[Congressional Record (Bound Edition), Volume 160 (2014), Part 1]
[Senate]
[Pages 230-274]
[From the U.S. 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;
       (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

[[Page 231]]

       (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.

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       ``(b) Economic Freedom Zone Asset.--For purposes of this 
     section--
       ``(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-

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     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.
       ``(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

[[Page 234]]

     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.
       (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

[[Page 235]]

     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.
       ``(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

[[Page 236]]

     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:

     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

[[Page 237]]

     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.
       (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).

[[Page 238]]

       (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.

     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

[[Page 239]]

       ``(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 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-

[[Page 240]]

     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 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)).'';

[[Page 241]]

       (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;'';
       (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:

[[Page 242]]

       ``(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).'';
       (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

[[Page 243]]

       ``(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).
       ``(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)--

[[Page 244]]

       (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, 
     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

[[Page 245]]

     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 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

[[Page 246]]

       (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 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

[[Page 247]]

     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 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--

[[Page 248]]

       ``(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).
       ``(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

[[Page 249]]

     (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 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

[[Page 250]]

     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;
       ``(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.'';

[[Page 251]]

       (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 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.

[[Page 252]]

       ``(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 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

[[Page 253]]

     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''.

     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;

[[Page 254]]

       ``(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 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

[[Page 255]]

     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'';
       (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

[[Page 256]]

     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:
       ``(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.'';

[[Page 257]]

       (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 258]]



     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

[[Page 259]]

       ``(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
       ``(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.

[[Page 260]]



                    ``Subtitle A--Federal Provisions

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

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

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     or policy based on a State or outlying area interpretation of 
     a Federal statute, regulation, or guideline), the State or 
     outlying area shall identify, to eligible providers, the rule 
     or policy as being imposed by the State or outlying area.

     ``SEC. 224. STATE PLAN.

       ``(a) 3-Year Plans.--
       ``(1) In general.--Each eligible agency desiring a grant 
     under this title for any fiscal year shall submit to, or have 
     on file with, the Secretary a 3-year State plan.
       ``(2) State unified plan.--The eligible agency may submit 
     the State plan as part of a State unified plan described in 
     section 501.
       ``(b) Plan Contents.--The eligible agency shall include in 
     the State plan or any revisions to the State plan--
       ``(1) an objective assessment of the needs of individuals 
     in the State or outlying area for adult education and family 
     literacy education programs, including individuals most in 
     need or hardest to serve;
       ``(2) a description of the adult education and family 
     literacy education programs that will be carried out with 
     funds received under this title;
       ``(3) an assurance that the funds received under this title 
     will not be expended for any purpose other than for 
     activities under this title;
       ``(4) a description of how the eligible agency will 
     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

[[Page 262]]

     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 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;

[[Page 263]]

       ``(ii) research and demonstration; and
       ``(iii) programs and technical assistance.
       ``(2) Information to be confidential.--
       ``(A) In general.--No officer or employee of the Federal 
     Government or agent of the Federal Government may--
       ``(i) use any submission that is furnished for exclusively 
     statistical purposes under the provisions of this section for 
     any purpose other than the statistical purposes for which the 
     submission is furnished;
       ``(ii) disclose to the public any publication or media 
     transmittal of the data contained in the submission described 
     in clause (i) that permits information concerning an 
     individual subject to be reasonably inferred by either direct 
     or indirect means; or
       ``(iii) permit anyone other than a sworn officer, employee, 
     or agent of any Federal department or agency, or a contractor 
     (including an employee of a contractor) of such department or 
     agency, to examine an individual submission described in 
     clause (i),

     without the consent of the individual, agency, or other 
     person who is the subject of the submission or provides that 
     submission.
       ``(B) Immunity from legal process.--Any submission 
     (including any data derived from the submission) that is 
     collected and retained by a Federal department or agency, or 
     an officer, employee, agent, or contractor of such a 
     department or agency, for exclusively statistical purposes 
     under this section shall be immune from the legal process and 
     shall not, without the consent of the individual, agency, or 
     other person who is the subject of the submission or provides 
     that submission, be admitted as evidence or used for any 
     purpose in any action, suit, or other judicial or 
     administrative proceeding.
       ``(C) Rule of construction.--Nothing in this section shall 
     be construed to provide immunity from the legal process for 
     such submission (including any data derived from the 
     submission) if the submission is in the possession of any 
     person, agency, or entity other than the Federal Government 
     or an officer, employee, agent, or contractor of the Federal 
     Government, or if the submission is independently collected, 
     retained, or produced for purposes other than the purposes of 
     this Act.
       ``(b) System Responsibilities.--
       ``(1) In general.--The workforce and labor market 
     information system described in subsection (a) shall be 
     planned, administered, overseen, and evaluated through a 
     cooperative governance structure involving the Federal 
     Government and States.
       ``(2) Duties.--The Secretary, with respect to data 
     collection, analysis, and dissemination of workforce and 
     labor market information for the system, shall carry out the 
     following duties:
       ``(A) Assign responsibilities within the Department of 
     Labor for elements of the workforce and labor market 
     information system described in subsection (a) to ensure that 
     all statistical and administrative data collected is 
     consistent with appropriate Bureau of Labor Statistics 
     standards and definitions.
       ``(B) Actively seek the cooperation of other Federal 
     agencies to establish and maintain mechanisms for ensuring 
     complementarity and nonduplication in the development and 
     operation of statistical and administrative data collection 
     activities.
       ``(C) Eliminate gaps and duplication in statistical 
     undertakings, with the systemization of wage surveys as an 
     early priority.
       ``(D) In collaboration with the Bureau of Labor Statistics 
     and States, develop and maintain the elements of the 
     workforce and labor market information system described in 
     subsection (a), including the development of consistent 
     procedures and definitions for use by the States in 
     collecting the data and information described in 
     subparagraphs (A) and (B) of subsection (a)(1).
       ``(E) Establish procedures for the system to ensure that--
       ``(i) such data and information are timely;
       ``(ii) paperwork and reporting for the system are reduced 
     to a minimum; and
       ``(iii) States and localities are fully involved in the 
     development and continuous improvement of the system at all 
     levels.
       ``(c) National Electronic Tools To Provide Services.--The 
     Secretary is authorized to assist in the development of 
     national electronic tools that may be used to facilitate the 
     delivery of work ready services described in section 
     134(c)(2) 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

[[Page 264]]

     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 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.--

[[Page 265]]

       ``(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'';
       (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.

[[Page 266]]

``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.

               ``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)--

[[Page 267]]

       (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 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.

[[Page 268]]

       ``(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 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

[[Page 269]]

       (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
       (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

[[Page 270]]

     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.

                    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.

[[Page 271]]



     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.

                   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''.

[[Page 272]]

       (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 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:

[[Page 273]]

       ``(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.--
       ``(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;

[[Page 274]]

       ``(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.''.

                          ____________________