term `secondary school' has 
     the meaning given the term in section 9101 of the Elementary 
     and Secondary Education Act of 1965 (20 U.S.C. 7801).
       ``(2) Purpose of program.--The Commissioner may establish a 
     Disability Career Pathways program, through which the 
     Commissioner may make grants, for periods of up to 5 years, 
     to institutions of higher education that establish eligible 
     consortia, to enable the consortia to develop and carry out 
     training and education related to disability studies and 
     leadership development. The consortia shall provide the 
     training and education for the purpose of providing career 
     pathways for students at a covered institution, in fields 
     pertinent to individuals with disabilities, and particularly 
     pertinent to the employment of individuals with disabilities.
       ``(3) Application.--To be eligible to receive a grant under 
     this subsection on behalf of a consortium, an institution of 
     higher education shall submit an application to the Secretary 
     at such time, in such manner, and containing such information 
     as the Secretary may require, including information 
     demonstrating--
       ``(A) that the institution of higher education has 
     established a consortium of members that represent--
       ``(i) the institution of higher education;
       ``(ii) a community college;
       ``(iii) a secondary school;
       ``(iv) a center for independent living;
       ``(v) a designated State agency;
       ``(vi) a one-stop center established under section 121(e) 
     of the Workforce Investment Act of 1998 (29 U.S.C. 2841(e)); 
     and
       ``(vii) the local business community;
       ``(B) the collaborative working relationships between the 
     institution of higher education and the other members of the 
     consortium, and describing the activities that each member 
     shall undertake; and
       ``(C) the capacity and expertise of the institution of 
     higher education--
       ``(i) to coordinate training and education related to 
     disability studies and leadership development with 
     educational institutions and disability-related 
     organizations; and
       ``(ii) to conduct such training and education effectively.
       ``(4) Distribution of grants.--In making grants under this 
     subsection, the Commissioner shall ensure that the grants 
     shall be distributed for a geographically diverse set of 
     eligible consortia throughout all regions.
       ``(5) Mandatory uses of funds.--An institution of higher 
     education that receives a grant under this subsection on 
     behalf of a consortium shall ensure that the consortium shall 
     use the grant funds to--
       ``(A) encourage interest in, enhance awareness and 
     understanding of, and provide educational opportunities in, 
     disability-related fields, and encourage leadership 
     development among students at a covered institution, 
     including such students who are individuals with 
     disabilities;
       ``(B) enable the students at a covered institution to gain 
     practical skills and identify work experience opportunities, 
     including opportunities developed by the consortium in 
     conjunction with the private sector, that benefit individuals 
     with disabilities;

[[Page S5152]]

       ``(C) develop postsecondary school career pathways leading 
     to gainful employment, the attainment of an associate or 
     baccalaureate degree, or the completion of further coursework 
     or a further degree, in a disability-related field;
       ``(D) offer credit-bearing, college-level coursework in a 
     disability-related field to qualified students at a covered 
     institution; and
       ``(E) ensure faculty and staff employed by the members are 
     available to students at a covered institution for 
     educational and career advising, and to teachers and staff at 
     a covered institution for disability-related training.
       ``(6) Permissible uses of funds.--An institution of higher 
     education that receives a grant under this subsection on 
     behalf of a consortium may permit the consortium to use the 
     grant funds to assess the feasibility of developing or 
     adapting disabilities studies curricula, including curricula 
     with distance learning opportunities, for use at institutions 
     of higher education.
       ``(7) Consultation.--The consortium shall consult with 
     appropriate agencies that serve or assist individuals with 
     disabilities, and the parents, family members, guardians, 
     advocates, or authorized representatives of the individuals, 
     located in the jurisdiction served by the consortium, 
     concerning the program of education and training carried out 
     by the consortium.
       ``(8) Reviews.--
       ``(A) Advisory committee.--For an institution of higher 
     education to be eligible to receive a grant under this 
     subsection on behalf of a consortium, the consortium shall 
     have an advisory committee that consists of members that 
     represent the interests of individuals with disabilities, 
     including--
       ``(i) a professional in the field of vocational 
     rehabilitation;
       ``(ii) an individual with a disability or a family member 
     of such an individual; and
       ``(iii) a representative of each type of entity or 
     community represented on the consortium.
       ``(B) Quarterly reviews.--The advisory committee shall meet 
     at least once during each calendar quarter to conduct a 
     review of the program of education and training carried out 
     by the consortium. The committee shall directly advise the 
     governing board of the institution of higher education in the 
     consortium about the views and recommendations of the 
     advisory committee resulting from the review.
       ``(9) Accountability.--Every 2 years, the Commissioner 
     shall--
       ``(A) using information collected from the reviews required 
     in paragraph (8), assess the effectiveness of the Disability 
     Career Pathways program carried out under this subsection, 
     including assessing how many individuals were served by each 
     eligible consortium and how many of those individuals 
     received postsecondary education, or entered into employment, 
     in a disability-related field; and
       ``(B) prepare and submit to Congress a report containing 
     the results of the assessments described in subparagraph 
     (A).''.

     SEC. 444. MIGRANT AND SEASONAL FARMWORKERS.

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

     SEC. 445. RECREATIONAL PROGRAMS.

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

               Subtitle D--National Council on Disability

     SEC. 451. AUTHORIZATION OF APPROPRIATIONS.

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

                    Subtitle E--Rights and Advocacy

     SEC. 461. ARCHITECTURAL AND TRANSPORTATION BARRIERS 
                   COMPLIANCE BOARD.

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

     SEC. 462. PROTECTION AND ADVOCACY OF INDIVIDUAL RIGHTS.

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

 Subtitle F--Employment Opportunities for Individuals With Disabilities

     SEC. 471. PROJECTS WITH INDUSTRY.

       Section 611(a) of the Rehabilitation Act of 1973 (29 U.S.C. 
     795(a)) is amended--
       (1) in paragraph (1), by inserting ``, locally and 
     nationally'' before the period at the end; and
       (2) in paragraph (2)--
       (A) in the matter preceding subparagraph (A), by inserting 
     ``local and national'' before ``Projects With Industry''; and
       (B) in subparagraph (A)--
       (i) in clause (iii), by striking ``and'' after the 
     semicolon;
       (ii) in clause (iv), by inserting ``and'' after the 
     semicolon; and
       (iii) by adding at the end the following:
       ``(v) coordinate activities with the Job Corps center 
     industry councils established under section 154 of the 
     Workforce Investment Act of 1998 (29 U.S.C. 2894);''.

     SEC. 472. PROJECTS WITH INDUSTRY AUTHORIZATION OF 
                   APPROPRIATIONS.

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

     SEC. 473. SERVICES FOR INDIVIDUALS WITH SIGNIFICANT 
                   DISABILITIES AUTHORIZATION OF APPROPRIATIONS.

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

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

     SEC. 481. STATE PLAN.

       Section 704 of the Rehabilitation Act of 1973 (42 U.S.C. 
     795c) is amended by adding at the end the following:
       ``(o) Promoting Full Access to Community Life.--
       ``(1) In general.--The plan shall describe how the State 
     will provide independent living services that promote full 
     access to community life for individuals with significant 
     disabilities.
       ``(2) Services.--The services shall include, as 
     appropriate--
       ``(A) facilitating transitions of--
       ``(i) youth who are individuals with significant 
     disabilities and have completed individualized education 
     programs under section 614(d) of the Individuals with 
     Disabilities Education Act (20 U.S.C. 1414(d)) to 
     postsecondary life, including employment; and
       ``(ii) individuals with significant disabilities from 
     nursing homes and other institutions, including institutions 
     serving individuals with cognitive disabilities, to 
     community-based residences;
       ``(B) assisting individuals with significant disabilities 
     at risk of entering institutions to remain in the community; 
     and
       ``(C) promoting home ownership among individuals with 
     significant disabilities.''.

     SEC. 482. STATEWIDE INDEPENDENT LIVING COUNCIL.

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

     SEC. 483. INDEPENDENT LIVING SERVICES AUTHORIZATION OF 
                   APPROPRIATIONS.

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

     SEC. 484. PROGRAM AUTHORIZATION.

       Section 721 of the Rehabilitation Act of 1973 (42 U.S.C. 
     796f) is amended--
       (1) by striking subsection (c) and inserting the following:
       ``(c) Allotments to States.--
       ``(1) Definitions.--In this subsection:
       ``(A) Additional appropriation.--The term `additional 
     appropriation' means the amount (if any) by which the 
     appropriation for a fiscal year exceeds the total of--
       ``(i) the amount reserved under subsection (b) for that 
     fiscal year; and
       ``(ii) the appropriation for fiscal year 2003.
       ``(B) Appropriation.--The term `appropriation' means the 
     amount appropriated to carry out this part.
       ``(C) Base appropriation.--The term `base appropriation' 
     means the portion of the appropriation for a fiscal year that 
     is equal to the lesser of--
       ``(i) an amount equal to 100 percent of the appropriation, 
     minus the amount reserved under subsection (b) for that 
     fiscal year; or
       ``(ii) the appropriation for fiscal year 2003.
       ``(2) Allotments to states from base appropriation.--After 
     the reservation required by subsection (b) has been made, the 
     Commissioner shall allot to each State whose State plan has 
     been approved under section 706 an amount that bears the same 
     ratio to the base appropriation as the amount the State 
     received under this subsection for fiscal year 2003 bears to 
     the total amount that all States received under this 
     subsection for fiscal year 2003.
       ``(3) Allotments to states of additional appropriation.--
     From any additional appropriation for each fiscal year, the 
     Commissioner shall allot to each State whose State plan has 
     been approved under section 706 an amount equal to the sum 
     of--
       ``(A) an amount that bears the same ratio to 50 percent of 
     the additional appropriation as the population of the State 
     bears to the population of all States; and
       ``(B) \1/56\ of 50 percent of the additional 
     appropriation.''; and
       (2) by adding at the end the following:
       ``(e) Carryover Authority.--Notwithstanding any other 
     provision of law--

[[Page S5153]]

       ``(1) any funds appropriated for a fiscal year to carry out 
     a grant program under section 722 or 723, that are not 
     obligated and expended by recipients prior to the beginning 
     of the succeeding fiscal year shall remain available for 
     obligation and expenditure by such recipients during that 
     succeeding fiscal year and the subsequent fiscal year; and
       ``(2) any amounts of program income received by recipients 
     under a grant program under section 722 or 723 in a fiscal 
     year, that are not obligated and expended by recipients prior 
     to the beginning of the succeeding fiscal year, shall remain 
     available for obligation and expenditure by such recipients 
     during that succeeding fiscal year and the subsequent fiscal 
     year.''.

     SEC. 485. GRANTS TO CENTERS FOR INDEPENDENT LIVING IN STATES 
                   IN WHICH FEDERAL FUNDING EXCEEDS STATE FUNDING.

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

     SEC. 486. GRANTS TO CENTERS FOR INDEPENDENT LIVING IN STATES 
                   IN WHICH STATE FUNDING EQUALS OR EXCEEDS 
                   FEDERAL FUNDING.

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

     SEC. 487. STANDARDS AND ASSURANCES FOR CENTERS FOR 
                   INDEPENDENT LIVING.

       Section 725(b) of the Rehabilitation Act of 1973 (29 U.S.C. 
     796f-4(b)) is amended by adding at the end the following:
       ``(8) Promoting full access to community life.--
       ``(A) In general.--The center shall provide independent 
     living services that promote full access to community life 
     for individuals with significant disabilities.
       ``(B) Services.--The services shall include, as 
     appropriate--
       ``(i) facilitating transitions of--

       ``(I) youth who are individuals with significant 
     disabilities and have completed individualized education 
     programs under section 614(d) of the Individuals with 
     Disabilities Education Act (20 U.S.C. 1414(d)) to 
     postsecondary life, including employment; and
       ``(II) individuals with significant disabilities from 
     nursing homes and other institutions, including institutions 
     serving individuals with cognitive disabilities, to 
     community-based residences;

       ``(ii) assisting individuals with significant disabilities 
     at risk of entering institutions to remain in the community; 
     and
       ``(iii) promoting home ownership among individuals with 
     significant disabilities.''.

     SEC. 488. CENTERS FOR INDEPENDENT LIVING AUTHORIZATION OF 
                   APPROPRIATIONS.

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

     SEC. 489. INDEPENDENT LIVING SERVICES FOR OLDER INDIVIDUALS 
                   WHO ARE BLIND.

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

     ``SEC. 752. TRAINING AND TECHNICAL ASSISTANCE.

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

     SEC. 490. PROGRAM OF GRANTS.

       Section 753 of the Rehabilitation Act of 1973, as 
     redesignated by section 489, is amended--
       (1) by striking subsection (h);
       (2) by redesignating subsections (i) and (j) as subsections 
     (h) and (i), respectively;
       (3) in subsection (b), by striking ``section 753'' and 
     inserting ``section 754'';
       (4) in subsection (c)--
       (A) in paragraph (1), by striking ``section 753'' and 
     inserting ``section 754''; and
       (B) in paragraph (2)--
       (i) by striking ``subsection (j)'' and inserting 
     ``subsection (i)''; and
       (ii) by striking ``subsection (i)'' and inserting 
     ``subsection (h)'';
       (5) in subsection (g), by inserting ``, or contracts 
     with,'' after ``grants to'';
       (6) in subsection (h), as redesignated by paragraph (2)--
       (A) in paragraph (1), by striking ``subsection (j)(4)'' and 
     inserting ``subsection (i)(4)''; and
       (B) in paragraph (2)--
       (i) in subparagraph (A)(vi), by adding ``and'' after the 
     semicolon;
       (ii) in subparagraph (B)(ii)(III), by striking ``; and'' 
     and inserting a period; and
       (iii) by striking subparagraph (C); and
       (7) in subsection (i), as redesignated by paragraph (2)--
       (A) by striking paragraph (2) and inserting the following:
       ``(2) Minimum allotment.--
       ``(A) States.--In the case of any of the several States, 
     the District of Columbia, or the Commonwealth of Puerto Rico, 
     the amount referred to in paragraph (1)(A) for a fiscal year 
     is the greater of--
       ``(i) $350,000;
       ``(ii) an amount equal to the amount the State, the 
     District of Columbia, or the Commonwealth of Puerto Rico 
     received to carry out this chapter for fiscal year 2003; or
       ``(iii) an amount equal to \1/3\ of 1 percent of the amount 
     appropriated under section 754, and not reserved under 
     section 752, for the fiscal year and available for allotments 
     under subsection (a).
       ``(B) Certain territories.--In the case of Guam, American 
     Samoa, the United States Virgin Islands, or the Commonwealth 
     of the Northern Mariana Islands, the amount referred to in 
     paragraph (1)(A) for a fiscal year is $60,000.'';
       (B) in paragraph (3)(A), by striking ``section 753'' and 
     inserting ``section 754, and not reserved under section 
     752,''; and
       (C) in paragraph (4)(B)(i), by striking ``subsection (i)'' 
     and inserting ``subsection (h)''.

     SEC. 491. INDEPENDENT LIVING SERVICES FOR OLDER INDIVIDUALS 
                   WHO ARE BLIND AUTHORIZATION OF APPROPRIATIONS.

       Section 754 of the Rehabilitation Act of 1973, as 
     redesignated by section 489, is amended by striking ``fiscal 
     years 1999 through 2003'' and inserting ``fiscal years 2006 
     through 2011''.

                       Subtitle H--Miscellaneous

     SEC. 495. HELEN KELLER NATIONAL CENTER ACT.

       (a) General Authorization of Appropriations.--The first 
     sentence of section 205(a) of the Helen Keller National 
     Center Act (29 U.S.C. 1904(a)) is amended by striking ``1999 
     through 2003'' and inserting ``2006 through 2011''.
       (b) Helen Keller National Center Federal Endowment Fund.--
     The first sentence of section 208(h) of the Helen Keller 
     National Center Act (29 U.S.C. 1907(h)) is amended by 
     striking ``1999 through 2003'' and inserting ``2006 through 
     2011''.

                 TITLE V--TRANSITION AND EFFECTIVE DATE

     SEC. 501. TRANSITION PROVISIONS.

       The Secretary of Labor shall, at the discretion of the 
     Secretary, take such actions as the Secretary determines to 
     be appropriate to provide for the orderly implementation of 
     titles I and III of this Act. The Secretary of Education 
     shall, at the discretion of the Secretary, take such actions 
     as the Secretary determines to be appropriate to provide for 
     the orderly implementation of titles II and IV of this Act.

     SEC. 502. EFFECTIVE DATE.

       Except as otherwise provided in this Act, this Act and the 
     amendments made by this Act shall take effect on the date of 
     enactment of this Act.
  Mr. KENNEDY. Mr. President, It is a privilege to join my colleagues 
in introducing this bipartisan bill to reauthorize the Workforce 
Investment Act and increase the opportunities for workers to obtain the 
services and training they need to hold good jobs in the years ahead.
  This bill strengthens the current One-Stop system we established in 
1998, so that many more people can be served. The bill creates stronger 
partnerships with businesses to recruit new workers, collaborate in 
training current workers, improve career ladder opportunities, and work 
with local leaders to meet the changing needs of their community.
  The One-Stop system is needed more than ever now, to serve hard-
working Americans who have lost their jobs

[[Page S5154]]

through no fault of their own as we struggle to rebuild our economy and 
adjust to the new century and the globalization forces that are 
transforming our society and our workforce. Current employees, 
especially the growing number of manufacturing workers, need effective 
training to be eligible for the available jobs in their area.
  We have also worked to remove the sequencing of services for persons 
entering the workforce who face barriers to employment. Providers can 
move adults directly to skills training, or create training programs 
that include literacy and language skills as well, so that job training 
is not delayed.
  The bill also encourages local providers to continue the training 
programs until employees can be self-sufficient. For those who start on 
the minimum wage, the support system should be there to help them 
qualify for the better-paying jobs that will enable them to support 
their families. Some men and women may obtain their first job through 
the system, and continue to participate as they move up their career 
ladders.
  The bill will also help young people. Last summer, the youth 
unemployment rate rose to 17 percent and we were all acutely aware of 
the special challenges that young workers face in this economy. The 
youth program will continue to work with both in-school and out-of-
school young men and women to help them obtain the education and the 
real job experience they need to be competitive.
  The bill pays particular attention to the needs of people with 
disabilities. Their access to the program is essential if the system is 
to be truly universal. It's unacceptable today that hundreds of 
thousands of people with disabilities are unable to find employment. 
Workforce training programs must coordinate with vocational 
rehabilitation programs to provide many more opportunities for those 
with physical and mental challenges.
  For over thirty years, since the Vocational Rehabilitation Act was 
first enacted in 1973, state vocational rehabilitation programs have 
brought new hope to individuals with disabilities throughout the 
country, so that they can reach their full potential and actively 
participate in their communities.
  Through vocational rehabilitation, individuals with disabilities can 
obtain the training, counseling, support and job opportunities they 
need in order to have independent, productive, and fulfilling lives. 
For millions of these Americans, vocational rehabilitation is the 
difference between dependence and independence, between lost potential 
and a productive career.
  In 1998, vocational rehabilitation became part of the state-wide 
workforce system in each state. This reauthorization will strengthen 
that partnership, so that many more working-age individuals with 
disabilities, even those with the most significant challenges, have 
realistic opportunities to obtain the services and support they need to 
reach their employment goals.
  The legislation also strengthens other aspects of independent living, 
so that students and adults with disabilities can receive the services 
and support they need for community-based living.
  Our goal in this reauthorization is to see that the talents and 
strengths of all individuals with disabilities are recognized, 
enhanced, and fairly rewarded in communities and workplaces across the 
nation.
  The bill also contains the Adult Literacy Act, which funds critical 
programs for states to assist adults in obtaining the basic reading, 
writing, numeracy and English language skills that they need to be full 
participants in the workplace and in society.
  We all know that education is the great equalizer. Improving basic 
literacy is a key component of job training. Large numbers of persons 
are on waiting lists across the country to be served under this 
program--25,000 people in Massachusetts alone--and we need to do more 
to serve adults who recognize their need to improve these skills in 
order to improve their lives.
  I commend my colleagues and the many organizations representing 
governors, mayors, county officials, youth, women, and low-income 
persons who were so actively involved in preparing this legislation. We 
have tried to listen carefully to the many leaders who have practical 
experience in implementing these laws.
  I look forward to continuing this bipartisan effort and to the early 
enactment of this needed legislation.
                                 ______