[Congressional Record (Bound Edition), Volume 160 (2014), Part 4]
[Senate]
[Pages 5477-5515]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 2958. Mr. COATS (for himself, Ms. Ayotte, Mr. Toomey, and Mr. 
Corker) submitted an amendment intended to be proposed by him to the 
bill H.R. 3979, to amend the Internal Revenue Code of 1986 to ensure 
that emergency services volunteers are not taken into account as 
employees under the shared responsibility requirements contained in the 
Patient Protection and Affordable Care Act; which was ordered to lie on 
the table; as follows:

       At the appropriate place, insert the following:

     SEC. 8. REQUIREMENT THAT INDIVIDUALS RECEIVING EMERGENCY 
                   UNEMPLOYMENT COMPENSATION BE ACTIVELY ENGAGED 
                   IN A SYSTEMATIC AND SUSTAINED EFFORT TO OBTAIN 
                   SUITABLE WORK.

       (a) In General.--Subsection (h) of section 4001 of the 
     Supplemental Appropriations Act, 2008 (Public Law 110-252; 26 
     U.S.C. 3304 note) is amended to read as follows:
       ``(h) Actively Seeking Work.--
       ``(1) In general.--For purposes of subsection (b)(4), 
     payment of emergency unemployment compensation shall not be 
     made to any individual for any week of unemployment--
       ``(A) during which the individual fails to accept any offer 
     of suitable work (as defined in paragraph (3)) or fails to 
     apply for any suitable work to which the individual was 
     referred by the State agency; or
       ``(B) during which the individual fails to actively engage 
     in seeking work, unless such individual is not actively 
     engaged in seeking work because such individual is, as 
     determined in accordance with State law--
       ``(i) before any court of the United States or any State 
     pursuant to a lawfully issued summons to appear for jury duty 
     (as such term may be defined by the Secretary); or
       ``(ii) hospitalized for treatment of an emergency or a 
     life-threatening condition (as such term may be defined by 
     the Secretary),

     if such exemptions in clauses (i) and (ii) apply to 
     recipients of regular benefits, and the State chooses to 
     apply such exemptions for recipients of emergency 
     unemployment benefits.
       ``(2) Period of ineligibility.--If any individual is 
     ineligible for emergency unemployment compensation for any 
     week by reason of a failure described in subparagraph (A) or 
     (B) of paragraph (1), the individual shall be ineligible to 
     receive emergency unemployment compensation for any week 
     which begins during a period which--
       ``(A) begins with the week following the week in which such 
     failure occurs; and
       ``(B) does not end until such individual has been employed 
     during at least 4 weeks which begin after such failure and 
     the total of the remuneration earned by the individual for 
     being so employed is not less than the product of 4 
     multiplied by the individual's average weekly benefit amount 
     for the individual's benefit year.
       ``(3) Suitable work.--For purposes of this subsection, the 
     term `suitable work' means, with respect to any individual, 
     any work which is within such individual's capabilities, 
     except that, if the individual furnishes evidence 
     satisfactory to the State agency that such individual's 
     prospects for obtaining work in his customary occupation 
     within a reasonably short period are good, the determination 
     of whether any work is suitable work with respect to such 
     individual shall be made in accordance with the applicable 
     State law.
       ``(4) Exception.--Extended compensation shall not be denied 
     under subparagraph (A) of paragraph (1) to any individual for 
     any week by reason of a failure to accept an offer of, or 
     apply for, suitable work--
       ``(A) if the gross average weekly remuneration payable to 
     such individual for the position does not exceed the sum of--
       ``(i) the individual's average weekly benefit amount for 
     his benefit year, plus
       ``(ii) the amount (if any) of supplemental unemployment 
     compensation benefits (as defined in section 501(c)(17)(D) of 
     the Internal Revenue Code of 1986) payable to such individual 
     for such week;
       ``(B) if the position was not offered to such individual in 
     writing and was not listed with the State employment service;
       ``(C) if such failure would not result in a denial of 
     compensation under the provisions of the applicable State law 
     to the extent that such provisions are not inconsistent with 
     the provisions of paragraphs (3) and (5); or
       ``(D) if the position pays wages less than the higher of--
       ``(i) the minimum wage provided by section 6(a)(1) of the 
     Fair Labor Standards Act of 1938, without regard to any 
     exemption; or
       ``(ii) any applicable State or local minimum wage.
       ``(5) Actively engaged in seeking work.--For purposes of 
     this subsection, an individual shall be treated as actively 
     engaged in seeking work during any week if--
       ``(A) the individual has engaged in a systematic and 
     sustained effort to obtain work during such week, and
       ``(B) the individual provides tangible evidence to the 
     State agency that he has engaged in such an effort during 
     such week.
       ``(6) Referral.--The State agency shall provide for 
     referring applicants for emergency unemployment benefits to 
     any suitable work to which paragraph (4) would not apply.''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.
                                 ______
                                 
  SA 2959. Mr. THUNE submitted an amendment intended to be proposed by 
him to the bill H.R. 3979, to amend the Internal Revenue Code of 1986 
to ensure that emergency services volunteers are not taken into account 
as employees under the shared responsibility requirements contained in 
the Patient Protection and Affordable Care Act; which was ordered to 
lie on the table; as follows:

       At the end add the following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Good Jobs, 
     Good Wages, and Good Hours Act''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                            TITLE I--ENERGY

          Subtitle A--Keystone XL and Natural Gas Exportation

Sec. 101. Keystone XL permit approval.
Sec. 102. Expedited approval of exportation of natural gas to Ukraine 
              and North Atlantic Treaty Organization member countries 
              and Japan.

                      Subtitle B--Saving Coal Jobs

Sec. 111. Short title.

                   PART I--Prohibition on Energy Tax

Sec. 121. Prohibition on energy tax.

                            PART II--Permits

Sec. 131. National pollutant discharge elimination system.
Sec. 132. Permits for dredged or fill material.
Sec. 133. Impacts of Environmental Protection Agency regulatory 
              activity on employment and economic activity.
Sec. 134. Identification of waters protected by the Clean Water Act.
Sec. 135. Limitations on authority to modify State water quality 
              standards.
Sec. 136. State authority to identify waters within boundaries of the 
              State.

           Subtitle C--Point of Order Against Taxes on Carbon

Sec. 141. Point of order against legislation that would create a tax or 
              fee on carbon emissions.

                            TITLE II--HEALTH

Sec. 201. Forty hours is full time.
Sec. 202. Repeal of the individual mandate.
Sec. 203. Repeal of medical device excise tax.
Sec. 204. Long-term unemployed individuals not taken into account for 
              employer health care coverage mandate.
Sec. 205. Employees with health coverage under TRICARE or the Veterans 
              Administration may be exempted from employer mandate 
              under Patient Protection and Affordable Care Act.
Sec. 206. Prohibition on certain taxes, fees, and penalties enacted 
              under the Affordable Care Act.
Sec. 207. Repeal of the Patient Protection and Affordable Care Act.

 TITLE III--INCREASING EMPLOYMENT AND DECREASING GOVERNMENT REGULATION

               Subtitle A--Small Business Tax Provisions

Sec. 301. Permanent extension of increased expensing limitations and 
              treatment of certain real property as section 179 
              property.
Sec. 302. Permanent full exclusion applicable to qualified small 
              business stock.
Sec. 303. Permanent increase in deduction for start-up expenditures.
Sec. 304. Permanent extension of reduction in S-corporation recognition 
              period for built-in gains tax.
Sec. 305. Permanent allowance of deduction for health insurance costs 
              in computing self-employment taxes.
Sec. 306. Clarification of inventory and accounting rules for small 
              business.

               Subtitle B--Regulatory Accountability Act

Sec. 311. Short title.
Sec. 312. Definitions.
Sec. 313. Rule making.

[[Page 5478]]

Sec. 314. Agency guidance; procedures to issue major guidance; 
              presidential authority to issue guidelines for issuance 
              of guidance.
Sec. 315. Hearings; presiding employees; powers and duties; burden of 
              proof; evidence; record as basis of decision.
Sec. 316. Actions reviewable.
Sec. 317. Scope of review.
Sec. 318. Added definition.
Sec. 319. Effective date.

    TITLE IV--SUPPORTING KNOWLEDGE AND INVESTING IN LIFELONG SKILLS

Sec. 401. Short title.
Sec. 402. References.
Sec. 403. Application to fiscal years.

     Subtitle A--Amendments to the Workforce Investment Act of 1998

              Chapter 1--Workforce Investment Definitions

Sec. 406. Definitions.

      Chapter 2--Statewide and Local Workforce Investment Systems

Sec. 411. Purpose.
Sec. 412. State workforce investment boards.
Sec. 413. State plan.
Sec. 414. Local workforce investment areas.
Sec. 415. Local workforce investment boards.
Sec. 416. Local plan.
Sec. 417. Establishment of one-stop delivery system.
Sec. 418. Identification of eligible providers of training services.
Sec. 419. General authorization.
Sec. 420. State allotments.
Sec. 421. Within State allocations.
Sec. 422. Use of funds for employment and training activities.
Sec. 423. Performance accountability system.
Sec. 424. Authorization of appropriations.

                          Chapter 3--Job Corps

Sec. 426. Job Corps purposes.
Sec. 427. Job Corps definitions.
Sec. 428. Individuals eligible for the Job Corps.
Sec. 429. Recruitment, screening, selection, and assignment of 
              enrollees.
Sec. 430. Job Corps centers.
Sec. 431. Program activities.
Sec. 432. Counseling and job placement.
Sec. 433. Support.
Sec. 434. Operations.
Sec. 435. Community participation.
Sec. 436. Workforce councils.
Sec. 437. Technical assistance.
Sec. 438. Special provisions.
Sec. 439. Performance accountability management.

                      Chapter 4--National Programs

Sec. 441. Technical assistance.
Sec. 442. Evaluations.

                       Chapter 5--Administration

Sec. 446. Requirements and restrictions.
Sec. 447. Prompt allocation of funds.
Sec. 448. Fiscal controls; sanctions.
Sec. 449. Reports to Congress.
Sec. 450. Administrative provisions.
Sec. 451. State legislative authority.
Sec. 452. General program requirements.
Sec. 453. Federal agency staff and restrictions on political and 
              lobbying activities.

                     Chapter 6--State Unified Plan

Sec. 456. State unified plan.

       Subtitle B--Adult Education and Family Literacy Education

Sec. 461. Amendment.

            Subtitle C--Amendments to the Wagner-Peyser Act

Sec. 466. Amendments to the Wagner-Peyser Act.

             Subtitle D--Repeals and Conforming Amendments

Sec. 471. Repeals.
Sec. 472. Amendments to other laws.
Sec. 473. Conforming amendment to table of contents.

        Subtitle E--Amendments to the Rehabilitation Act of 1973

Sec. 476. Findings.
Sec. 477. Rehabilitation Services Administration.
Sec. 478. Definitions.
Sec. 479. Carryover.
Sec. 480. Traditionally underserved populations.
Sec. 481. State plan.
Sec. 482. Scope of services.
Sec. 483. Standards and indicators.
Sec. 484. Expenditure of certain amounts.
Sec. 485. Collaboration with industry.
Sec. 486. Reservation for expanded transition services.
Sec. 487. Client assistance program.
Sec. 488. Research.
Sec. 489. Title III amendments.
Sec. 490. Repeal of title VI.
Sec. 491. Title VII general provisions.
Sec. 492. Authorizations of appropriations.
Sec. 493. Conforming amendments.

             Subtitle F--Studies by the Comptroller General

Sec. 496. Study by the Comptroller General on exhausting Federal Pell 
              Grants before accessing WIA funds.
Sec. 497. Study by the Comptroller General on administrative cost 
              savings.

                            TITLE I--ENERGY

          Subtitle A--Keystone XL and Natural Gas Exportation

     SEC. 101. KEYSTONE XL PERMIT APPROVAL.

       (a) In General.--In accordance with clause 3 of section 8 
     of article I of the Constitution (delegating to Congress the 
     power to regulate commerce with foreign nations), TransCanada 
     Keystone Pipeline, L.P. is authorized to construct, connect, 
     operate, and maintain pipeline facilities for the import of 
     crude oil and other hydrocarbons at the United States-Canada 
     Border at Phillips County, Montana, in accordance with the 
     application filed with the Department of State on May 4, 
     2012.
       (b) Presidential Permit Not Required.--Notwithstanding 
     Executive Order No. 13337 (3 U.S.C. 301 note), Executive 
     Order No. 11423 (3 U.S.C. 301 note), section 301 of title 3, 
     United States Code, and any other Executive order or 
     provision of law, no presidential permit shall be required 
     for the facilities described in subsection (a).
       (c) Environmental Impact Statement.--The final 
     environmental impact statement issued by the Secretary of 
     State on August 26, 2011, the Final Evaluation Report issued 
     by the Nebraska Department of Environmental Quality on 
     January 3, 2013, and the Draft Supplemental Environmental 
     Impact Statement issued on March 1, 2013, regarding the crude 
     oil pipeline and appurtenant facilities associated with the 
     facilities described in subsection (a), shall be considered 
     to satisfy--
       (1) all requirements of the National Environmental Policy 
     Act of 1969 (42 U.S.C. 4321 et seq.); and
       (2) any other provision of law that requires Federal agency 
     consultation or review with respect to the facilities 
     described in subsection (a) and the related facilities in the 
     United States.
       (d) Permits.--Any Federal permit or authorization issued 
     before the date of enactment of this Act for the facilities 
     described in subsection (a), and the related facilities in 
     the United States shall remain in effect.
       (e) Federal Judicial Review.--The facilities described in 
     subsection (a), and the related facilities in the United 
     States, that are approved by this section, and any permit, 
     right-of-way, or other action taken to construct or complete 
     the project pursuant to Federal law, shall only be subject to 
     judicial review on direct appeal to the United States Court 
     of Appeals for the District of Columbia Circuit.

     SEC. 102. EXPEDITED APPROVAL OF EXPORTATION OF NATURAL GAS TO 
                   UKRAINE AND NORTH ATLANTIC TREATY ORGANIZATION 
                   MEMBER COUNTRIES AND JAPAN.

       (a) In General.--In accordance with clause 3 of section 8 
     of article I of the Constitution of the United States 
     (delegating to Congress the power to regulate commerce with 
     foreign nations), Congress finds that exports of natural gas 
     produced in the United States to Ukraine, member countries of 
     the North Atlantic Treaty Organization, and Japan is--
       (1) necessary for the protection of the essential security 
     interests of the United States; and
       (2) in the public interest pursuant to section 3 of the 
     Natural Gas Act (15 U.S.C. 717b).
       (b) Expedited Approval.--Section 3(c) of the Natural Gas 
     Act (15 U.S.C. 717b(c)) is amended by inserting ``, to 
     Ukraine, to a member country of the North Atlantic Treaty 
     Organization, or to Japan'' after ``trade in natural gas''.
       (c) Effective Date.--The amendment made by subsection (b) 
     shall apply to applications for the authorization to export 
     natural gas under section 3 of the Natural Gas Act (15 U.S.C. 
     717b) that are pending on, or filed on or after, the date of 
     the enactment of this Act.

                      Subtitle B--Saving Coal Jobs

     SEC. 111. SHORT TITLE.

       This subtitle may be cited as the ``Saving Coal Jobs Act of 
     2014''.

                   PART I--PROHIBITION ON ENERGY TAX

     SEC. 121. PROHIBITION ON ENERGY TAX.

       (a) Findings; Purposes.--
       (1) Findings.--Congress finds that--
       (A) on June 25, 2013, President Obama issued a Presidential 
     memorandum directing the Administrator of the Environmental 
     Protection Agency to issue regulations relating to power 
     sector carbon pollution standards for existing coal fired 
     power plants;
       (B) the issuance of that memorandum circumvents Congress 
     and the will of the people of the United States;
       (C) any action to control emissions of greenhouse gases 
     from existing coal fired power plants in the United States by 
     mandating a national energy tax would devastate major sectors 
     of the economy, cost thousands of jobs, and increase energy 
     costs for low-income households, small businesses, and 
     seniors on fixed income;
       (D) joblessness increases the likelihood of hospital 
     visits, illnesses, and premature deaths;
       (E) according to testimony on June 15, 2011, before the 
     Committee on Environment and Public Works of the Senate by 
     Dr. Harvey Brenner of Johns Hopkins University, ``The 
     unemployment rate is well established as a risk factor for 
     elevated illness and mortality rates in epidemiological 
     studies performed since the early 1980s. In addition to

[[Page 5479]]

     influences on mental disorder, suicide and alcohol abuse and 
     alcoholism, unemployment is also an important risk factor in 
     cardiovascular disease and overall decreases in life 
     expectancy.'';
       (F) according to the National Center for Health Statistics, 
     ``children in poor families were four times as likely to be 
     in fair or poor health as children that were not poor'';
       (G) any major decision that would cost the economy of the 
     United States millions of dollars and lead to serious 
     negative health effects for the people of the United States 
     should be debated and explicitly authorized by Congress, not 
     approved by a Presidential memorandum or regulations; and
       (H) any policy adopted by Congress should make United 
     States energy as clean as practicable, as quickly as 
     practicable, without increasing the cost of energy for 
     struggling families, seniors, low-income households, and 
     small businesses.
       (2) Purposes.--The purposes of this section are--
       (A) to ensure that--
       (i) a national energy tax is not imposed on the economy of 
     the United States; and
       (ii) struggling families, seniors, low-income households, 
     and small businesses do not experience skyrocketing 
     electricity bills and joblessness;
       (B) to protect the people of the United States, 
     particularly families, seniors, and children, from the 
     serious negative health effects of joblessness;
       (C) to allow sufficient time for Congress to develop and 
     authorize an appropriate mechanism to address the energy 
     needs of the United States and the potential challenges posed 
     by severe weather; and
       (D) to restore the legislative process and congressional 
     authority over the energy policy of the United States.
       (b) Presidential Memorandum.--Notwithstanding any other 
     provision of law, the head of a Federal agency shall not 
     promulgate any regulation relating to power sector carbon 
     pollution standards or any substantially similar regulation 
     on or after June 25, 2013, unless that regulation is 
     explicitly authorized by an Act of Congress.

                            PART II--PERMITS

     SEC. 131. NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM.

       (a) Applicability of Guidance.--Section 402 of the Federal 
     Water Pollution Control Act (33 U.S.C. 1342) is amended by 
     adding at the end the following:
       ``(s) Applicability of Guidance.--
       ``(1) Definitions.--In this subsection:
       ``(A) Guidance.--
       ``(i) In general.--The term `guidance' means draft, 
     interim, or final guidance issued by the Administrator.
       ``(ii) Inclusions.--The term `guidance' includes--

       ``(I) the comprehensive guidance issued by the 
     Administrator and dated April 1, 2010;
       ``(II) the proposed guidance entitled `Draft Guidance on 
     Identifying Waters Protected by the Clean Water Act' and 
     dated April 28, 2011;
       ``(III) the final guidance proposed by the Administrator 
     and dated July 21, 2011; and
       ``(IV) any other document or paper issued by the 
     Administrator through any process other than the notice and 
     comment rulemaking process.

       ``(B) New permit.--The term `new permit' means a permit 
     covering discharges from a structure--
       ``(i) that is issued under this section by a permitting 
     authority; and
       ``(ii) for which an application is--

       ``(I) pending as of the date of enactment of this 
     subsection; or
       ``(II) filed on or after the date of enactment of this 
     subsection.

       ``(C) Permitting authority.--The term `permitting 
     authority' means--
       ``(i) the Administrator; or
       ``(ii) a State, acting pursuant to a State program that is 
     equivalent to the program under this section and approved by 
     the Administrator.
       ``(2) Permits.--
       ``(A) In general.--Notwithstanding any other provision of 
     law, in making a determination whether to approve a new 
     permit or a renewed permit, the permitting authority--
       ``(i) shall base the determination only on compliance with 
     regulations issued by the Administrator or the permitting 
     authority; and
       ``(ii) shall not base the determination on the extent of 
     adherence of the applicant for the new permit or renewed 
     permit to guidance.
       ``(B) New permits.--If the permitting authority does not 
     approve or deny an application for a new permit by the date 
     that is 270 days after the date of receipt of the application 
     for the new permit, the applicant may operate as if the 
     application were approved in accordance with Federal law for 
     the period of time for which a permit from the same industry 
     would be approved.
       ``(C) Substantial completeness.--In determining whether an 
     application for a new permit or a renewed permit received 
     under this paragraph is substantially complete, the 
     permitting authority shall use standards for determining 
     substantial completeness of similar permits for similar 
     facilities submitted in fiscal year 2007.''.
       (b) State Permit Programs.--
       (1) In general.--Section 402 of the Federal Water Pollution 
     Control Act (33 U.S.C. 1342) is amended by striking 
     subsection (b) and inserting the following:
       ``(b) State Permit Programs.--
       ``(1) In general.--At any time after the promulgation of 
     the guidelines required by section 304(a)(2), the Governor of 
     each State desiring to administer a permit program for 
     discharges into navigable waters within the jurisdiction of 
     the State may submit to the Administrator--
       ``(A) a full and complete description of the program the 
     State proposes to establish and administer under State law or 
     under an interstate compact; and
       ``(B) a statement from the attorney general (or the 
     attorney for those State water pollution control agencies 
     that have independent legal counsel), or from the chief legal 
     officer in the case of an interstate agency, that the laws of 
     the State, or the interstate compact, as applicable, provide 
     adequate authority to carry out the described program.
       ``(2) Approval.--The Administrator shall approve each 
     program for which a description is submitted under paragraph 
     (1) unless the Administrator determines that adequate 
     authority does not exist--
       ``(A) to issue permits that--
       ``(i) apply, and ensure compliance with, any applicable 
     requirements of sections 301, 302, 306, 307, and 403;
       ``(ii) are for fixed terms not exceeding 5 years;
       ``(iii) can be terminated or modified for cause, 
     including--

       ``(I) a violation of any condition of the permit;
       ``(II) obtaining a permit by misrepresentation or failure 
     to disclose fully all relevant facts; and
       ``(III) a change in any condition that requires either a 
     temporary or permanent reduction or elimination of the 
     permitted discharge; and

       ``(iv) control the disposal of pollutants into wells;
       ``(B)(i) to issue permits that apply, and ensure compliance 
     with, all applicable requirements of section 308; or
       ``(ii) to inspect, monitor, enter, and require reports to 
     at least the same extent as required in section 308;
       ``(C) to ensure that the public, and any other State the 
     waters of which may be affected, receives notice of each 
     application for a permit and an opportunity for a public 
     hearing before a ruling on each application;
       ``(D) to ensure that the Administrator receives notice and 
     a copy of each application for a permit;
       ``(E) to ensure that any State (other than the permitting 
     State), whose waters may be affected by the issuance of a 
     permit may submit written recommendations to the permitting 
     State and the Administrator with respect to any permit 
     application and, if any part of the written recommendations 
     are not accepted by the permitting State, that the permitting 
     State will notify the affected State and the Administrator in 
     writing of the failure of the State to accept the 
     recommendations, including the reasons for not accepting the 
     recommendations;
       ``(F) to ensure that no permit will be issued if, in the 
     judgment of the Secretary of the Army (acting through the 
     Chief of Engineers), after consultation with the Secretary of 
     the department in which the Coast Guard is operating, 
     anchorage and navigation of any of the navigable waters would 
     be substantially impaired by the issuance of the permit;
       ``(G) to abate violations of the permit or the permit 
     program, including civil and criminal penalties and other 
     means of enforcement;
       ``(H) to ensure that any permit for a discharge from a 
     publicly owned treatment works includes conditions to require 
     the identification in terms of character and volume of 
     pollutants of any significant source introducing pollutants 
     subject to pretreatment standards under section 307(b) into 
     the treatment works and a program to ensure compliance with 
     those pretreatment standards by each source, in addition to 
     adequate notice, which shall include information on the 
     quality and quantity of effluent to be introduced into the 
     treatment works and any anticipated impact of the change in 
     the quantity or quality of effluent to be discharged from the 
     publicly owned treatment works, to the permitting agency of--
       ``(i) new introductions into the treatment works of 
     pollutants from any source that would be a new source (as 
     defined in section 306(a)) if the source were discharging 
     pollutants;
       ``(ii) new introductions of pollutants into the treatment 
     works from a source that would be subject to section 301 if 
     the source were discharging those pollutants; or
       ``(iii) a substantial change in volume or character of 
     pollutants being introduced into the treatment works by a 
     source introducing pollutants into the treatment works at the 
     time of issuance of the permit; and
       ``(I) to ensure that any industrial user of any publicly 
     owned treatment works will comply with sections 204(b), 307, 
     and 308.
       ``(3) Administration.--Notwithstanding paragraph (2), the 
     Administrator may not disapprove or withdraw approval of a 
     program under this subsection on the basis of the following:

[[Page 5480]]

       ``(A) The failure of the program to incorporate or comply 
     with guidance (as defined in subsection (s)(1)).
       ``(B) The implementation of a water quality standard that 
     has been adopted by the State and approved by the 
     Administrator under section 303(c).''.
       (2) Conforming amendments.--
       (A) Section 309 of the Federal Water Pollution Control Act 
     (33 U.S.C. 1319) is amended--
       (i) in subsection (c)--

       (I) in paragraph (1)(A), by striking ``402(b)(8)'' and 
     inserting ``402(b)(2)(H)''; and
       (II) in paragraph (2)(A), by striking ``402(b)(8)'' and 
     inserting ``402(b)(2)(H)''; and

       (ii) in subsection (d), in the first sentence, by striking 
     ``402(b)(8)'' and inserting ``402(b)(2)(H)''.
       (B) Section 402(m) of the Federal Water Pollution Control 
     Act (33 U.S.C. 1342(m)) is amended in the first sentence by 
     striking ``subsection (b)(8) of this section'' and inserting 
     ``subsection (b)(2)(H)''.
       (c) Suspension of Federal Program.--Section 402(c) of the 
     Federal Water Pollution Control Act (33 U.S.C. 1342(c)) is 
     amended--
       (1) by redesignating paragraph (4) as paragraph (5); and
       (2) by inserting after paragraph (3) the following:
       ``(4) Limitation on disapproval.--Notwithstanding 
     paragraphs (1) through (3), the Administrator may not 
     disapprove or withdraw approval of a State program under 
     subsection (b) on the basis of the failure of the following:
       ``(A) The failure of the program to incorporate or comply 
     with guidance (as defined in subsection (s)(1)).
       ``(B) The implementation of a water quality standard that 
     has been adopted by the State and approved by the 
     Administrator under section 303(c).''.
       (d) Notification of Administrator.--Section 402(d)(2) of 
     the Federal Water Pollution Control Act (33 U.S.C. 
     1342(d)(2)) is amended--
       (1) by striking ``(2)'' and all that follows through the 
     end of the first sentence and inserting the following:
       ``(2) Objection by administrator.--
       ``(A) In general.--Subject to subparagraph (C), no permit 
     shall issue if--
       ``(i) not later than 90 days after the date on which the 
     Administrator receives notification under subsection 
     (b)(2)(E), the Administrator objects in writing to the 
     issuance of the permit; or
       ``(ii) not later than 90 days after the date on which the 
     proposed permit of the State is transmitted to the 
     Administrator, the Administrator objects in writing to the 
     issuance of the permit as being outside the guidelines and 
     requirements of this Act.'';
       (2) in the second sentence, by striking ``Whenever the 
     Administrator'' and inserting the following:
       ``(B) Requirements.--If the Administrator''; and
       (3) by adding at the end the following:
       ``(C) Exception.--The Administrator shall not object to or 
     deny the issuance of a permit by a State under subsection (b) 
     or (s) based on the following:
       ``(i) Guidance, as that term is defined in subsection 
     (s)(1).
       ``(ii) The interpretation of the Administrator of a water 
     quality standard that has been adopted by the State and 
     approved by the Administrator under section 303(c).''.

     SEC. 132. PERMITS FOR DREDGED OR FILL MATERIAL.

       (a) In General.--Section 404 of the Federal Water Pollution 
     Control Act (33 U.S.C. 1344) is amended--
       (1) by striking the section heading and all that follows 
     through ``Sec. 404. (a) The Secretary may issue'' and 
     inserting the following:

     ``SEC. 404. PERMITS FOR DREDGED OR FILL MATERIAL.

       ``(a) Permits.--
       ``(1) In general.--The Secretary may issue''; and
       (2) in subsection (a), by adding at the end the following:
       ``(2) Deadline for approval.--
       ``(A) Permit applications.--
       ``(i) In general.--Except as provided in clause (ii), if an 
     environmental assessment or environmental impact statement, 
     as appropriate, is required under the National Environmental 
     Policy Act of 1969 (42 U.S.C. 4321 et seq.), the Secretary 
     shall--

       ``(I) begin the process not later than 90 days after the 
     date on which the Secretary receives a permit application; 
     and
       ``(II) approve or deny an application for a permit under 
     this subsection not later than the latter of--

       ``(aa) if an agency carries out an environmental assessment 
     that leads to a finding of no significant impact, the date on 
     which the finding of no significant impact is issued; or
       ``(bb) if an agency carries out an environmental assessment 
     that leads to a record of decision, 15 days after the date on 
     which the record of decision on an environmental impact 
     statement is issued.
       ``(ii) Processes.--Notwithstanding clause (i), regardless 
     of whether the Secretary has commenced an environmental 
     assessment or environmental impact statement by the date 
     described in clause (i)(I), the following deadlines shall 
     apply:

       ``(I) An environmental assessment carried out under the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.) shall be completed not later than 1 year after the 
     deadline for commencing the permit process under clause 
     (i)(I).
       ``(II) An environmental impact statement carried out under 
     the National Environmental Policy Act of 1969 (42 U.S.C. 4321 
     et seq.) shall be completed not later than 2 years after the 
     deadline for commencing the permit process under clause 
     (i)(I).

       ``(B) Failure to act.--If the Secretary fails to act by the 
     deadline specified in clause (i) or (ii) of subparagraph 
     (A)--
       ``(i) the application, and the permit requested in the 
     application, shall be considered to be approved;
       ``(ii) the Secretary shall issue a permit to the applicant; 
     and
       ``(iii) the permit shall not be subject to judicial 
     review.''.
       (b) State Permitting Programs.--Section 404 of the Federal 
     Water Pollution Control Act (33 U.S.C. 1344) is amended by 
     striking subsection (c) and inserting the following:
       ``(c) Authority of Administrator.--
       ``(1) In general.--Subject to paragraphs (2) through (4), 
     until the Secretary has issued a permit under this section, 
     the Administrator is authorized to prohibit the specification 
     (including the withdrawal of specification) of any defined 
     area as a disposal site, and deny or restrict the use of any 
     defined area for specification (including the withdrawal of 
     specification) as a disposal site, if the Administrator 
     determines, after notice and opportunity for public hearings, 
     that the discharge of the materials into the area will have 
     an unacceptable adverse effect on municipal water supplies, 
     shellfish beds or fishery areas (including spawning and 
     breeding areas), wildlife, or recreational areas.
       ``(2) Consultation.--Before making a determination under 
     paragraph (1), the Administrator shall consult with the 
     Secretary.
       ``(3) Findings.--The Administrator shall set forth in 
     writing and make public the findings of the Administrator and 
     the reasons of the Administrator for making any determination 
     under this subsection.
       ``(4) Authority of state permitting programs.--This 
     subsection shall not apply to any permit if the State in 
     which the discharge originates or will originate does not 
     concur with the determination of the Administrator that the 
     discharge will result in an unacceptable adverse effect as 
     described in paragraph (1).''.
       (c) State Programs.--Section 404(g)(1) of the Federal Water 
     Pollution Control Act (33 U.S.C. 1344(g)(1)) is amended in 
     the first sentence by striking ``for the discharge'' and 
     inserting ``for all or part of the discharges''.

     SEC. 133. IMPACTS OF ENVIRONMENTAL PROTECTION AGENCY 
                   REGULATORY ACTIVITY ON EMPLOYMENT AND ECONOMIC 
                   ACTIVITY.

       (a) Definitions.--In this section:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Environmental Protection Agency.
       (2) Covered action.--The term ``covered action'' means any 
     of the following actions taken by the Administrator under the 
     Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.):
       (A) Issuing a regulation, policy statement, guidance, 
     response to a petition, or other requirement.
       (B) Implementing a new or substantially altered program.
       (3) More than a de minimis negative impact.--The term 
     ``more than a de minimis negative impact'' means the 
     following:
       (A) With respect to employment levels, a loss of more than 
     100 jobs, except that any offsetting job gains that result 
     from the hypothetical creation of new jobs through new 
     technologies or government employment may not be used in the 
     job loss calculation.
       (B) With respect to economic activity, a decrease in 
     economic activity of more than $1,000,000 over any calendar 
     year, except that any offsetting economic activity that 
     results from the hypothetical creation of new economic 
     activity through new technologies or government employment 
     may not be used in the economic activity calculation.
       (b) Analysis of Impacts of Actions on Employment and 
     Economic Activity.--
       (1) Analysis.--Before taking a covered action, the 
     Administrator shall analyze the impact, disaggregated by 
     State, of the covered action on employment levels and 
     economic activity, including estimated job losses and 
     decreased economic activity.
       (2) Economic models.--
       (A) In general.--In carrying out paragraph (1), the 
     Administrator shall use the best available economic models.
       (B) Annual gao report.--Not later than December 31st of 
     each year, the Comptroller General of the United States shall 
     submit to Congress a report on the economic models used by 
     the Administrator to carry out this subsection.
       (3) Availability of information.--With respect to any 
     covered action, the Administrator shall--
       (A) post the analysis under paragraph (1) as a link on the 
     main page of the public Internet Web site of the 
     Environmental Protection Agency; and

[[Page 5481]]

       (B) request that the Governor of any State experiencing 
     more than a de minimis negative impact post the analysis in 
     the Capitol of the State.
       (c) Public Hearings.--
       (1) In general.--If the Administrator concludes under 
     subsection (b)(1) that a covered action will have more than a 
     de minimis negative impact on employment levels or economic 
     activity in a State, the Administrator shall hold a public 
     hearing in each such State at least 30 days prior to the 
     effective date of the covered action.
       (2) Time, location, and selection.--
       (A) In general.--A public hearing required under paragraph 
     (1) shall be held at a convenient time and location for 
     impacted residents.
       (B) Priority.--In selecting a location for such a public 
     hearing, the Administrator shall give priority to locations 
     in the State that will experience the greatest number of job 
     losses.
       (d) Notification.--If the Administrator concludes under 
     subsection (b)(1) that a covered action will have more than a 
     de minimis negative impact on employment levels or economic 
     activity in any State, the Administrator shall give notice of 
     such impact to the congressional delegation, Governor, and 
     legislature of the State at least 45 days before the 
     effective date of the covered action.

     SEC. 134. IDENTIFICATION OF WATERS PROTECTED BY THE CLEAN 
                   WATER ACT.

       (a) In General.--The Secretary of the Army and the 
     Administrator of the Environmental Protection Agency may 
     not--
       (1) finalize, adopt, implement, administer, or enforce the 
     proposed guidance described in the notice of availability and 
     request for comments entitled ``EPA and Army Corps of 
     Engineers Guidance Regarding Identification of Waters 
     Protected by the Clean Water Act'' (EPA-HQ-OW-2011-0409) (76 
     Fed. Reg. 24479 (May 2, 2011)); and
       (2) use the guidance described in paragraph (1), any 
     successor document, or any substantially similar guidance 
     made publicly available on or after December 3, 2008, as the 
     basis for any decision regarding the scope of the Federal 
     Water Pollution Control Act (33 U.S.C. 1251 et seq.) or any 
     rulemaking.
       (b) Rules.--The use of the guidance described in subsection 
     (a)(1), or any successor document or substantially similar 
     guidance made publicly available on or after December 3, 
     2008, as the basis for any rule shall be grounds for vacating 
     the rule.

     SEC. 135. LIMITATIONS ON AUTHORITY TO MODIFY STATE WATER 
                   QUALITY STANDARDS.

       (a) State Water Quality Standards.--Section 303(c)(4) of 
     the Federal Water Pollution Control Act (33 U.S.C. 
     1313(c)(4)) is amended--
       (1) by redesignating subparagraphs (A) and (B) as clauses 
     (i) and (ii), respectively, and indenting appropriately;
       (2) by striking ``(4) The'' and inserting the following:
       ``(4) Promulgation of revised or new standards.--
       ``(A) In general.--The'';
       (3) by striking ``The Administrator shall promulgate'' and 
     inserting the following:
       ``(B) Deadline.--The Administrator shall promulgate;'' and
       (4) by adding at the end the following:
       ``(C) State water quality standards.--Notwithstanding any 
     other provision of this paragraph, the Administrator may not 
     promulgate a revised or new standard for a pollutant in any 
     case in which the State has submitted to the Administrator 
     and the Administrator has approved a water quality standard 
     for that pollutant, unless the State concurs with the 
     determination of the Administrator that the revised or new 
     standard is necessary to meet the requirements of this 
     Act.''.
       (b) Federal Licenses and Permits.--Section 401(a) of the 
     Federal Water Pollution Control Act (33 U.S.C. 1341(a)) is 
     amended by adding at the end the following:
       ``(7) State or interstate agency determination.--With 
     respect to any discharge, if a State or interstate agency 
     having jurisdiction over the navigable waters at the point at 
     which the discharge originates or will originate determines 
     under paragraph (1) that the discharge will comply with the 
     applicable provisions of sections 301, 302, 303, 306, and 
     307, the Administrator may not take any action to supersede 
     the determination.''.

     SEC. 136. STATE AUTHORITY TO IDENTIFY WATERS WITHIN 
                   BOUNDARIES OF THE STATE.

       Section 303(d) of the Federal Water Pollution Control Act 
     (33 U.S.C. 1313(d)) is amended by striking paragraph (2) and 
     inserting the following:
       ``(2) State authority to identify waters within boundaries 
     of the state.--
       ``(A) In general.--Each State shall submit to the 
     Administrator from time to time, with the first such 
     submission not later than 180 days after the date of 
     publication of the first identification of pollutants under 
     section 304(a)(2)(D), the waters identified and the loads 
     established under subparagraphs (A), (B), (C), and (D) of 
     paragraph (1).
       ``(B) Approval or disapproval by administrator.--
       ``(i) In general.--Not later than 30 days after the date of 
     submission, the Administrator shall approve the State 
     identification and load or announce the disagreement of the 
     Administrator with the State identification and load.
       ``(ii) Approval.--If the Administrator approves the 
     identification and load submitted by the State under this 
     subsection, the State shall incorporate the identification 
     and load into the current plan of the State under subsection 
     (e).
       ``(iii) Disapproval.--If the Administrator announces the 
     disagreement of the Administrator with the identification and 
     load submitted by the State under this subsection. the 
     Administrator shall submit, not later than 30 days after the 
     date that the Administrator announces the disagreement of the 
     Administrator with the submission of the State, to the State 
     the written recommendation of the Administrator of those 
     additional waters that the Administrator identifies and such 
     loads for such waters as the Administrator believes are 
     necessary to implement the water quality standards applicable 
     to the waters.
       ``(C) Action by state.--Not later than 30 days after 
     receipt of the recommendation of the Administrator, the State 
     shall--
       ``(i) disregard the recommendation of the Administrator in 
     full and incorporate its own identification and load into the 
     current plan of the State under subsection (e);
       ``(ii) accept the recommendation of the Administrator in 
     full and incorporate its identification and load as amended 
     by the recommendation of the Administrator into the current 
     plan of the State under subsection (e); or
       ``(iii) accept the recommendation of the Administrator in 
     part, identifying certain additional waters and certain 
     additional loads proposed by the Administrator to be added to 
     the State's identification and load and incorporate the 
     State's identification and load as amended into the current 
     plan of the State under subsection (e).
       ``(D) Noncompliance by administrator.--
       ``(i) In general.--If the Administrator fails to approve 
     the State identification and load or announce the 
     disagreement of the Administrator with the State 
     identification and load within the time specified in this 
     subsection--

       ``(I) the identification and load of the State shall be 
     considered approved; and
       ``(II) the State shall incorporate the identification and 
     load that the State submitted into the current plan of the 
     State under subsection (e).

       ``(ii) Recommendations not submitted.--If the Administrator 
     announces the disagreement of the Administrator with the 
     identification and load of the State but fails to submit the 
     written recommendation of the Administrator to the State 
     within 30 days as required by subparagraph (B)(iii)--

       ``(I) the identification and load of the State shall be 
     considered approved; and
       ``(II) the State shall incorporate the identification and 
     load that the State submitted into the current plan of the 
     State under subsection (e).

       ``(E) Application.--This section shall apply to any 
     decision made by the Administrator under this subsection 
     issued on or after March 1, 2013.''.

           Subtitle C--Point of Order Against Taxes on Carbon

     SEC. 141. POINT OF ORDER AGAINST LEGISLATION THAT WOULD 
                   CREATE A TAX OR FEE ON CARBON EMISSIONS.

       (a) Point of Order.--It shall not be in order in the Senate 
     to consider any bill, joint resolution, motion, amendment, or 
     conference report that includes a Federal tax or fee imposed 
     on carbon emissions from any product or entity that is a 
     direct or indirect source of the emissions.
       (b) Waiver and Appeal.--
       (1) Waiver.--Subsection (a) may be waived or suspended in 
     the Senate only by an affirmative vote of three-fifths of the 
     Members, duly chosen and sworn.
       (2) Appeal.--An affirmative vote of three-fifths of the 
     Members of the Senate, duly chosen and sworn, shall be 
     required to sustain an appeal of the ruling of the Chair on a 
     point of order raised under subsection (a).

                            TITLE II--HEALTH

     SEC. 201. FORTY HOURS IS FULL TIME.

       (a) Definition of Full-time Employee.--Section 4980H(c) of 
     the Internal Revenue Code of 1986 is amended--
       (1) in paragraph (2)(E), by striking ``by 120'' and 
     inserting ``by 174''; and
       (2) in paragraph (4)(A), by striking ``30 hours'' and 
     inserting ``40 hours''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to months beginning after December 31, 2013.

     SEC. 202. REPEAL OF THE INDIVIDUAL MANDATE.

       Section 1501 and subsections (a), (b), (c), and (d) of 
     section 10106 of the Patient Protection and Affordable Care 
     Act (and the amendments made by such sections and 
     subsections) are repealed and the Internal Revenue Code of 
     1986 shall be applied and administered as if such provisions 
     and amendments had never been enacted.

     SEC. 203. REPEAL OF MEDICAL DEVICE EXCISE TAX.

       (a) In General.--Chapter 32 of the Internal Revenue Code of 
     1986 is amended by striking subchapter E.
       (b) Conforming Amendments.--

[[Page 5482]]

       (1) Subsection (a) of section 4221 of the Internal Revenue 
     Code of 1986 is amended by striking the last sentence.
       (2) Paragraph (2) of section 6416(b) of such Code is 
     amended by striking the last sentence.
       (c) Clerical Amendment.--The table of subchapter for 
     chapter 32 of the Internal Revenue Code of 1986 is amended by 
     striking the item related to subchapter E.
       (d) Effective Date.--The amendments made by this section 
     shall apply to sales after the date of the enactment of this 
     Act.

     SEC. 204. 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.--
       ``(i) In general.--The term `full-time employee' shall not 
     include any individual who is a long-term unemployed 
     individual with respect to such employer.
       ``(ii) Long-term unemployed individual.--For purposes of 
     this subparagraph, the term `long-term unemployed individual' 
     means, with respect to any employer, an individual who--

       ``(I) begins employment with such employer after the date 
     of the enactment of this subparagraph, and
       ``(II) has been unemployed for 27 weeks or longer, as 
     determined by the Secretary of Labor, immediately before the 
     date such employment begins.''.

       (b) Effective Date.--The amendment made by this section 
     shall apply to months beginning after December 31, 2013.

     SEC. 205. EMPLOYEES WITH HEALTH COVERAGE UNDER TRICARE OR THE 
                   VETERANS ADMINISTRATION MAY BE EXEMPTED FROM 
                   EMPLOYER MANDATE UNDER PATIENT PROTECTION AND 
                   AFFORDABLE CARE ACT.

       (a) In General.--Section 4980H(c)(2) of the Internal 
     Revenue Code is amended by adding at the end the following:
       ``(F) Exemption for health coverage under tricare or the 
     veterans administration.--Solely for purposes of determining 
     whether an employer is an applicable large employer under 
     this paragraph for any month, an employer may elect not to 
     take into account for a month as an employee any individual 
     who, for such month, has medical coverage under--
       ``(i) chapter 55 of title 10, United States Code, including 
     coverage under the TRICARE program, or
       ``(ii) under a health care program under chapter 17 or 18 
     of title 38, United States Code, as determined by the 
     Secretary of Veterans Affairs, in coordination with the 
     Secretary of Health and Human Services and the Secretary.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to months beginning after December 31, 2013.

     SEC. 206. PROHIBITION ON CERTAIN TAXES, FEES, AND PENALTIES 
                   ENACTED UNDER THE AFFORDABLE CARE ACT.

       No tax, fee, or penalty imposed or enacted under the 
     Patient Protection and Affordable Care Act shall be 
     implemented, administered, or enforced unless there has been 
     a certification by the Joint Committee on Taxation that such 
     provision would not have a direct or indirect economic impact 
     on individuals with an annual income of less than $200,000 or 
     families with an annual income of less than $250,000.

     SEC. 207. REPEAL OF THE PATIENT PROTECTION AND AFFORDABLE 
                   CARE ACT.

       (a) In General.--Effective as of the enactment of Public 
     Law 111-148, such Act (including any provision amended under 
     sections 201 through 205 of this Act) is repealed, and the 
     provisions of law amended or repealed by such Act (including 
     any provision amended under such sections) are restored or 
     revived as if such Act had not been enacted.
       (b) Health Care-Related Provisions in the Health Care and 
     Education Reconciliation Act of 2010.--Effective as of the 
     enactment of the Health Care and Education Reconciliation Act 
     of 2010 (Public Law 111-152), title I and subtitle B of title 
     II of such Act (including any provision amended under 
     sections 201 through 205 of this Act) are repealed, and the 
     provisions of law amended or repealed by such title or 
     subtitle, respectively (including any provision amended under 
     such sections), are restored or revived as if such title and 
     subtitle had not been enacted.

 TITLE III--INCREASING EMPLOYMENT AND DECREASING GOVERNMENT REGULATION

               Subtitle A--Small Business Tax Provisions

     SEC. 301. PERMANENT EXTENSION OF INCREASED EXPENSING 
                   LIMITATIONS AND TREATMENT OF CERTAIN REAL 
                   PROPERTY AS SECTION 179 PROPERTY.

       (a) Dollar Limitation.--Section 179(b)(1) of the Internal 
     Revenue Code of 1986 is amended by striking ``shall not 
     exceed'' and all that follows and inserting ``shall not 
     exceed $500,000.''.
       (b) Reduction in Limitation.--Section 179(b)(2) of the 
     Internal Revenue Code of 1986 is amended--
       (1) by striking subparagraph (C),
       (2) by striking ``, and'' at the end of subparagraph (B) 
     and inserting a period,
       (3) by striking the comma at the end of subparagraph (A) 
     and inserting ``, and'', and
       (4) by inserting ``beginning before 2014'' after ``The 
     limitation under paragraph (1) for any taxable year''.
       (c) Computer Software.--Section 179(d)(1)(A)(ii) of the 
     Internal Revenue Code of 1986 is amended by striking ``and 
     before 2014''.
       (d) Election.--Section 179(c)(2) of the Internal Revenue 
     Code of 1986 is amended by striking ``and before 2014''.
       (e) Special Rules for Treatment of Qualified Real 
     Property.--
       (1) In general.--Section 179(f)(1) of the Internal Revenue 
     Code of 1986 is amended by striking ``beginning in 2010, 
     2011, 2012, or 2013'' and inserting ``beginning after 2009''.
       (2) Conforming amendment.--Section 179(f) of such Code is 
     amended by striking paragraph (4).
       (f) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2013.

     SEC. 302. PERMANENT FULL EXCLUSION APPLICABLE TO QUALIFIED 
                   SMALL BUSINESS STOCK.

       (a) In General.--Paragraph (4) of section 1202(a) of the 
     Internal Revenue Code of 1986 is amended--
       (1) by striking ``and before January 1, 2014'', and
       (2) by striking ``certain periods in 2010, 2011, 2012, and 
     2013'' in the heading and inserting ``certain periods after 
     2009''.
       (b) Conforming Amendments.--
       (1) The heading for section 1202 of the Internal Revenue 
     Code of 1986 is amended by striking ``partial''.
       (2) The item relating to section 1202 in the table of 
     sections for part I of subchapter P of chapter 1 of such Code 
     is amended by striking ``Partial exclusion'' and inserting 
     ``Exclusion''.
       (3) Section 1223(13) of such Code is amended by striking 
     ``1202(a)(2),''.
       (c) Adjustment of Gross Asset Threshold for Inflation.--
     Subsection (d) of section 1202 of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     paragraph:
       ``(4) Adjustment for inflation.--In the case of any taxable 
     year beginning after December 31, 2014, the $50,000,000 
     amount in subparagraphs (A) and (B) of paragraph (1) shall be 
     increased by an amount equal to--
       ``(A) such dollar amount, multiplied by
       ``(B) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins, by substituting `calendar year 2013' for 
     `calendar year 1992' in subparagraph (B) thereof.
     If any amount as increased under the preceding sentence is 
     not a multiple of $1,000, such amount shall be rounded to the 
     nearest multiple of $1,000.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to stock acquired after December 31, 2013.

     SEC. 303. PERMANENT INCREASE IN DEDUCTION FOR START-UP 
                   EXPENDITURES.

       (a) In General.--Clause (ii) of section 195(b)(1)(A) of the 
     Internal Revenue Code of 1986 is amended--
       (1) by striking ``$5,000'' and inserting ``$10,000'', and
       (2) by striking ``$50,000'' and inserting ``$60,000''.
       (b) Adjustment for Inflation.--Paragraph (3) of section 
     195(b) of the Internal Revenue Code of 1986 is amended to 
     read as follows:
       ``(3) Adjustment for inflation.--In the case of any taxable 
     year beginning after December 31, 2014, the $10,000 and 
     $60,000 amounts in paragraph (1)(A)(ii) shall each be 
     increased by an amount equal to--
       ``(A) such dollar amount, multiplied by
       ``(B) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins, by substituting `calendar year 2013' for 
     `calendar year 1992' in subparagraph (B) thereof.

     If any amount as increased under the preceding sentence is 
     not a multiple of $1,000, such amount shall be rounded to the 
     nearest multiple of $1,000.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2013.

     SEC. 304. PERMANENT EXTENSION OF REDUCTION IN S-CORPORATION 
                   RECOGNITION PERIOD FOR BUILT-IN GAINS TAX.

       (a) In General.--Paragraph (7) of section 1374(d) of the 
     Internal Revenue Code of 1986 is amended--
       (1) by striking ``10-year'' in subparagraph (A) and 
     inserting ``5-year'',
       (2) by striking subparagraphs (B) and (C) and redesignating 
     subparagraphs (D) and (E) as subparagraphs (B) and (C), 
     respectively, and
       (3) by striking ``593(e)--'' and all that follows in 
     subparagraph (B), as so redesignated, and inserting ``593(e), 
     subparagraph (A) shall be applied without regard to the 
     phrase `5-year'.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2013.

     SEC. 305. PERMANENT ALLOWANCE OF DEDUCTION FOR HEALTH 
                   INSURANCE COSTS IN COMPUTING SELF-EMPLOYMENT 
                   TAXES.

       (a) In General.--Paragraph (4) of section 162(l) of the 
     Internal Revenue Code of 1986 is

[[Page 5483]]

     amended by striking ``beginning before January 1, 2010'' and 
     all that follows and inserting ``beginning--
       ``(A) before January 1, 2010, or
       ``(B) after December 31, 2010, and before January 1, 
     2013.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2012.

     SEC. 306. CLARIFICATION OF INVENTORY AND ACCOUNTING RULES FOR 
                   SMALL BUSINESS.

       (a) Cash Accounting Permitted.--Section 446 of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new subsection:
       ``(g) Certain Small Business Taxpayers Permitted to Use 
     Cash Accounting Method Without Limitation.--
       ``(1) In general.--With respect to an eligible taxpayer who 
     uses the cash receipts and disbursements method for any 
     taxable year, such method shall be deemed to clearly reflect 
     income and the taxpayer shall not be required to use an 
     accrual method.
       ``(2) Eligible taxpayer.--For purposes of this subsection, 
     a taxpayer is an eligible taxpayer with respect to any 
     taxable year if--
       ``(A) for all prior taxable years beginning after December 
     31, 2013, the taxpayer (or any predecessor) met the gross 
     receipts test of section 448(c) (determined by substituting 
     `$10,000,000' for `$5,000,000' each place it appears), and
       ``(B) the taxpayer is not subject to section 447 or 448.''.
       (b) Inventory Rules.--
       (1) In general.--Section 471 of the Internal Revenue Code 
     of 1986 is amended by redesignating subsection (c) as 
     subsection (d) and by inserting after subsection (b) the 
     following new subsection:
       ``(c) Small Business Taxpayers Not Required to Use 
     Inventories.--
       ``(1) In general.--A qualified taxpayer shall not be 
     required to use inventories under this section for a taxable 
     year.
       ``(2) Treatment of taxpayers not using inventories.--If a 
     qualified taxpayer does not use inventories with respect to 
     any property for any taxable year beginning after December 
     31, 2013, such property shall be treated as a material or 
     supply which is not incidental.
       ``(3) Qualified taxpayer.--For purposes of this subsection, 
     the term `qualified taxpayer' means--
       ``(A) any eligible taxpayer (as defined in section 
     446(g)(2)), and
       ``(B) any taxpayer described in section 448(b)(3) 
     (determined by substituting `$10,000,000' for `$5,000,000' 
     each place it appears in subsections (b) and (c) of section 
     448).''.
       (2) Increased eligibility for simplified dollar-value lifo 
     method.--Section 474(c) of such Code is amended by striking 
     ``$5,000,000'' and inserting ``$10,000,000''.
       (3) Conforming amendment.--Subsection (c) of section 263A 
     of such Code is amended by adding at the end the following 
     new paragraph:
       ``(7) Exclusion from inventory rules.--Nothing in this 
     section shall require the use of inventories for any taxable 
     year by a qualified taxpayer (within the meaning of section 
     471(c)) who is not required to use inventories under section 
     471 for such taxable year.''.
       (c) Effective Date and Special Rules.--
       (1) In general.--The amendments made by this section shall 
     apply to taxable years beginning after December 31, 2013.
       (2) Change in method of accounting.--In the case of any 
     taxpayer changing the taxpayer's method of accounting for any 
     taxable year under the amendments made by this section--
       (A) such change shall be treated as initiated by the 
     taxpayer; and
       (B) such change shall be treated as made with the consent 
     of the Secretary of the Treasury.

               Subtitle B--Regulatory Accountability Act

     SEC. 311. SHORT TITLE.

       This title may be cited as the ``Regulatory Accountability 
     Act of 2014''.

     SEC. 312. DEFINITIONS.

       Section 551 of title 5, United States Code, is amended--
       (1) in paragraph (13), by striking ``and'' at the end;
       (2) in paragraph (14), by striking the period at the end 
     and inserting a semicolon; and
       (3) by adding at the end the following:
       ``(15) `guidance' means an agency statement of general 
     applicability and future effect, other than a regulatory 
     action, that sets forth a policy on a statutory, regulatory 
     or technical issue or an interpretation of a statutory or 
     regulatory issue;
       ``(16) `high-impact rule' means any rule that the 
     Administrator of the Office of Information and Regulatory 
     Affairs determines is likely to impose an annual cost on the 
     economy of $1,000,000,000 or more, adjusted annually for 
     inflation;
       ``(17) `Information Quality Act' means section 515 of 
     Public Law 106-554, the Treasury and General Government 
     Appropriations Act for Fiscal Year 2001, and guidelines 
     issued by the Administrator of the Office of Information and 
     Regulatory Affairs or other agencies under that Act;
       ``(18) `major guidance' means guidance that the 
     Administrator of the Office of Information and Regulatory 
     Affairs finds is likely to lead to--
       ``(A) an annual cost on the economy of $100,000,000 or 
     more, adjusted annually for inflation;
       ``(B) a major increase in costs or prices for consumers, 
     individual industries, Federal, State, local or tribal 
     government agencies, or geographic regions; or
       ``(C) significant adverse effects on competition, 
     employment, investment, productivity, innovation, or on the 
     ability of United States-based enterprises to compete with 
     foreign-based enterprises in domestic and export markets;
       ``(19) `major rule' means any rule that the Administrator 
     of the Office of Information and Regulatory Affairs 
     determines is likely to impose--
       ``(A) an annual cost on the economy of $100,000,000 or 
     more, adjusted annually for inflation;
       ``(B) a major increase in costs or prices for consumers, 
     individual industries, Federal, State, local, or tribal 
     government agencies, or geographic regions; or
       ``(C) significant adverse effects on competition, 
     employment, investment, productivity, innovation, or on the 
     ability of United States-based enterprises to compete with 
     foreign-based enterprises in domestic and export markets; and
       ``(20) `Office of Information and Regulatory Affairs' means 
     the office established under section 3503 of chapter 35 of 
     title 44 and any successor to that office.''.

     SEC. 313. RULE MAKING.

       Section 553 of title 5, United States Code, is amended--
       (1) in subsection (a), by striking ``(a) This section 
     applies'' and inserting ``(a) Applicability.--This section 
     applies''; and
       (2) by striking subsections (b) through (e) and inserting 
     the following:
       ``(b) Rule Making Considerations.--In a rule making, an 
     agency shall make all preliminary and final determinations 
     based on evidence and consider, in addition to other 
     applicable considerations, the following:
       ``(1) The legal authority under which a rule may be 
     proposed, including whether a rule making is required by 
     statute, and if so, whether by a specific date, or whether 
     the agency has discretion to commence a rule making.
       ``(2) Other statutory considerations applicable to whether 
     the agency can or should propose a rule or undertake other 
     agency action.
       ``(3) The specific nature and significance of the problem 
     the agency may address with a rule (including the degree and 
     nature of risks the problem poses and the priority of 
     addressing those risks compared to other matters or 
     activities within the jurisdiction of the agency), whether 
     the problem warrants new agency action, and the 
     countervailing risks that may be posed by alternatives for 
     new agency action.
       ``(4) Whether existing rules have created or contributed to 
     the problem the agency may address with a rule and whether 
     those rules could be amended or rescinded to address the 
     problem in whole or part.
       ``(5) Any reasonable alternatives for a new rule or other 
     response identified by the agency or interested persons, 
     including not only responses that mandate particular conduct 
     or manners of compliance, but also--
       ``(A) the alternative of no Federal response;
       ``(B) amending or rescinding existing rules;
       ``(C) potential regional, State, local, or tribal 
     regulatory action or other responses that could be taken 
     instead of agency action; and
       ``(D) potential responses that--
       ``(i) specify performance objectives rather than conduct or 
     manners of compliance;
       ``(ii) establish economic incentives to encourage desired 
     behavior;
       ``(iii) provide information upon which choices can be made 
     by the public; or
       ``(iv) incorporate other innovative alternatives rather 
     than agency actions that specify conduct or manners of 
     compliance.
       ``(6) Notwithstanding any other provision of law--
       ``(A) the potential costs and benefits associated with 
     potential alternative rules and other responses considered 
     under paragraph (5), including direct, indirect, and 
     cumulative costs and benefits and estimated impacts on jobs, 
     economic growth, innovation, and economic competitiveness;
       ``(B) the means to increase the cost-effectiveness of any 
     Federal response; and
       ``(C) incentives for innovation, consistency, 
     predictability, lower costs of enforcement and compliance (to 
     government entities, regulated entities, and the public), and 
     flexibility.
       ``(c) Advance Notice of Proposed Rule Making for Major 
     Rules and High-Impact Rules.--
       ``(1) In the case of a rule making for a major rule or 
     high-impact rule, not later than 90 days before a notice of 
     proposed rule making is published in the Federal Register, an 
     agency shall publish advance notice of proposed rule making 
     in the Federal Register.
       ``(2) In publishing advance notice under paragraph (1), the 
     agency shall--
       ``(A) include a written statement identifying, at a 
     minimum--

[[Page 5484]]

       ``(i) the nature and significance of the problem the agency 
     may address with a rule, including data and other evidence 
     and information on which the agency expects to rely for the 
     proposed rule;
       ``(ii) the legal authority under which a rule may be 
     proposed, including whether a rule making is required by 
     statute, and if so, whether by a specific date, or whether 
     the agency has discretion to commence a rule making; and
       ``(iii) preliminary information available to the agency 
     concerning the other considerations specified in subsection 
     (b);
       ``(B) solicit written data, views or arguments from 
     interested persons concerning the information and issues 
     addressed in the advance notice; and
       ``(C) provide for a period of not fewer than 60 days for 
     interested persons to submit such written data, views, or 
     arguments to the agency.
       ``(d) Notices of Proposed Rule Making; Determinations of 
     Other Agency Course.--Following completion of procedures 
     under subsection (c), if applicable, and consultation with 
     the Administrator of the Office of Information and Regulatory 
     Affairs, the agency shall publish either a notice of proposed 
     rule making or a determination of other agency course, in 
     accordance with the following:
       ``(1) A notice of proposed rule making shall include--
       ``(A) a statement of the time, place, and nature of public 
     rule making proceedings;
       ``(B) reference to the legal authority under which the rule 
     is proposed;
       ``(C) the terms of the proposed rule;
       ``(D) a description of information known to the agency on 
     the subject and issues of the proposed rule, including--
       ``(i) a summary of information known to the agency 
     concerning the considerations specified in subsection (b);
       ``(ii) a summary of additional information the agency 
     provided to and obtained from interested persons under 
     subsection (c); and
       ``(iii) information specifically identifying all data, 
     studies, models, and other evidence or information considered 
     or used by the agency in connection with the determination by 
     the agency to propose the rule;
       ``(E)(i) a reasoned preliminary determination of need for 
     the rule based on the information described under 
     subparagraph (D); and
       ``(ii) an additional statement of whether a rule is 
     required by statute;
       ``(F) a reasoned preliminary determination that the 
     benefits of the proposed rule meet the relevant statutory 
     objectives and justify the costs of the proposed rule, 
     including all costs to be considered under subsection (b)(6), 
     based on the information described under subparagraph (D);
       ``(G) a discussion of--
       ``(i) the alternatives to the proposed rule, and other 
     alternative responses, considered by the agency under 
     subsection (b);
       ``(ii) the costs and benefits of those alternatives, 
     including all costs to be considered under subsection (b)(6);
       ``(iii) whether those alternatives meet relevant statutory 
     objectives; and
       ``(iv) why the agency did not propose any of those 
     alternatives; and
       ``(H)(i) a statement of whether existing rules have created 
     or contributed to the problem the agency seeks to address 
     with the proposed rule; and
       ``(ii) if so, whether or not the agency proposes to amend 
     or rescind any such rules, and why.

     All information considered by the agency, and actions to 
     obtain information by the agency, in connection with its 
     determination to propose the rule, including all information 
     described by the agency under subparagraph (D) and, at the 
     discretion of the President or the Administrator of the 
     Office of Information and Regulatory Affairs, information 
     provided by that Office in consultations with the agency, 
     shall be placed in the docket for the proposed rule and made 
     accessible to the public for the public's use when the notice 
     of proposed rule making is published.
       ``(2)(A) A notice of determination of other agency course 
     shall include a description of the alternative response the 
     agency determined to adopt.
       ``(B) If in its determination of other agency course the 
     agency makes a determination to amend or rescind an existing 
     rule, the agency need not undertake additional proceedings 
     under subsection (c) before the agency publishes a notice of 
     proposed rule making to amend or rescind the existing rule.

     All information considered by the agency, and actions to 
     obtain information by the agency, in connection with its 
     determination of other agency course, including the 
     information specified under paragraph (1)(D) and, at the 
     discretion of the President or the Administrator of the 
     Office of Information and Regulatory Affairs, information 
     provided by that Office in consultations with the agency, 
     shall be placed in the docket for the determination and made 
     accessible to the public for the public's use when the notice 
     of determination is published.
       ``(3) After notice of proposed rule making required by this 
     section, the agency shall provide interested persons an 
     opportunity to participate in the rule making through 
     submission of written data, views, or arguments with or 
     without opportunity for oral presentation, except that--
       ``(A) if a hearing is required under paragraph (4)(B) or 
     subsection (e), reasonable opportunity for oral presentation 
     shall be provided under that requirement; or
       ``(B) when other than under subsection (e) rules are 
     required by statute or at the discretion of the agency to be 
     made on the record after opportunity for an agency hearing, 
     sections 556 and 557 shall apply, and paragraph (4), 
     requirements of subsection (e) to receive comment outside of 
     the procedures of sections 556 and 557, and the petition 
     procedures of subsection (e)(6) shall not apply.

     The agency shall provide not fewer than 90 days for 
     interested persons to submit written data, views, or 
     arguments (or 120 days in the case of a proposed major rule 
     or high-impact rule).
       ``(4)(A) Within 30 days after publication of notice of 
     proposed rule making, a member of the public may petition for 
     a hearing in accordance with section 556 to determine whether 
     any evidence or other information upon which the agency bases 
     the proposed rule fails to comply with of the Information 
     Quality Act.
       ``(B)(i) The agency may, upon review of the petition, 
     determine without further process to exclude from the rule 
     making the evidence or other information that is the subject 
     of the petition and, if appropriate, withdraw the proposed 
     rule. The agency shall promptly publish any such 
     determination.
       ``(ii) If the agency does not resolve the petition under 
     the procedures of clause (i), it shall grant any such 
     petition that presents a prima facie case that evidence or 
     other information upon which the agency bases the proposed 
     rule fails to comply with the Information Quality Act, hold 
     the requested hearing not later than 30 days after receipt of 
     the petition, provide for a reasonable opportunity for cross-
     examination at the hearing, and decide the issues presented 
     by the petition not later than 60 days after receipt of the 
     petition. The agency may deny any petition that it determines 
     does not present such a prima facie case.
       ``(C) There shall be no judicial review of the agency's 
     disposition of issues considered and decided or determined 
     under subparagraph (B)(ii) until judicial review of the 
     agency's final action. There shall be no judicial review of 
     an agency's determination to withdraw a proposed rule under 
     subparagraph (B)(i).
       ``(D) Failure to petition for a hearing under this 
     paragraph shall not preclude judicial review of any claim 
     based on the Information Quality Act under chapter 7 of this 
     title.
       ``(e) Hearings for High-Impact Rules.--Following notice of 
     a proposed rule making, receipt of comments on the proposed 
     rule, and any hearing held under subsection (d)(4), and 
     before adoption of any high-impact rule, the agency shall 
     hold a hearing in accordance with sections 556 and 557, 
     unless such hearing is waived by all participants in the rule 
     making other than the agency. The agency shall provide a 
     reasonable opportunity for cross-examination at such hearing. 
     The hearing shall be limited to the following issues of fact, 
     except that participants at the hearing other than the agency 
     may waive determination of any such issue:
       ``(1) Whether the agency's asserted factual predicate for 
     the rule is supported by the evidence.
       ``(2) Whether there is an alternative to the proposed rule 
     that would achieve the relevant statutory objectives at a 
     lower cost (including all costs to be considered under 
     subsection (b)(6)) than the proposed rule.
       ``(3) If there is more than one alternative to the proposed 
     rule that would achieve the relevant statutory objectives at 
     a lower cost than the proposed rule, which alternative would 
     achieve the relevant statutory objectives at the lowest cost.
       ``(4) If the agency proposes to adopt a rule that is more 
     costly than the least costly alternative that would achieve 
     the relevant statutory objectives (including all costs to be 
     considered under subsection (b)(6)), whether the additional 
     benefits of the more costly rule exceed the additional costs 
     of the more costly rule.
       ``(5) Whether the evidence and other information upon which 
     the agency bases the proposed rule meets the requirements of 
     the Information Quality Act.
       ``(6) Upon petition by an interested person who has 
     participated in the rule making, other issues relevant to the 
     rule making, unless the agency determines that consideration 
     of the issues at the hearing would not advance consideration 
     of the rule or would, in light of the nature of the need for 
     agency action, unreasonably delay completion of the rule 
     making. An agency shall grant or deny a petition under this 
     paragraph within 30 days after the receipt of the petition.

     No later than 45 days before any hearing held under this 
     subsection or sections 556 and 557, the agency shall publish 
     in the Federal Register a notice specifying the proposed rule 
     to be considered at such hearing, the issues to be considered 
     at the hearing, and the time and place for such hearing, 
     except that such notice may be issued not later than 15 days 
     before a hearing held under subsection (d)(4)(B).

[[Page 5485]]

       ``(f) Final Rules.--(1) The agency shall adopt a rule only 
     following consultation with the Administrator of the Office 
     of Information and Regulatory Affairs to facilitate 
     compliance with applicable rule making requirements.
       ``(2) The agency shall adopt a rule only on the basis of 
     the best reasonably obtainable scientific, technical, 
     economic, and other evidence and information concerning the 
     need for and consequences of the rule.
       ``(3)(A) Except as provided in subparagraph (B), the agency 
     shall adopt the least costly rule considered during the rule 
     making (including all costs to be considered under subsection 
     (b)(6)) that meets relevant statutory objectives.
       ``(B) The agency may adopt a rule that is more costly than 
     the least costly alternative that would achieve the relevant 
     statutory objectives only if--
       ``(i) the additional benefits of the more costly rule 
     justify its additional costs; and
       ``(ii) the agency explains its reason for doing so based on 
     interests of public health, safety or welfare (including 
     protection of the environment) that are clearly within the 
     scope of the statutory provision authorizing the rule.
       ``(4)(A) When the agency adopts a final rule, the agency 
     shall publish a notice of final rule making. The notice shall 
     include--
       ``(i) a concise, general statement of the rule's basis and 
     purpose;
       ``(ii) the agency's reasoned final determination of need 
     for a rule to address the problem the agency seeks to address 
     with the rule, including a statement of whether a rule is 
     required by statute;
       ``(iii) the agency's reasoned final determination that the 
     benefits of the rule meet the relevant statutory objectives 
     and justify the rule's costs (including all costs to be 
     considered under subsection (b)(6));
       ``(iv) the agency's reasoned final determination not to 
     adopt any of the alternatives to the proposed rule considered 
     by the agency during the rule making, including--
       ``(I) the agency's reasoned final determination that no 
     alternative considered achieved the relevant statutory 
     objectives with lower costs (including costs to be considered 
     under subsection (b)(6)) than the rule; or
       ``(II) the agency's reasoned final determination that its 
     adoption of a more costly rule complies with paragraph 
     (3)(B);
       ``(v) the agency's reasoned final determination--
       ``(I) that existing rules have not created or contributed 
     to the problem the agency seeks to address with the rule; or
       ``(II) that existing rules have created or contributed to 
     the problem the agency seeks to address with the rule, and, 
     if so--
       ``(aa) why amendment or rescission of such existing rules 
     is not alone sufficient to respond to the problem; and
       ``(bb) whether and how the agency intends to amend or 
     rescind the existing rule separate from adoption of the rule;
       ``(vi) the agency's reasoned final determination that the 
     evidence and other information upon which the agency bases 
     the rule complies with of the Information Quality Act; and
       ``(vii) for any major rule or high-impact rule, the 
     agency's plan for review of the rule no less frequently than 
     every 10 years to determine whether, based upon evidence, 
     there remains a need for the rule, whether the rule is in 
     fact achieving statutory objectives, whether the rule's 
     benefits continue to justify its costs, and whether the rule 
     can be modified or rescinded to reduce costs while continuing 
     to achieve statutory objectives.
       ``(B) Review of a rule under a plan required by paragraph 
     (4)(G) shall take into account the factors and criteria set 
     forth in subsections (b) through (e) and this subsection.
       ``(C) All information considered by the agency in 
     connection with its adoption of the rule, and, at the 
     discretion of the President or the Administrator of the 
     Office of Information and Regulatory Affairs, information 
     provided by that Office in consultations with the agency, 
     shall be placed in the docket for the rule and made 
     accessible to the public for the public's use not later than 
     the date on which the rule is adopted.
       ``(g) Exceptions From Notice and Hearing Requirements.--(1) 
     Except when notice or hearing is required by statute, 
     subsections (c) through (e) of this section do not apply to 
     interpretive rules, general statements of policy, or rules of 
     agency organization, procedure, or practice.
       ``(2)(A) When the agency for good cause, based upon 
     evidence, finds (and incorporates the finding and a brief 
     statement of reasons therefor in the rules issued) that 
     compliance with subsection (c), (d), or (e) or requirements 
     to render final determinations under subsection (f) of this 
     section before the issuance of an interim rule is 
     impracticable or contrary to the public interest, including 
     interests of national security, such subsections or 
     requirements to render final determinations shall not apply 
     to the agency's adoption of an interim rule.
       ``(B) If, following compliance with subparagraph (A) of 
     this paragraph, the agency adopts an interim rule, it shall 
     commence proceedings that comply fully with subsections (c) 
     through (f) of this section immediately upon publication of 
     the interim rule. No less than 270 days from publication of 
     the interim rule (or 18 months in the case of a major rule or 
     high-impact rule), the agency shall complete rule making 
     under subsections (c) through (f) of this subsection and take 
     final action to adopt a final rule or rescind the interim 
     rule. If the agency fails to take timely final action, the 
     interim rule shall cease to have the effect of law.
       ``(C) Other than in cases involving interests of national 
     security, upon the agency's publication of an interim rule 
     without compliance with subsections (c), (d), or (e) or 
     requirements to render final determinations under subsection 
     (f) of this section, an interested party may seek immediate 
     judicial review under chapter 7 of this title of the agency's 
     determination to adopt such interim rule. The record on such 
     review shall include all documents and information considered 
     by the agency and any additional information presented by a 
     party that the court determines necessary to consider to 
     assure justice.
       ``(h) Additional Requirements for Hearings.--When a hearing 
     is required under subsection (e) or is otherwise required by 
     statute or at the agency's discretion before adoption of a 
     rule, the agency shall comply with the requirements of 
     sections 556 and 557 in addition to the requirements of 
     subsection (f) in adopting the rule and in providing notice 
     of the rule's adoption.
       ``(i) Date of Publication of Rule.--The required 
     publication or service of a substantive final or interim rule 
     shall be made not less than 30 days before the effective date 
     of the rule, except--
       ``(1) a substantive rule which grants or recognizes an 
     exemption or relieves a restriction;
       ``(2) interpretive rules and statements of policy; or
       ``(3) as otherwise provided by the agency for good cause 
     found and published with the rule.
       ``(j) Right To Petition.--Each agency shall give an 
     interested person the right to petition for the issuance, 
     amendment, or repeal of a rule.
       ``(k) Rule Making Guidelines.--(1)(A) The Administrator of 
     the Office of Information and Regulatory Affairs shall have 
     authority to establish guidelines for the assessment, 
     including quantitative and qualitative assessment, of the 
     costs and benefits of potential, proposed, and final rules 
     and other economic issues or issues related to risk that are 
     relevant to rule making under this section and other sections 
     of this title. The rigor of cost-benefit analysis required by 
     such guidelines shall be commensurate, in the Administrator's 
     determination, with the economic impact of the rule.
       ``(B) To ensure that agencies use the best available 
     techniques to quantify and evaluate anticipated present and 
     future benefits, costs, other economic issues, and risks as 
     accurately as possible, the Administrator of the Office of 
     Information and Regulatory Affairs shall regularly update 
     guidelines established under subparagraph (A).
       ``(2) The Administrator of the Office of Information and 
     Regulatory Affairs shall also have authority to issue 
     guidelines to promote coordination, simplification and 
     harmonization of agency rules during the rule making process 
     and otherwise. Such guidelines shall assure that each agency 
     avoids regulations that are inconsistent or incompatible 
     with, or duplicative of, its other regulations and those of 
     other Federal agencies and drafts its regulations to be 
     simple and easy to understand, with the goal of minimizing 
     the potential for uncertainty and litigation arising from 
     such uncertainty.
       ``(3)(A) To ensure consistency in Federal rule making, the 
     Administrator of the Office of Information and Regulatory 
     Affairs shall--
       ``(i) issue guidelines and otherwise take action to ensure 
     that rule makings conducted in whole or in part under 
     procedures specified in provisions of law other than those 
     under this subchapter conform to the fullest extent allowed 
     by law with the procedures set forth in this section; and
       ``(ii) issue guidelines for the conduct of hearings under 
     subsections (d)(4) and (e), including to assure a reasonable 
     opportunity for cross-examination.
       ``(B) Each agency shall adopt regulations for the conduct 
     of hearings consistent with the guidelines issued under this 
     subparagraph.
       ``(4) The Administrator of the Office of Information and 
     Regulatory Affairs shall issue guidelines under the 
     Information Quality Act to apply in rule making proceedings 
     under this section and sections 556 and 557. In all cases, 
     the guidelines, and the Administrator's specific 
     determinations regarding agency compliance with the 
     guidelines, shall be entitled to judicial deference.
       ``(l) Record.--The agency shall include in the record for a 
     rule making all documents and information considered by the 
     agency during the proceeding, including, at the discretion of 
     the President or the Administrator of the Office of 
     Information and Regulatory Affairs, documents and information 
     communicated by that Office during consultation with the 
     agency.
       ``(m) Exemption for Monetary Policy.--Nothing in subsection 
     (b)(6), subparagraph (F) through (G) of subsection (d)(1), 
     subsection (e), subsection (f)(3), or clauses (iii)

[[Page 5486]]

     and (iv) of subsection (f)(4)(A) shall apply to rule makings 
     that concern monetary policy proposed or implemented by the 
     Board of Governors of the Federal Reserve System or the 
     Federal Open Market Committee.''.

     SEC. 314. AGENCY GUIDANCE; PROCEDURES TO ISSUE MAJOR 
                   GUIDANCE; PRESIDENTIAL AUTHORITY TO ISSUE 
                   GUIDELINES FOR ISSUANCE OF GUIDANCE.

       (a) In General.--Chapter 5 of title 5, United States Code, 
     is amended by inserting after section 553 the following:

     ``Sec. 553a. Agency guidance; procedures to issue major 
       guidance; authority to issue guidelines for issuance of 
       guidance

       ``(a) Before issuing any major guidance, an agency shall--
       ``(1) make and document a reasoned determination that--
       ``(A) assures that such guidance is understandable and 
     complies with relevant statutory objectives and regulatory 
     provisions;
       ``(B) identifies the costs and benefits (including all 
     costs to be considered during the rule making under section 
     553(b) of this title) of conduct conforming to such guidance 
     and assures that such benefits justify such costs; and
       ``(C) describes alternatives to such guidance and their 
     costs and benefits (including all costs to be considered 
     during rule making under section 553(b) of this title) and 
     explains why the agency rejected those alternatives; and
       ``(2) confer with the Administrator of the Office of 
     Information and Regulatory Affairs on the issuance of such 
     guidance to assure that the guidance is reasonable, 
     understandable, consistent with relevant statutory and 
     regulatory provisions and requirements or practices of other 
     agencies, does not produce costs that are unjustified by the 
     guidance's benefits, and is otherwise appropriate.
       ``(b) Agency Guidance.--
       ``(1) is not legally binding and may not be relied upon by 
     an agency as legal grounds for agency action;
       ``(2) shall state in a plain, prominent and permanent 
     manner that it is not legally binding; and
       ``(3) shall, at the time it is issued or upon request, be 
     made available by the issuing agency to interested persons 
     and the public.
       ``(c) The Administrator of the Office of Information and 
     Regulatory Affairs shall have authority to issue guidelines 
     for use by the agencies in the issuance of major guidance and 
     other guidance. Such guidelines shall assure that each agency 
     avoids issuing guidance documents that are inconsistent or 
     incompatible with, or duplicative of, its other regulations 
     and those of other Federal agencies and drafts its guidance 
     documents to be simple and easy to understand, with the goal 
     of minimizing the potential for uncertainty and litigation 
     arising from such uncertainty.''.
       (b) Technical and Conforming Amendment.--The table of 
     sections for chapter 5 of title 5, United States Code, is 
     amended by inserting after the item relating to section 553 
     the following:

``553a. Agency guidance; procedures to issue major guidance; 
              presidential authority to issue guidelines for issuance 
              of guidance.''.

     SEC. 315. HEARINGS; PRESIDING EMPLOYEES; POWERS AND DUTIES; 
                   BURDEN OF PROOF; EVIDENCE; RECORD AS BASIS OF 
                   DECISION.

       Section 556 of title 5, United States Code, is amended by 
     striking subsection (e) and inserting the following:
       ``(e)(1) The transcript of testimony and exhibits, together 
     with all papers and requests filed in the proceeding, 
     constitutes the exclusive record for decision in accordance 
     with section 557 and, on payment of lawfully prescribed 
     costs, shall be made available to the parties. When an agency 
     decision rests on official notice of a material fact not 
     appearing in the evidence in the record, a party is entitled, 
     on timely request, to an opportunity to show the contrary.
       ``(2) Notwithstanding paragraph (1) of this subsection, in 
     a proceeding held under this section under section 553(d)(4) 
     or 553(e), the record for decision shall include any 
     information that is part of the record of proceedings under 
     section 553.
       ``(f) When an agency conducts rule making under this 
     section and section 557 directly after concluding proceedings 
     upon an advance notice of proposed rule making under section 
     553(c), the matters to be considered and determinations to be 
     made shall include, among other relevant matters and 
     determinations, the matters and determinations described in 
     subsections (b) and (f) of section 553.
       ``(g)(1) Upon receipt of a petition for a hearing under 
     this section, the agency shall grant the petition in the case 
     of any major rule, unless the agency reasonably determines 
     that a hearing would not advance consideration of the rule or 
     would, in light of the need for agency action, unreasonably 
     delay completion of the rule making. The agency shall publish 
     its decision to grant or deny the petition when it renders 
     the decision, including an explanation of the grounds for 
     decision. The information contained in the petition shall in 
     all cases be included in the administrative record.
       ``(2) This subsection shall not apply to rule makings that 
     concern monetary policy proposed or implemented by the Board 
     of Governors of the Federal Reserve System or the Federal 
     Open Market Committee.''.

     SEC. 316. ACTIONS REVIEWABLE.

       Section 704 of title 5, United States Code, is amended--
       (1) by striking ``Agency action made'' and inserting ``(a) 
     Agency action made''; and
       (2) by adding at the end the following:
       ``(b)(1) Except as provided under paragraph (2) and 
     notwithstanding subsection (a), upon the agency's publication 
     of an interim rule without compliance with subsection (c), 
     (d), or (e) of section 553 or requirements to render final 
     determinations under subsection (f) of section 553, an 
     interested party may seek immediate judicial review under 
     this chapter of the agency's determination to adopt such rule 
     on an interim basis. Review shall be limited to whether the 
     agency abused its discretion to adopt the interim rule 
     without compliance with subsection (c), (d), or (e) of 
     section 553 or without rendering final determinations under 
     subsection (f) of section 553.
       ``(2) This subsection shall not apply in cases involving 
     interests of national security.
       ``(c) For rules other than major rules and high-impact 
     rules, compliance with subsection (b)(6), subparagraphs (F) 
     through (G) of subsection (d)(1), subsection (f)(3), and 
     clauses (iii) and (iv) of subsection (f)(4)(A) of section 553 
     shall not be subject to judicial review. In all cases, the 
     determination that a rule is not a major rule within the 
     meaning of section 551(19)(A) or a high-impact rule shall be 
     subject to judicial review under section 706(a)(2)(A).
       ``(d) Nothing in this section shall be construed to limit 
     judicial review of an agency's consideration of costs or 
     benefits as a mandatory or discretionary factor under the 
     statute authorizing the rule or any other applicable 
     statute.''.

     SEC. 317. SCOPE OF REVIEW.

       Section 706 of title 5, United States Code is amended--
       (1) by striking ``To the extent necessary'' and inserting 
     ``(a) To the extent necessary'';
       (2) in paragraph (2)(A) of subsection (a) (as redesignated 
     by paragraph (1) of this section), by inserting after ``in 
     accordance with law'' the following: ``(including the 
     Information Quality Act as defined under section 551(17))''; 
     and
       (3) by adding at the end the following:
       ``(b) The court shall not defer to the agency's--
       ``(1) interpretation of an agency rule if the agency did 
     not comply with the procedures of section 553 or sections 556 
     and 557 to issue the interpretation;
       ``(2) determination of the costs and benefits or other 
     economic or risk assessment of the regulatory action, if the 
     agency failed to conform to guidelines on such determinations 
     and assessments established by the Administrator of the 
     Office of Information and Regulatory Affairs under section 
     553(k); or
       ``(3) determinations under interlocutory review under 
     sections 553(g)(2)(C) and 704(2).
       ``(c) The court shall review agency denials of petitions 
     under section 553(e)(6) or any other petition for a hearing 
     under sections 556 and 557 for abuse of agency discretion.''.

     SEC. 318. ADDED DEFINITION.

       Section 701(b) of title 5, United States Code, is amended--
       (1) in paragraph (1), by striking ``and'';
       (2) in paragraph (2), by striking the period at the end, 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(3) `substantial evidence' means such relevant evidence 
     as a reasonable mind might accept as adequate to support a 
     conclusion in light of the record considered as a whole, 
     taking into account whatever in the record fairly detracts 
     from the weight of the evidence relied upon by the agency to 
     support its decision.''.

     SEC. 319. EFFECTIVE DATE.

       The amendments made by this title to--
       (1) sections 553, 556, and 704 of title 5, United States 
     Code;
       (2) section 701(b) of title 5, United States Code;
       (3) paragraphs (4) and (5) of section 706(b) of title 5, 
     United States Code; and
       (4) section 706(c) of title 5, United States Code,
     shall not apply to any rule makings pending or completed on 
     the date of enactment of this Act.

    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.

[[Page 5487]]



     Subtitle A--Amendments to the Workforce Investment Act of 1998

              CHAPTER 1--WORKFORCE INVESTMENT DEFINITIONS

     SEC. 406. DEFINITIONS.

       Section 101 (29 U.S.C. 2801) is amended--
       (1) by striking paragraph (2) and inserting the following:
       ``(2) Adult education and family literacy education 
     activities.--The term `adult education and family literacy 
     education activities' has the meaning given the term in 
     section 203.'';
       (2) by striking paragraphs (13) and (24);
       (3) by redesignating paragraphs (1) through (12) as 
     paragraphs (3) through (14), and paragraphs (14) through (23) 
     as paragraphs (15) through (24), respectively;
       (4) by striking paragraphs (52) and (53);
       (5) by inserting after ``In this title:'' the following new 
     paragraphs:
       ``(1) Accrued expenditures.--The term `accrued 
     expenditures' means--
       ``(A) charges incurred by recipients of funds under this 
     title for a given period requiring the provision of funds for 
     goods or other tangible property received;
       ``(B) charges incurred for services performed by employees, 
     contractors, subgrantees, subcontractors, and other payees; 
     and
       ``(C) other amounts becoming owed, under programs assisted 
     under this title, for which no current services or 
     performance is required, such as amounts for annuities, 
     insurance claims, and other benefit payments.
       ``(2) Administrative costs.--The term `administrative 
     costs' means expenditures incurred by State boards and local 
     boards, direct recipients (including State grant recipients 
     under subtitle B and recipients of awards under subtitles C 
     and D), local grant recipients, local fiscal agents or local 
     grant subrecipients, and one-stop operators in the 
     performance of administrative functions and in carrying out 
     activities under this title that are not related to the 
     direct provision of workforce investment activities 
     (including services to participants and employers). Such 
     costs include both personnel and non-personnel expenditures 
     and both direct and indirect expenditures.'';
       (6) in paragraph (3) (as so redesignated), by striking 
     ``Except in sections 127 and 132, the'' and inserting 
     ``The'';
       (7) by amending paragraph (5) (as so redesignated) to read 
     as follows:
       ``(5) Area career and technical education school.--The term 
     `area career and technical education school' has the meaning 
     given the term in section 3(3) of the Carl D. Perkins Career 
     and Technical Education Act of 2006 (20 U.S.C. 2302(3)).'';
       (8) in paragraph (6) (as so redesignated), by inserting 
     ``(or such other level as the Governor may establish)'' after 
     ``8th grade level'';
       (9) in paragraph (10)(C) (as so redesignated), by striking 
     ``not less than 50 percent of the cost of the training'' and 
     inserting ``a significant portion of the cost of training, as 
     determined by the local board involved (or, in the case of an 
     employer in multiple local areas in the State, as determined 
     by the Governor), taking into account the size of the 
     employer and such other factors as the local board or 
     Governor, respectively, determines to be appropriate'';
       (10) in paragraph (11) (as so redesignated)--
       (A) in subparagraph (A)(ii)(II), by striking ``section 
     134(c)'' and inserting ``section 121(e)'';
       (B) in subparagraph (B)(iii)--
       (i) by striking ``134(d)(4)'' and inserting ``134(c)(4)''; 
     and
       (ii) by striking ``intensive services described in section 
     134(d)(3)'' and inserting ``work ready services described in 
     section 134(c)(2)'';
       (C) in subparagraph (C), by striking ``or'' after the 
     semicolon;
       (D) in subparagraph (D), by striking the period and 
     inserting ``; or''; and
       (E) by adding at the end the following:
       ``(E)(i) is the spouse of a member of the Armed Forces on 
     active duty for a period of more than 30 days (as defined in 
     section 101(d)(2) of title 10, United States Code) who has 
     experienced a loss of employment as a direct result of 
     relocation to accommodate a permanent change in duty station 
     of such member; or
       ``(ii) is the spouse of a member of the Armed Forces on 
     active duty (as defined in section 101(d)(1) of title 10, 
     United States Code) who meets the criteria described in 
     paragraph (12)(B).'';
       (11) in paragraph (12)(A) (as redesignated)--
       (A) by striking ``and'' after the semicolon and inserting 
     ``or'';
       (B) by striking ``(A)'' and inserting ``(A)(i)''; and
       (C) by adding at the end the following:
       ``(ii) is the spouse of a member of the Armed Forces on 
     active duty for a period of more than 30 days (as defined in 
     section 101(d)(2) of title 10, United States Code) whose 
     family income is significantly reduced because of a 
     deployment (as defined in section 991(b) of title 10, United 
     States Code, or pursuant to paragraph (4) of such section), a 
     call or order to active duty pursuant to a provision of law 
     referred to in section 101(a)(13)(B) of title 10, United 
     States Code, a permanent change of station, or the service-
     connected (as defined in section 101(16) of title 38, United 
     States Code) death or disability of the member; and'';
       (12) in paragraph (13) (as so redesignated), by inserting 
     ``or regional'' after ``local'' each place it appears;
       (13) in paragraph (14) (as so redesignated)--
       (A) in subparagraph (A), by striking ``section 122(e)(3)'' 
     and inserting ``section 122'';
       (B) by striking subparagraph (B), and inserting the 
     following:
       ``(B) work ready services, means a provider who is 
     identified or awarded a contract as described in section 
     117(d)(5)(C); or'';
       (C) by striking subparagraph (C); and
       (D) by redesignating subparagraph (D) as subparagraph (C);
       (14) in paragraph (15) (as so redesignated), by striking 
     ``adult or dislocated worker'' and inserting ``individual'';
       (15) in paragraph (20), by striking ``The'' and inserting 
     ``Subject to section 116(a)(1)(E), the'';
       (16) in paragraph (25)--
       (A) in subparagraph (B), by striking ``higher of--'' and 
     all that follows through clause (ii) and inserting ``poverty 
     line for an equivalent period;'';
       (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

[[Page 5488]]

     include a bonus payment to such provider, which may be used 
     to expand the capacity of such provider;
       ``(C) the ability for an eligible provider to recoup the 
     costs of providing the activities for a program participant 
     who has not achieved those levels, but for whom the provider 
     is able to demonstrate that such participant gained specific 
     competencies required for education and career advancement 
     that are, where feasible, tied to industry-recognized 
     credentials and related standards, or State licensing 
     requirements; and
       ``(D) the ability for an eligible provider that does not 
     meet the requirements under section 122(a)(2) to participate 
     in such pay-for-performance contract and to not be required 
     to report on the performance and cost information required 
     under section 122(d).
       ``(56) Recognized postsecondary credential.--The term 
     `recognized postsecondary credential' means a credential 
     awarded by a provider of training services or postsecondary 
     educational institution based on completion of all 
     requirements for a program of study, including coursework or 
     tests or other performance evaluations. The term means an 
     industry-recognized credential, a certificate of completion 
     of a registered apprenticeship program, or an associate or 
     baccalaureate degree from an institution described in section 
     122(a)(2)(A)(i).
       ``(57) Registered apprenticeship program.--The term 
     `registered apprenticeship program' means a program described 
     in section 122(a)(2)(B).''.

      CHAPTER 2--STATEWIDE AND LOCAL WORKFORCE INVESTMENT SYSTEMS

     SEC. 411. PURPOSE.

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

     SEC. 412. STATE WORKFORCE INVESTMENT BOARDS.

       Section 111 (29 U.S.C. 2821) is amended--
       (1) in subsection (b)--
       (A) in paragraph (1)--
       (i) by striking subparagraph (B);
       (ii) by redesignating subparagraph (C) as subparagraph (B); 
     and
       (iii) in subparagraph (B) (as so redesignated)--

       (I) by amending clause (i)(I), by striking ``section 
     117(b)(2)(A)(i)'' and inserting ``section 117(b)(2)(A)'';
       (II) by amending clause (i)(II) to read as follows:
       ``(II) represent businesses, including large and small 
     businesses, each of which has immediate and long-term 
     employment opportunities in an in-demand industry or other 
     occupation important to the State economy; and'';
       (III) by striking clause (iii) and inserting the following:

       ``(iii) a State agency official responsible for economic 
     development; and'';

       (IV) by striking clauses (iv) through (vi);
       (V) by amending clause (vii) to read as follows:

       ``(vii) such other representatives and State agency 
     officials as the Governor may designate, including--

       ``(I) members of the State legislature;
       ``(II) representatives of individuals and organizations 
     that have experience with respect to youth activities;
       ``(III) representatives of individuals and organizations 
     that have experience and expertise in the delivery of 
     workforce investment activities, including chief executive 
     officers of community colleges and community-based 
     organizations within the State;
       ``(IV) representatives of the lead State agency officials 
     with responsibility for the programs and activities that are 
     described in section 121(b) and carried out by one-stop 
     partners; or
       ``(V) representatives of veterans service organizations.''; 
     and
       (VI) by redesignating clause (vii) (as so amended) as 
     clause (iv); and

       (B) by amending paragraph (3) to read as follows:
       ``(3) Majority.--A \2/3\ majority of the members of the 
     board shall be representatives described in paragraph 
     (1)(B)(i).'';
       (2) in subsection (c), by striking ``(b)(1)(C)(i)'' and 
     inserting ``(b)(1)(B)(i)'';
       (3) by amending subsection (d) to read as follows:
       ``(d) Functions.--The State board shall assist the Governor 
     of the State as follows:
       ``(1) State plan.--Consistent with section 112, the State 
     board shall develop a State plan.
       ``(2) Statewide workforce development system.--The State 
     board shall review and develop statewide policies and 
     programs in the State in a manner that supports a 
     comprehensive statewide workforce development system that 
     will result in meeting the workforce needs of the State and 
     its local areas. Such review shall include determining 
     whether the State should consolidate additional amounts for 
     additional activities or programs into the Workforce 
     Investment Fund in accordance with section 501(e).
       ``(3) Workforce and labor market information system.--The 
     State board shall develop a statewide workforce and labor 
     market information system described in section 15(e) of the 
     Wagner-Peyser Act (29 U.S.C. 49l-2(e)), which may include 
     using information collected under Federal law other than this 
     Act by the State economic development entity or a related 
     entity in developing such system.
       ``(4) Employer engagement.--The State board shall develop 
     strategies, across local areas, that meet the needs of 
     employers and support economic growth in the State by 
     enhancing communication, coordination, and collaboration 
     among employers, economic development entities, and service 
     providers.
       ``(5) Designation of local areas.--The State board shall 
     designate local areas as required under section 116.
       ``(6) One-stop delivery system.--The State board shall 
     identify and disseminate information on best practices for 
     effective operation of one-stop centers, including use of 
     innovative business outreach, partnerships, and service 
     delivery strategies.
       ``(7) Program oversight.--The State board shall conduct the 
     following program oversight:
       ``(A) Reviewing and approving local plans under section 
     118.
       ``(B) Ensuring the appropriate use and management of the 
     funds provided for State employment and training activities 
     authorized under section 134.
       ``(C) Preparing an annual report to the Secretary described 
     in section 136(d).
       ``(8) Development of performance measures.--The State board 
     shall develop and ensure continuous improvement of 
     comprehensive State performance measures, including State 
     adjusted levels of performance, as described under section 
     136(b).'';
       (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)--

[[Page 5489]]

       (i) in subparagraph (A)--

       (I) in clause (ii)--

       (aa) by striking ``to dislocated workers''; and
       (bb) by inserting ``and additional assistance'' after 
     ``rapid response activities'';

       (II) in clause (iii), by striking ``134(d)(4)'' and 
     inserting ``134(c)(4)'';
       (III) by striking ``and'' at the end of clause (iii);
       (IV) by amending clause (iv) to read as follows:

       ``(iv) how the State will serve the employment and training 
     needs of dislocated workers (including displaced homemakers), 
     low-income individuals (including recipients of public 
     assistance such as supplemental nutrition assistance program 
     benefits pursuant to the Food and Nutrition Act of 2008 (7 
     U.S.C. 2011 et seq.)), long-term unemployed individuals 
     (including individuals who have exhausted entitlement to 
     Federal and State unemployment compensation), English 
     learners, homeless individuals, individuals training for 
     nontraditional employment, youth (including out-of-school 
     youth and at-risk youth), older workers, ex-offenders, 
     migrant and seasonal farmworkers, refugees and entrants, 
     veterans (including disabled and homeless veterans), and 
     Native Americans; and''; and

       (V) by adding at the end the following new clause:

       ``(v) how the State will--

       ``(I) consistent with section 188 and Executive Order No. 
     13217 (42 U.S.C. 12131 note), serve the employment and 
     training needs of individuals with disabilities; and
       ``(II) consistent with sections 504 and 508 of the 
     Rehabilitation Act of 1973 (29 U.S.C. 794, 794d), include the 
     provision of outreach, intake, assessments, and service 
     delivery, the development of performance measures, the 
     training of staff, and other aspects of accessibility for 
     individuals with disabilities to programs and services under 
     this subtitle;''; and

       (ii) in subparagraph (B), by striking ``to the extent 
     practicable'' and inserting ``in accordance with the 
     requirements of the Jobs for Veterans Act (Public Law 107-
     288) and the amendments made by such Act''; and
       (L) by striking paragraph (17) (as so redesignated) and 
     inserting the following:
       ``(17) a description of the strategies and services that 
     will be used in the State--
       ``(A) to more fully engage employers, including small 
     businesses and employers in in-demand industries and 
     occupations important to the State economy;
       ``(B) to meet the needs of employers in the State; and
       ``(C) to better coordinate workforce development programs 
     with economic development activities;
       ``(18) a description of how the State board will convene 
     (or help to convene) industry or sector partnerships that 
     lead to collaborative planning, resource alignment, and 
     training efforts across a targeted cluster of multiple firms 
     for a range of workers employed or potentially employed by 
     the industry or sector--
       ``(A) to encourage industry growth and competitiveness and 
     to improve worker training, retention, and advancement in the 
     industry or sector;
       ``(B) to address the immediate and long-term skilled 
     workforce needs of in-demand industries, small businesses, 
     and other occupations important to the State economy; and
       ``(C) to address critical skill gaps within and across 
     industries and sectors;
       ``(19) a description of how the State will utilize 
     technology, to facilitate access to services in remote areas, 
     which may be used throughout the State;
       ``(20) a description of the State strategy and assistance 
     to be provided by the State for encouraging regional 
     cooperation within the State and across State borders, as 
     appropriate;
       ``(21) a description of the actions that will be taken by 
     the State to foster communication, coordination, and 
     partnerships with nonprofit organizations (including public 
     libraries, community, faith-based, and philanthropic 
     organizations) that provide employment-related, training, and 
     complementary services, to enhance the quality and 
     comprehensiveness of services available to participants under 
     this title;
       ``(22) a description of the process and methodology for 
     determining--
       ``(A) one-stop partner program contributions for the costs 
     of infrastructure of one-stop centers under section 
     121(h)(1); and
       ``(B) the formula for allocating such infrastructure funds 
     to local areas under section 121(h)(3);
       ``(23) a description of the strategies and services that 
     will be used in the State to assist at-risk youth and out-of-
     school youth in acquiring the education and skills, 
     credentials (including recognized postsecondary credentials, 
     such as industry-recognized credentials), and employment 
     experience to succeed in the labor market, including--
       ``(A) training and internships in in-demand industries or 
     occupations important to the State and local economy;
       ``(B) dropout recovery activities that are designed to lead 
     to the attainment of a regular secondary school diploma or 
     its recognized equivalent, or other State-recognized 
     equivalent (including recognized alternative standards for 
     individuals with disabilities); and
       ``(C) activities combining remediation of academic skills, 
     work readiness training, and work experience, and including 
     linkages to postsecondary education and training and career-
     ladder employment; and
       ``(24) a description of--
       ``(A) how the State will furnish employment, training, 
     including training in advanced manufacturing, supportive, and 
     placement services to veterans, including disabled and 
     homeless veterans;
       ``(B) the strategies and services that will be used in the 
     State to assist in and expedite reintegration of homeless 
     veterans into the labor force; and
       ``(C) the veterans population to be served in the State.'';
       (3) in subsection (c), by striking ``period, that--'' and 
     all that follows through paragraph (2) and inserting 
     ``period, that the plan is inconsistent with the provisions 
     of this title.''; and
       (4) in subsection (d), by striking ``5-year'' and inserting 
     ``3-year''.

     SEC. 414. LOCAL WORKFORCE INVESTMENT AREAS.

       Section 116 (29 U.S.C. 2831) is amended--
       (1) in subsection (a)--
       (A) by amending paragraph (1) to read as follows:
       ``(1) In general.--
       ``(A) Process.--In order to receive an allotment under 
     section 132, a State, through the State board, shall 
     establish a process to designate local workforce investment 
     areas within the State. Such process shall--
       ``(i) support the statewide workforce development system 
     developed under section 111(d)(2), enabling the system to 
     meet the workforce needs of the State and its local areas;
       ``(ii) include consultation, prior to the designation, with 
     chief elected officials;
       ``(iii) include consideration of comments received on the 
     designation through the public comment process as described 
     in section 112(b)(9); and
       ``(iv) require the submission of an application for 
     approval under subparagraph (B).
       ``(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

[[Page 5490]]

     the elements of the local plan under section 118 and that is 
     submitted and approved in lieu of separate local plans under 
     such section.''; and
       (B) in paragraph (2), by striking ``employment statistics'' 
     and inserting ``workforce and labor market information''.

     SEC. 415. LOCAL WORKFORCE INVESTMENT BOARDS.

       Section 117 (29 U.S.C. 2832) is amended--
       (1) in subsection (b)--
       (A) in paragraph (2)--
       (i) in subparagraph (A)--

       (I) by striking ``include--'' and all that follows through 
     ``representatives'' and inserting ``include 
     representatives'';
       (II) by striking clauses (ii) through (vi);
       (III) by redesignating subclauses (I) through (III) as 
     clauses (i) through (iii), respectively (and by moving the 
     margins of such clauses 2 ems to the left);
       (IV) by striking clause (ii) (as so redesignated) and 
     inserting the following:

       ``(ii) represent businesses, including large and small 
     businesses, each of which has immediate and long-term 
     employment opportunities in an in-demand industry or other 
     occupation important to the local economy; and''; and

       (V) by striking the semicolon at the end of clause (iii) 
     (as so redesignated) and inserting ``; and''; and

       (ii) by amending subparagraph (B) to read as follows:
       ``(B) may include such other individuals or representatives 
     of entities as the chief elected official in the local area 
     may determine to be appropriate, including--
       ``(i) the superintendent or other employee of the local 
     educational agency who has primary responsibility for 
     secondary education, the presidents or chief executive 
     officers of postsecondary educational institutions (including 
     a community college, where such an entity exists), or 
     administrators of local entities providing adult education 
     and family literacy education activities;
       ``(ii) representatives of community-based organizations 
     (including organizations representing individuals with 
     disabilities and veterans, for a local area in which such 
     organizations are present); or
       ``(iii) representatives of veterans service 
     organizations.'';
       (B) in paragraph (4)--
       (i) by striking ``A majority'' and inserting ``A \2/3\ 
     majority''; and
       (ii) by striking ``(2)(A)(i)'' and inserting ``(2)(A)''; 
     and
       (C) in paragraph (5), by striking ``(2)(A)(i)'' and 
     inserting ``(2)(A)'';
       (2) in subsection (c)--
       (A) in paragraph (1), by striking subparagraph (C); and
       (B) in paragraph (3)(A)(ii), by striking ``paragraphs (1) 
     through (7)'' and inserting ``paragraphs (1) through (8)'';
       (3) by amending subsection (d) to read as follows:
       ``(d) Functions of Local Board.--The functions of the local 
     board shall include the following:
       ``(1) Local plan.--Consistent with section 118, each local 
     board, in partnership with the chief elected official for the 
     local area involved, shall develop and submit a local plan to 
     the Governor.
       ``(2) Workforce research and regional labor market 
     analysis.--
       ``(A) In general.--The local board shall--
       ``(i) conduct, and regularly update, an analysis of--

       ``(I) the economic conditions in the local area;
       ``(II) the immediate and long-term skilled workforce needs 
     of in-demand industries and other occupations important to 
     the local economy;
       ``(III) the knowledge and skills of the workforce in the 
     local area; and
       ``(IV) workforce development activities (including 
     education and training) in the local area; and

       ``(ii) assist the Governor in developing the statewide 
     workforce and labor market information system described in 
     section 15(e) of the Wagner-Peyser Act (29 U.S.C. 49l-2(e)).
       ``(B) Existing analysis.--In carrying out requirements of 
     subparagraph (A)(i), a local board shall use an existing 
     analysis, if any, by the local economic development entity or 
     related entity.
       ``(3) Employer engagement.--The local board shall meet the 
     needs of employers and support economic growth in the local 
     area by enhancing communication, coordination, and 
     collaboration among employers, economic development entities, 
     and service providers.
       ``(4) Budget and administration.--
       ``(A) Budget.--
       ``(i) In general.--The local board shall develop a budget 
     for the activities of the local board in the local area, 
     consistent with the requirements of this subsection.
       ``(ii) Training reservation.--In developing a budget under 
     clause (i), the local board shall reserve a percentage of 
     funds to carry out the activities specified in section 
     134(c)(4). The local board shall use the analysis conducted 
     under paragraph (2)(A)(i) to determine the appropriate 
     percentage of funds to reserve under this clause.
       ``(B) Administration.--
       ``(i) Grant recipient.--The chief elected official in a 
     local area shall serve as the local grant recipient for, and 
     shall be liable for any misuse of, the grant funds allocated 
     to the local area under section 133, unless the chief elected 
     official reaches an agreement with the Governor for the 
     Governor to act as the local grant recipient and bear such 
     liability.
       ``(ii) Designation.--In order to assist in administration 
     of the grant funds, the chief elected official or the 
     Governor, where the Governor serves as the local grant 
     recipient for a local area, may designate an entity to serve 
     as a local grant subrecipient for such funds or as a local 
     fiscal agent. Such designation shall not relieve the chief 
     elected official or the Governor of the liability for any 
     misuse of grant funds as described in clause (i).
       ``(iii) Disbursal.--The local grant recipient or an entity 
     designated under clause (ii) shall disburse the grant funds 
     for workforce investment activities at the direction of the 
     local board, pursuant to the requirements of this title. The 
     local grant recipient or entity designated under clause (ii) 
     shall disburse the funds immediately on receiving such 
     direction from the local board.
       ``(C) Staff.--The local board may employ staff to assist in 
     carrying out the functions described in this subsection.
       ``(D) Grants and donations.--The local board may solicit 
     and accept grants and donations from sources other than 
     Federal funds made available under this Act.
       ``(5) Selection of operators and providers.--
       ``(A) Selection of one-stop operators.--Consistent with 
     section 121(d), the local board, with the agreement of the 
     chief elected official--
       ``(i) shall designate or certify one-stop operators as 
     described in section 121(d)(2)(A); and
       ``(ii) may terminate for cause the eligibility of such 
     operators.
       ``(B) Identification of eligible training service 
     providers.--Consistent with this subtitle, the local board 
     shall identify eligible providers of training services 
     described in section 134(c)(4) in the local area, annually 
     review the outcomes of such eligible providers using the 
     criteria under section 122(b)(2), and designate such eligible 
     providers in the local area who have demonstrated the highest 
     level of success with respect to such criteria as priority 
     eligible providers for the program year following the review.
       ``(C) Identification of eligible providers of work ready 
     services.--If the one-stop operator does not provide the 
     services described in section 134(c)(2) in the local area, 
     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--

[[Page 5491]]

       ``(A) a description of how the local board will ensure--
       ``(i) the continuous improvement of eligible providers of 
     services through the system; and
       ``(ii) that such providers meet the employment needs of 
     local businesses and participants; and
       ``(B) a description of how the local board will facilitate 
     access to services described in section 117(d)(8) and 
     provided through the one-stop delivery system consistent with 
     section 117(d)(8);
       ``(3) a description of the strategies and services that 
     will be used in the local area--
       ``(A) to more fully engage employers, including small 
     businesses and employers in in-demand industries and 
     occupations important to the local economy;
       ``(B) to meet the needs of employers in the local area;
       ``(C) to better coordinate workforce development programs 
     with economic development activities; and
       ``(D) to better coordinate workforce development programs 
     with employment, training, and literacy services carried out 
     by nonprofit organizations, including public libraries, as 
     appropriate;
       ``(4) a description of how the local board will convene (or 
     help to convene) industry or sector partnerships that lead to 
     collaborative planning, resource alignment, and training 
     efforts across multiple firms for a range of workers employed 
     or potentially employed by a targeted industry or sector--
       ``(A) to encourage industry growth and competitiveness and 
     to improve worker training, retention, and advancement in the 
     targeted industry or sector;
       ``(B) to address the immediate and long-term skilled 
     workforce needs of in-demand industries, small businesses, 
     and other occupations important to the local economy; and
       ``(C) to address critical skill gaps within and across 
     industries and sectors;
       ``(5) a description of how the funds reserved under section 
     117(d)(4)(A)(ii) will be used to carry out activities 
     described in section 134(c)(4);
       ``(6) a description of how the local board will coordinate 
     workforce investment activities carried out in the local area 
     with statewide workforce investment activities, as 
     appropriate;
       ``(7) a description of how the local area will--
       ``(A) coordinate activities with the local area's 
     disability community, and with transition services (as 
     defined under section 602 of the Individuals with 
     Disabilities Education Act (20 U.S.C. 1401)) provided under 
     that Act by local educational agencies serving such local 
     area, to make available comprehensive, high-quality services 
     to individuals with disabilities;
       ``(B) consistent with section 188 and Executive Order No. 
     13217 (42 U.S.C. 12131 note), serve the employment and 
     training needs of individuals with disabilities, with a focus 
     on employment that fosters independence and integration into 
     the workplace; and
       ``(C) consistent with sections 504 and 508 of the 
     Rehabilitation Act of 1973 (29 U.S.C. 794, 794d), include the 
     provision of outreach, intake, assessments, and service 
     delivery, the development of performance measures, the 
     training of staff, and other aspects of accessibility for 
     individuals with disabilities to programs and services under 
     this subtitle;
       ``(8) a description of the local levels of performance 
     negotiated with the Governor and chief elected official 
     pursuant to section 136(c), to be--
       ``(A) used to measure the performance of the local area; 
     and
       ``(B) used by the local board for measuring performance of 
     the local fiscal agent (where appropriate), eligible 
     providers, and the one-stop delivery system, in the local 
     area;
       ``(9) a description of the process used by the local board, 
     consistent with subsection (c), to provide an opportunity for 
     public comment prior to submission of the plan;
       ``(10) a description of how the local area will serve the 
     employment and training needs of dislocated workers 
     (including displaced homemakers), low-income individuals 
     (including recipients of public assistance such as 
     supplemental nutrition assistance program benefits pursuant 
     to the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et 
     seq.)), long-term unemployed individuals (including 
     individuals who have exhausted entitlement to Federal and 
     State unemployment compensation), English learners, homeless 
     individuals, individuals training for nontraditional 
     employment, youth (including out-of-school youth and at-risk 
     youth), older workers, ex-offenders, migrant and seasonal 
     farmworkers, refugees and entrants, veterans (including 
     disabled veterans and homeless veterans), and Native 
     Americans;
       ``(11) an identification of the entity responsible for the 
     disbursal of grant funds described in section 
     117(d)(4)(B)(iii), as determined by the chief elected 
     official or the Governor under such section;
       ``(12) a description of the strategies and services that 
     will be used in the local area to assist at-risk youth and 
     out-of-school youth in acquiring the education and skills, 
     credentials (including recognized postsecondary credentials, 
     such as industry-recognized credentials), and employment 
     experience to succeed in the labor market, including--
       ``(A) training and internships in in-demand industries or 
     occupations important to the local economy;
       ``(B) dropout recovery activities that are designed to lead 
     to the attainment of a regular secondary school diploma or 
     its recognized equivalent, or other State-recognized 
     equivalent (including recognized alternative standards for 
     individuals with disabilities); and
       ``(C) activities combining remediation of academic skills, 
     work readiness training, and work experience, and including 
     linkages to postsecondary education and training and career-
     ladder employment;
       ``(13) a description of--
       ``(A) how the local area will furnish employment, training, 
     including training in advanced manufacturing, supportive, and 
     placement services to veterans, including disabled and 
     homeless veterans;
       ``(B) the strategies and services that will be used in the 
     local area to assist in and expedite reintegration of 
     homeless veterans into the labor force; and
       ``(C) the veteran population to be served in the local 
     area;
       ``(14) a description of--
       ``(A) the duties assigned to the veteran employment 
     specialist consistent with the requirements of section 
     134(f);
       ``(B) the manner in which the veteran employment specialist 
     is integrated into the one-stop career system described in 
     section 121;
       ``(C) the date on which the veteran employment specialist 
     was assigned; and
       ``(D) whether the veteran employment specialist has 
     satisfactorily completed related training by the National 
     Veterans' Employment and Training Services Institute; and
       ``(15) such other information as the Governor may 
     require.''; and
       (3) in subsection (c)--
       (A) in paragraph (1), by striking ``such means'' and 
     inserting ``electronic means and such means''; and
       (B) in paragraph (2), by striking ``, including 
     representatives of business and representatives of labor 
     organizations,''.

     SEC. 417. ESTABLISHMENT OF ONE-STOP DELIVERY SYSTEM.

       Section 121 (29 U.S.C. 2841) is amended--
       (1) in subsection (b)--
       (A) by striking subparagraph (A) of paragraph (1) and 
     inserting the following:
       ``(A) Roles and responsibilities of one-stop partners.--
     Each entity that carries out a program or activities 
     described in subparagraph (B) shall--
       ``(i) provide access through a one-stop delivery system to 
     the program or activities carried out by the entity, 
     including making the work ready services described in section 
     134(c)(2) that are applicable to the program or activities of 
     the entity available at one-stop centers (in addition to any 
     other appropriate locations);
       ``(ii) use a portion of the funds available to the program 
     or activities of the entity to 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)--

[[Page 5492]]

       (I) by striking clauses (i), (ii), and (v);
       (II) in clause (iv), by striking ``and'' at the end;
       (III) by redesignating clauses (iii) and (iv) as clauses 
     (i) and (ii), respectively; and
       (IV) by adding at the end the following:

       ``(iii) employment and training programs administered by 
     the Commissioner of the Social Security Administration;
       ``(iv) employment and training programs carried out by the 
     Administrator of the Small Business Administration;
       ``(v) employment, training, and literacy services carried 
     out by public libraries; and
       ``(vi) other appropriate Federal, State, or local programs, 
     including programs in the private sector.'';
       (2) in subsection (c)(2), by amending subparagraph (A) to 
     read as follows:
       ``(A) provisions describing--
       ``(i) the services to be provided through the one-stop 
     delivery system consistent with the requirements of this 
     section, including the manner in which the services will be 
     coordinated through such system;
       ``(ii) how the costs of such services and the operating 
     costs of such system will be funded, through cash and in-kind 
     contributions, to provide a stable and equitable funding 
     stream for ongoing one-stop system operations, including the 
     funding of the costs of infrastructure of one-stop centers in 
     accordance with subsection (h);
       ``(iii) methods of referral of individuals between the one-
     stop operator and the one-stop partners for appropriate 
     services and activities, including referrals for training for 
     nontraditional employment; and
       ``(iv) the duration of the memorandum of understanding and 
     the procedures for amending the memorandum during the term of 
     the memorandum, and assurances that such memorandum shall be 
     reviewed not less than once every 3-year period to ensure 
     appropriate funding and delivery of services under the 
     memorandum; and'';
       (3) in subsection (d)--
       (A) in the heading for paragraph (1), by striking 
     ``Designation and certification'' and inserting ``Local 
     designation and certification'';
       (B) in paragraph (2)--
       (i) by striking ``section 134(c)'' and inserting 
     ``subsection (e)'';
       (ii) by amending subparagraph (A) to read as follows:
       ``(A) shall be designated or certified as a one-stop 
     operator through a competitive process; and''; and
       (iii) in subparagraph (B), by striking clause (ii) and 
     redesignating clauses (iii) through (vi) as clauses (ii) 
     through (v), respectively; and
       (C) in paragraph (3), by striking ``vocational'' and 
     inserting ``career and technical'';
       (4) by amending subsection (e) to read as follows:
       ``(e) Establishment of One-Stop Delivery System.--
       ``(1) In general.--There shall be established in a State 
     that receives an allotment under section 132(b) a one-stop 
     delivery system, which shall--
       ``(A) provide the work ready services described in section 
     134(c)(2);
       ``(B) provide access to training services as described in 
     paragraph (4) of section 134(c), including serving as the 
     point of access to career enhancement accounts for training 
     services to participants in accordance with paragraph (4)(F) 
     of such section;
       ``(C) provide access to the activities carried out under 
     section 134(d), if any;
       ``(D) provide access to programs and activities carried out 
     by one-stop partners that are described in subsection (b); 
     and
       ``(E) provide access to the data and information described 
     in subparagraphs (A) and (B) of section 15(a)(1) of the 
     Wagner-Peyser Act (29 U.S.C. 49l-2(a)(1)).
       ``(2) One-stop delivery.--At a minimum, the one-stop 
     delivery system--
       ``(A) shall make each of the programs, services, and 
     activities described in paragraph (1) accessible at not less 
     than one physical center in each local area of the State; and
       ``(B) may also make programs, services, and activities 
     described in paragraph (1) available--
       ``(i) through a network of affiliated sites that can 
     provide one or more of the programs, services, and activities 
     to individuals; and
       ``(ii) through a network of eligible one-stop partners--

       ``(I) in which each partner provides one or more of the 
     programs, services, and activities to such individuals and is 
     accessible at an affiliated site that consists of a physical 
     location or an electronically- or technologically-linked 
     access point; and
       ``(II) that assures individuals that information on the 
     availability of the work ready services will be available 
     regardless of where the individuals initially enter the 
     statewide workforce investment system, including information 
     made available through an access point described in subclause 
     (I).

       ``(3) Specialized centers.--The centers and sites described 
     in paragraph (2) may have a specialization in addressing 
     special needs.''; and
       (5) by adding at the end the following:
       ``(g) Certification of One-Stop Centers.--
       ``(1) In general.--
       ``(A) In general.--The State board shall establish 
     objective procedures and criteria for certifying, at least 
     once every 3 years, one-stop centers for the purpose of 
     awarding the one-stop infrastructure funding described in 
     subsection (h).
       ``(B) Criteria.--The criteria for certification of a one-
     stop center under this subsection shall include--
       ``(i) meeting the expected levels of performance for each 
     of the corresponding core indicators of performance as 
     outlined in the State plan under section 112;
       ``(ii) meeting minimum standards relating to the scope and 
     degree of service integration achieved by the center, 
     involving the programs provided by the one-stop partners; and
       ``(iii) meeting minimum standards relating to how the 
     center ensures that eligible providers meet the employment 
     needs of local employers and participants.
       ``(C) Effect of certification.--One-stop centers certified 
     under this subsection shall be eligible to receive the 
     infrastructure funding authorized under subsection (h).
       ``(2) Local boards.--Consistent with the criteria developed 
     by the State, the local board may develop, for certification 
     referred to in paragraph (1)(A), additional criteria or 
     higher standards on the criteria referred to in paragraph 
     (1)(B) to respond to local labor market and demographic 
     conditions and trends.
       ``(h) One-Stop Infrastructure Funding.--
       ``(1) Partner contributions.--
       ``(A) Provision of funds.--Notwithstanding any other 
     provision of law, as determined under subparagraph (B), a 
     portion of the Federal funds provided to the State and areas 
     within the State under the Federal laws authorizing the one-
     stop partner programs described in subsection (b)(1)(B) and 
     participating additional partner programs described in 
     subsection (b)(2)(B), for a fiscal year shall be provided to 
     the Governor by such partners to carry out this subsection.
       ``(B) Determination of governor.--
       ``(i) In general.--Subject to subparagraph (C), the 
     Governor, in consultation with the State board, shall 
     determine the portion of funds to be provided under 
     subparagraph (A) by each one-stop partner and in making such 
     determination shall consider the proportionate use of the 
     one-stop centers in the State by each such partner, the costs 
     of administration for purposes not related to one-stop 
     centers for each such partner, and other relevant factors 
     described in paragraph (3).
       ``(ii) Special rule.--In those States where the State 
     constitution places policy-making authority that is 
     independent of the authority of the Governor in an entity or 
     official with respect to the funds provided for adult 
     education and family literacy education activities authorized 
     under title II and for postsecondary career and technical 
     education activities authorized under the Carl D. Perkins 
     Career and Technical Education Act of 2006 (20 U.S.C. 2301 et 
     seq.), the determination described in clause (i) with respect 
     to the corresponding 2 programs shall be made by the Governor 
     with the appropriate entity or official with such independent 
     policy-making authority.
       ``(iii) Appeal by one-stop partners.--The Governor shall 
     establish a procedure for the one-stop partner administering 
     a program described in subsection (b) and subparagraph (A) to 
     appeal a determination regarding the 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

[[Page 5493]]

     the Governor to allocate the funds provided under paragraph 
     (1) to local areas. The formula shall include such factors as 
     the State board determines are appropriate, which may include 
     factors such as the number of centers in a local area that 
     have been certified, the population served by such centers, 
     and the performance of such centers.
       ``(4) Costs of infrastructure.--For purposes of this 
     subsection, the term `costs of infrastructure' means the 
     nonpersonnel costs that are necessary for the general 
     operation of a one-stop center, including the rental costs of 
     the facilities involved, and the costs of utilities and 
     maintenance, and equipment (including assistive technology 
     for individuals with disabilities).
       ``(i) Other Funds.--
       ``(1) In general.--In addition to the funds provided under 
     subsection (h), a portion of funds made available under 
     Federal law authorizing the one-stop partner programs 
     described in subsection (b)(1)(B) and participating 
     additional partner programs described in subsection 
     (b)(2)(B), or the noncash resources available under such 2 
     types of programs, shall be used to pay the costs relating to 
     the operation of the one-stop delivery system that are not 
     paid for from the funds provided under subsection (h), to the 
     extent not inconsistent with the Federal law involved. Such 
     portion shall be used to pay for costs including--
       ``(A) costs of infrastructure (as defined in subsection 
     (h)) that are in excess of the funds provided under 
     subsection (h);
       ``(B) common costs that are in addition to the costs of 
     infrastructure (as so defined); and
       ``(C) the costs of the provision of work ready services 
     applicable to each program.
       ``(2) Determination and standards.--The method for 
     determining the appropriate portion of funds and noncash 
     resources to be provided by each program under paragraph (1) 
     shall be determined as part of the memorandum of 
     understanding under subsection (c). The State board shall 
     provide standards to facilitate the determination of 
     appropriate allocation of the funds and noncash resources to 
     local areas.''.

     SEC. 418. IDENTIFICATION OF ELIGIBLE PROVIDERS OF TRAINING 
                   SERVICES.

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

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

       ``(a) Eligibility.--
       ``(1) In general.--The Governor, after consultation with 
     the State board, shall establish criteria and procedures 
     regarding the eligibility of providers of training services 
     described in section 134(c)(4) to receive funds provided 
     under section 133(b) for the provision of such training 
     services and be included on the list of eligible providers of 
     training services described in subsection (d).
       ``(2) Providers.--Subject to the provisions of this 
     section, to be eligible to receive the funds and be included 
     on the list, the provider shall be--
       ``(A) a postsecondary educational institution that--
       ``(i) is eligible to receive Federal funds under title IV 
     of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.); 
     and
       ``(ii) provides a program that leads to a recognized 
     postsecondary credential;
       ``(B) an entity that carries out programs under the Act of 
     August 16, 1937 (commonly known as the `National 
     Apprenticeship Act'; 50 Stat. 664, chapter 663; 29 U.S.C. 50 
     et seq.); or
       ``(C) another public or private provider of a program of 
     training services.
       ``(3) Inclusion in list of eligible providers.--A provider 
     described in subparagraph (A) or (C) of paragraph (2) shall 
     comply with the criteria and procedures established under 
     this subsection to be eligible to receive the funds and be 
     included on the list. A provider described in paragraph 
     (2)(B) shall be eligible to receive the funds and be included 
     on the list with respect to programs described in paragraph 
     (2)(B) for so long as the provider remains certified by the 
     Secretary of Labor to carry out the programs.
       ``(b) Criteria.--
       ``(1) In general.--The criteria established by the Governor 
     pursuant to subsection (a) shall take into account--
       ``(A) the performance of providers of training services 
     with respect to the performance measures described in section 
     136, measures for other matters for which information is 
     required under paragraph (2), and other appropriate measures 
     of performance outcomes for those participants receiving 
     training services under this subtitle;
       ``(B) whether the training programs of such providers 
     relate to in-demand industries or occupations important to 
     the local economy;
       ``(C) the need to ensure access to training services 
     throughout the State, including in rural areas;
       ``(D) the ability of the providers to offer programs that 
     lead to a recognized postsecondary credential, and the 
     quality of such programs;
       ``(E) the performance of the providers as reflected in the 
     information such providers are required to report to State 
     agencies with respect to other Federal and State programs 
     (other than the program carried out under this subtitle), 
     including one-stop partner programs; and
       ``(F) such other factors as the Governor determines are 
     appropriate.
       ``(2) Information.--The criteria established by the 
     Governor shall require that a provider of training services 
     submit appropriate, accurate, and timely information to the 
     State for purposes of carrying out subsection (d), with 
     respect to participants receiving training services under 
     this subtitle in the applicable program, including--
       ``(A) information on recognized postsecondary credentials 
     received by such participants;
       ``(B) information on costs of attendance for such 
     participants;
       ``(C) information on the program completion rate for such 
     participants; and
       ``(D) information on the performance of the provider with 
     respect to the performance measures described in section 136 
     for such participants.
       ``(3) Renewal.--The criteria established by the Governor 
     shall also provide for a review on the criteria every 3 years 
     and renewal of eligibility under this section for providers 
     of training services.
       ``(4) Local criteria.--A local board in the State may 
     establish criteria in addition to the criteria established by 
     the Governor, or may require higher levels of performance 
     than required on the criteria established by the Governor, 
     for purposes of determining the eligibility of providers of 
     training services under this section in the local area 
     involved.
       ``(5) Limitation.--In carrying out the requirements of this 
     subsection, no entity may disclose personally identifiable 
     information regarding a student, including a Social Security 
     number, student identification number, or other identifier, 
     without the prior written consent of the parent or student in 
     compliance with section 444 of the General Education 
     Provisions Act (20 U.S.C. 1232g).
       ``(c) Procedures.--The procedures established under 
     subsection (a) shall--
       ``(1) identify--
       ``(A) the application process for a provider of training 
     services to become eligible under this section; and
       ``(B) the respective roles of the State and local areas in 
     receiving and reviewing applications and in making 
     determinations of eligibility based on the criteria 
     established under this section; and
       ``(2) establish a process, for a provider of training 
     services to appeal a denial or termination of eligibility 
     under this section, that includes an opportunity for a 
     hearing and prescribes appropriate time limits to ensure 
     prompt resolution of the appeal.
       ``(d) Information To Assist Participants in Choosing 
     Providers.--In order to facilitate and assist participants 
     under chapter 5 in choosing providers of training services, 
     the Governor shall ensure that an appropriate list of 
     providers determined eligible under this section in the 
     State, including information provided under subsection (b)(2) 
     with respect to such providers, is provided to the local 
     boards in the State and is made available to such 
     participants and to members of the public through the one-
     stop delivery system in the State.
       ``(e) Enforcement.--
       ``(1) In general.--The procedures established under this 
     section shall provide the following:
       ``(A) Intentionally supplying inaccurate information.--Upon 
     a determination, by an individual or entity specified in the 
     procedures, that a provider of training services, or 
     individual providing information on behalf of the provider, 
     intentionally supplied inaccurate information under this 
     section, the eligibility of such provider under this section 
     shall be terminated for a period of time that is not less 
     than 2 years.
       ``(B) Substantial violations.--Upon a determination, by an 
     individual or entity specified in the procedures, that a 
     provider of training services substantially violated any 
     requirement under this title, the eligibility 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

[[Page 5494]]

     required under this section, the Governor shall provide an 
     opportunity for interested members of the public to submit 
     comments regarding such criteria, procedures, and list.
       ``(i) On-the-Job Training or Customized Training 
     Exception.--
       ``(1) In general.--Providers of on-the-job training or 
     customized training shall not be subject to the requirements 
     of subsections (a) through (d).
       ``(2) Collection and dissemination of information.--A one-
     stop operator in a local area shall collect such performance 
     information from on-the-job training and customized training 
     providers as the Governor may require, determine whether the 
     providers meet such performance criteria as the Governor may 
     require, and disseminate information identifying providers 
     that meet the criteria as eligible providers, and the 
     performance information, through the one-stop delivery 
     system. Providers determined to meet the criteria shall be 
     considered to be identified as eligible under this section, 
     to be providers of the training services involved.''.

     SEC. 419. GENERAL AUTHORIZATION.

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

     SEC. 420. STATE ALLOTMENTS.

       Section 132 (29 U.S.C. 2862) is amended--
       (1) by amending subsection (a) to read as follows:
       ``(a) In General.--The Secretary shall--
       ``(1) reserve \1/2\ of 1 percent of the total amount 
     appropriated under section 137 for a fiscal year, of which--
       ``(A) 50 percent shall be used to provide technical 
     assistance under section 170; and
       ``(B) 50 percent shall be used for evaluations under 
     section 172;
       ``(2) reserve 1 percent of the total amount appropriated 
     under section 137 for a fiscal year to make grants to, and 
     enter into contracts or cooperative agreements with Indian 
     tribes, tribal organizations, Alaska Native entities, Indian-
     controlled organizations serving Indians, or Native Hawaiian 
     organizations to carry out employment and training 
     activities;
       ``(3) reserve not more than 25 percent of the total amount 
     appropriated under section 137 for a fiscal year to carry out 
     the Jobs Corps program under subtitle C;
       ``(4) reserve not more than 3.5 percent of the total amount 
     appropriated under section 137 for a fiscal year to--
       ``(A) make grants to State boards or local boards to 
     provide employment and training assistance to workers 
     affected by major economic dislocations, such as plant 
     closures, mass layoffs, or closures and realignments of 
     military installations; and
       ``(B) provide assistance to Governors of States with an 
     area that has suffered an emergency or a major disaster (as 
     such terms are defined in paragraphs (1) and (2), 
     respectively, of section 102 of the Robert T. Stafford 
     Disaster Relief and Emergency Assistance Act (42 U.S.C. 
     5122)) to provide disaster relief employment in the area; and
       ``(5) from the remaining amount appropriated under section 
     137 for a fiscal year (after reserving funds under paragraphs 
     (1) through (4)), make allotments in accordance with 
     subsection (b) of this section.''; and
       (2) by amending subsection (b) to read as follows:
       ``(b) Workforce Investment Fund.--
       ``(1) Reservation for outlying areas.--
       ``(A) In general.--From the amount made available under 
     subsection (a)(5) for a fiscal year, the Secretary shall 
     reserve not more than \1/4\ of 1 percent to provide 
     assistance to the outlying areas.
       ``(B) Restriction.--The Republic of Palau shall cease to be 
     eligible to receive funding under this paragraph upon 
     entering into an agreement for extension of United States 
     educational assistance under the Compact of Free Association 
     (approved by the Compact of Free Association Amendments Act 
     of 2003 (Public Law 108-188) after the date of enactment of 
     the SKILLS Act.
       ``(2) States.--
       ``(A) In general.--After determining the amount to be 
     reserved under paragraph (1), the Secretary shall allot the 
     remainder of the amount referred to in subsection (a)(5) for 
     a fiscal year to the States pursuant to subparagraph (B) for 
     employment and training activities and statewide workforce 
     investment activities.
       ``(B) Formula.--Subject to subparagraphs (C) and (D), of 
     the remainder--
       ``(i) 25 percent shall be allotted on the basis of the 
     relative number of unemployed individuals in areas of 
     substantial unemployment in each State, compared to the total 
     number of unemployed individuals in areas of substantial 
     unemployment in all States;
       ``(ii) 25 percent shall be allotted on the basis of the 
     relative number of individuals in the civilian labor force in 
     each State, compared to the total number of such individuals 
     in all States;
       ``(iii) 25 percent shall be allotted on the basis of the 
     relative number of individuals in each State who have been 
     unemployed for 15 weeks or more, compared to the total number 
     of individuals in all States who have been unemployed for 15 
     weeks or more; and
       ``(iv) 25 percent shall be allotted on the basis of the 
     relative number of disadvantaged youth in each State, 
     compared to the total number of disadvantaged youth in all 
     States.
       ``(C) Minimum and maximum percentages.--
       ``(i) Minimum percentage.--The Secretary shall ensure that 
     no State shall receive an allotment under this paragraph 
     for--

       ``(I) each of fiscal years 2015 through 2017, that is less 
     than 100 percent of the allotment percentage of the State for 
     fiscal year 2013; and
       ``(II) fiscal year 2018 and each succeeding fiscal year, 
     that is less than 90 percent of the allotment percentage of 
     the State for the fiscal year preceding the fiscal year 
     involved.

       ``(ii) Maximum percentage.--Subject to clause (i), the 
     Secretary shall ensure that no State shall receive an 
     allotment under this paragraph for--

       ``(I) each of fiscal years 2015 through 2017, that is more 
     than 130 percent of the allotment percentage of the State for 
     fiscal year 2013; and
       ``(II) fiscal year 2018 and each succeeding fiscal year, 
     that is more than 130 percent of the allotment percentage of 
     the State for the fiscal year preceding the fiscal year 
     involved.

       ``(D) Small state minimum allotment.--Subject to 
     subparagraph (C), the Secretary shall ensure that no State 
     shall receive an allotment under this paragraph for a fiscal 
     year that is less than \1/5\ of 1 percent of the remainder 
     described in subparagraph (A) for the fiscal year.
       ``(E) Definitions.--For the purpose of the formula 
     specified in this paragraph:
       ``(i) Allotment percentage.--The term `allotment 
     percentage'--

       ``(I) used with respect to fiscal year 2013, means the 
     percentage of the amounts allotted to States under title I of 
     this Act, title V of the Older Americans Act of 1965 (42 
     U.S.C. 3056 et seq.), the Women in Apprenticeship and 
     Nontraditional Occupations Act (29 U.S.C. 2501 et seq.), 
     sections 4103A and 4104 of title 38, United States Code, and 
     sections 1 through 14 of the Wagner-Peyser Act (29 U.S.C. 49 
     et seq.), as such provisions were in effect for fiscal year 
     2013, that is received under such provisions by the State 
     involved for fiscal year 2013; and
       ``(II) used with respect to fiscal year 2017 or a 
     succeeding fiscal year, means the percentage of the amounts 
     allotted to States under this paragraph for the fiscal year, 
     that is received under this paragraph by the State involved 
     for the fiscal year.

       ``(ii) Area of substantial unemployment.--The term `area of 
     substantial unemployment' means any area that is of 
     sufficient size and scope to sustain a program of workforce 
     investment activities carried out under this subtitle and 
     that has an average rate of unemployment of at least 7 
     percent for the most recent 12 months, as determined by the 
     Secretary. For purposes of this clause, determinations of 
     areas of substantial unemployment shall be made once each 
     fiscal year.
       ``(iii) Disadvantaged youth.--The term `disadvantaged 
     youth' means an individual who is not less than age 16 and 
     not more than age 24 who receives an income, or is a member 
     of a family that receives a total family income, that in 
     relation to family size, does not exceed the higher of--

       ``(I) the poverty line; or
       ``(II) 70 percent of the lower living standard income 
     level.

       ``(iv) Individual.--The term `individual' means an 
     individual who is age 16 or older.''.

     SEC. 421. WITHIN STATE ALLOCATIONS.

       Section 133 (29 U.S.C. 2863) is amended--
       (1) by amending subsection (a) to read as follows:
       ``(a) Reservations for Statewide Workforce Investment 
     Activities.--
       ``(1) Statewide employment and training activities.--The 
     Governor of a State shall reserve not more than 15 percent of 
     the total amount allotted to the State under section 
     132(b)(2) for a fiscal year to carry out the statewide 
     activities described in section 134(a).
       ``(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--

[[Page 5495]]

       ``(A) allocate the funds that are allotted to the State 
     under section 132(b)(2) and not reserved under subsection 
     (a), in accordance with paragraph (2)(A); and
       ``(B) award the funds that are reserved by the State under 
     subsection (a)(3) through competitive grants to eligible 
     entities, in accordance with section 134(a)(1)(C).
       ``(2) Formula allocations for the workforce investment 
     fund.--
       ``(A) Allocation.--In allocating the funds described in 
     paragraph (1)(A) to local areas, a State shall allocate--
       ``(i) 25 percent on the basis described in section 
     132(b)(2)(B)(i);
       ``(ii) 25 percent on the basis described in section 
     132(b)(2)(B)(ii);
       ``(iii) 25 percent on the basis described in section 
     132(b)(2)(B)(iii); and
       ``(iv) 25 percent on the basis described in section 
     132(b)(2)(B)(iv),
     except that a reference in a section specified in any of 
     clauses (i) through (iv) to `each State' shall be considered 
     to refer to each local area, and to `all States' shall be 
     considered to refer to all local areas.
       ``(B) Minimum and maximum percentages.--
       ``(i) Minimum percentage.--The State shall ensure that no 
     local area shall receive an allocation under this paragraph 
     for--

       ``(I) each of fiscal years 2015 through 2017, that is less 
     than 100 percent of the allocation percentage of the local 
     area for fiscal year 2013; and
       ``(II) fiscal year 2018 and each succeeding fiscal year, 
     that is less than 90 percent of the allocation percentage of 
     the local area for the fiscal year preceding the fiscal year 
     involved.

       ``(ii) Maximum percentage.--Subject to clause (i), the 
     State shall ensure that no local area shall receive an 
     allocation for a fiscal year under this paragraph for--

       ``(I) each of fiscal years 2015 through 2017, that is more 
     than 130 percent of the allocation percentage of the local 
     area for fiscal year 2013; and
       ``(II) fiscal year 2018 and each succeeding fiscal year, 
     that is more than 130 percentage of the allocation percentage 
     of the local area for the fiscal year preceding the fiscal 
     year involved.

       ``(C) Definitions.--For the purpose of the formula 
     specified in this paragraph, the term `allocation 
     percentage'--
       ``(i) used with respect to fiscal year 2013, means the 
     percentage of the amounts allocated to local areas under 
     title I of this Act, title V of the Older Americans Act of 
     1965 (42 U.S.C. 3056 et seq.), the Women in Apprenticeship 
     and Nontraditional Occupations Act (29 U.S.C. 2501 et seq.), 
     sections 4103A and 4104 of title 38, United States Code, and 
     sections 1 through 14 of the Wagner-Peyser Act (29 U.S.C. 49 
     et seq.), as such provisions were in effect for fiscal year 
     2013, that is received under such provisions by the local 
     area involved for fiscal year 2013; and
       ``(ii) used with respect to fiscal year 2017 or a 
     succeeding fiscal year, means the percentage of the amounts 
     allocated to local areas under this paragraph for the fiscal 
     year, that is received under this paragraph by the local area 
     involved for the fiscal year.'';
       (3) in subsection (c)--
       (A) by amending paragraph (1) to read as follows:
       ``(1) In general.--The Governor may, in accordance with 
     this subsection, reallocate to eligible local areas within 
     the State amounts that are allocated under subsection (b) for 
     employment and training activities and that are available for 
     reallocation.'';
       (B) in paragraph (2), by striking ``paragraph (2)(A) or (3) 
     of subsection (b) for such activities'' and inserting 
     ``subsection (b) for such activities'';
       (C) by amending paragraph (3) to read as follows:
       ``(3) Reallocations.--In making reallocations to eligible 
     local areas of amounts available pursuant to paragraph (2) 
     for a program year, the Governor shall allocate to each 
     eligible local area within the State an amount based on the 
     relative amount allocated to such local area under subsection 
     (b)(2) for such activities for such prior program year, as 
     compared to the total amount allocated to all eligible local 
     areas in the State under subsection (b)(2) for such 
     activities for such prior program year.''; and
       (D) in paragraph (4), by striking ``paragraph (2)(A) or (3) 
     of''; and
       (4) by adding at the end the following new subsection:
       ``(d) Local Administrative Cost Limit.--Of the amount 
     allocated to a local area under this section for a fiscal 
     year, not more than 10 percent of the amount may be used by 
     the local board involved for the administrative costs of 
     carrying out local workforce investment activities in the 
     local area under this chapter.''.

     SEC. 422. USE OF FUNDS FOR EMPLOYMENT AND TRAINING 
                   ACTIVITIES.

       Section 134 (29 U.S.C. 2864) is amended--
       (1) by amending subsection (a) to read as follows:
       ``(a) Statewide Employment and Training Activities.--
       ``(1) In general.--
       ``(A) Distribution of statewide activities.--Funds reserved 
     by a Governor for a State as described in section 133(a)(1) 
     and not reserved under paragraph (2) or (3) of section 
     133(a)--
       ``(i) shall be used to carry out the statewide employment 
     and training activities described in paragraph (2); and
       ``(ii) may be used to carry out any of the statewide 
     employment and training activities described in paragraph 
     (3).
       ``(B) Statewide rapid response activities and additional 
     assistance.--Funds reserved by a Governor for a State as 
     described in section 133(a)(2) shall be used to provide the 
     statewide rapid response activities and additional assistance 
     described in paragraph (4).
       ``(C) Statewide grants for individuals with barriers to 
     employment.--Funds reserved by a Governor for a State as 
     described in section 133(a)(3) shall be used to award 
     statewide grants for individuals with barriers to employment 
     on a competitive basis, and carry out other activities, as 
     described in paragraph (5).
       ``(2) Required statewide employment and training 
     activities.--A State shall use funds referred to in paragraph 
     (1)(A) to carry out statewide employment and training 
     activities, which shall include--
       ``(A) disseminating the State list of eligible providers of 
     training services described in section 122(d), information 
     identifying eligible providers of on-the-job training and 
     customized training described in section 122(i), and 
     performance information and program cost information 
     described in section 122(b)(2);
       ``(B) supporting the provision of work ready services 
     described in subsection (c)(2) in the one-stop delivery 
     system;
       ``(C) implementing strategies and services that will be 
     used in the State to assist at-risk youth and out-of-school 
     youth in acquiring the education and skills, recognized 
     postsecondary credentials, and employment experience to 
     succeed in the labor market;
       ``(D) conducting evaluations under section 136(e) of 
     activities authorized under this chapter in coordination with 
     evaluations carried out by the Secretary under section 172;
       ``(E) providing technical assistance to local areas that 
     fail to meet local performance measures;
       ``(F) operating a fiscal and management accountability 
     system under section 136(f); and
       ``(G) carrying out monitoring and oversight of activities 
     carried out under this chapter.
       ``(3) Allowable statewide employment and training 
     activities.--A State may use funds referred to in paragraph 
     (1)(A) to carry out statewide employment and training 
     activities which may include--
       ``(A) implementing innovative programs and strategies 
     designed to meet the needs of all employers in the State, 
     including small employers, which may include incumbent worker 
     training programs, sectoral and industry cluster strategies 
     and partnership initiatives, career ladder programs, micro-
     enterprise and entrepreneurial training and support programs, 
     utilization of effective business intermediaries, activities 
     to improve linkages between the one-stop delivery system in 
     the State and all employers (including small employers) in 
     the State, and other business services and strategies that 
     better engage employers in workforce investment activities 
     and make the workforce investment system more relevant to the 
     needs of State and local businesses, consistent with the 
     objectives of this title;
       ``(B) providing incentive grants to local areas--
       ``(i) for regional cooperation among local boards 
     (including local boards in a designated region as described 
     in section 116(c));
       ``(ii) for local coordination of activities carried out 
     under this Act; and
       ``(iii) for exemplary performance by local areas on the 
     local performance measures;
       ``(C) developing strategies for effectively integrating 
     programs and services among one-stop partners;
       ``(D) carrying out activities to facilitate remote access 
     to services provided through a one-stop delivery system, 
     including facilitating access through the use of technology;
       ``(E) incorporating pay-for-performance contract strategies 
     as an element in funding activities under this section and 
     providing technical support to local areas and eligible 
     providers in order to carry out such a strategy, which may 
     involve providing assistance with data collection and data 
     entry requirements;
       ``(F) carrying out the State option under subsection 
     (f)(8); and
       ``(G) carrying out other activities authorized under this 
     section that the State determines to be necessary to assist 
     local areas in 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

[[Page 5496]]

     that precipitate substantial increases in the number of 
     unemployed individuals, carried out in local areas by the 
     State or by an entity designated by the State, working in 
     conjunction with the local boards and the chief elected 
     officials in the local areas.
       ``(5) Statewide grants for individuals with barriers to 
     employment.--
       ``(A) In general.--Of the funds reserved as described in 
     section 133(a)(3), the Governor of a State--
       ``(i) may reserve up to 5 percent to provide technical 
     assistance for, and conduct evaluations as described in 
     section 136(e) of, the programs carried out under this 
     paragraph; and
       ``(ii) using the remainder, shall award grants on a 
     competitive basis to eligible entities (that meet specific 
     performance outcomes and criteria established by the 
     Governor) described in subparagraph (B) to carry out 
     employment and training programs authorized under this 
     paragraph for individuals with barriers to employment.
       ``(B) Eligible entity defined.--For purposes of this 
     paragraph, the term `eligible entity' means an entity that--
       ``(i) is a--

       ``(I) local board or a consortium of local boards;
       ``(II) nonprofit entity, for-profit entity, or a consortium 
     of nonprofit or for-profit entities; or
       ``(III) consortium of the entities described in subclauses 
     (I) and (II);

       ``(ii) has a demonstrated record of placing individuals 
     into unsubsidized employment and serving hard-to-serve 
     individuals; and
       ``(iii) agrees to be reimbursed primarily on the basis of 
     meeting specified performance outcomes and criteria 
     established by the Governor.
       ``(C) Grant period.--
       ``(i) In general.--A grant under this paragraph shall be 
     awarded for a period of 1 year.
       ``(ii) Grant renewal.--A Governor of a State may renew, for 
     up to 4 additional 1-year periods, a grant awarded under this 
     paragraph.
       ``(D) Eligible participants.--To be eligible to participate 
     in activities under this paragraph, an individual shall be a 
     low-income individual age 16 or older.
       ``(E) Use of funds.--An eligible entity receiving a grant 
     under this paragraph shall use the grant funds for programs 
     of activities that are designed to assist eligible 
     participants in obtaining employment and acquiring the 
     education and skills necessary to succeed in the labor 
     market. To be eligible to receive a grant under this 
     paragraph for an employment and training program, an eligible 
     entity shall submit an application to a State at such time, 
     in such manner, and containing such information as the State 
     may require, including--
       ``(i) a description of how the strategies and activities of 
     the program will be aligned with the State plan submitted 
     under section 112 and the local plan submitted under section 
     118, with respect to the area of the State that will be the 
     focus of the program under this paragraph;
       ``(ii) a description of the educational and skills training 
     programs and activities the eligible entity will provide to 
     eligible participants under this paragraph;
       ``(iii) how the eligible entity will collaborate with State 
     and local workforce investment systems established under this 
     title in the provision of such programs and activities;
       ``(iv) a description of the programs of demonstrated 
     effectiveness on which the provision of such educational and 
     skills training programs and activities are based, and a 
     description of how such programs and activities will improve 
     education and skills training for eligible participants;
       ``(v) a description of the populations to be served and the 
     skill needs of those populations, and the manner in which 
     eligible participants will be recruited and selected as 
     participants;
       ``(vi) a description of the private, public, local, and 
     State resources that will be leveraged, with the grant funds 
     provided, for the program under this paragraph, and how the 
     entity will ensure the sustainability of such program after 
     grant funds are no longer available;
       ``(vii) a description of the extent of the involvement of 
     employers in such program;
       ``(viii) a description of the levels of performance the 
     eligible entity expects to achieve with respect to the 
     indicators of performance for all individuals specified in 
     section 136(b)(2);
       ``(ix) a detailed budget and a description of the system of 
     fiscal controls, and auditing and accountability procedures, 
     that will be used to ensure fiscal soundness for the program 
     provided under this paragraph; and
       ``(x) any other criteria the Governor may require.'';
       (2) by amending subsection (b) to read as follows:
       ``(b) Local Employment and Training Activities.--Funds 
     allocated to a local area under section 133(b)--
       ``(1) shall be used to carry out employment and training 
     activities described in subsection (c); and
       ``(2) may be used to carry out employment and training 
     activities described in subsection (d).'';
       (3) by striking subsection (c);
       (4) by redesignating subsections (d) and (e), as 
     subsections (c) and (d), respectively;
       (5) in subsection (c) (as so redesignated)--
       (A) by amending paragraph (1) to read as follows:
       ``(1) In general.--Funds allocated to a local area under 
     section 133(b) shall be used--
       ``(A) to establish a one-stop delivery system as described 
     in section 121(e);
       ``(B) to provide the work ready services described in 
     paragraph (2) through the one-stop delivery system in 
     accordance with such paragraph; and
       ``(C) to provide training services described in paragraph 
     (4) in accordance with such paragraph.'';
       (B) in paragraph (2)--
       (i) in the heading, by striking ``Core services'' and 
     inserting ``Work ready services'';
       (ii) in the matter preceding subparagraph (A)--

       (I) by striking ``(1)(A)'' and inserting ``(1)'';
       (II) by striking ``core services'' and inserting ``work 
     ready services''; and
       (III) by striking ``who are adults or dislocated workers'';

       (iii) by redesignating subparagraph (K) as subparagraph 
     (V);
       (iv) by redesignating subparagraphs (B) through (J) as 
     subparagraphs (C) through (K), respectively;
       (v) by inserting after subparagraph (A) the following:
       ``(B) assistance in obtaining eligibility determinations 
     under the other one-stop partner programs through activities, 
     where appropriate and consistent with the authorizing statute 
     of the one-stop partner program involved, such as assisting 
     in--
       ``(i) the submission of applications;
       ``(ii) the provision of information on the results of such 
     applications; and
       ``(iii) the provision of intake services and 
     information;'';
       (vi) by amending subparagraph (E), as so redesignated, to 
     read as follows:
       ``(E) labor exchange services, including--
       ``(i) job search and placement assistance, and where 
     appropriate, career counseling;
       ``(ii) appropriate recruitment services for employers, 
     including small employers, in the local area, which may 
     include services described in this subsection, including 
     provision of information and referral to specialized business 
     services not traditionally offered through the one-stop 
     delivery system; and
       ``(iii) reemployment services provided to unemployment 
     claimants, including claimants identified as in need of such 
     services under the worker profiling system established under 
     section 303(j) of the Social Security Act (42 U.S.C. 
     503(j));'';
       (vii) in subparagraph (F), as so redesignated, by striking 
     ``employment statistics'' and inserting ``workforce and labor 
     market'';
       (viii) in subparagraph (G), as so redesignated, by striking 
     ``and eligible providers of youth activities described in 
     section 123,'';
       (ix) in subparagraph (H), as so redesignated, by inserting 
     ``under section 136'' after ``local performance measures'';
       (x) in subparagraph (J), as so redesignated, by inserting 
     ``and information regarding the administration of the work 
     test for the unemployment compensation system'' after 
     ``compensation'';
       (xi) by amending subparagraph (K), as so redesignated, to 
     read as follows:
       ``(K) assistance in establishing eligibility for programs 
     of financial aid assistance for education and training 
     programs that are not funded under this Act and are available 
     in the local area;''; and
       (xii) by inserting the following new subparagraphs after 
     subparagraph (K), as so redesignated:
       ``(L) the provision of information from official 
     publications of the Internal Revenue Service regarding 
     Federal tax credits, available to participants in employment 
     and training activities, and relating to education, job 
     training, and employment;
       ``(M) comprehensive and specialized assessments of the 
     skill levels and service needs of workers, which may 
     include--
       ``(i) diagnostic testing and use of other assessment tools; 
     and
       ``(ii) in-depth interviewing and evaluation to identify 
     employment barriers and appropriate employment goals;
       ``(N) development of an individual employment plan, to 
     identify the employment goals, appropriate achievement 
     objectives, and appropriate combination of services for the 
     participant;
       ``(O) group counseling;
       ``(P) individual counseling and career planning;
       ``(Q) case management;
       ``(R) short-term pre-career services, including development 
     of learning skills, communications skills, interviewing 
     skills, punctuality, personal maintenance skills, and 
     professional conduct, to prepare individuals for unsubsidized 
     employment or training;
       ``(S) internships and work experience;
       ``(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. 9201 et seq.);
       ``(U) out-of-area job search assistance and relocation 
     assistance; and'';

[[Page 5497]]

       (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.''; and
       (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).'';
       (ii) in subparagraph (B)(i), by striking ``Except'' and 
     inserting ``Notwithstanding section 479B of the Higher 
     Education Act of 1965 (20 U.S.C. 1087uu) and except'';
       (iii) by amending subparagraph (D) to read as follows:
       ``(D) Training services.--Training services authorized 
     under this paragraph may include--
       ``(i) occupational skills training;
       ``(ii) on-the-job training;
       ``(iii) skill upgrading and retraining;
       ``(iv) entrepreneurial training;
       ``(v) education activities leading to a regular secondary 
     school diploma or its recognized equivalent in combination 
     with, concurrently or subsequently, occupational skills 
     training;
       ``(vi) adult education and family literacy education 
     activities provided in conjunction with other training 
     services authorized under this subparagraph;
       ``(vii) workplace training combined with related 
     instruction;
       ``(viii) occupational skills training that incorporates 
     English language acquisition;
       ``(ix) customized training conducted with a commitment by 
     an employer or group of employers to employ an individual 
     upon successful completion of the training; and
       ``(x) training programs operated by the private sector.'';
       (iv) by striking subparagraph (E) and redesignating 
     subparagraphs (F) and (G) as subparagraphs (E) and (F), 
     respectively;
       (v) in subparagraph (E) (as so redesignated)--

       (I) in clause (ii)--

       (aa) in the matter preceding subclause (I), by striking 
     ``subsection (c)'' and inserting ``section 121'';
       (bb) in subclause (I), by striking ``section 122(e)'' and 
     inserting ``section 122(d)'' and by striking ``section 
     122(h)'' and inserting ``section 122(i)''; and
       (cc) in subclause (II), by striking ``subsections (e) and 
     (h)'' and inserting ``subsections (d) and (i)''; and

       (II) by striking clause (iii) and inserting the following:

       ``(iii) Career enhancement accounts.--An individual who 
     seeks training services and who is eligible pursuant to 
     subparagraph (A), may, in consultation with a case manager, 
     select an eligible provider of training services from the 
     list or identifying information for providers described in 
     clause (ii)(I). Upon such selection, the one-stop operator 
     involved shall, to the extent practicable, refer such 
     individual to the eligible provider of training services, and 
     arrange for payment for such services through a career 
     enhancement account.
       ``(iv) Coordination.--Each local board may, through one-
     stop centers, coordinate career enhancement accounts with 
     other Federal, State, local, or private job training programs 
     or sources to assist the individual in obtaining training 
     services from (notwithstanding any provision of this title) 
     eligible providers for those programs and sources.
       ``(v) Assistance.--Each local board may, through one-stop 
     centers, assist individuals receiving career enhancement 
     accounts in obtaining funds (in addition to the funds 
     provided under this section) from other programs and sources 
     that will assist the individual in obtaining training 
     services.''; and
       (vi) in subparagraph (F) (as so redesignated)--

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

       (aa) by striking ``an individual training account'' and 
     inserting ``a career enhancement account'';
       (bb) by striking ``subparagraph (F)'' and inserting 
     ``subparagraph (E)'';
       (cc) in subclause (II), by striking ``individual training 
     accounts'' and inserting ``career enhancement accounts'';
       (dd) in subclause (II), by striking ``or'' after the 
     semicolon;
       (ee) in subclause (III), by striking the period and 
     inserting ``; or''; and
       (ff) by adding at the end the following:

       ``(IV) the local board determines that it would be most 
     appropriate to award a contract to a postsecondary 
     educational institution that has been identified as a 
     priority eligible provider under section 117(d)(5)(B) in 
     order to facilitate the training of multiple individuals in 
     in-demand industries or occupations important to the State or 
     local economy, that such contract may be used to enable the 
     expansion of programs provided by a priority eligible 
     provider, and that such contract does not limit customer 
     choice.'';
       (IV) in clause (iii), by striking ``adult or dislocated 
     worker'' and inserting ``individual''; and
       (V) in clause (iv)--

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

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

       (6) in subsection (d) (as so redesignated)--
       (A) by amending paragraph (1) to read as follows:
       ``(1) Discretionary one-stop delivery activities.--
       ``(A) In general.--Funds allocated to a local area under 
     section 133(b)(2) may be used to provide, through the one-
     stop delivery system--
       ``(i) customized screening and referral of qualified 
     participants in training services to employers;
       ``(ii) customized employment-related services to employers 
     on a fee-for-service basis;
       ``(iii) customer supports, including transportation and 
     child care, to navigate among multiple services and 
     activities for special participant populations that face 
     multiple barriers to employment, including individuals with 
     disabilities;
       ``(iv) employment and training assistance provided in 
     coordination with child support enforcement activities of the 
     State agency carrying out subtitle D of title IV of the 
     Social Security Act (42 U.S.C. 651 et seq.);
       ``(v) incorporation of pay-for-performance contract 
     strategies as an element in funding activities under this 
     section;
       ``(vi) activities to facilitate remote access to services 
     provided through a one-stop delivery system, including 
     facilitating access through the use of technology; and
       ``(vii) activities to carry out business services and 
     strategies that meet the workforce investment needs of local 
     area employers, as determined by the local board, consistent 
     with the local plan under section 118.'';
       (B) by striking paragraphs (2) and (3); and
       (C) by adding at the end the following:
       ``(2) Incumbent worker training programs.--
       ``(A) In general.--The local board may use funds allocated 
     to a local area under section 133(b)(2) to carry out 
     incumbent worker training programs in accordance with this 
     paragraph.
       ``(B) Training activities.--The training programs for 
     incumbent workers under this paragraph shall be carried out 
     by the local area in conjunction with the employers of such 
     workers for the purpose of assisting such workers in 
     obtaining the skills necessary to retain employment and avert 
     layoffs.
       ``(C) Employer match required.--
       ``(i) In general.--Employers participating in programs 
     under this paragraph shall be required to pay a proportion of 
     the costs of providing the training to the incumbent workers 
     of the employers. The local board shall establish the 
     required payment toward such costs, which may include in-kind 
     contributions.
       ``(ii) Calculation of match.--The wages paid by an employer 
     to a worker while they are attending training may be included 
     as part of the required payment of the employer.''; and
       (7) by adding at the end the following:
       ``(e) Priority for Placement in Private Sector Jobs.--In 
     providing employment and training activities authorized under 
     this section, the State board and local board shall give 
     priority to placing participants in jobs in the private 
     sector.
       ``(f) Veteran Employment Specialist.--
       ``(1) In general.--Subject to paragraph (8), a local board 
     shall hire and employ one or more veteran employment 
     specialists to carry out employment, training, supportive, 
     and placement services under this subsection in the local 
     area served by the local board.
       ``(2) Principal duties.--A veteran employment specialist in 
     a local area shall--
       ``(A) conduct outreach to employers in the local area to 
     assist veterans, including disabled veterans, in gaining 
     employment, including--
       ``(i) conducting seminars for employers; and
       ``(ii) in conjunction with employers, conducting job search 
     workshops, and establishing job search groups; and
       ``(B) facilitate the furnishing of employment, training, 
     supportive, and placement services to veterans, including 
     disabled and homeless veterans, in the local area.
       ``(3) Hiring preference for veterans and individuals with 
     expertise in serving veterans.--Subject to paragraph (8), a 
     local

[[Page 5498]]

     board shall, to the maximum extent practicable, employ 
     veterans or individuals with expertise in serving veterans to 
     carry out the services described in paragraph (2) in the 
     local area served by the local board. In hiring an individual 
     to serve as a veteran employment specialist, a local board 
     shall give preference to veterans and other individuals in 
     the following order:
       ``(A) To service-connected disabled veterans.
       ``(B) If no veteran described in subparagraph (A) is 
     available, to veterans.
       ``(C) If no veteran described in subparagraph (A) or (B) is 
     available, to any member of the Armed Forces transitioning 
     out of military service.
       ``(D) If no veteran or member described in subparagraph 
     (A), (B), or (C) is available, to any spouse of a veteran or 
     a spouse of a member of the Armed Forces transitioning out of 
     military service.
       ``(E) If no veteran or member described in subparagraph 
     (A), (B), or (C) is available and no spouse described in 
     paragraph (D) is available, to any other individuals with 
     expertise in serving veterans.
       ``(4) Administration and reporting.--
       ``(A) In general.--Each veteran employment specialist shall 
     be administratively responsible to the one-stop operator of 
     the one-stop center in the local area and shall provide, at a 
     minimum, quarterly reports to the one-stop operator of such 
     center and to the Assistant Secretary for Veterans' 
     Employment and Training for the State on the specialist's 
     performance, and compliance by the specialist with Federal 
     law (including regulations), with respect to the--
       ``(i) principal duties (including facilitating the 
     furnishing of services) for veterans described in paragraph 
     (2); and
       ``(ii) hiring preferences described in paragraph (3) for 
     veterans and other individuals.
       ``(B) Report to secretary.--Each State shall submit to the 
     Secretary an annual report on the qualifications used by each 
     local board in the State in making hiring determinations for 
     a veteran employment specialist and the salary structure 
     under which such specialist is compensated.
       ``(C) Report to congress.--The Secretary shall submit to 
     the Committee on Education and the Workforce and the 
     Committee on Veterans' Affairs of the House of 
     Representatives and the Committee on Health, Education, 
     Labor, and Pensions and the Committee on Veterans' Affairs of 
     the Senate an annual report summarizing the reports submitted 
     under subparagraph (B), and including summaries of outcomes 
     achieved by participating veterans, disaggregated by local 
     areas.
       ``(5) Part-time employees.--A part-time veteran employment 
     specialist shall perform the functions of a veteran 
     employment specialist under this subsection on a halftime 
     basis.
       ``(6) Training requirements.--Each veteran employment 
     specialist described in paragraph (2) shall satisfactorily 
     complete training provided by the National Veterans' 
     Employment and Training Institute during the 3-year period 
     that begins on the date on which the employee is so assigned.
       ``(7) Specialist's duties.--A full-time veteran employment 
     specialist shall perform only duties related to employment, 
     training, supportive, and placement services under this 
     subsection, and shall not perform other non-veteran-related 
     duties if such duties detract from the specialist's ability 
     to perform the specialist's duties related to employment, 
     training, supportive, and placement services under this 
     subsection.
       ``(8) State option.--At the request of a local board, a 
     State may opt to assume the duties assigned to the local 
     board under paragraphs (1) and (3), including the hiring and 
     employment of one or more veteran employment specialists for 
     placement in the local area served by the local board.''.

     SEC. 423. PERFORMANCE ACCOUNTABILITY SYSTEM.

       Section 136 (29 U.S.C. 2871) is amended--
       (1) in subsection (b)--
       (A) by amending paragraphs (1) and (2) to read as follows:
       ``(1) In general.--For each State, the State performance 
     measures shall consist of--
       ``(A)(i) the core indicators of performance described in 
     paragraph (2)(A); and
       ``(ii) additional indicators of performance (if any) 
     identified by the State under paragraph (2)(B); and
       ``(B) a State adjusted level of performance for each 
     indicator described in subparagraph (A).
       ``(2) Indicators of performance.--
       ``(A) Core indicators of performance.--
       ``(i) In general.--The core indicators of performance for 
     the program of employment and training activities authorized 
     under sections 132(a)(2) and 134, the program of adult 
     education and family literacy education activities authorized 
     under title II, and the program authorized under title I of 
     the Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.), other 
     than section 112 or part C of that title (29 U.S.C. 732, 
     741), shall consist of the following indicators of 
     performance (with performance determined in the aggregate and 
     as disaggregated by the populations identified in the State 
     and local plan in each case):

       ``(I) The percentage and number of program participants who 
     are in unsubsidized employment during the second full 
     calendar quarter after exit from the program.
       ``(II) The percentage and number of program participants 
     who are in unsubsidized employment during the fourth full 
     calendar quarter after exit from the program.
       ``(III) The difference in the median earnings of program 
     participants who are in unsubsidized employment during the 
     second full calendar quarter after exit from the program, 
     compared to the median earnings of such participants prior to 
     participation in such program.
       ``(IV) The percentage and number of program participants 
     who obtain a recognized postsecondary credential (such as an 
     industry-recognized credential or a certificate from a 
     registered apprenticeship program), or a regular secondary 
     school diploma or its recognized equivalent (subject to 
     clause (ii)), during participation in or within 1 year after 
     exit from the program.
       ``(V) The percentage and number of program participants 
     who, during a program year--

       ``(aa) are in an education or training program that leads 
     to a recognized postsecondary credential (such as an 
     industry-recognized credential or a certificate from a 
     registered apprenticeship program), a certificate from an on-
     the-job training program, a regular secondary school diploma 
     or its recognized equivalent, or unsubsidized employment; and
       ``(bb) are achieving measurable basic skill gains toward 
     such a credential, certificate, diploma, or employment.

       ``(VI) The percentage and number of program participants 
     who obtain unsubsidized employment in the field relating to 
     the training services described in section 134(c)(4) that 
     such participants received.

       ``(ii) Indicator relating to credential.--For purposes of 
     clause (i)(IV), program participants who obtain a regular 
     secondary school diploma or its recognized equivalent shall 
     be included in the percentage counted as meeting the 
     criterion under such clause only if such participants (in 
     addition to obtaining such diploma or its recognized 
     equivalent), within 1 year after exit from the program, have 
     obtained or retained employment, have been removed from 
     public assistance, or have begun an education or training 
     program leading to a recognized postsecondary credential.
       ``(B) Additional indicators.--A State may identify in the 
     State plan additional indicators for workforce investment 
     activities authorized under this subtitle.''; and
       (B) in paragraph (3)--
       (i) in subparagraph (A)--

       (I) in the heading, by striking ``and customer satisfaction 
     indicator'';
       (II) in clause (i), by striking ``and the customer 
     satisfaction indicator described in paragraph (2)(B)'';
       (III) in clause (ii), by striking ``and the customer 
     satisfaction indicator of performance, for the first 3'' and 
     inserting ``, for all 3'';
       (IV) in clause (iii)--

       (aa) in the heading, by striking ``for first 3 years''; and
       (bb) by striking ``and the customer satisfaction indicator 
     of performance, for the first 3 program years'' and inserting 
     ``for all 3 program years'';

       (V) in clause (iv)--

       (aa) by striking ``or (v)'';
       (bb) by striking subclause (I) and redesignating subclauses 
     (II) and (III) as subclauses (I) and (II), respectively; and
       (cc) in subclause (I) (as so redesignated)--
       (AA) by inserting ``, such as unemployment rates and job 
     losses or gains in particular industries'' after ``economic 
     conditions''; and
       (BB) by inserting ``, such as indicators of poor work 
     experience, dislocation from high-wage employment, low levels 
     of literacy or English proficiency, disability status 
     (including disability status among veterans), and welfare 
     dependency,'' after ``program'';

       (VI) by striking clause (v) and redesignating clause (vi) 
     as clause (v); and
       (VII) in clause (v) (as so redesignated)--

       (aa) by striking ``described in clause (iv)(II)'' and 
     inserting ``described in clause (iv)(I)''; and
       (bb) by striking ``or (v)''; and
       (ii) in subparagraph (B), by striking ``paragraph (2)(C)'' 
     and inserting ``paragraph (2)(B)'';
       (2) in subsection (c)--
       (A) by amending clause (i) of paragraph (1)(A) to read as 
     follows:
       ``(i) the core indicators of performance described in 
     subsection (b)(2)(A) for activities described in such 
     subsection, other than statewide workforce investment 
     activities; and'';
       (B) in clause (ii) of paragraph (1)(A), by striking 
     ``(b)(2)(C)'' and inserting ``(b)(2)(B)''; and
       (C) by amending paragraph (3) to read as follows:
       ``(3) Determinations.--In determining such local levels of 
     performance, the local board, the chief elected official, and 
     the Governor shall ensure such levels are adjusted based on 
     the specific economic conditions (such as unemployment rates 
     and job losses or gains in particular industries), or 
     demographic characteristics or other characteristics of the 
     population to be served, in the local area.'';

[[Page 5499]]

       (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); and
       (vi) by adding at the end the following:
       ``(C) with respect to each local area in the State--
       ``(i) the number of individuals who received work ready 
     services described in section 134(c)(2) and the number of 
     individuals who received training services described in 
     section 134(c)(4), during the most recent program year and 
     fiscal year, and the preceding 5 program years, disaggregated 
     (for individuals who received work ready services) by the 
     type of entity that provided the work ready services and 
     disaggregated (for individuals who received training 
     services) by the type of entity that provided the training 
     services, and the amount of funds spent on each of the 2 
     types of services during the most recent program year and 
     fiscal year, and the preceding 5 fiscal years;
       ``(ii) the number of individuals who successfully exited 
     out of work ready services described in section 134(c)(2) and 
     the number of individuals who exited out of training services 
     described in section 134(c)(4), during the most recent 
     program year and fiscal year, and the preceding 5 program 
     years, disaggregated (for individuals who received work ready 
     services) by the type of entity that provided the work ready 
     services and disaggregated (for individuals who received 
     training services) by the type of entity that provided the 
     training services; and
       ``(iii) the average cost per participant of those 
     individuals who received work ready services described in 
     section 134(c)(2) and the average cost per participant of 
     those individuals who received training services described in 
     section 134(c)(4), during the most recent program year and 
     fiscal year, and the preceding 5 program years, disaggregated 
     (for individuals who received work ready services) by the 
     type of entity that provided the work ready services and 
     disaggregated (for individuals who received training 
     services) by the type of entity that provided the training 
     services; and
       ``(D) the amount of funds spent on training services and 
     discretionary activities described in section 134(d), 
     disaggregated by the populations identified under section 
     112(b)(16)(A)(iv) and section 118(b)(10).'';
       (C) in paragraph (3)(A), by striking ``through 
     publication'' and inserting ``through electronic means''; and
       (D) by adding at the end the following:
       ``(4) Data validation.--In preparing the reports described 
     in this subsection, each State shall establish procedures, 
     consistent with guidelines issued by the Secretary, to ensure 
     the information contained in the reports is valid and 
     reliable.
       ``(5) State and local policies.--
       ``(A) State policies.--Each State that receives an 
     allotment under section 132 shall maintain a central 
     repository of policies related to access, eligibility, 
     availability of services, and other matters, and plans 
     approved by the State board and make such repository 
     available to the public, including by electronic means.
       ``(B) Local policies.--Each local area that receives an 
     allotment under section 133 shall maintain a central 
     repository of policies related to access, eligibility, 
     availability of services, and other matters, and plans 
     approved by the local board and make such repository 
     available to the public, including by electronic means.'';
       (4) in subsection (g)--
       (A) in paragraph (1)--
       (i) in subparagraph (A), by striking ``or (B)''; and
       (ii) in subparagraph (B), by striking ``may reduce by not 
     more than 5 percent,'' and inserting ``shall reduce''; and
       (B) by striking paragraph (2) and inserting the following:
       ``(2) Funds resulting from reduced allotments.--The 
     Secretary shall return to the Treasury the amount retained, 
     as a result of a reduction in an allotment to a State made 
     under paragraph (1)(B).'';
       (5) in subsection (h)--
       (A) in paragraph (1), by striking ``or (B)''; and
       (B) in paragraph (2)--
       (i) in subparagraph (A), by amending the matter preceding 
     clause (i) to read as follows:
       ``(A) In general.--If such failure continues for a second 
     consecutive year, the Governor shall take corrective actions, 
     including the development of a reorganization plan. Such plan 
     shall--'';
       (ii) by redesignating subparagraphs (B) and (C) as 
     subparagraphs (C) and (D), respectively;
       (iii) by inserting after subparagraph (A), the following:
       ``(B) Reduction in the amount of grant.--If such failure 
     continues for a third consecutive year, the Governor shall 
     reduce the amount of the grant that would (in the absence of 
     this subparagraph) be payable to the local area under such 
     program for the program year after such third consecutive 
     year. Such penalty shall be based on the degree of failure to 
     meet local levels of performance.'';
       (iv) in subparagraph (C)(i) (as so redesignated), by 
     striking ``a reorganization plan under subparagraph (A) may, 
     not later than 30 days after receiving notice of the 
     reorganization plan, appeal to the Governor to rescind or 
     revise such plan'' and inserting ``corrective action under 
     subparagraph (A) or (B) may, not later than 30 days after 
     receiving notice of the action, appeal to the Governor to 
     rescind or revise such action''; and
       (v) in subparagraph (D) (as so redesignated), by striking 
     ``subparagraph (B)'' each place it appears and inserting 
     ``subparagraph (C)'';
       (6) in subsection (i)--
       (A) in paragraph (1)--
       (i) in subparagraph (B), by striking ``subsection 
     (b)(2)(C)'' and inserting ``subsection (b)(2)(B)''; and
       (ii) in subparagraph (C), by striking ``(b)(3)(A)(vi)'' and 
     inserting ``(b)(3)(A)(v)'';
       (B) in paragraph (2), by striking ``the activities 
     described in section 502 concerning''; and
       (C) in paragraph (3), by striking ``described in paragraph 
     (1) and in the activities described in section 502'' and 
     inserting ``and activities described in this subsection''; 
     and
       (7) by adding at the end the following new subsections:
       ``(j) Use of Core Indicators for Other Programs.--
     Consistent with the requirements of the applicable 
     authorizing laws, the Secretary shall use the core indicators 
     of performance described in subsection (b)(2)(A) to assess 
     the effectiveness of the programs described in section 
     121(b)(1)(B) (in addition to the programs carried out under 
     chapter 5) that are carried out by the Secretary.
       ``(k) Establishing Pay-for-Performance Incentives.--
       ``(1) In general.--At the discretion of the Governor of a 
     State, a State may establish an incentive system for local 
     boards to implement pay-for-performance contract strategies 
     for the delivery of employment and training activities in the 
     local areas served by the local boards.
       ``(2) Implementation.--A State that establishes a pay-for-
     performance incentive system shall reserve not more than 10 
     percent of the total amount allotted to the State under 
     section 132(b)(2) for a fiscal year to provide funds to local 
     areas in the State whose local boards have implemented a pay-
     for-performance contract strategy.
       ``(3) Evaluations.--A State described in paragraph (2) 
     shall use funds reserved by the State under section 133(a)(1) 
     to evaluate the return on investment of pay-for-performance 
     contract strategies implemented by local boards in the 
     State.''.

     SEC. 424. AUTHORIZATION OF APPROPRIATIONS.

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

     ``SEC. 137. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out the 
     activities described in section 132, $5,945,639,000 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

[[Page 5500]]

     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;
       ``(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;
       (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);

[[Page 5501]]

       ``(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 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.'';
       (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

[[Page 5502]]

     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 
     paragraphs (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 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

[[Page 5503]]

     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.'';
       (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

[[Page 5504]]

     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; and
       (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.''.

     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 __71 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

[[Page 5505]]

     authority over the activity or program for the approval of 
     such portion by such Federal agency head; or
       ``(B) coordinate approval of the portion of the State 
     unified plan covering an activity or program described in 
     subsection (b)(2) with the head of the Federal agency who 
     exercises administrative authority over the activity or 
     program.
       ``(2) Timeline.--A State unified plan shall be considered 
     to be approved by the Secretary at the end of the 90-day 
     period beginning on the day the Secretary receives the plan, 
     unless the Secretary makes a written determination, during 
     the 90-day period, that details how the plan is not 
     consistent with the requirements of the Federal statute 
     authorizing an activity or program described in subsection 
     (b)(2) and covered under the plan or how the plan is not 
     consistent with the requirements of subsection (c)(3).
       ``(3) Scope of portion.--For purposes of paragraph (1), the 
     portion of the State unified plan covering an activity or 
     program shall be considered to include the plan described in 
     subsection (c)(3) and any proposal described in subsection 
     (e)(2), as that part and proposal relate to the activity or 
     program.''; and
       (4) by adding at the end the following:
       ``(e) Additional Employment and Training Funds.--
       ``(1) Purpose.--It is the purpose of this subsection to 
     reduce inefficiencies in the administration of federally 
     funded State and local employment and training programs.
       ``(2) In general.--In developing a State unified plan for 
     the activities or programs described in subsection (b)(2), 
     and subject to paragraph (4) and to the State plan approval 
     process under subsection (d), a State may propose to 
     consolidate the amount, in whole or part, provided for the 
     activities or programs covered by the plan into the Workforce 
     Investment Fund under section 132(b) to improve the 
     administration of State and local employment and training 
     programs.
       ``(3) Requirements.--A State that has a State unified plan 
     approved under subsection (d) with a proposal for 
     consolidation under paragraph (2), and that is carrying out 
     such consolidation, shall--
       ``(A) in providing an activity or program for which an 
     amount is consolidated into the Workforce Investment Fund--
       ``(i) continue to meet the program requirements, 
     limitations, and prohibitions of any Federal statute 
     authorizing the activity or program; and
       ``(ii) meet the intent and purpose for the activity or 
     program; and
       ``(B) continue to make reservations and allotments under 
     subsections (a) and (b) of section 133.
       ``(4) Exceptions.--A State may not consolidate an amount 
     under paragraph (2) that is allocated to the State under--
       ``(A) the Carl D. Perkins Career and Technical Education 
     Act of 2006 (20 U.S.C. 2301 et seq.); or
       ``(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

[[Page 5506]]

     speak in English, compute, and solve problems at a level of 
     proficiency necessary to obtain employment and to 
     successfully make the transition to postsecondary education.
       ``(12) Local educational agency.--The term `local 
     educational agency' has the meaning given the term in section 
     9101 of the Elementary and Secondary Education Act of 1965.
       ``(13) Outlying area.--The term `outlying area' has the 
     meaning given the term in section 101 of this Act.
       ``(14) Postsecondary educational institution.--The term 
     `postsecondary educational institution' means--
       ``(A) an institution of higher education that provides not 
     less than a 2-year program of instruction that is acceptable 
     for credit toward a bachelor's degree;
       ``(B) a tribally controlled community college; or
       ``(C) a nonprofit educational institution offering 
     certificate or apprenticeship programs at the postsecondary 
     level.
       ``(15) Secretary.--The term `Secretary' means the Secretary 
     of Education.
       ``(16) State.--The term `State' means each of the several 
     States of the United States, the District of Columbia, and 
     the Commonwealth of Puerto Rico.
       ``(17) State educational agency.--The term `State 
     educational agency' has the meaning given the term in section 
     9101 of the Elementary and Secondary Education Act of 1965.
       ``(18) Workplace literacy program.--The term `workplace 
     literacy program' means an educational program that is 
     offered in collaboration between eligible providers and 
     employers or employee organizations for the purpose of 
     improving the productivity of the workforce through the 
     improvement of reading, writing, speaking, and mathematics 
     skills.

     ``SEC. 204. HOME SCHOOLS.

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

     ``SEC. 205. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     title, $606,294,933 for fiscal year 2015 and for each of the 
     6 succeeding fiscal years.

                    ``Subtitle A--Federal Provisions

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

       ``(a) Reservation of Funds.--From the sums appropriated 
     under section 205 for a fiscal year, the Secretary shall 
     reserve 2.0 percent to carry out section 242.
       ``(b) Grants to Eligible Agencies.--
       ``(1) In general.--From the sums appropriated under section 
     205 and not reserved under subsection (a) for a fiscal year, 
     the Secretary shall award a grant to each eligible agency 
     having a State plan approved under section 224 in an amount 
     equal to the sum of the initial allotment under subsection 
     (c)(1) and the additional allotment under subsection (c)(2) 
     for the eligible agency for the fiscal year, subject to 
     subsections (f) and (g).
       ``(2) Purpose of grants.--The Secretary may award a grant 
     under paragraph (1) only 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 paragraphs (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

[[Page 5507]]

     evidence based research instructional practices in reading, 
     writing, speaking, mathematics, and English language 
     acquisition programs.
       ``(3) The provision of assistance to eligible providers in 
     developing, implementing, and reporting measurable progress 
     in achieving the objectives of this title.
       ``(4) The monitoring and evaluation of the quality of, and 
     the improvement in, adult education and literacy activities.
       ``(5) The provision of technology assistance, including 
     staff training, to eligible providers of adult education and 
     family literacy education programs, including distance 
     education activities, to enable the eligible providers to 
     improve the quality of such activities.
       ``(6) The development and implementation of technology 
     applications or distance education, including professional 
     development to support the use of instructional technology.
       ``(7) Coordination with other public programs, including 
     programs under title I of this Act, and other welfare-to-
     work, workforce development, and job training programs.
       ``(8) Coordination with existing support services, such as 
     transportation, child care, and other assistance designed to 
     increase rates of enrollment in, and successful completion 
     of, adult education and family literacy education programs, 
     for adults enrolled in such activities.
       ``(9) The development and implementation of a system to 
     assist in the transition from adult basic education to 
     postsecondary education.
       ``(10) Activities to promote workplace literacy programs.
       ``(11) Other activities of statewide significance, 
     including assisting eligible providers in achieving progress 
     in improving the skill levels of adults who participate in 
     programs under this title.
       ``(12) Integration of literacy, instructional, and 
     occupational skill training and promotion of linkages with 
     employees.
       ``(b) Coordination.--In carrying out this section, eligible 
     agencies shall coordinate where possible, and avoid 
     duplicating efforts, in order to maximize the impact of the 
     activities described in subsection (a).
       ``(c) State-Imposed Requirements.--Whenever a State or 
     outlying area implements any rule or policy relating to the 
     administration or operation of a program authorized under 
     this title that has the effect of imposing a requirement that 
     is not imposed under Federal law (including any rule or 
     policy based on a State or outlying area interpretation of a 
     Federal statute, regulation, or guideline), the State or 
     outlying area shall identify, to eligible providers, the rule 
     or policy as being imposed by the State or outlying area.

     ``SEC. 224. STATE PLAN.

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

[[Page 5508]]

       ``(D) work farm;
       ``(E) detention center; or
       ``(F) halfway house, community-based rehabilitation center, 
     or any other similar institution designed for the confinement 
     or rehabilitation of criminal offenders.
       ``(2) Criminal offender.--The term `criminal offender' 
     means any individual who is charged with, or convicted of, 
     any criminal offense.

                     ``Subtitle C--Local Provisions

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

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

[[Page 5509]]

     conditions at national, State, and local levels in a timely 
     manner, including statistics on--
       ``(i) employment and unemployment status of national, 
     State, and local populations, including self-employed, part-
     time, and seasonal workers;
       ``(ii) industrial distribution of occupations, as well as 
     current and projected employment opportunities, wages, 
     benefits (where data is available), and skill trends by 
     occupation and industry, with particular attention paid to 
     State and local conditions;
       ``(iii) the incidence of, industrial and geographical 
     location of, and number of workers displaced by, permanent 
     layoffs and plant closings; and
       ``(iv) employment and earnings information maintained in a 
     longitudinal manner to be used for research and program 
     evaluation;
       ``(B) information on State and local employment 
     opportunities, and other appropriate statistical data related 
     to labor market dynamics, which--
       ``(i) shall be current and comprehensive;
       ``(ii) shall meet the needs identified through the 
     consultations described in subparagraphs (C) and (D) of 
     subsection (e)(1); and
       ``(iii) shall meet the needs for the information identified 
     in section 121(e)(1)(E) of the Workforce Investment Act of 
     1998 (29 U.S.C. 2841(e)(1)(E));
       ``(C) technical standards (which the Secretary shall 
     publish annually) for data and information described in 
     subparagraphs (A) and (B) that, at a minimum, meet the 
     criteria of chapter 35 of title 44, United States Code;
       ``(D) procedures to ensure compatibility and additivity of 
     the data and information described in subparagraphs (A) and 
     (B) from national, State, and local levels;
       ``(E) procedures to support standardization and aggregation 
     of data from administrative reporting systems described in 
     subparagraph (A) of employment-related programs;
       ``(F) analysis of data and information described in 
     subparagraphs (A) and (B) for uses such as--
       ``(i) national, State, and local policymaking;
       ``(ii) implementation of Federal policies (including 
     allocation formulas);
       ``(iii) program planning and evaluation; and
       ``(iv) researching labor market dynamics;
       ``(G) wide dissemination of such data, information, and 
     analysis in a user-friendly manner and voluntary technical 
     standards for dissemination mechanisms; and
       ``(H) programs of--
       ``(i) training for effective data dissemination;
       ``(ii) research and demonstration; and
       ``(iii) programs and technical assistance.
       ``(2) Information to be confidential.--
       ``(A) In general.--No officer or employee of the Federal 
     Government or agent of the Federal Government may--
       ``(i) use any submission that is furnished for exclusively 
     statistical purposes under the provisions of this section for 
     any purpose other than the statistical purposes for which the 
     submission is furnished;
       ``(ii) disclose to the public any publication or media 
     transmittal of the data contained in the submission described 
     in clause (i) that permits information concerning an 
     individual subject to be reasonably inferred by either direct 
     or indirect means; or
       ``(iii) permit anyone other than a sworn officer, employee, 
     or agent of any Federal department or agency, or a contractor 
     (including an employee of a contractor) of such department or 
     agency, to examine an individual submission described in 
     clause (i),

     without the consent of the individual, agency, or other 
     person who is the subject of the submission or provides that 
     submission.
       ``(B) Immunity from legal process.--Any submission 
     (including any data derived from the submission) that is 
     collected and retained by a Federal department or agency, or 
     an officer, employee, agent, or contractor of such a 
     department or agency, for exclusively statistical purposes 
     under this section shall be immune from the legal process and 
     shall not, without the consent of the individual, agency, or 
     other person who is the subject of the submission or provides 
     that submission, be admitted as evidence or used for any 
     purpose in any action, suit, or other judicial or 
     administrative proceeding.
       ``(C) Rule of construction.--Nothing in this section shall 
     be construed to provide immunity from the legal process for 
     such submission (including any data derived from the 
     submission) if the submission is in the possession of any 
     person, agency, or entity other than the Federal Government 
     or an officer, employee, agent, or contractor of the Federal 
     Government, or if the submission is 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

[[Page 5510]]

     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 
     $60,153,000 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. AMENDMENTS TO OTHER LAWS.

       (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''; and
       (C) by striking ``this Act.'' and inserting the following: 
     ``this Act; and
       ``(C) in the context of employment and training activities 
     under section 6(d)(4), a State board as defined in section 
     101 of the Workforce Investment Act of 1998 (29 U.S.C. 
     2801).''.
       (2) Eligible households.--Section 5 of the Food and 
     Nutrition Act of 2008 (7 U.S.C. 2014) is amended--
       (A) in subsection (d)(14) by striking ``section 
     6(d)(4)(I)'' and inserting ``section 6(d)(4)(C)'', and
       (B) in subsection (g)(3), in the first sentence, by 
     striking ``constitutes adequate participation in an 
     employment and training program under section 6(d)'' and 
     inserting ``allows the individual to participate in 
     employment and training activities under section 6(d)(4)''.
       (3) Eligibility disqualifications.--Section 6(d)(4) of the 
     Food and Nutrition Act of 2008 (7 U.S.C. 2015(d)(4)) is 
     amended to read as follows:
       ``(D) Employment and training.--
       ``(i) Implementation.--Each State agency shall provide 
     employment and training services authorized under section 134 
     of the Workforce Investment Act of 1998 (29 U.S.C. 2864) to 
     eligible members of households participating in the 
     supplemental nutrition assistance program in gaining skills, 
     training, work, or experience that will increase their 
     ability to obtain regular employment.
       ``(ii) Statewide workforce development system.--Consistent 
     with subparagraph (A), employment and training services shall 
     be provided through the statewide workforce development 
     system, including the one-stop delivery system authorized by 
     the Workforce Investment Act of 1998 (29 U.S.C. 2801 et 
     seq.).
       ``(iii) Reimbursements.--

       ``(I) Actual costs.--The State agency shall provide 
     payments or reimbursement to participants served under this 
     paragraph for--

       ``(aa) the actual costs of transportation and other actual 
     costs (other than dependent care costs) that are reasonably 
     necessary and directly related to the individual 
     participating in employment and training activities; and
       ``(bb) the actual costs of such dependent care expenses as 
     are determined by the State agency to be necessary for the 
     individual to participate in employment and training 
     activities (other than an individual who is the caretaker 
     relative of a dependent in a family receiving benefits under 
     part A of title IV of the Social Security Act (42 U.S.C. 601 
     et seq.) in a local area where an employment, training, or 
     education program under title IV of 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

[[Page 5511]]

       (ii) by striking subparagraph (C);
       (B) in paragraph (2)(B), by striking ``paragraph--'' and 
     all that follows through ``in a manner'' and inserting 
     ``paragraph in a manner''; and
       (C) by adding at the end the following:
       ``(C) In carrying out this section, the Director shall 
     ensure that employment and training services are provided 
     through the statewide workforce development system, as 
     appropriate, authorized by the Workforce Investment Act of 
     1998 (29 U.S.C. 2801 et seq.). Such action may include--
       ``(i) making employment and training activities described 
     in section 134 of such Act (29 U.S.C. 2864) available to 
     refugees; and
       ``(ii) providing refugees with access to a one-stop 
     delivery system established under section 121 of such Act (29 
     U.S.C. 2841).''.
       (4) Cash assistance and medical assistance to refugees.--
     Section 412(e) of such Act (8 U.S.C. 1522(e)) is amended--
       (A) in paragraph (2)(A)(i), by inserting ``and training'' 
     after ``providing employment''; and
       (B) in paragraph (3), by striking ``The'' and inserting 
     ``Consistent with subsection (c)(3), the''.
       (c) Amendments Relating to the Second Chance Act of 2007.--
       (1) Federal prisoner reentry initiative.--Section 231 of 
     the Second Chance Act of 2007 (42 U.S.C. 17541) is amended--
       (A) in subsection (a)(1)(E)--
       (i) by inserting ``the Department of Labor and'' before 
     ``other Federal agencies''; and
       (ii) by inserting ``State and local workforce investment 
     boards,'' after ``community-based organizations,'';
       (B) in subsection (c)--
       (i) in paragraph (2), by striking at the end ``and'';
       (ii) in paragraph (3), by striking at the end the period 
     and inserting ``; and''; and
       (iii) by adding at the end the following new paragraph:
       ``(D) to coordinate reentry programs with the employment 
     and training services provided through the statewide 
     workforce investment system under subtitle B of title I of 
     the Workforce Investment Act of 1998 (29 U.S.C. 2811 et 
     seq.).''; and
       (C) in subsection (d), by adding at the end the following 
     new paragraph:
       ``(F) Interaction with the workforce investment system.--
       ``(i) In general.--In carrying out this section, the 
     Director shall ensure that employment and training services, 
     including such employment and services offered through 
     reentry programs, are provided, as appropriate, through the 
     statewide workforce investment system under subtitle B of 
     title I of the Workforce Investment Act of 1998 (29 U.S.C. 
     2811 et seq.), which may include--

       ``(I) making employment and training services available to 
     prisoners prior to and immediately following the release of 
     such prisoners; or
       ``(II) providing prisoners with access by remote means to a 
     one-stop delivery system under section 121 of the Workforce 
     Investment Act of 1998 (29 U.S.C. 2841) in the State in which 
     the prison involved is located.

       ``(ii) Service defined.--In this paragraph, the term 
     `employment and training services' means those services 
     described in section 134 of the Workforce Investment Act of 
     1998 (29 U.S.C. 2864) offered by the Bureau of Prisons, 
     including--

       ``(I) the skills assessment described in subsection 
     (a)(1)(A);
       ``(II) the skills development plan described in subsection 
     (a)(1)(B); and
       ``(III) the enhancement, development, and implementation of 
     reentry and skills development programs.''.

       (2) Duties of the bureau of prisons.--Section 4042(a) of 
     title 18, United States Code, is amended--
       (A) by redesignating subparagraphs (D) and (E), as added by 
     section 231(d)(1)(C) of the Second Chance Act of 2007 (Public 
     Law 110-199; 122 Stat. 685), as paragraphs (6) and (7), 
     respectively, and adjusting the margin accordingly;
       (B) in paragraph (6), as so redesignated, by redesignating 
     clauses (i) and (ii) as subparagraphs (A) and (B), 
     respectively, and adjusting the margin accordingly;
       (C) in paragraph (7), as so redesignated--
       (i) in clause (ii), by striking ``Employment'' and 
     inserting ``Employment and training services (as defined in 
     paragraph (6) of section 231(d) of the Second Chance Act of 
     2007), including basic skills attainment, consistent with 
     such paragraph''; and
       (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).
       (f) 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''.

     SEC. 473. CONFORMING AMENDMENT TO TABLE OF CONTENTS.

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

[[Page 5512]]

       ``(b) Table of Contents.--The table of contents for this 
     Act is as follows:

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

                ``TITLE I--WORKFORCE INVESTMENT SYSTEMS

             ``Subtitle A--Workforce Investment Definitions

``Sec. 101. Definitions.

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

``Sec. 106. Purpose.

                     ``Chapter 1--State Provisions

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

                     ``Chapter 2--Local Provisions

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

         ``Chapter 3--Workforce Investment Activities Providers

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

            ``Chapter 5--Employment and Training Activities

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

                    ``Chapter 6--General Provisions

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

                        ``Subtitle C--Job Corps

``Sec. 141. Purposes.
``Sec. 142. Definitions.
``Sec. 143. Establishment.
``Sec. 144. Individuals eligible for the Job Corps.
``Sec. 145. Recruitment, screening, selection, and assignment of 
              enrollees.
``Sec. 146. Enrollment.
``Sec. 147. Job Corps centers.
``Sec. 148. Program activities.
``Sec. 149. Counseling and job placement.
``Sec. 150. Support.
``Sec. 151. Operations.
``Sec. 152. Standards of conduct.
``Sec. 153. Community participation.
``Sec. 154. Workforce councils.
``Sec. 156. Technical assistance to centers.
``Sec. 157. Application of provisions of Federal law.
``Sec. 158. Special provisions.
``Sec. 159. Performance accountability and management.
``Sec. 160. General provisions.
``Sec. 161. Authorization of appropriations.

                    ``Subtitle D--National Programs

``Sec. 170. Technical assistance.
``Sec. 172. Evaluations.

                      ``Subtitle E--Administration

``Sec. 181. Requirements and restrictions.
``Sec. 182. Prompt allocation of funds.
``Sec. 183. Monitoring.
``Sec. 184. Fiscal controls; sanctions.
``Sec. 185. Reports; recordkeeping; investigations.
``Sec. 186. Administrative adjudication.
``Sec. 187. Judicial review.
``Sec. 188. Nondiscrimination.
``Sec. 189. Administrative provisions.
``Sec. 190. References.
``Sec. 191. State legislative authority.
``Sec. 193. Transfer of Federal equity in State employment security 
              real property to the States.
``Sec. 195. General program requirements.
``Sec. 196. Federal agency staff.
``Sec. 197. Restrictions on lobbying and political activities.

            ``Subtitle F--Repeals and Conforming Amendments

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

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

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

                    ``Subtitle A--Federal Provisions

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

                     ``Subtitle B--State Provisions

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

                     ``Subtitle C--Local Provisions

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

                    ``Subtitle D--General Provisions

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

          ``TITLE III--WORKFORCE INVESTMENT-RELATED ACTIVITIES

                    ``Subtitle A--Wagner-Peyser Act

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

               ``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--

[[Page 5513]]

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

     SEC. 479. CARRYOVER.

       Section 19(a)(1) of the Rehabilitation Act of 1973 (29 
     U.S.C. 716(a)(1)) is amended by striking ``part B of title 
     VI,''.

     SEC. 480. TRADITIONALLY UNDERSERVED POPULATIONS.

       Section 21 of the Rehabilitation Act of 1973 (29 U.S.C. 
     718) is amended, in paragraphs (1) and (2)(A) of subsection 
     (b), and in subsection (c), by striking ``VI,''.

     SEC. 481. STATE PLAN.

       Section 101(a) of the Rehabilitation Act of 1973 (29 U.S.C. 
     721(a)) is amended--
       (1) in paragraph (10)--
       (A) in subparagraph (B), by striking ``on the eligible 
     individuals'' and all that follows and inserting ``of 
     information necessary to assess the State's performance on 
     the core indicators of performance described in section 
     136(b)(2)(A) of the Workforce Investment Act of 1998 (29 
     U.S.C. 2871(b)(2)(A)).''; and
       (B) in subparagraph (E)(ii), by striking ``, to the extent 
     the measures are applicable to individuals with 
     disabilities'';
       (2) in paragraph (11)--
       (A) in subparagraph (D)(i), by inserting before the 
     semicolon the following: ``, which may be provided using 
     alternative means of meeting participation (such as 
     participation through video conferences and conference 
     calls)''; and
       (B) by adding at the end the following:
       ``(G) Coordination with assistive technology programs.--The 
     State plan shall include an assurance that the designated 
     State unit and the lead agency or implementing entity 
     responsible for carrying out duties under the Assistive 
     Technology Act of 1998 (29 U.S.C. 3001 et seq.) have 
     developed working relationships and coordinate their 
     activities.'';
       (3) in paragraph (15)--
       (A) in subparagraph (A)--
       (i) in clause (i)--

       (I) in subclause (II), by striking ``and'' at the end;
       (II) in subclause (III), by adding ``and'' at the end; and
       (III) by adding at the end the following:
       ``(IV) students with disabilities, including their need for 
     transition services;'';

       (ii) by redesignating clauses (ii) and (iii) as clauses 
     (iii) and (iv), respectively; and
       (iii) by inserting after clause (i) the following:
       ``(ii) include an assessment of the transition services 
     provided under this Act, and coordinated with transition 
     services provided under the Individuals with Disabilities 
     Education Act (20 U.S.C. 1400 et seq.), about the extent to 
     which those 2 types of services meet the needs of individuals 
     with disabilities;'';
       (B) in subparagraph (B)(ii), by striking ``and under part B 
     of title VI''; and
       (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

[[Page 5514]]

       (2) in subsection (c)(1)(B), by striking ``an evaluation 
     standard'' and inserting ``a performance standard''.

     SEC. 484. EXPENDITURE OF CERTAIN AMOUNTS.

       Section 108(a) of the Rehabilitation Act of 1973 (29 U.S.C. 
     728(a)) is amended by striking ``under part B of title VI, 
     or''.

     SEC. 485. COLLABORATION WITH INDUSTRY.

       The Rehabilitation Act of 1973 is amended by inserting 
     after section 109 (29 U.S.C. 728a) the following:

     ``SEC. 109A. COLLABORATION WITH INDUSTRY.

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

     SEC. 486. RESERVATION FOR EXPANDED TRANSITION SERVICES.

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

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

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

     SEC. 487. CLIENT ASSISTANCE PROGRAM.

       Section 112(e)(1) of the Rehabilitation Act of 1973 (29 
     U.S.C. 732(e)(1)) is amended by redesignating subparagraph 
     (D) as subparagraph (E) and inserting after subparagraph (C) 
     the following:
       ``(D) The Secretary shall make grants to the protection and 
     advocacy system serving the American Indian Consortium under 
     the Developmental Disabilities and Bill of Rights Act of 2000 
     (42 U.S.C. 15001 et seq.) to provide services in accordance 
     with this section, as determined by the Secretary. The amount 
     of such grants shall be the same as the amount provided to 
     territories under this subsection.''.

     SEC. 488. RESEARCH.

       Section 204(a)(2)(A) of the Rehabilitation Act of 1973 (29 
     U.S.C. 764(a)(2)(A)) is amended by striking ``VI,''.

     SEC. 489. TITLE III AMENDMENTS.

       Title III of the Rehabilitation Act of 1973 (29 U.S.C. 771 
     et seq.) is amended--
       (1) in section 301(a) (21 U.S.C. 771(a))--
       (A) in paragraph (2), by inserting ``and'' at the end;
       (B) by striking paragraphs (3) and (4); and
       (C) by redesignating paragraph (5) as paragraph (3);
       (2) in section 302 (29 U.S.C. 772)--
       (A) in subsection (g)--
       (i) in the heading, by striking ``and In-Service 
     Training''; and
       (ii) by striking paragraph (3); and
       (B) in subsection (h), by striking ``section 306'' and 
     inserting ``section 304'';
       (3) in section 303 (29 U.S.C. 773)--
       (A) in subsection (b)(1), by striking ``section 306'' and 
     inserting ``section 304''; and
       (B) in subsection (c)--
       (i) in paragraph (4)--

       (I) by amending subparagraph (A)(ii) to read as follows:

       ``(ii) to coordinate activities and work closely with the 
     parent training and information centers established pursuant 
     to section 671 of the Individuals with Disabilities Education 
     Act (20 U.S.C. 1471), the community parent resource centers 
     established pursuant to section 672 of such Act (29 U.S.C. 
     1472), and the eligible entities receiving awards under 
     section 673 of such Act (20 U.S.C. 1473); and''; and

       (II) in subparagraph (C), by inserting ``, and demonstrate 
     the capacity for serving,'' after ``serve''; and

       (ii) by adding at the end the following:
       ``(8) Reservation.--From the amount appropriated to carry 
     out this subsection for a fiscal year, 20 percent of such 
     amount or $500,000, whichever is less, shall be reserved to 
     carry out paragraph (6).'';
       (4) by striking sections 304 and 305 (29 U.S.C. 774, 775); 
     and
       (5) by redesignating section 306 (29 U.S.C. 776) as section 
     304.

     SEC. 490. REPEAL OF TITLE VI.

       Title VI of the Rehabilitation Act of 1973 (29 U.S.C. 795 
     et seq.) is repealed.

     SEC. 491. TITLE VII GENERAL PROVISIONS.

       (a) Purpose.--Section 701(3) of the Rehabilitation Act of 
     1973 (29 U.S.C. 796(3)) is 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 
     ``$3,066,192,000 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 ``$11,600,000 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 $103,125,000 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 ``$33,657,000 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 ``$5,046,000 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 ``$3,081,000 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 ``$7,013,000 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 ``$17,088,000 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 ``$22,137,000 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 ``$75,772,000 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 ``$32,239,000 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:


[[Page 5515]]


``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 _71, as such programs were in effect for such 
     fiscal year; and
       (B) each of the programs described in subparagraph (A) that 
     have been repealed or consolidated on or after the date of 
     enactment of this Act;
       (2) determines the amount of administrative cost savings at 
     the Federal and State levels as a result of repealing and 
     consolidating programs by calculating the differences in the 
     amount of administrative costs between subparagraph (A) and 
     subparagraph (B) of paragraph (1); and
       (3) estimates the administrative cost savings at the 
     Federal and State levels for a fiscal year as a result of 
     States consolidating amounts under section 501(e) of the 
     Workforce Investment Act of 1998 (20 U.S.C. 9271(e)) to 
     reduce inefficiencies in the administration of federally-
     funded State and local employment and training programs.
       (b) Definition.--For purposes of this section, the term 
     ``administrative costs'' has the meaning given the term in 
     section 101 of the Workforce Investment Act of 1998 (29 
     U.S.C. 2801).

                          ____________________