[Congressional Record Volume 160, Number 4 (Wednesday, January 8, 2014)]
[Senate]
[Pages S142-S184]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
TEXT OF AMENDMENTS
SA 2613. Mr. PORTMAN (for himself and Mr. Johanns) submitted an
amendment intended to be proposed by him to the bill S. 1845, to
provide for the extension of certain unemployment benefits, and for
other purposes; which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. ___. DISQUALIFICATION ON RECEIPT OF DISABILITY INSURANCE
BENEFITS IN A MONTH FOR WHICH UNEMPLOYMENT
COMPENSATION IS RECEIVED.
(a) In General.--Section 223(d)(4) of the Social Security
Act (42 U.S.C. 423(d)(4)) is amended by adding at the end the
following:
``(C)(i) If for any month an individual is entitled to
unemployment compensation, such individual shall be deemed to
have engaged in substantial gainful activity for such month.
``(ii) For purposes of clause (i), the term `unemployment
compensation' means--
``(I) `regular compensation', `extended compensation', and
`additional compensation' (as such terms are defined by
section 205 of the Federal-State Extended Unemployment
Compensation Act (26 U.S.C. 3304 note)); and
``(II) trade adjustment assistance under title II of the
Trade Act of 1974 (19 U.S.C. 2251 et seq.).''.
(b) Trial Work Period.--Section 222(c) of the Social
Security Act (42 U.S.C. 422(c)) is amended by adding at the
end the following:
``(6)(A) For purposes of this subsection, an individual
shall be deemed to have rendered services in a month if the
individual is entitled to unemployment compensation for such
month.
``(B) For purposes of subparagraph (A), the term
`unemployment compensation' means--
``(i) `regular compensation', `extended compensation', and
`additional compensation' (as such terms are defined by
section 205 of the Federal-State Extended Unemployment
Compensation Act (26 U.S.C. 3304 note)); and
``(ii) trade adjustment assistance under title II of the
Trade Act of 1974 (19 U.S.C. 2251 et seq.).''.
(c) Data Matching.--The Commissioner of Social Security
shall implement the amendments made by this section using
appropriate electronic data.
(d) Effective Date.--The amendments made by this section
shall apply with respect to months after December 2014.
______
SA 2614. Mr. PAUL (for himself and Mr. McConnell) submitted an
amendment intended to be proposed by him to the bill S. 1845, to
provide for the extension of certain unemployment benefits, and for
other purposes; which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
DIVISION B--ECONOMIC FREEDOM ZONES
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This division may be cited as the
``Economic Freedom Zones Act of 2013''.
(b) Table of Contents.--The table of contents for this
division is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I--PROHIBITION AGAINST A FEDERAL GOVERNMENT BAILOUT OF A STATE,
CITY, OR MUNICIPALITY
Sec. 101. Prohibition of Federal Government Bailouts.
TITLE II--DESIGNATION OF ECONOMIC FREEDOM ZONES (EFZ)
Sec. 201. Eligibility requirements for Economic Freedom Zone Status.
Sec. 202. Area and regional requirements.
Sec. 203. Application and duration of designation.
TITLE III--FEDERAL TAX INCENTIVES
Sec. 301. Tax incentives related to Economic Freedom Zones.
TITLE IV--FEDERAL REGULATORY REDUCTIONS
Sec. 401. Suspension of certain laws and regulations.
TITLE V--EDUCATIONAL ENHANCEMENTS
Sec. 501. Educational opportunity tax credit.
Sec. 502. School choice through portability.
Sec. 503. Special economic freedom zone visas.
Sec. 504. Economic Freedom Zone educational savings accounts.
TITLE VI--COMMUNITY ASSISTANCE AND REBUILDING
Sec. 601. Nonapplication of Davis-Bacon.
Sec. 602. Economic Freedom Zone charitable tax credit.
TITLE VII--STATE AND COMMUNITY POLICY RECOMMENDATIONS
Sec. 701. Sense of the Senate concerning policy recommendations.
SEC. 2. DEFINITIONS.
In this division:
(1) City.--The term ``city'' means any unit of general
local government that is classified as a municipality by the
United States Census Bureau, or is a town or township as
determined jointly by the Director of the Office of
Management and Budget and the Secretary of the Treasury.
(2) County.--The term ``County'' means any unit of local
general government that is classified as a county by the
United States Census Bureau.
(3) Eligible entity.--The term ``eligible entity'' means a
State, municipality, zip code, or rural area.
(4) Municipality.--The term ``municipality'' has the
meaning given that term in section 101(40) of title 11,
United States Code.
(5) Rural area.--The term ``rural area'' means any area not
in an urbanized area, as that term is defined by the Census
Bureau.
(6) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
(7) Zip code.--The term ``zip code'' means any area or
region associated with or covered by a United States Postal
zip code of not less than 5 digits.
TITLE I--PROHIBITION AGAINST A FEDERAL GOVERNMENT BAILOUT OF A STATE,
CITY, OR MUNICIPALITY
SEC. 101. PROHIBITION OF FEDERAL GOVERNMENT BAILOUTS.
(a) Definitions.--In this section--
(1) the term ``credit rating'' has the meaning given that
term in section 3(a)(60) of the Securities Exchange Act of
1934 (15 U.S.C. 78c(a)(60));
(2) the term ``credit rating agency'' has the meaning given
that term in section 3(a)(61) of the Securities Exchange Act
of 1934 (15 U.S.C. 78c(a)(61));
(3) the term ``Federal assistance'' means the use of any
advances from the Federal Reserve credit facility or discount
window that is not part of a program or facility with broad-
based eligibility under section 13(3)(A) of the Federal
Reserve Act (12 U.S.C. 343(3)(A)), Federal Deposit Insurance
Corporation insurance, or guarantees for the purpose of--
(A) making a loan to, or purchasing any interest or debt
obligation of, a municipality;
(B) purchasing the assets of a municipality;
(C) guaranteeing a loan or debt issuance of a municipality;
or
(D) entering into an assistance arrangement, including a
grant program, with an eligible entity;
[[Page S143]]
(4) the term ``insolvent'' means, with respect to an
eligible entity, a financial condition such that the eligible
entity--
(A) has any debt that has been given a credit rating lower
than a ``B'' by a nationally recognized statistical rating
organization or a credit rating agency;
(B) is not paying its debts as they become due, unless such
debts are the subject of a bona fide dispute; or
(C) is unable to pay its debts as they become due; and
(5) the term ``nationally recognized statistical rating
organization'' has the meaning given that term in section
3(a)(62) of the Securities Exchange Act of 1934 (15 U.S.C.
78c(a)(62)).
(b) Prohibition of Federal Government Bailouts.--
(1) Prohibition of federal assistance.--Notwithstanding any
other provision of law, no Federal assistance may be provided
to an eligible entity (other than the assistance provided for
in this division for an area that is designated as an
Economic Free Zone).
(2) Prohibition of financial assistance to bankrupt or
insolvent eligible entities.--Except as provided in paragraph
(1), the Federal Government may not provide financial
assistance--
(A) to a municipality that is a debtor under chapter 9 of
title 11, United States Code; or
(B) to State or municipality that is insolvent.
TITLE II--DESIGNATION OF ECONOMIC FREEDOM ZONES (EFZ)
SEC. 201. ELIGIBILITY REQUIREMENTS FOR ECONOMIC FREEDOM ZONE
STATUS.
(a) In General.--In order to be eligible for designation as
an Economic Freedom Zone by the Secretary, an eligible entity
shall meet one or more of the following requirements (in
order of priority) and the requirements of section 202:
(1) Eligible chapter 9 debtor.--An eligible entity that
satisfies the requirements under section 109(c) of title 11,
United States Code.
(2) Eligible entity at risk of insolvency.--
(A) In general.--An eligible entity that is at risk of
insolvency, as described in subparagraph (B).
(B) Requirements.--An eligible entity is at risk of
insolvency if--
(i) an independent actuarial firm that has been engaged by
the eligible entity and that does not have a conflict of
interest with the eligible entity, including any previous
relationship with the eligible entity, as determined by the
Secretary--
(I) determines that the eligible entity is insolvent (as
defined in section 101(a)(4)); and
(II) submits its analysis regarding the insolvency of the
eligible entity to the Secretary; and
(ii) the Secretary has reviewed and approved the
determination of insolvency by the actuarial firm.
(3) Low economic and high poverty zones.--
(A) In general.--An eligible entity that is designated as a
low economic or high poverty zone under subparagraph (B).
(B) Designation.--The Secretary, after reviewing supporting
data as deemed appropriate, shall designate an eligible
entity as a low economic or high poverty area if--
(i) the State or local government with jurisdiction over
the entity certifies that--
(I) the entity is one of pervasive poverty, unemployment,
and general distress;
(II) the average rate of unemployment within such entity
during the most recent 3-month period for which data is
available is at least 1.5 times the national unemployment
rate for the period involved;
(III) during the most recent 3-month period, at least 30
percent of the area residents have incomes below the national
poverty level; or
(IV) at least 70 percent of the are residents have incomes
below 80 percent of the median income of households within
the jurisdiction of the local government (as determined in
the same manner as under section 119(b)(2) of the Housing and
Community Development Act of 1974); and
(ii) the Secretary determines that such a designation is
appropriate.
(4) Special high poverty requirement for designation.--An
eligible entity shall be designated as a low economic or high
poverty zone if the Secretary determines that--
(A) the State in which the entity is located within one of
the 10 most impoverished States, as determined using United
States Census Bureau data;
(B) the entity is one of pervasive poverty, unemployment,
and general distress;
(C) the average rate of unemployment within such entity
during the most recent 3-month period for which data is
available is at least 1.25 times the national unemployment
rate for the period involved;
(D) during the most recent 3-month period, at least 25
percent of the area residents have income below the national
poverty level; or
(E) at least 65 percent of the residents have incomes below
80 percent of the median income of households within the
jurisdiction of the local government (as determined in the
same manner as under section 119(b)(2) of the Housing and
Community Development Act of 1974).
(b) Refusal to Grant Status.--The Secretary may refuse to
designate an eligible entity as an Economic Freedom Zone if
the Secretary determines that any requirement under this
division, including any requirement under subsection
(a)(2)(B), has not been satisfied.
SEC. 202. AREA AND REGIONAL REQUIREMENTS.
(a) In General.--To be designated as an Economic Freedom
Zone by the Secretary, an eligible entity shall--
(1) meet one or more of the requirements under section 201;
and
(2) be an entity described in subsection (b).
(b) Entity Described.--An entity is described in this
subsection if such entity--
(1) is a metropolitan statistical area (as defined by the
Director of the Office of Management and Budget) that--
(A) is located within the jurisdiction of a local
government; and
(B) has a continuous boundary;
(2) is a non-metropolitan statistical area (as defined by
the Director of the Office of Management and Budget) if
(based on the following order of priority) such area--
(A) is an official county geographical area in any State
that meets any of the eligibility requirements of section
201;
(B) is an official city geographical area in any State that
meets any of the eligibility requirements of section 201; or
(C) is an official zip code geographical area in any State
that meets any of the eligibility requirements of section
201; or
(3) is a zip code area that--
(A) is within a metropolitan statistical area; and
(B) meets other eligibility criteria as determined by the
Secretary after consultation with the United States Census
Bureau, the Bureau of Labor Statistics, and the Office of
Management and Budget.
SEC. 203. APPLICATION AND DURATION OF DESIGNATION.
(a) Application.--The Secretary shall develop procedures to
enable an eligible entity to submit to the Secretary an
application for designation as an Economic Freedom Zone under
this title.
(b) Duration.--The designation by the Secretary of an
eligible entity as a Economic Freedom Zone shall be for a
period of 10 years.
TITLE III--FEDERAL TAX INCENTIVES
SEC. 301. TAX INCENTIVES RELATED TO ECONOMIC FREEDOM ZONES.
(a) In General.--Chapter 1 of the Internal Revenue Code of
1986 is amended by adding at the end the following new
subchapter:
``Subchapter Z--Economic Freedom Zones
``PART I--Tax Incentives
``PART II--Definitions
``PART I--TAX INCENTIVES
``Sec. 1400V-1. Economic Freedom Zone individual flat tax.
``Sec. 1400V-2. Economic Freedom Zone corporate flat tax.
``Sec. 1400V-3. Zero percent capital gains rate.
``Sec. 1400V-4. Reduced payroll taxes.
``Sec. 1400V-5. Increase in expensing under section 179.
``SEC. 1400V-1. ECONOMIC FREEDOM ZONE INDIVIDUAL FLAT TAX.
``(a) In General.--In the case of any individual whose
principal residence (within the meaning of section 121) is
located in an Economic Freedom Zone for the taxable year, in
lieu of the tax imposed by section 1, there shall be imposed
a tax equal to 5 percent of the taxable income of such
taxpayer. For purposes of this title, the tax imposed by the
preceding sentence shall be treated as a tax imposed by
section 1.
``(b) Joint Returns.--In the case of a joint return under
section 6013, subsection (a) shall apply so long as either
spouse has a principal residence (within the meaning of
section 121) in an Economic Freedom Zone for the taxable
year.
``(c) Alternative Minimum Tax Not to Apply.--The tax
imposed by section 55 shall not apply to any taxpayer to whom
subsection (a) applies.
``SEC. 1400V-2. ECONOMIC FREEDOM ZONE CORPORATE FLAT TAX.
``(a) In General.--In the case of any corporation located
in an Economic Freedom Zone for the taxable year, in lieu of
the tax imposed by section 11, there shall be imposed a tax
equal to 5 percent of the taxable income of such corporation.
For purposes of this title, the tax imposed by the preceding
sentence shall be treated as a tax imposed by section 11.
``(b) Limitation.--Subsection (a) shall not apply to any
corporation for any taxable year if the adjusted gross income
of such corporation for such taxable year exceeds
$500,000,000.
``(c) Located.--For purposes of this section, a corporation
shall be considered to be located in an Economic Freedom Zone
if--
``(1) not less than 10 percent of the total gross income of
such corporation is derived from the active conduct of a
trade or business within an Economic Freedom Zone, or
``(2) at least 25 percent of the employees of such
corporation are residents of an Economic Freedom Zone.
``(d) Alternative Minimum Tax Not to Apply.--The tax
imposed by section 55 shall not apply to any taxpayer to whom
subsection (a) applies.
``SEC. 1400V-3. ZERO PERCENT CAPITAL GAINS RATE.
``(a) Exclusion.--Gross income shall not include qualified
capital gain from the sale or exchange of--
``(1) any Economic Freedom Zone asset held for more than 5
years,
``(2) any real property located in an Economic Freedom
Zone.
``(b) Economic Freedom Zone Asset.--For purposes of this
section--
[[Page S144]]
``(1) In general.--The term `Economic Freedom Zone asset'
means--
``(A) any Economic Freedom Zone business stock,
``(B) any Economic Freedom Zone partnership interest, and
``(C) any Economic Freedom Zone business property.
``(2) Economic freedom zone business stock.--
``(A) In general.--The term `Economic Freedom Zone business
stock' means any stock in a domestic corporation if--
``(i) such stock is acquired by the taxpayer, before the
date on which such corporation no longer qualifies as an
Economic Freedom Zone business due to the lapse of 1 or more
Economic Freedom Zones, at its original issue (directly or
through an underwriter) solely in exchange for cash,
``(ii) as of the time such stock was issued, such
corporation was an Economic Freedom Zone business (or, in the
case of a new corporation, such corporation was being
organized for purposes of being an Economic Freedom Zone
business), and
``(iii) during substantially all of the taxpayer's holding
period for such stock, such corporation qualified as an
Economic Freedom Zone business.
``(B) Redemptions.--A rule similar to the rule of section
1202(c)(3) shall apply for purposes of this paragraph.
``(3) Economic freedom zone partnership interest.--The term
`Economic Freedom Zone partnership interest' means any
capital or profits interest in a domestic partnership if--
``(A) such interest is acquired by the taxpayer, before the
date on which such partnership no longer qualifies as an
Economic Freedom Zone business due to the lapse of 1 or more
Economic Freedom Zones, from the partnership solely in
exchange for cash,
``(B) as of the time such interest was acquired, such
partnership was an Economic Freedom Zone business (or, in the
case of a new partnership, such partnership was being
organized for purposes of being an Economic Freedom Zone
business), and
``(C) during substantially all of the taxpayer's holding
period for such interest, such partnership qualified as an
Economic Freedom Zone business.
A rule similar to the rule of paragraph (2)(B) shall apply
for purposes of this paragraph.
``(4) Economic freedom zone business property.--
``(A) In general.--The term `Economic Freedom Zone business
property' means tangible property if--
``(i) such property was acquired by the taxpayer by
purchase (as defined in section 179(d)(2)) after the date on
such taxpayer qualifies as an Economic Freedom Zone business
and before the date on which such taxpayer no longer
qualifies as an Economic Freedom Zone business due to the
lapse of 1 or more Economic Freedom Zones,
``(ii) the original use of such property in the Economic
Freedom Zone commences with the taxpayer, and
``(iii) during substantially all of the taxpayer's holding
period for such property, substantially all of the use of
such property was in an Economic Freedom Zone business of the
taxpayer.
``(B) Special rule for buildings which are substantially
improved.--
``(i) In general.--The requirements of clauses (i) and (ii)
of subparagraph (A) shall be treated as met with respect to--
``(I) property which is substantially improved by the
taxpayer before the date on which such taxpayer no longer
qualifies as an Economic Freedom Zone business due to the
lapse of 1 or more Economic Freedom Zones, and
``(II) any land on which such property is located.
``(ii) Substantial improvement.--For purposes of clause
(i), property shall be treated as substantially improved by
the taxpayer only if, during any 24-month period beginning
after the date on which the taxpayer qualifies as an Economic
Freedom Zone business additions to basis with respect to such
property in the hands of the taxpayer exceed the greater of--
``(I) an amount equal to the adjusted basis of such
property at the beginning of such 24-month period in the
hands of the taxpayer, or
``(II) $5,000.
``(5) Treatment of economic freedom zone termination.--
Except as otherwise provided in this subsection, the
termination of the designation of the Economic Freedom Zone
shall be disregarded for purposes of determining whether any
property is an Economic Freedom Zone asset.
``(6) Treatment of subsequent purchasers, etc.--The term
`Economic Freedom Zone asset' includes any property which
would be an Economic Freedom Zone asset but for paragraph
(2)(A)(i), (3)(A), or (4)(A)(i) or (ii) in the hands of the
taxpayer if such property was an Economic Freedom Zone asset
in the hands of a prior holder.
``(7) 5-year safe harbor.--If any property ceases to be an
Economic Freedom Zone asset by reason of paragraph
(2)(A)(iii), (3)(C), or (4)(A)(iii) after the 5-year period
beginning on the date the taxpayer acquired such property,
such property shall continue to be treated as meeting the
requirements of such paragraph; except that the amount of
gain to which subsection (a) applies on any sale or exchange
of such property shall not exceed the amount which would be
qualified capital gain had such property been sold on the
date of such cessation.
``(c) Economic Freedom Zone Business.--For purposes of this
section, the term `Economic Freedom Zone business' means any
enterprise zone business (as defined in section 1397C),
determined--
``(1) after the application of section 1400(e),
``(2) by substituting `80 percent' for `50 percent' in
subsections (b)(2) and (c)(1) of section 1397C, and
``(3) by treating only areas that are Economic Freedom
Zones as an empowerment zone or enterprise community.
``(d) Other Definitions and Special Rules.--For purposes of
this section--
``(1) Qualified capital gain.--Except as otherwise provided
in this subsection, the term `qualified capital gain' means
any gain recognized on the sale or exchange of--
``(A) a capital asset, or
``(B) property used in the trade or business (as defined in
section 1231(b)).
``(2) Certain gain not qualified.--The term `qualified
capital gain' shall not include any gain attributable to
periods before the date on which the a business qualifies as
an Economic Freedom Zone business or after the date that is 4
years after the date on which such business no longer
qualifies as an Economic Freedom Zone business due to the
lapse of 1 or more Economic Freedom Zones.
``(3) Certain gain not qualified.--The term `qualified
capital gain' shall not include any gain which would be
treated as ordinary income under section 1245 or under
section 1250 if section 1250 applied to all depreciation
rather than the additional depreciation.
``(4) Intangibles not integral part of economic freedom
zone business.--In the case of gain described in subsection
(a)(1), the term `qualified capital gain' shall not include
any gain which is attributable to an intangible asset which
is not an integral part of an Economic Freedom Zone business.
``(5) Related party transactions.--The term `qualified
capital gain' shall not include any gain attributable,
directly or indirectly, in whole or in part, to a transaction
with a related person. For purposes of this paragraph,
persons are related to each other if such persons are
described in section 267(b) or 707(b)(1).
``(e) Sales and Exchanges of Interests in Partnerships and
S Corporations Which Are Economic Freedom Zone Businesses.--
In the case of the sale or exchange of an interest in a
partnership, or of stock in an S corporation, which was an
Economic Freedom Zone business during substantially all of
the period the taxpayer held such interest or stock, the
amount of qualified capital gain shall be determined without
regard to--
``(1) any gain which is attributable to an intangible asset
which is not an integral part of an Economic Freedom Zone
business, and
``(2) any gain attributable to periods before the date on
which the a business qualifies as an Economic Freedom Zone
business or after the date that is 4 years after the date on
which such business no longer qualifies as an Economic
Freedom Zone business due to the lapse of 1 or more Economic
Freedom Zones.
``SEC. 1400V-4. REDUCED PAYROLL TAXES.
``(a) In General.--
``(1) Employees.--The rate of tax under 3101(a) (including
for purposes of determining the applicable percentage under
sections 3201(a) and 3211(a)(1)) shall be 4.2 percent for any
remuneration received during any period in which the
individual's principal residence (within the meaning of
section 121) is located in an Economic Freedom Zone.
``(2) Employers.--
``(A) In general.--The rate of tax under section 3111(a)
(including for purposes of determining the applicable
percentage under sections 3221(a)) shall be 4.2 percent with
respect to remuneration paid for qualified services during
any period in which the employer is located in an Economic
Freedom Zone.
``(B) Qualified services.--For purposes of this section,
the term `qualified services' means services performed--
``(i) in a trade or business of a qualified employer, or
``(ii) in the case of a qualified employer exempt from tax
under section 501(a) of the Internal Revenue Code of 1986, in
furtherance of the activities related to the purpose or
function constituting the basis of the employer's exemption
under section 501 of such Code.
``(C) Location of employer.--For purposes of this
paragraph, the location of an employer shall be determined in
the same manner as under section 1400V--2(c).
``(3) Self-employed individuals.--The rate of tax under
section 1401(a) shall be 8.40 percent any taxable year in
which such individual was located (determined under section
1400V--2(c) as if such individual were a corporation) in an
Economic Freedom Zone.
``(b) Transfers of Funds.---
``(1) Transfers to federal old-age and survivors insurance
trust fund.--There are hereby appropriated to the Federal
Old-Age and Survivors Trust Fund and the Federal Disability
Insurance Trust Fund established under section 201 of the
Social Security Act (42 U.S.C. 401) amounts equal to the
reduction in revenues to the Treasury by reason of the
application of subsection (a). Amounts appropriated by the
preceding sentence shall be transferred from the general fund
at such times and in such manner as to replicate to the
extent possible the transfers which would have occurred to
such Trust Fund had such amendments not been enacted.
[[Page S145]]
``(2) Transfers to social security equivalent benefit
account.--There are hereby appropriated to the Social
Security Equivalent Benefit Account established under section
15A(a) of the Railroad Retirement Act of 1974 (45 U.S.C.
231n-1(a)) amounts equal to the reduction in revenues to the
Treasury by reason of the application of paragraphs (1) and
(2) of subsection (a). Amounts appropriated by the preceding
sentence shall be transferred from the general fund at such
times and in such manner as to replicate to the extent
possible the transfers which would have occurred to such
Account had such amendments not been enacted.
``(3) Coordination with other federal laws.--For purposes
of applying any provision of Federal law other than the
provisions of the Internal Revenue Code of 1986, the rate of
tax in effect under section 3101(a) shall be determined
without regard to the reduction in such rate under this
section.
``SEC. 1400V-5. INCREASE IN EXPENSING UNDER SECTION 179.
``(a) In General.--In the case of an Economic Freedom Zone
business, for purposes of section 179--
``(1) the limitation under section 179(b)(1) shall be
increased by the lesser of--
``(A) 200 percent of the amount in effect under such
section (determined without regard to this section), or
``(B) the cost of section 179 property which is Economic
Freedom Zone business property placed in service during the
taxable year, and
``(2) the amount taken into account under section 179(b)(2)
with respect to any section 179 property which is Economic
Freedom Zone business property shall be 50 percent of the
cost thereof.
``(b) Economic Freedom Zone Business Property.--For
purposes of this section, the term `Economic Freedom Zone
business property' has the meaning given such term under
section 1400V--3(b)(4), except that for purposes of
subparagraph (A)(ii) thereof, if property is sold and leased
back by the taxpayer within 3 months after the date such
property was originally placed in service, such property
shall be treated as originally placed in service not earlier
than the date on which such property is used under the
leaseback
``(c) Recapture.--Rules similar to the rules under section
179(d)(10) shall apply with respect to any qualified zone
property which ceases to be used in an empowerment zone by an
enterprise zone business.
``PART II--DEFINITIONS
``Sec. 1400V-6. Economic Freedom Zone.
``SEC. 1400V-6. ECONOMIC FREEDOM ZONE.
``For purposes of this subchapter, the term `Economic
Freedom Zone' means any area which is an Economic Freedom
Zone under title II of the Economic Freedom Zone Act.''.
(b) Clerical Amendment.--The table of subchapters for
chapter 1 of such Code is amended by inserting after the item
relating to subchapter Y the following new item:
``subchapter z--economic freedom zones''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
TITLE IV--FEDERAL REGULATORY REDUCTIONS
SEC. 401. SUSPENSION OF CERTAIN LAWS AND REGULATIONS.
(a) Environmental Protection Agency.--For each area
designated as an Economic Freedom Zone under this Act, the
Administrator of the Environmental Protection Agency shall
not enforce, with respect to that Economic Freedom Zone, and
the Economic Freedom Zone shall be exempt from compliance
with--
(1) part D of the Clean Air Act (42 U.S.C. 7501 et seq.)
(including any regulations promulgated under that part);
(2) section 402 of the Federal Water Pollution Control Act
(33 U.S.C. 1342);
(3) sections 139, 168, 169, 326, and 327 of title 23,
United States Code;
(4) section 304 of title 49, United States Code; and
(5) sections 1315 through 1320 of Public Law 112-141 (126
Stat. 549).
(b) Department of the Interior.--
(1) Wild and scenic rivers.--For each area designated as an
Economic Freedom Zone under this Act, the Secretary of the
Interior shall not enforce, with respect to that Economic
Freedom Zone, and the Economic Freedom Zone shall be exempt
from compliance with the Wild and Scenic Rivers Act (16
U.S.C. 1271 et seq.).
(2) National heritage areas.--For the period beginning on
the date of enactment of this Act and ending on the date on
which an area is removed from designation as an Economic
Freedom Zone, any National Heritage Area located within that
Economic Freedom Zone shall not be considered to be a
National Heritage Area and any applicable Federal law
(including regulations) relating to that National Heritage
Area shall not apply.
TITLE V--EDUCATIONAL ENHANCEMENTS
SEC. 501. EDUCATIONAL OPPORTUNITY TAX CREDIT.
(a) In General.--Subpart A of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 is amended by
inserting after section 25D the following new section:
``SEC. 25E. CREDIT FOR QUALIFIED ELEMENTARY AND SECONDARY
EDUCATION EXPENSES.
``(a) In General.--In the case of an individual, there
shall be allowed as a credit against the tax imposed by this
chapter for the taxable year an amount equal to the qualified
elementary and secondary education expenses of an eligible
student.
``(b) Limitation.--The amount taken into account under
subsection (a) with respect to any student for any taxable
year shall not exceed $5,000.
``(c) Definitions.--For purposes of this section--
``(1) Qualified elementary and secondary education
expenses.--The term `qualified elementary and secondary
education expenses' has the meaning given such term under
section 530(b)(3).
``(2) Eligible student.--The term `eligible student' means
any student who--
``(A) is enrolled in, or attends, any public, private, or
religious school (as defined in section 530(b)(3)(B)), and
``(B) whose principal residence (within the meaning of
section 123) is located in an Economic Freedom Zone.
``(3) Economic freedom zone.--The term `Economic Freedom
Zone' means any area which is an Economic Freedom Zone under
title II of the Economic Freedom Zone Act.''.
(b) Clerical Amendment.--The table of sections for subpart
A of part IV of subchapter A of chapter 1 of such Code is
amended by inserting after the item relating to section 25D
the following new item:
``Sec. 25E. Credit for qualified elementary and secondary education
expenses.''.
(c) Effective Date.--The amendments made by this section
shall apply to expenditures made in taxable years beginning
after the date of the enactment of this Act.
SEC. 502. SCHOOL CHOICE THROUGH PORTABILITY.
(a) In General.--Subpart 2 of part A of title I of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
6331 et seq.) is amended by adding at the end the following:
``SEC. 1128. SCHOOL CHOICE THROUGH PORTABILITY.
``(a) Authorization.--
``(1) In general.--Notwithstanding sections 1124, 1124A,
and 1125 and any other provision of law, and to the extent
permitted under State law, a State educational agency may
allocate grant funds under this subpart among the local
educational agencies in the State based on the formula
described in paragraph (2).
``(2) Formula.--A State educational agency may allocate
grant funds under this subpart for a fiscal year among the
local educational agencies in the State in proportion to the
number of eligible children enrolled in public schools served
by the local educational agency and enrolled in State-
accredited private schools within the local educational
agency's geographic jurisdiction, for the most recent fiscal
year for which satisfactory data are available, compared to
the number of such children in all such local educational
agencies for that fiscal year.
``(b) Eligible Child.--
``(1) In general.--In this section, the term `eligible
child' means a child--
``(A) from a family with an income below the poverty level,
on the basis of the most recent satisfactory data published
by the Department of Commerce; and
``(B) who resides in an Economic Freedom Zone as designated
under title II of the Economic Freedom Zones Act of 2013.
``(2) Criteria of poverty.--In determining the families
with incomes below the poverty level for the purposes of
paragraph (2), a State educational agency shall use the
criteria of poverty used by the Census Bureau in compiling
the most recent decennial census.
``(3) Identification of eligible children.--On an annual
basis, on a date to be determined by the State educational
agency, each local educational agency that receives grant
funding in accordance with subsection (a) shall inform the
State educational agency of the number of eligible children
enrolled in public schools served by the local educational
agency and enrolled in State-accredited private schools
within the local educational agency's geographic
jurisdiction.
``(c) Distribution to Schools.--Each local educational
agency that receives grant funding under subsection (a) shall
distribute such funds to the public schools served by the
local educational agency and State-accredited private schools
with the local educational agency's geographic jurisdiction--
``(1) based on the number of eligible children enrolled in
such schools; and
``(2) in the manner that would, in the absence of such
Federal funds, supplement the funds made available from the
non-Federal resources for the education of pupils
participating in programs under this part, and not to
supplant such funds.''.
(b) Table of Contents.--The table of contents in section 2
of the Elementary and Secondary Education Act of 1965 is
amended by inserting after the item relating to section 1127
the following:
``Sec. 1128. School choice through portability.''.
SEC. 503. SPECIAL ECONOMIC FREEDOM ZONE VISAS.
(a) Definitions.--In this section:
(1) Abandoned; dilapidated.--The terms ``abandoned'' and
``dilapidated'' shall be defined by the States in accordance
with the provisions of this division.
(2) Full-time employment.--The term ``full-time
employment'' means employment in a position that requires at
least 35 hours of service per week at any time, regardless of
who fills the position.
[[Page S146]]
(b) Purpose.--The purpose of this section is to facilitate
increased investment and enhanced human capital in Economic
Freedom Zones through the issuance of special regional visas.
(c) Authorization.--The Secretary of Homeland Security, in
collaboration with the Secretary of Labor, may issue Special
Economic Freedom Zone Visas, in a number determined by the
Governor of each State, in consultation with local officials
in regions designated by the Secretary of Treasury as
Economic Freedom Zones, to authorize qualified aliens to
enter the United States for the purpose of--
(1) engaging in a new commercial enterprise (including a
limited partnership)--
(A) in which such alien has invested, or is actively in the
process of investing, capital in an amount not less than the
amount specified in subsection (d); and
(B) which will benefit the region designated as an Economic
Freedom Zone by creating full-time employment of not fewer
than 5 United States citizens, aliens lawfully admitted for
permanent residence, or other immigrants lawfully authorized
to be employed in the United States (excluding the alien and
the alien's immediate family);
(2) engaging in the purchase and renovation of dilapidated
or abandoned properties or residences (as determined by State
and local officials) in which such alien has invested, or is
actively in the process of investing, in the ownership of
such properties or residences; or
(3) residing and working in an Economic Freedom Zone.
(d) Effective Period.--A visa issued to an alien under this
section shall expire on the later of--
(1) the date on which the relevant Economic Freedom Zone
loses such designation; or
(2) the date that is 5 years after the date on which such
visa was issued to such alien.
(e) Capital and Educational Requirements.--
(1) New commercial enterprises.--Except as otherwise
provided under this section, the minimum amount of capital
required to comply with subsection (c)(1)(A) shall be
$50,000.
(2) Renovation of dilapidated or abandoned properties.--An
alien is not in compliance with subsection (c)(2) unless the
alien--
(A) purchases a dilapidated or abandoned property in an
Economic Freedom Zone; and
(B) not later than 18 months after such purchase, invests
not less than $25,000 to rebuild, rehabilitate, or repurpose
the property.
(3) Verification.--A visa issued under subsection (c) shall
not remain in effect for more than 2 years unless the
Secretary of Homeland Security has verified that the alien
has complied with the requirements described in subsection
(c).
(4) Education and skill requirements.--An alien is not in
compliance with subsection (c)(3) unless the alien
possesses--
(A) a bachelor's degree (or its equivalent) or an advanced
degree;
(B) a degree or specialty certification that--
(i) is required for the job the alien will be performing;
and
(ii) is specific to an industry or job that is so complex
or unique that it can be performed only by an individual with
the specialty certification;
(C)(i) the knowledge required to perform the duties of the
job the alien will be performing; and
(ii) the nature of the specific duties is so specialized
and complex that such knowledge is usually associated with
attainment of a bachelor's or higher degree; or
(D) a skill or talent that would benefit the Economic
Freedom Zone.
(f) Additional Provisions.--
(1) Geographic limitation.--An alien who has been issued a
visa under this section is not permitted to live or work
outside of an Economic Freedom Zone.
(2) Rescission.--A visa issued under this section shall be
rescinded if the visa holder resides or works outside of an
Economic Freedom Zone or otherwise fails to comply with the
provisions of this section.
(3) Other visas.--An alien who has been issued a visa under
this section may apply for any other visa for which the alien
is eligible in order to pursue employment outside of an
Economic Freedom Zone.
(g) Adjustment of Status.--The Secretary of Homeland
Security may adjust the status of an alien who has been
issued a visa under this section to that of an alien lawfully
admitted for permanent residence, without numerical
limitation, if the alien--
(1) has fully complied with the requirements set forth in
this section for at least 5 years;
(2) submits a completed application to the Secretary; and
(3) is not inadmissible to the United States based on any
of the factors set forth in section 212(a) of the Immigration
and Nationality Act (8 U.S.C. 1182(a)).
SEC. 504. ECONOMIC FREEDOM ZONE EDUCATIONAL SAVINGS ACCOUNTS.
(a) In General.--Part VIII of subchapter F of chapter 1 of
the Internal Revenue Code of 1986 is amended by adding at the
end the following new section:
``SEC. 530A. ECONOMIC FREEDOM ZONE EDUCATIONAL SAVINGS
ACCOUNTS.
``(a) In General.--Except as provided in this section, an
Economic Freedom Zone educational savings account shall be
treated for purposes of this title in the same manner as a
Coverdell education savings account.
``(b) Definitions.--For purposes of this section--
``(1) Economic freedom zone educational savings account.--
The term `Economic Freedom Zone educational savings account'
means a trust created or organized in the United States
exclusively for the purpose of paying the qualified education
expenses (as defined in section 530(b)(2)) of an individual
who is the designated beneficiary of the trust (and
designated as an Economic Freedom Zone educational saving
account at the time created or organized) and who is a
qualified individual at the time such trust is established,
but only if the written governing instrument creating the
trust meets the following requirements:
``(A) No contribution will be accepted--
``(i) unless it is in cash,
``(ii) after the date on which such beneficiary attains age
25, or
``(iii) except in the case of rollover contributions, if
such contribution would result in aggregate contributions for
the taxable year exceeding $10,000.
``(B) No contribution shall be accepted at any time in
which the designated beneficiary is not a qualified
individual.
``(C) The trust meets the requirements of subparagraphs
(B), (C), (D), and (E) of section 530(b)(1).
The age limitations in subparagraphs (A)(ii), subparagraph
(E) of section 530(b)(1), and paragraphs (5) and (6) of
section 530(d), shall not apply to any designated beneficiary
with special needs (as determined under regulations
prescribed by the Secretary).
``(2) Qualified individual.--The term `qualified
individual' means any individual whose principal residence
(within the meaning of section 121) is located in an Economic
Freedom Zone (as defined in section 1400V--6).
``(c) Deduction for Contributions.--
``(1) In general.--There shall be allowed as a deduction
under part VII of subchapter B of this chapter an amount
equal to the aggregate amount of contributions made by the
taxpayer to any Economic Freedom Zone educational savings
account during the taxable year .
``(2) Limitation.--The amount of the deduction allowed
under paragraph (1) for any taxpayer for any taxable year
shall not exceed $40,000.
``(3) No deduction for rollover contributions.--No
deduction shall be allowed under paragraph (1) for any
rollover contribution described in section 530(d)(5).
``(d) Other Rules.--
``(1) No income limit.--In the case of an Economic Freedom
Zone educational savings account, subsection (c) of section
530 shall not apply.
``(2) Change in beneficiaries.--Notwithstanding paragraph
(6) of section 530(b), a change in the beneficiary of an
Economic Freedom Zone education savings account shall be
treated as a distribution unless the new beneficiary is a
qualified individual.''.
(b) Clerical Amendment.--The table of sections for part
VIII of subchapter F of chapter 1 of such Code is amended by
adding at the end the following new item:
``Sec. 530A. Economic Freedom Zone educational savings accounts.''.
TITLE VI--COMMUNITY ASSISTANCE AND REBUILDING
SEC. 601. NONAPPLICATION OF DAVIS-BACON.
The wage rate requirements of subchapter IV of chapter 31
of title 40, United States Code (commonly referred to as the
``Davis-Bacon Act''), shall not apply with respect to any
area designated as an Economic Freedom Zone under this Act.
SEC. 602. ECONOMIC FREEDOM ZONE CHARITABLE TAX CREDIT.
(a) In General.--Section 170 is amended by redesignating
subsection (p) as subsection (q) and by inserting after
subsection (o) the following new subsection:
``(o) Election to Treat Contributions for Economic Freedom
Zone Charities as a Credit.--
``(1) In general.--In the case of an individual, at the
election of the taxpayer, so much of the deduction allowed
under subsection (a) (determined without regard to this
subsection) which is attributable to Economic Freedom Zone
charitable contributions--
``(A) shall be allowed as a credit against the tax imposed
by this chapter for the taxable year, and
``(B) shall not be allowed as a deduction for such taxable
year under subsection (a).
Any amount allowable as a credit under this subsection shall
be treated as a credit allowed under subpart A of part IV of
subchapter A for purposes of this title.
``(2) Amount attributable to economic freedom zone
charitable contributions.--For purposes of paragraph (1)--
``(A) In general.--In any case in which the total
charitable contributions of a taxpayer for a taxable year
exceed the contribution base, the amount of Economic Freedom
Zone charitable contributions taken into account under
paragraph (1) shall be the amount which bears the same ratio
to the total charitable contributions made by the taxpayer
during such taxable year as the amount of the deduction
allowed under subsection (a) (determined without regard to
this subsection and after application of subsection (b))
bears to the total charitable contributions made by the
taxpayer for such taxable year.
[[Page S147]]
``(B) Carryovers.--In the case of any contribution carried
from a preceding taxable year under subsection (d), such
amount shall be treated as attributable to an Economic
Freedom Zone charitable contribution in the amount that bears
the same ratio to the total amount carried from preceding
taxable years under subsection (d) as the amount of Economic
Freedom Zone charitable contributions not allowed as a
deduction under subsection (a) (other than by reason of this
subsection) for the preceding 5 taxable year bears to total
amount carried from preceding taxable years under subsection
(d).
``(3) Economic freedom zone charitable contribution.--The
term `Economic Freedom Zone charitable contribution' means
any contribution to a corporation, trust, or community chest
fund, or foundation described in subsection (c)(2), but only
if--
``(A) such entity is created or organized exclusively for--
``(i) religious purposes,
``(ii) educational purposes, or
``(iii) any of the following charitable purposes: providing
educational scholarships, providing shelters for homeless
individuals, or setting up or maintaining food banks,
``(B) the primary mission of such entity is serving
individuals in an Economic Freedom Zone,
``(C) the entity maintains accountability to residents of
such Economic Freedom Zone through their representation on
any governing board of the entity or any advisory board to
the entity, and
``(D) the entity is certified by the Secretary for purposes
of this subsection.
Such term shall not include any contribution made to an
entity described in the preceding sentence after the date in
which the designation of the Economic Freedom Zone serviced
by such entity lapses.
``(4) Economic freedom zone.--The term `Economic Freedom
Zone' means any area which is an Economic Freedom Zone under
title II of the Economic Freedom Zone Act.''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
TITLE VII--STATE AND COMMUNITY POLICY RECOMMENDATIONS
SEC. 701. SENSE OF THE SENATE CONCERNING POLICY
RECOMMENDATIONS.
It is the sense of the Senate that State and local
governments should review and adopt the following policy
recommendations:
(1) Pension reform.--State and local governments should--
(A) implement reforms to address any fiscal shortfall in
public pension funding, including utilizing accrual
accounting methods, such as those reforms undertaken by the
private sector pension funds; and
(B) restructure and renegotiate any public pension fund
that is deemed to be insolvent or underfunded, including
adopting defined contribution retirement systems.
(2) Taxes.--State and local governments should reduce
jurisdictional tax rates below the national average in order
to help facilitate capital investment and economic growth,
particularly in combination with the provisions of this
division.
(3) Education.--State and local governments should adopt
school choice options to provide children and parents more
educational choices, particularly in impoverished areas.
(4) Communities.--State and local governments should adopt
right-to-work laws to allow more competitiveness and more
flexibility for businesses to expand.
(5) Regulations.--State and local governments should
streamline the regulatory burden on families and businesses,
including streamlining the opportunities for occupational
licensing.
(6) Abandoned structures.--State and local governments
should consider the following options to reduce or fix areas
with abandoned properties or residences:
(A) In the case of foreclosures, tax notifications should
be sent to both the lien holder (if different than the
homeowner) and the homeowner.
(B) Where State constitutions permit, property tax
abatement or credits should be provided for individuals who
purchase or invest in abandoned or dilapidated properties.
(C) Non-profit or charity demolition entities should be
permitted or encouraged to help remove abandoned properties.
(D) Government or municipality fees and penalties should be
limited, and be proportional to the outstanding tax amount
and the ability to pay.
(E) The sale of tax liens to third parties should be
reviewed, and where available, should prohibit the selling of
tax liens below a certain threshold (for example the
prohibition of the sale of tax liens to third parties under
$1,000).
______
SA 2615. Mr. INHOFE (for himself, Mr. McConnell, Mr. Vitter, Mr.
Blunt, and Mr. Cornyn) submitted an amendment intended to be proposed
by him to the bill S. 1845, to provide for the extension of certain
unemployment benefits, and for other purposes; which was ordered to lie
on the table; as follows:
On page 6, after line 11, add the following:
SEC. 7. ANALYSIS OF EMPLOYMENT EFFECTS UNDER THE CLEAN AIR
ACT.
(a) Findings.--Congress finds that--
(1) the Environmental Protection Agency has systematically
distorted the true impact of the regulations of the Agency on
job creation by using incomplete analyses to assess effects
on employment and failing to take into account the cascading
effects of a regulatory change across interconnected
industries and markets nationwide;
(2) although in many instances, the Environmental
Protection Agency has stated that the impact of certain
regulations will result in net job creation, implementation
of the regulations will actually require billions of dollars
in compliance costs, resulting in reduced business profits
and millions of actual job losses;
(3)(A) the analysis of the Environmental Protection Agency
of the final rule of the Agency entitled ``National Emission
Standards for Hazardous Air Pollutants From Coal- and Oil-
Fired Electric Utility Steam Generating Units and Standards
of Performance for Fossil-Fuel-Fired Electric Utility,
Industrial-Commercial-Institutional, and Small Industrial-
Commercial-Institutional Steam Generating Units'' (77 Fed.
Reg. 9304 (Feb. 16, 2012)) estimated that implementation of
the final rule would result in the creation of 46,000
temporary construction jobs and 8,000 net new permanent jobs;
but
(B) a private study conducted by NERA Economic Consulting,
using a ``whole economy'' model, estimated that
implementation of the final rule described in subparagraph
(A) would result in a negative impact on the income of
workers in an amount equivalent to 180,000 to 215,000 lost
jobs in 2015 and 50,000 to 85,000 lost jobs each year
thereafter;
(4)(A) the analysis of the Environmental Protection Agency
of the final rule of the Agency entitled ``Federal
Implementation Plans: Interstate Transport of Fine
Particulate Matter and Ozone and Correction of SIP
Approvals'' (76 Fed. Reg. 48208 (Aug. 8, 2011)) estimated
that implementation of the final rule would result in the
creation of 700 jobs per year; but
(B) a private study conducted by NERA Economic Consulting
estimated that implementation of the final rule described in
subparagraph (A) would result in the elimination of a total
of 34,000 jobs during the period beginning in calendar year
2013 and ending in calendar year 2037;
(5)(A) the analysis of the Environmental Protection Agency
of the final rules of the Agency entitled ``National Emission
Standards for Hazardous Air Pollutants for Major Sources:
Industrial, Commercial, and Institutional Boilers and Process
Heaters'' (76 Fed. Reg. 15608 (March 21, 2011)) and
``National Emission Standards for Hazardous Air Pollutants
for Area Sources: Industrial, Commercial, and Institutional
Boilers'' (76 Fed. Reg. 15554 (March 21, 2011)) estimated
that implementation of the final rules would result in the
creation of 2,200 jobs per year; but
(B) a private study conducted NERA Economic Consulting
estimated that implementation of the final rules described in
subparagraph (A) would result in the elimination of 28,000
jobs per year during the period beginning in calendar year
2013 and ending in calendar year 2037;
(6) implementation of certain rules of the Environmental
Protection Agency that have not been updated or finalized as
of the date of enactment of this Act, such as an update of
the rules of the Agency relating to greenhouse gases and
national ambient air quality standards, will result in
significant and negative employment impacts, but the Agency
has not yet fully studied or disclosed those impacts;
(7) in developing or updating any regulations after the
date of enactment of this Act, the Environmental Protection
Agency must be required to fully study the adverse impact
those regulations will have on jobs and employment levels in
the United States and disclose those impacts to the people of
the United States before issuing a final rule; and
(8) although since 1977, section 321(a) of the Clean Air
Act (42 U.S.C. 7621(a)) has required the Administrator of the
Environmental Protection Agency to ``conduct continuing
evaluations of potential loss or shifts of employment which
may result from the administration or enforcement of the
provision of [the Clean Air Act] and applicable
implementation plans, including where appropriate,
investigating threatened plant closures or reductions in
employment allegedly resulting from such administration or
enforcement'', the Environmental Protection Agency has failed
to conduct any study that considers the impact of programs
carried out under the Clean Air Act (42 U.S.C. 7401 et seq.)
on jobs and changes in employment.
(b) Prohibition.--The Administrator of the Environmental
Protection Agency shall not issue any final rule until the
date on which the Administrator--
(1) completes a full economic analysis pursuant to section
321(a) of the Clean Air Act (42 U.S.C. 7621(a)); and
(2) establishes a process to update that analysis not less
frequently than quarterly.
______
SA 2616. Mr. PORTMAN (for himself and Mr. Toomey) submitted an
amendment intended to be proposed by him to the bill S. 1845, to
provide for the extension of certain unemployment benefits, and for
other purposes; which was ordered to lie on the table; as follows:
At the end, add the following:
[[Page S148]]
SEC. 7. AUTHORITY TO USE ANY DISCRETIONARY APPROPRIATIONS
AVAILABLE TO THE SECRETARY OF LABOR TO CONDUCT
IN-PERSON REEMPLOYMENT AND UNEMPLOYMENT
INSURANCE ELIGIBILITY ASSESSMENTS FOR
UNEMPLOYMENT INSURANCE BENEFICIARIES.
(a) Authority.--Notwithstanding any other provision of law,
the Secretary of Labor may, for fiscal years 2014 through
2023, use any discretionary appropriations available to the
Secretary to conduct in-person reemployment and unemployment
insurance eligibility assessments for unemployment insurance
beneficiaries.
(b) Limitation.--Amounts used in a fiscal year pursuant to
the authority under subsection (a) may not exceed the
following:
(1) $20,000,000 for fiscal year 2014.
(2) $25,000,000 for fiscal year 2015.
(3) $30,000,000 for fiscal year 2016.
(4) $35,000,000 for fiscal year 2017.
(5) $36,000,000 for fiscal year 2018.
(6) $37,000,000 for fiscal year 2019.
(7) $38,000,000 for fiscal year 2020.
(8) $39,000,000 for fiscal year 2021.
(9) $40,000,000 for fiscal year 2022.
(10) $41,000,000 for fiscal year 2023.
SEC. 8. DISQUALIFICATION ON RECEIPT OF DISABILITY INSURANCE
BENEFITS IN A MONTH FOR WHICH UNEMPLOYMENT
COMPENSATION IS RECEIVED.
(a) In General.--Section 223(d)(4) of the Social Security
Act (42 U.S.C. 423(d)(4)) is amended by adding at the end the
following:
``(C)(i) If for any month an individual is entitled to
unemployment compensation, such individual shall be deemed to
have engaged in substantial gainful activity for such month.
``(ii) For purposes of clause (i), the term `unemployment
compensation' means--
``(I) `regular compensation', `extended compensation', and
`additional compensation' (as such terms are defined by
section 205 of the Federal-State Extended Unemployment
Compensation Act (26 U.S.C. 3304 note)); and
``(II) trade adjustment assistance under title II of the
Trade Act of 1974 (19 U.S.C. 2251 et seq.).''.
(b) Trial Work Period.--Section 222(c) of the Social
Security Act (42 U.S.C. 422(c)) is amended by adding at the
end the following:
``(6)(A) For purposes of this subsection, an individual
shall be deemed to have rendered services in a month if the
individual is entitled to unemployment compensation for such
month.
``(B) For purposes of subparagraph (A), the term
`unemployment compensation' means--
``(i) `regular compensation', `extended compensation', and
`additional compensation' (as such terms are defined by
section 205 of the Federal-State Extended Unemployment
Compensation Act (26 U.S.C. 3304 note)); and
``(ii) trade adjustment assistance under title II of the
Trade Act of 1974 (19 U.S.C. 2251 et seq.).''.
(c) Data Matching.--The Commissioner of Social Security
shall implement the amendments made by this section using
appropriate electronic data.
(d) Effective Date.--The amendments made by this section
shall apply with respect to months after December 2014.
______
SA 2617. Mr. COATS submitted an amendment intended to be proposed by
him to the bill S. 1845, to provide for the extension of certain
unemployment benefits, and for other purposes; which was ordered to lie
on the table; as follows:
At the appropriate place, insert the following:
SEC. ___. REQUIREMENT THAT INDIVIDUALS RECEIVING EMERGENCY
UNEMPLOYMENT COMPENSATION BE ACTIVELY ENGAGED
IN A SYSTEMATIC AND SUSTAINED EFFORT TO OBTAIN
EMPLOYMENT.
(a) In General.--Paragraph (1) of section 4001(h) of the
Supplemental Appropriations Act, 2008 (Public Law 110-252; 26
U.S.C. 3304 note) is amended--
(1) in subparagraph (B), by striking ``has engaged in an
active search for employment'' and inserting ``has actively
engaged in a systematic and sustained effort to obtain
employment''; and
(2) by amending subparagraph (D) to read as follows:
``(D) when requested by the State agency, has demonstrated
active engagement in a systematic and sustained effort to
obtain employment, as determined based on evidence (whether
in electronic format or otherwise) satisfactory to the State
agency.''.
(b) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
______
SA 2618. Mrs. SHAHEEN (for herself, Mr. Schatz, Ms. Hirono, Mr.
Blumenthal, Mr. Warner, Mr. Udall of New Mexico, Mr. Coons, Mr. Begich,
Ms. Landrieu, Ms. Baldwin, Mr. Kaine, Mr. Franken, and Mr. Merkley)
submitted an amendment intended to be proposed by her to the bill S.
1845, to provide for the extension of certain unemployment benefits,
and for other purposes; which was ordered to lie on the table; as
follows:
At the end, add the following:
SEC. 7. REPEAL OF REDUCTIONS MADE BY BIPARTISAN BUDGET ACT OF
2013.
Section 403 of the Bipartisan Budget Act of 2013 is
repealed as of the date of the enactment of such Act.
SEC. 8. TREATMENT OF FOREIGN CORPORATIONS MANAGED AND
CONTROLLED IN THE UNITED STATES AS DOMESTIC
CORPORATIONS.
(a) In General.--Section 7701 of the Internal Revenue Code
of 1986 is amended by redesignating subsection (p) as
subsection (q) and by inserting after subsection (o) the
following new subsection:
``(p) Certain Corporations Managed and Controlled in the
United States Treated as Domestic for Income Tax.--
``(1) In general.--Notwithstanding subsection (a)(4), in
the case of a corporation described in paragraph (2) if--
``(A) the corporation would not otherwise be treated as a
domestic corporation for purposes of this title, but
``(B) the management and control of the corporation occurs,
directly or indirectly, primarily within the United States,
then, solely for purposes of chapter 1 (and any other
provision of this title relating to chapter 1), the
corporation shall be treated as a domestic corporation.
``(2) Corporation described.--
``(A) In general.--A corporation is described in this
paragraph if--
``(i) the stock of such corporation is regularly traded on
an established securities market, or
``(ii) the aggregate gross assets of such corporation (or
any predecessor thereof), including assets under management
for investors, whether held directly or indirectly, at any
time during the taxable year or any preceding taxable year is
$50,000,000 or more.
``(B) General exception.--A corporation shall not be
treated as described in this paragraph if--
``(i) such corporation was treated as a corporation
described in this paragraph in a preceding taxable year,
``(ii) such corporation--
``(I) is not regularly traded on an established securities
market, and
``(II) has, and is reasonably expected to continue to have,
aggregate gross assets (including assets under management for
investors, whether held directly or indirectly) of less than
$50,000,000, and
``(iii) the Secretary grants a waiver to such corporation
under this subparagraph.
``(3) Management and control.--
``(A) In general.--The Secretary shall prescribe
regulations for purposes of determining cases in which the
management and control of a corporation is to be treated as
occurring primarily within the United States.
``(B) Executive officers and senior management.--Such
regulations shall provide that--
``(i) the management and control of a corporation shall be
treated as occurring primarily within the United States if
substantially all of the executive officers and senior
management of the corporation who exercise day-to-day
responsibility for making decisions involving strategic,
financial, and operational policies of the corporation are
located primarily within the United States, and
``(ii) individuals who are not executive officers and
senior management of the corporation (including individuals
who are officers or employees of other corporations in the
same chain of corporations as the corporation) shall be
treated as executive officers and senior management if such
individuals exercise the day-to-day responsibilities of the
corporation described in clause (i).
``(C) Corporations primarily holding investment assets.--
Such regulations shall also provide that the management and
control of a corporation shall be treated as occurring
primarily within the United States if--
``(i) the assets of such corporation (directly or
indirectly) consist primarily of assets being managed on
behalf of investors, and
``(ii) decisions about how to invest the assets are made in
the United States.''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning on or after the date
which is 2 years after the date of the enactment of this Act,
whether or not regulations are issued under section
7701(p)(3) of the Internal Revenue Code of 1986, as added by
this section.
______
SA 2619. Mr. PORTMAN submitted an amendment intended to be proposed
by him to the bill S. 1845, to provide for the extension of certain
unemployment benefits, and for other purposes; which was ordered to lie
on the table; as follows:
At the end, add the following:
SEC. 7. AUTHORITY TO USE ANY DISCRETIONARY APPROPRIATIONS
AVAILABLE TO THE SECRETARY OF LABOR TO CONDUCT
IN-PERSON REEMPLOYMENT AND UNEMPLOYMENT
INSURANCE ELIGIBILITY ASSESSMENTS FOR
UNEMPLOYMENT INSURANCE BENEFICIARIES.
(a) Authority.--Notwithstanding any other provision of law,
the Secretary of Labor may, for fiscal years 2014 through
2023, use any discretionary appropriations available to the
Secretary to conduct in-person reemployment and unemployment
insurance eligibility assessments for unemployment insurance
beneficiaries.
(b) Limitation.--Amounts used in a fiscal year pursuant to
the authority under subsection (a) may not exceed the
following:
(1) $20,000,000 for fiscal year 2014.
[[Page S149]]
(2) $25,000,000 for fiscal year 2015.
(3) $30,000,000 for fiscal year 2016.
(4) $35,000,000 for fiscal year 2017.
(5) $36,000,000 for fiscal year 2018.
(6) $37,000,000 for fiscal year 2019.
(7) $38,000,000 for fiscal year 2020.
(8) $39,000,000 for fiscal year 2021.
(9) $40,000,000 for fiscal year 2022.
(10) $41,000,000 for fiscal year 2023.
______
SA 2620. Mr. TOOMEY submitted an amendment intended to be proposed by
him to the bill S. 1845, to provide for the extension of certain
unemployment benefits, and for other purposes; which was ordered to lie
on the table; as follows:
Strike sections 2 through 6 and insert the following:
SEC. 2. EXTENSION AND MODIFICATION OF THE EMERGENCY
UNEMPLOYMENT COMPENSATION PROGRAM.
(a) Extension.--Section 4007 of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304
note) is amended--
(1) in subsection (a)(2), by striking ``January 1, 2014''
and inserting ``January 1, 2015''; and
(2) by striking subsection (b) and inserting the following:
``(b) Payment of Amounts Remaining in Account.--
``(1) In general.--Subject to paragraph (2), in the case of
an individual who has amounts remaining in an account
established under section 4002 as of the last day of the last
week (as determined in accordance with the applicable State
law) ending on or before January 1, 2015, the following rules
shall apply:
``(A) Taking into account any augmentation under
subparagraph (B), emergency unemployment compensation shall
continue to be payable to such individual under this title
for any week beginning after such last day as long as the
individual meets the eligibility requirements of this title.
``(B) Augmentation under subsection (c), (d), and (e) of
section 4002 may occur after such date as long as the
requirements for such augmentation are otherwise met.
``(2) Limit on Compensation.--No compensation under this
title shall be payable for any week beginning after October
3, 2015.''.
(b) Modifications Relating to Weeks of Emergency
Unemployment Compensation.--
(1) First tier.--Section 4002(b) of the Supplemental
Appropriations Act, 2008 (26 U.S.C. 3304 note; Public Law
110-252) is amended--
(A) by striking paragraph (1) and inserting the following:
``(1) In general.--The amount established in an account
under subsection (a) shall be equal to--
``(A) for an account established after December 28, 2013,
and before March 30, 2014, the lesser of--
``(i) 54 percent of the total amount of regular
compensation (including dependents' allowances) payable to
the individual during the individual's benefit year under
such law; or
``(ii) 14 times the individual's average weekly benefit
amount for the benefit year;
``(B) for an account established after March 29, 2014, and
before June 29, 2014, the lesser of--
``(i) 43 percent of the total amount of regular
compensation (including dependents' allowances) payable to
the individual during the individual's benefit year under
such law; or
``(ii) 11 times the individual's average weekly benefit
amount for the benefit year;
``(C) for an account established after June 28, 2014, and
before September 27, 2014, the lesser of--
``(i) 27 percent of the total amount of regular
compensation (including dependents' allowances) payable to
the individual during the individual's benefit year under
such law; or
``(ii) 7 times the individual's average weekly benefit
amount for the benefit year; or
``(D) for an account established after September 26, 2014,
and before January 1, 2015, the lesser of--
``(i) 16 percent of the total amount of regular
compensation (including dependents' allowances) payable to
the individual during the individual's benefit year under
such law; or
``(ii) 4 times the individual's average weekly benefit
amount for the benefit year.'';
(B) by striking paragraph (3); and
(C) by redesignating paragraph (3) as paragraph (2).
(2) Second tier.--Section 4002(c)(1) of the Supplemental
Appropriations Act, 2008 (26 U.S.C. 3304 note; Public Law
110-252) is amended by striking subparagraphs (A) and (B) and
inserting the following:
``(A) for an account established under subsection (a) after
December 28, 2013, and before March 30, 2014, the lesser of--
``(i) 54 percent of the total amount of regular
compensation (including dependents' allowances) payable to
the individual during the individual's benefit year under
such law; or
``(ii) 14 times the individual's average weekly benefit
amount for the benefit year;
``(B) for an account established under subsection (a) after
March 29, 2014, and before June 29, 2014, the lesser of--
``(i) 43 percent of the total amount of regular
compensation (including dependents' allowances) payable to
the individual during the individual's benefit year under
such law; or
``(ii) 11 times the individual's average weekly benefit
amount for the benefit year;
``(C) for an account established under subsection (a) after
June 28, 2014, and before September 27, 2014, the lesser of--
``(i) 27 percent of the total amount of regular
compensation (including dependents' allowances) payable to
the individual during the individual's benefit year under
such law; or
``(ii) 7 times the individual's average weekly benefit
amount for the benefit year; or
``(D) for an account established under subsection (a) after
September 26, 2014, and before January 1, 2015, the lesser
of--
``(i) 16 percent of the total amount of regular
compensation (including dependents' allowances) payable to
the individual during the individual's benefit year under
such law; or
``(ii) 4 times the individual's average weekly benefit
amount for the benefit year.''.
(3) Third tier.--Section 4002(d) of the Supplemental
Appropriations Act, 2008 (26 U.S.C. 3304 note; Public Law
110-252) is amended--
(A) in paragraph (1), by striking subparagraphs (A) and (B)
and inserting the following:
``(A) for an account established under subsection (a) after
December 28, 2013, and before March 30, 2014, the lesser of--
``(i) 35 percent of the total amount of regular
compensation (including dependents' allowances) payable to
the individual during the individual's benefit year under
such law; or
``(ii) 9 times the individual's average weekly benefit
amount for the benefit year;
``(B) for an account established under subsection (a) after
March 29, 2014, and before June 29, 2014, the lesser of--
``(i) 27 percent of the total amount of regular
compensation (including dependents' allowances) payable to
the individual during the individual's benefit year under
such law; or
``(ii) 7 times the individual's average weekly benefit
amount for the benefit year;
``(C) for an account established under subsection (a) after
June 28, 2014, and before
September 27, 2014, the lesser of--
``(i) 20 percent of the total amount of regular
compensation (including dependents' allowances) payable to
the individual during the individual's benefit year under
such law; or
``(ii) 5 times the individual's average weekly benefit
amount for the benefit year;
``(D) for an account established under subsection (a) after
September 26, 2014, and before January 1, 2015, the lesser
of--
``(i) 12 percent of the total amount of regular
compensation (including dependents' allowances) payable to
the individual during the individual's benefit year under
such law; or
``(ii) 3 times the individual's average weekly benefit
amount for the benefit year.''; and (B) by striking paragraph
(5).
(4) Fourth tier.--Section 4002(e) of the Supplemental
Appropriations Act, 2008 (26 U.S.C. 3304 note; Public Law
110-252) is amended--
(A) in paragraph (1), by striking subparagraphs (A) and (B)
and inserting the following:
``(A) for an account established under subsection (a) after
December 28, 2013, and before March 30, 2014, the lesser of--
``(i) 39 percent of the total amount of regular
compensation (including dependents' allowances) payable to
the individual during the individual's benefit year under
such law; or
``(ii) 10 times the individual's average weekly benefit
amount for the benefit year;
``(B) for an account established under subsection (a) after
March 29, 2014, and before June 29, 2014, the lesser of--
``(i) 27 percent of the total amount of regular
compensation (including dependents' allowances) payable to
the individual during the individual's benefit year under
such law; or
``(ii) 7 times the individual's average weekly benefit
amount for the benefit year;
``(C) for an account established under subsection (a) after
June 28, 2014, and before September 27, 2014, the lesser of--
``(i) 20 percent of the total amount of regular
compensation (including dependents' allowances) payable to
the individual during the individual's benefit year under
such law; or
``(ii) 5 times the individual's average weekly benefit
amount for the benefit year; or
``(D) for an account established after September 26, 2014,
and before January 1, 2015, the lesser of--
``(i) 12 percent of the total amount of regular
compensation (including dependents' allowances) payable to
the individual during the individual's benefit year under
such law; or
``(ii) 3 times the individual's average weekly benefit
amount for the benefit year.''; and
(B) by striking paragraph (5).
(c) Funding.--Section 4004(e)(1) of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304
note) is amended--
(1) in subparagraph (I), by striking ``and'' at the end;
(2) in subparagraph (J), by inserting ``and'' at the end;
and
(3) by inserting after subparagraph (J) the following:
``(K) the amendments made by subsections (a) and (b) of
section 2 of the Emergency Unemployment Compensation
Extension Act;''.
(d) Effective Date.--The amendments made by this section
shall apply to weeks of unemployment beginning on or after
December 29, 2013.
[[Page S150]]
SEC. 3. DISQUALIFICATION ON RECEIPT OF DISABILITY INSURANCE
BENEFITS IN A MONTH FOR WHICH UNEMPLOYMENT
COMPENSATION IS RECEIVED.
(a) In General.--Section 223(d)(4) of the Social Security
Act (42 U.S.C. 423(d)(4)) is amended by adding at the end the
following:
``(C)(i) If for any month an individual is entitled to
unemployment compensation, such individual shall be deemed to
have engaged in substantial gainful activity for such month.
``(ii) For purposes of clause (i), the term `unemployment
compensation' means--
``(I) `regular compensation', `extended compensation', and
`additional compensation' (as such terms are defined by
section 205 of the Federal-State Extended Unemployment
Compensation Act (26 U.S.C. 3304 note)); and
``(II) trade adjustment assistance under title II of the
Trade Act of 1974 (19 U.S.C. 2251 et seq.).''.
(b) Trial Work Period.--Section 222(c) of the Social
Security Act (42 U.S.C. 422(c)) is amended by adding at the
end the following:
``(6)(A) For purposes of this subsection, an individual
shall be deemed to have rendered services in a month if the
individual is entitled to unemployment compensation for such
month.
``(B) For purposes of subparagraph (A), the term
`unemployment compensation' means--
``(i) `regular compensation', `extended compensation', and
`additional compensation' (as such terms are defined by
section 205 of the Federal-State Extended Unemployment
Compensation Act (26 U.S.C. 3304 note)); and
``(ii) trade adjustment assistance under title II of the
Trade Act of 1974 (19 U.S.C. 2251 et seq.).''.
(c) Data Matching.--The Commissioner of Social Security
shall implement the amendments made by this section using
appropriate electronic data.
(d) Effective Date.--The amendments made by this section
shall apply with respect to months after December 2013.
SEC. 4. SOCIAL SECURITY NUMBER REQUIRED TO CLAIM THE
REFUNDABLE PORTION OF THE CHILD TAX CREDIT.
(a) In General.--Subsection (d) of section 24 of the
Internal Revenue Code of 1986 is amended by adding at the end
the following new paragraph:
``(5) Identification requirement with respect to taxpayer--
``(A) In general.--Paragraph (1) shall not apply to any
taxpayer for any taxable year unless the taxpayer includes
the taxpayer's Social Security number on the return of tax
for such taxable year.
``(B) Joint returns.--In the case of a joint return, the
requirement of subparagraph (A) shall be treated as met if
the Social Security number of either spouse is included on
such return.''.
(b) Omission Treated as Mathematical or Clerical Error.--
Subparagraph (I) of section 6213(g)(2) of the Internal
Revenue Code of 1986 is amended to read as follows:
``(I) an omission of a correct Social Security number
required under section 24(d)(5) (relating to refundable
portion of child tax credit), or a correct TIN under section
24(e) (relating to child tax credit), to be included on a
return,''.
(c) Conforming Amendment.--Subsection (e) of section 24 of
the Internal Revenue Code of 1986 is amended by inserting
``With Respect to Qualifying Children'' after
``Identification Requirement'' in the heading thereof,
(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 5. LIMITATION ON PAYMENT OF PORTION OF PREMIUM BY
FEDERAL CROP INSURANCE CORPORATION.
Section 508(e) of the Federal Crop Insurance Act (7 U.S.C.
1508(e)) is amended by adding at the end the following:
``(8) Limitation.--
``(A) In General.--Notwithstanding any other provision of
this title, the total amount of premium paid by the
Corporation on behalf of a person or legal entity, directly
or indirectly, with respect to all policies issued to the
person or legal entity under this title for a crop year shall
be limited to a maximum of $50,000.
``(B) Relationship to other law.--To the maximum extent
practicable, the Corporation shall carry out this paragraph
in accordance with sections 1001 through 1001F of the Food
Security Act of 1985 (7 U.S.C. 1308 et seq.).''.
______
SA 2621. Mr. PORTMAN submitted an amendment intended to be proposed
by him to the bill S. 1845, to provide for the extension of certain
unemployment benefits, and for other purposes; which was ordered to lie
on the table; as follows:
At the end, add the following:
SEC. 7. UNFUNDED MANDATES ACCOUNTABILITY.
(a) Findings.--Congress finds the following:
(1) The public has a right to know the benefits and costs
of regulation. Effective regulatory programs provide
important benefits to the public, including protecting the
environment, worker safety, and human health. Regulations
also impose significant costs on individuals, employers,
State, local, and tribal governments, diverting resources
from other important priorities.
(2) Better regulatory analysis and review should improve
the quality of agency decisions, increasing the benefits and
reducing unwarranted costs of regulation.
(3) Disclosure and scrutiny of key information underlying
agency decisions should make Government more accountable to
the public it serves.
(b) Regulatory Impact Analyses for Certain Rules.--
(1) Regulatory impact analyses for certain rules.--Section
202 of the Unfunded Mandates Reform Act of 1995 (2 U.S.C.
1532) is amended--
(A) by striking the section heading and inserting the
following:
``SEC. 202. REGULATORY IMPACT ANALYSES FOR CERTAIN RULES.'';
(B) by redesignating subsections (b) and (c) as subsections
(d) and (e), respectively;
(C) by striking subsection (a) and inserting the following:
``(a) Definition.--In this section, the term `cost' means
the cost of compliance and any reasonably foreseeable
indirect costs, including revenues lost as a result of an
agency rule subject to this section.
``(b) In General.--Before promulgating any proposed or
final rule that may have an annual effect on the economy of
$100,000,000 or more (adjusted for inflation), or that may
result in the expenditure by State, local, and tribal
governments, in the aggregate, of $100,000,000 or more
(adjusted for inflation) in any 1 year, each agency shall
prepare and publish in the Federal Register an initial and
final regulatory impact analysis. The initial regulatory
impact analysis shall accompany the agency's notice of
proposed rulemaking and shall be open to public comment. The
final regulatory impact analysis shall accompany the final
rule.
``(c) Content.--The initial and final regulatory impact
analysis under subsection (b) shall include--
``(1)(A) an analysis of the anticipated benefits and costs
of the rule, which shall be quantified to the extent
feasible;
``(B) an analysis of the benefits and costs of a reasonable
number of regulatory alternatives within the range of the
agency's discretion under the statute authorizing the rule,
including alternatives that--
``(i) require no action by the Federal Government; and
``(ii) use incentives and market-based means to encourage
the desired behavior, provide information upon which choices
can be made by the public, or employ other flexible
regulatory options that permit the greatest flexibility in
achieving the objectives of the statutory provision
authorizing the rule; and
``(C) an explanation that the rule meets the requirements
of section 205;
``(2) an assessment of the extent to which--
``(A) the costs to State, local and tribal governments may
be paid with Federal financial assistance (or otherwise paid
for by the Federal Government); and
``(B) there are available Federal resources to carry out
the rule;
``(3) estimates of--
``(A) any disproportionate budgetary effects of the rule
upon any particular regions of the Nation or particular
State, local, or tribal governments, urban or rural or other
types of communities, or particular segments of the private
sector; and
``(B) the effect of the rule on job creation or job loss,
which shall be quantified to the extent feasible; and
``(4)(A) a description of the extent of the agency's prior
consultation with elected representatives (under section 204)
of the affected State, local, and tribal governments;
``(B) a summary of the comments and concerns that were
presented by State, local, or tribal governments either
orally or in writing to the agency; and
``(C) a summary of the agency's evaluation of those
comments and concerns.'';
(D) in subsection (d) (as redesignated by subparagraph
(B)), by striking ``subsection (a)'' and inserting
``subsection (b)''; and
(E) in subsection (e) (as redesignated by subparagraph
(B)), by striking ``subsection (a)'' each place that term
appears and inserting ``subsection (b)''.
(2) Technical and conforming amendment.--The table of
sections for the Unfunded Mandates Reform Act of 1995 is
amended by striking the item relating to section 202 and
inserting the following:
``Sec. 202. Regulatory impact analyses for certain rules.''.
(c) Least Burdensome Option or Explanation Required.--
Section 205 of the Unfunded Mandates Reform Act of 1995 (2
U.S.C. 1535) is amended by striking section 205 and inserting
the following:
``SEC. 205. LEAST BURDENSOME OPTION OR EXPLANATION REQUIRED.
``Before promulgating any proposed or final rule for which
a regulatory impact analysis is required under section 202,
the agency shall--
``(1) identify and consider a reasonable number of
regulatory alternatives within the range of the agency's
discretion under the statute authorizing the rule, including
alternatives required under section 202(b)(1)(B); and
``(2) from the alternatives described under paragraph (1),
select the least costly, most cost-effective, or least
burdensome alternative that achieves the objectives of the
statute.''.
(d) Inclusion of Application to Independent Regulatory
Agencies.--
(1) In general.--Section 421(1) of the Congressional Budget
and Impoundment Control
[[Page S151]]
Act of 1974 (2 U.S.C. 658(1)) is amended by striking ``, but
does not include independent regulatory agencies''.
(2) Exemption for monetary policy.--The Unfunded Mandates
Reform Act of 1995 (2 U.S.C. 1501 et seq.) is amended by
inserting after section 5 the following:
``SEC. 6. EXEMPTION FOR MONETARY POLICY.
``Nothing in title II, III, or IV shall apply to rules that
concern monetary policy proposed or implemented by the Board
of Governors of the Federal Reserve System or the Federal
Open Market Committee.''.
(e) Judicial Review.--The Unfunded Mandates Reform Act of
1995 is amended by striking section 401 (2 U.S.C. 1571) and
inserting the following:
``SEC. 401. JUDICIAL REVIEW.
``(a) In General.--For any rule subject to section 202, a
party aggrieved by final agency action is entitled to
judicial review of an agency's analysis under and compliance
with subsections (b)and (c)(1) of section 202 and section
205. The scope of review shall be governed by chapter 7 of
title 5, United States Code.
``(b) Jurisdiction.--Each court having jurisdiction to
review a rule subject to section 202 for compliance with
section 553 of title 5, United States Code, or under any
other provision of law, shall have jurisdiction to review any
claims brought under subsection (a) of this section.
``(c) Relief Available.--In granting relief in an action
under this section, the court shall order the agency to take
remedial action consistent with chapter 7 of title 5, United
States Code, including remand and vacatur of the rule.''.
(f) Effective Date.--This section shall take effect 90 days
after the date of enactment of this Act.
______
SA 2622. Mr. THUNE (for himself, Mr. Chambliss, and Mrs. Fischer)
submitted an amendment intended to be proposed by him to the bill S.
1845, to provide for the extension of certain unemployment benefits,
and for other purposes; which was ordered to lie on the table; as
follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Solutions to Long-Term
Unemployment Act''.
TITLE I--EXEMPTION FROM AFFORDABLE CARE ACT MANDATE FOR LONG-TERM
UNEMPLOYED
SEC. 101. LONG-TERM UNEMPLOYED INDIVIDUALS NOT TAKEN INTO
ACCOUNT FOR EMPLOYER HEALTH CARE COVERAGE
MANDATE.
(a) In General.--Paragraph (4) of section 4980H(c) of the
Internal Revenue Code of 1986 is amended by adding at the end
the following new subparagraph:
``(C) Exception for long-term unemployed individuals.--The
term `full-time employee' shall not include any individual
who is a long-term unemployed individual (as defined in
section 3111(d)(3)) with respect to such employer.''.
(b) Effective Date.--The amendment made by this section
shall apply to months beginning after December 31, 2013.
TITLE II--EMPLOYER PAYROLL TAX HOLIDAY FOR LONG-TERM UNEMPLOYED
SEC. 201. EMPLOYER PAYROLL TAX HOLIDAY FOR LONG-TERM
UNEMPLOYED INDIVIDUALS.
(a) In General.--Subsection (d) of section 3111 of the
Internal Revenue Code of 1986 is amended to read as follows:
``(d) Special Rule for Long-term Unemployed Individuals.--
``(1) In general.--Subsection (a) shall not apply to wages
paid by a qualified employer with respect to employment
during the applicable period of any long-term unemployed
individual for services performed--
``(A) in a trade or business of such employer, or
``(B) in the case of an employer exempt from taxation under
section 501(a), in furtherance of activities related to the
purpose or function constituting the basis of the employer's
exemption under section 501.
``(2) Qualified employer.--For purposes of this
subsection--
``(A) In general.--The term `qualified employer' means any
employer other than the United States, any State, or any
political subdivision thereof, or any instrumentality of the
foregoing.
``(B) Treatment of employees of post-secondary educational
institutions.--Notwithstanding subparagraph (A), the term
`qualified employer' includes any employer which is a public
institution of higher education (as defined in section 101(b)
of the Higher Education Act of 1965).
``(3) Long-term unemployed individual.--For purposes of
this subsection, the term `long-term unemployed individual'
means, with respect to any employer, an individual who--
``(A) begins employment with such employer after the date
of the enactment of the Solutions to Long-Term Unemployment
Act, and
``(B) has been unemployed for 27 weeks or longer, as
determined by the Secretary of Labor, immediately before the
date such employment begins.
``(4) Applicable period.--The term `applicable period'
means the period beginning on the date of the enactment of
the Solutions to Long-Term Unemployment Act, and ending on
the earlier of--
``(A) the date that is 2 years after such date of
enactment, or
``(B) the first day of the first month after the date on
which the Secretary of Labor certifies that the total number
of individuals in the United States who have been unemployed
for 27 weeks or longer is less than 2,000,000.
``(5) Election.--An employer may elect to have this
subsection not apply. Such election shall be made in such
manner as the Secretary may require.''.
(b) Coordination With Work Opportunity Credit.--Section
51(c)(5) of the Internal Revenue Code of 1986 is amended to
read as follows:
``(5) Coordination with payroll tax forgiveness.--The term
`wages' shall not include any amount paid or incurred to a
long-term unemployed individual (as defined in section
3111(d)(3)) during the 1-year period beginning on the hiring
date of such individual by a qualified employer (as defined
in section 3111(d)) unless such qualified employer makes an
election not to have section 3111(d) apply.''.
(c) Transfers to Federal Old-Age and Survivors Insurance
Trust Fund.--There are hereby appropriated to the Federal
Old-Age and Survivors Trust Fund and the Federal Disability
Insurance Trust Fund established under section 201 of the
Social Security Act (42 U.S.C. 401) amounts equal to the
reduction in revenues to the Treasury by reason of the
amendments made by subsection (a). Amounts appropriated by
the preceding sentence shall be transferred from the general
fund at such times and in such manner as to replicate to the
extent possible the transfers which would have occurred to
such Trust Fund had such amendments not been enacted.
(d) Application to Railroad Retirement Taxes.--
(1) In general.--Subsection (c) of section 3221 of the
Internal Revenue Code of 1986 is amended to read as follows:
``(c) Special Rule for Long-term Unemployed Individuals.--
``(1) In general.--In the case of compensation paid by an
employer during the applicable period, with respect to having
a long-term unemployed individual in the employer's employ
for services rendered to such employer, the applicable
percentage under subsection (a) shall be equal to the rate of
tax in effect under section 3111(b) for the calendar year.
``(2) Qualified employer.--For purposes of this subsection,
the term `qualified employer' means any employer other than
the United States, any State, or any political subdivision
thereof, or any instrumentality of the foregoing.
``(3) Long-term unemployed individual.--For purposes of
this subsection, the term `long-term unemployed individual'
means, with respect to any employer, an individual who--
``(A) begins employment with such employer after the date
of the enactment of the Solutions to Long-Term Unemployment
Act, and
``(B) has been unemployed for 27 weeks or longer, as
determined by the Secretary of Labor, immediately before the
date such employment begins.
``(4) Applicable period.--The term `applicable period'
means the period beginning on the date of the enactment of
the Solutions to Long-Term Unemployment Act, and ending on
the earlier of--
``(A) the date that is 2 years after such date of
enactment, or
``(B) the first day of the first month after the date on
which the Secretary of Labor certifies that the total number
of individuals in the United States who have been unemployed
for 27 weeks or longer is less than 2,000,000.
``(5) Election.--An employer may elect to have this
subsection not apply. Such election shall be made in such
manner as the Secretary may require.''.
(2) Transfers to social security equivalent benefit
account.--There are hereby appropriated to the Social
Security Equivalent Benefit Account established under section
15A(a) of the Railroad Retirement Act of 1974 (45 U.S.C.
231n-1(a)) amounts equal to the reduction in revenues to the
Treasury by reason of the amendments made by paragraph (1).
Amounts appropriated by the preceding sentence shall be
transferred from the general fund at such times and in such
manner as to replicate to the extent possible the transfers
which would have occurred to such Account had such amendments
not been enacted.
(e) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this subsection shall apply to wages paid
after the date of the enactment of this Act.
(2) Railroad retirement taxes.--The amendments made by
subsection (d) shall apply to compensation paid after the
date of the enactment of this Act.
TITLE III--EMPLOYMENT RELOCATION LOANS
SEC. 301. EMPLOYMENT RELOCATION LOANS.
(a) Loans Authorized.--From amounts made available to carry
out this section, the Secretary may issue loans, with the
interest rates, terms, and conditions provided in this
section, to long-term unemployed individuals selected from
applications submitted under subsection (b)(1), in order to
enable each selected individual to relocate to--
(1) a residence more than 50 miles away from the
individual's initial residence, to
[[Page S152]]
allow such individual to begin a new job for which the
individual has received and accepted an offer of employment;
or
(2) a residence in a State or metropolitan area that--
(A) is not the State or metropolitan area of the
individual's initial residence; and
(B) has an unemployment rate that is 2 or more percentage
points less than the unemployment rate of the State or
metropolitan area, respectively, of the individual's initial
residence.
(b) Selection Process and Eligibility.--
(1) Application.--A long-term unemployed individual who
desires a loan under this section shall submit to the
Secretary an application at such time, in such manner, and
containing such information as the Secretary may require.
(2) Limited eligibility.--A long-term unemployed individual
may receive only 1 loan under this section.
(c) Loan Terms.--A loan issued under this section to a
long-term unemployed individual shall be--
(1) in an amount of $10,000 or less; and
(2) evidenced by a note or other written agreement that--
(A) provides for repayment of the principal amount of the
loan in installments over a 10-year period beginning on the
date on which the loan is issued, except that no installments
shall be required for the first year of the loan period;
(B) provides for interest to be calculated and accrue on
the loan at the rate determined under subsection (d); and
(C) allows such individual to accelerate, without penalty,
the repayment of the whole or any part of the loan.
(d) Interest Rate.--The interest rate for a loan issued
under this section shall--
(1) be the rate equal to the high yield of the 10-year
Treasury note auctioned at the final auction held prior to
the date on which the loan is issued; and
(2) be a fixed interest rate for the period of the loan.
(e) Loan Forgiveness.--Notwithstanding subsection
(c)(2)(A), the Secretary may forgive the remaining amount of
interest and principal due on a loan made under this section
to a long-term unemployed individual for the purpose
described in subsection (a)(1) in any case where the new job
for which the individual relocates is eliminated within the
first year of the individual's employment through no fault of
the individual.
(f) Definitions.--In this section:
(1) Initial residence.--The term ``initial residence'',
when used with respect to a long-term individual applying for
a loan under this section, means the location where the
individual resides as of the day before the loan is issued.
(2) Long-term unemployed individual.--The term ``long-term
unemployed individual'' means an individual who resides in a
State and who has been unemployed for 27 consecutive weeks or
more, as determined by the Secretary.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Labor.
(4) States.--The term ``State'' means each of the several
States of the United States and the District of Columbia.
(g) Limited Authority.--The Secretary's authority to issue
loans under subsection (a) shall terminate on the earlier
of--
(1) the date that is 2 years after the date of enactment of
this Act; or
(2) the date that is 1 month after the date on which the
Secretary determines that the total number of long-term
unemployed individuals in the United States is less than
2,000,000.
TITLE IV--SUPPORTING KNOWLEDGE AND INVESTING IN LIFELONG SKILLS
SEC. 401. SHORT TITLE.
This title may be cited as the ``Supporting Knowledge and
Investing in Lifelong Skills Act'' or the ``SKILLS Act''.
SEC. 402. REFERENCES.
Except as otherwise expressly provided, wherever in this
title an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the
amendment or repeal shall be considered to be made to a
section or other provision of the Workforce Investment Act of
1998 (29 U.S.C. 2801 et seq.).
SEC. 403. APPLICATION TO FISCAL YEARS.
Except as otherwise provided, this title and the amendments
made by this title shall apply with respect to fiscal year
2015 and succeeding fiscal years.
Subtitle A--Amendment to the Workforce Investment Act of 1998
CHAPTER 1--WORKFORCE INVESTMENT DEFINITIONS
SEC. 406. DEFINITIONS.
Section 101 (29 U.S.C. 2801) is amended--
(1) by striking paragraph (2) and inserting the following:
``(2) Adult education and family literacy education
activities.--The term `adult education and family literacy
education activities' has the meaning given the term in
section 203.'';
(2) by striking paragraphs (13) and (24);
(3) by redesignating paragraphs (1) through (12) as
paragraphs (3) through (14), and paragraphs (14) through (23)
as paragraphs (15) through (24), respectively;
(4) by striking paragraphs (52) and (53);
(5) by inserting after ``In this title:'' the following new
paragraphs:
``(1) Accrued expenditures.--The term `accrued
expenditures' means--
``(A) charges incurred by recipients of funds under this
title for a given period requiring the provision of funds for
goods or other tangible property received;
``(B) charges incurred for 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 amounts for annuities,
insurance claims, and other benefit payments.
``(2) Administrative costs.--The term `administrative
costs' means expenditures incurred by State boards and local
boards, direct recipients (including State grant recipients
under subtitle B and recipients of awards under subtitles C
and D), local grant recipients, local fiscal agents or local
grant subrecipients, and one-stop operators in the
performance of administrative functions and in carrying out
activities under this title that are not related to the
direct provision of workforce investment activities
(including services to participants and employers). Such
costs include both personnel and non-personnel expenditures
and both direct and indirect expenditures.'';
(6) in paragraph (3) (as so redesignated), by striking
``Except in sections 127 and 132, the'' and inserting
``The'';
(7) by amending paragraph (5) (as so redesignated) to read
as follows:
``(5) Area career and technical education school.--The term
`area career and technical education school' has the meaning
given the term in section 3(3) of the Carl D. Perkins Career
and Technical Education Act of 2006 (20 U.S.C. 2302(3)).'';
(8) in paragraph (6) (as so redesignated), by inserting
``(or such other level as the Governor may establish)'' after
``8th grade level'';
(9) in paragraph (10)(C) (as so redesignated), by striking
``not less than 50 percent of the cost of the training'' and
inserting ``a significant portion of the cost of training, as
determined by the local board involved (or, in the case of an
employer in multiple local areas in the State, as determined
by the Governor), taking into account the size of the
employer and such other factors as the local board or
Governor, respectively, determines to be appropriate'';
(10) in paragraph (11) (as so redesignated)--
(A) in subparagraph (A)(ii)(II), by striking ``section
134(c)'' and inserting ``section 121(e)'';
(B) in subparagraph (B)(iii)--
(i) by striking ``134(d)(4)'' and inserting ``134(c)(4)'';
and
(ii) by striking ``intensive services described in section
134(d)(3)'' and inserting ``work ready services described in
section 134(c)(2)'';
(C) in subparagraph (C), by striking ``or'' after the
semicolon;
(D) in subparagraph (D), by striking the period and
inserting ``; or''; and
(E) by adding at the end the following:
``(E)(i) is the spouse of a member of the Armed Forces on
active duty for a period of more than 30 days (as defined in
section 101(d)(2) of title 10, United States Code) who has
experienced a loss of employment as a direct result of
relocation to accommodate a permanent change in duty station
of such member; or
``(ii) is the spouse of a member of the Armed Forces on
active duty (as defined in section 101(d)(1) of title 10,
United States Code) who meets the criteria described in
paragraph (12)(B).'';
(11) in paragraph (12)(A) (as redesignated)--
(A) by striking ``and'' after the semicolon and inserting
``or'';
(B) by striking ``(A)'' and inserting ``(A)(i)''; and
(C) by adding at the end the following:
``(ii) is the 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'';
(12) in paragraph (13) (as so redesignated), by inserting
``or regional'' after ``local'' each place it appears;
(13) in paragraph (14) (as so redesignated)--
(A) in subparagraph (A), by striking ``section 122(e)(3)''
and inserting ``section 122'';
(B) by striking subparagraph (B), and inserting the
following:
``(B) work ready services, means a provider who is
identified or awarded a contract as described in section
117(d)(5)(C); or'';
(C) by striking subparagraph (C); and
(D) by redesignating subparagraph (D) as subparagraph (C);
(14) in paragraph (15) (as so redesignated), by striking
``adult or dislocated worker'' and inserting ``individual'';
(15) in paragraph (20), by striking ``The'' and inserting
``Subject to section 116(a)(1)(E), the'';
(16) in paragraph (25)--
(A) in subparagraph (B), by striking ``higher of--'' and
all that follows through clause (ii) and inserting ``poverty
line for an equivalent period;'';
[[Page S153]]
(B) by redesignating subparagraphs (D) through (F) as
subparagraphs (E) through (G), respectively; and
(C) by inserting after subparagraph (C) the following:
``(D) receives or is eligible to receive a free or reduced
price lunch under the Richard B. Russell National School
Lunch Act (42 U.S.C. 1751 et seq.);'';
(17) in paragraph (32), by striking ``the Republic of the
Marshall Islands, the Federated States of Micronesia,'';
(18) by amending paragraph (33) to read as follows:
``(33) Out-of-school youth.--The term `out-of-school youth'
means--
``(A) an at-risk youth who is a school dropout; or
``(B) an at-risk youth who has received a secondary school
diploma or its recognized equivalent but is basic skills
deficient, unemployed, or underemployed.'';
(19) in paragraph (38), by striking ``134(a)(1)(A)'' and
inserting ``134(a)(1)(B)'';
(20) in paragraph (41), by striking ``, and the term means
such Secretary for purposes of section 503'';
(21) in paragraph (43), by striking ``clause (iii) or (v)
of section 136(b)(3)(A)'' and inserting ``section
136(b)(3)(A)(iii)'';
(22) by amending paragraph (49) to read as follows:
``(49) Veteran.--The term `veteran' has the same meaning
given the term in section 2108(1) of title 5, United States
Code.'';
(23) by amending paragraph (50) to read as follows:
``(50) Career and technical education.--The term `career
and technical education' has the meaning given the term in
section 3 of the Carl D. Perkins Career and Technical
Education Act of 2006 (20 U.S.C. 2302).'';
(24) in paragraph (51), by striking ``, and a youth
activity''; and
(25) by adding at the end the following:
``(52) At-risk youth.--Except as provided in subtitle C,
the term `at-risk youth' means an individual who--
``(A) is not less than age 16 and not more than age 24;
``(B) is a low-income individual; and
``(C) is an individual who is one or more of the following:
``(i) A secondary school dropout.
``(ii) A youth in foster care (including youth aging out of
foster care).
``(iii) A youth offender.
``(iv) A youth who is an individual with a disability.
``(v) A migrant youth.
``(53) Industry or sector partnership.--The term `industry
or sector partnership' means a partnership of--
``(A) a State board or local board; and
``(B) one or more industry or sector organizations, and
other entities, that have the capability to help the State
board or local board determine the immediate and long-term
skilled workforce needs of in-demand industries or sectors
and other occupations important to the State or local
economy, respectively.
``(54) Industry-recognized credential.--The term `industry-
recognized credential' means a credential that is sought or
accepted by companies within the industry sector involved,
across multiple States, as recognized, preferred, or required
for recruitment, screening, or hiring and is awarded for
completion of a program listed or identified under subsection
(d) or (i) of section 122, for the local area involved.
``(55) Pay-for-performance contract strategy.--The term
`pay-for-performance contract strategy' means a strategy in
which a pay-for-performance contract to provide a program of
employment and training activities incorporates provisions
regarding--
``(A) the core indicators of performance described in
subclauses (I) through (IV) and (VI) of section
136(b)(2)(A)(i);
``(B) a fixed amount that will be paid to an eligible
provider of such employment and training activities for each
program participant who, within a defined timetable, achieves
the agreed-to levels of performance based upon the core
indicators of performance described in subparagraph (A), and
may include a bonus payment to such provider, which may be
used to expand the capacity of such provider;
``(C) the ability for an eligible provider to recoup the
costs of providing the activities for a program participant
who has not achieved those levels, but for whom the provider
is able to demonstrate that such participant gained specific
competencies required for education and career advancement
that are, where feasible, tied to industry-recognized
credentials and related standards, or State licensing
requirements; and
``(D) the ability for an eligible provider that does not
meet the requirements under section 122(a)(2) to participate
in such pay-for-performance contract and to not be required
to report on the performance and cost information required
under section 122(d).
``(56) Recognized postsecondary credential.--The term
`recognized postsecondary credential' means a credential
awarded by a provider of training services or postsecondary
educational institution based on completion of all
requirements for a program of study, including coursework or
tests or other performance evaluations. The term means an
industry-recognized credential, a certificate of completion
of a registered apprenticeship program, or an associate or
baccalaureate degree from an institution described in section
122(a)(2)(A)(i).
``(57) Registered apprenticeship program.--The term
`registered apprenticeship program' means a program described
in section 122(a)(2)(B).''.
CHAPTER 2--STATEWIDE AND LOCAL WORKFORCE INVESTMENT SYSTEMS
SEC. 411. PURPOSE.
Section 106 (29 U.S.C. 2811) is amended by adding at the
end the following: ``It is also the purpose of this subtitle
to provide workforce investment activities in a manner that
enhances employer engagement, promotes customer choices in
the selection of training services, and ensures
accountability in the use of taxpayer funds.''.
SEC. 412. STATE WORKFORCE INVESTMENT BOARDS.
Section 111 (29 U.S.C. 2821) is amended--
(1) in subsection (b)--
(A) in paragraph (1)--
(i) by striking subparagraph (B);
(ii) by redesignating subparagraph (C) as subparagraph (B);
and
(iii) in subparagraph (B) (as so redesignated)--
(I) by amending clause (i)(I), by striking ``section
117(b)(2)(A)(i)'' and inserting ``section 117(b)(2)(A)'';
(II) by amending clause (i)(II) to read as follows:
``(II) represent businesses, including large and small
businesses, each of which has immediate and long-term
employment opportunities in an in-demand industry or other
occupation important to the State economy; and'';
(III) by striking clause (iii) and inserting the following:
``(iii) a State agency official responsible for economic
development; and'';
(IV) by striking clauses (iv) through (vi);
(V) by amending clause (vii) to read as follows:
``(vii) such other representatives and State agency
officials as the Governor may designate, including--
``(I) members of the State legislature;
``(II) representatives of individuals and organizations
that have experience with respect to youth activities;
``(III) representatives of individuals and organizations
that have experience and expertise in the delivery of
workforce investment activities, including chief executive
officers of community colleges and community-based
organizations within the State;
``(IV) representatives of the lead State agency officials
with responsibility for the programs and activities that are
described in section 121(b) and carried out by one-stop
partners; or
``(V) representatives of veterans service organizations.'';
and
(VI) by redesignating clause (vii) (as so amended) as
clause (iv); and
(B) by amending paragraph (3) to read as follows:
``(3) Majority.--A \2/3\ majority of the members of the
board shall be representatives described in paragraph
(1)(B)(i).'';
(2) in subsection (c), by striking ``(b)(1)(C)(i)'' and
inserting ``(b)(1)(B)(i)'';
(3) by amending subsection (d) to read as follows:
``(d) Functions.--The State board shall assist the Governor
of the State as follows:
``(1) State plan.--Consistent with section 112, the State
board shall develop a State plan.
``(2) Statewide workforce development system.--The State
board shall review and develop statewide policies and
programs in the State in a manner that supports a
comprehensive statewide workforce development system that
will result in meeting the workforce needs of the State and
its local areas. Such review shall include determining
whether the State should consolidate additional amounts for
additional activities or programs into the Workforce
Investment Fund in accordance with section 501(e).
``(3) Workforce and labor market information system.--The
State board shall develop a statewide workforce and labor
market information system described in section 15(e) of the
Wagner-Peyser Act (29 U.S.C. 49l-2(e)), which may include
using information collected under Federal law other than this
Act by the State economic development entity or a related
entity in developing such system.
``(4) Employer engagement.--The State board shall develop
strategies, across local areas, that meet the needs of
employers and support economic growth in the State by
enhancing communication, coordination, and collaboration
among employers, economic development entities, and service
providers.
``(5) Designation of local areas.--The State board shall
designate local areas as required under section 116.
``(6) One-stop delivery system.--The State board shall
identify and disseminate information on best practices for
effective operation of one-stop centers, including use of
innovative business outreach, partnerships, and service
delivery strategies.
``(7) Program oversight.--The State board shall conduct the
following program oversight:
``(A) Reviewing and approving local plans under section
118.
``(B) Ensuring the appropriate use and management of the
funds provided for State employment and training activities
authorized under section 134.
``(C) Preparing an annual report to the Secretary described
in section 136(d).
``(8) Development of performance measures.--The State board
shall develop and ensure continuous improvement of
comprehensive State performance measures, including State
adjusted levels of performance, as described under section
136(b).'';
[[Page S154]]
(4) by striking subsection (e) and redesignating subsection
(f) as subsection (e);
(5) in subsection (e) (as so redesignated), by inserting
``or participate in any action taken'' after ``vote'';
(6) by inserting after subsection (e) (as so redesignated),
the following:
``(f) Staff.--The State board may employ staff to assist in
carrying out the functions described in subsection (d).'';
and
(7) in subsection (g), by inserting ``electronic means
and'' after ``on a regular basis through''.
SEC. 413. STATE PLAN.
Section 112 (29 U.S.C. 2822)--
(1) in subsection (a)--
(A) by striking ``127 or''; and
(B) by striking ``5-year strategy'' and inserting ``3-year
strategy'';
(2) in subsection (b)--
(A) by amending paragraph (4) to read as follows:
``(4) information describing--
``(A) the economic conditions in the State;
``(B) the immediate and long-term skilled workforce needs
of in-demand industries, small businesses, and other
occupations important to the State economy;
``(C) the knowledge and skills of the workforce in the
State; and
``(D) workforce development activities (including education
and training) in the State;'';
(B) by amending paragraph (7) to read as follows:
``(7) a description of the State criteria for determining
the eligibility of training services providers in accordance
with section 122, including how the State will take into
account the performance of providers and whether the training
services relate to in-demand industries and other occupations
important to the State economy;'';
(C) by amending paragraph (8) to read as follows:
``(8)(A) a description of the procedures that will be taken
by the State to assure coordination of, and avoid duplication
among, the programs and activities identified under section
501(b)(2); and
``(B) a description of and an assurance regarding common
data collection and reporting processes used for the programs
and activities described in subparagraph (A), which are
carried out by one-stop partners, including--
``(i) an assurance that such processes use quarterly wage
records for performance measures described in section
136(b)(2)(A) that are applicable to such programs or
activities; or
``(ii) if such wage records are not being used for the
performance measures, an identification of the barriers to
using such wage records and a description of how the State
will address such barriers within 1 year of the approval of
the plan;'';
(D) in paragraph (9), by striking ``, including comment by
representatives of businesses and representatives of labor
organizations,'';
(E) in paragraph (11), by striking ``under sections 127 and
132'' and inserting ``under section 132'';
(F) by striking paragraph (12);
(G) by redesignating paragraphs (13) through (18) as
paragraphs (12) through (17), respectively;
(H) in paragraph (12) (as so redesignated), by striking
``111(f)'' and inserting ``111(e)'';
(I) in paragraph (13) (as so redesignated), by striking
``134(c)'' and inserting ``121(e)'';
(J) in paragraph (14) (as so redesignated), by striking
``116(a)(5)'' and inserting ``116(a)(3)'';
(K) in paragraph (16) (as so redesignated)--
(i) in subparagraph (A)--
(I) in clause (ii)--
(aa) by striking ``to dislocated workers''; and
(bb) by inserting ``and additional assistance'' after
``rapid response activities'';
(II) in clause (iii), by striking ``134(d)(4)'' and
inserting ``134(c)(4)'';
(III) by striking ``and'' at the end of clause (iii);
(IV) by amending clause (iv) to read as follows:
``(iv) how the State will serve the employment and training
needs of dislocated workers (including displaced homemakers),
low-income individuals (including recipients of public
assistance such as supplemental nutrition assistance program
benefits pursuant to the Food and Nutrition Act of 2008 (7
U.S.C. 2011 et seq.)), long-term unemployed individuals
(including individuals who have exhausted entitlement to
Federal and State unemployment compensation), English
learners, homeless individuals, individuals training for
nontraditional employment, youth (including out-of-school
youth and at-risk youth), older workers, ex-offenders,
migrant and seasonal farmworkers, refugees and entrants,
veterans (including disabled and homeless veterans), and
Native Americans; and''; and
(V) by adding at the end the following new clause:
``(v) how the State will--
``(I) consistent with section 188 and Executive Order No.
13217 (42 U.S.C. 12131 note), serve the employment and
training needs of individuals with disabilities; and
``(II) consistent with sections 504 and 508 of the
Rehabilitation Act of 1973 (29 U.S.C. 794, 794d), include the
provision of outreach, intake, assessments, and service
delivery, the development of performance measures, the
training of staff, and other aspects of accessibility for
individuals with disabilities to programs and services under
this subtitle;''; and
(ii) in subparagraph (B), by striking ``to the extent
practicable'' and inserting ``in accordance with the
requirements of the Jobs for Veterans Act (Public Law 107-
288) and the amendments made by such Act''; and
(L) by striking paragraph (17) (as so redesignated) and
inserting the following:
``(17) a description of the strategies and services that
will be used in the State--
``(A) to more fully engage employers, including small
businesses and employers in in-demand industries and
occupations important to the State economy;
``(B) to meet the needs of employers in the State; and
``(C) to better coordinate workforce development programs
with economic development activities;
``(18) a description of how the State board will convene
(or help to convene) industry or sector partnerships that
lead to collaborative planning, resource alignment, and
training efforts across a targeted cluster of multiple firms
for a range of workers employed or potentially employed by
the industry or sector--
``(A) to encourage industry growth and competitiveness and
to improve worker training, retention, and advancement in the
industry or sector;
``(B) to address the immediate and long-term skilled
workforce needs of in-demand industries, small businesses,
and other occupations important to the State economy; and
``(C) to address critical skill gaps within and across
industries and sectors;
``(19) a description of how the State will utilize
technology, to facilitate access to services in remote areas,
which may be used throughout the State;
``(20) a description of the State strategy and assistance
to be provided by the State for encouraging regional
cooperation within the State and across State borders, as
appropriate;
``(21) a description of the actions that will be taken by
the State to foster communication, coordination, and
partnerships with nonprofit organizations (including public
libraries, community, faith-based, and philanthropic
organizations) that provide employment-related, training, and
complementary services, to enhance the quality and
comprehensiveness of services available to participants under
this title;
``(22) a description of the process and methodology for
determining--
``(A) one-stop partner program contributions for the costs
of infrastructure of one-stop centers under section
121(h)(1); and
``(B) the formula for allocating such infrastructure funds
to local areas under section 121(h)(3);
``(23) a description of the strategies and services that
will be used in the State to assist at-risk youth and out-of-
school youth in acquiring the education and skills,
credentials (including recognized postsecondary credentials,
such as industry-recognized credentials), and employment
experience to succeed in the labor market, including--
``(A) training and internships in in-demand industries or
occupations important to the State and local economy;
``(B) dropout recovery activities that are designed to lead
to the attainment of a regular secondary school diploma or
its recognized equivalent, or other State-recognized
equivalent (including recognized alternative standards for
individuals with disabilities); and
``(C) activities combining remediation of academic skills,
work readiness training, and work experience, and including
linkages to postsecondary education and training and career-
ladder employment; and
``(24) a description of--
``(A) how the State will furnish employment, training,
including training in advanced manufacturing, supportive, and
placement services to veterans, including disabled and
homeless veterans;
``(B) the strategies and services that will be used in the
State to assist in and expedite reintegration of homeless
veterans into the labor force; and
``(C) the veterans population to be served in the State.'';
(3) in subsection (c), by striking ``period, that--'' and
all that follows through paragraph (2) and inserting
``period, that the plan is inconsistent with the provisions
of this title.''; and
(4) in subsection (d), by striking ``5-year'' and inserting
``3-year''.
SEC. 414. LOCAL WORKFORCE INVESTMENT AREAS.
Section 116 (29 U.S.C. 2831) is amended--
(1) in subsection (a)--
(A) by amending paragraph (1) to read as follows:
``(1) In general.--
``(A) Process.--In order to receive an allotment under
section 132, a State, through the State board, shall
establish a process to designate local workforce investment
areas within the State. Such process shall--
``(i) support the statewide workforce development system
developed under section 111(d)(2), enabling the system to
meet the workforce needs of the State and its local areas;
``(ii) include consultation, prior to the designation, with
chief elected officials;
``(iii) include consideration of comments received on the
designation through the public comment process as described
in section 112(b)(9); and
``(iv) require the submission of an application for
approval under subparagraph (B).
[[Page S155]]
``(B) Application.--To obtain designation of a local area
under this paragraph, a local or regional board (or consortia
of local or regional boards) seeking to take responsibility
for the area under this Act shall submit an application to a
State board at such time, in such manner, and containing such
information as the State board may require, including--
``(i) a description of the local area, including the
population that will be served by the local area, and the
education and training needs of its employers and workers;
``(ii) a description of how the local area is consistent or
aligned with--
``(I) service delivery areas (as determined by the State);
``(II) labor market areas; and
``(III) economic development regions;
``(iii) a description of the eligible providers of
education and training, including postsecondary educational
institutions such as community colleges, located in the local
area and available to meet the needs of the local workforce;
``(iv) a description of the distance that individuals will
need to travel to receive services provided in such local
area; and
``(v) any other criteria that the State board may require.
``(C) Priority.--In designating local areas under this
paragraph, a State board shall give priority consideration to
an area proposed by an applicant demonstrating that a
designation as a local area under this paragraph will result
in the reduction of overlapping service delivery areas, local
market areas, or economic development regions.
``(D) Alignment with local plan.--A State may designate an
area proposed by an applicant as a local area under this
paragraph for a period not to exceed 3 years.
``(E) References.--For purposes of this Act, a reference to
a local area--
``(i) used with respect to a geographic area, refers to an
area designated under this paragraph; and
``(ii) used with respect to an entity, refers to the
applicant.'';
(B) by amending paragraph (2) to read as follows:
``(2) Technical assistance.--The Secretary shall, if
requested by the Governor of a State, provide the State with
technical assistance in making the determinations required
under paragraph (1). The Secretary shall not issue
regulations governing determinations to be made under
paragraph (1).'';
(C) by striking paragraph (3);
(D) by striking paragraph (4);
(E) by redesignating paragraph (5) as paragraph (3); and
(F) in paragraph (3) (as so redesignated), by striking
``(2) or (3)'' both places it appears and inserting ``(1)'';
(2) by amending subsection (b) to read as follows:
``(b) Single States.--Consistent with subsection (a), the
State board of a State may designate the State as a single
State local area for the purposes of this title.''; and
(3) in subsection (c)--
(A) in paragraph (1), by adding at the end the following:
``The State may require the local boards for the designated
region to prepare a single regional plan that incorporates
the elements of the local plan under section 118 and that is
submitted and approved in lieu of separate local plans under
such section.''; and
(B) in paragraph (2), by striking ``employment statistics''
and inserting ``workforce and labor market information''.
SEC. 415. LOCAL WORKFORCE INVESTMENT BOARDS.
Section 117 (29 U.S.C. 2832) is amended--
(1) in subsection (b)--
(A) in paragraph (2)--
(i) in subparagraph (A)--
(I) by striking ``include--'' and all that follows through
``representatives'' and inserting ``include
representatives'';
(II) by striking clauses (ii) through (vi);
(III) by redesignating subclauses (I) through (III) as
clauses (i) through (iii), respectively (and by moving the
margins of such clauses 2 ems to the left);
(IV) by striking clause (ii) (as so redesignated) and
inserting the following:
``(ii) represent businesses, including large and small
businesses, each of which has immediate and long-term
employment opportunities in an in-demand industry or other
occupation important to the local economy; and''; and
(V) by striking the semicolon at the end of clause (iii)
(as so redesignated) and inserting ``; and''; and
(ii) by amending subparagraph (B) to read as follows:
``(B) may include such other individuals or representatives
of entities as the chief elected official in the local area
may determine to be appropriate, including--
``(i) the superintendent or other employee of the local
educational agency who has primary responsibility for
secondary education, the presidents or chief executive
officers of postsecondary educational institutions (including
a community college, where such an entity exists), or
administrators of local entities providing adult education
and family literacy education activities;
``(ii) representatives of community-based organizations
(including organizations representing individuals with
disabilities and veterans, for a local area in which such
organizations are present); or
``(iii) representatives of veterans service
organizations.'';
(B) in paragraph (4)--
(i) by striking ``A majority'' and inserting ``A \2/3\
majority''; and
(ii) by striking ``(2)(A)(i)'' and inserting ``(2)(A)'';
and
(C) in paragraph (5), by striking ``(2)(A)(i)'' and
inserting ``(2)(A)'';
(2) in subsection (c)--
(A) in paragraph (1), by striking subparagraph (C); and
(B) in paragraph (3)(A)(ii), by striking ``paragraphs (1)
through (7)'' and inserting ``paragraphs (1) through (8)'';
(3) by amending subsection (d) to read as follows:
``(d) Functions of Local Board.--The functions of the local
board shall include the following:
``(1) Local plan.--Consistent with section 118, each local
board, in partnership with the chief elected official for the
local area involved, shall develop and submit a local plan to
the Governor.
``(2) Workforce research and regional labor market
analysis.--
``(A) In general.--The local board shall--
``(i) conduct, and regularly update, an analysis of--
``(I) the economic conditions in the local area;
``(II) the immediate and long-term skilled workforce needs
of in-demand industries and other occupations important to
the local economy;
``(III) the knowledge and skills of the workforce in the
local area; and
``(IV) workforce development activities (including
education and training) in the local area; and
``(ii) assist the Governor in developing the statewide
workforce and labor market information system described in
section 15(e) of the Wagner-Peyser Act (29 U.S.C. 49l-2(e)).
``(B) Existing analysis.--In carrying out requirements of
subparagraph (A)(i), a local board shall use an existing
analysis, if any, by the local economic development entity or
related entity.
``(3) Employer engagement.--The local board shall meet the
needs of employers and support economic growth in the local
area by enhancing communication, coordination, and
collaboration among employers, economic development entities,
and service providers.
``(4) Budget and administration.--
``(A) Budget.--
``(i) In general.--The local board shall develop a budget
for the activities of the local board in the local area,
consistent with the requirements of this subsection.
``(ii) Training reservation.--In developing a budget under
clause (i), the local board shall reserve a percentage of
funds to carry out the activities specified in section
134(c)(4). The local board shall use the analysis conducted
under paragraph (2)(A)(i) to determine the appropriate
percentage of funds to reserve under this clause.
``(B) Administration.--
``(i) Grant recipient.--The chief elected official in a
local area shall serve as the local grant recipient for, and
shall be liable for any misuse of, the grant funds allocated
to the local area under section 133, unless the chief elected
official reaches an agreement with the Governor for the
Governor to act as the local grant recipient and bear such
liability.
``(ii) Designation.--In order to assist in administration
of the grant funds, the chief elected official or the
Governor, where the Governor serves as the local grant
recipient for a local area, may designate an entity to serve
as a local grant subrecipient for such funds or as a local
fiscal agent. Such designation shall not relieve the chief
elected official or the Governor of the liability for any
misuse of grant funds as described in clause (i).
``(iii) Disbursal.--The local grant recipient or an entity
designated under clause (ii) shall disburse the grant funds
for workforce investment activities at the direction of the
local board, pursuant to the requirements of this title. The
local grant recipient or entity designated under clause (ii)
shall disburse the funds immediately on receiving such
direction from the local board.
``(C) Staff.--The local board may employ staff to assist in
carrying out the functions described in this subsection.
``(D) Grants and donations.--The local board may solicit
and accept grants and donations from sources other than
Federal funds made available under this Act.
``(5) Selection of operators and providers.--
``(A) Selection of one-stop operators.--Consistent with
section 121(d), the local board, with the agreement of the
chief elected official--
``(i) shall designate or certify one-stop operators as
described in section 121(d)(2)(A); and
``(ii) may terminate for cause the eligibility of such
operators.
``(B) Identification of eligible training service
providers.--Consistent with this subtitle, the local board
shall identify eligible providers of training services
described in section 134(c)(4) in the local area, annually
review the outcomes of such eligible providers using the
criteria under section 122(b)(2), and designate such eligible
providers in the local area who have demonstrated the highest
level of success with respect to such criteria as priority
eligible providers for the program year following the review.
``(C) Identification of eligible providers of work ready
services.--If the one-stop operator does not provide the
services described in section 134(c)(2) in the local area,
[[Page S156]]
the local board shall identify eligible providers of such
services in the local area by awarding contracts.
``(6) Program oversight.--The local board, in partnership
with the chief elected official, shall be responsible for--
``(A) ensuring the appropriate use and management of the
funds provided for local employment and training activities
authorized under section 134(b); and
``(B) conducting oversight of the one-stop delivery system,
in the local area, authorized under section 121.
``(7) Negotiation of local performance measures.--The local
board, the chief elected official, and the Governor shall
negotiate and reach agreement on local performance measures
as described in section 136(c).
``(8) Technology improvements.--The local board shall
develop strategies for technology improvements to facilitate
access to services authorized under this subtitle and carried
out in the local area, including access in remote areas.'';
(4) in subsection (e)--
(A) by inserting ``electronic means and'' after ``regular
basis through''; and
(B) by striking ``and the award of grants or contracts to
eligible providers of youth activities,'';
(5) in subsection (f)--
(A) in paragraph (1)(A), by striking ``section 134(d)(4)''
and inserting ``section 134(c)(4)''; and
(B) by striking paragraph (2) and inserting the following:
``(2) Work ready services; designation or certification as
one-stop operators.--A local board may provide work ready
services described in section 134(c)(2) through a one-stop
delivery system described in section 121 or be designated or
certified as a one-stop operator only with the agreement of
the chief elected official and the Governor.'';
(6) in subsection (g)(1), by inserting ``or participate in
any action taken'' after ``vote''; and
(7) by striking subsections (h) and (i).
SEC. 416. LOCAL PLAN.
Section 118 (29 U.S.C. 2833) is amended--
(1) in subsection (a), by striking ``5-year'' and inserting
``3-year'';
(2) by amending subsection (b) to read as follows:
``(b) Contents.--The local plan shall include--
``(1) a description of the analysis of the local area's
economic and workforce conditions conducted under subclauses
(I) through (IV) of section 117(d)(2)(A)(i), and an assurance
that the local board will use such analysis to carry out the
activities under this subtitle;
``(2) a description of the one-stop delivery system in the
local area, including--
``(A) a description of how the local board will ensure--
``(i) the continuous improvement of eligible providers of
services through the system; and
``(ii) that such providers meet the employment needs of
local businesses and participants; and
``(B) a description of how the local board will facilitate
access to services described in section 117(d)(8) and
provided through the one-stop delivery system consistent with
section 117(d)(8);
``(3) a description of the strategies and services that
will be used in the local area--
``(A) to more fully engage employers, including small
businesses and employers in in-demand industries and
occupations important to the local economy;
``(B) to meet the needs of employers in the local area;
``(C) to better coordinate workforce development programs
with economic development activities; and
``(D) to better coordinate workforce development programs
with employment, training, and literacy services carried out
by nonprofit organizations, including public libraries, as
appropriate;
``(4) a description of how the local board will convene (or
help to convene) industry or sector partnerships that lead to
collaborative planning, resource alignment, and training
efforts across multiple firms for a range of workers employed
or potentially employed by a targeted industry or sector--
``(A) to encourage industry growth and competitiveness and
to improve worker training, retention, and advancement in the
targeted industry or sector;
``(B) to address the immediate and long-term skilled
workforce needs of in-demand industries, small businesses,
and other occupations important to the local economy; and
``(C) to address critical skill gaps within and across
industries and sectors;
``(5) a description of how the funds reserved under section
117(d)(4)(A)(ii) will be used to carry out activities
described in section 134(c)(4);
``(6) a description of how the local board will coordinate
workforce investment activities carried out in the local area
with statewide workforce investment activities, as
appropriate;
``(7) a description of how the local area will--
``(A) coordinate activities with the local area's
disability community, and with transition services (as
defined under section 602 of the Individuals with
Disabilities Education Act (20 U.S.C. 1401)) provided under
that Act by local educational agencies serving such local
area, to make available comprehensive, high-quality services
to individuals with disabilities;
``(B) consistent with section 188 and Executive Order No.
13217 (42 U.S.C. 12131 note), serve the employment and
training needs of individuals with disabilities, with a focus
on employment that fosters independence and integration into
the workplace; and
``(C) consistent with sections 504 and 508 of the
Rehabilitation Act of 1973 (29 U.S.C. 794, 794d), include the
provision of outreach, intake, assessments, and service
delivery, the development of performance measures, the
training of staff, and other aspects of accessibility for
individuals with disabilities to programs and services under
this subtitle;
``(8) a description of the local levels of performance
negotiated with the Governor and chief elected official
pursuant to section 136(c), to be--
``(A) used to measure the performance of the local area;
and
``(B) used by the local board for measuring performance of
the local fiscal agent (where appropriate), eligible
providers, and the one-stop delivery system, in the local
area;
``(9) a description of the process used by the local board,
consistent with subsection (c), to provide an opportunity for
public comment prior to submission of the plan;
``(10) a description of how the local area will serve the
employment and training needs of dislocated workers
(including displaced homemakers), low-income individuals
(including recipients of public assistance such as
supplemental nutrition assistance program benefits pursuant
to the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et
seq.)), long-term unemployed individuals (including
individuals who have exhausted entitlement to Federal and
State unemployment compensation), English learners, homeless
individuals, individuals training for nontraditional
employment, youth (including out-of-school youth and at-risk
youth), older workers, ex-offenders, migrant and seasonal
farmworkers, refugees and entrants, veterans (including
disabled veterans and homeless veterans), and Native
Americans;
``(11) an identification of the entity responsible for the
disbursal of grant funds described in section
117(d)(4)(B)(iii), as determined by the chief elected
official or the Governor under such section;
``(12) a description of the strategies and services that
will be used in the local area to assist at-risk youth and
out-of-school youth in acquiring the education and skills,
credentials (including recognized postsecondary credentials,
such as industry-recognized credentials), and employment
experience to succeed in the labor market, including--
``(A) training and internships in in-demand industries or
occupations important to the local economy;
``(B) dropout recovery activities that are designed to lead
to the attainment of a regular secondary school diploma or
its recognized equivalent, or other State-recognized
equivalent (including recognized alternative standards for
individuals with disabilities); and
``(C) activities combining remediation of academic skills,
work readiness training, and work experience, and including
linkages to postsecondary education and training and career-
ladder employment;
``(13) a description of--
``(A) how the local area will furnish employment, training,
including training in advanced manufacturing, supportive, and
placement services to veterans, including disabled and
homeless veterans;
``(B) the strategies and services that will be used in the
local area to assist in and expedite reintegration of
homeless veterans into the labor force; and
``(C) the veteran population to be served in the local
area;
``(14) a description of--
``(A) the duties assigned to the veteran employment
specialist consistent with the requirements of section
134(f);
``(B) the manner in which the veteran employment specialist
is integrated into the one-stop career system described in
section 121;
``(C) the date on which the veteran employment specialist
was assigned; and
``(D) whether the veteran employment specialist has
satisfactorily completed related training by the National
Veterans' Employment and Training Services Institute; and
``(15) such other information as the Governor may
require.''; and
(3) in subsection (c)--
(A) in paragraph (1), by striking ``such means'' and
inserting ``electronic means and such means''; and
(B) in paragraph (2), by striking ``, including
representatives of business and representatives of labor
organizations,''.
SEC. 417. ESTABLISHMENT OF ONE-STOP DELIVERY SYSTEM.
Section 121 (29 U.S.C. 2841) is amended--
(1) in subsection (b)--
(A) by striking subparagraph (A) of paragraph (1) and
inserting the following:
``(A) Roles and responsibilities of one-stop partners.--
Each entity that carries out a program or activities
described in subparagraph (B) shall--
``(i) provide access through a one-stop delivery system to
the program or activities carried out by the entity,
including making the work ready services described in section
134(c)(2) that are applicable to the program or activities of
the entity available at one-stop centers (in addition to any
other appropriate locations);
``(ii) use a portion of the funds available to the program
or activities of the entity to
[[Page S157]]
maintain the one-stop delivery system, including payment of
the costs of infrastructure of one-stop centers in accordance
with subsection (h);
``(iii) enter into a local memorandum of understanding with
the local board, relating to the operation of the one-stop
delivery system, that meets the requirements of subsection
(c); and
``(iv) participate in the operation of the one-stop
delivery system consistent with the terms of the memorandum
of understanding, the requirements of this title, and the
requirements of the Federal laws authorizing the program or
activities carried out by the entity.'';
(B) in paragraph (1)(B)--
(i) by striking clauses (ii), (v), and (vi);
(ii) by redesignating clauses (iii) and (iv) as clauses
(ii) and (iii), respectively;
(iii) by redesignating clauses (vii) through (xii) as
clauses (iv) through (ix), respectively;
(iv) in clause (ii), as so redesignated, by striking
``adult education and literacy activities'' and inserting
``adult education and family literacy education activities''
(v) in clause (viii), as so redesignated, by striking
``and'' at the end;
(vi) in clause (ix), as so redesignated, by striking the
period and inserting ``; and''; and
(vii) by adding at the end the following:
``(x) subject to subparagraph (C), programs authorized
under part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.).'';
(C) by inserting after paragraph (1)(B) the following:
``(C) Determination by the governor.--Each entity carrying
out a program described in subparagraph (B)(x) shall be
considered to be a one-stop partner under this title and
carry out the required partner activities described in
subparagraph (A) unless the Governor of the State in which
the local area is located provides the Secretary and
Secretary of Health and Human Services written notice of a
determination by the Governor that such an entity shall not
be considered to be such a partner and shall not carry out
such required partner activities.''; and
(D) in paragraph (2)--
(i) in subparagraph (A)(i), by striking ``section
134(d)(2)'' and inserting ``section 134(c)(2)''; and
(ii) in subparagraph (B)--
(I) by striking clauses (i), (ii), and (v);
(II) in clause (iv), by striking ``and'' at the end;
(III) by redesignating clauses (iii) and (iv) as clauses
(i) and (ii), respectively; and
(IV) by adding at the end the following:
``(iii) employment and training programs administered by
the Commissioner of the Social Security Administration;
``(iv) employment and training programs carried out by the
Administrator of the Small Business Administration;
``(v) employment, training, and literacy services carried
out by public libraries; and
``(vi) other appropriate Federal, State, or local programs,
including programs in the private sector.'';
(2) in subsection (c)(2), by amending subparagraph (A) to
read as follows:
``(A) provisions describing--
``(i) the services to be provided through the one-stop
delivery system consistent with the requirements of this
section, including the manner in which the services will be
coordinated through such system;
``(ii) how the costs of such services and the operating
costs of such system will be funded, through cash and in-kind
contributions, to provide a stable and equitable funding
stream for ongoing one-stop system operations, including the
funding of the costs of infrastructure of one-stop centers in
accordance with subsection (h);
``(iii) methods of referral of individuals between the one-
stop operator and the one-stop partners for appropriate
services and activities, including referrals for training for
nontraditional employment; and
``(iv) the duration of the memorandum of understanding and
the procedures for amending the memorandum during the term of
the memorandum, and assurances that such memorandum shall be
reviewed not less than once every 3-year period to ensure
appropriate funding and delivery of services under the
memorandum; and'';
(3) in subsection (d)--
(A) in the heading for paragraph (1), by striking
``Designation and certification'' and inserting ``Local
designation and certification'';
(B) in paragraph (2)--
(i) by striking ``section 134(c)'' and inserting
``subsection (e)'';
(ii) by amending subparagraph (A) to read as follows:
``(A) shall be designated or certified as a one-stop
operator through a competitive process; and''; and
(iii) in subparagraph (B), by striking clause (ii) and
redesignating clauses (iii) through (vi) as clauses (ii)
through (v), respectively; and
(C) in paragraph (3), by striking ``vocational'' and
inserting ``career and technical'';
(4) by amending subsection (e) to read as follows:
``(e) Establishment of One-Stop Delivery System.--
``(1) In general.--There shall be established in a State
that receives an allotment under section 132(b) a one-stop
delivery system, which shall--
``(A) provide the work ready services described in section
134(c)(2);
``(B) provide access to training services as described in
paragraph (4) of section 134(c), including serving as the
point of access to career enhancement accounts for training
services to participants in accordance with paragraph (4)(F)
of such section;
``(C) provide access to the activities carried out under
section 134(d), if any;
``(D) provide access to programs and activities carried out
by one-stop partners that are described in subsection (b);
and
``(E) provide access to the data and information described
in subparagraphs (A) and (B) of section 15(a)(1) of the
Wagner-Peyser Act (29 U.S.C. 49l-2(a)(1)).
``(2) One-stop delivery.--At a minimum, the one-stop
delivery system--
``(A) shall make each of the programs, services, and
activities described in paragraph (1) accessible at not less
than one physical center in each local area of the State; and
``(B) may also make programs, services, and activities
described in paragraph (1) available--
``(i) through a network of affiliated sites that can
provide one or more of the programs, services, and activities
to individuals; and
``(ii) through a network of eligible one-stop partners--
``(I) in which each partner provides one or more of the
programs, services, and activities to such individuals and is
accessible at an affiliated site that consists of a physical
location or an electronically- or technologically-linked
access point; and
``(II) that assures individuals that information on the
availability of the work ready services will be available
regardless of where the individuals initially enter the
statewide workforce investment system, including information
made available through an access point described in subclause
(I).
``(3) Specialized centers.--The centers and sites described
in paragraph (2) may have a specialization in addressing
special needs.''; and
(5) by adding at the end the following:
``(g) Certification of One-Stop Centers.--
``(1) In general.--
``(A) In general.--The State board shall establish
objective procedures and criteria for certifying, at least
once every 3 years, one-stop centers for the purpose of
awarding the one-stop infrastructure funding described in
subsection (h).
``(B) Criteria.--The criteria for certification of a one-
stop center under this subsection shall include--
``(i) meeting the expected levels of performance for each
of the corresponding core indicators of performance as
outlined in the State plan under section 112;
``(ii) meeting minimum standards relating to the scope and
degree of service integration achieved by the center,
involving the programs provided by the one-stop partners; and
``(iii) meeting minimum standards relating to how the
center ensures that eligible providers meet the employment
needs of local employers and participants.
``(C) Effect of certification.--One-stop centers certified
under this subsection shall be eligible to receive the
infrastructure funding authorized under subsection (h).
``(2) Local boards.--Consistent with the criteria developed
by the State, the local board may develop, for certification
referred to in paragraph (1)(A), additional criteria or
higher standards on the criteria referred to in paragraph
(1)(B) to respond to local labor market and demographic
conditions and trends.
``(h) One-Stop Infrastructure Funding.--
``(1) Partner contributions.--
``(A) Provision of funds.--Notwithstanding any other
provision of law, as determined under subparagraph (B), a
portion of the Federal funds provided to the State and areas
within the State under the Federal laws authorizing the one-
stop partner programs described in subsection (b)(1)(B) and
participating additional partner programs described in
subsection (b)(2)(B), for a fiscal year shall be provided to
the Governor by such partners to carry out this subsection.
``(B) Determination of governor.--
``(i) In general.--Subject to subparagraph (C), the
Governor, in consultation with the State board, shall
determine the portion of funds to be provided under
subparagraph (A) by each one-stop partner and in making such
determination shall consider the proportionate use of the
one-stop centers in the State by each such partner, the costs
of administration for purposes not related to one-stop
centers for each such partner, and other relevant factors
described in paragraph (3).
``(ii) Special rule.--In those States where the State
constitution places policy-making authority that is
independent of the authority of the Governor in an entity or
official with respect to the funds provided for adult
education and family literacy education activities authorized
under title II and for postsecondary career and technical
education activities authorized under the Carl D. Perkins
Career and Technical Education Act of 2006 (20 U.S.C. 2301 et
seq.), the determination described in clause (i) with respect
to the corresponding 2 programs shall be made by the Governor
with the appropriate entity or official with such independent
policy-making authority.
``(iii) Appeal by one-stop partners.--The Governor shall
establish a procedure for the one-stop partner administering
a program described in subsection (b) and subparagraph (A) to
appeal a determination regarding the
[[Page S158]]
portion of funds to be provided under this paragraph on the
basis that such determination is inconsistent with the
requirements described in the State plan for the program or
with the requirements of this paragraph. Such procedure shall
ensure prompt resolution of the appeal.
``(C) Limitations.--
``(i) Provision from administrative funds.--The funds
provided under this paragraph by a one-stop partner shall be
provided only from funds available for the costs of
administration under the program administered by such
partner, and shall be subject to the limitations with respect
to the portion of funds under such program that may be used
for administration.
``(ii) Federal direct spending programs.--
``(I) In general.--A program that provides Federal direct
spending under section 250(c)(8) of the Balanced Budget and
Emergency Deficit Control Act of 1985 (2 U.S.C. 900(c)(8))
shall not, for purposes of this paragraph, be required to
provide more than the maximum amount determined under
subclause (II).
``(II) Maximum amount.--The maximum amount for the program
is the amount that bears the same relationship to the costs
referred to in paragraph (2) for the State as the use of the
one-stop centers by such program bears to the use of such
centers by all one-stop partner programs in the State.
``(2) Allocation by governor.--From the funds provided
under paragraph (1), the Governor shall allocate funds to
local areas in accordance with the formula established under
paragraph (3) for the purposes of assisting in paying the
costs of infrastructure of one-stop centers certified under
subsection (g).
``(3) Allocation formula.--The State board shall develop a
formula to be used by the Governor to allocate the funds
provided under paragraph (1) to local areas. The formula
shall include such factors as the State board determines are
appropriate, which may include factors such as the number of
centers in a local area that have been certified, the
population served by such centers, and the performance of
such centers.
``(4) Costs of infrastructure.--For purposes of this
subsection, the term `costs of infrastructure' means the
nonpersonnel costs that are necessary for the general
operation of a one-stop center, including the rental costs of
the facilities involved, and the costs of utilities and
maintenance, and equipment (including assistive technology
for individuals with disabilities).
``(i) Other Funds.--
``(1) In general.--In addition to the funds provided under
subsection (h), a portion of funds made available under
Federal law authorizing the one-stop partner programs
described in subsection (b)(1)(B) and participating
additional partner programs described in subsection
(b)(2)(B), or the noncash resources available under such 2
types of programs, shall be used to pay the costs relating to
the operation of the one-stop delivery system that are not
paid for from the funds provided under subsection (h), to the
extent not inconsistent with the Federal law involved. Such
portion shall be used to pay for costs including--
``(A) costs of infrastructure (as defined in subsection
(h)) that are in excess of the funds provided under
subsection (h);
``(B) common costs that are in addition to the costs of
infrastructure (as so defined); and
``(C) the costs of the provision of work ready services
applicable to each program.
``(2) Determination and standards.--The method for
determining the appropriate portion of funds and noncash
resources to be provided by each program under paragraph (1)
shall be determined as part of the memorandum of
understanding under subsection (c). The State board shall
provide standards to facilitate the determination of
appropriate allocation of the funds and noncash resources to
local areas.''.
SEC. 418. IDENTIFICATION OF ELIGIBLE PROVIDERS OF TRAINING
SERVICES.
Section 122 (29 U.S.C. 2842) is amended to read as follows:
``SEC. 122. IDENTIFICATION OF ELIGIBLE PROVIDERS OF TRAINING
SERVICES.
``(a) Eligibility.--
``(1) In general.--The Governor, after consultation with
the State board, shall establish criteria and procedures
regarding the eligibility of providers of training services
described in section 134(c)(4) to receive funds provided
under section 133(b) for the provision of such training
services and be included on the list of eligible providers of
training services described in subsection (d).
``(2) Providers.--Subject to the provisions of this
section, to be eligible to receive the funds and be included
on the list, 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 a recognized
postsecondary credential;
``(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 subsection to be eligible to receive the funds and be
included on the list. A provider described in paragraph
(2)(B) shall be eligible to receive the funds and be included
on the list with respect to programs described in paragraph
(2)(B) for so long as the provider remains certified by the
Secretary of Labor to carry out the programs.
``(b) Criteria.--
``(1) In general.--The criteria established by the Governor
pursuant to subsection (a) shall take into account--
``(A) the performance of providers of training services
with respect to the performance measures described in section
136, measures for 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;
``(B) whether the training programs of such providers
relate to in-demand industries or occupations important to
the local economy;
``(C) the need to ensure access to training services
throughout the State, including in rural areas;
``(D) the ability of the providers to offer programs that
lead to a recognized postsecondary credential, and the
quality of such programs;
``(E) the performance of the providers as reflected in the
information such providers are required to report to State
agencies with respect to other Federal and State programs
(other than the program carried out under this subtitle),
including one-stop partner programs; and
``(F) such other factors as the Governor determines are
appropriate.
``(2) Information.--The criteria established by the
Governor shall require that a provider of training services
submit appropriate, accurate, and timely information to the
State for purposes of carrying out subsection (d), with
respect to participants receiving training services under
this subtitle in the applicable program, including--
``(A) information on recognized postsecondary credentials
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.
``(3) Renewal.--The criteria established by the Governor
shall also provide for a review on the criteria every 3 years
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 on the criteria established by the Governor,
for purposes of determining the eligibility of providers of
training services under this section in the local area
involved.
``(5) Limitation.--In carrying out the requirements of this
subsection, no entity may disclose personally identifiable
information regarding a student, including a Social Security
number, student identification number, or other identifier,
without the prior written consent of the parent or student in
compliance with section 444 of the General Education
Provisions Act (20 U.S.C. 1232g).
``(c) Procedures.--The procedures established under
subsection (a) shall--
``(1) identify--
``(A) the application process for a provider of training
services to become eligible under this section; and
``(B) the respective roles of the State and local areas in
receiving and reviewing applications and in making
determinations of eligibility based on the criteria
established under this section; and
``(2) establish a process, for a provider of training
services to appeal a denial or termination of eligibility
under this section, that includes an opportunity for a
hearing and prescribes appropriate time limits to ensure
prompt resolution of the appeal.
``(d) Information To Assist Participants in Choosing
Providers.--In order to facilitate and assist participants
under chapter 5 in choosing providers of training services,
the Governor shall ensure that an appropriate list of
providers determined eligible under this section in the
State, including information provided under subsection (b)(2)
with respect to such providers, is provided to the local
boards in the State and is 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 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
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 under this section
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 procedures, that a
provider of training services substantially violated any
requirement under this title, the eligibility
[[Page S159]]
of such provider under this section shall be terminated for a
period of time that is not less than 10 years.
``(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. For purposes of subparagraph (A), that period
shall be considered to be the period beginning on the date on
which the inaccurate information described in subparagraph
(A) was supplied, and ending on the date of the termination
described in subparagraph (A).
``(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.--A State may enter into
an agreement with another State, on a reciprocal basis, to
permit eligible providers of training services to accept
career enhancement accounts provided in the other State.
``(g) Recommendations.--In developing the criteria
(including requirements for related information) and
procedures required under this section, the Governor shall
solicit and take into consideration the recommendations of
local boards and providers of training services within the
State.
``(h) Opportunity To Submit Comments.--During the
development of the criteria and procedures, and the list of
eligible providers required under this section, the Governor
shall provide an opportunity for interested members of the
public to submit comments regarding such criteria,
procedures, and list.
``(i) On-the-Job Training or Customized Training
Exception.--
``(1) In general.--Providers of on-the-job training or
customized training shall not be subject to the requirements
of subsections (a) through (d).
``(2) Collection and dissemination of information.--A one-
stop operator in a local area shall collect such performance
information from on-the-job training and customized training
providers as the Governor may require, determine whether the
providers meet such performance criteria as the Governor may
require, and disseminate information identifying providers
that meet the criteria as eligible providers, and the
performance information, through the one-stop delivery
system. Providers determined to meet the criteria shall be
considered to be identified as eligible under this section,
to be providers of the training services involved.''.
SEC. 419. GENERAL AUTHORIZATION.
Chapter 5 of subtitle B of title I is amended--
(1) by striking the heading for chapter 5 and inserting the
following: ``EMPLOYMENT AND TRAINING ACTIVITIES''; and
(2) in section 131 (29 U.S.C. 2861)--
(A) by striking ``paragraphs (1)(B) and (2)(B) of''; and
(B) by striking ``adults, and dislocated workers,'' and
inserting ``individuals''.
SEC. 420. STATE ALLOTMENTS.
Section 132 (29 U.S.C. 2862) is amended--
(1) by amending subsection (a) to read as follows:
``(a) In General.--The Secretary shall--
``(1) reserve \1/2\ of 1 percent of the total amount
appropriated under section 137 for a fiscal year, of which--
``(A) 50 percent shall be used to provide technical
assistance under section 170; and
``(B) 50 percent shall be used for evaluations under
section 172;
``(2) reserve 1 percent of the total amount appropriated
under section 137 for a fiscal year to make grants to, and
enter into contracts or cooperative agreements with Indian
tribes, tribal organizations, Alaska Native entities, Indian-
controlled organizations serving Indians, or Native Hawaiian
organizations to carry out employment and training
activities;
``(3) reserve not more than 25 percent of the total amount
appropriated under section 137 for a fiscal year to carry out
the Jobs Corps program under subtitle C;
``(4) reserve not more than 3.5 percent of the total amount
appropriated under section 137 for a fiscal year to--
``(A) make grants to State boards or local boards to
provide employment and training assistance to workers
affected by major economic dislocations, such as plant
closures, mass layoffs, or closures and realignments of
military installations; and
``(B) provide assistance to Governors of States with an
area that has suffered an emergency or a major disaster (as
such terms are defined in paragraphs (1) and (2),
respectively, of section 102 of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C.
5122)) to provide disaster relief employment in the area; and
``(5) from the remaining amount appropriated under section
137 for a fiscal year (after reserving funds under paragraphs
(1) through (4)), make allotments in accordance with
subsection (b) of this section.''; and
(2) by amending subsection (b) to read as follows:
``(b) Workforce Investment Fund.--
``(1) Reservation for outlying areas.--
``(A) In general.--From the amount made available under
subsection (a)(5) for a fiscal year, the Secretary shall
reserve not more than \1/4\ of 1 percent to provide
assistance to the outlying areas.
``(B) Restriction.--The Republic of Palau shall cease to be
eligible to receive funding under this paragraph upon
entering into an agreement for extension of United States
educational assistance under the Compact of Free Association
(approved by the Compact of Free Association Amendments Act
of 2003 (Public Law 108-188) after the date of enactment of
the SKILLS Act.
``(2) States.--
``(A) In general.--After determining the amount to be
reserved under paragraph (1), the Secretary shall allot the
remainder of the amount referred to in subsection (a)(5) for
a fiscal year to the States pursuant to subparagraph (B) for
employment and training activities and statewide workforce
investment activities.
``(B) Formula.--Subject to subparagraphs (C) and (D), of
the remainder--
``(i) 25 percent shall be allotted on the basis of the
relative number of unemployed individuals in areas of
substantial unemployment in each State, compared to the total
number of unemployed individuals in areas of substantial
unemployment in all States;
``(ii) 25 percent shall be allotted on the basis of the
relative number of individuals in the civilian labor force in
each State, compared to the total number of such individuals
in all States;
``(iii) 25 percent shall be allotted on the basis of the
relative number of individuals in each State who have been
unemployed for 15 weeks or more, compared to the total number
of individuals in all States who have been unemployed for 15
weeks or more; and
``(iv) 25 percent shall be allotted on the basis of the
relative number of disadvantaged youth in each State,
compared to the total number of disadvantaged youth in all
States.
``(C) Minimum and maximum percentages.--
``(i) Minimum percentage.--The Secretary shall ensure that
no State shall receive an allotment under this paragraph
for--
``(I) each of fiscal years 2015 through 2017, that is less
than 100 percent of the allotment percentage of the State for
fiscal year 2013; and
``(II) fiscal year 2018 and each succeeding fiscal year,
that is less than 90 percent of the allotment percentage of
the State for the fiscal year preceding the fiscal year
involved.
``(ii) Maximum percentage.--Subject to clause (i), the
Secretary shall ensure that no State shall receive an
allotment under this paragraph for--
``(I) each of fiscal years 2015 through 2017, that is more
than 130 percent of the allotment percentage of the State for
fiscal year 2013; and
``(II) fiscal year 2018 and each succeeding fiscal year,
that is more than 130 percent of the allotment percentage of
the State for the fiscal year preceding the fiscal year
involved.
``(D) Small state minimum allotment.--Subject to
subparagraph (C), the Secretary shall ensure that no State
shall receive an allotment under this paragraph for a fiscal
year that is less than \1/5\ of 1 percent of the remainder
described in subparagraph (A) for the fiscal year.
``(E) Definitions.--For the purpose of the formula
specified in this paragraph:
``(i) Allotment percentage.--The term `allotment
percentage'--
``(I) used with respect to fiscal year 2013, means the
percentage of the amounts allotted to States under title I of
this Act, title V of the Older Americans Act of 1965 (42
U.S.C. 3056 et seq.), the Women in Apprenticeship and
Nontraditional Occupations Act (29 U.S.C. 2501 et seq.),
sections 4103A and 4104 of title 38, United States Code, and
sections 1 through 14 of the Wagner-Peyser Act (29 U.S.C. 49
et seq.), as such provisions were in effect for fiscal year
2013, that is received under such provisions by the State
involved for fiscal year 2013; and
``(II) used with respect to fiscal year 2017 or a
succeeding fiscal year, means the percentage of the amounts
allotted to States under this paragraph for the fiscal year,
that is received under this paragraph by the State involved
for the fiscal year.
``(ii) Area of substantial unemployment.--The term `area of
substantial unemployment' means any area that is of
sufficient size and scope to sustain a program of workforce
investment activities carried out under this subtitle and
that has an average rate of unemployment of at least 7
percent for the most recent 12 months, as determined by the
Secretary. For purposes of this clause, determinations of
areas of substantial unemployment shall be made once each
fiscal year.
``(iii) Disadvantaged youth.--The term `disadvantaged
youth' means an individual who is not less than age 16 and
not more than age 24 who receives an income, or is a member
of a family that receives 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.
``(iv) Individual.--The term `individual' means an
individual who is age 16 or older.''.
SEC. 421. WITHIN STATE ALLOCATIONS.
Section 133 (29 U.S.C. 2863) is amended--
(1) by amending subsection (a) to read as follows:
``(a) Reservations for Statewide Workforce Investment
Activities.--
``(1) Statewide employment and training activities.--The
Governor of a State shall reserve not more than 15 percent of
the total amount allotted to the State under section
132(b)(2) for a fiscal year to carry out the statewide
activities described in section 134(a).
[[Page S160]]
``(2) Statewide rapid response activities and additional
assistance.--Of the amount reserved under paragraph (1) for a
fiscal year, the Governor of the State shall reserve not more
than 25 percent for statewide rapid response activities and
additional assistance described in section 134(a)(4).
``(3) Statewide grants for individuals with barriers to
employment.--Of the amount reserved under paragraph (1) for a
fiscal year, the Governor of the State shall reserve 15
percent to carry out statewide activities described in
section 134(a)(5).
``(4) State administrative cost limit.--Not more than 5
percent of the funds reserved under paragraph (1) may be used
by the Governor of the State for administrative costs of
carrying out the statewide activities described in section
134(a).'';
(2) by amending subsection (b) to read as follows:
``(b) Within State Allocation.--
``(1) Methods.--The Governor, acting in accordance with the
State plan, and after consulting with chief elected officials
in the local areas in the State, shall--
``(A) allocate the funds that are allotted to the State
under section 132(b)(2) and not reserved under subsection
(a), in accordance with paragraph (2)(A); and
``(B) award the funds that are reserved by the State under
subsection (a)(3) through competitive grants to eligible
entities, in accordance with section 134(a)(1)(C).
``(2) Formula allocations for the workforce investment
fund.--
``(A) Allocation.--In allocating the funds described in
paragraph (1)(A) to local areas, a State shall allocate--
``(i) 25 percent on the basis described in section
132(b)(2)(B)(i);
``(ii) 25 percent on the basis described in section
132(b)(2)(B)(ii);
``(iii) 25 percent on the basis described in section
132(b)(2)(B)(iii); and
``(iv) 25 percent on the basis described in section
132(b)(2)(B)(iv),
except that a reference in a section specified in any of
clauses (i) through (iv) to `each State' shall be considered
to refer to each local area, and to `all States' shall be
considered to refer to all local areas.
``(B) Minimum and maximum percentages.--
``(i) Minimum percentage.--The State shall ensure that no
local area shall receive an allocation under this paragraph
for--
``(I) each of fiscal years 2015 through 2017, that is less
than 100 percent of the allocation percentage of the local
area for fiscal year 2013; and
``(II) fiscal year 2018 and each succeeding fiscal year,
that is less than 90 percent of the allocation percentage of
the local area for the fiscal year preceding the fiscal year
involved.
``(ii) Maximum percentage.--Subject to clause (i), the
State shall ensure that no local area shall receive an
allocation for a fiscal year under this paragraph for--
``(I) each of fiscal years 2015 through 2017, that is more
than 130 percent of the allocation percentage of the local
area for fiscal year 2013; and
``(II) fiscal year 2018 and each succeeding fiscal year,
that is more than 130 percentage of the allocation percentage
of the local area for the fiscal year preceding the fiscal
year involved.
``(C) Definitions.--For the purpose of the formula
specified in this paragraph, the term `allocation
percentage'--
``(i) used with respect to fiscal year 2013, means the
percentage of the amounts allocated to local areas under
title I of this Act, title V of the Older Americans Act of
1965 (42 U.S.C. 3056 et seq.), the Women in Apprenticeship
and Nontraditional Occupations Act (29 U.S.C. 2501 et seq.),
sections 4103A and 4104 of title 38, United States Code, and
sections 1 through 14 of the Wagner-Peyser Act (29 U.S.C. 49
et seq.), as such provisions were in effect for fiscal year
2013, that is received under such provisions by the local
area involved for fiscal year 2013; and
``(ii) used with respect to fiscal year 2017 or a
succeeding fiscal year, means the percentage of the amounts
allocated to local areas under this paragraph for the fiscal
year, that is received under this paragraph by the local area
involved for the fiscal year.'';
(3) in subsection (c)--
(A) by amending paragraph (1) to read as follows:
``(1) In general.--The Governor may, in accordance with
this subsection, reallocate to eligible local areas within
the State amounts that are allocated under subsection (b) for
employment and training activities and that are available for
reallocation.'';
(B) in paragraph (2), by striking ``paragraph (2)(A) or (3)
of subsection (b) for such activities'' and inserting
``subsection (b) for such activities'';
(C) by amending paragraph (3) to read as follows:
``(3) Reallocations.--In making reallocations to eligible
local areas of amounts available pursuant to paragraph (2)
for a program year, the Governor shall allocate to each
eligible local area within the State an amount based on the
relative amount allocated to such local area under subsection
(b)(2) for such activities for such prior program year, as
compared to the total amount allocated to all eligible local
areas in the State under subsection (b)(2) for such
activities for such prior program year.''; and
(D) in paragraph (4), by striking ``paragraph (2)(A) or (3)
of''; and
(4) by adding at the end the following new subsection:
``(d) Local Administrative Cost Limit.--Of the amount
allocated to a local area under this section for a fiscal
year, not more than 10 percent of the amount may be used by
the local board involved for the administrative costs of
carrying out local workforce investment activities in the
local area under this chapter.''.
SEC. 422. USE OF FUNDS FOR EMPLOYMENT AND TRAINING
ACTIVITIES.
Section 134 (29 U.S.C. 2864) is amended--
(1) by amending subsection (a) to read as follows:
``(a) Statewide Employment and Training Activities.--
``(1) In general.--
``(A) Distribution of statewide activities.--Funds reserved
by a Governor for a State as described in section 133(a)(1)
and not reserved under paragraph (2) or (3) of section
133(a)--
``(i) shall be used to carry out the statewide employment
and training activities described in paragraph (2); and
``(ii) may be used to carry out any of the statewide
employment and training activities described in paragraph
(3).
``(B) Statewide rapid response activities and additional
assistance.--Funds reserved by a Governor for a State as
described in section 133(a)(2) shall be used to provide the
statewide rapid response activities and additional assistance
described in paragraph (4).
``(C) Statewide grants for individuals with barriers to
employment.--Funds reserved by a Governor for a State as
described in section 133(a)(3) shall be used to award
statewide grants for individuals with barriers to employment
on a competitive basis, and carry out other activities, as
described in paragraph (5).
``(2) Required statewide employment and training
activities.--A State shall use funds referred to in paragraph
(1)(A) to carry out statewide employment and training
activities, which shall include--
``(A) disseminating the State list of eligible providers of
training services described in section 122(d), information
identifying eligible providers of on-the-job training and
customized training described in section 122(i), and
performance information and program cost information
described in section 122(b)(2);
``(B) supporting the provision of work ready services
described in subsection (c)(2) in the one-stop delivery
system;
``(C) implementing strategies and services that will be
used in the State to assist at-risk youth and out-of-school
youth in acquiring the education and skills, recognized
postsecondary credentials, and employment experience to
succeed in the labor market;
``(D) conducting evaluations under section 136(e) of
activities authorized under this chapter in coordination with
evaluations carried out by the Secretary under section 172;
``(E) providing technical assistance to local areas that
fail to meet local performance measures;
``(F) operating a fiscal and management accountability
system under section 136(f); and
``(G) carrying out monitoring and oversight of activities
carried out under this chapter.
``(3) Allowable statewide employment and training
activities.--A State may use funds referred to in paragraph
(1)(A) to carry out statewide employment and training
activities which may include--
``(A) implementing innovative programs and strategies
designed to meet the needs of all employers in the State,
including small employers, which may include incumbent worker
training programs, sectoral and industry cluster strategies
and partnership initiatives, 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;
``(B) providing incentive grants to local areas--
``(i) for regional cooperation among local boards
(including local boards in a designated region as described
in section 116(c));
``(ii) for local coordination of activities carried out
under this Act; and
``(iii) for exemplary performance by local areas on the
local performance measures;
``(C) developing strategies for effectively integrating
programs and services among one-stop partners;
``(D) carrying out activities to facilitate remote access
to services provided through a one-stop delivery system,
including facilitating access through the use of technology;
``(E) incorporating pay-for-performance contract strategies
as an element in funding activities under this section and
providing technical support to local areas and eligible
providers in order to carry out such a strategy, which may
involve providing assistance with data collection and data
entry requirements;
``(F) carrying out the State option under subsection
(f)(8); and
``(G) carrying out other activities authorized under this
section that the State determines to be necessary to assist
local areas in
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carrying out activities described in subsection (c) or (d)
through the statewide workforce investment system.
``(4) Statewide rapid response activities and additional
assistance.--A State shall use funds reserved as described in
section 133(a)(2)--
``(A) to carry out statewide rapid response activities,
which shall include provision of rapid response activities,
carried out in local areas by the State or by an entity
designated by the State, working in conjunction with the
local boards and the chief elected officials in the local
areas; and
``(B) to provide additional assistance to local areas that
experience disasters, mass layoffs, or plant closings, or
other events that precipitate substantial increases in the
number of unemployed individuals, carried out in local areas
by the State or by an entity designated by the State, working
in conjunction with the local boards and the chief elected
officials in the local areas.
``(5) Statewide grants for individuals with barriers to
employment.--
``(A) In general.--Of the funds reserved as described in
section 133(a)(3), the Governor of a State--
``(i) may reserve up to 5 percent to provide technical
assistance for, and conduct evaluations as described in
section 136(e) of, the programs carried out under this
paragraph; and
``(ii) using the remainder, shall award grants on a
competitive basis to eligible entities (that meet specific
performance outcomes and criteria established by the
Governor) described in subparagraph (B) to carry out
employment and training programs authorized under this
paragraph for individuals with barriers to employment.
``(B) Eligible entity defined.--For purposes of this
paragraph, the term `eligible entity' means an entity that--
``(i) is a--
``(I) local board or a consortium of local boards;
``(II) nonprofit entity, for-profit entity, or a consortium
of nonprofit or for-profit entities; or
``(III) consortium of the entities described in subclauses
(I) and (II);
``(ii) has a demonstrated record of placing individuals
into unsubsidized employment and serving hard-to-serve
individuals; and
``(iii) agrees to be reimbursed primarily on the basis of
meeting specified performance outcomes and criteria
established by the Governor.
``(C) Grant period.--
``(i) In general.--A grant under this paragraph shall be
awarded for a period of 1 year.
``(ii) Grant renewal.--A Governor of a State may renew, for
up to 4 additional 1-year periods, a grant awarded under this
paragraph.
``(D) Eligible participants.--To be eligible to participate
in activities under this paragraph, an individual shall be a
low-income individual age 16 or older.
``(E) Use of funds.--An eligible entity receiving a grant
under this paragraph shall use the grant funds for programs
of activities that are designed to assist eligible
participants in obtaining employment and acquiring the
education and skills necessary to succeed in the labor
market. To be eligible to receive a grant under this
paragraph for an employment and training program, an eligible
entity shall submit an application to a State at such time,
in such manner, and containing such information as the State
may require, including--
``(i) a description of how the strategies and activities of
the program will be aligned with the State plan submitted
under section 112 and the local plan submitted under section
118, with respect to the area of the State that will be the
focus of the program under this paragraph;
``(ii) a description of the educational and skills training
programs and activities the eligible entity will provide to
eligible participants under this paragraph;
``(iii) how the eligible entity will collaborate with State
and local workforce investment systems established under this
title in the provision of such programs and activities;
``(iv) a description of the programs of demonstrated
effectiveness on which the provision of such educational and
skills training programs and activities are based, and a
description of how such programs and activities will improve
education and skills training for eligible participants;
``(v) a description of the populations to be served and the
skill needs of those populations, and the manner in which
eligible participants will be recruited and selected as
participants;
``(vi) a description of the private, public, local, and
State resources that will be leveraged, with the grant funds
provided, for the program under this paragraph, and how the
entity will ensure the sustainability of such program after
grant funds are no longer available;
``(vii) a description of the extent of the involvement of
employers in such program;
``(viii) a description of the levels of performance the
eligible entity expects to achieve with respect to the
indicators of performance for all individuals specified in
section 136(b)(2);
``(ix) a detailed budget and a description of the system of
fiscal controls, and auditing and accountability procedures,
that will be used to ensure fiscal soundness for the program
provided under this paragraph; and
``(x) any other criteria the Governor may require.'';
(2) by amending subsection (b) to read as follows:
``(b) Local Employment and Training Activities.--Funds
allocated to a local area under section 133(b)--
``(1) shall be used to carry out employment and training
activities described in subsection (c); and
``(2) may be used to carry out employment and training
activities described in subsection (d).'';
(3) by striking subsection (c);
(4) by redesignating subsections (d) and (e), as
subsections (c) and (d), respectively;
(5) in subsection (c) (as so redesignated)--
(A) by amending paragraph (1) to read as follows:
``(1) In general.--Funds allocated to a local area under
section 133(b) shall be used--
``(A) to establish a one-stop delivery system as described
in section 121(e);
``(B) to provide the work ready services described in
paragraph (2) through the one-stop delivery system in
accordance with such paragraph; and
``(C) to provide training services described in paragraph
(4) in accordance with such paragraph.'';
(B) in paragraph (2)--
(i) in the heading, by striking ``Core services'' and
inserting ``Work ready services'';
(ii) in the matter preceding subparagraph (A)--
(I) by striking ``(1)(A)'' and inserting ``(1)'';
(II) by striking ``core services'' and inserting ``work
ready services''; and
(III) by striking ``who are adults or dislocated workers'';
(iii) by redesignating subparagraph (K) as subparagraph
(V);
(iv) by redesignating subparagraphs (B) through (J) as
subparagraphs (C) through (K), respectively;
(v) by inserting after subparagraph (A) the following:
``(B) assistance in obtaining eligibility determinations
under the other one-stop partner programs through activities,
where appropriate and consistent with the authorizing statute
of the one-stop partner program involved, such as assisting
in--
``(i) the submission of applications;
``(ii) the provision of information on the results of such
applications; and
``(iii) the provision of intake services and
information;'';
(vi) by amending subparagraph (E), as so redesignated, to
read as follows:
``(E) labor exchange services, including--
``(i) job search and placement assistance, and where
appropriate, career counseling;
``(ii) appropriate recruitment services for employers,
including small employers, in the local area, which may
include services described in this subsection, including
provision of information and referral to specialized business
services not traditionally offered through the one-stop
delivery system; and
``(iii) reemployment services provided to unemployment
claimants, including claimants identified as in need of such
services under the worker profiling system established under
section 303(j) of the Social Security Act (42 U.S.C.
503(j));'';
(vii) in subparagraph (F), as so redesignated, by striking
``employment statistics'' and inserting ``workforce and labor
market'';
(viii) in subparagraph (G), as so redesignated, by striking
``and eligible providers of youth activities described in
section 123,'';
(ix) in subparagraph (H), as so redesignated, by inserting
``under section 136'' after ``local performance measures'';
(x) in subparagraph (J), as so redesignated, by inserting
``and information regarding the administration of the work
test for the unemployment compensation system'' after
``compensation'';
(xi) by amending subparagraph (K), as so redesignated, to
read as follows:
``(K) assistance in establishing eligibility for programs
of financial aid assistance for education and training
programs that are not funded under this Act and are available
in the local area;''; and
(xii) by inserting the following new subparagraphs after
subparagraph (K), as so redesignated:
``(L) the provision of information from official
publications of the Internal Revenue Service regarding
Federal tax credits, available to participants in employment
and training activities, and relating to education, job
training, and employment;
``(M) comprehensive and specialized assessments of the
skill levels and service needs of workers, which may
include--
``(i) diagnostic testing and use of other assessment tools;
and
``(ii) in-depth interviewing and evaluation to identify
employment barriers and appropriate employment goals;
``(N) development of an individual employment plan, to
identify the employment goals, appropriate achievement
objectives, and appropriate combination of services for the
participant;
``(O) group counseling;
``(P) individual counseling and career planning;
``(Q) case management;
``(R) short-term pre-career services, including development
of learning skills, communications skills, interviewing
skills, punctuality, personal maintenance skills, and
professional conduct, to prepare individuals for unsubsidized
employment or training;
``(S) internships and work experience;
[[Page S162]]
``(T) literacy activities relating to basic work readiness,
information and communication technology literacy activities,
and financial literacy activities, if the activities involved
are not available to participants in the local area under
programs administered under the Adult Education and Family
Literacy Act (20 U.S.C. 2901 et seq.);
``(U) out-of-area job search assistance and relocation
assistance; and''; and
(C) by amending paragraph (3) to read as follows:
``(3) Delivery of services.--The work ready services
described in paragraph (2) shall be provided through the one-
stop delivery system and may be provided through contracts
with public, private for-profit, and private nonprofit
service providers, approved by the local board.'';
(D) in paragraph (4)--
(i) by amending subparagraph (A) to read as follows:
``(A) In general.--Funds described in paragraph (1)(C)
shall be used to provide training services to individuals
who--
``(i) after an interview, evaluation, or assessment, and
case management, have been determined by a one-stop operator
or one-stop partner, as appropriate, to--
``(I) be in need of training services to obtain or retain
employment; and
``(II) have the skills and qualifications to successfully
participate in the selected program of training services;
``(ii) select programs of training services that are
directly linked to the employment opportunities in the local
area involved or in another area in which the individual
receiving such services are willing to commute or relocate;
and
``(iii) who meet the requirements of subparagraph (B).'';
and
(ii) in subparagraph (B)(i), by striking ``Except'' and
inserting ``Notwithstanding section 479B of the Higher
Education Act of 1965 (20 U.S.C. 1087uu) and except'';
(iii) by amending subparagraph (D) to read as follows:
``(D) Training services.--Training services authorized
under this paragraph may include--
``(i) occupational skills training;
``(ii) on-the-job training;
``(iii) skill upgrading and retraining;
``(iv) entrepreneurial training;
``(v) education activities leading to a regular secondary
school diploma or its recognized equivalent in combination
with, concurrently or subsequently, occupational skills
training;
``(vi) adult education and family literacy education
activities provided in conjunction with other training
services authorized under this subparagraph;
``(vii) workplace training combined with related
instruction;
``(viii) occupational skills training that incorporates
English language acquisition;
``(ix) customized training conducted with a commitment by
an employer or group of employers to employ an individual
upon successful completion of the training; and
``(x) training programs operated by the private sector.'';
(iv) by striking subparagraph (E) and redesignating
subparagraphs (F) and (G) as subparagraphs (E) and (F),
respectively; and
(v) in subparagraph (E) (as so redesignated)--
(I) in clause (ii)--
(aa) in the matter preceding subclause (I), by striking
``subsection (c)'' and inserting ``section 121'';
(bb) in subclause (I), by striking ``section 122(e)'' and
inserting ``section 122(d)'' and by striking ``section
122(h)'' and inserting ``section 122(i)''; and
(cc) in subclause (II), by striking ``subsections (e) and
(h)'' and inserting ``subsections (d) and (i)''; and
(II) by striking clause (iii) and inserting the following:
``(iii) Career enhancement accounts.--An individual who
seeks training services and who is eligible pursuant to
subparagraph (A), may, in consultation with a case manager,
select an eligible provider of training services from the
list or identifying information for providers described in
clause (ii)(I). Upon such selection, the one-stop operator
involved shall, to the extent practicable, refer such
individual to the eligible provider of training services, and
arrange for payment for such services through a career
enhancement account.
``(iv) Coordination.--Each local board may, through one-
stop centers, coordinate career enhancement accounts with
other Federal, State, local, or private job training programs
or sources to assist the individual in obtaining training
services from (notwithstanding any provision of this title)
eligible providers for those programs and sources.
``(v) Assistance.--Each local board may, through one-stop
centers, assist individuals receiving career enhancement
accounts in obtaining funds (in addition to the funds
provided under this section) from other programs and sources
that will assist the individual in obtaining training
services.''; and
(vi) in subparagraph (F) (as so redesignated)--
(I) in the subparagraph heading, by striking ``individual
training accounts'' and inserting ``career enhancement
accounts'';
(II) in clause (i), by striking ``individual training
accounts'' and inserting ``career enhancement accounts'';
(III) in clause (ii)--
(aa) by striking ``an individual training account'' and
inserting ``a career enhancement account'';
(bb) by striking ``subparagraph (F)'' and inserting
``subparagraph (E)'';
(cc) in subclause (II), by striking ``individual training
accounts'' and inserting ``career enhancement accounts'';
(dd) in subclause (II), by striking ``or'' after the
semicolon;
(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 a postsecondary
educational institution that has been identified as a
priority eligible provider under section 117(d)(5)(B) in
order to facilitate the training of multiple individuals in
in-demand industries or occupations important to the State or
local economy, that such contract may be used to enable the
expansion of programs provided by a priority eligible
provider, and that such contract does not limit customer
choice.'';
(IV) in clause (iii), by striking ``adult or dislocated
worker'' and inserting ``individual''; and
(V) in clause (iv)--
(aa) by redesignating subclause (IV) as subclause (V); and
(bb) by inserting after subclause (III) the following:
``(IV) Individuals with disabilities.'';
(6) in subsection (d) (as so redesignated)--
(A) by amending paragraph (1) to read as follows:
``(1) Discretionary one-stop delivery activities.--
``(A) In general.--Funds allocated to a local area under
section 133(b)(2) may be used to provide, through the one-
stop delivery system--
``(i) customized screening and referral of qualified
participants in training services to employers;
``(ii) customized employment-related services to employers
on a fee-for-service basis;
``(iii) customer supports, including transportation and
child care, to navigate among multiple services and
activities for special participant populations that face
multiple barriers to employment, including individuals with
disabilities;
``(iv) employment and training assistance provided in
coordination with child support enforcement activities of the
State agency carrying out subtitle D of title IV of the
Social Security Act (42 U.S.C. 651 et seq.);
``(v) incorporation of pay-for-performance contract
strategies as an element in funding activities under this
section;
``(vi) activities to facilitate remote access to services
provided through a one-stop delivery system, including
facilitating access through the use of technology; and
``(vii) activities to carry out business services and
strategies that meet the workforce investment needs of local
area employers, as determined by the local board, consistent
with the local plan under section 118.'';
(B) by striking paragraphs (2) and (3); and
(C) by adding at the end the following:
``(2) Incumbent worker training programs.--
``(A) In general.--The local board may use funds allocated
to a local area under section 133(b)(2) to carry out
incumbent worker training programs in accordance with this
paragraph.
``(B) Training activities.--The training programs for
incumbent workers under this paragraph shall be carried out
by the local area in conjunction with the employers of such
workers for the purpose of assisting such workers in
obtaining the skills necessary to retain employment and avert
layoffs.
``(C) Employer match required.--
``(i) In general.--Employers participating in programs
under this paragraph shall be required to pay a proportion of
the costs of providing the training to the incumbent workers
of the employers. The local board shall establish the
required payment toward such costs, which may include in-kind
contributions.
``(ii) Calculation of match.--The wages paid by an employer
to a worker while they are attending training may be included
as part of the required payment of the employer.''; and
(7) by adding at the end the following:
``(e) Priority for Placement in Private Sector Jobs.--In
providing employment and training activities authorized under
this section, the State board and local board shall give
priority to placing participants in jobs in the private
sector.
``(f) Veteran Employment Specialist.--
``(1) In general.--Subject to paragraph (8), a local board
shall hire and employ one or more veteran employment
specialists to carry out employment, training, supportive,
and placement services under this subsection in the local
area served by the local board.
``(2) Principal duties.--A veteran employment specialist in
a local area shall--
``(A) conduct outreach to employers in the local area to
assist veterans, including disabled veterans, in gaining
employment, including--
``(i) conducting seminars for employers; and
``(ii) in conjunction with employers, conducting job search
workshops, and establishing job search groups; and
``(B) facilitate the furnishing of employment, training,
supportive, and placement services to veterans, including
disabled and homeless veterans, in the local area.
``(3) Hiring preference for veterans and individuals with
expertise in serving veterans.--Subject to paragraph (8), a
local
[[Page S163]]
board shall, to the maximum extent practicable, employ
veterans or individuals with expertise in serving veterans to
carry out the services described in paragraph (2) in the
local area served by the local board. In hiring an individual
to serve as a veteran employment specialist, a local board
shall give preference to veterans and other individuals in
the following order:
``(A) To service-connected disabled veterans.
``(B) If no veteran described in subparagraph (A) is
available, to veterans.
``(C) If no veteran described in subparagraph (A) or (B) is
available, to any member of the Armed Forces transitioning
out of military service.
``(D) If no veteran or member described in subparagraph
(A), (B), or (C) is available, to any spouse of a veteran or
a spouse of a member of the Armed Forces transitioning out of
military service.
``(E) If no veteran or member described in subparagraph
(A), (B), or (C) is available and no spouse described in
paragraph (D) is available, to any other individuals with
expertise in serving veterans.
``(4) Administration and reporting.--
``(A) In general.--Each veteran employment specialist shall
be administratively responsible to the one-stop operator of
the one-stop center in the local area and shall provide, at a
minimum, quarterly reports to the one-stop operator of such
center and to the Assistant Secretary for Veterans'
Employment and Training for the State on the specialist's
performance, and compliance by the specialist with Federal
law (including regulations), with respect to the--
``(i) principal duties (including facilitating the
furnishing of services) for veterans described in paragraph
(2); and
``(ii) hiring preferences described in paragraph (3) for
veterans and other individuals.
``(B) Report to secretary.--Each State shall submit to the
Secretary an annual report on the qualifications used by each
local board in the State in making hiring determinations for
a veteran employment specialist and the salary structure
under which such specialist is compensated.
``(C) Report to congress.--The Secretary shall submit to
the Committee on Education and the Workforce and the
Committee on Veterans' Affairs of the House of
Representatives and the Committee on Health, Education,
Labor, and Pensions and the Committee on Veterans' Affairs of
the Senate an annual report summarizing the reports submitted
under subparagraph (B), and including summaries of outcomes
achieved by participating veterans, disaggregated by local
areas.
``(5) Part-time employees.--A part-time veteran employment
specialist shall perform the functions of a veteran
employment specialist under this subsection on a halftime
basis.
``(6) Training requirements.--Each veteran employment
specialist described in paragraph (2) shall satisfactorily
complete training provided by the National Veterans'
Employment and Training Institute during the 3-year period
that begins on the date on which the employee is so assigned.
``(7) Specialist's duties.--A full-time veteran employment
specialist shall perform only duties related to employment,
training, supportive, and placement services under this
subsection, and shall not perform other non-veteran-related
duties if such duties detract from the specialist's ability
to perform the specialist's duties related to employment,
training, supportive, and placement services under this
subsection.
``(8) State option.--At the request of a local board, a
State may opt to assume the duties assigned to the local
board under paragraphs (1) and (3), including the hiring and
employment of one or more veteran employment specialists for
placement in the local area served by the local board.''.
SEC. 423. PERFORMANCE ACCOUNTABILITY SYSTEM.
Section 136 (29 U.S.C. 2871) is amended--
(1) in subsection (b)--
(A) by amending paragraphs (1) and (2) to read as follows:
``(1) In general.--For each State, the State performance
measures shall consist of--
``(A)(i) the core indicators of performance described in
paragraph (2)(A); and
``(ii) additional indicators of performance (if any)
identified by the State under paragraph (2)(B); and
``(B) a State adjusted level of performance for each
indicator described in subparagraph (A).
``(2) Indicators of performance.--
``(A) Core indicators of performance.--
``(i) In general.--The core indicators of performance for
the program of employment and training activities authorized
under sections 132(a)(2) and 134, the program of adult
education and family literacy education activities authorized
under title II, and the program authorized under title I of
the Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.), other
than section 112 or part C of that title (29 U.S.C. 732,
741), shall consist of the following indicators of
performance (with performance determined in the aggregate and
as disaggregated by the populations identified in the State
and local plan in each case):
``(I) The percentage and number of program participants who
are in unsubsidized employment during the second full
calendar quarter after exit from the program.
``(II) The percentage and number of program participants
who are in unsubsidized employment during the fourth full
calendar quarter after exit from the program.
``(III) The difference in the median earnings of program
participants who are in unsubsidized employment during the
second full calendar quarter after exit from the program,
compared to the median earnings of such participants prior to
participation in such program.
``(IV) The percentage and number of program participants
who obtain a recognized postsecondary credential (such as an
industry-recognized credential or a certificate from a
registered apprenticeship program), or a regular secondary
school diploma or its recognized equivalent (subject to
clause (ii)), during participation in or within 1 year after
exit from the program.
``(V) The percentage and number of program participants
who, during a program year--
``(aa) are in an education or training program that leads
to a recognized postsecondary credential (such as an
industry-recognized credential or a certificate from a
registered apprenticeship program), a certificate from an on-
the-job training program, a regular secondary school diploma
or its recognized equivalent, or unsubsidized employment; and
``(bb) are achieving measurable basic skill gains toward
such a credential, certificate, diploma, or employment.
``(VI) The percentage and number of program participants
who obtain unsubsidized employment in the field relating to
the training services described in section 134(c)(4) that
such participants received.
``(ii) Indicator relating to credential.--For purposes of
clause (i)(IV), program participants who obtain a regular
secondary school diploma or its recognized equivalent shall
be included in the percentage counted as meeting the
criterion under such clause only if such participants (in
addition to obtaining such diploma or its recognized
equivalent), within 1 year after exit from the program, have
obtained or retained employment, have been removed from
public assistance, or have begun an education or training
program leading to a recognized postsecondary credential.
``(B) Additional indicators.--A State may identify in the
State plan additional indicators for workforce investment
activities authorized under this subtitle.''; and
(B) in paragraph (3)--
(i) in subparagraph (A)--
(I) in the heading, by striking ``and customer satisfaction
indicator'';
(II) in clause (i), by striking ``and the customer
satisfaction indicator described in paragraph (2)(B)'';
(III) in clause (ii), by striking ``and the customer
satisfaction indicator of performance, for the first 3'' and
inserting ``, for all 3'';
(IV) in clause (iii)--
(aa) in the heading, by striking ``for first 3 years''; and
(bb) by striking ``and the customer satisfaction indicator
of performance, for the first 3 program years'' and inserting
``for all 3 program years'';
(V) in clause (iv)--
(aa) by striking ``or (v)'';
(bb) by striking subclause (I) and redesignating subclauses
(II) and (III) as subclauses (I) and (II), respectively; and
(cc) in subclause (I) (as so redesignated)--
(AA) by inserting ``, such as unemployment rates and job
losses or gains in particular industries'' after ``economic
conditions''; and
(BB) by inserting ``, such as indicators of poor work
experience, dislocation from high-wage employment, low levels
of literacy or English proficiency, disability status
(including disability status among veterans), and welfare
dependency,'' after ``program'';
(VI) by striking clause (v) and redesignating clause (vi)
as clause (v); and
(VII) in clause (v) (as so redesignated),
(aa) by striking ``described in clause (iv)(II)'' and
inserting ``described in clause (iv)(I)''; and
(bb) by striking ``or (v)''; and
(ii) in subparagraph (B), by striking ``paragraph (2)(C)''
and inserting ``paragraph (2)(B)'';
(2) in subsection (c)--
(A) by amending clause (i) of paragraph (1)(A) to read as
follows:
``(i) the core indicators of performance described in
subsection (b)(2)(A) for activities described in such
subsection, other than statewide workforce investment
activities; and'';
(B) in clause (ii) of paragraph (1)(A), by striking
``(b)(2)(C)'' and inserting ``(b)(2)(B)''; and
(C) by amending paragraph (3) to read as follows:
``(3) Determinations.--In determining such local levels of
performance, the local board, the chief elected official, and
the Governor shall ensure such levels are adjusted based on
the specific economic conditions (such as unemployment rates
and job losses or gains in particular industries), or
demographic characteristics or other characteristics of the
population to be served, in the local area.'';
(3) in subsection (d)--
(A) in paragraph (1)--
(i) by striking ``127 or'';
(ii) by striking ``and the customer satisfaction
indicator'' each place it appears; and
(iii) in the last sentence, by inserting before the period
the following: ``, and on the amount and percentage of the
State's annual allotment under section 132 the State spends
on administrative costs and on the amount and percentage of
its annual allocation
[[Page S164]]
under section 133 each local area in the State spends on
administrative costs'';
(B) in paragraph (2)--
(i) by striking subparagraphs (A), (B), and (D);
(ii) by redesignating subparagraph (C) as subparagraph (A);
(iii) by redesignating subparagraph (E) as subparagraph
(B);
(iv) in subparagraph (B), as so redesignated--
(I) by striking ``(excluding participants who received only
self-service and informational activities)''; and
(II) by striking ``and'' at the end;
(v) by striking subparagraph (F);
(vi) by adding at the end the following:
``(C) with respect to each local area in the State--
``(i) the number of individuals who received work ready
services described in section 134(c)(2) and the number of
individuals who received training services described in
section 134(c)(4), during the most recent program year and
fiscal year, and the preceding 5 program years, disaggregated
(for individuals who received work ready services) by the
type of entity that provided the work ready services and
disaggregated (for individuals who received training
services) by the type of entity that provided the training
services, and the amount of funds spent on each of the 2
types of services during the most recent program year and
fiscal year, and the preceding 5 fiscal years;
``(ii) the number of individuals who successfully exited
out of work ready services described in section 134(c)(2) and
the number of individuals who exited out of training services
described in section 134(c)(4), during the most recent
program year and fiscal year, and the preceding 5 program
years, disaggregated (for individuals who received work ready
services) by the type of entity that provided the work ready
services and disaggregated (for individuals who received
training services) by the type of entity that provided the
training services; and
``(iii) the average cost per participant of those
individuals who received work ready services described in
section 134(c)(2) and the average cost per participant of
those individuals who received training services described in
section 134(c)(4), during the most recent program year and
fiscal year, and the preceding 5 program years, disaggregated
(for individuals who received work ready services) by the
type of entity that provided the work ready services and
disaggregated (for individuals who received training
services) by the type of entity that provided the training
services; and
``(D) the amount of funds spent on training services and
discretionary activities described in section 134(d),
disaggregated by the populations identified under section
112(b)(16)(A)(iv) and section 118(b)(10).'';
(C) in paragraph (3)(A), by striking ``through
publication'' and inserting ``through electronic means''; and
(D) by adding at the end the following:
``(4) Data validation.--In preparing the reports described
in this subsection, each State shall establish procedures,
consistent with guidelines issued by the Secretary, to ensure
the information contained in the reports is valid and
reliable.
``(5) State and local policies.--
``(A) State policies.--Each State that receives an
allotment under section 132 shall maintain a central
repository of policies related to access, eligibility,
availability of services, and other matters, and plans
approved by the State board and make such repository
available to the public, including by electronic means.
``(B) Local policies.--Each local area that receives an
allotment under section 133 shall maintain a central
repository of policies related to access, eligibility,
availability of services, and other matters, and plans
approved by the local board and make such repository
available to the public, including by electronic means.'';
(4) in subsection (g)--
(A) in paragraph (1)--
(i) in subparagraph (A), by striking ``or (B)''; and
(ii) in subparagraph (B), by striking ``may reduce by not
more than 5 percent,'' and inserting ``shall reduce''; and
(B) by striking paragraph (2) and inserting the following:
``(2) Funds resulting from reduced allotments.--The
Secretary shall return to the Treasury the amount retained,
as a result of a reduction in an allotment to a State made
under paragraph (1)(B).'';
(5) in subsection (h)--
(A) in paragraph (1), by striking ``or (B)''; and
(B) in paragraph (2)--
(i) in subparagraph (A), by amending the matter preceding
clause (i) to read as follows:
``(A) In general.--If such failure continues for a second
consecutive year, the Governor shall take corrective actions,
including the development of a reorganization plan. Such plan
shall--'';
(ii) by redesignating subparagraphs (B) and (C) as
subparagraphs (C) and (D), respectively;
(iii) by inserting after subparagraph (A), the following:
``(B) Reduction in the amount of grant.--If such failure
continues for a third consecutive year, the Governor shall
reduce the amount of the grant that would (in the absence of
this subparagraph) be payable to the local area under such
program for the program year after such third consecutive
year. Such penalty shall be based on the degree of failure to
meet local levels of performance.'';
(iv) in subparagraph (C)(i) (as so redesignated), by
striking ``a reorganization plan under subparagraph (A) may,
not later than 30 days after receiving notice of the
reorganization plan, appeal to the Governor to rescind or
revise such plan'' and inserting ``corrective action under
subparagraph (A) or (B) may, not later than 30 days after
receiving notice of the action, appeal to the Governor to
rescind or revise such action''; and
(v) in subparagraph (D) (as so redesignated), by striking
``subparagraph (B)'' each place it appears and inserting
``subparagraph (C)'';
(6) in subsection (i)--
(A) in paragraph (1)--
(i) in subparagraph (B), by striking ``subsection
(b)(2)(C)'' and inserting ``subsection (b)(2)(B)''; and
(ii) in subparagraph (C), by striking ``(b)(3)(A)(vi)'' and
inserting ``(b)(3)(A)(v)'';
(B) in paragraph (2), by striking ``the activities
described in section 502 concerning''; and
(C) in paragraph (3), by striking ``described in paragraph
(1) and in the activities described in section 502'' and
inserting ``and activities described in this subsection'';
and
(7) by adding at the end the following new subsections:
``(j) Use of Core Indicators for Other Programs.--
Consistent with the requirements of the applicable
authorizing laws, the Secretary shall use the core indicators
of performance described in subsection (b)(2)(A) to assess
the effectiveness of the programs described in section
121(b)(1)(B) (in addition to the programs carried out under
chapter 5) that are carried out by the Secretary.
``(k) Establishing Pay-for-Performance Incentives.--
``(1) In general.--At the discretion of the Governor of a
State, a State may establish an incentive system for local
boards to implement pay-for-performance contract strategies
for the delivery of employment and training activities in the
local areas served by the local boards.
``(2) Implementation.--A State that establishes a pay-for-
performance incentive system shall reserve not more than 10
percent of the total amount allotted to the State under
section 132(b)(2) for a fiscal year to provide funds to local
areas in the State whose local boards have implemented a pay-
for-performance contract strategy.
``(3) Evaluations.--A State described in paragraph (2)
shall use funds reserved by the State under section 133(a)(1)
to evaluate the return on investment of pay-for-performance
contract strategies implemented by local boards in the
State.''.
SEC. 424. AUTHORIZATION OF APPROPRIATIONS.
Section 137 (29 U.S.C. 2872) is amended to read as follows:
``SEC. 137. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out the
activities described in section 132, $6,245,318,000 for
fiscal year 2015 and each of the 6 succeeding fiscal
years.''.
CHAPTER 3--JOB CORPS
SEC. 426. JOB CORPS PURPOSES.
Paragraph (1) of section 141 (29 U.S.C. 2881(1)) is amended
to read as follows:
``(1) to maintain a national Job Corps program for at-risk
youth, carried out in partnership with States and
communities, to assist eligible youth to connect to the
workforce by providing them with intensive academic, career
and technical education, and service-learning opportunities,
in residential and nonresidential centers, in order for such
youth to obtain regular secondary school diplomas and
recognized postsecondary credentials leading to successful
careers in in-demand industries that will result in
opportunities for advancement;''.
SEC. 427. JOB CORPS DEFINITIONS.
Section 142 (29 U.S.C. 2882) is amended--
(1) in paragraph (2)--
(A) in the paragraph heading, by striking ``Applicable one-
stop'' and inserting ``One-stop'';
(B) by striking ``applicable'';
(C) by striking ``customer service''; and
(D) by striking ``intake'' and inserting ``assessment'';
(2) in paragraph (4), by striking ``before completing the
requirements'' and all that follows and inserting ``prior to
becoming a graduate.''; and
(3) in paragraph (5), by striking ``has completed the
requirements'' and all that follows and inserting the
following: ``who, as a result of participation in the Job
Corps program, has received a regular secondary school
diploma, completed the requirements of a career and technical
education and training program, or received, or is making
satisfactory progress (as defined under section 484(c) of the
Higher Education Act of 1965 (20 U.S.C. 1091(c))) toward
receiving, a recognized postsecondary credential (including
an industry-recognized credential) that prepares individuals
for employment leading to economic self-sufficiency.''.
SEC. 428. INDIVIDUALS ELIGIBLE FOR THE JOB CORPS.
Section 144 (29 U.S.C. 2884) is amended--
(1) by amending paragraph (1) to read as follows:
``(1) not less than age 16 and not more than age 24 on the
date of enrollment;'';
(2) in paragraph (3)(B), by inserting ``secondary'' before
``school''; and
(3) in paragraph (3)(E), by striking ``vocational'' and
inserting ``career and technical education and''.
[[Page S165]]
SEC. 429. RECRUITMENT, SCREENING, SELECTION, AND ASSIGNMENT
OF ENROLLEES.
Section 145 (29 U.S.C. 2885) is amended--
(1) in subsection (a)--
(A) in paragraph (2)(C)(i) by striking ``vocational'' and
inserting ``career and technical education and training'';
and
(B) in paragraph (3)--
(i) by striking ``To the extent practicable, the'' and
inserting ``The'';
(ii) in subparagraph (A)--
(I) by striking ``applicable''; and
(II) by inserting ``and'' after the semicolon;
(iii) by striking subparagraphs (B) and (C); and
(iv) by adding at the end the following:
``(B) organizations that have a demonstrated record of
effectiveness in placing at-risk youth into employment.'';
(2) in subsection (b)--
(A) in paragraph (1)--
(i) in subparagraph (B), by inserting ``and agrees to such
rules'' after ``failure to observe the rules''; and
(ii) by amending subparagraph (C) to read as follows:
``(C) the individual has passed a background check
conducted in accordance with procedures established by the
Secretary, which shall include--
``(i) a search of the State criminal registry or repository
in the State where the individual resides and each State
where the individual previously resided;
``(ii) a search of State-based child abuse and neglect
registries and databases in the State where the individual
resides and each State where the individual previously
resided;
``(iii) a search of the National Crime Information Center;
``(iv) a Federal Bureau of Investigation fingerprint check
using the Integrated Automated Fingerprint Identification
System; and
``(v) a search of the National Sex Offender Registry
established under the Adam Walsh Child Protection and Safety
Act of 2006 (42 U.S.C. 16901 et seq.).''; and
(B) by adding at the end the following new paragraph:
``(3) Individuals convicted of a crime.--An individual
shall be ineligible for enrollment if the individual--
``(A) makes a false statement in connection with the
criminal background check described in paragraph (1)(C);
``(B) is registered or is required to be registered on a
State sex offender registry or the National Sex Offender
Registry established under the Adam Walsh Child Protection
and Safety Act of 2006 (42 U.S.C. 16901 et seq.); or
``(C) has been convicted of a felony consisting of--
``(i) homicide;
``(ii) child abuse or neglect;
``(iii) a crime against children, including child
pornography;
``(iv) a crime involving rape or sexual assault; or
``(v) physical assault, battery, or a drug-related offense,
committed within the past 5 years.'';
(3) in subsection (c)--
(A) in paragraph (1)--
(i) by striking ``2 years'' and inserting ``year''; and
(ii) by striking ``an assignment'' and inserting ``a''; and
(B) in paragraph (2)--
(i) in the matter preceding subparagraph (A), by striking
``, every 2 years,'';
(ii) in subparagraph (B), by striking ``and'' at the end;
and
(iii) in subparagraph (C)--
(I) by inserting ``the education and training'' after
``including''; and
(II) by striking the period at the end and inserting ``;
and''; and
(iv) by adding at the end the following:
``(D) the performance of the Job Corps center relating to
the indicators described in paragraphs (1) and (2) in section
159(c), and whether any actions have been taken with respect
to such center pursuant to section 159(f).''; and
(4) in subsection (d)--
(A) in paragraph (1)--
(i) in the matter preceding subparagraph (A), by striking
``is closest to the home of the enrollee, except that the''
and inserting ``offers the type of career and technical
education and training selected by the individual and, among
the centers that offer such education and training, is
closest to the home of the individual. The'';
(ii) by striking subparagraph (A); and
(iii) by redesignating subparagraphs (B) and (C) as
subparagraphs (A) and (B), respectively; and
(B) in paragraph (2), by inserting ``that offers the career
and technical education and training desired by'' after
``home of the enrollee''.
SEC. 430. JOB CORPS CENTERS.
Section 147 (29 U.S.C. 2887) is amended--
(1) in subsection (a)--
(A) in paragraph (1)(A), by striking ``vocational'' both
places it appears and inserting ``career and technical''; and
(B) in paragraph (2)--
(i) in subparagraph (A)--
(I) by striking ``subsections (c) and (d) of section 303 of
the Federal Property and Administrative Services Act of 1949
(41 U.S.C. 253)'' and inserting ``subsections (a) and (b) of
section 3304 of title 41, United States Code''; and
(II) by striking ``industry council'' and inserting
``workforce council'';
(ii) in subparagraph (B)(i)--
(I) by amending subclause (II) to read as follows:
``(II) the ability of the entity to offer career and
technical education and training that the workforce council
proposes under section 154(c);'';
(II) in subclause (III), by striking ``is familiar with the
surrounding communities, applicable'' and inserting
``demonstrates relationships with the surrounding
communities, employers, workforce boards,'' and by striking
``and'' at the end;
(III) by amending subclause (IV) to read as follows:
``(IV) the performance of the entity, if any, relating to
operating or providing activities described in this subtitle
to a Job Corps center, including the entity's demonstrated
effectiveness in assisting individuals in achieving the
primary and secondary indicators of performance described in
paragraphs (1) and (2) of section 159(c); and''; and
(IV) by adding at the end the following new subclause:
``(V) the ability of the entity to demonstrate a record of
successfully assisting at-risk youth to connect to the
workforce, including by providing them with intensive
academic, and career and technical education and training.'';
and
(iii) in subparagraph (B)(ii)--
(I) by striking ``, as appropriate''; and
(II) by striking ``through (IV)'' and inserting ``through
(V)'';
(2) in subsection (b), by striking ``In any year, no more
than 20 percent of the individuals enrolled in the Job Corps
may be nonresidential participants in the Job Corps.'';
(3) by amending subsection (c) to read as follows:
``(c) Civilian Conservation Centers.--
``(1) In general.--The Job Corps centers may include
Civilian Conservation Centers, operated under an agreement
between the Secretary of Labor and the Secretary of
Agriculture, that are located primarily in rural areas. Such
centers shall adhere to all the provisions of this subtitle,
and shall provide, in addition to education, career and
technical education and training, and workforce preparation
skills training described in section 148, programs of work
experience to conserve, develop, or manage public natural
resources or public recreational areas or to develop
community projects in the public interest.
``(2) Selection process.--The Secretary shall select an
entity that submits an application under subsection (d) to
operate a Civilian Conservation Center on a competitive
basis, as provided in subsection (a).''; and
(4) by striking subsection (d) and inserting the following:
``(d) Application.--To be eligible to operate a Job Corps
center under this subtitle, an entity shall submit an
application to the Secretary at such time, in such manner,
and containing such information as the Secretary may require,
including--
``(1) a description of the program activities that will be
offered at the center, including how the career and technical
education and training reflect State and local employment
opportunities, including in in-demand industries;
``(2) a description of the counseling, placement, and
support activities that will be offered at the center,
including a description of the strategies and procedures the
entity will use to place graduates into unsubsidized
employment upon completion of the program;
``(3) a description of the demonstrated record of
effectiveness that the entity has in placing at-risk youth
into employment, including past performance of operating a
Job Corps center under this subtitle;
``(4) a description of the relationships that the entity
has developed with State and local workforce boards,
employers, State and local educational agencies, and the
surrounding communities in an effort to promote a
comprehensive statewide workforce investment system;
``(5) a description of the strong fiscal controls the
entity has in place to ensure proper accounting of Federal
funds, and a description of how the entity will meet the
requirements of section 159(a);
``(6) a description of the strategies and policies the
entity will utilize to reduce participant costs;
``(7) a description of the steps taken to control costs in
accordance with section 159(a)(3);
``(8) a detailed budget of the activities that will be
supported using funds under this subtitle;
``(9) a detailed budget of the activities that will be
supported using funds from non-Federal resources;
``(10) an assurance the entity will comply with the
administrative cost limitation included in section 151(c);
``(11) an assurance the entity is licensed to operate in
the State in which the center is located; and
``(12) an assurance the entity will comply with and meet
basic health and safety codes, including those measures
described in section 152(b).
``(e) Length of Agreement.--The agreement described in
subsection (a)(1)(A) shall be for not longer than a 2-year
period. The Secretary may renew the agreement for 3 1-year
periods if the entity meets the requirements of subsection
(f).
``(f) Renewal.--
``(1) In general.--Subject to paragraph (2), the Secretary
may renew the terms of an
[[Page S166]]
agreement described in subsection (a)(1)(A) for an entity to
operate a Job Corps center if the center meets or exceeds
each of the indicators of performance described in section
159(c)(1).
``(2) Recompetition.--
``(A) In general.--Notwithstanding paragraph (1), the
Secretary shall not renew the terms of the agreement for an
entity to operate a Job Corps center if such center is ranked
in the bottom quintile of centers described in section
159(f)(2) for any program year. Such entity may submit a new
application under subsection (d) only if such center has
shown significant improvement on the indicators of
performance described in section 159(c)(1) over the last
program year.
``(B) Violations.--The Secretary shall not select an entity
to operate a Job Corps center if such entity or such center
has been found to have a systemic or substantial material
failure that involves--
``(i) a threat to the health, safety, or civil rights of
program participants or staff;
``(ii) the misuse of funds received under this subtitle;
``(iii) loss of legal status or financial viability, loss
of permits, debarment from receiving Federal grants or
contracts, or the improper use of Federal funds;
``(iv) failure to meet any other Federal or State
requirement that the entity has shown an unwillingness or
inability to correct, after notice from the Secretary, within
the period specified; or
``(v) an unresolved area of noncompliance.
``(g) Current Grantees.--Not later than 60 days after the
date of enactment of the SKILLS Act and notwithstanding any
previous grant award or renewals of such award under this
subtitle, the Secretary shall require all entities operating
a Job Corps center under this subtitle to submit an
application under subsection (d) to carry out the
requirements of this section.''.
SEC. 431. PROGRAM ACTIVITIES.
Section 148 (29 U.S.C. 2888) is amended--
(1) by amending subsection (a) to read as follows:
``(a) Activities Provided Through Job Corps Centers.--
``(1) In general.--Each Job Corps center shall provide
enrollees with an intensive, well-organized, and supervised
program of education, career and technical education and
training, work experience, recreational activities, physical
rehabilitation and development, and counseling. Each Job
Corps center shall provide enrollees assigned to the center
with access to work ready services described in section
134(c)(2).
``(2) Relationship to opportunities.--
``(A) In general.--The activities provided under this
subsection shall be targeted to helping enrollees, on
completion of their enrollment--
``(i) secure and maintain meaningful unsubsidized
employment;
``(ii) complete secondary education and obtain a regular
secondary school diploma;
``(iii) enroll in and complete postsecondary education or
training programs, including obtaining recognized
postsecondary credentials (such as industry-recognized
credentials and certificates from registered apprenticeship
programs); or
``(iv) satisfy Armed Forces requirements.
``(B) Link to employment opportunities.--The career and
technical education and training provided shall be linked to
the employment opportunities in in-demand industries in the
State in which the Job Corps center is located.''; and
(2) in subsection (b)--
(A) in the subsection heading, by striking ``Education and
Vocational'' and inserting ``Academic and Career and
Technical Education and'';
(B) by striking ``may'' after ``The Secretary'' and
inserting ``shall''; and
(C) by striking ``vocational'' each place it appears and
inserting ``career and technical''; and
(3) by amending paragraph (3) of subsection (c) to read as
follows:
``(3) Demonstration.--Each year, any operator seeking to
enroll additional enrollees in an advanced career training
program shall demonstrate, before the operator may carry out
such additional enrollment, that--
``(A) participants in such program have achieved a
satisfactory rate of completion and placement in training-
related jobs; and
``(B) such operator has met or exceeded the indicators of
performance described in paragraphs (1) and (2) of section
159(c) for the previous year.''.
SEC. 432. COUNSELING AND JOB PLACEMENT.
Section 149 (29 U.S.C. 2889) is amended--
(1) in subsection (a), by striking ``vocational'' and
inserting ``career and technical education and'';
(2) in subsection (b)--
(A) by striking ``make every effort to arrange to''; and
(B) by striking ``to assist'' and inserting ``assist''; and
(3) by striking subsection (d).
SEC. 433. SUPPORT.
Subsection (b) of section 150 (29 U.S.C. 2890) is amended
to read as follows:
``(b) Transition Allowances and Support for Graduates.--The
Secretary shall arrange for a transition allowance to be paid
to graduates. The transition allowance shall be incentive-
based to reflect a graduate's completion of academic, career
and technical education or training, and attainment of a
recognized postsecondary credential, including an industry-
recognized credential.''.
SEC. 434. OPERATIONS.
Section 151 (29 U.S.C. 2891) is amended--
(1) in the header, by striking ``operating plan.'' and
inserting ``operations.'';
(2) in subsection (a), by striking ``In General.--'' and
inserting ``Operating Plan.--'';
(3) by striking subsection (b) and redesignating subsection
(c) as subsection (b);
(4) by amending subsection (b) (as so redesignated)--
(A) in the heading by inserting ``of Operating Plan'' after
``Availability''; and
(B) by striking ``subsections (a) and (b)'' and inserting
``subsection (a)''; and
(5) by adding at the end the following new subsection:
``(c) Administrative Costs.--Not more than 10 percent of
the funds allotted under section 147 to an entity selected to
operate a Job Corps center may be used by the entity for
administrative costs under this subtitle.''.
SEC. 435. COMMUNITY PARTICIPATION.
Section 153 (29 U.S.C. 2893) is amended to read as follows:
``SEC. 153. COMMUNITY PARTICIPATION.
``The director of each Job Corps center shall encourage and
cooperate in activities to establish a mutually beneficial
relationship between Job Corps centers in the State and
nearby communities. Such activities may include the use of
any local workforce development boards established under
section 117 to provide a mechanism for joint discussion of
common problems and for planning programs of mutual
interest.''.
SEC. 436. WORKFORCE COUNCILS.
Section 154 (29 U.S.C. 2894) is amended to read as follows:
``SEC. 154. WORKFORCE COUNCILS.
``(a) In General.--Each Job Corps center shall have a
workforce council appointed by the Governor of the State in
which the Job Corps center is located.
``(b) Workforce Council Composition.--
``(1) In general.--A workforce council shall be comprised
of--
``(A) business members of the State board described in
section 111(b)(1)(B)(i);
``(B) business members of the local boards described in
section 117(b)(2)(A) located in the State;
``(C) a representative of the State board described in
section 111(f); and
``(D) such other representatives and State agency officials
as the Governor may designate.
``(2) Majority.--A \2/3\ majority of the members of the
workforce council shall be representatives described in
paragraph (1)(A).
``(c) Responsibilities.--The responsibilities of the
workforce council shall be--
``(1) to review all the relevant labor market information,
including related information in the State plan described in
section 112, to--
``(A) determine the in-demand industries in the State in
which enrollees intend to seek employment after graduation;
``(B) determine the skills and education that are necessary
to obtain the employment opportunities described in
subparagraph (A); and
``(C) determine the type or types of career and technical
education and training that will be implemented at the center
to enable the enrollees to obtain the employment
opportunities; and
``(2) to meet at least once a year to reevaluate the labor
market information, and other relevant information, to
determine any necessary changes in the career and technical
education and training provided at the center.''.
SEC. 437. TECHNICAL ASSISTANCE.
Section 156 (29 U.S.C. 2896) is amended to read as follows:
``SEC. 156. TECHNICAL ASSISTANCE TO CENTERS.
``(a) In General.--From the funds reserved under section
132(a)(3), the Secretary shall provide, directly or through
grants, contracts, or other agreements or arrangements as the
Secretary considers appropriate, technical assistance and
training for the Job Corps program for the purposes of
improving program quality.
``(b) Activities.--In providing training and technical
assistance and for allocating resources for such assistance,
the Secretary shall--
``(1) assist entities, including those entities not
currently operating a Job Corps center, in developing the
application described in section 147(d);
``(2) assist Job Corps centers and programs in correcting
deficiencies and violations under this subtitle;
``(3) assist Job Corps centers and programs in meeting or
exceeding the indicators of performance described in
paragraph (1) and (2) of section 159(c); and
``(4) assist Job Corps centers and programs in the
development of sound management practices, including
financial management procedures.''.
SEC. 438. SPECIAL PROVISIONS.
Section 158(c)(1) (29 U.S.C. 2989(c)(1)) is amended by
striking ``title II of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 481 et seq.)''
and inserting ``chapter 5 of title 40, United States Code,''.
SEC. 439. PERFORMANCE ACCOUNTABILITY MANAGEMENT.
Section 159 (29 U.S.C. 2899) is amended--
(1) in the section heading, by striking ``management
information'' and inserting ``performance accountability and
management'';
(2) in subsection (a)(3), by inserting before the period at
the end the following: ``, or operating costs for such
centers result in a budgetary shortfall'';
[[Page S167]]
(3) by striking subsections (c) through (g); and
(4) by inserting after subsection (b) the following:
``(c) Indicators of Performance.--
``(1) Primary indicators.--The annual primary indicators of
performance for Job Corps centers shall include--
``(A) the percentage and number of enrollees who graduate
from the Job Corps center;
``(B) the percentage and number of graduates who entered
unsubsidized employment related to the career and technical
education and training received through the Job Corps center,
except that such calculation shall not include enrollment in
education, the military, or volunteer service;
``(C) the percentage and number of graduates who obtained a
recognized postsecondary credential, including an industry-
recognized credential or a certificate from a registered
apprenticeship program; and
``(D) the cost per successful performance outcome, which is
calculated by comparing the number of graduates who were
placed in unsubsidized employment or obtained a recognized
postsecondary credential, including an industry-recognized
credential, to total program costs, including all operations,
construction, and administration costs at each Job Corps
center.
``(2) Secondary indicators.--The annual secondary
indicators of performance for Job Corps centers shall
include--
``(A) the percentage and number of graduates who entered
unsubsidized employment not related to the career and
technical education and training received through the Job
Corps center;
``(B) the percentage and number of graduates who entered
into postsecondary education;
``(C) the percentage and number of graduates who entered
into the military;
``(D) the average wage of graduates who are in unsubsidized
employment--
``(i) on the first day of employment; and
``(ii) 6 months after the first day;
``(E) the number and percentage of graduates who entered
unsubsidized employment and were retained in the unsubsidized
employment--
``(i) 6 months after the first day of employment; and
``(ii) 12 months after the first day of employment;
``(F) the percentage and number of enrollees compared to
the percentage and number of enrollees the Secretary has
established as targets in section 145(c)(1);
``(G) the cost per training slot, which is calculated by
comparing the program's maximum number of enrollees that can
be enrolled in a Job Corps center at any given time during
the program year to the number of enrollees in the same
program year; and
``(H) the number and percentage of former enrollees,
including the number dismissed under the zero tolerance
policy described in section 152(b).
``(3) Indicators of performance for recruiters.--The annual
indicators of performance for recruiters shall include the
measurements described in subparagraph (A) of paragraph (1)
and subparagraphs (F), (G), and (H) of paragraph (2).
``(4) Indicators of performance of career transition
service providers.--The annual indicators of performance of
career transition service providers shall include the
measurements described in subparagraphs (B) and (C) of
paragraph (1) and subparagraphs, (B), (C), (D), and (E) of
paragraph (2).
``(d) Additional Information.--The Secretary shall collect,
and submit in the report described in subsection (f),
information on the performance of each Job Corps center, and
the Job Corps program, regarding--
``(1) the number and percentage of former enrollees who
obtained a regular secondary school diploma;
``(2) the number and percentage of former enrollees who
entered unsubsidized employment;
``(3) the number and percentage of former enrollees who
obtained a recognized postsecondary credential, including an
industry-recognized credential;
``(4) the number and percentage of former enrollees who
entered into military service; and
``(5) any additional information required by the Secretary.
``(e) Methods.--The Secretary shall collect the information
described in subsections (c) and (d), using methods described
in section 136(f)(2) and consistent with State law, by
entering into agreements with the States to access such data
for Job Corps enrollees, former enrollees, and graduates.
``(f) Transparency and Accountability.--
``(1) Report.--The Secretary shall collect and annually
submit to the Committee on Education and the Workforce of the
House of Representatives and the Committee on Health,
Education, Labor and Pensions of the Senate, and make
available to the public by electronic means, a report
containing--
``(A) information on the performance of each Job Corps
center, and the Job Corps program, on the performance
indicators described in paragraphs (1) and (2) of subsection
(c);
``(B) a comparison of each Job Corps center, by rank, on
the performance indicators described in paragraphs (1) and
(2) of subsection (c);
``(C) a comparison of each Job Corps center, by rank, on
the average performance of all primary indicators described
in paragraph (1) of subsection (c);
``(D) information on the performance of the service
providers described in paragraphs (3) and (4) of subsection
(c) on the performance indicators established under such
paragraphs; and
``(E) a comparison of each service provider, by rank, on
the performance of all service providers described in
paragraphs (3) and (4) of subsection (c) on the performance
indicators established under such paragraphs.
``(2) Assessment.--The Secretary shall conduct an annual
assessment of the performance of each Job Corps center which
shall include information on the Job Corps centers that--
``(A) are ranked in the bottom 10 percent on the
performance indicator described in paragraph (1)(C); or
``(B) have failed a safety and health code review described
in subsection (g).
``(3) Performance improvement.--With respect to a Job Corps
center that is identified under paragraph (2) or reports less
than 50 percent on the performance indicators described in
subparagraph (A), (B), or (C) of subsection (c)(1), the
Secretary shall develop and implement a 1 year performance
improvement plan. Such a plan shall require action
including--
``(A) providing technical assistance to the center;
``(B) changing the management staff of the center;
``(C) replacing the operator of the center;
``(D) reducing the capacity of the center; or
``(E) closing the center.
``(4) Closure of job corps centers.--Job Corps centers that
have been identified under paragraph (2) for more than 4
consecutive years shall be closed. The Secretary shall
ensure--
``(A) that the proposed decision to close the center is
announced in advance to the general public through
publication in the Federal Register and other appropriate
means; and
``(B) the establishment of a reasonable comment period, not
to exceed 30 days, for interested individuals to submit
written comments to the Secretary.
``(g) Participant Health and Safety.--The Secretary shall
enter into an agreement with the General Services
Administration or the appropriate State agency responsible
for inspecting public buildings and safeguarding the health
of disadvantaged students, to conduct an in-person review of
the physical condition and health-related activities of each
Job Corps center annually. Such review shall include a
passing rate of occupancy under Federal and State
ordinances.''.
CHAPTER 4--NATIONAL PROGRAMS
SEC. 441. TECHNICAL ASSISTANCE.
Section 170 (29 U.S.C. 2915) is amended--
(1) by striking subsection (b);
(2) by striking:
``(a) General Technical Assistance.--'';
(3) by redesignating paragraphs (1), (2), and (3) as
subsections (a), (b), and (c) respectively, and moving such
subsections 2 ems to the left, and conforming the casing
style of the headings of such subsections to the casing style
of the heading of subsection (d), as added by paragraph (7)
of this section;
(4) in subsection (a) (as so redesignated)--
(A) by inserting ``the training of staff providing rapid
response services and additional assistance, the training of
other staff of recipients of funds under this title,
assistance regarding accounting and program operation
practices (when such assistance would not be duplicative to
assistance provided by the State), technical assistance to
States that do not meet State performance measures described
in section 136,'' after ``localities,''; and
(B) by striking ``from carrying out activities'' and all
that follows up to the period and inserting ``to implement
the amendments made by the SKILLS Act'';
(5) in subsection (b) (as so redesignated)--
(A) by striking ``paragraph (1)'' and inserting
``subsection (a)'';
(B) by striking ``, or recipient of financial assistance
under any of sections 166 through 169,''; and
(C) by striking ``or grant recipient'';
(6) in subsection (c) (as so redesignated), by striking
``paragraph (1)'' and inserting ``subsection (a)''; and
(7) by inserting, after subsection (c) (as so
redesignated), the following:
``(d) Best Practices Coordination.--The Secretary shall--
``(1) establish a system through which States may share
information regarding best practices with regard to the
operation of workforce investment activities under this Act;
and
``(2) evaluate and disseminate information regarding best
practices and identify knowledge gaps.''.
SEC. 442. EVALUATIONS.
Section 172 (29 U.S.C. 2917) is amended--
(1) in subsection (a), by striking ``the Secretary shall
provide for the continuing evaluation of the programs and
activities, including those programs and activities carried
out under section 171'' and inserting ``the Secretary,
through grants, contracts, or cooperative agreements, shall
conduct, at least once every 5 years, an independent
evaluation of the programs and activities funded under this
Act'';
(2) by amending subsection (a)(4) to read as follows:
``(4) the impact of receiving services and not receiving
services under such programs and activities on the community,
businesses, and individuals;'';
(3) by amending subsection (c) to read as follows:
[[Page S168]]
``(c) Techniques.--Evaluations conducted under this section
shall utilize appropriate and rigorous methodology and
research designs, including the use of control groups chosen
by scientific random assignment methodologies, quasi-
experimental methods, impact analysis and the use of
administrative data. The Secretary shall conduct an impact
analysis, as described in subsection (a)(4), of the formula
grant program under subtitle B not later than 2016, and
thereafter shall conduct such an analysis not less than once
every 4 years.'';
(4) in subsection (e), by striking ``the Committee on Labor
and Human Resources of the Senate'' and inserting ``the
Committee on Health, Education, Labor, and Pensions of the
Senate'';
(5) by redesignating subsection (f) as subsection (g) and
inserting after subsection (e) the following:
``(f) Reduction of Amounts Authorized to Be Appropriated
for Late Reporting.--If a report required to be transmitted
to Congress under this section is not transmitted on or
before the time period specified for that report, amounts
authorized to be appropriated under this title shall be
reduced by 10 percent for the fiscal year that begins after
the date on which the final report required under this
section is required to be transmitted and reduced by an
additional 10 percent each subsequent fiscal year until each
such report is transmitted to Congress.''; and
(6) by adding at the end, the following:
``(h) Public Availability.--The results of the evaluations
conducted under this section shall be made publicly
available, including by posting such results on the
Department's website.''.
CHAPTER 5--ADMINISTRATION
SEC. 446. REQUIREMENTS AND RESTRICTIONS.
Section 181 (29 U.S.C. 2931) is amended--
(1) in subsection (b)(6), by striking ``, including
representatives of businesses and of labor organizations,'';
(2) in subsection (c)(2)(A), in the matter preceding clause
(i), by striking ``shall'' and inserting ``may'';
(3) in subsection (e)--
(A) by striking ``training for'' and inserting ``the entry
into employment, retention in employment, or increases in
earnings of''; and
(B) by striking ``subtitle B'' and inserting ``this Act'';
(4) in subsection (f)(4), by striking ``134(a)(3)(B)'' and
inserting ``133(a)(4)''; and
(5) by adding at the end the following:
``(g) Salary and Bonus Limitation.--
``(1) In general.--No funds provided under this title shall
be used by a recipient or subrecipient of such funds to pay
the salary and bonuses of an individual, either as direct
costs or indirect costs, at a rate in excess of the rate
prescribed in level II of the Executive Schedule under
section 5315 of title 5, United States Code.
``(2) Vendors.--The limitation described in paragraph (1)
shall not apply to vendors providing goods and services as
defined in OMB Circular A-133.
``(3) Lower limit.--In a case in which a State is a
recipient of such funds, the State may establish a lower
limit than is provided in paragraph (1) for salaries and
bonuses of those receiving salaries and bonuses from a
subrecipient of such funds, taking into account factors
including the relative cost of living in the State, the
compensation levels for comparable State or local government
employees, and the size of the organizations that administer
the Federal programs involved.
``(h) General Authority.--
``(1) In general.--The Employment and Training
Administration of the Department of Labor (referred to in
this Act as the `Administration') shall administer all
programs authorized under title I and the Wagner-Peyser Act
(29 U.S.C. 49 et seq.). The Administration shall be headed by
an Assistant Secretary appointed by the President by and with
the advice and consent of the Senate. Except for title II and
the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.), the
Administration shall be the principal agency, and the
Assistant Secretary shall be the principal officer, of such
Department for carrying out this Act.
``(2) Qualifications.--The Assistant Secretary shall be an
individual with substantial experience in workforce
development and in workforce development management. The
Assistant Secretary shall also, to the maximum extent
possible, possess knowledge and have worked in or with the
State or local workforce investment system or have been a
member of the business community.
``(3) Functions.--In the performance of the functions of
the office, the Assistant Secretary shall be directly
responsible to the Secretary or the Deputy Secretary of
Labor, as determined by the Secretary. The functions of the
Assistant Secretary shall not be delegated to any officer not
directly responsible, both with respect to program operation
and administration, to the Assistant Secretary. Any reference
in this Act to duties to be carried out by the Assistant
Secretary shall be considered to be a reference to duties to
be carried out by the Secretary acting through the Assistant
Secretary.''.
SEC. 447. PROMPT ALLOCATION OF FUNDS.
Section 182 (29 U.S.C. 2932) is amended--
(1) in subsection (c)--
(A) by striking ``127 or''; and
(B) by striking ``, except that'' and all that follows and
inserting a period; and
(2) in subsection (e)--
(A) by striking ``sections 128 and 133'' and inserting
``section 133''; and
(B) by striking ``127 or''.
SEC. 448. FISCAL CONTROLS; SANCTIONS.
Section 184(a)(2) (29 U.S.C. 2934(a)(2)) is amended--
(1) by striking ``(A)'' and all that follows through
``Each'' and inserting ``Each''; and
(2) by striking subparagraph (B).
SEC. 449. REPORTS TO CONGRESS.
Section 185 (29 U.S.C. 2935) is amended--
(1) in subsection (c)--
(A) in paragraph (2), by striking ``and'' after the
semicolon;
(B) in paragraph (3), by striking the period and inserting
``; and''; and
(C) by adding at the end the following:
``(4) shall have the option to submit or disseminate
electronically any reports, records, plans, or other data
that are required to be collected or disseminated under this
title.''; and
(2) in subsection (e)(2), by inserting ``and the Secretary
shall submit to the Committee on Education and the Workforce
of the House of Representatives and the Committee on Health,
Education, Labor, and Pensions of the Senate,'' after
``Secretary,''.
SEC. 450. ADMINISTRATIVE PROVISIONS.
Section 189 (29 U.S.C. 2939) is amended--
(1) in subsection (g)--
(A) by amending paragraph (1) to read as follows:
``(1) In general.--Appropriations for any fiscal year for
programs and activities carried out under this title shall be
available for obligation only on the basis of a program year.
The program year shall begin on October 1 in the fiscal year
for which the appropriation is made.''; and
(B) in paragraph (2)--
(i) in the first sentence, by striking ``each State'' and
inserting ``each recipient (except as otherwise provided in
this paragraph)''; and
(ii) in the second sentence, by striking ``171 or'';
(2) in subsection (i)--
(A) by striking paragraphs (2) and (3);
(B) by redesignating paragraph (4) as paragraph (2);
(C) by amending paragraph (2)(A), as so redesignated--
(i) in clause (i), by striking ``; and'' and inserting a
period at the end;
(ii) by striking ``requirements of subparagraph (B)'' and
all that follows through ``any of the statutory or regulatory
requirements of subtitle B'' and inserting ``requirements of
subparagraph (B) or (D), any of the statutory or regulatory
requirements of subtitle B''; and
(iii) by striking clause (ii); and
(D) by adding at the end the following:
``(D) Expedited process for extending approved waivers to
additional states.--The Secretary may establish an expedited
procedure for the purpose of extending to additional States
the waiver of statutory or regulatory requirements that have
been approved for a State pursuant to a request under
subparagraph (B), in lieu of requiring the additional States
to meet the requirements of subparagraphs (B) and (C). Such
procedure shall ensure that the extension of such a waiver to
additional States is accompanied by appropriate conditions
relating to the implementation of such waiver.
``(E) External conditions.--The Secretary shall not require
or impose new or additional requirements, that are not
specified under this Act, on a State in exchange for
providing a waiver to the State or a local area in the State
under this paragraph.''.
SEC. 451. STATE LEGISLATIVE AUTHORITY.
Section 191(a) (29 U.S.C. 2941(a)) is amended--
(1) by striking ``consistent with the provisions of this
title'' and inserting ``consistent with State law and the
provisions of this title''; and
(2) by striking ``consistent with the terms and conditions
required under this title'' and inserting ``consistent with
State law and the terms and conditions required under this
title''.
SEC. 452. GENERAL PROGRAM REQUIREMENTS.
Section 195 (29 U.S.C. 2945) is amended--
(1) in paragraph (7), by inserting at the end the
following:
``(D) Funds received under a program by a public or private
nonprofit entity that are not described in subparagraph (B),
such as funds privately raised from philanthropic
foundations, businesses, or other private entities, shall not
be considered to be income under this title and shall not be
subject to the requirements of this paragraph.'';
(2) by striking paragraph (9);
(3) by redesignating paragraphs (10) through (13) as
paragraphs (9) through (12), respectively;
(4) by adding at the end the following new paragraphs:
``(13) Funds provided under this title shall not be used to
establish or operate stand-alone fee-for-service enterprises
that compete with private sector employment agencies within
the meaning of section 701(c) of the Civil Rights Act of 1964
(42 U.S.C. 2000e(c)), except that for purposes of this
paragraph, such an enterprise does not include a one-stop
center.
``(14) Any report required to be submitted to Congress, or
to a Committee of Congress, under this title shall be
submitted to both the chairmen and ranking minority members
of the Committee on Education and the Workforce of the House
of Representatives and the Committee on Health, Education,
Labor, and Pensions of the Senate.''.
[[Page S169]]
SEC. 453. FEDERAL AGENCY STAFF AND RESTRICTIONS ON POLITICAL
AND LOBBYING ACTIVITIES.
Subtitle E of title I (29 U.S.C. 2931 et seq.) is amended
by adding at the end the following new sections:
``SEC. 196. FEDERAL AGENCY STAFF.
``The Director of the Office of Management and Budget
shall--
``(1) not later than 60 days after the date of the
enactment of the SKILLS Act--
``(A) identify the number of Federal government employees
who, on the day before the date of enactment of the SKILLS
Act, worked on or administered each of the programs and
activities that were authorized under this Act or were
authorized under a provision listed in section 401 of the
SKILLS Act; and
``(B) identify the number of full-time equivalent employees
who on the day before that date of enactment, worked on or
administered each of the programs and activities described in
subparagraph (A), on functions for which the authorizing
provision has been repealed, or for which an amount has been
consolidated (if such employee is in a duplicate position),
on or after such date of enactment;
``(2) not later than 90 after such date of enactment,
publish the information described in paragraph (1) on the
Office of Management and Budget website; and
``(3) not later than 1 year after such date of enactment--
``(A) reduce the workforce of the Federal Government by the
number of full-time equivalent employees identified under
paragraph (1)(B); and
``(B) submit to Congress a report on how the Director
carried out the requirements of subparagraph (A).
``SEC. 197. RESTRICTIONS ON LOBBYING AND POLITICAL
ACTIVITIES.
``(a) Lobbying Restrictions.--
``(1) Publicity restrictions.--
``(A) In general.--Subject to subparagraph (B), no funds
provided under this Act shall be used or proposed for use,
for--
``(i) publicity or propaganda purposes; or
``(ii) the preparation, distribution, or use of any kit,
pamphlet, booklet, publication, electronic communication,
radio, television, or video presentation designed to support
or defeat the enactment of legislation before the Congress or
any State or local legislature or legislative body.
``(B) Exception.--Subparagraph (A) shall not apply to--
``(i) normal and recognized executive-legislative
relationships;
``(ii) the preparation, distribution, or use of the
materials described in subparagraph (A)(ii) in presentation
to the Congress or any State or local legislature or
legislative body (except that this subparagraph does not
apply with respect to such preparation, distribution, or use
in presentation to the executive branch of any State or local
government); or
``(iii) such preparation, distribution, or use of such
materials, that are designed to support or defeat any
proposed or pending regulation, administrative action, or
order issued by the executive branch of any State or local
government.
``(2) Salary payment restriction.--No funds provided under
this Act shall be used, or proposed for use, to pay the
salary or expenses of any grant or contract recipient, or
agent acting for such recipient, related to any activity
designed to influence the enactment or issuance of
legislation, appropriations, regulations, administrative
action, or an executive order proposed or pending before the
Congress or any State government, or a State or local
legislature or legislative body, other than for normal and
recognized executive-legislative relationships or
participation by an agency or officer of a State, local, or
tribal government in policymaking and administrative
processes within the executive branch of that government.
``(b) Political Restrictions.--
``(1) In general.--No funds received by a participant of a
program or activity under this Act shall be used for--
``(A) any partisan or nonpartisan political activity or any
other political activity associated with a candidate, or
contending faction or group, in an election for public or
party office; or
``(B) any activity to provide voters with transportation to
the polls or similar assistance in connection with any such
election.
``(2) Restriction on voter registration activities.--No
funds under this Act shall be used to conduct voter
registration activities.
``(3) Definition.--For the purposes of this subsection, the
term `participant' includes any State, local area, or
government, nonprofit, or for-profit entity receiving funds
under this Act.''.
CHAPTER 6--STATE UNIFIED PLAN
SEC. 456. STATE UNIFIED PLAN.
Section 501 (20 U.S.C. 9271) is amended--
(1) by amending subsection (a) to read as follows:
``(a) General Authority.--The Secretary shall receive and
approve State unified plans developed and submitted in
accordance with this section.'';
(2) by amending subsection (b) to read as follows:
``(b) State Unified Plan.--
``(1) In general.--A State may develop and submit to the
Secretary a State unified plan for 2 or more of the
activities or programs set forth in paragraph (2). The State
unified plan shall cover one or more of the activities or
programs set forth in subparagraphs (A) and (B) of paragraph
(2) and shall cover one or more of the activities or programs
set forth in subparagraphs (C) through (N) of paragraph (2).
``(2) Activities and programs.--For purposes of paragraph
(1), the term `activity or program' means any 1 of the
following 14 activities or programs:
``(A) Activities and programs authorized under title I.
``(B) Activities and programs authorized under title II.
``(C) Programs authorized under title I of the
Rehabilitation Act of 1973 (29 U.S.C. 710 et seq.).
``(D) Secondary career and technical education programs
authorized under the Carl D. Perkins Career and Technical
Education Act of 2006 (20 U.S.C. 2301 et seq.).
``(E) Postsecondary career and technical education programs
authorized under the Carl D. Perkins Career and Technical
Education Act of 2006.
``(F) Activities and programs authorized under title II of
the Trade Act of 1974 (19 U.S.C. 2251 et seq.).
``(G) Programs and activities authorized 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.).
``(H) Programs authorized under the Community Services
Block Grant Act (42 U.S.C. 9901 et seq.).
``(I) Programs authorized under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.).
``(J) Programs authorized under State unemployment
compensation laws (in accordance with applicable Federal
law).
``(K) Work programs authorized under section 6(o) of the
Food and Nutrition Act of 1977 (7 U.S.C. 2015(o)).
``(L) Activities and programs authorized under title I of
the Housing and Community Development Act of 1974 (42 U.S.C.
5301 et seq.).
``(M) Activities and programs authorized under the Public
Works and Economic Development Act of 1965 (42 U.S.C. 3121 et
seq.).
``(N) Activities authorized under chapter 41 of title 38,
United States Code.'';
(3) by amending subsection (d) to read as follows:
``(d) Approval.--
``(1) Jurisdiction.--In approving a State unified plan
under this section, the Secretary shall--
``(A) submit the portion of the State unified plan covering
an activity or program described in subsection (b)(2) to the
head of the Federal agency who exercises administrative
authority over the activity or program for the approval of
such portion by such Federal agency head; or
``(B) coordinate approval of the portion of the State
unified plan covering an activity or program described in
subsection (b)(2) with the head of the Federal agency who
exercises administrative authority over the activity or
program.
``(2) Timeline.--A State unified plan shall be considered
to be approved by the Secretary at the end of the 90-day
period beginning on the day the Secretary receives the plan,
unless the Secretary makes a written determination, during
the 90-day period, that details how the plan is not
consistent with the requirements of the Federal statute
authorizing an activity or program described in subsection
(b)(2) and covered under the plan or how the plan is not
consistent with the requirements of subsection (c)(3).
``(3) Scope of portion.--For purposes of paragraph (1), the
portion of the State unified plan covering an activity or
program shall be considered to include the plan described in
subsection (c)(3) and any proposal described in subsection
(e)(2), as that part and proposal relate to the activity or
program.''; and
(4) by adding at the end the following:
``(e) Additional Employment and Training Funds.--
``(1) Purpose.--It is the purpose of this subsection to
reduce inefficiencies in the administration of federally
funded State and local employment and training programs.
``(2) In general.--In developing a State unified plan for
the activities or programs described in subsection (b)(2),
and subject to paragraph (4) and to the State plan approval
process under subsection (d), a State may propose to
consolidate the amount, in whole or part, provided for the
activities or programs covered by the plan into the Workforce
Investment Fund under section 132(b) to improve the
administration of State and local employment and training
programs.
``(3) Requirements.--A State that has a State unified plan
approved under subsection (d) with a proposal for
consolidation under paragraph (2), and that is carrying out
such consolidation, shall--
``(A) in providing an activity or program for which an
amount is consolidated into the Workforce Investment Fund--
``(i) continue to meet the program requirements,
limitations, and prohibitions of any Federal statute
authorizing the activity or program; and
``(ii) meet the intent and purpose for the activity or
program; and
``(B) continue to make reservations and allotments under
subsections (a) and (b) of section 133.
``(4) Exceptions.--A State may not consolidate an amount
under paragraph (2) that is allocated to the State under--
``(A) the Carl D. Perkins Career and Technical Education
Act of 2006 (20 U.S.C. 2301 et seq.); or
[[Page S170]]
``(B) title I of the Rehabilitation Act of 1973 (29 U.S.C.
710 et seq.).''.
Subtitle B--Adult Education and Family Literacy Education
SEC. 461. AMENDMENT.
Title II (20 U.S.C. 9201 et seq.) is amended to read as
follows:
``TITLE II--ADULT EDUCATION AND FAMILY LITERACY EDUCATION
``SEC. 201. SHORT TITLE.
``This title may be cited as the `Adult Education and
Family Literacy Education Act'.
``SEC. 202. PURPOSE.
``It is the purpose of this title to provide instructional
opportunities for adults seeking to improve their literacy
skills, including their basic reading, writing, speaking, and
mathematics skills, and support States and local communities
in providing, on a voluntary basis, adult education and
family literacy education programs, in order to--
``(1) increase the literacy of adults, including the basic
reading, writing, speaking, and mathematics skills, to a
level of proficiency necessary for adults to obtain
employment and self-sufficiency and to successfully advance
in the workforce;
``(2) assist adults in the completion of a secondary school
education (or its equivalent) and the transition to a
postsecondary educational institution;
``(3) assist adults who are parents to enable them to
support the educational development of their children and
make informed choices regarding their children's education
including, through instruction in basic reading, writing,
speaking, and mathematics skills; and
``(4) assist adults who are not proficient in English in
improving their reading, writing, speaking, listening,
comprehension, and mathematics skills.
``SEC. 203. DEFINITIONS.
``In this title:
``(1) Adult education and family literacy education
programs.--The term `adult education and family literacy
education programs' means a sequence of academic instruction
and educational services below the postsecondary level that
increase an individual's ability to read, write, and speak
English and perform mathematical computations leading to a
level of proficiency equivalent to at least a secondary
school completion that is provided for individuals--
``(A) who are at least 16 years of age;
``(B) who are not enrolled or required to be enrolled in
secondary school under State law; and
``(C) who--
``(i) lack sufficient mastery of basic reading, writing,
speaking, and mathematics skills to enable the individuals to
function effectively in society;
``(ii) do not have a secondary school diploma or its
equivalent and have not achieved an equivalent level of
education; or
``(iii) are English learners.
``(2) Eligible agency.--The term `eligible agency'--
``(A) means the primary entity or agency in a State or an
outlying area responsible for administering or supervising
policy for adult education and family literacy education
programs in the State or outlying area, respectively,
consistent with the law of the State or outlying area,
respectively; and
``(B) may be the State educational agency, the State agency
responsible for administering workforce investment
activities, or the State agency responsible for administering
community or technical colleges.
``(3) Eligible provider.--The term `eligible provider'
means an organization of demonstrated effectiveness that is--
``(A) a local educational agency;
``(B) a community-based or faith-based organization;
``(C) a volunteer literacy organization;
``(D) an institution of higher education;
``(E) a public or private educational agency;
``(F) a library;
``(G) a public housing authority;
``(H) an institution that is not described in any of
subparagraphs (A) through (G) and has the ability to provide
adult education, basic skills, and family literacy education
programs to adults and families; or
``(I) a consortium of the agencies, organizations,
institutions, libraries, or authorities described in any of
subparagraphs (A) through (H).
``(4) English language acquisition program.--The term
`English language acquisition program' means a program of
instruction--
``(A) designed to help English learners achieve competence
in reading, writing, speaking, and comprehension of the
English language; and
``(B) that may lead to--
``(i) attainment of a secondary school diploma or its
recognized equivalent;
``(ii) transition to success in postsecondary education and
training; and
``(iii) employment or career advancement.
``(5) Family literacy education program.--The term `family
literacy education program' means an educational program
that--
``(A) assists parents and students, on a voluntary basis,
in achieving the purpose of this title as described in
section 202; and
``(B) is of sufficient intensity in terms of hours and of
sufficient quality to make sustainable changes in a family,
is evidence-based, and, for the purpose of substantially
increasing the ability of parents and children to read,
write, and speak English, integrates--
``(i) interactive literacy activities between parents and
their children;
``(ii) training for parents regarding how to be the primary
teacher for their children and full partners in the education
of their children;
``(iii) parent literacy training that leads to economic
self-sufficiency; and
``(iv) an age-appropriate education to prepare children for
success in school and life experiences.
``(6) Governor.--The term `Governor' means the chief
executive officer of a State or outlying area.
``(7) Individual with a disability.--
``(A) In general.--The term `individual with a disability'
means an individual with any disability (as defined in
section 3 of the Americans with Disabilities Act of 1990).
``(B) Individuals with disabilities.--The term `individuals
with disabilities' means more than one individual with a
disability.
``(8) English learner.--The term `English learner' means an
adult or out-of-school youth who has limited ability in
reading, writing, speaking, or understanding the English
language, and--
``(A) whose native language is a language other than
English; or
``(B) who lives in a family or community environment where
a language other than English is the dominant language.
``(9) Integrated education and training.--The term
`integrated education and training' means services that
provide adult education and literacy activities contextually
and concurrently with workforce preparation activities and
workforce training for a specific occupation or occupational
cluster. Such services may include offering adult education
services concurrent with postsecondary education and
training, including through co-instruction.
``(10) Institution of higher education.--The term
`institution of higher education' has the meaning given the
term in section 101 of the Higher Education Act of 1965.
``(11) Literacy.--The term `literacy' means an individual's
ability to read, write, and speak in English, compute, and
solve problems at a level of proficiency necessary to obtain
employment and to successfully make the transition to
postsecondary education.
``(12) Local educational agency.--The term `local
educational agency' has the meaning given the term in section
9101 of the Elementary and Secondary Education Act of 1965.
``(13) Outlying area.--The term `outlying area' has the
meaning given the term in section 101 of this Act.
``(14) Postsecondary educational institution.--The term
`postsecondary educational institution' means--
``(A) an institution of higher education that provides not
less than a 2-year program of instruction that is acceptable
for credit toward a bachelor's degree;
``(B) a tribally controlled community college; or
``(C) a nonprofit educational institution offering
certificate or apprenticeship programs at the postsecondary
level.
``(15) Secretary.--The term `Secretary' means the Secretary
of Education.
``(16) State.--The term `State' means each of the several
States of the United States, the District of Columbia, and
the Commonwealth of Puerto Rico.
``(17) State educational agency.--The term `State
educational agency' has the meaning given the term in section
9101 of the Elementary and Secondary Education Act of 1965.
``(18) Workplace literacy program.--The term `workplace
literacy program' means an educational program that is
offered in collaboration between eligible providers and
employers or employee organizations for the purpose of
improving the productivity of the workforce through the
improvement of reading, writing, speaking, and mathematics
skills.
``SEC. 204. HOME SCHOOLS.
``Nothing in this title shall be construed to affect home
schools, whether or not a home school is treated as a home
school or a private school under State law, or to compel a
parent engaged in home schooling to participate in adult
education and family literacy education activities under this
title.
``SEC. 205. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this
title, $606,294,933 for fiscal year 2015 and for each of the
6 succeeding fiscal years.
``Subtitle A--Federal Provisions
``SEC. 211. RESERVATION OF FUNDS; GRANTS TO ELIGIBLE
AGENCIES; ALLOTMENTS.
``(a) Reservation of Funds.--From the sums appropriated
under section 205 for a fiscal year, the Secretary shall
reserve 2.0 percent to carry out section 242.
``(b) Grants to Eligible Agencies.--
``(1) In general.--From the sums appropriated under section
205 and not reserved under subsection (a) for a fiscal year,
the Secretary shall award a grant to each eligible agency
having a State plan approved under section 224 in an amount
equal to the sum of the initial allotment under subsection
(c)(1) and the additional allotment under subsection (c)(2)
for the eligible agency for the fiscal year, subject to
subsections (f) and (g).
``(2) Purpose of grants.--The Secretary may award a grant
under paragraph (1) only
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if the eligible agency involved agrees to expend the grant in
accordance with the provisions of this title.
``(c) Allotments.--
``(1) Initial allotments.--From the sums appropriated under
section 205 and not reserved under subsection (a) for a
fiscal year, the Secretary shall allot to each eligible
agency having a State plan approved under section 224--
``(A) $100,000, in the case of an eligible agency serving
an outlying area; and
``(B) $250,000, in the case of any other eligible agency.
``(2) Additional allotments.--From the sums appropriated
under section 205, not reserved under subsection (a), and not
allotted under paragraph (1), for a fiscal year, the
Secretary shall allot to each eligible agency that receives
an initial allotment under paragraph (1) an additional amount
that bears the same relationship to such sums as the number
of qualifying adults in the State or outlying area served by
the eligible agency bears to the number of such adults in all
States and outlying areas.
``(d) Qualifying Adult.--For the purpose of subsection
(c)(2), the term `qualifying adult' means an adult who--
``(1) is at least 16 years of age;
``(2) is beyond the age of compulsory school attendance
under the law of the State or outlying area;
``(3) does not have a secondary school diploma or its
recognized equivalent; and
``(4) is not enrolled in secondary school.
``(e) Special Rule.--
``(1) In general.--From amounts made available under
subsection (c) for the Republic of Palau, the Secretary shall
award grants to Guam, American Samoa, the Commonwealth of the
Northern Mariana Islands, or the Republic of Palau to carry
out activities described in this title in accordance with the
provisions of this title as determined by the Secretary.
``(2) Termination of eligibility.--Notwithstanding any
other provision of law, the Republic of Palau shall be
eligible to receive a grant under this title until an
agreement for the extension of United States education
assistance under the Compact of Free Association for the
Republic of Palau becomes effective.
``(f) Hold-Harmless Provisions.--
``(1) In general.--Notwithstanding subsection (c) and
subject to paragraph (2), for--
``(A) fiscal year 2015, no eligible agency shall receive an
allotment under this title that is less than 90 percent of
the allotment the eligible agency received for fiscal year
2012 under this title; and
``(B) fiscal year 2016 and each succeeding fiscal year, no
eligible agency shall receive an allotment under this title
that is less than 90 percent of the allotment the eligible
agency received for the preceding fiscal year under this
title.
``(2) Ratable reduction.--If, for any fiscal year the
amount available for allotment under this title is
insufficient to satisfy the provisions of paragraph (1), the
Secretary shall ratable reduce the payments to all eligible
agencies, as necessary.
``(g) Reallotment.--The portion of any eligible agency's
allotment under this title for a fiscal year that the
Secretary determines will not be required for the period such
allotment is available for carrying out activities under this
title, shall be available for reallotment from time to time,
on such dates during such period as the Secretary shall fix,
to other eligible agencies in proportion to the original
allotments to such agencies under this title for such year.
``SEC. 212. PERFORMANCE ACCOUNTABILITY SYSTEM.
``Programs and activities authorized under this title are
subject to the performance accountability provisions
described in paragraph (2)(A) and (3) of section 136(b) and
may, at a State's discretion, include additional indicators
identified in the State plan approved under section 224.
``Subtitle B--State Provisions
``SEC. 221. STATE ADMINISTRATION.
``Each eligible agency shall be responsible for the
following activities under this title:
``(1) The development, submission, implementation, and
monitoring of the State plan.
``(2) Consultation with other appropriate agencies, groups,
and individuals that are involved in, or interested in, the
development and implementation of activities assisted under
this title.
``(3) Coordination and avoidance of duplication with other
Federal and State education, training, corrections, public
housing, and social service programs.
``SEC. 222. STATE DISTRIBUTION OF FUNDS; MATCHING
REQUIREMENT.
``(a) State Distribution of Funds.--Each eligible agency
receiving a grant under this title for a fiscal year--
``(1) shall use not less than 82.5 percent of the grant
funds to award grants and contracts under section 231 and to
carry out section 225, of which not more than 10 percent of
such amount shall be available to carry out section 225;
``(2) shall use not more than 12.5 percent of the grant
funds to carry out State leadership activities under section
223; and
``(3) shall use not more than 5 percent of the grant funds,
or $65,000, whichever is greater, for the administrative
expenses of the eligible agency.
``(b) Matching Requirement.--
``(1) In general.--In order to receive a grant from the
Secretary under section 211(b), each eligible agency shall
provide, for the costs to be incurred by the eligible agency
in carrying out the adult education and family literacy
education programs for which the grant is awarded, a non-
Federal contribution in an amount that is not less than--
``(A) in the case of an eligible agency serving an outlying
area, 12 percent of the total amount of funds expended for
adult education and family literacy education programs in the
outlying area, except that the Secretary may decrease the
amount of funds required under this subparagraph for an
eligible agency; and
``(B) in the case of an eligible agency serving a State, 25
percent of the total amount of funds expended for adult
education and family literacy education programs in the
State.
``(2) Non-federal contribution.--An eligible agency's non-
Federal contribution required under paragraph (1) may be
provided in cash or in kind, fairly evaluated, and shall
include only non-Federal funds that are used for adult
education and family literacy education programs in a manner
that is consistent with the purpose of this title.
``SEC. 223. STATE LEADERSHIP ACTIVITIES.
``(a) In General.--Each eligible agency may use funds made
available under section 222(a)(2) for any of the following
adult education and family literacy education programs:
``(1) The establishment or operation of professional
development programs to improve the quality of instruction
provided pursuant to local activities required under section
231(b).
``(2) The provision of technical assistance to eligible
providers of adult education and family literacy education
programs, including for the development and dissemination of
evidence based research instructional practices in reading,
writing, speaking, mathematics, and English language
acquisition programs.
``(3) The provision of assistance to eligible providers in
developing, implementing, and reporting measurable progress
in achieving the objectives of this title.
``(4) The monitoring and evaluation of the quality of, and
the improvement in, adult education and literacy activities.
``(5) The provision of technology assistance, including
staff training, to eligible providers of adult education and
family literacy education programs, including distance
education activities, to enable the eligible providers to
improve the quality of such activities.
``(6) The development and implementation of technology
applications or distance education, including professional
development to support the use of instructional technology.
``(7) Coordination with other public programs, including
programs under title I of this Act, and other welfare-to-
work, workforce development, and job training programs.
``(8) Coordination with existing support services, such as
transportation, child care, and other assistance designed to
increase rates of enrollment in, and successful completion
of, adult education and family literacy education programs,
for adults enrolled in such activities.
``(9) The development and implementation of a system to
assist in the transition from adult basic education to
postsecondary education.
``(10) Activities to promote workplace literacy programs.
``(11) Other activities of statewide significance,
including assisting eligible providers in achieving progress
in improving the skill levels of adults who participate in
programs under this title.
``(12) Integration of literacy, instructional, and
occupational skill training and promotion of linkages with
employees.
``(b) Coordination.--In carrying out this section, eligible
agencies shall coordinate where possible, and avoid
duplicating efforts, in order to maximize the impact of the
activities described in subsection (a).
``(c) State-Imposed Requirements.--Whenever a State or
outlying area implements any rule or policy relating to the
administration or operation of a program authorized under
this title that has the effect of imposing a requirement that
is not imposed under Federal law (including any rule or
policy based on a State or outlying area interpretation of a
Federal statute, regulation, or guideline), the State or
outlying area shall identify, to eligible providers, the rule
or policy as being imposed by the State or outlying area.
``SEC. 224. STATE PLAN.
``(a) 3-Year Plans.--
``(1) In general.--Each eligible agency desiring a grant
under this title for any fiscal year shall submit to, or have
on file with, the Secretary a 3-year State plan.
``(2) State unified plan.--The eligible agency may submit
the State plan as part of a State unified plan described in
section 501.
``(b) Plan Contents.--The eligible agency shall include in
the State plan or any revisions to the State plan--
``(1) an objective assessment of the needs of individuals
in the State or outlying area for adult education and family
literacy education programs, including individuals most in
need or hardest to serve;
``(2) a description of the adult education and family
literacy education programs that will be carried out with
funds received under this title;
``(3) an assurance that the funds received under this title
will not be expended for any purpose other than for
activities under this title;
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``(4) a description of how the eligible agency will
annually evaluate and measure the effectiveness and
improvement of the adult education and family literacy
education programs funded under this title using the
indicators of performance described in section 136, including
how the eligible agency will conduct such annual evaluations
and measures for each grant received under this title;
``(5) a description of how the eligible agency will fund
local activities in accordance with the measurable goals
described in section 231(d);
``(6) an assurance that the eligible agency will expend the
funds under this title only in a manner consistent with
fiscal requirements in section 241;
``(7) a description of the process that will be used for
public participation and comment with respect to the State
plan, which--
``(A) shall include consultation with the State workforce
investment board, the State board responsible for
administering community or technical colleges, the Governor,
the State educational agency, the State board or agency
responsible for administering block grants for temporary
assistance to needy families under title IV of the Social
Security Act, the State council on disabilities, the State
vocational rehabilitation agency, and other State agencies
that promote the improvement of adult education and family
literacy education programs, and direct providers of such
programs; and
``(B) may include consultation with the State agency on
higher education, institutions responsible for professional
development of adult education and family literacy education
programs instructors, representatives of business and
industry, refugee assistance programs, and faith-based
organizations;
``(8) a description of the eligible agency's strategies for
serving populations that include, at a minimum--
``(A) low-income individuals;
``(B) individuals with disabilities;
``(C) the unemployed;
``(D) the underemployed; and
``(E) individuals with multiple barriers to educational
enhancement, including English learners;
``(9) a description of how the adult education and family
literacy education programs that will be carried out with any
funds received under this title will be integrated with other
adult education, career development, and employment and
training activities in the State or outlying area served by
the eligible agency;
``(10) a description of the steps the eligible agency will
take to ensure direct and equitable access, as required in
section 231(c)(1), including--
``(A) how the State will build the capacity of community-
based and faith-based organizations to provide adult
education and family literacy education programs; and
``(B) how the State will increase the participation of
business and industry in adult education and family literacy
education programs;
``(11) an assessment of the adequacy of the system of the
State or outlying area to ensure teacher quality and a
description of how the State or outlying area will use funds
received under this subtitle to improve teacher quality,
including evidence-based professional development to improve
instruction; and
``(12) a description of how the eligible agency will
consult with any State agency responsible for postsecondary
education to develop adult education that prepares students
to enter postsecondary education without the need for
remediation upon completion of secondary school equivalency
programs.
``(c) Plan Revisions.--When changes in conditions or other
factors require substantial revisions to an approved State
plan, the eligible agency shall submit the revisions of the
State plan to the Secretary.
``(d) Consultation.--The eligible agency shall--
``(1) submit the State plan, and any revisions to the State
plan, to the Governor, the chief State school officer, or the
State officer responsible for administering community or
technical colleges, or outlying area for review and comment;
and
``(2) ensure that any comments regarding the State plan by
the Governor, the chief State school officer, or the State
officer responsible for administering community or technical
colleges, and any revision to the State plan, are submitted
to the Secretary.
``(e) Plan Approval.--The Secretary shall--
``(1) approve a State plan within 90 days after receiving
the plan unless the Secretary makes a written determination
within 30 days after receiving the plan that the plan does
not meet the requirements of this section or is inconsistent
with specific provisions of this subtitle; and
``(2) not finally disapprove of a State plan before
offering the eligible agency the opportunity, prior to the
expiration of the 30-day period beginning on the date on
which the eligible agency received the written determination
described in paragraph (1), to review the plan and providing
technical assistance in order to assist the eligible agency
in meeting the requirements of this subtitle.
``SEC. 225. PROGRAMS FOR CORRECTIONS EDUCATION AND OTHER
INSTITUTIONALIZED INDIVIDUALS.
``(a) Program Authorized.--From funds made available under
section 222(a)(1) for a fiscal year, each eligible agency
shall carry out corrections education and education for other
institutionalized individuals.
``(b) Uses of Funds.--The funds described in subsection (a)
shall be used for the cost of educational programs for
criminal offenders in correctional institutions and for other
institutionalized individuals, including academic programs
for--
``(1) basic skills education;
``(2) special education programs as determined by the
eligible agency;
``(3) reading, writing, speaking, and mathematics programs;
``(4) secondary school credit or diploma programs or their
recognized equivalent; and
``(5) integrated education and training.
``(c) Priority.--Each eligible agency that is using
assistance provided under this section to carry out a program
for criminal offenders within a correctional institution
shall give priority to serving individuals who are likely to
leave the correctional institution within 5 years of
participation in the program.
``(d) Definitions.--In this section:
``(1) Correctional institution.--The term `correctional
institution' means any--
``(A) prison;
``(B) jail;
``(C) reformatory;
``(D) work farm;
``(E) detention center; or
``(F) halfway house, community-based rehabilitation center,
or any other similar institution designed for the confinement
or rehabilitation of criminal offenders.
``(2) Criminal offender.--The term `criminal offender'
means any individual who is charged with, or convicted of,
any criminal offense.
``Subtitle C--Local Provisions
``SEC. 231. GRANTS AND CONTRACTS FOR ELIGIBLE PROVIDERS.
``(a) Grants and Contracts.--From grant funds made
available under section 222(a)(1), each eligible agency shall
award multi-year grants or contracts, on a competitive basis,
to eligible providers within the State or outlying area that
meet the conditions and requirements of this title to enable
the eligible providers to develop, implement, and improve
adult education and family literacy education programs within
the State.
``(b) Local Activities.--The eligible agency shall require
eligible providers receiving a grant or contract under
subsection (a) to establish or operate--
``(1) programs that provide adult education and literacy
activities;
``(2) programs that provide integrated education and
training activities; or
``(3) credit-bearing postsecondary coursework.
``(c) Direct and Equitable Access; Same Process.--Each
eligible agency receiving funds under this title shall ensure
that--
``(1) all eligible providers have direct and equitable
access to apply for grants or contracts under this section;
and
``(2) the same grant or contract announcement process and
application process is used for all eligible providers in the
State or outlying area.
``(d) Measurable Goals.--The eligible agency shall require
eligible providers receiving a grant or contract under
subsection (a) to demonstrate--
``(1) the eligible provider's measurable goals for
participant outcomes to be achieved annually on the core
indicators of performance described in section 136(b)(2)(A);
``(2) the past effectiveness of the eligible provider in
improving the basic academic skills of adults and, for
eligible providers receiving grants in the prior year, the
success of the eligible provider receiving funding under this
title in exceeding its performance goals in the prior year;
``(3) the commitment of the eligible provider to serve
individuals in the community who are the most in need of
basic academic skills instruction services, including
individuals with disabilities and individuals who are low-
income or have minimal reading, writing, speaking, and
mathematics skills, or are English learners;
``(4) the program is of sufficient intensity and quality
for participants to achieve substantial learning gains;
``(5) educational practices are evidence-based;
``(6) the activities of the eligible provider effectively
employ advances in technology, and delivery systems including
distance education;
``(7) the activities provide instruction in real-life
contexts, including integrated education and training when
appropriate, to ensure that an individual has the skills
needed to compete in the workplace and exercise the rights
and responsibilities of citizenship;
``(8) the activities are staffed by well-trained
instructors, counselors, and administrators who meet minimum
qualifications established by the State;
``(9) the activities are coordinated with other available
resources in the community, such as through strong links with
elementary schools and secondary schools, postsecondary
educational institutions, local workforce investment boards,
one-stop centers, job training programs, community-based and
faith-based organizations, and social service agencies;
``(10) the activities offer flexible schedules and support
services (such as child care and transportation) that are
necessary to enable individuals, including individuals with
disabilities or other special needs, to attend and complete
programs;
``(11) the activities include a high-quality information
management system that has
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the capacity to report measurable participant outcomes
(consistent with section 136) and to monitor program
performance;
``(12) the local communities have a demonstrated need for
additional English language acquisition programs, and
integrated education and training programs;
``(13) the capacity of the eligible provider to produce
valid information on performance results, including
enrollments and measurable participant outcomes;
``(14) adult education and family literacy education
programs offer rigorous reading, writing, speaking, and
mathematics content that are evidence based; and
``(15) applications of technology, and services to be
provided by the eligible providers, are of sufficient
intensity and duration to increase the amount and quality of
learning and lead to measurable learning gains within
specified time periods.
``(e) Special Rule.--Eligible providers may use grant funds
under this title to serve children participating in family
literacy programs assisted under this part, provided that
other sources of funds available to provide similar services
for such children are used first.
``SEC. 232. LOCAL APPLICATION.
``Each eligible provider desiring a grant or contract under
this title shall submit an application to the eligible agency
containing such information and assurances as the eligible
agency may require, including--
``(1) a description of how funds awarded under this title
will be spent consistent with the requirements of this title;
``(2) a description of any cooperative arrangements the
eligible provider has with other agencies, institutions, or
organizations for the delivery of adult education and family
literacy education programs; and
``(3) each of the demonstrations required by section
231(d).
``SEC. 233. LOCAL ADMINISTRATIVE COST LIMITS.
``(a) In General.--Subject to subsection (b), of the amount
that is made available under this title to an eligible
provider--
``(1) at least 95 percent shall be expended for carrying
out adult education and family literacy education programs;
and
``(2) the remaining amount shall be used for planning,
administration, personnel and professional development,
development of measurable goals in reading, writing,
speaking, and mathematics, and interagency coordination.
``(b) Special Rule.--In cases where the cost limits
described in subsection (a) are too restrictive to allow for
adequate planning, administration, personnel development, and
interagency coordination, the eligible provider may negotiate
with the eligible agency in order to determine an adequate
level of funds to be used for noninstructional purposes.
``Subtitle D--General Provisions
``SEC. 241. ADMINISTRATIVE PROVISIONS.
``Funds made available for adult education and family
literacy education programs under this title shall supplement
and not supplant other State or local public funds expended
for adult education and family literacy education programs.
``SEC. 242. NATIONAL ACTIVITIES.
``The Secretary shall establish and carry out a program of
national activities that may include the following:
``(1) Providing technical assistance to eligible entities,
on request, to--
``(A) improve their fiscal management, research-based
instruction, and reporting requirements to carry out the
requirements of this title;
``(B) improve its performance on the core indicators of
performance described in section 136;
``(C) provide adult education professional development; and
``(D) use distance education and improve the application of
technology in the classroom, including instruction in English
language acquisition for English learners.
``(2) Providing for the conduct of research on national
literacy basic skill acquisition levels among adults,
including the number of adult English learners functioning at
different levels of reading proficiency.
``(3) Improving the coordination, efficiency, and
effectiveness of adult education and workforce development
services at the national, State, and local levels.
``(4) Determining how participation in adult education,
English language acquisition, and family literacy education
programs prepares individuals for entry into and success in
postsecondary education and employment, and in the case of
prison-based services, the effect on recidivism.
``(5) Evaluating how different types of providers,
including community and faith-based organizations or private
for-profit agencies measurably improve the skills of
participants in adult education, English language
acquisition, and family literacy education programs.
``(6) Identifying model integrated basic and workplace
skills education programs, including programs for English
learners coordinated literacy and employment services, and
effective strategies for serving adults with disabilities.
``(7) Initiating other activities designed to improve the
measurable quality and effectiveness of adult education,
English language acquisition, and family literacy education
programs nationwide.''.
Subtitle C--Amendments to the Wagner-Peyser Act
SEC. 466. AMENDMENTS TO THE WAGNER-PEYSER ACT.
Section 15 of the Wagner-Peyser Act (29 U.S.C. 49l-2) is
amended to read as follows:
``SEC. 15. WORKFORCE AND LABOR MARKET INFORMATION SYSTEM.
``(a) System Content.--
``(1) In general.--The Secretary of Labor (referred to in
this section as the `Secretary'), in accordance with the
provisions of this section, shall oversee the development,
maintenance, and continuous improvement of a nationwide
workforce and labor market information system that includes--
``(A) statistical data from cooperative statistical survey
and projection programs and data from administrative
reporting systems that, taken together, enumerate, estimate,
and project employment opportunities and conditions at
national, State, and local levels in a timely manner,
including statistics on--
``(i) employment and unemployment status of national,
State, and local populations, including self-employed, part-
time, and seasonal workers;
``(ii) industrial distribution of occupations, as well as
current and projected employment opportunities, wages,
benefits (where data is available), and skill trends by
occupation and industry, with particular attention paid to
State and local conditions;
``(iii) the incidence of, industrial and geographical
location of, and number of workers displaced by, permanent
layoffs and plant closings; and
``(iv) employment and earnings information maintained in a
longitudinal manner to be used for research and program
evaluation;
``(B) information on State and local employment
opportunities, and other appropriate statistical data related
to labor market dynamics, which--
``(i) shall be current and comprehensive;
``(ii) shall meet the needs identified through the
consultations described in subparagraphs (C) and (D) of
subsection (e)(1); and
``(iii) shall meet the needs for the information identified
in section 121(e)(1)(E) of the Workforce Investment Act of
1998 (29 U.S.C. 2841(e)(1)(E));
``(C) technical standards (which the Secretary shall
publish annually) for data and information described in
subparagraphs (A) and (B) that, at a minimum, meet the
criteria of chapter 35 of title 44, United States Code;
``(D) procedures to ensure compatibility and additivity of
the data and information described in subparagraphs (A) and
(B) from national, State, and local levels;
``(E) procedures to support standardization and aggregation
of data from administrative reporting systems described in
subparagraph (A) of employment-related programs;
``(F) analysis of data and information described in
subparagraphs (A) and (B) for uses such as--
``(i) national, State, and local policymaking;
``(ii) implementation of Federal policies (including
allocation formulas);
``(iii) program planning and evaluation; and
``(iv) researching labor market dynamics;
``(G) wide dissemination of such data, information, and
analysis in a user-friendly manner and voluntary technical
standards for dissemination mechanisms; and
``(H) programs of--
``(i) training for effective data dissemination;
``(ii) research and demonstration; and
``(iii) programs and technical assistance.
``(2) Information to be confidential.--
``(A) In general.--No officer or employee of the Federal
Government or agent of the Federal Government may--
``(i) use any submission that is furnished for exclusively
statistical purposes under the provisions of this section for
any purpose other than the statistical purposes for which the
submission is furnished;
``(ii) disclose to the public any publication or media
transmittal of the data contained in the submission described
in clause (i) that permits information concerning an
individual subject to be reasonably inferred by either direct
or indirect means; or
``(iii) permit anyone other than a sworn officer, employee,
or agent of any Federal department or agency, or a contractor
(including an employee of a contractor) of such department or
agency, to examine an individual submission described in
clause (i),
without the consent of the individual, agency, or other
person who is the subject of the submission or provides that
submission.
``(B) Immunity from legal process.--Any submission
(including any data derived from the submission) that is
collected and retained by a Federal department or agency, or
an officer, employee, agent, or contractor of such a
department or agency, for exclusively statistical purposes
under this section shall be immune from the legal process and
shall not, without the consent of the individual, agency, or
other person who is the subject of the submission or provides
that submission, be admitted as evidence or used for any
purpose in any action, suit, or other judicial or
administrative proceeding.
``(C) Rule of construction.--Nothing in this section shall
be construed to provide immunity from the legal process for
such submission (including any data derived from the
submission) if the submission is in the possession of any
person, agency, or entity other than the Federal Government
or an officer, employee, agent, or contractor of the Federal
Government, or if the submission is
[[Page S174]]
independently collected, retained, or produced for purposes
other than the purposes of this Act.
``(b) System Responsibilities.--
``(1) In general.--The workforce and labor market
information system described in subsection (a) shall be
planned, administered, overseen, and evaluated through a
cooperative governance structure involving the Federal
Government and States.
``(2) Duties.--The Secretary, with respect to data
collection, analysis, and dissemination of workforce and
labor market information for the system, shall carry out the
following duties:
``(A) Assign responsibilities within the Department of
Labor for elements of the workforce and labor market
information system described in subsection (a) to ensure that
all statistical and administrative data collected is
consistent with appropriate Bureau of Labor Statistics
standards and definitions.
``(B) Actively seek the cooperation of other Federal
agencies to establish and maintain mechanisms for ensuring
complementarity and nonduplication in the development and
operation of statistical and administrative data collection
activities.
``(C) Eliminate gaps and duplication in statistical
undertakings, with the systemization of wage surveys as an
early priority.
``(D) In collaboration with the Bureau of Labor Statistics
and States, develop and maintain the elements of the
workforce and labor market information system described in
subsection (a), including the development of consistent
procedures and definitions for use by the States in
collecting the data and information described in
subparagraphs (A) and (B) of subsection (a)(1).
``(E) Establish procedures for the system to ensure that--
``(i) such data and information are timely;
``(ii) paperwork and reporting for the system are reduced
to a minimum; and
``(iii) States and localities are fully involved in the
development and continuous improvement of the system at all
levels.
``(c) National Electronic Tools To Provide Services.--The
Secretary is authorized to assist in the development of
national electronic tools that may be used to facilitate the
delivery of work ready services described in section
134(c)(2) of the Workforce Investment Act of 1998 (29 U.S.C.
2864(c)(2)) and to provide workforce and labor market
information to individuals through the one-stop delivery
systems described in section 121 and through other
appropriate delivery systems.
``(d) Coordination With the States.--
``(1) In general.--The Secretary, working through the
Bureau of Labor Statistics and the Employment and Training
Administration, shall regularly consult with representatives
of State agencies carrying out workforce information
activities regarding strategies for improving the workforce
and labor market information system.
``(2) Formal consultations.--At least twice each year, the
Secretary, working through the Bureau of Labor Statistics,
shall conduct formal consultations regarding programs carried
out by the Bureau of Labor Statistics with representatives of
each of the Federal regions of the Bureau of Labor
Statistics, elected (pursuant to a process established by the
Secretary) from the State directors affiliated with State
agencies that perform the duties described in subsection
(e)(1).
``(e) State Responsibilities.--
``(1) In general.--In order to receive Federal financial
assistance under this section, the Governor of a State
shall--
``(A) be responsible for the management of the portions of
the workforce and labor market information system described
in subsection (a) that comprise a statewide workforce and
labor market information system;
``(B) establish a process for the oversight of such system;
``(C) consult with State and local employers, participants,
and local workforce investment boards about the labor market
relevance of the data to be collected and disseminated
through the statewide workforce and labor market information
system;
``(D) consult with State educational agencies and local
educational agencies concerning the provision of workforce
and labor market information in order to meet the needs of
secondary school and postsecondary school students who seek
such information;
``(E) collect and disseminate for the system, on behalf of
the State and localities in the State, the information and
data described in subparagraphs (A) and (B) of subsection
(a)(1);
``(F) maintain and continuously improve the statewide
workforce and labor market information system in accordance
with this section;
``(G) perform contract and grant responsibilities for data
collection, analysis, and dissemination for such system;
``(H) conduct such other data collection, analysis, and
dissemination activities as will ensure an effective
statewide workforce and labor market information system;
``(I) actively seek the participation of other State and
local agencies in data collection, analysis, and
dissemination activities in order to ensure complementarity,
compatibility, and usefulness of data;
``(J) participate in the development of, and submit to the
Secretary, an annual plan to carry out the requirements and
authorities of this subsection; and
``(K) utilize the quarterly records described in section
136(f)(2) of the Workforce Investment Act of 1998 (29 U.S.C.
2871(f)(2)) to assist the State and other States in measuring
State progress on State performance measures.
``(2) Rule of construction.--Nothing in this section shall
be construed as limiting the ability of a Governor to conduct
additional data collection, analysis, and dissemination
activities with State funds or with Federal funds from
sources other than this section.
``(f) Nonduplication Requirement.--None of the functions
and activities carried out pursuant to this section shall
duplicate the functions and activities carried out under the
Carl D. Perkins Career and Technical Education Act of 2006
(20 U.S.C. 2301 et seq.).
``(g) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section
$63,473,000 for fiscal year 2015 and each of the 6 succeeding
fiscal years.''.
Subtitle D--Repeals and Conforming Amendments
SEC. 471. REPEALS.
The following provisions are repealed:
(1) Chapter 4 of subtitle B of title I, and sections 123,
155, 166, 167, 168, 169, 171, 173, 173A, 174, 192, 194, 502,
503, and 506 of the Workforce Investment Act of 1998, as in
effect on the day before the date of enactment of the SKILLS
Act.
(2) Title V of the Older Americans Act of 1965 (42 U.S.C.
3056 et seq.).
(3) Sections 1 through 14 of the Wagner-Peyser Act (29
U.S.C. 49 et seq.).
(4) The Twenty-First Century Workforce Commission Act (29
U.S.C. 2701 note).
(5) Public Law 91-378, 16 U.S.C. 1701 et seq. (popularly
known as the ``Youth Conservation Corps Act of 1970'').
(6) Section 821 of the Higher Education Amendments of 1998
(20 U.S.C. 1151).
(7) The Women in Apprenticeship and Nontraditional
Occupations Act (29 U.S.C. 2501 et seq.).
(8) Sections 4103A and 4104 of title 38, United States
Code.
SEC. 472. AMENDMENT TO THE COMPREHENSIVE ENVIRONMENTAL
RESPONSE, COMPENSATION, AND LIABILITY ACT OF
1980.
Section 104(k)(6)(A) of the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980 (42 U.S.C.
9604(k)(6)(A)) is amended by striking ``training, research,
and'' and inserting ``research and''.
(a) Amendments to the Food and Nutrition Act of 2008.--
(1) Definition.--Section 3(t) of the Food and Nutrition Act
of 2008 (7 U.S.C. 2012(t)) is amended--
(A) by striking ``means (1) the agency'' and inserting the
following: ``means--
``(A) the agency'';
(B) by striking ``programs, and (2) the tribal'' and
inserting the following: ``programs;
``(B) the tribal'';
(C) by striking ``this Act.'' and inserting the following:
``this Act; and
``(C) in the context of employment and training activities
under section 6(d)(4), a State board as defined in section
101 of the Workforce Investment Act of 1998 (29 U.S.C.
2801).''.
(2) Eligible households.--Section 5 of the Food and
Nutrition Act of 2008 (7 U.S.C. 2014) is amended--
(A) in subsection (d)(14) by striking ``section
6(d)(4)(I)'' and inserting ``section 6(d)(4)(C)'', and
(B) in subsection (g)(3), in the first sentence, by
striking ``constitutes adequate participation in an
employment and training program under section 6(d)'' and
inserting ``allows the individual to participate in
employment and training activities under section 6(d)(4)''.
(3) Eligibility disqualifications.--Section 6(d)(4) of the
Food and Nutrition Act of 2008 (7 U.S.C. 2015(d)(4)) is
amended to read as follows:
``(D) Employment and training.--
``(i) Implementation.--Each State agency shall provide
employment and training services authorized under section 134
of the Workforce Investment Act of 1998 (29 U.S.C. 2864) to
eligible members of households participating in the
supplemental nutrition assistance program in gaining skills,
training, work, or experience that will increase their
ability to obtain regular employment.
``(ii) Statewide workforce development system.--Consistent
with subparagraph (A), employment and training services shall
be provided through the statewide workforce development
system, including the one-stop delivery system authorized by
the Workforce Investment Act of 1998 (29 U.S.C. 2801 et
seq.).
``(iii) Reimbursements.--
``(I) Actual costs.--The State agency shall provide
payments or reimbursement to participants served under this
paragraph for--
``(aa) the actual costs of transportation and other actual
costs (other than dependent care costs) that are reasonably
necessary and directly related to the individual
participating in employment and training activities; and
``(bb) the actual costs of such dependent care expenses as
are determined by the State agency to be necessary for the
individual to participate in employment and training
activities (other than an individual who is the caretaker
relative of a dependent in a family receiving benefits under
part A of title IV of the Social Security Act (42 U.S.C. 601
et seq.) in a local area where an employment, training, or
education program under title IV of
[[Page S175]]
that Act is in operation), except that no such payment or
reimbursement shall exceed the applicable local market rate.
``(II) Service contracts and vouchers.--In lieu of
providing reimbursements or payments for dependent care
expenses under clause (i), a State agency may, at the option
of the State agency, arrange for dependent care through
providers by the use of purchase of service contracts or
vouchers or by providing vouchers to the household.
``(III) Value of reimbursements.--The value of any
dependent care services provided for or arranged under clause
(ii), or any amount received as a payment or reimbursement
under clause (i), shall--
``(aa) not be treated as income for the purposes of any
other Federal or federally assisted program that bases
eligibility for, or the amount of benefits on, need; and
``(bb) not be claimed as an employment-related expense for
the purposes of the credit provided under section 21 of the
Internal Revenue Code of 1986 (26 U.S.C. 21).''.
(4) Administration.--Section 11(e)(19) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2020(e)(11) is amended to
read as follows:
``(S) the plans of the State agency for providing
employment and training services under section 6(d)(4);''.
(5) Administrative cost-sharing and quality control.--
Section 16(h) of the Food and Nutrition Act of 2008 (7 U.S.C.
2025(h)) is amended--
(A) in paragraph (1)--
(i) in subparagraph (A), by striking ``carry out employment
and training programs'' and inserting ``provide employment
and training services to eligible households under section
6(d)(4)''; and
(ii) in subparagraph (D), by striking ``operating an
employment and training program'' and inserting ``providing
employment and training services consistent with section
6(d)(4)'';
(B) in paragraph (3)--
(i) by striking ``participation in an employment and
training program'' and inserting ``the individual
participating in employment and training activities''; and
(ii) by striking ``section 6(d)(4)(I)(i)(II)'' and
inserting ``section 6(d)(4)(C)(i)(II)'';
(C) in paragraph (4), by striking ``for operating an
employment and training program'' and inserting ``to provide
employment and training services''; and
(D) by striking paragraph (5) and inserting the following:
``(E) Monitoring.--
``(i) In general.--The Secretary, in conjunction with the
Secretary of Labor, shall monitor each State agency
responsible for administering employment and training
services under section 6(d)(4) to ensure funds are being
spent effectively and efficiently.
``(ii) Accountability.--Each program of employment and
training receiving funds under section 6(d)(4) shall be
subject to the requirements of the performance accountability
system, including having to meet the State performance
measures described in section 136 of the Workforce Investment
Act (29 U.S.C. 2871).''.
(6) Research, demonstration, and evaluations.--Section 17
of the Food and Nutrition Act of 2008 (7 U.S.C. 2026) is
amended--
(A) in subsection (b)--
(i) in paragraph (1)(B)(iv)(III)(dd), by striking ``,
(4)(F)(i), or (4)(K)'' and inserting ``or (4)''; and
(ii) by striking paragraph (3); and
(B) in subsection (g), in the first sentence in the matter
preceding paragraph (1)--
(i) by striking ``programs established'' and inserting
``activities provided to eligible households''; and
(ii) by inserting ``, in conjunction with the Secretary of
Labor,'' after ``Secretary''.
(7) Minnesota family investment project.--Section 22(b)(4)
of the Food and Nutrition Act of 2008 (7 U.S.C. 2031(b)(4))
is amended by striking ``equivalent to those offered under
the employment and training program''.
(b) Amendments to Section 412 of the Immigration and
Nationality Act.--
(1) Conditions and considerations.--Section 412(a) of the
Immigration and Nationality Act (8 U.S.C. 1522(a)) is
amended--
(A) in paragraph (1)--
(i) in subparagraph (A)(i), by striking ``make available
sufficient resources for employment training and placement''
and inserting ``provide refugees with the opportunity to
access employment and training services, including job
placement,''; and
(ii) in subparagraph (B)(ii), by striking ``services;'' and
inserting ``services provided through the Workforce
Investment Act of 1998 (29 U.S.C. 2801 et seq.);'';
(B) in paragraph (2)(C)(iii)(II), by inserting ``and
training'' after ``employment'';
(C) in paragraph (6)(A)(ii)--
(i) by striking ``insure'' and inserting ``ensure'';
(ii) by inserting ``and training'' after ``employment'';
and
(iii) by inserting after ``available'' the following:
``through the one-stop delivery system under section 121 of
the Workforce Investment Act of 1998 (29 U.S.C. 2841)''; and
(D) in paragraph (9), by inserting ``the Secretary of
Labor,'' after ``Education,''.
(2) Program of initial resettlement.--Section 412(b)(2) of
such Act (8 U.S.C. 1522(b)(2)) is amended--
(A) by striking ``orientation, instruction'' and inserting
``orientation and instruction''; and
(B) by striking ``, and job training for refugees, and such
other education and training of refugees, as facilitates''
and inserting ``for refugees to facilitate''.
(3) Project grants and contracts for services for
refugees.--Section 412(c) of such Act (8 U.S.C. 1522(c)) is
amended--
(A) in paragraph (1)--
(i) in subparagraph (A)(i), by inserting ``and training''
after ``employment''; and
(ii) by striking subparagraph (C);
(B) in paragraph (2)(B), by striking ``paragraph--'' and
all that follows through ``in a manner'' and inserting
``paragraph in a manner''; and
(C) by adding at the end the following:
``(C) In carrying out this section, the Director shall
ensure that employment and training services are provided
through the statewide workforce development system, as
appropriate, authorized by the Workforce Investment Act of
1998 (29 U.S.C. 2801 et seq.). Such action may include--
``(i) making employment and training activities described
in section 134 of such Act (29 U.S.C. 2864) available to
refugees; and
``(ii) providing refugees with access to a one-stop
delivery system established under section 121 of such Act (29
U.S.C. 2841).''.
(4) Cash assistance and medical assistance to refugees.--
Section 412(e) of such Act (8 U.S.C. 1522(e)) is amended--
(A) in paragraph (2)(A)(i), by inserting ``and training''
after ``providing employment''; and
(B) in paragraph (3), by striking ``The'' and inserting
``Consistent with subsection (c)(3), the''.
(c) Amendments Relating to the Second Chance Act of 2007.--
(1) Federal prisoner reentry initiative.--Section 231 of
the Second Chance Act of 2007 (42 U.S.C. 17541) is amended--
(A) in subsection (a)(1)(E)--
(i) by inserting ``the Department of Labor and'' before
``other Federal agencies''; and
(ii) by inserting ``State and local workforce investment
boards,'' after ``community-based organizations,'';
(B) in subsection (c)--
(i) in paragraph (2), by striking at the end ``and'';
(ii) in paragraph (3), by striking at the end the period
and inserting ``; and''; and
(iii) by adding at the end the following new paragraph:
``(D) to coordinate reentry programs with the employment
and training services provided through the statewide
workforce investment system under subtitle B of title I of
the Workforce Investment Act of 1998 (29 U.S.C. 2811 et
seq.).''; and
(C) in subsection (d), by adding at the end the following
new paragraph:
``(F) Interaction with the workforce investment system.--
``(i) In general.--In carrying out this section, the
Director shall ensure that employment and training services,
including such employment and services offered through
reentry programs, are provided, as appropriate, through the
statewide workforce investment system under subtitle B of
title I of the Workforce Investment Act of 1998 (29 U.S.C.
2811 et seq.), which may include--
``(I) making employment and training services available to
prisoners prior to and immediately following the release of
such prisoners; or
``(II) providing prisoners with access by remote means to a
one-stop delivery system under section 121 of the Workforce
Investment Act of 1998 (29 U.S.C. 2841) in the State in which
the prison involved is located.
``(ii) Service defined.--In this paragraph, the term
`employment and training services' means those services
described in section 134 of the Workforce Investment Act of
1998 (29 U.S.C. 2864) offered by the Bureau of Prisons,
including--
``(I) the skills assessment described in subsection
(a)(1)(A);
``(II) the skills development plan described in subsection
(a)(1)(B); and
``(III) the enhancement, development, and implementation of
reentry and skills development programs.''.
(2) Duties of the bureau of prisons.--Section 4042(a) of
title 18, United States Code, is amended--
(A) by redesignating subparagraphs (D) and (E), as added by
section 231(d)(1)(C) of the Second Chance Act of 2007 (Public
Law 110-199; 122 Stat. 685), as paragraphs (6) and (7),
respectively, and adjusting the margin accordingly;
(B) in paragraph (6), as so redesignated, by redesignating
clauses (i) and (ii) as subparagraphs (A) and (B),
respectively, and adjusting the margin accordingly;
(C) in paragraph (7), as so redesignated--
(i) in clause (ii), by striking ``Employment'' and
inserting ``Employment and training services (as defined in
paragraph (6) of section 231(d) of the Second Chance Act of
2007), including basic skills attainment, consistent with
such paragraph'';
(ii) by striking clause (iii); and
(D) by redesignating clauses (i), (ii), (iv), (v), (vi),
and (vii) as subparagraphs (A), (B), (C), (D), (E), and (F),
respectively, and adjusting the margin accordingly.
(d) Amendments to the Omnibus Crime Control and Safe
Streets Act of 1968.--Section 2976 of the Omnibus Crime
Control and Safe Streets Act of 1968 (42 U.S.C. 3797w) is
amended--
(1) in subsection (b)--
(A) in paragraph (1), by striking ``vocational'' and
inserting ``career and technical education (as defined in
section 3 of the Carl D. Perkins Career and Technical
Education Act of 2006 (20 U.S.C. 2302)) and training'';
[[Page S176]]
(B) by redesignating paragraphs (4), (5), (6), and (7) as
paragraphs (5), (6), (7), and (8), respectively; and
(C) by inserting after paragraph (3) the following new
paragraph:
``(D) coordinating employment and training services
provided through the statewide workforce investment system
under subtitle B of title I of the Workforce Investment Act
of 1998 (29 U.S.C. 2811 et seq.), including a one-stop
delivery system under section 121 of such Act (29 U.S.C.
2841), for offenders upon release from prison, jail, or a
juvenile facility, as appropriate;'';
(2) in subsection (d)(2), by inserting ``, including local
workforce investment boards established under section 117 of
the Workforce Investment Act of 1998 (29 U.S.C. 2832),''
after ``nonprofit organizations'';
(3) in subsection (e)--
(A) in paragraph (3), by striking ``victims services, and
employment services'' and inserting ``and victim services'';
(B) by redesignating paragraphs (4) and (5) as paragraphs
(5) and (6), respectively; and
(C) by inserting after paragraph (3) the following new
paragraph:
``(D) provides employment and training services through the
statewide workforce investment system under subtitle B of
title I of the Workforce Investment Act of 1998 (29 U.S.C.
2811 et seq.), including a one-stop delivery system under
section 121 of such Act (29 U.S.C. 2841);''; and
(4) in subsection (k)--
(A) in paragraph (1)(A), by inserting ``, in accordance
with paragraph (2)'' after ``under this section'';
(B) by redesignating paragraphs (2) and (3) as paragraphs
(3) and (4), respectively; and
(C) by inserting after paragraph (1) the following new
paragraph:
``(B) Employment and training.--The Attorney General shall
require each grantee under this section to measure the core
indicators of performance as described in section
136(b)(2)(A) of the Workforce Investment Act of 1998 (29
U.S.C. 2871(b)(2)(A)) with respect to the program of such
grantee funded with a grant under this section.''.
(e) Conforming Amendments to Title 38, United States
Code.--Title 38, United States Code, is amended--
(1) in section 3672(d)(1), by striking ``disabled veterans'
outreach program specialists under section 4103A'' and
inserting ``veteran employment specialists appointed under
section 134(f) of the Workforce Investment Act of 1998'';
(2) in the table of sections at the beginning of chapter
41, by striking the items relating to sections 4103A and
4104;
(3) in section 4102A--
(A) in subsection (b)--
(i) by striking paragraphs (5), (6), and (7); and
(ii) by redesignating paragraph (8) as paragraph (5);
(B) by striking subsections (c) and (h);
(C) by redesignating subsections (d), (e), (f), and (g) as
subsections (c), (d), (e), and (f); and
(D) in subsection (e)(1) (as so redesignated)--
(i) by striking ``, including disabled veterans' outreach
program specialists and local veterans' employment
representatives providing employment, training, and placement
services under this chapter in a State''; and
(ii) by striking ``for purposes of subsection (c)'';
(4) in section 4104A--
(A) in subsection (b)(1), by striking subparagraph (A) and
inserting the following:
``(i) the appropriate veteran employment specialist (in
carrying out the functions described in section 134(f) of the
Workforce Investment Act of 1998);''; and
(B) in subsection (c)(1), by striking subparagraph (A) and
inserting the following:
``(i) collaborate with the appropriate veteran employment
specialist (as described in section 134(f)) and the
appropriate State boards and local boards (as such terms are
defined in section 101 of the Workforce Investment Act of
1998 (29 U.S.C. 2801));'';
(5) in section 4109--
(A) in subsection (a), by striking ``disabled veterans'
outreach program specialists and local veterans' employment
representative'' and inserting ``veteran employment
specialists appointed under section 134(f) of the Workforce
Investment Act of 1998''; and
(B) in subsection (d)(1), by striking ``disabled veterans'
outreach program specialists and local veterans' employment
representatives'' and inserting ``veteran employment
specialists appointed under section 134(f) of the Workforce
Investment Act of 1998''; and
(6) in section 4112(d)--
(A) in paragraph (1), by striking ``disabled veterans'
outreach program specialist'' and inserting ``veteran
employment specialist appointed under section 134(f) of the
Workforce Investment Act of 1998''; and
(B) by striking paragraph (2) and redesignating paragraph
(3) as paragraph (2).
SEC. 473. CONFORMING AMENDMENT TO TABLE OF CONTENTS.
The table of contents in section 1(b) is amended to read as
follows:
``(b) Table of Contents.--The table of contents for this
Act is as follows:
``Sec. 1. Short title; table of contents.
``TITLE I--WORKFORCE INVESTMENT SYSTEMS
``Subtitle A--Workforce Investment Definitions
``Sec. 101. Definitions.
``Subtitle B--Statewide and Local Workforce Investment Systems
``Sec. 106. Purpose.
``Chapter 1--State Provisions
``Sec. 111. State workforce investment boards.
``Sec. 112. State plan.
``Chapter 2--Local Provisions
``Sec. 116. Local workforce investment areas.
``Sec. 117. Local workforce investment boards.
``Sec. 118. Local plan.
``Chapter 3--Workforce Investment Activities Providers
``Sec. 121. Establishment of one-stop delivery systems.
``Sec. 122. Identification of eligible providers of training services.
``Chapter 5--Employment and Training Activities
``Sec. 131. General authorization.
``Sec. 132. State allotments.
``Sec. 133. Within State allocations.
``Sec. 134. Use of funds for employment and training activities.
``Chapter 6--General Provisions
``Sec. 136. Performance accountability system.
``Sec. 137. Authorization of appropriations.
``Subtitle C--Job Corps
``Sec. 141. Purposes.
``Sec. 142. Definitions.
``Sec. 143. Establishment.
``Sec. 144. Individuals eligible for the Job Corps.
``Sec. 145. Recruitment, screening, selection, and assignment of
enrollees.
``Sec. 146. Enrollment.
``Sec. 147. Job Corps centers.
``Sec. 148. Program activities.
``Sec. 149. Counseling and job placement.
``Sec. 150. Support.
``Sec. 151. Operations.
``Sec. 152. Standards of conduct.
``Sec. 153. Community participation.
``Sec. 154. Workforce councils.
``Sec. 156. Technical assistance to centers.
``Sec. 157. Application of provisions of Federal law.
``Sec. 158. Special provisions.
``Sec. 159. Performance accountability and management.
``Sec. 160. General provisions.
``Sec. 161. Authorization of appropriations.
``Subtitle D--National Programs
``Sec. 170. Technical assistance.
``Sec. 172. Evaluations.
``Subtitle E--Administration
``Sec. 181. Requirements and restrictions.
``Sec. 182. Prompt allocation of funds.
``Sec. 183. Monitoring.
``Sec. 184. Fiscal controls; sanctions.
``Sec. 185. Reports; recordkeeping; investigations.
``Sec. 186. Administrative adjudication.
``Sec. 187. Judicial review.
``Sec. 188. Nondiscrimination.
``Sec. 189. Administrative provisions.
``Sec. 190. References.
``Sec. 191. State legislative authority.
``Sec. 193. Transfer of Federal equity in State employment security
real property to the States.
``Sec. 195. General program requirements.
``Sec. 196. Federal agency staff.
``Sec. 197. Restrictions on lobbying and political activities.
``Subtitle F--Repeals and Conforming Amendments
``Sec. 199. Repeals.
``Sec. 199A. Conforming amendments.
``TITLE II--ADULT EDUCATION AND FAMILY LITERACY EDUCATION
``Sec. 201. Short title.
``Sec. 202. Purpose.
``Sec. 203. Definitions.
``Sec. 204. Home schools.
``Sec. 205. Authorization of appropriations.
``Subtitle A--Federal Provisions
``Sec. 211. Reservation of funds; grants to eligible agencies;
allotments.
``Sec. 212. Performance accountability system.
``Subtitle B--State Provisions
``Sec. 221. State administration.
``Sec. 222. State distribution of funds; matching requirement.
``Sec. 223. State leadership activities.
``Sec. 224. State plan.
``Sec. 225. Programs for corrections education and other
institutionalized individuals.
``Subtitle C--Local Provisions
``Sec. 231. Grants and contracts for eligible providers.
``Sec. 232. Local application.
``Sec. 233. Local administrative cost limits.
``Subtitle D--General Provisions
``Sec. 241. Administrative provisions.
``Sec. 242. National activities.
``TITLE III--WORKFORCE INVESTMENT-RELATED ACTIVITIES
``Subtitle A--Wagner-Peyser Act
``Sec. 301. Definitions.
``Sec. 302. Functions.
``Sec. 303. Designation of State agencies.
``Sec. 304. Appropriations.
``Sec. 305. Disposition of allotted funds.
``Sec. 306. State plans.
``Sec. 307. Repeal of Federal advisory council.
``Sec. 308. Regulations.
``Sec. 309. Employment statistics.
``Sec. 310. Technical amendments.
``Sec. 311. Effective date.
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``Subtitle B--Linkages With Other Programs
``Sec. 321. Trade Act of 1974.
``Sec. 322. Veterans' employment programs.
``Sec. 323. Older Americans Act of 1965.
``Subtitle D--Application of Civil Rights and Labor-Management Laws to
the Smithsonian Institution
``Sec. 341. Application of civil rights and labor-management laws to
the Smithsonian Institution.
``TITLE IV--REHABILITATION ACT AMENDMENTS OF 1998
``Sec. 401. Short title.
``Sec. 402. Title.
``Sec. 403. General provisions.
``Sec. 404. Vocational rehabilitation services.
``Sec. 405. Research and training.
``Sec. 406. Professional development and special projects and
demonstrations.
``Sec. 407. National Council on Disability.
``Sec. 408. Rights and advocacy.
``Sec. 409. Employment opportunities for individuals with disabilities.
``Sec. 410. Independent living services and centers for independent
living.
``Sec. 411. Repeal.
``Sec. 412. Helen Keller National Center Act.
``Sec. 413. President's Committee on Employment of People With
Disabilities.
``Sec. 414. Conforming amendments.
``TITLE V--GENERAL PROVISIONS
``Sec. 501. State unified plan.
``Sec. 504. Privacy.
``Sec. 505. Buy-American requirements.
``Sec. 507. Effective date.''.
Subtitle E--Amendments to the Rehabilitation Act of 1973
SEC. 476. FINDINGS.
Section 2(a) of the Rehabilitation Act of 1973 (29 U.S.C.
701(a)) is amended--
(1) in paragraph (5), by striking ``and'' at the end;
(2) in paragraph (6), by striking the period and inserting
``; and''; and
(3) by adding at the end the following:
``(7) there is a substantial need to improve and expand
services for students with disabilities under this Act.''.
SEC. 477. REHABILITATION SERVICES ADMINISTRATION.
(a) Rehabilitation Services Administration.--The
Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.) is
amended--
(1) in section 3(a) (29 U.S.C. 702(a))--
(A) by striking ``Office of the Secretary'' and inserting
``Department of Education'';
(B) by striking ``President by and with the advice and
consent of the Senate'' and inserting ``Secretary''; and
(C) by striking ``, and the Commissioner shall be the
principal officer,'';
(2) by striking ``Commissioner'' each place it appears
(except in section 21) and inserting ``Director'';
(3) in section 12(c) (29 U.S.C. 709(c)), by striking
``Commissioner's'' and inserting ``Director's'';
(4) in section 21 (29 U.S.C. 718)--
(A) in subsection (b)(1)--
(i) by striking ``Commissioner'' the first place it appears
and inserting ``Director of the Rehabilitation Services
Administration'';
(ii) by striking ``(referred to in this subsection as the
`Director')''; and
(iii) by striking ``The Commissioner and the Director'' and
inserting ``Both such Directors''; and
(B) by striking ``the Commissioner and the Director'' each
place it appears and inserting ``both such Directors'';
(5) in the heading for subparagraph (B) of section
100(d)(2) (29 U.S.C. 720(d)(2)), by striking ``commissioner''
and inserting ``director'';
(6) in section 401(a)(1) (29 U.S.C. 781(a)(1)), by
inserting ``of the National Institute on Disability and
Rehabilitation Research'' after ``Director'';
(7) in the heading for section 706 (29 U.S.C. 796d-1), by
striking ``commissioner'' and inserting ``director''; and
(8) in the heading for paragraph (3) of section 723(a) (29
U.S.C. 796f-2(a)), by striking ``commissioner'' and inserting
``director''.
(b) Effective Date; Application.--The amendments made by
subsection (a) shall--
(1) take effect on the date of the enactment of this Act;
and
(2) apply with respect to the appointments of Directors of
the Rehabilitation Services Administration made on or after
the date of enactment of this Act, and the Directors so
appointed.
SEC. 478. DEFINITIONS.
Section 7 of the Rehabilitation Act of 1973 (29 U.S.C. 705)
is amended--
(1) by redesignating paragraphs (35) through (39) as
paragraphs (36) through (40), respectively;
(2) in subparagraph (A)(ii) of paragraph (36) (as
redesignated by paragraph (1)), by striking ``paragraph
(36)(C)'' and inserting ``paragraph (37)(C)''; and
(3) by inserting after paragraph (34) the following:
``(35)(A) The term `student with a disability' means an
individual with a disability who--
``(i) is not younger than 16 and not older than 21;
``(ii) has been determined to be eligible under section
102(a) for assistance under this title; and
``(iii)(I) is eligible for, and is receiving, special
education under part B of the Individuals with Disabilities
Education Act (20 U.S.C. 1411 et seq.); or
``(II) is an individual with a disability, for purposes of
section 504.
``(B) The term `students with disabilities' means more than
1 student with a disability.''.
SEC. 479. CARRYOVER.
Section 19(a)(1) of the Rehabilitation Act of 1973 (29
U.S.C. 716(a)(1)) is amended by striking ``part B of title
VI,''.
SEC. 480. TRADITIONALLY UNDERSERVED POPULATIONS.
Section 21 of the Rehabilitation Act of 1973 (29 U.S.C.
718) is amended, in paragraphs (1) and (2)(A) of subsection
(b), and in subsection (c), by striking ``VI,''.
SEC. 481. STATE PLAN.
Section 101(a) of the Rehabilitation Act of 1973 (29 U.S.C.
721(a)) is amended--
(1) in paragraph (10)--
(A) in subparagraph (B), by striking ``on the eligible
individuals'' and all that follows and inserting ``of
information necessary to assess the State's performance on
the core indicators of performance described in section
136(b)(2)(A) of the Workforce Investment Act of 1998 (29
U.S.C. 2871(b)(2)(A)).''; and
(B) in subparagraph (E)(ii), by striking ``, to the extent
the measures are applicable to individuals with
disabilities'';
(2) in paragraph (11)--
(A) in subparagraph (D)(i), by inserting before the
semicolon the following: ``, which may be provided using
alternative means of meeting participation (such as
participation through video conferences and conference
calls)''; and
(B) by adding at the end the following:
``(G) Coordination with assistive technology programs.--The
State plan shall include an assurance that the designated
State unit and the lead agency or implementing entity
responsible for carrying out duties under the Assistive
Technology Act of 1998 (29 U.S.C. 3001 et seq.) have
developed working relationships and coordinate their
activities.'';
(3) in paragraph (15)--
(A) in subparagraph (A)--
(i) in clause (i)--
(I) in subclause (II), by striking ``and'' at the end;
(II) in subclause (III), by adding ``and'' at the end; and
(III) by adding at the end the following:
``(IV) students with disabilities, including their need for
transition services;'';
(ii) by redesignating clauses (ii) and (iii) as clauses
(iii) and (iv), respectively; and
(iii) by inserting after clause (i) the following:
``(ii) include an assessment of the transition services
provided under this Act, and coordinated with transition
services provided under the Individuals with Disabilities
Education Act (20 U.S.C. 1400 et seq.), about the extent to
which those 2 types of services meet the needs of individuals
with disabilities;''; and
(B) in subparagraph (B)(ii), by striking ``and under part B
of title VI'';
(C) in subparagraph (D)--
(i) by redesignating clauses (iii), (iv), and (v) as
clauses (iv), (v), and (vi), respectively;
(ii) by inserting after clause (ii) the following:
``(iii) the methods to be used to improve and expand
vocational rehabilitation services for students with
disabilities, including the coordination of services designed
to facilitate the transition of such students from the
receipt of educational services in school to the receipt of
vocational rehabilitation services under this title or to
postsecondary education or employment;''; and
(iii) in clause (v), as redesignated by clause (i) of this
subparagraph, by striking ``evaluation standards'' and
inserting ``performance standards'';
(4) in paragraph (22)--
(A) in the paragraph heading, by striking ``state plan
supplement'';
(B) by striking ``carrying out part B of title VI,
including''; and
(C) by striking ``that part to supplement funds made
available under part B of'';
(5) in paragraph (24)--
(A) in the paragraph heading, by striking ``contracts'' and
inserting ``grants''; and
(B) in subparagraph (A)--
(i) in the subparagraph heading, by striking ``Contracts''
and inserting ``Grants''; and
(ii) by striking ``part A of title VI'' and inserting
``section 109A''; and
(6) by adding at the end the following:
``(25) Collaboration with industry.--The State plan shall
describe how the designated State agency will carry out the
provisions of section 109A, including--
``(A) the criteria such agency will use to award grants
under such section; and
``(B) how the activities carried out under such grants will
be coordinated with other services provided under this title.
``(26) Services for students with disabilities.--The State
plan shall provide an assurance satisfactory to the Secretary
that the State--
``(A) has developed and implemented strategies to address
the needs identified in the assessments described in
paragraph (15), and achieve the goals and priorities
identified by the State in that paragraph, to improve and
expand vocational rehabilitation services for students with
disabilities on a statewide basis in accordance with
paragraph (15); and
``(B) from funds reserved under section 110A, shall carry
out programs or activities designed to improve and expand
vocational
[[Page S178]]
rehabilitation services for students with disabilities that--
``(i) facilitate the transition of students with
disabilities from the receipt of educational services in
school, to the receipt of vocational rehabilitation services
under this title, including, at a minimum, those services
specified in the interagency agreement required in paragraph
(11)(D);
``(ii) improve the achievement of post-school goals of
students with disabilities, including improving the
achievement through participation (as appropriate when career
goals are discussed) in meetings regarding individualized
education programs developed under section 614 of the
Individuals with Disabilities Education Act (20 U.S.C. 1414);
``(iii) provide career guidance, career exploration
services, job search skills and strategies, and technical
assistance to students with disabilities;
``(iv) support the provision of training and technical
assistance to State and local educational agencies and
designated State agency personnel responsible for the
planning and provision of services to students with
disabilities; and
``(v) support outreach activities to students with
disabilities who are eligible for, and need, services under
this title.''.
SEC. 482. SCOPE OF SERVICES.
Section 103 of the Rehabilitation Act of 1973 (29 U.S.C.
723) is amended--
(1) in subsection (a), by striking paragraph (15) and
inserting the following:
``(15) transition services for students with disabilities,
that facilitate the achievement of the employment outcome
identified in the individualized plan for employment
involved, including services described in clauses (i) through
(iii) of section 101(a)(26)(B);'';
(2) in subsection (b), by striking paragraph (6) and
inserting the following:
``(6)(A)(i) Consultation and technical assistance services
to assist State and local educational agencies in planning
for the transition of students with disabilities from school
to post-school activities, including employment.
``(ii) Training and technical assistance described in
section 101(a)(26)(B)(iv).
``(B) Services for groups of individuals with disabilities
who meet the requirements of clauses (i) and (iii) of section
7(35)(A), including services described in clauses (i), (ii),
(iii), and (v) of section 101(a)(26)(B), to assist in the
transition from school to post-school activities.''; and
(3) in subsection (b), by inserting at the end the
following:
``(7) The establishment, development, or improvement of
assistive technology demonstration, loan, reutilization, or
financing programs in coordination with activities authorized
under the Assistive Technology Act of 1998 (29 U.S.C. 3001 et
seq.) to promote access to assistive technology for
individuals with disabilities and employers.''.
SEC. 483. STANDARDS AND INDICATORS.
(a) In General.--Section 106 of the Rehabilitation Act of
1973 (29 U.S.C. 726) is amended--
(1) in the section heading, by striking ``evaluation
standards'' and inserting ``performance standards'';
(2) by striking subsection (a) and inserting the following:
``(a) Standards and Indicators.--The performance standards
and indicators for the vocational rehabilitation program
carried out under this title--
``(1) shall be subject to paragraphs (2)(A) and (3) of
section 136(b) of the Workforce Investment Act of 1998 (29
U.S.C. 2871(b)); and
``(2) may, at a State's discretion, include additional
indicators identified in the State plan submitted under
section 101.''; and
(3) in subsection (b)(2)(B), by striking clause (i) and
inserting the following:
``(i) on a biannual basis, review the program improvement
efforts of the State and, if the State has not improved its
performance to acceptable levels, as determined by the
Director, direct the State to make revisions to the plan to
improve performance; and''.
(b) Conforming Amendments.--Section 107 of the
Rehabilitation Act of 1973 (29 U.S.C. 727) is amended--
(1) in subsections (a)(1)(B) and (b)(2), by striking
``evaluation standards'' and inserting ``performance
standards''; and
(2) in subsection (c)(1)(B), by striking ``an evaluation
standard'' and inserting ``a performance standard''.
SEC. 484. EXPENDITURE OF CERTAIN AMOUNTS.
Section 108(a) of the Rehabilitation Act of 1973 (29 U.S.C.
728(a)) is amended by striking ``under part B of title VI,
or''.
SEC. 485. COLLABORATION WITH INDUSTRY.
The Rehabilitation Act of 1973 is amended by inserting
after section 109 (29 U.S.C. 728a) the following:
``SEC. 109A. COLLABORATION WITH INDUSTRY.
``(a) Eligible Entity Defined.--For the purposes of this
section, the term `eligible entity' means a for-profit
business, alone or in partnership with one or more of the
following:
``(1) Community rehabilitation program providers.
``(2) Indian tribes.
``(3) Tribal organizations.
``(b) Authority.--A State shall use not less than one-half
of one percent of the payment the State receives under
section 111 for a fiscal year to award grants to eligible
entities to pay for the Federal share of the cost of carrying
out collaborative programs, to create practical job and
career readiness and training programs, and to provide job
placements and career advancement.
``(c) Awards.--Grants under this section shall--
``(1) be awarded for a period not to exceed 5 years; and
``(2) be awarded competitively.
``(d) Application.--To receive a grant under this section,
an eligible entity shall submit an application to a
designated State agency at such time, in such manner, and
containing such information as such agency shall require.
Such application shall include, at a minimum--
``(1) a plan for evaluating the effectiveness of the
collaborative program;
``(2) a plan for collecting and reporting the data and
information described under subparagraphs (A) through (C) of
section 101(a)(10), as determined appropriate by the
designated State agency; and
``(3) a plan for providing for the non-Federal share of the
costs of the program.
``(e) Activities.--An eligible entity receiving a grant
under this section shall use the grant funds to carry out a
program that provides one or more of the following:
``(1) Job development, job placement, and career
advancement services for individuals with disabilities.
``(2) Training in realistic work settings in order to
prepare individuals with disabilities for employment and
career advancement in the competitive market.
``(3) Providing individuals with disabilities with such
support services as may be required in order to maintain the
employment and career advancement for which the individuals
have received training.
``(f) Eligibility for Services.--An individual shall be
eligible for services provided under a program under this
section if the individual is determined under section
102(a)(1) to be eligible for assistance under this title.
``(g) Federal Share.--The Federal share for a program under
this section shall not exceed 80 percent of the costs of the
program.''.
SEC. 486. RESERVATION FOR EXPANDED TRANSITION SERVICES.
The Rehabilitation Act of 1973 is amended by inserting
after section 110 (29 U.S.C. 730) the following:
``SEC. 110A. RESERVATION FOR EXPANDED TRANSITION SERVICES.
``Each State shall reserve not less than 10 percent of the
funds allotted to the State under section 110(a) to carry out
programs or activities under sections 101(a)(26)(B) and
103(b)(6).''.
SEC. 487. CLIENT ASSISTANCE PROGRAM.
Section 112(e)(1) of the Rehabilitation Act of 1973 (29
U.S.C. 732(e)(1)) is amended by redesignating subparagraph
(D) as subparagraph (E) and inserting after subparagraph (C)
the following:
``(D) The Secretary shall make grants to the protection and
advocacy system serving the American Indian Consortium under
the Developmental Disabilities and Bill of Rights Act of 2000
(42 U.S.C. 15001 et seq.) to provide services in accordance
with this section, as determined by the Secretary. The amount
of such grants shall be the same as the amount provided to
territories under this subsection.''.
SEC. 488. RESEARCH.
Section 204(a)(2)(A) of the Rehabilitation Act of 1973 (29
U.S.C. 764(a)(2)(A)) is amended by striking ``VI,''.
SEC. 489. TITLE III AMENDMENTS.
Title III of the Rehabilitation Act of 1973 (29 U.S.C. 771
et seq.) is amended--
(1) in section 301(a) (21 U.S.C. 771(a))--
(A) in paragraph (2), by inserting ``and'' at the end;
(B) by striking paragraphs (3) and (4); and
(C) by redesignating paragraph (5) as paragraph (3);
(2) in section 302 (29 U.S.C. 772)--
(A) in subsection (g)--
(i) in the heading, by striking ``And In-Service
Training''; and
(ii) by striking paragraph (3); and
(B) in subsection (h), by striking ``section 306'' and
inserting ``section 304'';
(3) in section 303 (29 U.S.C. 773)--
(A) in subsection (b)(1), by striking ``section 306'' and
inserting ``section 304''; and
(B) in subsection (c)--
(i) in paragraph (4)--
(I) by amending subparagraph (A)(ii) to read as follows:
``(ii) to coordinate activities and work closely with the
parent training and information centers established pursuant
to section 671 of the Individuals with Disabilities Education
Act (20 U.S.C. 1471), the community parent resource centers
established pursuant to section 672 of such Act (29 U.S.C.
1472), and the eligible entities receiving awards under
section 673 of such Act (20 U.S.C. 1473); and''; and
(II) in subparagraph (C), by inserting ``, and demonstrate
the capacity for serving,'' after ``serve''; and
(ii) by adding at the end the following:
``(8) Reservation.--From the amount appropriated to carry
out this subsection for a fiscal year, 20 percent of such
amount or $500,000, whichever is less, shall be reserved to
carry out paragraph (6).'';
(4) by striking sections 304 and 305 (29 U.S.C. 774, 775);
and
(5) by redesignating section 306 (29 U.S.C. 776) as section
304.
SEC. 490. REPEAL OF TITLE VI.
Title VI of the Rehabilitation Act of 1973 (29 U.S.C. 795
et seq.) is repealed.
SEC. 491. TITLE VII GENERAL PROVISIONS.
(a) Purpose.--Section 701(3) of the Rehabilitation Act of
1973 (29 U.S.C. 796(3)) is
[[Page S179]]
amended by striking ``State programs of supported employment
services receiving assistance under part B of title VI,''.
(b) Chairperson.--Section 705(b)(5) of the Rehabilitation
Act of 1973 (29 U.S.C. 796d(b)(5)) is amended to read as
follows:
``(5) Chairperson.--The Council shall select a chairperson
from among the voting membership of the Council.''.
SEC. 492. AUTHORIZATIONS OF APPROPRIATIONS.
The Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.) is
further amended--
(1) in section 100 (29 U.S.C. 720)--
(A) in subsection (b)(1), by striking ``such sums as may be
necessary for fiscal years 1999 through 2003'' and inserting
``$3,121,712,000 for fiscal year 2015 and each of the 6
succeeding fiscal years''; and
(B) in subsection (d)(1)(B), by striking ``2003'' and
inserting ``2021'';
(2) in section 110(c) (29 U.S.C. 730(c)), by amending
paragraph (2) to read as follows:
``(2) The sum referred to in paragraph (1) shall be, as
determined by the Secretary, not less than 1 percent and not
more than 1.5 percent of the amount referred to in paragraph
(1) for each of fiscal years 2015 through 2020.'';
(3) in section 112(h) (29 U.S.C. 732(h)), by striking
``such sums as may be necessary for fiscal years 1999 through
2003'' and inserting ``$12,240,000 for fiscal year 2015 and
each of the 6 succeeding fiscal years'';
(4) by amending subsection (a) of section 201 (29 U.S.C.
761(a)) to read as follows: ``(a) There are authorized to be
appropriated $108,817,000 for fiscal year 2015 and each of
the 6 succeeding fiscal years to carry out this title.'';
(5) in section 302(i) (29 U.S.C. 772(i)), by striking
``such sums as may be necessary for each of the fiscal years
1999 through 2003'' and inserting ``$35,515,000 for fiscal
year 2015 and each of the 6 succeeding fiscal years'';
(6) in section 303(e) (29 U.S.C. 773(e)), by striking
``such sums as may be necessary for each of the fiscal years
1999 through 2003'' and inserting ``$5,325,000 for fiscal
year 2015 and each of the 6 succeeding fiscal years'';
(7) in section 405 (29 U.S.C. 785), by striking ``such sums
as may be necessary for each of the fiscal years 1999 through
2003'' and inserting ``$3,258,000 for fiscal year 2015 and
each of the 6 succeeding fiscal years'';
(8) in section 502(j) (29 U.S.C. 792(j)), by striking
``such sums as may be necessary for each of the fiscal years
1999 through 2003'' and inserting ``$7,400,000 for fiscal
year 2015 and each of the 6 succeeding fiscal years'';
(9) in section 509(l) (29 U.S.C. 794e(l)), by striking
``such sums as may be necessary for each of the fiscal years
1999 through 2003'' and inserting ``$18,031,000 for fiscal
year 2015 and each of the 6 succeeding fiscal years'';
(10) in section 714 (29 U.S.C. 796e-3), by striking ``such
sums as may be necessary for each of the fiscal years 1999
through 2003'' and inserting ``$23,359,000 for fiscal year
2015 and each of the 6 succeeding fiscal years'';
(11) in section 727 (29 U.S.C. 796f-6), by striking ``such
sums as may be necessary for each of the fiscal years 1999
through 2003'' and inserting ``$79,953,000 for fiscal year
2015 and each of the 6 succeeding fiscal years''; and
(12) in section 753 (29 U.S.C. 796l), by striking ``such
sums as may be necessary for each of the fiscal years 1999
through 2003'' and inserting ``$34,018,000 for fiscal year
2015 and each of the 6 succeeding fiscal years''.
SEC. 493. CONFORMING AMENDMENTS.
Section 1(b) of the Rehabilitation Act of 1973 is amended--
(1) by inserting after the item relating to section 109 the
following:
``Sec. 109A. Collaboration with industry.'';
(2) by inserting after the item relating to section 110 the
following:
``Sec. 110A. Reservation for expanded transition services.'';
(3) by striking the item related to section 304 and
inserting the following:
``Sec. 304. Measuring of project outcomes and performance.'';
(4) by striking the items related to sections 305 and 306;
(5) by striking the items related to title VI; and
(6) by striking the item related to section 706 and
inserting the following:
``Sec. 706. Responsibilities of the Director.''.
Subtitle F--Studies by the Comptroller General
SEC. 496. STUDY BY THE COMPTROLLER GENERAL ON EXHAUSTING
FEDERAL PELL GRANTS BEFORE ACCESSING WIA FUNDS.
Not later than 12 months after the date of enactment of
this Act, the Comptroller General of the United States shall
complete and submit to the Committee on Education and the
Workforce of the House of Representatives and the Committee
on Health, Education, Labor, and Pensions of the Senate a
report that--
(1) evaluates the effectiveness of subparagraph (B) of
section 134(d)(4) of the Workforce Investment Act of 1998 (29
U.S.C. 2864(d)(4)(B)) (as such subparagraph was in effect on
the day before the date of enactment of this Act),
including--
(A) a review of the regulations and guidance issued by the
Secretary of Labor to State and local areas on how to comply
with such subparagraph;
(B) a review of State policies to determine how local areas
are required to comply with such subparagraph;
(C) a review of local area policies to determine how one-
stop operators are required to comply with such subparagraph;
and
(D) a review of a sampling of individuals receiving
training services under section 134(d)(4) of the Workforce
Investment Act of 1998 (29 U.S.C. 2864(d)(4)) to determine
if, before receiving such training services, such individuals
have exhausted funds received through the Federal Pell Grant
program under title IV of the Higher Education Act of 1965
(20 U.S.C. 1070 et seq.); and
(2) makes appropriate recommendations with respect to the
matters evaluated under paragraph (1).
SEC. 497. STUDY BY THE COMPTROLLER GENERAL ON ADMINISTRATIVE
COST SAVINGS.
(a) Study.--Not later than 12 months after the date of the
enactment of this Act, the Comptroller General of the United
States shall complete and submit to the Committee on
Education and the Workforce of the House of Representatives
and the Committee on Health, Education, Labor, and Pensions
of the Senate a report that--
(1) determines the amount of administrative costs at the
Federal and State levels for the most recent fiscal year for
which satisfactory data are available for--
(A) each of the programs authorized under the Workforce
Investment Act of 1998 (29 U.S.C. 2801 et seq.) or repealed
under section 401 of this Act, as such programs were in
effect for such fiscal year; and
(B) each of the programs described in subparagraph (A) that
have been repealed or consolidated on or after the date of
enactment of this Act;
(2) determines the amount of administrative cost savings at
the Federal and State levels as a result of repealing and
consolidating programs by calculating the differences in the
amount of administrative costs between subparagraph (A) and
subparagraph (B) of paragraph (1); and
(3) estimates the administrative cost savings at the
Federal and State levels for a fiscal year as a result of
States consolidating amounts under section 501(e) of the
Workforce Investment Act of 1998 (20 U.S.C. 9271(e)) to
reduce inefficiencies in the administration of federally-
funded State and local employment and training programs.
(b) Definition.--For purposes of this section, the term
``administrative costs'' has the meaning given the term in
section 101 of the Workforce Investment Act of 1998 (29
U.S.C. 2801).
TITLE V--OFFSET
SEC. 501. NONDEFENSE DISCRETIONARY SPENDING.
Section 251(c)(2)(B) of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended by striking
``$492,356,000,000'' and inserting ``$482,356,000,000''.
______
SA 2623. Mr. McCONNELL (for himself and Mr. Hatch) submitted an
amendment intended to be proposed by him to the bill S. 1845, to
provide for the extension of certain unemployment benefits, and for
other purposes; which was ordered to lie on the table; as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) In General.--This Act may be cited as the ``Military
Heroes Pension, Family Health Fairness, and Emergency Long-
Term Unemployment Insurance Extension Act of 2014''.
(b) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I--MILITARY HEROES' PENSIONS
Sec. 101. Repeal of reductions made by Bipartisan Budget Act of 2013.
TITLE II--FAMILY HEALTH FAIRNESS
Sec. 201. Delay in application of individual health insurance mandate.
TITLE III--UNEMPLOYMENT PROVISIONS
Sec. 301. Extension of emergency unemployment compensation program.
Sec. 302. Temporary extension of extended benefit provisions.
Sec. 303. Extension of funding for reemployment services and
reemployment and eligibility assessment activities.
Sec. 304. Additional extended unemployment benefits under the railroad
unemployment insurance act.
Sec. 305. Repeal of nonreduction rule under the emergency unemployment
compensation program.
TITLE IV--OTHER PROVISIONS
Sec. 401. Disqualification on receipt of disability insurance benefits
in a month for which unemployment compensation is
received.
TITLE I--MILITARY HEROES' PENSIONS
SEC. 101. REPEAL OF REDUCTIONS MADE BY BIPARTISAN BUDGET ACT
OF 2013.
Section 403 of the Bipartisan Budget Act of 2013 is
repealed as of the date of the enactment of such Act.
TITLE II--FAMILY HEALTH FAIRNESS
SEC. 201. DELAY IN APPLICATION OF INDIVIDUAL HEALTH INSURANCE
MANDATE.
(a) In General.--Section 5000A(a) of the Internal Revenue
Code of 1986 is amended by striking ``2013'' and inserting
``2014''.
(b) Conforming Amendments.--
(1) Section 5000A(c)(2)(B) of the Internal Revenue Code of
1986 is amended--
(A) by striking ``2014'' in clause (i) and inserting
``2015'', and
[[Page S180]]
(B) by striking ``2015'' in clauses (ii) and (iii) and
inserting ``2016''.
(2) Section 5000A(c)(3)(B) of such Code is amended--
(A) by striking ``2014'' and inserting ``2015'', and
(B) by striking ``2015'' (prior to amendment by
subparagraph (A)) and inserting ``2016''.
(3) Section 5000A(c)(3)(D) of such Code is amended--
(A) by striking ``2016'' and inserting ``2017'', and
(B) by striking ``2015'' and inserting ``2016''.
(4) Section 5000A(e)(1)(D) of such Code is amended--
(A) by striking ``2014'' and inserting ``2015'', and
(B) by striking ``2013'' and inserting ``2014''.
(c) Effective Date.--The amendments made by this section
shall take effect as if included in section 1501 of the
Patient Protection and Affordable Care Act.
TITLE III--UNEMPLOYMENT PROVISIONS
SEC. 301. EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION
PROGRAM.
(a) Extension.--Section 4007(a)(2) of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304
note) is amended by striking ``January 1, 2014'' and
inserting ``January 1, 2015''.
(b) Funding.--Section 4004(e)(1) of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304
note) is amended--
(1) in subparagraph (I), by striking ``and'' at the end;
(2) in subparagraph (J), by inserting ``and'' at the end;
and
(3) by inserting after subparagraph (J) the following:
``(K) the amendment made by section 301(a) of the Military
Heroes Pension, Family Health Fairness, and Emergency Long-
Term Unemployment Insurance Extension Act of 2014;''.
(c) Effective Date.--The amendments made by this section
shall take effect as if included in the enactment of the
American Taxpayer Relief Act of 2012 (Public Law 112-240).
SEC. 302. TEMPORARY EXTENSION OF EXTENDED BENEFIT PROVISIONS.
(a) In General.--Section 2005 of the Assistance for
Unemployed Workers and Struggling Families Act, as contained
in Public Law 111-5 (26 U.S.C. 3304 note), is amended--
(1) by striking ``December 31, 2013'' each place it appears
and inserting ``December 31, 2014''; and
(2) in subsection (c), by striking ``June 30, 2014'' and
inserting ``June 30, 2015''.
(b) Extension of Matching for States With No Waiting
Week.--Section 5 of the Unemployment Compensation Extension
Act of 2008 (Public Law 110-449; 26 U.S.C. 3304 note) is
amended by striking ``June 30, 2014'' and inserting ``June
30, 2015''.
(c) Extension of Modification of Indicators Under the
Extended Benefit Program.--Section 203 of the Federal-State
Extended Unemployment Compensation Act of 1970 (26 U.S.C.
3304 note) is amended--
(1) in subsection (d), by striking ``December 31, 2013''
and inserting ``December 31, 2014''; and
(2) in subsection (f)(2), by striking ``December 31, 2013''
and inserting ``December 31, 2014''.
(d) Effective Date.--The amendments made by this section
shall take effect as if included in the enactment of the
American Taxpayer Relief Act of 2012 (Public Law 112-240).
SEC. 303. EXTENSION OF FUNDING FOR REEMPLOYMENT SERVICES AND
REEMPLOYMENT AND ELIGIBILITY ASSESSMENT
ACTIVITIES.
(a) In General.--Section 4004(c)(2)(A) of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304
note) is amended by striking ``through fiscal year 2014'' and
inserting ``through fiscal year 2015''.
(b) Effective Date.--The amendments made by this section
shall take effect as if included in the enactment of the
American Taxpayer Relief Act of 2012 (Public Law 112-240).
SEC. 304. ADDITIONAL EXTENDED UNEMPLOYMENT BENEFITS UNDER THE
RAILROAD UNEMPLOYMENT INSURANCE ACT.
(a) Extension.--Section 2(c)(2)(D)(iii) of the Railroad
Unemployment Insurance Act (45 U.S.C. 352(c)(2)(D)(iii)) is
amended--
(1) by striking ``June 30, 2013'' and inserting ``June 30,
2014''; and
(2) by striking ``December 31, 2013'' and inserting
``December 31, 2014''.
(b) Clarification on Authority to Use Funds.--Funds
appropriated under either the first or second sentence of
clause (iv) of section 2(c)(2)(D) of the Railroad
Unemployment Insurance Act shall be available to cover the
cost of additional extended unemployment benefits provided
under such section 2(c)(2)(D) by reason of the amendments
made by subsection (a) as well as to cover the cost of such
benefits provided under such section 2(c)(2)(D), as in effect
on the day before the date of enactment of this Act.
(c) Funding for Administration.--Out of any funds in the
Treasury not otherwise appropriated, there are appropriated
to the Railroad Retirement Board $250,000 for administrative
expenses associated with the payment of additional extended
unemployment benefits provided under section 2(c)(2)(D) of
the Railroad Unemployment Insurance Act by reason of the
amendments made by subsection (a), to remain available until
expended.
SEC. 305. REPEAL OF NONREDUCTION RULE UNDER THE EMERGENCY
UNEMPLOYMENT COMPENSATION PROGRAM.
(a) In General.--Subsection (g) of section 4001 of the
Supplemental Appropriations Act, 2008 (Public Law 110-252; 26
U.S.C. 3304 note) is repealed.
(b) Effective Date.--The amendment made by subsection (a)
shall apply with respect to weeks of unemployment beginning
on or after the date of the enactment of this Act.
(c) Permitting a Subsequent Agreement.--Nothing in title IV
of the Supplemental Appropriations Act, 2008 (Public Law 110-
252; 26 U.S.C. 3304 note) shall preclude a State whose
agreement under such title was terminated from entering into
a subsequent agreement under such title on or after the date
of the enactment of this Act if the State, taking into
account the application of the amendment made by subsection
(a), would otherwise meet the requirements for an agreement
under such title.
TITLE IV--OTHER PROVISIONS
SEC. 401. DISQUALIFICATION ON RECEIPT OF DISABILITY INSURANCE
BENEFITS IN A MONTH FOR WHICH UNEMPLOYMENT
COMPENSATION IS RECEIVED.
(a) In General.--Section 223(d)(4) of the Social Security
Act (42 U.S.C. 423(d)(4)) is amended by adding at the end the
following:
``(C)(i) If for any month an individual is entitled to
unemployment compensation, such individual shall be deemed to
have engaged in substantial gainful activity for such month.
``(ii) For purposes of clause (i), the term `unemployment
compensation' means--
``(I) `regular compensation', `extended compensation', and
`additional compensation' (as such terms are defined by
section 205 of the Federal-State Extended Unemployment
Compensation Act (26 U.S.C. 3304 note)); and
``(II) trade adjustment assistance under title II of the
Trade Act of 1974 (19 U.S.C. 2251 et seq.).''.
(b) Trial Work Period.--Section 222(c) of the Social
Security Act (42 U.S.C. 422(c)) is amended by adding at the
end the following:
``(6)(A) For purposes of this subsection, an individual
shall be deemed to have rendered services in a month if the
individual is entitled to unemployment compensation for such
month.
``(B) For purposes of subparagraph (A), the term
`unemployment compensation' means--
``(i) `regular compensation', `extended compensation', and
`additional compensation' (as such terms are defined by
section 205 of the Federal-State Extended Unemployment
Compensation Act (26 U.S.C. 3304 note)); and
``(ii) trade adjustment assistance under title II of the
Trade Act of 1974 (19 U.S.C. 2251 et seq.).''.
(c) Data Matching.--The Commissioner of Social Security
shall implement the amendments made by this section using
appropriate electronic data.
(d) Effective Date.--The amendments made by this section
shall apply with respect to months after March 2014.
______
SA 2624. Mr. McCONNELL (for himself and Mr. Hatch) submitted an
amendment intended to be proposed by him to the bill S. 1845, to
provide for the extension of certain unemployment benefits, and for
other purposes; which was ordered to lie on the table; as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) In General.--This Act may be cited as the ``Military
Heroes Pension, Family Health Fairness, and Emergency Long-
Term Unemployment Insurance Extension Act of 2014''.
(b) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I--MILITARY HEROES' PENSIONS
Sec. 101. Repeal of reductions made by Bipartisan Budget Act of 2013.
TITLE II--FAMILY HEALTH FAIRNESS
Sec. 201. Delay in application of individual health insurance mandate.
TITLE III--UNEMPLOYMENT PROVISIONS
Sec. 301. Extension of emergency unemployment compensation program.
Sec. 302. Temporary extension of extended benefit provisions.
Sec. 303. Extension of funding for reemployment services and
reemployment and eligibility assessment activities.
Sec. 304. Additional extended unemployment benefits under the railroad
unemployment insurance act.
Sec. 305. Repeal of nonreduction rule under the emergency unemployment
compensation program.
TITLE IV--OTHER PROVISIONS
Sec. 401. Disqualification on receipt of disability insurance benefits
in a month for which unemployment compensation is
received.
TITLE I--MILITARY HEROES' PENSIONS
SEC. 101. REPEAL OF REDUCTIONS MADE BY BIPARTISAN BUDGET ACT
OF 2013.
Section 403 of the Bipartisan Budget Act of 2013 is
repealed as of the date of the enactment of such Act.
[[Page S181]]
TITLE II--FAMILY HEALTH FAIRNESS
SEC. 201. DELAY IN APPLICATION OF INDIVIDUAL HEALTH INSURANCE
MANDATE.
(a) In General.--Section 5000A(a) of the Internal Revenue
Code of 1986 is amended by striking ``2013'' and inserting
``2014''.
(b) Conforming Amendments.--
(1) Section 5000A(c)(2)(B) of the Internal Revenue Code of
1986 is amended--
(A) by striking ``2014'' in clause (i) and inserting
``2015'', and
(B) by striking ``2015'' in clauses (ii) and (iii) and
inserting ``2016''.
(2) Section 5000A(c)(3)(B) of such Code is amended--
(A) by striking ``2014'' and inserting ``2015'', and
(B) by striking ``2015'' (prior to amendment by
subparagraph (A)) and inserting ``2016''.
(3) Section 5000A(c)(3)(D) of such Code is amended--
(A) by striking ``2016'' and inserting ``2017'', and
(B) by striking ``2015'' and inserting ``2016''.
(4) Section 5000A(e)(1)(D) of such Code is amended--
(A) by striking ``2014'' and inserting ``2015'', and
(B) by striking ``2013'' and inserting ``2014''.
(c) Effective Date.--The amendments made by this section
shall take effect as if included in section 1501 of the
Patient Protection and Affordable Care Act.
TITLE III--UNEMPLOYMENT PROVISIONS
SEC. 301. EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION
PROGRAM.
(a) Extension.--Section 4007(a)(2) of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304
note) is amended by striking ``January 1, 2014'' and
inserting ``October 1, 2014''.
(b) Funding.--Section 4004(e)(1) of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304
note) is amended--
(1) in subparagraph (I), by striking ``and'' at the end;
(2) in subparagraph (J), by inserting ``and'' at the end;
and
(3) by inserting after subparagraph (J) the following:
``(K) the amendment made by section 301(a) of the Military
Heroes Pension, Family Health Fairness, and Emergency Long-
Term Unemployment Insurance Extension Act of 2014;''.
(c) Effective Date.--The amendments made by this section
shall take effect as if included in the enactment of the
American Taxpayer Relief Act of 2012 (Public Law 112-240).
SEC. 302. TEMPORARY EXTENSION OF EXTENDED BENEFIT PROVISIONS.
(a) In General.--Section 2005 of the Assistance for
Unemployed Workers and Struggling Families Act, as contained
in Public Law 111-5 (26 U.S.C. 3304 note), is amended--
(1) by striking ``December 31, 2013'' each place it appears
and inserting ``September 30, 2014''; and
(2) in subsection (c), by striking ``June 30, 2014'' and
inserting ``March 31, 2015''.
(b) Extension of Matching for States With No Waiting
Week.--Section 5 of the Unemployment Compensation Extension
Act of 2008 (Public Law 110-449; 26 U.S.C. 3304 note) is
amended by striking ``June 30, 2014'' and inserting ``March
31, 2015''.
(c) Extension of Modification of Indicators Under the
Extended Benefit Program.--Section 203 of the Federal-State
Extended Unemployment Compensation Act of 1970 (26 U.S.C.
3304 note) is amended--
(1) in subsection (d), by striking ``December 31, 2013''
and inserting ``September 30, 2014''; and
(2) in subsection (f)(2), by striking ``December 31, 2013''
and inserting ``September 30, 2014''.
(d) Effective Date.--The amendments made by this section
shall take effect as if included in the enactment of the
American Taxpayer Relief Act of 2012 (Public Law 112-240).
SEC. 303. EXTENSION OF FUNDING FOR REEMPLOYMENT SERVICES AND
REEMPLOYMENT AND ELIGIBILITY ASSESSMENT
ACTIVITIES.
(a) In General.--Section 4004(c)(2)(A) of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304
note) is amended by striking ``through fiscal year 2014'' and
inserting ``through the third quarter of fiscal year 2015''.
(b) Effective Date.--The amendments made by this section
shall take effect as if included in the enactment of the
American Taxpayer Relief Act of 2012 (Public Law 112-240).
SEC. 304. ADDITIONAL EXTENDED UNEMPLOYMENT BENEFITS UNDER THE
RAILROAD UNEMPLOYMENT INSURANCE ACT.
(a) Extension.--Section 2(c)(2)(D)(iii) of the Railroad
Unemployment Insurance Act (45 U.S.C. 352(c)(2)(D)(iii)) is
amended--
(1) by striking ``June 30, 2013'' and inserting ``March 31,
2014''; and
(2) by striking ``December 31, 2013'' and inserting
``September 30, 2014''.
(b) Clarification on Authority to Use Funds.--Funds
appropriated under either the first or second sentence of
clause (iv) of section 2(c)(2)(D) of the Railroad
Unemployment Insurance Act shall be available to cover the
cost of additional extended unemployment benefits provided
under such section 2(c)(2)(D) by reason of the amendments
made by subsection (a) as well as to cover the cost of such
benefits provided under such section 2(c)(2)(D), as in effect
on the day before the date of enactment of this Act.
(c) Funding for Administration.--Out of any funds in the
Treasury not otherwise appropriated, there are appropriated
to the Railroad Retirement Board $187,500 for administrative
expenses associated with the payment of additional extended
unemployment benefits provided under section 2(c)(2)(D) of
the Railroad Unemployment Insurance Act by reason of the
amendments made by subsection (a), to remain available until
expended.
SEC. 305. REPEAL OF NONREDUCTION RULE UNDER THE EMERGENCY
UNEMPLOYMENT COMPENSATION PROGRAM.
(a) In General.--Subsection (g) of section 4001 of the
Supplemental Appropriations Act, 2008 (Public Law 110-252; 26
U.S.C. 3304 note) is repealed.
(b) Effective Date.--The amendment made by subsection (a)
shall apply with respect to weeks of unemployment beginning
on or after the date of the enactment of this Act.
(c) Permitting a Subsequent Agreement.--Nothing in title IV
of the Supplemental Appropriations Act, 2008 (Public Law 110-
252; 26 U.S.C. 3304 note) shall preclude a State whose
agreement under such title was terminated from entering into
a subsequent agreement under such title on or after the date
of the enactment of this Act if the State, taking into
account the application of the amendment made by subsection
(a), would otherwise meet the requirements for an agreement
under such title.
TITLE IV--OTHER PROVISIONS
SEC. 401. DISQUALIFICATION ON RECEIPT OF DISABILITY INSURANCE
BENEFITS IN A MONTH FOR WHICH UNEMPLOYMENT
COMPENSATION IS RECEIVED.
(a) In General.--Section 223(d)(4) of the Social Security
Act (42 U.S.C. 423(d)(4)) is amended by adding at the end the
following:
``(C)(i) If for any month an individual is entitled to
unemployment compensation, such individual shall be deemed to
have engaged in substantial gainful activity for such month.
``(ii) For purposes of clause (i), the term `unemployment
compensation' means--
``(I) `regular compensation', `extended compensation', and
`additional compensation' (as such terms are defined by
section 205 of the Federal-State Extended Unemployment
Compensation Act (26 U.S.C. 3304 note)); and
``(II) trade adjustment assistance under title II of the
Trade Act of 1974 (19 U.S.C. 2251 et seq.).''.
(b) Trial Work Period.--Section 222(c) of the Social
Security Act (42 U.S.C. 422(c)) is amended by adding at the
end the following:
``(6)(A) For purposes of this subsection, an individual
shall be deemed to have rendered services in a month if the
individual is entitled to unemployment compensation for such
month.
``(B) For purposes of subparagraph (A), the term
`unemployment compensation' means--
``(i) `regular compensation', `extended compensation', and
`additional compensation' (as such terms are defined by
section 205 of the Federal-State Extended Unemployment
Compensation Act (26 U.S.C. 3304 note)); and
``(ii) trade adjustment assistance under title II of the
Trade Act of 1974 (19 U.S.C. 2251 et seq.).''.
(c) Data Matching.--The Commissioner of Social Security
shall implement the amendments made by this section using
appropriate electronic data.
(d) Effective Date.--The amendments made by this section
shall apply with respect to months after March 2014.
______
SA 2625. Mr. McCONNELL (for himself and Mr. Hatch) submitted an
amendment intended to be proposed by him to the bill S. 1845, to
provide for the extension of certain unemployment benefits, and for
other purposes; which was ordered to lie on the table; as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) In General.--This Act may be cited as the ``Military
Heroes Pension, Family Health Fairness, and Emergency Long-
Term Unemployment Insurance Extension Act of 2014''.
(b) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I--MILITARY HEROES' PENSIONS
Sec. 101. Repeal of reductions made by Bipartisan Budget Act of 2013.
TITLE II--FAMILY HEALTH FAIRNESS
Sec. 201. Delay in application of individual health insurance mandate.
TITLE III--UNEMPLOYMENT PROVISIONS
Sec. 301. Extension of emergency unemployment compensation program.
Sec. 302. Temporary extension of extended benefit provisions.
Sec. 303. Extension of funding for reemployment services and
reemployment and eligibility assessment activities.
Sec. 304. Additional extended unemployment benefits under the railroad
unemployment insurance act.
Sec. 305. Repeal of nonreduction rule under the emergency unemployment
compensation program.
TITLE IV--OTHER PROVISIONS
Sec. 401. Disqualification on receipt of disability insurance benefits
in a month for which unemployment compensation is
received.
[[Page S182]]
TITLE I--MILITARY HEROES' PENSIONS
SEC. 101. REPEAL OF REDUCTIONS MADE BY BIPARTISAN BUDGET ACT
OF 2013.
Section 403 of the Bipartisan Budget Act of 2013 is
repealed as of the date of the enactment of such Act.
TITLE II--FAMILY HEALTH FAIRNESS
SEC. 201. DELAY IN APPLICATION OF INDIVIDUAL HEALTH INSURANCE
MANDATE.
(a) In General.--Section 5000A(a) of the Internal Revenue
Code of 1986 is amended by striking ``2013'' and inserting
``2014''.
(b) Conforming Amendments.--
(1) Section 5000A(c)(2)(B) of the Internal Revenue Code of
1986 is amended--
(A) by striking ``2014'' in clause (i) and inserting
``2015'', and
(B) by striking ``2015'' in clauses (ii) and (iii) and
inserting ``2016''.
(2) Section 5000A(c)(3)(B) of such Code is amended--
(A) by striking ``2014'' and inserting ``2015'', and
(B) by striking ``2015'' (prior to amendment by
subparagraph (A)) and inserting ``2016''.
(3) Section 5000A(c)(3)(D) of such Code is amended--
(A) by striking ``2016'' and inserting ``2017'', and
(B) by striking ``2015'' and inserting ``2016''.
(4) Section 5000A(e)(1)(D) of such Code is amended--
(A) by striking ``2014'' and inserting ``2015'', and
(B) by striking ``2013'' and inserting ``2014''.
(c) Effective Date.--The amendments made by this section
shall take effect as if included in section 1501 of the
Patient Protection and Affordable Care Act.
TITLE III--UNEMPLOYMENT PROVISIONS
SEC. 301. EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION
PROGRAM.
(a) Extension.--Section 4007 of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304
note) is amended to read as follows:
``applicability
``Sec. 4007. (a) In General.--Except as provided in
subsection (b), an agreement entered into under this title
shall apply to weeks of unemployment--
``(1) beginning after the date on which such agreement is
entered into; and
``(2) ending on or before July 1, 2014.
``(b) Transition for Amount Remaining in Account.--
``(1) In general.--Subject to paragraphs (2) and (3), in
the case of an individual who has amounts remaining in an
account established under section 4002 as of the last day of
the last week (as determined in accordance with the
applicable State law) ending on or before July 1, 2014,
emergency unemployment compensation shall continue to be
payable to such individual from such amounts for any week
beginning after such last day for which the individual meets
the eligibility requirements of this title.
``(2) No augmentation after july 1, 2014.--If the amount
established in an individual's account under subsection
(b)(1) is exhausted after July 1, 2014, then subsections (c),
(d) and (e) of section 4002 shall not apply and such account
shall not be augmented under such section, regardless of
whether such individual's State is in an extended benefit
period (as determined under paragraph (2) of such subsection
(c), (d), or (e) (as the case may be)).
``(3) Termination.--No compensation under this title shall
be payable for any week beginning after September 30,
2014.''.
(b) Funding.--Section 4004(e)(1) of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304
note) is amended--
(1) in subparagraph (I), by striking ``and'' at the end;
(2) in subparagraph (J), by inserting ``and'' at the end;
and
(3) by inserting after subparagraph (J) the following:
``(K) the amendment made by section 301(a) of the Military
Heroes Pension, Family Health Fairness, and Emergency Long-
Term Unemployment Insurance Extension Act of 2014;''.
(c) Effective Date.--The amendments made by this section
shall take effect as if included in the enactment of the
American Taxpayer Relief Act of 2012 (Public Law 112-240).
SEC. 302. TEMPORARY EXTENSION OF EXTENDED BENEFIT PROVISIONS.
(a) In General.--Section 2005 of the Assistance for
Unemployed Workers and Struggling Families Act, as contained
in Public Law 111-5 (26 U.S.C. 3304 note), is amended--
(1) by striking ``December 31, 2013'' each place it appears
and inserting ``June 30, 2014''; and
(2) in subsection (c), by striking ``June 30, 2014'' and
inserting ``December 31, 2014''.
(b) Extension of Matching for States With No Waiting
Week.--Section 5 of the Unemployment Compensation Extension
Act of 2008 (Public Law 110-449; 26 U.S.C. 3304 note) is
amended by striking ``June 30, 2014'' and inserting
``December 31, 2014''.
(c) Extension of Modification of Indicators Under the
Extended Benefit Program.--Section 203 of the Federal-State
Extended Unemployment Compensation Act of 1970 (26 U.S.C.
3304 note) is amended--
(1) in subsection (d), by striking ``December 31, 2013''
and inserting ``June 30, 2014''; and
(2) in subsection (f)(2), by striking ``December 31, 2013''
and inserting ``June 30, 2014''.
(d) Effective Date.--The amendments made by this section
shall take effect as if included in the enactment of the
American Taxpayer Relief Act of 2012 (Public Law 112-240).
SEC. 303. EXTENSION OF FUNDING FOR REEMPLOYMENT SERVICES AND
REEMPLOYMENT AND ELIGIBILITY ASSESSMENT
ACTIVITIES.
(a) In General.--Section 4004(c)(2)(A) of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304
note) is amended by striking ``through fiscal year 2014'' and
inserting ``through the second quarter of fiscal year 2015''.
(b) Effective Date.--The amendments made by this section
shall take effect as if included in the enactment of the
American Taxpayer Relief Act of 2012 (Public Law 112-240).
SEC. 304. ADDITIONAL EXTENDED UNEMPLOYMENT BENEFITS UNDER THE
RAILROAD UNEMPLOYMENT INSURANCE ACT.
(a) Extension.--Section 2(c)(2)(D)(iii) of the Railroad
Unemployment Insurance Act (45 U.S.C. 352(c)(2)(D)(iii)) is
amended--
(1) by striking ``June 30, 2013'' and inserting ``December
31, 2013''; and
(2) by striking ``December 31, 2013'' and inserting ``June
30, 2014''.
(b) Clarification on Authority to Use Funds.--Funds
appropriated under either the first or second sentence of
clause (iv) of section 2(c)(2)(D) of the Railroad
Unemployment Insurance Act shall be available to cover the
cost of additional extended unemployment benefits provided
under such section 2(c)(2)(D) by reason of the amendments
made by subsection (a) as well as to cover the cost of such
benefits provided under such section 2(c)(2)(D), as in effect
on the day before the date of enactment of this Act.
(c) Funding for Administration.--Out of any funds in the
Treasury not otherwise appropriated, there are appropriated
to the Railroad Retirement Board $125,000 for administrative
expenses associated with the payment of additional extended
unemployment benefits provided under section 2(c)(2)(D) of
the Railroad Unemployment Insurance Act by reason of the
amendments made by subsection (a), to remain available until
expended.
SEC. 305. REPEAL OF NONREDUCTION RULE UNDER THE EMERGENCY
UNEMPLOYMENT COMPENSATION PROGRAM.
(a) In General.--Subsection (g) of section 4001 of the
Supplemental Appropriations Act, 2008 (Public Law 110-252; 26
U.S.C. 3304 note) is repealed.
(b) Effective Date.--The amendment made by subsection (a)
shall apply with respect to weeks of unemployment beginning
on or after the date of the enactment of this Act.
(c) Permitting a Subsequent Agreement.--Nothing in title IV
of the Supplemental Appropriations Act, 2008 (Public Law 110-
252; 26 U.S.C. 3304 note) shall preclude a State whose
agreement under such title was terminated from entering into
a subsequent agreement under such title on or after the date
of the enactment of this Act if the State, taking into
account the application of the amendment made by subsection
(a), would otherwise meet the requirements for an agreement
under such title.
TITLE IV--OTHER PROVISIONS
SEC. 401. DISQUALIFICATION ON RECEIPT OF DISABILITY INSURANCE
BENEFITS IN A MONTH FOR WHICH UNEMPLOYMENT
COMPENSATION IS RECEIVED.
(a) In General.--Section 223(d)(4) of the Social Security
Act (42 U.S.C. 423(d)(4)) is amended by adding at the end the
following:
``(C)(i) If for any month an individual is entitled to
unemployment compensation, such individual shall be deemed to
have engaged in substantial gainful activity for such month.
``(ii) For purposes of clause (i), the term `unemployment
compensation' means--
``(I) `regular compensation', `extended compensation', and
`additional compensation' (as such terms are defined by
section 205 of the Federal-State Extended Unemployment
Compensation Act (26 U.S.C. 3304 note)); and
``(II) trade adjustment assistance under title II of the
Trade Act of 1974 (19 U.S.C. 2251 et seq.).''.
(b) Trial Work Period.--Section 222(c) of the Social
Security Act (42 U.S.C. 422(c)) is amended by adding at the
end the following:
``(6)(A) For purposes of this subsection, an individual
shall be deemed to have rendered services in a month if the
individual is entitled to unemployment compensation for such
month.
``(B) For purposes of subparagraph (A), the term
`unemployment compensation' means--
``(i) `regular compensation', `extended compensation', and
`additional compensation' (as such terms are defined by
section 205 of the Federal-State Extended Unemployment
Compensation Act (26 U.S.C. 3304 note)); and
``(ii) trade adjustment assistance under title II of the
Trade Act of 1974 (19 U.S.C. 2251 et seq.).''.
(c) Data Matching.--The Commissioner of Social Security
shall implement the amendments made by this section using
appropriate electronic data.
(d) Effective Date.--The amendments made by this section
shall apply with respect to months after March 2014.
______
SA 2626. Mr. SESSIONS submitted an amendment intended to be proposed
by him to the bill S. 1845, to provide for
[[Page S183]]
the extension of certain unemployment benefits, and for other purposes;
which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. __. ACCOUNTABILITY THROUGH ELECTRONIC VERIFICATION.
(a) Short Title.--This section may be cited as the
``Accountability Through Electronic Verification Act''.
(b) Permanent Reauthorization.--Section 401(b) of the
Illegal Immigration Reform and Immigrant Responsibility Act
of 1996 (division C of Public Law 104-208; 8 U.S.C. 1324a
note) is amended by striking ``Unless the Congress otherwise
provides, the Secretary of Homeland Security shall terminate
a pilot program on September 30, 2015.''.
(c) Mandatory Use of E-Verify.--Section 402 of the Illegal
Immigration Reform and Immigrant Responsibility Act of 1996
(8 U.S.C. 1324a note) is amended--
(1) in subsection (e)--
(A) in paragraph (1)--
(i) by amending subparagraph (A) to read as follows:
``(A) Executive departments and agencies.--Each department
and agency of the Federal Government shall participate in E-
Verify by complying with the terms and conditions set forth
in this section.''; and
(ii) in subparagraph (B), by striking ``, that conducts
hiring in a State'' and all that follows and inserting
``shall participate in E-Verify by complying with the terms
and conditions set forth in this section.'';
(B) by redesignating paragraphs (2) and (3) as paragraphs
(4) and (5), respectively; and
(C) by inserting after paragraph (1) the following:
``(2) United states contractors.--Any person, employer, or
other entity that enters into a contract with the Federal
Government shall participate in E-Verify by complying with
the terms and conditions set forth in this section.
``(3) Designation of critical employers.--Not later than 7
days after the date of the enactment of this paragraph, the
Secretary of Homeland Security shall--
``(A) conduct an assessment of employers that are critical
to the homeland security or national security needs of the
United States;
``(B) designate and publish a list of employers and classes
of employers that are deemed to be critical pursuant to the
assessment conducted under subparagraph (A); and
``(C) require that critical employers designated pursuant
to subparagraph (B) participate in E-Verify by complying with
the terms and conditions set forth in this section not later
than 30 days after the Secretary makes such designation.''.
(2) by redesignating subsection (f) as subsection (g); and
(3) by inserting after subsection (e) the following:
``(f) Mandatory Participation in E-Verify.--
``(1) In general.--Subject to paragraphs (2) and (3), all
employers in the United States shall participate in E-Verify,
with respect to all employees recruited, referred, or hired
by such employer on or after the date that is 1 year after
the date of the enactment of this subsection.
``(2) Use of contract labor.--Any employer who uses a
contract, subcontract, or exchange to obtain the labor of an
individual in the United States shall certify in such
contract, subcontract, or exchange that the employer uses E-
Verify. If such certification is not included in a contract,
subcontract, or exchange, the employer shall be deemed to
have violated paragraph (1).
``(3) Interim mandatory participation.--
``(A) In general.--Before the date set forth in paragraph
(1), the Secretary of Homeland Security shall require any
employer or class of employers to participate in E-Verify,
with respect to all employees recruited, referred, or hired
by such employer if the Secretary has reasonable cause to
believe that the employer is or has been engaged in a
material violation of section 274A of the Immigration and
Nationality Act (8 U.S.C. 1324a).
``(B) Notification.--Not later than 14 days before an
employer or class of employers is required to begin
participating in E-Verify pursuant to subparagraph (A), the
Secretary shall provide such employer or class of employers
with--
``(i) written notification of such requirement; and
``(ii) appropriate training materials to facilitate
compliance with such requirement.''.
(d) Consequences of Failure to Participate.--
(1) In general.--Section 402(e)(5) of the Illegal
Immigration Reform and Immigrant Responsibility Act of 1996
(8 U.S.C. 1324a note), as redesignated by subsection
(c)(1)(B), is amended to read as follows:
``(5) Consequences of failure to participate.--If a person
or other entity that is required to participate in E-Verify
fails to comply with the requirements under this title with
respect to an individual--
``(A) such failure shall be treated as a violation of
section 274A(a)(1)(B) with respect to such individual; and
``(B) a rebuttable presumption is created that the person
or entity has violated section 274A(a)(1)(A).''.
(2) Penalties.--Section 274A of the Immigration and
Nationality Act (8 U.S.C. 1324a) is amended--
(A) in subsection (e)--
(i) in paragraph (4)--
(I) in subparagraph (A), in the matter preceding clause
(i), by inserting ``, subject to paragraph (10),'' after ``in
an amount'';
(II) in subparagraph (A)(i), by striking ``not less than
$250 and not more than $2,000'' and inserting ``not less than
$2,500 and not more than $5,000'';
(III) in subparagraph (A)(ii), by striking ``not less than
$2,000 and not more than $5,000'' and inserting ``not less
than $5,000 and not more than $10,000'';
(IV) in subparagraph (A)(iii), by striking ``not less than
$3,000 and not more than $10,000'' and inserting ``not less
than $10,000 and not more than $25,000''; and
(V) by amending subparagraph (B) to read as follows:
``(B) may require the person or entity to take such other
remedial action as is appropriate.'';
(ii) in paragraph (5)--
(I) by inserting ``, subject to paragraphs (10) through
(12),'' after ``in an amount'';
(II) by striking ``$100'' and inserting ``$1,000'';
(III) by striking ``$1,000'' and inserting ``$25,000'';
(IV) by striking ``the size of the business of the employer
being charged, the good faith of the employer'' and inserting
``the good faith of the employer being charged''; and
(V) by adding at the end the following: ``Failure by a
person or entity to utilize the employment eligibility
verification system as required by law, or providing
information to the system that the person or entity knows or
reasonably believes to be false, shall be treated as a
violation of subsection (a)(1)(A).''; and
(iii) by adding at the end the following:
``(10) Exemption from penalty.--In the case of imposition
of a civil penalty under paragraph (4)(A) with respect to a
violation of subsection (a)(1)(A) or (a)(2) for hiring or
continuation of employment or recruitment or referral by
person or entity and in the case of imposition of a civil
penalty under paragraph (5) for a violation of subsection
(a)(1)(B) for hiring or recruitment or referral by a person
or entity, the penalty otherwise imposed may be waived or
reduced if the violator establishes that the violator acted
in good faith.
``(11) Authority to debar employers for certain
violations.--
``(A) In general.--If a person or entity is determined by
the Secretary of Homeland Security to be a repeat violator of
paragraph (1)(A) or (2) of subsection (a), or is convicted of
a crime under this section, such person or entity may be
considered for debarment from the receipt of Federal
contracts, grants, or cooperative agreements in accordance
with the debarment standards and pursuant to the debarment
procedures set forth in the Federal Acquisition Regulation.
``(B) Does not have contract, grant, agreement.--If the
Secretary of Homeland Security or the Attorney General wishes
to have a person or entity considered for debarment in
accordance with this paragraph, and such an person or entity
does not hold a Federal contract, grant or cooperative
agreement, the Secretary or Attorney General shall refer the
matter to the Administrator of General Services to determine
whether to list the person or entity on the List of Parties
Excluded from Federal Procurement, and if so, for what
duration and under what scope.
``(C) Has contract, grant, agreement.--If the Secretary of
Homeland Security or the Attorney General wishes to have a
person or entity considered for debarment in accordance with
this paragraph, and such person or entity holds a Federal
contract, grant or cooperative agreement, the Secretary or
Attorney General shall advise all agencies or departments
holding a contract, grant, or cooperative agreement with the
person or entity of the Government's interest in having the
person or entity considered for debarment, and after
soliciting and considering the views of all such agencies and
departments, the Secretary or Attorney General may waive the
operation of this paragraph or refer the matter to any
appropriate lead agency to determine whether to list the
person or entity on the List of Parties Excluded from Federal
Procurement, and if so, for what duration and under what
scope.
``(D) Review.--Any decision to debar a person or entity
under in accordance with this paragraph shall be reviewable
pursuant to part 9.4 of the Federal Acquisition
Regulation.''; and
(B) in subsection (f)--
(i) by amending paragraph (1) to read as follows:
``(1) Criminal penalty.--Any person or entity which engages
in a pattern or practice of violations of subsection (a)(1)
or (2) shall be fined not more than $15,000 for each
unauthorized alien with respect to which such a violation
occurs, imprisoned for not less than 1 year and not more than
10 years, or both, notwithstanding the provisions of any
other Federal law relating to fine levels.''; and
(ii) in paragraph (2), by striking ``Attorney General''
each place it appears and inserting ``Secretary of Homeland
Security''.
(e) Preemption; Liability.--Section 402 of the Illegal
Immigration Reform and Immigrant Responsibility Act of 1996
(8 U.S.C. 1324a note), as amended by this section, is further
amended by adding at the end the following:
``(h) Limitation on State Authority.--
[[Page S184]]
``(1) Preemption.--A State or local government may not
prohibit a person or other entity from verifying the
employment authorization of new hires or current employees
through E-Verify.
``(2) Liability.--A person or other entity that
participates in E-Verify may not be held liable under any
Federal, State, or local law for any employment-related
action taken with respect to the wrongful termination of an
individual in good faith reliance on information provided
through E-Verify.''.
(f) Expanded Use of E-Verify.--Section 403(a)(3)(A) of the
Illegal Immigration Reform and Immigrant Responsibility Act
of 1996 (8 U.S.C. 1324a note) is amended to read as follows:
``(A) In general.--
``(i) Before hiring.--The person or other entity may verify
the employment eligibility of an individual through E-Verify
before the individual is hired, recruited, or referred if the
individual consents to such verification. If an employer
receives a tentative nonconfirmation for an individual, the
employer shall comply with procedures prescribed by the
Secretary, including--
``(I) providing the individual employees with private,
written notification of the finding and written referral
instructions;
``(II) allowing the individual to contest the finding; and
``(III) not taking adverse action against the individual if
the individual chooses to contest the finding.
``(ii) After employment offer.--The person or other entity
shall verify the employment eligibility of an individual
through E-Verify not later than 3 days after the date of the
hiring, recruitment, or referral, as the case may be.
``(iii) Existing employees.--Not later than 3 years after
the date of the enactment of the Accountability Through
Electronic Verification Act, the Secretary shall require all
employers to use E-Verify to verify the identity and
employment eligibility of any individual who has not been
previously verified by the employer through E-Verify.''.
(g) Reverification.--Section 403(a) of the Illegal
Immigration Reform and Immigrant Responsibility Act of 1996
(8 U.S.C. 1324a note) is amended by adding at the end the
following:
``(5) Reverification.--Each person or other entity
participating in E-Verify shall use the E-Verify confirmation
system to reverify the work authorization of any individual
not later than 3 days after the date on which such
individual's employment authorization is scheduled to expire
(as indicated by the Secretary or the documents provided to
the employer pursuant to section 274A(b) of the Immigration
and Nationality Act (8 U.S.C. 1324a(b))), in accordance with
the procedures set forth in this subsection and section
402.''.
(h) Holding Employers Accountable.--
(1) Consequences of nonconfirmation.--Section 403(a)(4)(C)
of the Illegal Immigration Reform and Immigrant
Responsibility Act of 1996 (8 U.S.C. 1324a note) is amended
to read as follows:
``(C) Consequences of nonconfirmation.--
``(i) Termination and notification.--If the person or other
entity receives a final nonconfirmation regarding an
individual, the employer shall immediately--
``(I) terminate the employment, recruitment, or referral of
the individual; and
``(II) submit to the Secretary any information relating to
the individual that the Secretary determines would assist the
Secretary in enforcing or administering United States
immigration laws.
``(ii) Consequence of continued employment.--If the person
or other entity continues to employ, recruit, or refer the
individual after receiving final nonconfirmation, a
rebuttable presumption is created that the employer has
violated section 274A of the Immigration and Nationality Act
(8 U.S.C. 1324a).''.
(2) Interagency nonconfirmation report.--Section 405 of the
Illegal Immigration Reform and Immigrant Responsibility Act
of 1996 (8 U.S.C. 1324a note) is amended by adding at the end
the following:
``(c) Interagency Nonconfirmation Report.--
``(1) In general.--The Director of U.S. Citizenship and
Immigration Services shall submit a weekly report to the
Assistant Secretary of Immigration and Customs Enforcement
that includes, for each individual who receives final
nonconfirmation through E-Verify--
``(A) the name of such individual;
``(B) his or her Social Security number or alien file
number;
``(C) the name and contact information for his or her
current employer; and
``(D) any other critical information that the Assistant
Secretary determines to be appropriate.
``(2) Use of weekly report.--The Secretary of Homeland
Security shall use information provided under paragraph (1)
to enforce compliance of the United States immigration
laws.''.
(i) Information Sharing.--The Commissioner of Social
Security, the Secretary of Homeland Security, and the
Secretary of the Treasury shall jointly establish a program
to share information among such agencies that may or could
lead to the identification of unauthorized aliens (as defined
in section 274A(h)(3) of the Immigration and Nationality
Act), including any no-match letter and any information in
the earnings suspense file.
(j) Form I-9 Process.--Not later than 9 months after date
of the enactment of this Act, the Secretary of Homeland
Security shall submit a report to Congress that contains
recommendations for--
(1) modifying and simplifying the process by which
employers are required to complete and retain a Form I-9 for
each employee pursuant to section 274A of the Immigration and
Nationality Act (8 U.S.C. 1324a); and
(2) eliminating the process described in paragraph (1).
(k) Algorithm.--Section 404(d) of the Illegal Immigration
Reform and Immigrant Responsibility Act of 1996 (8 U.S.C.
1324a note) is amended to read as follows:
``(d) Design and Operation of System.--E-Verify shall be
designed and operated--
``(1) to maximize its reliability and ease of use by
employers;
``(2) to insulate and protect the privacy and security of
the underlying information;
``(3) to maintain appropriate administrative, technical,
and physical safeguards to prevent unauthorized disclosure of
personal information;
``(4) to respond accurately to all inquiries made by
employers on whether individuals are authorized to be
employed;
``(5) to register any times when E-Verify is unable to
receive inquiries;
``(6) to allow for auditing use of the system to detect
fraud and identify theft;
``(7) to preserve the security of the information in all of
the system by--
``(A) developing and using algorithms to detect potential
identity theft, such as multiple uses of the same identifying
information or documents;
``(B) developing and using algorithms to detect misuse of
the system by employers and employees;
``(C) developing capabilities to detect anomalies in the
use of the system that may indicate potential fraud or misuse
of the system; and
``(D) auditing documents and information submitted by
potential employees to employers, including authority to
conduct interviews with employers and employees;
``(8) to confirm identity and work authorization through
verification of records maintained by the Secretary, other
Federal departments, States, the Commonwealth of the Northern
Mariana Islands, or an outlying possession of the United
States, as determined necessary by the Secretary, including--
``(A) records maintained by the Social Security
Administration;
``(B) birth and death records maintained by vital
statistics agencies of any State or other jurisdiction in the
United States;
``(C) passport and visa records (including photographs)
maintained by the Department of State; and
``(D) State driver's license or identity card information
(including photographs) maintained by State department of
motor vehicles;
``(9) to electronically confirm the issuance of the
employment authorization or identity document; and
``(10) to display the digital photograph that the issuer
placed on the document so that the employer can compare the
photograph displayed to the photograph on the document
presented by the employee or, in exceptional cases, if a
photograph is not available from the issuer, to provide for a
temporary alternative procedure, specified by the Secretary,
for confirming the authenticity of the document.''.
(l) Identity Theft.--Section 1028 of title 18, United
States Code, is amended--
(1) in subsection (a)(7), by striking ``of another person''
and inserting ``that is not his or her own''; and
(2) in subsection (b)(3)--
(A) in subparagraph (B), by striking ``or'' at the end;
(B) in subparagraph (C), by adding ``or'' at the end; and
(C) by adding at the end the following:
``(D) to facilitate or assist in harboring or hiring
unauthorized workers in violation of section 274, 274A, or
274C of the Immigration and Nationality Act (8 U.S.C. 1324,
1324a, and 1324c).''.
(m) Small Business Demonstration Program.--Section 403 of
the Illegal Immigration Reform and Immigrant Responsibility
Act of 1996 (8 U.S.C. 1324a note) is amended--
(1) by redesignating subsection (d) as subsection (e); and
(2) by inserting after subsection (c) the following:
``(d) Small Business Demonstration Program.--Not later than
9 months after the date of the enactment of the
Accountability Through Electronic Verification Act, the
Director of U.S. Citizenship and Immigration Services shall
establish a demonstration program that assists small
businesses in rural areas or areas without internet
capabilities to verify the employment eligibility of newly
hired employees solely through the use of publicly accessible
internet terminals.''.
____________________