[Congressional Record (Bound Edition), Volume 160 (2014), Part 8]
[Senate]
[Pages 10901-10988]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 3378. Mrs. MURRAY (for herself, Mr. Isakson, Mr. Harkin, Mr. 
Alexander, Ms. Mikulski, Mr. Sanders, Mr. Casey, Mrs. Hagan, Mr. 
Franken, Mr. Bennet, Mr. Whitehouse, Ms. Baldwin, Mr. Murphy, Ms. 
Warren, Mr. Enzi, Ms. Murkowski, Mr. Booker, Ms. Collins, Mr. Corker, 
Mr. Begich, Mr. Scott, Mrs. Fischer, Mr. Brown, and Mr. Coons) proposed 
an amendment to the bill H.R. 803, to amend the Workforce Investment 
Act of 1998 to strengthen the United States workforce development 
system through innovation in, and alignment and improvement of, 
employment, training, and education programs in the United States, and 
to promote individual and national economic growth, and for other 
purposes; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Workforce 
     Innovation and Opportunity Act''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
Sec. 3. Definitions.

               TITLE I--WORKFORCE DEVELOPMENT ACTIVITIES

                      Subtitle A--System Alignment

                      Chapter 1--State Provisions

Sec. 101. State workforce development boards.
Sec. 102. Unified State plan.
Sec. 103. Combined State plan.

                      Chapter 2--Local Provisions

Sec. 106. Workforce development areas.
Sec. 107. Local workforce development boards.
Sec. 108. Local plan.

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                      Chapter 3--Board Provisions

Sec. 111. Funding of State and local boards.

                 Chapter 4--Performance Accountability

Sec. 116. Performance accountability system.

       Subtitle B--Workforce Investment Activities and Providers

        Chapter 1--Workforce Investment Activities and Providers

Sec. 121. Establishment of one-stop delivery systems.
Sec. 122. Identification of eligible providers of training services.
Sec. 123. Eligible providers of youth workforce investment activities.

            Chapter 2--Youth Workforce Investment Activities

Sec. 126. General authorization.
Sec. 127. State allotments.
Sec. 128. Within State allocations.
Sec. 129. Use of funds for youth workforce investment activities.

    Chapter 3--Adult and Dislocated Worker 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 4--General Workforce Investment Provisions

Sec. 136. 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. 155. Advisory committees.
Sec. 156. Experimental projects and technical assistance.
Sec. 157. Application of provisions of Federal law.
Sec. 158. Special provisions.
Sec. 159. Management information.
Sec. 160. General provisions.
Sec. 161. Job Corps oversight and reporting.
Sec. 162. Authorization of appropriations.

                     Subtitle D--National Programs

Sec. 166. Native American programs.
Sec. 167. Migrant and seasonal farmworker programs.
Sec. 168. Technical assistance.
Sec. 169. Evaluations and research.
Sec. 170. National dislocated worker grants.
Sec. 171. YouthBuild program.
Sec. 172. Authorization of appropriations.

                       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. Secretarial administrative authorities and responsibilities.
Sec. 190. Workforce flexibility plans.
Sec. 191. State legislative authority.
Sec. 192. Transfer of Federal equity in State employment security 
              agency real property to the States.
Sec. 193. Continuation of State activities and policies.
Sec. 194. General program requirements.
Sec. 195. Restrictions on lobbying activities.

                 TITLE II--ADULT EDUCATION AND LITERACY

Sec. 201. Short title.
Sec. 202. Purpose.
Sec. 203. Definitions.
Sec. 204. Home schools.
Sec. 205. Rule of construction regarding postsecondary transition and 
              concurrent enrollment activities.
Sec. 206. 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 leadership activities.
Sec. 243. Integrated English literacy and civics education.

             TITLE III--AMENDMENTS TO THE WAGNER-PEYSER ACT

Sec. 301. Employment service offices.
Sec. 302. Definitions.
Sec. 303. Federal and State employment service offices.
Sec. 304. Allotment of sums.
Sec. 305. Use of sums.
Sec. 306. State plan.
Sec. 307. Performance measures.
Sec. 308. Workforce and labor market information system.

         TITLE IV--AMENDMENTS TO THE REHABILITATION ACT OF 1973

                  Subtitle A--Introductory Provisions

Sec. 401. References.
Sec. 402. Findings, purpose, policy.
Sec. 403. Rehabilitation Services Administration.
Sec. 404. Definitions.
Sec. 405. Administration of the Act.
Sec. 406. Reports.
Sec. 407. Evaluation and information.
Sec. 408. Carryover.
Sec. 409. Traditionally underserved populations.

             Subtitle B--Vocational Rehabilitation Services

Sec. 411. Declaration of policy; authorization of appropriations.
Sec. 412. State plans.
Sec. 413. Eligibility and individualized plan for employment.
Sec. 414. Vocational rehabilitation services.
Sec. 415. State Rehabilitation Council.
Sec. 416. Evaluation standards and performance indicators.
Sec. 417. Monitoring and review.
Sec. 418. Training and services for employers.
Sec. 419. State allotments.
Sec. 420. Payments to States.
Sec. 421. Client assistance program.
Sec. 422. Pre-employment transition services.
Sec. 423. American Indian vocational rehabilitation services.
Sec. 424. Vocational rehabilitation services client information.

                   Subtitle C--Research and Training

Sec. 431. Purpose.
Sec. 432. Authorization of appropriations.
Sec. 433. National Institute on Disability, Independent Living, and 
              Rehabilitation Research.
Sec. 434. Interagency committee.
Sec. 435. Research and other covered activities.
Sec. 436. Disability, Independent Living, and Rehabilitation Research 
              Advisory Council.
Sec. 437. Definition of covered school.

     Subtitle D--Professional Development and Special Projects and 
                             Demonstration

Sec. 441. Purpose; training.
Sec. 442. Demonstration, training, and technical assistance programs.
Sec. 443. Migrant and seasonal farmworkers; recreational programs.

               Subtitle E--National Council on Disability

Sec. 451. Establishment.
Sec. 452. Report.
Sec. 453. Authorization of appropriations.

                    Subtitle F--Rights and Advocacy

Sec. 456. Interagency Committee, Board, and Council.
Sec. 457. Protection and advocacy of individual rights.
Sec. 458. Limitations on use of subminimum wage.

 Subtitle G--Employment Opportunities for Individuals With Disabilities

Sec. 461. Employment opportunities for individuals with disabilities.

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

          Chapter 1--Individuals With Significant Disabilities

                    subchapter a--general provisions

Sec. 471. Purpose.
Sec. 472. Administration of the independent living program.
Sec. 473. Definitions.
Sec. 474. State plan.
Sec. 475. Statewide Independent Living Council.
Sec. 475A. Responsibilities of the Administrator.

               subchapter b--independent living services

Sec. 476. Administration.

              subchapter c--centers for independent living

Sec. 481. Program authorization.
Sec. 482. Centers.
Sec. 483. Standards and assurances.
Sec. 484. Authorization of appropriations.

 Chapter 2--Independent Living Services for Older Individuals Who Are 
                                 Blind

Sec. 486. Independent living services for older individuals who are 
              blind.
Sec. 487. Program of grants.
Sec. 488. Independent living services for older individuals who are 
              blind authorization of appropriations.

[[Page 10903]]

                     Subtitle I--General Provisions

Sec. 491. Transfer of functions regarding independent living to 
              Department of Health and Human Services, and savings 
              provisions.
Sec. 492. Table of contents.

                      TITLE V--GENERAL PROVISIONS

                    Subtitle A--Workforce Investment

Sec. 501. Privacy.
Sec. 502. Buy-American requirements.
Sec. 503. Transition provisions.
Sec. 504. Reduction of reporting burdens and requirements.
Sec. 505. Effective dates.

                  Subtitle B--Amendments to Other Laws

Sec. 511. Repeal of the Workforce Investment Act of 1998.
Sec. 512. Conforming amendments.
Sec. 513. References.

     SEC. 2. PURPOSES.

       The purposes of this Act are the following:
       (1) To increase, for individuals in the United States, 
     particularly those individuals with barriers to employment, 
     access to and opportunities for the employment, education, 
     training, and support services they need to succeed in the 
     labor market.
       (2) To support the alignment of workforce investment, 
     education, and economic development systems in support of a 
     comprehensive, accessible, and high-quality workforce 
     development system in the United States.
       (3) To improve the quality and labor market relevance of 
     workforce investment, education, and economic development 
     efforts to provide America's workers with the skills and 
     credentials necessary to secure and advance in employment 
     with family-sustaining wages and to provide America's 
     employers with the skilled workers the employers need to 
     succeed in a global economy.
       (4) To promote improvement in the structure of and delivery 
     of services through the United States workforce development 
     system to better address the employment and skill needs of 
     workers, jobseekers, and employers.
       (5) To increase the prosperity of workers and employers in 
     the United States, the economic growth of communities, 
     regions, and States, and the global competitiveness of the 
     United States.
       (6) For purposes of subtitle A and B of title I, to provide 
     workforce investment activities, through statewide and local 
     workforce development systems, that increase the employment, 
     retention, and earnings of participants, and increase 
     attainment of recognized postsecondary credentials by 
     participants, and as a result, improve the quality of the 
     workforce, reduce welfare dependency, increase economic self-
     sufficiency, meet the skill requirements of employers, and 
     enhance the productivity and competitiveness of the Nation.

     SEC. 3. DEFINITIONS.

       In this Act, and the core program provisions that are not 
     in this Act, except as otherwise expressly provided:
       (1) Administrative costs.--The term ``administrative 
     costs'' means expenditures incurred by State boards and local 
     boards, direct recipients (including State grant recipients 
     under subtitle B of title I and recipients of awards under 
     subtitles C and D of title I), 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 title I that are not related 
     to the direct provision of workforce investment services 
     (including services to participants and employers). Such 
     costs include both personnel and nonpersonnel costs and both 
     direct and indirect costs.
       (2) Adult.--Except as otherwise specified in section 132, 
     the term ``adult'' means an individual who is age 18 or 
     older.
       (3) Adult education; adult education and literacy 
     activities.--The terms ``adult education'' and ``adult 
     education and literacy activities'' have the meanings given 
     the terms in section 203.
       (4) Area career and technical education school.--The term 
     ``area career and technical education school'' 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).
       (5) Basic skills deficient.--The term ``basic skills 
     deficient'' means, with respect to an individual--
       (A) who is a youth, that the individual has English 
     reading, writing, or computing skills at or below the 8th 
     grade level on a generally accepted standardized test; or
       (B) who is a youth or adult, that the individual is unable 
     to compute or solve problems, or read, write, or speak 
     English, at a level necessary to function on the job, in the 
     individual's family, or in society.
       (6) 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).
       (7) Career pathway.--The term ``career pathway'' means a 
     combination of rigorous and high-quality education, training, 
     and other services that--
       (A) aligns with the skill needs of industries in the 
     economy of the State or regional economy involved;
       (B) prepares an individual to be successful in any of a 
     full range of secondary or postsecondary education options, 
     including apprenticeships registered 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.) 
     (referred to individually in this Act as an 
     ``apprenticeship'', except in section 171);
       (C) includes counseling to support an individual in 
     achieving the individual's education and career goals;
       (D) includes, as appropriate, education offered 
     concurrently with and in the same context as workforce 
     preparation activities and training for a specific occupation 
     or occupational cluster;
       (E) organizes education, training, and other services to 
     meet the particular needs of an individual in a manner that 
     accelerates the educational and career advancement of the 
     individual to the extent practicable;
       (F) enables an individual to attain a secondary school 
     diploma or its recognized equivalent, and at least 1 
     recognized postsecondary credential; and
       (G) helps an individual enter or advance within a specific 
     occupation or occupational cluster.
       (8) Career planning.--The term ``career planning'' means 
     the provision of a client-centered approach in the delivery 
     of services, designed--
       (A) to prepare and coordinate comprehensive employment 
     plans, such as service strategies, for participants to ensure 
     access to necessary workforce investment activities and 
     supportive services, using, where feasible, computer-based 
     technologies; and
       (B) to provide job, education, and career counseling, as 
     appropriate during program participation and after job 
     placement.
       (9) Chief elected official.--The term ``chief elected 
     official'' means--
       (A) the chief elected executive officer of a unit of 
     general local government in a local area; and
       (B) in a case in which a local area includes more than 1 
     unit of general local government, the individuals designated 
     under the agreement described in section 107(c)(1)(B).
       (10) Community-based organization.--The term ``community-
     based organization'' means a private nonprofit organization 
     (which may include a faith-based organization), that is 
     representative of a community or a significant segment of a 
     community and that has demonstrated expertise and 
     effectiveness in the field of workforce development.
       (11) Competitive integrated employment.--The term 
     ``competitive integrated employment'' has the meaning given 
     the term in section 7 of the Rehabilitation Act of 1973 (29 
     U.S.C. 705), for individuals with disabilities.
       (12) Core program.--The term ``core programs'' means a 
     program authorized under a core program provision.
       (13) Core program provision.--The term ``core program 
     provision'' means--
       (A) chapters 2 and 3 of subtitle B of title I (relating to 
     youth workforce investment activities and adult and 
     dislocated worker employment and training activities);
       (B) title II (relating to adult education and literacy 
     activities);
       (C) sections 1 through 13 of the Wagner-Peyser Act (29 
     U.S.C. 49 et seq.) (relating to employment services); and
       (D) 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) (relating to vocational rehabilitation 
     services).
       (14) Customized training.--The term ``customized training'' 
     means training--
       (A) that is designed to meet the specific requirements of 
     an employer (including a group of employers);
       (B) that is conducted with a commitment by the employer to 
     employ an individual upon successful completion of the 
     training; and
       (C) for which the employer pays--
       (i) a significant portion of the cost of training, as 
     determined by the local board involved, taking into account 
     the size of the employer and such other factors as the local 
     board determines to be appropriate, which may include the 
     number of employees participating in training, wage and 
     benefit levels of those employees (at present and anticipated 
     upon completion of the training), relation of the training to 
     the competitiveness of a participant, and other employer-
     provided training and advancement opportunities; and
       (ii) in the case of customized training (as defined in 
     subparagraphs (A) and (B)) involving an employer located in 
     multiple local areas in the State, a significant portion of 
     the cost of the training, as determined by the Governor of 
     the State, taking into account the size of the employer and 
     such other factors as the Governor determines to be 
     appropriate.
       (15) Dislocated worker.--The term ``dislocated worker'' 
     means an individual who--
       (A)(i) has been terminated or laid off, or who has received 
     a notice of termination or layoff, from employment;
       (ii)(I) is eligible for or has exhausted entitlement to 
     unemployment compensation; or
       (II) has been employed for a duration sufficient to 
     demonstrate, to the appropriate entity at a one-stop center 
     referred to in section 121(e), attachment to the workforce, 
     but

[[Page 10904]]

     is not eligible for unemployment compensation due to 
     insufficient earnings or having performed services for an 
     employer that were not covered under a State unemployment 
     compensation law; and
       (iii) is unlikely to return to a previous industry or 
     occupation;
       (B)(i) has been terminated or laid off, or has received a 
     notice of termination or layoff, from employment as a result 
     of any permanent closure of, or any substantial layoff at, a 
     plant, facility, or enterprise;
       (ii) is employed at a facility at which the employer has 
     made a general announcement that such facility will close 
     within 180 days; or
       (iii) for purposes of eligibility to receive services other 
     than training services described in section 134(c)(3), career 
     services described in section 134(c)(2), or supportive 
     services, is employed at a facility at which the employer has 
     made a general announcement that such facility will close;
       (C) was self-employed (including employment as a farmer, a 
     rancher, or a fisherman) but is unemployed as a result of 
     general economic conditions in the community in which the 
     individual resides or because of natural disasters;
       (D) is a displaced homemaker; or
       (E)(i) 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), and 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 and who meets the criteria described in paragraph 
     (16)(B).
       (16) Displaced homemaker.--The term ``displaced homemaker'' 
     means an individual who has been providing unpaid services to 
     family members in the home and who--
       (A)(i) has been dependent on the income of another family 
     member but is no longer supported by that income; or
       (ii) is the dependent spouse of a member of the Armed 
     Forces on active duty (as defined in section 101(d)(1) of 
     title 10, United States Code) and 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
       (B) is unemployed or underemployed and is experiencing 
     difficulty in obtaining or upgrading employment.
       (17) Economic development agency.--The term ``economic 
     development agency'' includes a local planning or zoning 
     commission or board, a community development agency, or 
     another local agency or institution responsible for 
     regulating, promoting, or assisting in local economic 
     development.
       (18) Eligible youth.--Except as provided in subtitles C and 
     D of title I, the term ``eligible youth'' means an in-school 
     youth or out-of-school youth.
       (19) Employment and training activity.--The term 
     ``employment and training activity'' means an activity 
     described in section 134 that is carried out for an adult or 
     dislocated worker.
       (20) English language acquisition program.--The term 
     ``English language acquisition program'' has the meaning 
     given the term in section 203.
       (21) English language learner.--The term ``English language 
     learner'' has the meaning given the term in section 203.
       (22) Governor.--The term ``Governor'' means the chief 
     executive of a State or an outlying area.
       (23) In-demand industry sector or occupation.--
       (A) In general.--The term ``in-demand industry sector or 
     occupation'' means--
       (i) an industry sector that has a substantial current or 
     potential impact (including through jobs that lead to 
     economic self-sufficiency and opportunities for advancement) 
     on the State, regional, or local economy, as appropriate, and 
     that contributes to the growth or stability of other 
     supporting businesses, or the growth of other industry 
     sectors; or
       (ii) an occupation that currently has or is projected to 
     have a number of positions (including positions that lead to 
     economic self-sufficiency and opportunities for advancement) 
     in an industry sector so as to have a significant impact on 
     the State, regional, or local economy, as appropriate.
       (B) Determination.--The determination of whether an 
     industry sector or occupation is in-demand under this 
     paragraph shall be made by the State board or local board, as 
     appropriate, using State and regional business and labor 
     market projections, including the use of labor market 
     information.
       (24) Individual with a barrier to employment.--The term 
     ``individual with a barrier to employment'' means a member of 
     1 or more of the following populations:
       (A) Displaced homemakers.
       (B) Low-income individuals.
       (C) Indians, Alaska Natives, and Native Hawaiians, as such 
     terms are defined in section 166.
       (D) Individuals with disabilities, including youth who are 
     individuals with disabilities.
       (E) Older individuals.
       (F) Ex-offenders.
       (G) Homeless individuals (as defined in section 41403(6) of 
     the Violence Against Women Act of 1994 (42 U.S.C. 14043e-
     2(6))), or homeless children and youths (as defined in 
     section 725(2) of the McKinney-Vento Homeless Assistance Act 
     (42 U.S.C. 11434a(2))).
       (H) Youth who are in or have aged out of the foster care 
     system.
       (I) Individuals who are English language learners, 
     individuals who have low levels of literacy, and individuals 
     facing substantial cultural barriers.
       (J) Eligible migrant and seasonal farmworkers, as defined 
     in section 167(i).
       (K) Individuals within 2 years of exhausting lifetime 
     eligibility under part A of title IV of the Social Security 
     Act (42 U.S.C. 601 et seq.).
       (L) Single parents (including single pregnant women).
       (M) Long-term unemployed individuals.
       (N) Such other groups as the Governor involved determines 
     to have barriers to employment.
       (25) Individual with a disability.--
       (A) In general.--The term ``individual with a disability'' 
     means an individual with a disability as defined in section 3 
     of the Americans with Disabilities Act of 1990 (42 U.S.C. 
     12102).
       (B) Individuals with disabilities.--The term ``individuals 
     with disabilities'' means more than 1 individual with a 
     disability.
       (26) Industry or sector partnership.--The term ``industry 
     or sector partnership'' means a workforce collaborative, 
     convened by or acting in partnership with a State board or 
     local board, that--
       (A) organizes key stakeholders in an industry cluster into 
     a working group that focuses on the shared goals and human 
     resources needs of the industry cluster and that includes, at 
     the appropriate stage of development of the partnership--
       (i) representatives of multiple businesses or other 
     employers in the industry cluster, including small and 
     medium-sized employers when practicable;
       (ii) 1 or more representatives of a recognized State labor 
     organization or central labor council, or another labor 
     representative, as appropriate; and
       (iii) 1 or more representatives of an institution of higher 
     education with, or another provider of, education or training 
     programs that support the industry cluster; and
       (B) may include representatives of--
       (i) State or local government;
       (ii) State or local economic development agencies;
       (iii) State boards or local boards, as appropriate;
       (iv) a State workforce agency or other entity providing 
     employment services;
       (v) other State or local agencies;
       (vi) business or trade associations;
       (vii) economic development organizations;
       (viii) nonprofit organizations, community-based 
     organizations, or intermediaries;
       (ix) philanthropic organizations;
       (x) industry associations; and
       (xi) other organizations, as determined to be necessary by 
     the members comprising the industry or sector partnership.
       (27) In-school youth.--The term ``in-school youth'' means a 
     youth described in section 129(a)(1)(C).
       (28) Institution of higher education.--The term 
     ``institution of higher education'' has the meaning given the 
     term in section 101, and subparagraphs (A) and (B) of section 
     102(a)(1), of the Higher Education Act of 1965 (20 U.S.C. 
     1001, 1002(a)(1)).
       (29) Integrated education and training.--The term 
     ``integrated education and training'' has the meaning given 
     the term in section 203.
       (30) Labor market area.--The term ``labor market area'' 
     means an economically integrated geographic area within which 
     individuals can reside and find employment within a 
     reasonable distance or can readily change employment without 
     changing their place of residence. Such an area shall be 
     identified in accordance with criteria used by the Bureau of 
     Labor Statistics of the Department of Labor in defining such 
     areas or similar criteria established by a Governor.
       (31) Literacy.--The term ``literacy'' has the meaning given 
     the term in section 203.
       (32) Local area.--The term ``local area'' means a local 
     workforce investment area designated under section 106, 
     subject to sections 106(c)(3)(A), 107(c)(4)(B)(i), and 
     189(i).
       (33) Local board.--The term ``local board'' means a local 
     workforce development board established under section 107, 
     subject to section 107(c)(4)(B)(i).
       (34) 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 (20 U.S.C. 7801).
       (35) Local plan.--The term ``local plan'' means a plan 
     submitted under section 108, subject to section 106(c)(3)(B).
       (36) Low-income individual.--
       (A) In general.--The term ``low-income individual'' means 
     an individual who--
       (i) receives, or in the past 6 months has received, or is a 
     member of a family that is receiving or in the past 6 months 
     has received,

[[Page 10905]]

     assistance through the supplemental nutrition assistance 
     program established under the Food and Nutrition Act of 2008 
     (7 U.S.C. 2011 et seq.), the program of block grants to 
     States for temporary assistance for needy families program 
     under part A of title IV of the Social Security Act (42 
     U.S.C. 601 et seq.), or the supplemental security income 
     program established under title XVI of the Social Security 
     Act (42 U.S.C. 1381 et seq.), or State or local income-based 
     public assistance;
       (ii) is in a family with total family income that does not 
     exceed the higher of--

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

       (iii) is a homeless individual (as defined in section 
     41403(6) of the Violence Against Women Act of 1994 (42 U.S.C. 
     14043e-2(6))), or a homeless child or youth (as defined under 
     section 725(2) of the McKinney-Vento Homeless Assistance Act 
     (42 U.S.C. 11434a(2)));
       (iv) 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.);
       (v) is a foster child on behalf of whom State or local 
     government payments are made; or
       (vi) is an individual with a disability whose own income 
     meets the income requirement of clause (ii), but who is a 
     member of a family whose income does not meet this 
     requirement.
       (B) Lower living standard income level.--The term ``lower 
     living standard income level'' means that income level 
     (adjusted for regional, metropolitan, urban, and rural 
     differences and family size) determined annually by the 
     Secretary of Labor based on the most recent lower living 
     family budget issued by the Secretary.
       (37) Nontraditional employment.--The term ``nontraditional 
     employment'' refers to occupations or fields of work, for 
     which individuals from the gender involved comprise less than 
     25 percent of the individuals employed in each such 
     occupation or field of work.
       (38) Offender.--The term ``offender'' means an adult or 
     juvenile--
       (A) who is or has been subject to any stage of the criminal 
     justice process, and for whom services under this Act may be 
     beneficial; or
       (B) who requires assistance in overcoming artificial 
     barriers to employment resulting from a record of arrest or 
     conviction.
       (39) Older individual.--The term ``older individual'' means 
     an individual age 55 or older.
       (40) One-stop center.--The term ``one-stop center'' means a 
     site described in section 121(e)(2).
       (41) One-stop operator.--The term ``one-stop operator'' 
     means 1 or more entities designated or certified under 
     section 121(d).
       (42) One-stop partner.--The term ``one-stop partner'' 
     means--
       (A) an entity described in section 121(b)(1); and
       (B) an entity described in section 121(b)(2) that is 
     participating, with the approval of the local board and chief 
     elected official, in the operation of a one-stop delivery 
     system.
       (43) One-stop partner program.--The term ``one-stop partner 
     program'' means a program or activities described in section 
     121(b) of a one-stop partner.
       (44) On-the-job training.--The term ``on-the-job training'' 
     means training by an employer that is provided to a paid 
     participant while engaged in productive work in a job that--
       (A) provides knowledge or skills essential to the full and 
     adequate performance of the job;
       (B) is made available through a program that provides 
     reimbursement to the employer of up to 50 percent of the wage 
     rate of the participant, except as provided in section 
     134(c)(3)(H), for the extraordinary costs of providing the 
     training and additional supervision related to the training; 
     and
       (C) is limited in duration as appropriate to the occupation 
     for which the participant is being trained, taking into 
     account the content of the training, the prior work 
     experience of the participant, and the service strategy of 
     the participant, as appropriate.
       (45) Outlying area.--The term ``outlying area'' means--
       (A) American Samoa, Guam, the Commonwealth of the Northern 
     Mariana Islands, and the United States Virgin Islands; and
       (B) the Republic of Palau, except during any period for 
     which the Secretary of Labor and the Secretary of Education 
     determine that a Compact of Free Association is in effect and 
     contains provisions for training and education assistance 
     prohibiting the assistance provided under this Act.
       (46) Out-of-school youth.--The term ``out-of-school youth'' 
     means a youth described in section 129(a)(1)(B).
       (47) Pay-for-performance contract strategy.--The term 
     ``pay-for-performance contract strategy'' means a procurement 
     strategy that uses pay-for-performance contracts in the 
     provision of training services described in section 134(c)(3) 
     or activities described in section 129(c)(2), and includes--
       (A) contracts, each of which shall specify a fixed amount 
     that will be paid to an eligible service provider (which may 
     include a local or national community-based organization or 
     intermediary, community college, or other training provider, 
     that is eligible under section 122 or 123, as appropriate) 
     based on the achievement of specified levels of performance 
     on the primary indicators of performance described in section 
     116(b)(2)(A) for target populations as identified by the 
     local board (including individuals with barriers to 
     employment), within a defined timetable, and which may 
     provide for bonus payments to such service provider to expand 
     capacity to provide effective training;
       (B) a strategy for independently validating the achievement 
     of the performance described in subparagraph (A); and
       (C) a description of how the State or local area will 
     reallocate funds not paid to a provider because the 
     achievement of the performance described in subparagraph (A) 
     did not occur, for further activities related to such a 
     procurement strategy, subject to section 189(g)(4).
       (48) Planning region.--The term ``planning region'' means a 
     region described in subparagraph (B) or (C) of section 
     106(a)(2), subject to section 107(c)(4)(B)(i).
       (49) Poverty line.--The term ``poverty line'' means the 
     poverty line (as defined by the Office of Management and 
     Budget, and revised annually in accordance with section 
     673(2) of the Community Services Block Grant Act (42 U.S.C. 
     9902(2))) applicable to a family of the size involved.
       (50) Public assistance.--The term ``public assistance'' 
     means Federal, State, or local government cash payments for 
     which eligibility is determined by a needs or income test.
       (51) Rapid response activity.--The term ``rapid response 
     activity'' means an activity provided by a State, or by an 
     entity designated by a State, with funds provided by the 
     State under section 134(a)(1)(A), in the case of a permanent 
     closure or mass layoff at a plant, facility, or enterprise, 
     or a natural or other disaster, that results in mass job 
     dislocation, in order to assist dislocated workers in 
     obtaining reemployment as soon as possible, with services 
     including--
       (A) the establishment of onsite contact with employers and 
     employee representatives--
       (i) immediately after the State is notified of a current or 
     projected permanent closure or mass layoff; or
       (ii) in the case of a disaster, immediately after the State 
     is made aware of mass job dislocation as a result of such 
     disaster;
       (B) the provision of information on and access to available 
     employment and training activities;
       (C) assistance in establishing a labor-management 
     committee, voluntarily agreed to by labor and management, 
     with the ability to devise and implement a strategy for 
     assessing the employment and training needs of dislocated 
     workers and obtaining services to meet such needs;
       (D) the provision of emergency assistance adapted to the 
     particular closure, layoff, or disaster; and
       (E) the provision of assistance to the local community in 
     developing a coordinated response and in obtaining access to 
     State economic development assistance.
       (52) Recognized postsecondary credential.--The term 
     ``recognized postsecondary credential'' means a credential 
     consisting of an industry-recognized certificate or 
     certification, a certificate of completion of an 
     apprenticeship, a license recognized by the State involved or 
     Federal Government, or an associate or baccalaureate degree.
       (53) Region.--The term ``region'', used without further 
     description, means a region identified under section 106(a), 
     subject to section 107(c)(4)(B)(i) and except as provided in 
     section 106(b)(1)(B)(ii).
       (54) School dropout.--The term ``school dropout'' means an 
     individual who is no longer attending any school and who has 
     not received a secondary school diploma or its recognized 
     equivalent.
       (55) Secondary school.--The term ``secondary school'' has 
     the meaning given the term in section 9101 of the Elementary 
     and Secondary Education Act of 1965 (20 U.S.C. 7801).
       (56) State.--The term ``State'' means each of the several 
     States of the United States, the District of Columbia, and 
     the Commonwealth of Puerto Rico.
       (57) State board.--The term ``State board'' means a State 
     workforce development board established under section 101.
       (58) State plan.--The term ``State plan'', used without 
     further description, means a unified State plan under section 
     102 or a combined State plan under section 103.
       (59) Supportive services.--The term ``supportive services'' 
     means services such as transportation, child care, dependent 
     care, housing, and needs-related payments, that are necessary 
     to enable an individual to participate in activities 
     authorized under this Act.
       (60) Training services.--The term ``training services'' 
     means services described in section 134(c)(3).
       (61) Unemployed individual.--The term ``unemployed 
     individual'' means an individual who is without a job and who 
     wants and is available for work. The determination of whether 
     an individual is without a job, for purposes of this 
     paragraph, shall be made in accordance with the criteria used 
     by the Bureau of Labor Statistics of the Department

[[Page 10906]]

     of Labor in defining individuals as unemployed.
       (62) Unit of general local government.--The term ``unit of 
     general local government'' means any general purpose 
     political subdivision of a State that has the power to levy 
     taxes and spend funds, as well as general corporate and 
     police powers.
       (63) Veteran; related definition.--
       (A) Veteran.--The term ``veteran'' has the meaning given 
     the term in section 101 of title 38, United States Code.
       (B) Recently separated veteran.--The term ``recently 
     separated veteran'' means any veteran who applies for 
     participation under this Act within 48 months after the 
     discharge or release from active military, naval, or air 
     service.
       (64) Vocational rehabilitation program.--The term 
     ``vocational rehabilitation program'' means a program 
     authorized under a provision covered under paragraph (13)(D).
       (65) Workforce development activity.--The term ``workforce 
     development activity'' means an activity carried out through 
     a workforce development program.
       (66) Workforce development program.--The term ``workforce 
     development program'' means a program made available through 
     a workforce development system.
       (67) Workforce development system.--The term ``workforce 
     development system'' means a system that makes available the 
     core programs, the other one-stop partner programs, and any 
     other programs providing employment and training services as 
     identified by a State board or local board.
       (68) Workforce investment activity.--The term ``workforce 
     investment activity'' means an employment and training 
     activity, and a youth workforce investment activity.
       (69) Workforce preparation activities.--The term 
     ``workforce preparation activities'' has the meaning given 
     the term in section 203.
       (70) Workplace learning advisor.--The term ``workplace 
     learning advisor'' means an individual employed by an 
     organization who has the knowledge and skills necessary to 
     advise other employees of that organization about the 
     education, skill development, job training, career counseling 
     services, and credentials, including services provided 
     through the workforce development system, required to 
     progress toward career goals of such employees in order to 
     meet employer requirements related to job openings and career 
     advancements that support economic self-sufficiency.
       (71) Youth workforce investment activity.--The term ``youth 
     workforce investment activity'' means an activity described 
     in section 129 that is carried out for eligible youth (or as 
     described in section 129(a)(3)(A)).

               TITLE I--WORKFORCE DEVELOPMENT ACTIVITIES

                      Subtitle A--System Alignment

                      CHAPTER 1--STATE PROVISIONS

     SEC. 101. STATE WORKFORCE DEVELOPMENT BOARDS.

       (a) In General.--The Governor of a State shall establish a 
     State workforce development board to carry out the functions 
     described in subsection (d).
       (b) Membership.--
       (1) In general.--The State board shall include--
       (A) the Governor;
       (B) a member of each chamber of the State legislature (to 
     the extent consistent with State law), appointed by the 
     appropriate presiding officers of such chamber; and
       (C) members appointed by the Governor, of which--
       (i) a majority shall be representatives of businesses in 
     the State, who--

       (I) are owners of businesses, chief executives or operating 
     officers of businesses, or other business executives or 
     employers with optimum policymaking or hiring authority, and 
     who, in addition, may be members of a local board described 
     in section 107(b)(2)(A)(i);
       (II) represent businesses (including small businesses), or 
     organizations representing businesses described in this 
     subclause, that provide employment opportunities that, at a 
     minimum, include high-quality, work-relevant training and 
     development in in-demand industry sectors or occupations in 
     the State; and
       (III) are appointed from among individuals nominated by 
     State business organizations and business trade associations;

       (ii) not less than 20 percent shall be representatives of 
     the workforce within the State, who--

       (I) shall include representatives of labor organizations, 
     who have been nominated by State labor federations;
       (II) shall include a representative, who shall be a member 
     of a labor organization or a training director, from a joint 
     labor-management apprenticeship program, or if no such joint 
     program exists in the State, such a representative of an 
     apprenticeship program in the State;
       (III) may include representatives of community-based 
     organizations that have demonstrated experience and expertise 
     in addressing the employment, training, or education needs of 
     individuals with barriers to employment, including 
     organizations that serve veterans or that provide or support 
     competitive, integrated employment for individuals with 
     disabilities; and
       (IV) may include representatives of organizations that have 
     demonstrated experience and expertise in addressing the 
     employment, training, or education needs of eligible youth, 
     including representatives of organizations that serve out-of-
     school youth; and

       (iii) the balance--

       (I) shall include representatives of government, who--

       (aa) shall include the lead State officials with primary 
     responsibility for the core programs; and
       (bb) shall include chief elected officials (collectively 
     representing both cities and counties, where appropriate); 
     and

       (II) may include such other representatives and officials 
     as the Governor may designate, such as--

       (aa) the State agency officials from agencies that are one-
     stop partners not specified in subclause (I) (including 
     additional one-stop partners whose programs are covered by 
     the State plan, if any);
       (bb) State agency officials responsible for economic 
     development or juvenile justice programs in the State;
       (cc) individuals who represent an Indian tribe or tribal 
     organization, as such terms are defined in section 166(b); 
     and
       (dd) State agency officials responsible for education 
     programs in the State, including chief executive officers of 
     community colleges and other institutions of higher 
     education.
       (2) Diverse and distinct representation.--The members of 
     the State board shall represent diverse geographic areas of 
     the State, including urban, rural, and suburban areas.
       (3) No representation of multiple categories.--No person 
     shall serve as a member for more than 1 of--
       (A) the category described in paragraph (1)(C)(i); or
       (B) 1 category described in a subclause of clause (ii) or 
     (iii) of paragraph (1)(C).
       (c) Chairperson.--The Governor shall select a chairperson 
     for the State board from among the representatives described 
     in subsection (b)(1)(C)(i).
       (d) Functions.--The State board shall assist the Governor 
     in--
       (1) the development, implementation, and modification of 
     the State plan;
       (2) consistent with paragraph (1), the review of statewide 
     policies, of statewide programs, and of recommendations on 
     actions that should be taken by the State to align workforce 
     development programs in the State in a manner that supports a 
     comprehensive and streamlined workforce development system in 
     the State, including the review and provision of comments on 
     the State plans, if any, for programs and activities of one-
     stop partners that are not core programs;
       (3) the development and continuous improvement of the 
     workforce development system in the State, including--
       (A) the identification of barriers and means for removing 
     barriers to better coordinate, align, and avoid duplication 
     among the programs and activities carried out through the 
     system;
       (B) the development of strategies to support the use of 
     career pathways for the purpose of providing individuals, 
     including low-skilled adults, youth, and individuals with 
     barriers to employment (including individuals with 
     disabilities), with workforce investment activities, 
     education, and supportive services to enter or retain 
     employment;
       (C) the development of strategies for providing effective 
     outreach to and improved access for individuals and employers 
     who could benefit from services provided through the 
     workforce development system;
       (D) the development and expansion of strategies for meeting 
     the needs of employers, workers, and jobseekers, particularly 
     through industry or sector partnerships related to in-demand 
     industry sectors and occupations;
       (E) the identification of regions, including planning 
     regions, for the purposes of section 106(a), and the 
     designation of local areas under section 106, after 
     consultation with local boards and chief elected officials;
       (F) the development and continuous improvement of the one-
     stop delivery system in local areas, including providing 
     assistance to local boards, one-stop operators, one-stop 
     partners, and providers with planning and delivering 
     services, including training services and supportive 
     services, to support effective delivery of services to 
     workers, jobseekers, and employers; and
       (G) the development of strategies to support staff training 
     and awareness across programs supported under the workforce 
     development system;
       (4) the development and updating of comprehensive State 
     performance accountability measures, including State adjusted 
     levels of performance, to assess the effectiveness of the 
     core programs in the State as required under section 116(b);
       (5) the identification and dissemination of information on 
     best practices, including best practices for--
       (A) the effective operation of one-stop centers, relating 
     to the use of business outreach, partnerships, and service 
     delivery strategies, including strategies for serving 
     individuals with barriers to employment;

[[Page 10907]]

       (B) the development of effective local boards, which may 
     include information on factors that contribute to enabling 
     local boards to exceed negotiated local levels of 
     performance, sustain fiscal integrity, and achieve other 
     measures of effectiveness; and
       (C) effective training programs that respond to real-time 
     labor market analysis, that effectively use direct assessment 
     and prior learning assessment to measure an individual's 
     prior knowledge, skills, competencies, and experiences, and 
     that evaluate such skills, and competencies for adaptability, 
     to support efficient placement into employment or career 
     pathways;
       (6) the development and review of statewide policies 
     affecting the coordinated provision of services through the 
     State's one-stop delivery system described in section 121(e), 
     including the development of--
       (A) objective criteria and procedures for use by local 
     boards in assessing the effectiveness and continuous 
     improvement of one-stop centers described in such section;
       (B) guidance for the allocation of one-stop center 
     infrastructure funds under section 121(h); and
       (C) policies relating to the appropriate roles and 
     contributions of entities carrying out one-stop partner 
     programs within the one-stop delivery system, including 
     approaches to facilitating equitable and efficient cost 
     allocation in such system;
       (7) the development of strategies for technological 
     improvements to facilitate access to, and improve the quality 
     of, services and activities provided through the one-stop 
     delivery system, including such improvements to--
       (A) enhance digital literacy skills (as defined in section 
     202 of the Museum and Library Services Act (20 U.S.C. 9101); 
     referred to in this Act as ``digital literacy skills'');
       (B) accelerate the acquisition of skills and recognized 
     postsecondary credentials by participants;
       (C) strengthen the professional development of providers 
     and workforce professionals; and
       (D) ensure such technology is accessible to individuals 
     with disabilities and individuals residing in remote areas;
       (8) the development of strategies for aligning technology 
     and data systems across one-stop partner programs to enhance 
     service delivery and improve efficiencies in reporting on 
     performance accountability measures (including the design and 
     implementation of common intake, data collection, case 
     management information, and performance accountability 
     measurement and reporting processes and the incorporation of 
     local input into such design and implementation, to improve 
     coordination of services across one-stop partner programs);
       (9) the development of allocation formulas for the 
     distribution of funds for employment and training activities 
     for adults, and youth workforce investment activities, to 
     local areas as permitted under sections 128(b)(3) and 
     133(b)(3);
       (10) the preparation of the annual reports described in 
     paragraphs (1) and (2) of section 116(d);
       (11) the development of 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)); and
       (12) the development of such other policies as may promote 
     statewide objectives for, and enhance the performance of, the 
     workforce development system in the State.
       (e) Alternative Entity.--
       (1) In general.--For the purposes of complying with 
     subsections (a), (b), and (c), a State may use any State 
     entity (including a State council, State workforce 
     development board (within the meaning of the Workforce 
     Investment Act of 1998, as in effect on the day before the 
     date of enactment of this Act), combination of regional 
     workforce development boards, or similar entity) that--
       (A) was in existence on the day before the date of 
     enactment of the Workforce Investment Act of 1998;
       (B) is substantially similar to the State board described 
     in subsections (a) through (c); and
       (C) includes representatives of business in the State and 
     representatives of labor organizations in the State.
       (2) References.--A reference in this Act, or a core program 
     provision that is not in this Act, to a State board shall be 
     considered to include such an entity.
       (f) Conflict of Interest.--A member of a State board may 
     not--
       (1) vote on a matter under consideration by the State 
     board--
       (A) regarding the provision of services by such member (or 
     by an entity that such member represents); or
       (B) that would provide direct financial benefit to such 
     member or the immediate family of such member; or
       (2) engage in any other activity determined by the Governor 
     to constitute a conflict of interest as specified in the 
     State plan.
       (g) Sunshine Provision.--The State board shall make 
     available to the public, on a regular basis through 
     electronic means and open meetings, information regarding the 
     activities of the State board, including information 
     regarding the State plan, or a modification to the State 
     plan, prior to submission of the plan or modification of the 
     plan, respectively, information regarding membership, and, on 
     request, minutes of formal meetings of the State board.
       (h) Authority to Hire Staff.--
       (1) In general.--The State board may hire a director and 
     other staff to assist in carrying out the functions described 
     in subsection (d) using funds available as described in 
     section 129(b)(3) or 134(a)(3)(B)(i).
       (2) Qualifications.--The State board shall establish and 
     apply a set of objective qualifications for the position of 
     director, that ensures that the individual selected has the 
     requisite knowledge, skills, and abilities, to meet 
     identified benchmarks and to assist in effectively carrying 
     out the functions of the State board.
       (3) Limitation on rate.--The director and staff described 
     in paragraph (1) shall be subject to the limitations on the 
     payment of salary and bonuses described in section 194(15).

     SEC. 102. UNIFIED STATE PLAN.

       (a) Plan.--For a State to be eligible to receive allotments 
     for the core programs, the Governor shall submit to the 
     Secretary of Labor for the approval process described under 
     subsection (c)(2), a unified State plan. The unified State 
     plan shall outline a 4-year strategy for the core programs of 
     the State and meet the requirements of this section.
       (b) Contents.--
       (1) Strategic planning elements.--The unified State plan 
     shall include strategic planning elements consisting of a 
     strategic vision and goals for preparing an educated and 
     skilled workforce, that include--
       (A) an analysis of the economic conditions in the State, 
     including--
       (i) existing and emerging in-demand industry sectors and 
     occupations; and
       (ii) the employment needs of employers, including a 
     description of the knowledge, skills, and abilities, needed 
     in those industries and occupations;
       (B) an analysis of the current workforce, employment and 
     unemployment data, labor market trends, and the educational 
     and skill levels of the workforce, including individuals with 
     barriers to employment (including individuals with 
     disabilities), in the State;
       (C) an analysis of the workforce development activities 
     (including education and training) in the State, including an 
     analysis of the strengths and weaknesses of such activities, 
     and the capacity of State entities to provide such 
     activities, in order to address the identified education and 
     skill needs of the workforce and the employment needs of 
     employers in the State;
       (D) a description of the State's strategic vision and goals 
     for preparing an educated and skilled workforce (including 
     preparing youth and individuals with barriers to employment) 
     and for meeting the skilled workforce needs of employers, 
     including goals relating to performance accountability 
     measures based on primary indicators of performance described 
     in section 116(b)(2)(A), in order to support economic growth 
     and economic self-sufficiency, and of how the State will 
     assess the overall effectiveness of the workforce investment 
     system in the State; and
       (E) taking into account analyses described in subparagraphs 
     (A) through (C), a strategy for aligning the core programs, 
     as well as other resources available to the State, to achieve 
     the strategic vision and goals described in subparagraph (D).
       (2) Operational planning elements.--
       (A) In general.--The unified State plan shall include the 
     operational planning elements contained in this paragraph, 
     which shall support the strategy described in paragraph 
     (1)(E), including a description of how the State board will 
     implement the functions under section 101(d).
       (B) Implementation of state strategy.--The unified State 
     plan shall describe how the lead State agency with 
     responsibility for the administration of a core program will 
     implement the strategy described in paragraph (1)(E), 
     including a description of--
       (i) the activities that will be funded by the entities 
     carrying out the respective core programs to implement the 
     strategy and how such activities will be aligned across the 
     programs and among the entities administering the programs, 
     including using co-enrollment and other strategies;
       (ii) how the activities described in clause (i) will be 
     aligned with activities provided under employment, training, 
     education, including career and technical education, and 
     human services programs not covered by the plan, as 
     appropriate, assuring coordination of, and avoiding 
     duplication among, the activities referred to in this clause;
       (iii) how the entities carrying out the respective core 
     programs will coordinate activities and provide 
     comprehensive, high-quality services including supportive 
     services, to individuals;
       (iv) how the State's strategy will engage the State's 
     community colleges and area career and technical education 
     schools as partners in the workforce development system and 
     enable the State to leverage other Federal, State, and local 
     investments that have enhanced access to workforce 
     development programs at those institutions; and
       (v) how the activities described in clause (i) will be 
     coordinated with economic development strategies and 
     activities in the State.
       (C) State operating systems and policies.--The unified 
     State plan shall describe

[[Page 10908]]

     the State operating systems and policies that will support 
     the implementation of the strategy described in paragraph 
     (1)(E), including a description of--
       (i) the State board, including the activities to assist 
     members of the State board and the staff of such board in 
     carrying out the functions of the State board effectively 
     (but funds for such activities may not be used for long-
     distance travel expenses for training or development 
     activities available locally or regionally);
       (ii)(I) how the respective core programs will be assessed 
     each year, including an assessment of the quality, 
     effectiveness, and improvement of programs (analyzed by local 
     area, or by provider), based on State performance 
     accountability measures described in section 116(b); and
       (II) how other one-stop partner programs will be assessed 
     each year;
       (iii) the results of an assessment of the effectiveness of 
     the core programs and other one-stop partner programs during 
     the preceding 2-year period;
       (iv) the methods and factors the State will use in 
     distributing funds under the core programs, in accordance 
     with the provisions authorizing such distributions;
       (v)(I) how the lead State agencies with responsibility for 
     the administration of the core programs will align and 
     integrate available workforce and education data on core 
     programs, unemployment insurance programs, and education 
     through postsecondary education;
       (II) how such agencies will use the workforce development 
     system to assess the progress of participants that are 
     exiting from core programs in entering, persisting in, and 
     completing postsecondary education, or entering or remaining 
     in employment; and
       (III) the privacy safeguards incorporated in such system, 
     including safeguards required by section 444 of the General 
     Education Provisions Act (20 U.S.C. 1232g) and other 
     applicable Federal laws;
       (vi) how the State will implement the priority of service 
     provisions for veterans in accordance with the requirements 
     of section 4215 of title 38, United States Code;
       (vii) how the one-stop delivery system, including one-stop 
     operators and the one-stop partners, will comply with section 
     188, if applicable, and applicable provisions of the 
     Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et 
     seq.), regarding the physical and programmatic accessibility 
     of facilities, programs, services, technology, and materials, 
     for individuals with disabilities, including complying 
     through providing staff training and support for addressing 
     the needs of individuals with disabilities; and
       (viii) such other operational planning elements as the 
     Secretary of Labor or the Secretary of Education, as 
     appropriate, determines to be necessary for effective State 
     operating systems and policies.
       (D) Program-specific requirements.--The unified State plan 
     shall include--
       (i) with respect to activities carried out under subtitle 
     B, a description of--

       (I) State policies or guidance, for the statewide workforce 
     development system and for use of State funds for workforce 
     investment activities;
       (II) the local areas designated in the State, including the 
     process used for designating local areas, and the process 
     used for identifying any planning regions under section 
     106(a), including a description of how the State consulted 
     with the local boards and chief elected officials in 
     determining the planning regions;
       (III) the appeals process referred to in section 106(b)(5), 
     relating to designation of local areas;
       (IV) the appeals process referred to in section 
     121(h)(2)(E), relating to determinations for infrastructure 
     funding; and
       (V) with respect to youth workforce investment activities 
     authorized in section 129, information identifying the 
     criteria to be used by local boards in awarding grants for 
     youth workforce investment activities and describing how the 
     local boards will take into consideration the ability of the 
     providers to meet performance accountability measures based 
     on primary indicators of performance for the youth program as 
     described in section 116(b)(2)(A)(ii) in awarding such 
     grants;

       (ii) with respect to activities carried out under title II, 
     a description of--

       (I) how the eligible agency will, if applicable, align 
     content standards for adult education with State-adopted 
     challenging academic content standards, as adopted under 
     section 1111(b)(1) of the Elementary and Secondary Education 
     Act of 1965 (20 U.S.C. 6311(b)(1));
       (II) how the State will fund local activities using 
     considerations specified in section 231(e) for--

       (aa) activities under section 231(b);
       (bb) programs for corrections education under section 225;
       (cc) programs for integrated English literacy and civics 
     education under section 243; and
       (dd) integrated education and training;

       (III) how the State will use the funds to carry out 
     activities under section 223;
       (IV) how the State will use the funds to carry out 
     activities under section 243;
       (V) how the eligible agency will assess the quality of 
     providers of adult education and literacy activities under 
     title II and take actions to improve such quality, including 
     providing the activities described in section 223(a)(1)(B);

       (iii) with respect to programs carried out 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), the information described in section 101(a) of that Act 
     (29 U.S.C. 721(a)); and
       (iv) information on such additional specific requirements 
     for a program referenced in any of clauses (i) through (iii) 
     or the Wagner-Peyser Act (29 U.S.C. 49 et seq.) as the 
     Secretary of Labor determines to be necessary to administer 
     that program but cannot reasonably be applied across all such 
     programs.
       (E) Assurances.--The unified State plan shall include 
     assurances--
       (i) that the State has established a policy identifying 
     circumstances that may present a conflict of interest for a 
     State board or local board member, or the entity or class of 
     officials that the member represents, and procedures to 
     resolve such conflicts;
       (ii) that the State has established a policy to provide to 
     the public (including individuals with disabilities) access 
     to meetings of State boards and local boards, and information 
     regarding activities of State boards and local boards, such 
     as data on board membership and minutes;
       (iii)(I) that the lead State agencies with responsibility 
     for the administration of core programs reviewed and 
     commented on the appropriate operational planning elements of 
     the unified State plan, and approved the elements as serving 
     the needs of the populations served by such programs; and
       (II) that the State obtained input into the development of 
     the unified State plan and provided an opportunity for 
     comment on the plan by representatives of local boards and 
     chief elected officials, businesses, labor organizations, 
     institutions of higher education, other primary stakeholders, 
     and the general public and that the unified State plan is 
     available and accessible to the general public;
       (iv) that the State has established, in accordance with 
     section 116(i), fiscal control and fund accounting procedures 
     that may be necessary to ensure the proper disbursement of, 
     and accounting for, funds paid to the State through 
     allotments made for adult, dislocated worker, and youth 
     programs to carry out workforce investment activities under 
     chapters 2 and 3 of subtitle B;
       (v) that the State has taken appropriate action to secure 
     compliance with uniform administrative requirements in this 
     Act, including that the State will annually monitor local 
     areas to ensure compliance and otherwise take appropriate 
     action to secure compliance with the uniform administrative 
     requirements under section 184(a)(3);
       (vi) that the State has taken the appropriate action to be 
     in compliance with section 188, if applicable;
       (vii) that the Federal funds received to carry out a core 
     program will not be expended for any purpose other than for 
     activities authorized with respect to such funds under that 
     core program;
       (viii) that the eligible agency under title II will--

       (I) expend the funds appropriated to carry out that title 
     only in a manner consistent with fiscal requirements under 
     section 241(a) (regarding supplement and not supplant 
     provisions); and
       (II) ensure that there is at least 1 eligible provider 
     serving each local area;

       (ix) that the State will pay an appropriate share (as 
     defined by the State board) of the costs of carrying out 
     section 116, from funds made available through each of the 
     core programs; and
       (x) regarding such other matters as the Secretary of Labor 
     or the Secretary of Education, as appropriate, determines to 
     be necessary for the administration of the core programs.
       (3) Existing analysis.--As appropriate, a State may use an 
     existing analysis in order to carry out the requirements of 
     paragraph (1) concerning an analysis.
       (c) Plan Submission and Approval.--
       (1) Submission.--
       (A) Initial plan.--The initial unified State plan under 
     this section (after the date of enactment of the Workforce 
     Innovation and Opportunity Act) shall be submitted to the 
     Secretary of Labor not later than 120 days prior to the 
     commencement of the second full program year after the date 
     of enactment of this Act.
       (B) Subsequent plans.--Except as provided in subparagraph 
     (A), a unified State plan shall be submitted to the Secretary 
     of Labor not later than 120 days prior to the end of the 4-
     year period covered by the preceding unified State plan.
       (2) Submission and approval.--
       (A) Submission.--In approving a unified State plan under 
     this section, the Secretary shall submit the portion of the 
     unified State plan covering a program or activity to the head 
     of the Federal agency that administers the program or 
     activity for the approval of such portion by such head.
       (B) Approval.--A unified State plan shall be subject to the 
     approval of both the Secretary of Labor and the Secretary of 
     Education, after approval of the Commissioner of the 
     Rehabilitation Services Administration for the portion of the 
     plan described in

[[Page 10909]]

     subsection (b)(2)(D)(iii). The plan shall be considered to be 
     approved at the end of the 90-day period beginning on the day 
     the plan is submitted, unless the Secretary of Labor or the 
     Secretary of Education makes a written determination, during 
     the 90-day period, that the plan is inconsistent with the 
     provisions of this section or the provisions authorizing the 
     core programs, as appropriate.
       (3) Modifications.--
       (A) Modifications.--At the end of the first 2-year period 
     of any 4-year unified State plan, the State board shall 
     review the unified State plan, and the Governor shall submit 
     modifications to the plan to reflect changes in labor market 
     and economic conditions or in other factors affecting the 
     implementation of the unified State plan.
       (B) Approval.--A modified unified State plan submitted for 
     the review required under subparagraph (A) shall be subject 
     to the approval requirements described in paragraph (2). A 
     Governor may submit a modified unified State plan at such 
     other times as the Governor determines to be appropriate, and 
     such modified unified State plan shall also be subject to the 
     approval requirements described in paragraph (2).
       (4) Early implementers.--The Secretary of Labor, in 
     conjunction with the Secretary of Education, shall establish 
     a process for approving and may approve unified State plans 
     that meet the requirements of this section and are submitted 
     to cover periods commencing prior to the second full program 
     year described in paragraph (1)(A).

     SEC. 103. COMBINED STATE PLAN.

       (a) In General.--
       (1) Authority to submit plan.--A State may develop and 
     submit to the appropriate Secretaries a combined State plan 
     for the core programs and 1 or more of the programs and 
     activities described in paragraph (2) in lieu of submitting 2 
     or more plans, for the programs and activities and the core 
     programs.
       (2) Programs.--The programs and activities referred to in 
     paragraph (1) are as follows:
       (A) 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.).
       (B) Programs authorized under part A of title IV of the 
     Social Security Act (42 U.S.C. 601 et seq.).
       (C) Programs authorized under section 6(d)(4) of the Food 
     and Nutrition Act of 2008 (7 U.S.C. 2015(d)(4)).
       (D) Work programs authorized under section 6(o) of the Food 
     and Nutrition Act of 2008 (7 U.S.C. 2015(o)).
       (E) Activities authorized under chapter 2 of title II of 
     the Trade Act of 1974 (19 U.S.C. 2271 et seq.).
       (F) Activities authorized under chapter 41 of title 38, 
     United States Code.
       (G) Programs authorized under State unemployment 
     compensation laws (in accordance with applicable Federal 
     law).
       (H) Programs authorized under title V of the Older 
     Americans Act of 1965 (42 U.S.C. 3056 et seq.).
       (I) Employment and training activities carried out by the 
     Department of Housing and Urban Development.
       (J) Employment and training activities carried out under 
     the Community Services Block Grant Act (42 U.S.C. 9901 et 
     seq.).
       (K) Programs authorized under section 212 of the Second 
     Chance Act of 2007 (42 U.S.C. 17532).
       (b) Requirements.--
       (1) In general.--The portion of a combined plan covering 
     the core programs shall be subject to the requirements of 
     section 102 (including section 102(c)(3)). The portion of 
     such plan covering a program or activity described in 
     subsection (a)(2) shall be subject to the requirements, if 
     any, applicable to a plan or application for assistance for 
     that program or activity, under the Federal law authorizing 
     the program or activity. At the election of the State, 
     section 102(c)(3) may apply to that portion.
       (2) Additional submission not required.--A State that 
     submits a combined plan that is approved under subsection (c) 
     shall not be required to submit any other plan or application 
     in order to receive Federal funds to carry out the core 
     programs or the program or activities described in subsection 
     (a)(2) that are covered by the combined plan.
       (3) Coordination.--A combined plan shall include--
       (A) a description of the methods used for joint planning 
     and coordination of the core programs and the other programs 
     and activities covered by the combined plan; and
       (B) an assurance that the methods included an opportunity 
     for the entities responsible for planning or administering 
     the core programs and the other programs and activities to 
     review and comment on all portions of the combined plan.
       (c) Approval by the Appropriate Secretaries.--
       (1) Jurisdiction.--The appropriate Secretary shall have the 
     authority to approve the corresponding portion of a combined 
     plan as described in subsection (d). On the approval of the 
     appropriate Secretary, that portion of the combined plan, 
     covering a program or activity, shall be implemented by the 
     State pursuant to that portion of the combined plan, and the 
     Federal law authorizing the program or activity.
       (2) Approval of core programs.--No portion of the plan 
     relating to a core program shall be implemented until the 
     appropriate Secretary approves the corresponding portions of 
     the plan for all core programs.
       (3) Timing of approval.--
       (A) In general.--Except as provided in subparagraphs (B) 
     and (C), a portion of the combined State plan covering the 
     core programs or a program or activity described in 
     subsection (a)(2) shall be considered to be approved by the 
     appropriate Secretary at the end of the 90-day period 
     beginning on the day the plan is submitted.
       (B) Plan approved by 3 or more appropriate secretaries.--If 
     an appropriate Secretary other than the Secretary of Labor or 
     the Secretary of Education has authority to approve a portion 
     of a combined plan, that portion of the combined plan shall 
     be considered to be approved by the appropriate Secretary at 
     the end of the 120-day period beginning on the day the plan 
     is submitted.
       (C) Disapproval.--The portion shall not be considered to be 
     approved if the appropriate Secretary makes a written 
     determination, during the 90-day period (or the 120-day 
     period, for an appropriate Secretary covered by subparagraph 
     (B)), that the portion is not consistent with the 
     requirements of the Federal law authorizing or applicable to 
     the program or activity involved, including the criteria for 
     approval of a plan or application, if any, under such law, or 
     the plan is not consistent with the requirements of this 
     section.
       (4) Special rule.--In paragraph (3), the term ``criteria 
     for approval of a plan or application'', with respect to a 
     State and a core program or a program under the Carl D. 
     Perkins Career and Technical Education Act of 2006 (20 U.S.C. 
     2301 et seq.), includes a requirement for agreement between 
     the State and the appropriate Secretaries regarding State 
     performance measures or State performance accountability 
     measures, as the case may be, including levels of 
     performance.
       (d) Appropriate Secretary.--In this section, the term 
     ``appropriate Secretary'' means--
       (1) with respect to the portion of a combined plan relating 
     to any of the core programs (including a description, and an 
     assurance concerning that program, specified in subsection 
     (b)(3)), the Secretary of Labor and the Secretary of 
     Education; and
       (2) with respect to the portion of a combined plan relating 
     to a program or activity described in subsection (a)(2) 
     (including a description, and an assurance concerning that 
     program or activity, specified in subsection (b)(3)), the 
     head of the Federal agency who exercises plan or application 
     approval authority for the program or activity under the 
     Federal law authorizing the program or activity, or, if there 
     are no planning or application requirements for such program 
     or activity, exercises administrative authority over the 
     program or activity under that Federal law.

                      CHAPTER 2--LOCAL PROVISIONS

     SEC. 106. WORKFORCE DEVELOPMENT AREAS.

       (a) Regions.--
       (1) Identification.--Before the second full program year 
     after the date of enactment of this Act, in order for a State 
     to receive an allotment under section 127(b) or 132(b) and as 
     part of the process for developing the State plan, a State 
     shall identify regions in the State after consultation with 
     the local boards and chief elected officials in the local 
     areas and consistent with the considerations described in 
     subsection (b)(1)(B).
       (2) Types of regions.--For purposes of this Act, the State 
     shall identify--
       (A) which regions are comprised of 1 local area that is 
     aligned with the region;
       (B) which regions are comprised of 2 or more local areas 
     that are (collectively) aligned with the region (referred to 
     as planning regions, consistent with section 3); and
       (C) which, of the regions described in subparagraph (B), 
     are interstate areas contained within 2 or more States, and 
     consist of labor market areas, economic development areas, or 
     other appropriate contiguous subareas of those States.
       (b) Local Areas.--
       (1) In general.--
       (A) Process.--Except as provided in subsection (d), and 
     consistent with paragraphs (2) and (3), in order for a State 
     to receive an allotment under section 127(b) or 132(b), the 
     Governor of the State shall designate local workforce 
     development areas within the State--
       (i) through consultation with the State board; and
       (ii) after consultation with chief elected officials and 
     local boards, and after consideration of comments received 
     through the public comment process as described in section 
     102(b)(2)(E)(iii)(II).
       (B) Considerations.--The Governor shall designate local 
     areas (except for those local areas described in paragraphs 
     (2) and (3)) based on considerations consisting of the extent 
     to which the areas--
       (i) are consistent with labor market areas in the State;
       (ii) are consistent with regional economic development 
     areas in the State; and
       (iii) have available the Federal and non-Federal resources 
     necessary to effectively administer activities under subtitle 
     B and

[[Page 10910]]

     other applicable provisions of this Act, including whether 
     the areas have the appropriate education and training 
     providers, such as institutions of higher education and area 
     career and technical education schools.
       (2) Initial designation.--During the first 2 full program 
     years following the date of enactment of this Act, the 
     Governor shall approve a request for initial designation as a 
     local area from any area that was designated as a local area 
     for purposes of the Workforce Investment Act of 1998 for the 
     2-year period preceding the date of enactment of this Act, 
     performed successfully, and sustained fiscal integrity.
       (3) Subsequent designation.--After the period for which a 
     local area is initially designated under paragraph (2), the 
     Governor shall approve a request for subsequent designation 
     as a local area from such local area, if such area--
       (A) performed successfully;
       (B) sustained fiscal integrity; and
       (C) in the case of a local area in a planning region, met 
     the requirements described in subsection (c)(1).
       (4) Designation on recommendation of state board.--The 
     Governor may approve a request from any unit of general local 
     government (including a combination of such units) for 
     designation of an area as a local area if the State board 
     determines, based on the considerations described in 
     paragraph (1)(B), and recommends to the Governor, that such 
     area should be so designated.
       (5) Appeals.--A unit of general local government (including 
     a combination of such units) or grant recipient that requests 
     but is not granted designation of an area as a local area 
     under paragraph (2) or (3) may submit an appeal to the State 
     board under an appeal process established in the State plan. 
     If the appeal does not result in such a designation, the 
     Secretary of Labor, after receiving a request for review from 
     the unit or grant recipient and on determining that the unit 
     or grant recipient was not accorded procedural rights under 
     the appeals process described in the State plan, as specified 
     in section 102(b)(2)(D)(i)(III), or that the area meets the 
     requirements of paragraph (2) or (3), may require that the 
     area be designated as a local area under such paragraph.
       (6) Redesignation assistance.--On the request of all of the 
     local areas in a planning region, the State shall provide 
     funding from funds made available under sections 128(a) and 
     133(a)(1) to assist the local areas in carrying out 
     activities to facilitate the redesignation of the local areas 
     to a single local area.
       (c) Regional Coordination.--
       (1) Regional planning.--The local boards and chief elected 
     officials in each planning region described in subparagraph 
     (B) or (C) of subsection (a)(2) shall engage in a regional 
     planning process that results in--
       (A) the preparation of a regional plan, as described in 
     paragraph (2);
       (B) the establishment of regional service strategies, 
     including use of cooperative service delivery agreements;
       (C) the development and implementation of sector 
     initiatives for in-demand industry sectors or occupations for 
     the region;
       (D) the collection and analysis of regional labor market 
     data (in conjunction with the State);
       (E) the establishment of administrative cost arrangements, 
     including the pooling of funds for administrative costs, as 
     appropriate, for the region;
       (F) the coordination of transportation and other supportive 
     services, as appropriate, for the region;
       (G) the coordination of services with regional economic 
     development services and providers; and
       (H) the establishment of an agreement concerning how the 
     planning region will collectively negotiate and reach 
     agreement with Governor on local levels of performance for, 
     and report on, the performance accountability measures 
     described in section 116(c), for local areas or the planning 
     region.
       (2) Regional plans.--The State, after consultation with 
     local boards and chief elected officials for the planning 
     regions, shall require the local boards and chief elected 
     officials within a planning region to prepare, submit, and 
     obtain approval of a single regional plan that includes a 
     description of the activities described in paragraph (1) and 
     that incorporates local plans for each of the local areas in 
     the planning region. The State shall provide technical 
     assistance and labor market data, as requested by local 
     areas, to assist with such regional planning and subsequent 
     service delivery efforts.
       (3) References.--In this Act, and the core program 
     provisions that are not in this Act:
       (A) Local area.--Except as provided in section 101(d)(9), 
     this section, paragraph (1)(B) or (4) of section 107(c), or 
     section 107(d)(12)(B), or in any text that provides an 
     accompanying provision specifically for a planning region, 
     the term ``local area'' in a provision includes a reference 
     to a planning region for purposes of implementation of that 
     provision by the corresponding local areas in the region.
       (B) Local plan.--Except as provided in this subsection, the 
     term ``local plan'' includes a reference to the portion of a 
     regional plan developed with respect to the corresponding 
     local area within the region, and any regionwide provision of 
     that plan that impacts or relates to the local area.
       (d) Single State Local Areas.--
       (1) Continuation of previous designation.--The Governor of 
     any State that was a single State local area for purposes of 
     title I of the Workforce Investment Act of 1998, as in effect 
     on July 1, 2013, may designate the State as a single State 
     local area for purposes of this title. In the case of such 
     designation, the Governor shall identify the State as a local 
     area in the State plan.
       (2) Effect on local plan and local functions.--In any case 
     in which a State is designated as a local area pursuant to 
     this subsection, the local plan prepared under section 108 
     for the area shall be submitted for approval as part of the 
     State plan. In such a State, the State board shall carry out 
     the functions of a local board, as specified in this Act or 
     the provisions authorizing a core program, but the State 
     shall not be required to meet and report on a set of local 
     performance accountability measures.
       (e) Definitions.--For purposes of this section:
       (1) Performed successfully.--The term ``performed 
     successfully'', used with respect to a local area, means the 
     local area met or exceeded the adjusted levels of performance 
     for primary indicators of performance described in section 
     116(b)(2)(A) (or, if applicable, core indicators of 
     performance described in section 136(b)(2)(A) of the 
     Workforce Investment Act of 1998, as in effect the day before 
     the date of enactment of this Act) for each of the last 2 
     consecutive years for which data are available preceding the 
     determination of performance under this paragraph.
       (2) Sustained fiscal integrity.--The term ``sustained 
     fiscal integrity'', used with respect to a local area, means 
     that the Secretary has not made a formal determination, 
     during either of the last 2 consecutive years preceding the 
     determination regarding such integrity, that either the grant 
     recipient or the administrative entity of the area 
     misexpended funds provided under subtitle B (or, if 
     applicable, title I of the Workforce Investment Act of 1998 
     as in effect prior to the effective date of such subtitle B) 
     due to willful disregard of the requirements of the provision 
     involved, gross negligence, or failure to comply with 
     accepted standards of administration.

     SEC. 107. LOCAL WORKFORCE DEVELOPMENT BOARDS.

       (a) Establishment.--Except as provided in subsection 
     (c)(2)(A), there shall be established, and certified by the 
     Governor of the State, a local workforce development board in 
     each local area of a State to carry out the functions 
     described in subsection (d) (and any functions specified for 
     the local board under this Act or the provisions establishing 
     a core program) for such area.
       (b) Membership.--
       (1) State criteria.--The Governor, in partnership with the 
     State board, shall establish criteria for use by chief 
     elected officials in the local areas for appointment of 
     members of the local boards in such local areas in accordance 
     with the requirements of paragraph (2).
       (2) Composition.--Such criteria shall require that, at a 
     minimum--
       (A) a majority of the members of each local board shall be 
     representatives of business in the local area, who--
       (i) are owners of businesses, chief executives or operating 
     officers of businesses, or other business executives or 
     employers with optimum policymaking or hiring authority;
       (ii) represent businesses, including small businesses, or 
     organizations representing businesses described in this 
     clause, that provide employment opportunities that, at a 
     minimum, include high-quality, work-relevant training and 
     development in in-demand industry sectors or occupations in 
     the local area; and
       (iii) are appointed from among individuals nominated by 
     local business organizations and business trade associations;
       (B) not less than 20 percent of the members of each local 
     board shall be representatives of the workforce within the 
     local area, who--
       (i) shall include representatives of labor organizations 
     (for a local area in which employees are represented by labor 
     organizations), who have been nominated by local labor 
     federations, or (for a local area in which no employees are 
     represented by such organizations) other representatives of 
     employees;
       (ii) shall include a representative, who shall be a member 
     of a labor organization or a training director, from a joint 
     labor-management apprenticeship program, or if no such joint 
     program exists in the area, such a representative of an 
     apprenticeship program in the area, if such a program exists;
       (iii) may include representatives of community-based 
     organizations that have demonstrated experience and expertise 
     in addressing the employment needs of individuals with 
     barriers to employment, including organizations that serve 
     veterans or that provide or support competitive integrated 
     employment for individuals with disabilities; and
       (iv) may include representatives of organizations that have 
     demonstrated experience and expertise in addressing the 
     employment, training, or education needs of eligible youth, 
     including representatives of organizations that serve out-of-
     school youth;

[[Page 10911]]

       (C) each local board shall include representatives of 
     entities administering education and training activities in 
     the local area, who--
       (i) shall include a representative of eligible providers 
     administering adult education and literacy activities under 
     title II;
       (ii) shall include a representative of institutions of 
     higher education providing workforce investment activities 
     (including community colleges);
       (iii) may include representatives of local educational 
     agencies, and of community-based organizations with 
     demonstrated experience and expertise in addressing the 
     education or training needs of individuals with barriers to 
     employment;
       (D) each local board shall include representatives of 
     governmental and economic and community development entities 
     serving the local area, who--
       (i) shall include a representative of economic and 
     community development entities;
       (ii) shall include an appropriate representative from the 
     State employment service office under the Wagner-Peyser Act 
     (29 U.S.C. 49 et seq.) serving the local area;
       (iii) shall include an appropriate representative of the 
     programs carried out 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), serving the local 
     area;
       (iv) may include representatives of agencies or entities 
     administering programs serving the local area relating to 
     transportation, housing, and public assistance; and
       (v) may include representatives of philanthropic 
     organizations serving the local area; and
       (E) each local board may include such other individuals or 
     representatives of entities as the chief elected official in 
     the local area may determine to be appropriate.
       (3) Chairperson.--The members of the local board shall 
     elect a chairperson for the local board from among the 
     representatives described in paragraph (2)(A).
       (4) Standing committees.--
       (A) In general.--The local board may designate and direct 
     the activities of standing committees to provide information 
     and to assist the local board in carrying out activities 
     under this section. Such standing committees shall be chaired 
     by a member of the local board, may include other members of 
     the local board, and shall include other individuals 
     appointed by the local board who are not members of the local 
     board and who the local board determines have appropriate 
     experience and expertise. At a minimum, the local board may 
     designate each of the following:
       (i) A standing committee to provide information and assist 
     with operational and other issues relating to the one-stop 
     delivery system, which may include as members representatives 
     of the one-stop partners.
       (ii) A standing committee to provide information and to 
     assist with planning, operational, and other issues relating 
     to the provision of services to youth, which shall include 
     community-based organizations with a demonstrated record of 
     success in serving eligible youth.
       (iii) A standing committee to provide information and to 
     assist with operational and other issues relating to the 
     provision of services to individuals with disabilities, 
     including issues relating to compliance with section 188, if 
     applicable, and applicable provisions of the Americans with 
     Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) regarding 
     providing programmatic and physical access to the services, 
     programs, and activities of the one-stop delivery system, as 
     well as appropriate training for staff on providing supports 
     for or accommodations to, and finding employment 
     opportunities for, individuals with disabilities.
       (B) Additional committees.--The local board may designate 
     standing committees in addition to the standing committees 
     specified in subparagraph (A).
       (C) Designation of entity.--Nothing in this paragraph shall 
     be construed to prohibit the designation of an existing (as 
     of the date of enactment of this Act) entity, such as an 
     effective youth council, to fulfill the requirements of this 
     paragraph as long as the entity meets the requirements of 
     this paragraph.
       (5) Authority of board members.--Members of the board that 
     represent organizations, agencies, or other entities shall be 
     individuals with optimum policymaking authority within the 
     organizations, agencies, or entities. The members of the 
     board shall represent diverse geographic areas within the 
     local area.
       (6) Special rule.--If there are multiple eligible providers 
     serving the local area by administering adult education and 
     literacy activities under title II, or multiple institutions 
     of higher education serving the local area by providing 
     workforce investment activities, each representative on the 
     local board described in clause (i) or (ii) of paragraph 
     (2)(C), respectively, shall be appointed from among 
     individuals nominated by local providers representing such 
     providers or institutions, respectively.
       (c) Appointment and Certification of Board.--
       (1) Appointment of board members and assignment of 
     responsibilities.--
       (A) In general.--The chief elected official in a local area 
     is authorized to appoint the members of the local board for 
     such area, in accordance with the State criteria established 
     under subsection (b).
       (B) Multiple units of local government in area.--
       (i) In general.--In a case in which a local area includes 
     more than 1 unit of general local government, the chief 
     elected officials of such units may execute an agreement that 
     specifies the respective roles of the individual chief 
     elected officials--

       (I) in the appointment of the members of the local board 
     from the individuals nominated or recommended to be such 
     members in accordance with the criteria established under 
     subsection (b); and
       (II) in carrying out any other responsibilities assigned to 
     such officials under this title.

       (ii) Lack of agreement.--If, after a reasonable effort, the 
     chief elected officials are unable to reach agreement as 
     provided under clause (i), the Governor may appoint the 
     members of the local board from individuals so nominated or 
     recommended.
       (C) Concentrated employment programs.--In the case of an 
     area that was designated as a local area in accordance with 
     section 116(a)(2)(B) of the Workforce Investment Act of 1998 
     (as in effect on the day before the date of enactment of this 
     Act), and that remains a local area on that date, the 
     governing body of the concentrated employment program 
     involved shall act in consultation with the chief elected 
     official in the local area to appoint members of the local 
     board, in accordance with the State criteria established 
     under subsection (b), and to carry out any other 
     responsibility relating to workforce investment activities 
     assigned to such official under this Act.
       (2) Certification.--
       (A) In general.--The Governor shall, once every 2 years, 
     certify 1 local board for each local area in the State.
       (B) Criteria.--Such certification shall be based on 
     criteria established under subsection (b), and for a second 
     or subsequent certification, the extent to which the local 
     board has ensured that workforce investment activities 
     carried out in the local area have enabled the local area to 
     meet the corresponding performance accountability measures 
     and achieve sustained fiscal integrity, as defined in section 
     106(e)(2).
       (C) Failure to achieve certification.--Failure of a local 
     board to achieve certification shall result in appointment 
     and certification of a new local board for the local area 
     pursuant to the process described in paragraph (1) and this 
     paragraph.
       (3) Decertification.--
       (A) Fraud, abuse, failure to carry out functions.--
     Notwithstanding paragraph (2), the Governor shall have the 
     authority to decertify a local board at any time after 
     providing notice and an opportunity for comment, for--
       (i) fraud or abuse; or
       (ii) failure to carry out the functions specified for the 
     local board in subsection (d).
       (B) Nonperformance.--Notwithstanding paragraph (2), the 
     Governor may decertify a local board if a local area fails to 
     meet the local performance accountability measures for such 
     local area in accordance with section 116(c) for 2 
     consecutive program years.
       (C) Reorganization plan.--If the Governor decertifies a 
     local board for a local area under subparagraph (A) or (B), 
     the Governor may require that a new local board be appointed 
     and certified for the local area pursuant to a reorganization 
     plan developed by the Governor, in consultation with the 
     chief elected official in the local area and in accordance 
     with the criteria established under subsection (b).
       (4) Single state local area.--
       (A) State board.--Notwithstanding subsection (b) and 
     paragraphs (1) and (2), if a State described in section 
     106(d) indicates in the State plan that the State will be 
     treated as a single State local area, for purposes of the 
     application of this Act or the provisions authorizing a core 
     program, the State board shall carry out any of the functions 
     of a local board under this Act or the provisions authorizing 
     a core program, including the functions described in 
     subsection (d).
       (B) References.--
       (i) In general.--Except as provided in clauses (ii) and 
     (iii), with respect to such a State, a reference in this Act 
     or a core program provision to a local board shall be 
     considered to be a reference to the State board, and a 
     reference in the Act or provision to a local area or region 
     shall be considered to be a reference to the State.
       (ii) Plans.--The State board shall prepare a local plan 
     under section 108 for the State, and submit the plan for 
     approval as part of the State plan.
       (iii) Performance accountability measures.--The State shall 
     not be required to meet and report on a set of local 
     performance accountability measures.
       (d) Functions of Local Board.--Consistent with section 108, 
     the functions of the local board shall include the following:
       (1) Local plan.--The local board, in partnership with the 
     chief elected official for the local area involved, shall 
     develop and submit a local plan to the Governor that meets 
     the requirements in section 108. If the local area is part of 
     a planning region that includes

[[Page 10912]]

     other local areas, the local board shall collaborate with the 
     other local boards and chief elected officials from such 
     other local areas in the preparation and submission of a 
     regional plan as described in section 106(c)(2).
       (2) Workforce research and regional labor market 
     analysis.--In order to assist in the development and 
     implementation of the local plan, the local board shall--
       (A) carry out analyses of the economic conditions in the 
     region, the needed knowledge and skills for the region, the 
     workforce in the region, and workforce development activities 
     (including education and training) in the region described in 
     section 108(b)(1)(D), and regularly update such information;
       (B) 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)), 
     specifically in the collection, analysis, and utilization of 
     workforce and labor market information for the region; and
       (C) conduct such other research, data collection, and 
     analysis related to the workforce needs of the regional 
     economy as the board, after receiving input from a wide array 
     of stakeholders, determines to be necessary to carry out its 
     functions.
       (3) Convening, brokering, leveraging.--The local board 
     shall convene local workforce development system stakeholders 
     to assist in the development of the local plan under section 
     108 and in identifying non-Federal expertise and resources to 
     leverage support for workforce development activities. The 
     local board, including standing committees, may engage such 
     stakeholders in carrying out the functions described in this 
     subsection.
       (4) Employer engagement.--The local board shall lead 
     efforts to engage with a diverse range of employers and with 
     entities in the region involved--
       (A) to promote business representation (particularly 
     representatives with optimal policymaking or hiring authority 
     from employers whose employment opportunities reflect 
     existing and emerging employment opportunities in the region) 
     on the local board;
       (B) to develop effective linkages (including the use of 
     intermediaries) with employers in the region to support 
     employer utilization of the local workforce development 
     system and to support local workforce investment activities;
       (C) to ensure that workforce investment activities meet the 
     needs of employers and support economic growth in the region, 
     by enhancing communication, coordination, and collaboration 
     among employers, economic development entities, and service 
     providers; and
       (D) to develop and implement proven or promising strategies 
     for meeting the employment and skill needs of workers and 
     employers (such as the establishment of industry and sector 
     partnerships), that provide the skilled workforce needed by 
     employers in the region, and that expand employment and 
     career advancement opportunities for workforce development 
     system participants in in-demand industry sectors or 
     occupations.
       (5) Career pathways development.--The local board, with 
     representatives of secondary and postsecondary education 
     programs, shall lead efforts in the local area to develop and 
     implement career pathways within the local area by aligning 
     the employment, training, education, and supportive services 
     that are needed by adults and youth, particularly individuals 
     with barriers to employment.
       (6) Proven and promising practices.--The local board shall 
     lead efforts in the local area to--
       (A) identify and promote proven and promising strategies 
     and initiatives for meeting the needs of employers, and 
     workers and jobseekers (including individuals with barriers 
     to employment) in the local workforce development system, 
     including providing physical and programmatic accessibility, 
     in accordance with section 188, if applicable, and applicable 
     provisions of the Americans with Disabilities Act of 1990 (42 
     U.S.C. 12101 et seq.), to the one-stop delivery system; and
       (B) identify and disseminate information on proven and 
     promising practices carried out in other local areas for 
     meeting such needs.
       (7) Technology.--The local board shall develop strategies 
     for using technology to maximize the accessibility and 
     effectiveness of the local workforce development system for 
     employers, and workers and jobseekers, by--
       (A) facilitating connections among the intake and case 
     management information systems of the one-stop partner 
     programs to support a comprehensive workforce development 
     system in the local area;
       (B) facilitating access to services provided through the 
     one-stop delivery system involved, including facilitating the 
     access in remote areas;
       (C) identifying strategies for better meeting the needs of 
     individuals with barriers to employment, including strategies 
     that augment traditional service delivery, and increase 
     access to services and programs of the one-stop delivery 
     system, such as improving digital literacy skills; and
       (D) leveraging resources and capacity within the local 
     workforce development system, including resources and 
     capacity for services for individuals with barriers to 
     employment.
       (8) Program oversight.--The local board, in partnership 
     with the chief elected official for the local area, shall--
       (A)(i) conduct oversight for local youth workforce 
     investment activities authorized under section 129(c), local 
     employment and training activities authorized under 
     subsections (c) and (d) of section 134, and the one-stop 
     delivery system in the local area; and
       (ii) ensure the appropriate use and management of the funds 
     provided under subtitle B for the activities and system 
     described in clause (i); and
       (B) for workforce development activities, ensure the 
     appropriate use, management, and investment of funds to 
     maximize performance outcomes under section 116.
       (9) Negotiation of local performance accountability 
     measures.--The local board, the chief elected official, and 
     the Governor shall negotiate and reach agreement on local 
     performance accountability measures as described in section 
     116(c).
       (10) 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 for the local area--
       (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) Selection of youth providers.--Consistent with section 
     123, the local board--
       (i) shall identify eligible providers of youth workforce 
     investment activities in the local area by awarding grants or 
     contracts on a competitive basis (except as provided in 
     section 123(b)), based on the recommendations of the youth 
     standing committee, if such a committee is established for 
     the local area under subsection (b)(4); and
       (ii) may terminate for cause the eligibility of such 
     providers.
       (C) Identification of eligible providers of training 
     services.--Consistent with section 122, the local board shall 
     identify eligible providers of training services in the local 
     area.
       (D) Identification of eligible providers of career 
     services.--If the one-stop operator does not provide career 
     services described in section 134(c)(2) in a local area, the 
     local board shall identify eligible providers of those career 
     services in the local area by awarding contracts.
       (E) Consumer choice requirements.--Consistent with section 
     122 and paragraphs (2) and (3) of section 134(c), the local 
     board shall work with the State to ensure there are 
     sufficient numbers and types of providers of career services 
     and training services (including eligible providers with 
     expertise in assisting individuals with disabilities and 
     eligible providers with expertise in assisting adults in need 
     of adult education and literacy activities) serving the local 
     area and providing the services involved in a manner that 
     maximizes consumer choice, as well as providing opportunities 
     that lead to competitive integrated employment for 
     individuals with disabilities.
       (11) Coordination with education providers.--
       (A) In general.--The local board shall coordinate 
     activities with education and training providers in the local 
     area, including providers of workforce investment activities, 
     providers of adult education and literacy activities under 
     title II, providers of 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 local 
     agencies administering plans 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).
       (B) Applications and agreements.--The coordination 
     described in subparagraph (A) shall include--
       (i) consistent with section 232--

       (I) reviewing the applications to provide adult education 
     and literacy activities under title II for the local area, 
     submitted under such section to the eligible agency by 
     eligible providers, to determine whether such applications 
     are consistent with the local plan; and
       (II) making recommendations to the eligible agency to 
     promote alignment with such plan; and

       (ii) replicating cooperative agreements in accordance with 
     subparagraph (B) of section 101(a)(11) of the Rehabilitation 
     Act of 1973 (29 U.S.C. 721(a)(11)), and implementing 
     cooperative agreements in accordance with that section with 
     the local agencies administering plans under title I of that 
     Act (29 U.S.C. 720 et seq.) (other than section 112 or part C 
     of that title (29 U.S.C. 732, 741) and subject to section 
     121(f)), with respect to efforts that will enhance the 
     provision of services to individuals with disabilities and 
     other individuals, such as cross training of staff, technical 
     assistance, use and sharing of information, cooperative 
     efforts with employers, and other efforts at cooperation, 
     collaboration, and coordination.
       (C) Cooperative agreement.--In this paragraph, the term 
     ``cooperative agreement'' means an agreement entered into by 
     a State designated agency or State designated unit

[[Page 10913]]

     under subparagraph (A) of section 101(a)(11) of the 
     Rehabilitation Act of 1973.
       (12) Budget and administration.--
       (A) Budget.--The local board shall develop a budget for the 
     activities of the local board in the local area, consistent 
     with the local plan and the duties of the local board under 
     this section, subject to the approval of the chief elected 
     official.
       (B) Administration.--
       (i) Grant recipient.--

       (I) In general.--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 sections 128 and 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 subclause (I).
       (III) Disbursal.--The local grant recipient or an entity 
     designated under subclause (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 
     subclause (II) shall disburse the funds immediately on 
     receiving such direction from the local board.

       (ii) Grants and donations.--The local board may solicit and 
     accept grants and donations from sources other than Federal 
     funds made available under this Act.
       (iii) Tax-exempt status.--For purposes of carrying out 
     duties under this Act, local boards may incorporate, and may 
     operate as entities described in section 501(c)(3) of the 
     Internal Revenue Code of 1986 that are exempt from taxation 
     under section 501(a) of such Code.
       (13) Accessibility for individuals with disabilities.--The 
     local board shall annually assess the physical and 
     programmatic accessibility, in accordance with section 188, 
     if applicable, and applicable provisions of the Americans 
     with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.), of 
     all one-stop centers in the local area.
       (e) Sunshine Provision.--The local board shall make 
     available to the public, on a regular basis through 
     electronic means and open meetings, information regarding the 
     activities of the local board, including information 
     regarding the local plan prior to submission of the plan, and 
     regarding membership, the designation and certification of 
     one-stop operators, and the award of grants or contracts to 
     eligible providers of youth workforce investment activities, 
     and on request, minutes of formal meetings of the local 
     board.
       (f) Staff.--
       (1) In general.--The local board may hire a director and 
     other staff to assist in carrying out the functions described 
     in subsection (d) using funds available under sections 128(b) 
     and 133(b) as described in section 128(b)(4).
       (2) Qualifications.--The local board shall establish and 
     apply a set of objective qualifications for the position of 
     director, that ensures that the individual selected has the 
     requisite knowledge, skills, and abilities, to meet 
     identified benchmarks and to assist in effectively carrying 
     out the functions of the local board.
       (3) Limitation on rate.--The director and staff described 
     in paragraph (1) shall be subject to the limitations on the 
     payment of salaries and bonuses described in section 194(15).
       (g) Limitations.--
       (1) Training services.--
       (A) In general.--Except as provided in subparagraph (B), no 
     local board may provide training services.
       (B) Waivers of training prohibition.--The Governor of the 
     State in which a local board is located may, pursuant to a 
     request from the local board, grant a written waiver of the 
     prohibition set forth in subparagraph (A) (relating to the 
     provision of training services) for a program of training 
     services, if the local board--
       (i) submits to the Governor a proposed request for the 
     waiver that includes--

       (I) satisfactory evidence that there is an insufficient 
     number of eligible providers of such a program of training 
     services to meet local demand in the local area;
       (II) information demonstrating that the board meets the 
     requirements for an eligible provider of training services 
     under section 122; and
       (III) information demonstrating that the program of 
     training services prepares participants for an in-demand 
     industry sector or occupation in the local area;

       (ii) makes the proposed request available to eligible 
     providers of training services and other interested members 
     of the public for a public comment period of not less than 30 
     days; and
       (iii) includes, in the final request for the waiver, the 
     evidence and information described in clause (i) and the 
     comments received pursuant to clause (ii).
       (C) Duration.--A waiver granted to a local board under 
     subparagraph (B) shall apply for a period that shall not 
     exceed the duration of the local plan. The waiver may be 
     renewed for additional periods under subsequent local plans, 
     not to exceed the durations of such subsequent plans, 
     pursuant to requests from the local board, if the board meets 
     the requirements of subparagraph (B) in making the requests.
       (D) Revocation.--The Governor shall have the authority to 
     revoke the waiver during the appropriate period described in 
     subparagraph (C) if the Governor determines the waiver is no 
     longer needed or that the local board involved has engaged in 
     a pattern of inappropriate referrals to training services 
     operated by the local board.
       (2) Career services; designation or certification as one-
     stop operators.--A local board may provide career services 
     described in section 134(c)(2) through a one-stop delivery 
     system or be designated or certified as a one-stop operator 
     only with the agreement of the chief elected official in the 
     local area and the Governor.
       (3) Limitation on authority.--Nothing in this Act shall be 
     construed to provide a local board with the authority to 
     mandate curricula for schools.
       (h) Conflict of Interest.--A member of a local board, or a 
     member of a standing committee, may not--
       (1) vote on a matter under consideration by the local 
     board--
       (A) regarding the provision of services by such member (or 
     by an entity that such member represents); or
       (B) that would provide direct financial benefit to such 
     member or the immediate family of such member; or
       (2) engage in any other activity determined by the Governor 
     to constitute a conflict of interest as specified in the 
     State plan.
       (i) Alternative Entity.--
       (1) In general.--For purposes of complying with subsections 
     (a), (b), and (c), a State may use any local entity 
     (including a local council, regional workforce development 
     board, or similar entity) that--
       (A) is established to serve the local area (or the service 
     delivery area that most closely corresponds to the local 
     area);
       (B) was in existence on the day before the date of 
     enactment of this Act, pursuant to State law; and
       (C) includes--
       (i) representatives of business in the local area; and
       (ii)(I) representatives of labor organizations (for a local 
     area in which employees are represented by labor 
     organizations), nominated by local labor federations; or
       (II) other representatives of employees in the local area 
     (for a local area in which no employees are represented by 
     such organizations).
       (2) References.--A reference in this Act or a core program 
     provision to a local board, shall include a reference to such 
     an entity.

     SEC. 108. LOCAL PLAN.

       (a) In General.--Each local board shall develop and submit 
     to the Governor a comprehensive 4-year local plan, in 
     partnership with the chief elected official. The local plan 
     shall support the strategy described in the State plan in 
     accordance with section 102(b)(1)(E), and otherwise be 
     consistent with the State plan. If the local area is part of 
     a planning region, the local board shall comply with section 
     106(c) in the preparation and submission of a regional plan. 
     At the end of the first 2-year period of the 4-year local 
     plan, each local board shall review the local plan and the 
     local board, in partnership with the chief elected official, 
     shall prepare and submit modifications to the local plan to 
     reflect changes in labor market and economic conditions or in 
     other factors affecting the implementation of the local plan.
       (b) Contents.--The local plan shall include--
       (1) a description of the strategic planning elements 
     consisting of--
       (A) an analysis of the regional economic conditions 
     including--
       (i) existing and emerging in-demand industry sectors and 
     occupations; and
       (ii) the employment needs of employers in those industry 
     sectors and occupations;
       (B) an analysis of the knowledge and skills needed to meet 
     the employment needs of the employers in the region, 
     including employment needs in in-demand industry sectors and 
     occupations;
       (C) an analysis of the workforce in the region, including 
     current labor force employment (and unemployment) data, and 
     information on labor market trends, and the educational and 
     skill levels of the workforce in the region, including 
     individuals with barriers to employment;
       (D) an analysis of the workforce development activities 
     (including education and training) in the region, including 
     an analysis of the strengths and weaknesses of such services, 
     and the capacity to provide such services, to address the 
     identified education and skill needs of the workforce and the 
     employment needs of employers in the region;
       (E) a description of the local board's strategic vision and 
     goals for preparing an educated and skilled workforce 
     (including youth and individuals with barriers to 
     employment), including goals relating to the performance 
     accountability measures based on

[[Page 10914]]

     primary indicators of performance described in section 
     116(b)(2)(A) in order to support regional economic growth and 
     economic self-sufficiency; and
       (F) taking into account analyses described in subparagraphs 
     (A) through (D), a strategy to work with the entities that 
     carry out the core programs to align resources available to 
     the local area, to achieve the strategic vision and goals 
     described in subparagraph (E);
       (2) a description of the workforce development system in 
     the local area that identifies the programs that are included 
     in that system and how the local board will work with the 
     entities carrying out core programs and other workforce 
     development programs to support alignment to provide 
     services, including programs of study authorized under the 
     Carl D. Perkins Career and Technical Education Act of 2006 
     (20 U.S.C. 2301 et seq.), that support the strategy 
     identified in the State plan under section 102(b)(1)(E);
       (3) a description of how the local board, working with the 
     entities carrying out core programs, will expand access to 
     employment, training, education, and supportive services for 
     eligible individuals, particularly eligible individuals with 
     barriers to employment, including how the local board will 
     facilitate the development of career pathways and co-
     enrollment, as appropriate, in core programs;
       (4) a description of the strategies and services that will 
     be used in the local area--
       (A) in order to--
       (i) facilitate engagement of employers, including small 
     employers and employers in in-demand industry sectors and 
     occupations, in workforce development programs;
       (ii) support a local workforce development system that 
     meets the needs of businesses in the local area;
       (iii) better coordinate workforce development programs and 
     economic development; and
       (iv) strengthen linkages between the one-stop delivery 
     system and unemployment insurance programs; and
       (B) that may include the implementation of initiatives such 
     as incumbent worker training programs, on-the-job training 
     programs, customized training programs, industry and sector 
     strategies, career pathways initiatives, utilization of 
     effective business intermediaries, and other business 
     services and strategies, designed to meet the needs of 
     employers in the corresponding region in support of the 
     strategy described in paragraph (1)(F);
       (5) a description of how the local board will coordinate 
     workforce investment activities carried out in the local area 
     with economic development activities carried out in the 
     region in which the local area is located (or planning 
     region), and promote entrepreneurial skills training and 
     microenterprise services;
       (6) a description of the one-stop delivery system in the 
     local area, including--
       (A) a description of how the local board will ensure the 
     continuous improvement of eligible providers of services 
     through the system and ensure that such providers meet the 
     employment needs of local employers, and workers and 
     jobseekers;
       (B) a description of how the local board will facilitate 
     access to services provided through the one-stop delivery 
     system, including in remote areas, through the use of 
     technology and through other means;
       (C) a description of how entities within the one-stop 
     delivery system, including one-stop operators and the one-
     stop partners, will comply with section 188, if applicable, 
     and applicable provisions of the Americans with Disabilities 
     Act of 1990 (42 U.S.C. 12101 et seq.) regarding the physical 
     and programmatic accessibility of facilities, programs and 
     services, technology, and materials for individuals with 
     disabilities, including providing staff training and support 
     for addressing the needs of individuals with disabilities; 
     and
       (D) a description of the roles and resource contributions 
     of the one-stop partners;
       (7) a description and assessment of the type and 
     availability of adult and dislocated worker employment and 
     training activities in the local area;
       (8) a description of how the local board will coordinate 
     workforce investment activities carried out in the local area 
     with statewide rapid response activities, as described in 
     section 134(a)(2)(A);
       (9) a description and assessment of the type and 
     availability of youth workforce investment activities in the 
     local area, including activities for youth who are 
     individuals with disabilities, which description and 
     assessment shall include an identification of successful 
     models of such youth workforce investment activities;
       (10) a description of how the local board will coordinate 
     education and workforce investment activities carried out in 
     the local area with relevant secondary and postsecondary 
     education programs and activities to coordinate strategies, 
     enhance services, and avoid duplication of services;
       (11) a description of how the local board will coordinate 
     workforce investment activities carried out under this title 
     in the local area with the provision of transportation, 
     including public transportation, and other appropriate 
     supportive services in the local area;
       (12) a description of plans and strategies for, and 
     assurances concerning, maximizing coordination of services 
     provided by the State employment service under the Wagner-
     Peyser Act (29 U.S.C. 49 et seq.) and services provided in 
     the local area through the one-stop delivery system, to 
     improve service delivery and avoid duplication of services;
       (13) a description of how the local board will coordinate 
     workforce investment activities carried out under this title 
     in the local area with the provision of adult education and 
     literacy activities under title II in the local area, 
     including a description of how the local board will carry 
     out, consistent with subparagraphs (A) and (B)(i) of section 
     107(d)(11) and section 232, the review of local applications 
     submitted under title II;
       (14) a description of the replicated cooperative agreements 
     (as defined in section 107(d)(11)) between the local board or 
     other local entities described in section 101(a)(11)(B) of 
     the Rehabilitation Act of 1973 (29 U.S.C. 721(a)(11)(B)) and 
     the local office of a designated State agency or designated 
     State unit administering programs carried out under title I 
     of such Act (29 U.S.C. 720 et seq.) (other than section 112 
     or part C of that title (29 U.S.C. 732, 741) and subject to 
     section 121(f)) in accordance with section 101(a)(11) of such 
     Act (29 U.S.C. 721(a)(11)) with respect to efforts that will 
     enhance the provision of services to individuals with 
     disabilities and to other individuals, such as cross training 
     of staff, technical assistance, use and sharing of 
     information, cooperative efforts with employers, and other 
     efforts at cooperation, collaboration, and coordination;
       (15) an identification of the entity responsible for the 
     disbursal of grant funds described in section 
     107(d)(12)(B)(i)(III), as determined by the chief elected 
     official or the Governor under section 107(d)(12)(B)(i);
       (16) a description of the competitive process to be used to 
     award the subgrants and contracts in the local area for 
     activities carried out under this title;
       (17) a description of the local levels of performance 
     negotiated with the Governor and chief elected official 
     pursuant to section 116(c), to be used to measure the 
     performance of the local area and to be used by the local 
     board for measuring the performance of the local fiscal agent 
     (where appropriate), eligible providers under subtitle B, and 
     the one-stop delivery system, in the local area;
       (18) a description of the actions the local board will take 
     toward becoming or remaining a high-performing board, 
     consistent with the factors developed by the State board 
     pursuant to section 101(d)(6);
       (19) a description of how training services under chapter 3 
     of subtitle B will be provided in accordance with section 
     134(c)(3)(G), including, if contracts for the training 
     services will be used, how the use of such contracts will be 
     coordinated with the use of individual training accounts 
     under that chapter and how the local board will ensure 
     informed customer choice in the selection of training 
     programs regardless of how the training services are to be 
     provided;
       (20) a description of the process used by the local board, 
     consistent with subsection (d), to provide an opportunity for 
     public comment, including comment by representatives of 
     businesses and comment by representatives of labor 
     organizations, and input into the development of the local 
     plan, prior to submission of the plan;
       (21) a description of how one-stop centers are implementing 
     and transitioning to an integrated, technology-enabled intake 
     and case management information system for programs carried 
     out under this Act and programs carried out by one-stop 
     partners; and
       (22) such other information as the Governor may require.
       (c) Existing Analysis.--As appropriate, a local area may 
     use an existing analysis in order to carry out the 
     requirements of subsection (b)(1) concerning an analysis.
       (d) Process.--Prior to the date on which the local board 
     submits a local plan under this section, the local board 
     shall--
       (1) make available copies of a proposed local plan to the 
     public through electronic and other means, such as public 
     hearings and local news media;
       (2) allow members of the public, including representatives 
     of business, representatives of labor organizations, and 
     representatives of education to submit to the local board 
     comments on the proposed local plan, not later than the end 
     of the 30-day period beginning on the date on which the 
     proposed local plan is made available; and
       (3) include with the local plan submitted to the Governor 
     under this section any such comments that represent 
     disagreement with the plan.
       (e) Plan Submission and Approval.--A local plan submitted 
     to the Governor under this section (including a modification 
     to such a local plan) shall be considered to be approved by 
     the Governor at the end of the 90-day period beginning on the 
     day the Governor receives the plan (including such a 
     modification), unless the Governor makes a written 
     determination during the 90-day period that--
       (1) deficiencies in activities carried out under this 
     subtitle or subtitle B have been identified, through audits 
     conducted under section 184 or otherwise, and the local area

[[Page 10915]]

     has not made acceptable progress in implementing corrective 
     measures to address the deficiencies;
       (2) the plan does not comply with the applicable provisions 
     of this Act; or
       (3) the plan does not align with the State plan, including 
     failing to provide for alignment of the core programs to 
     support the strategy identified in the State plan in 
     accordance with section 102(b)(1)(E).

                      CHAPTER 3--BOARD PROVISIONS

     SEC. 111. FUNDING OF STATE AND LOCAL BOARDS.

       (a) State Boards.--In funding a State board under this 
     subtitle, a State--
       (1) shall use funds available as described in section 
     129(b)(3) or 134(a)(3)(B); and
       (2) may use non-Federal funds available to the State that 
     the State determines are appropriate and available for that 
     use.
       (b) Local Boards.--In funding a local board under this 
     subtitle, the chief elected official and local board for the 
     local area--
       (1) shall use funds available as described in section 
     128(b)(4); and
       (2) may use non-Federal funds available to the local area 
     that the chief elected official and local board determine are 
     appropriate and available for that use.

                 CHAPTER 4--PERFORMANCE ACCOUNTABILITY

     SEC. 116. PERFORMANCE ACCOUNTABILITY SYSTEM.

       (a) Purpose.--The purpose of this section is to establish 
     performance accountability measures that apply across the 
     core programs to assess the effectiveness of States and local 
     areas (for core programs described in subtitle B) in 
     achieving positive outcomes for individuals served by those 
     programs.
       (b) State Performance Accountability Measures.--
       (1) In general.--For each State, the performance 
     accountability measures for the core programs shall consist 
     of--
       (A)(i) the primary indicators of performance described in 
     paragraph (2)(A); and
       (ii) the 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) Primary indicators of performance.--
       (i) In general.--The State primary indicators of 
     performance for activities provided under the adult and 
     dislocated worker programs authorized under chapter 3 of 
     subtitle B, the program of adult education and literacy 
     activities authorized under title II, the employment services 
     program authorized under sections 1 through 13 of the Wagner-
     Peyser Act (29 U.S.C. 49 et seq.) (except that subclauses 
     (IV) and (V) shall not apply to such program), 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--

       (I) the percentage of program participants who are in 
     unsubsidized employment during the second quarter after exit 
     from the program;
       (II) the percentage of program participants who are in 
     unsubsidized employment during the fourth quarter after exit 
     from the program;
       (III) the median earnings of program participants who are 
     in unsubsidized employment during the second quarter after 
     exit from the program;
       (IV) the percentage of program participants who obtain a 
     recognized postsecondary credential, or a secondary school 
     diploma or its recognized equivalent (subject to clause 
     (iii)), during participation in or within 1 year after exit 
     from the program;
       (V) the percentage of program participants who, during a 
     program year, are in an education or training program that 
     leads to a recognized postsecondary credential or employment 
     and who are achieving measurable skill gains toward such a 
     credential or employment; and
       (VI) the indicators of effectiveness in serving employers 
     established pursuant to clause (iv).

       (ii) Primary indicators for eligible youth.--The primary 
     indicators of performance for the youth program authorized 
     under chapter 2 of subtitle B shall consist of--

       (I) the percentage of program participants who are in 
     education or training activities, or in unsubsidized 
     employment, during the second quarter after exit from the 
     program;
       (II) the percentage of program participants who are in 
     education or training activities, or in unsubsidized 
     employment, during the fourth quarter after exit from the 
     program; and
       (III) the primary indicators of performance described in 
     subclauses (III) through (VI) of subparagraph (A)(i).

       (iii) Indicator relating to credential.--For purposes of 
     clause (i)(IV), or clause (ii)(III) with respect to clause 
     (i)(IV), program participants who obtain a 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, have obtained or 
     retained employment or are in an education or training 
     program leading to a recognized postsecondary credential 
     within 1 year after exit from the program.
       (iv) Indicator for services to employers.--Prior to the 
     commencement of the second full program year after the date 
     of enactment of this Act, for purposes of clauses (i)(VI), or 
     clause (ii)(III) with respect to clause (i)(IV), the 
     Secretary of Labor and the Secretary of Education, after 
     consultation with the representatives described in paragraph 
     (4)(B), shall jointly develop and establish, for purposes of 
     this subparagraph, 1 or more primary indicators of 
     performance that indicate the effectiveness of the core 
     programs in serving employers.
       (B) Additional indicators.--A State may identify in the 
     State plan additional performance accountability indicators.
       (3) Levels of performance.--
       (A) State adjusted levels of performance for primary 
     indicators.--
       (i) In general.--For each State submitting a State plan, 
     there shall be established, in accordance with this 
     subparagraph, levels of performance for each of the 
     corresponding primary indicators of performance described in 
     paragraph (2) for each of the programs described in clause 
     (ii).
       (ii) Included programs.--The programs included under clause 
     (i) are--

       (I) the youth program authorized under chapter 2 of 
     subtitle B;
       (II) the adult program authorized under chapter 3 of 
     subtitle B;
       (III) the dislocated worker program authorized under 
     chapter 3 of subtitle B;
       (IV) the program of adult education and literacy activities 
     authorized under title II;
       (V) the employment services program authorized under 
     sections 1 through 13 of the Wagner-Peyser Act (29 U.S.C. 49 
     et seq.); and
       (VI) 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).

       (iii) Identification in state plan.--Each State shall 
     identify, in the State plan, expected levels of performance 
     for each of the corresponding primary indicators of 
     performance for each of the programs described in clause (ii) 
     for the first 2 program years covered by the State plan.
       (iv) Agreement on state adjusted levels of performance.--

       (I) First 2 years.--The State shall reach agreement with 
     the Secretary of Labor, in conjunction with the Secretary of 
     Education on levels of performance for each indicator 
     described in clause (iii) for each of the programs described 
     in clause (ii) for each of the first 2 program years covered 
     by the State plan. In reaching the agreement, the State and 
     the Secretary of Labor in conjunction with the Secretary of 
     Education shall take into account the levels identified in 
     the State plan under clause (iii) and the factors described 
     in clause (v). The levels agreed to shall be considered to be 
     the State adjusted levels of performance for the State for 
     such program years and shall be incorporated into the State 
     plan prior to the approval of such plan.
       (II) Third and fourth year.--The State and the Secretary of 
     Labor, in conjunction with the Secretary of Education, shall 
     reach agreement, prior to the third program year covered by 
     the State plan, on levels of performance for each indicator 
     described in clause (iii) for each of the programs described 
     in clause (ii) for each of the third and fourth program years 
     covered by the State plan. In reaching the agreement, the 
     State and Secretary of Labor, in conjunction with the 
     Secretary of Education, shall take into account the factors 
     described in clause (v). The levels agreed to shall be 
     considered to be the State adjusted levels of performance for 
     the State for such program years and shall be incorporated 
     into the State plan as a modification to the plan.

       (v) Factors.--In reaching the agreements described in 
     clause (iv), the State and Secretaries shall--

       (I) take into account how the levels involved compare with 
     the State adjusted levels of performance established for 
     other States;
       (II) ensure that the levels involved are adjusted, using 
     the objective statistical model established by the 
     Secretaries pursuant to clause (viii), based on--

       (aa) the differences among States in actual economic 
     conditions (including differences in unemployment rates and 
     job losses or gains in particular industries); and
       (bb) the characteristics of participants when the 
     participants entered the program involved, including 
     indicators of poor work history, lack of work experience, 
     lack of educational or occupational skills attainment, 
     dislocation from high-wage and high-benefit employment, low 
     levels of literacy or English proficiency, disability status, 
     homelessness, ex-offender status, and welfare dependency;

       (III) take into account the extent to which the levels 
     involved promote continuous improvement in performance 
     accountability on the performance accountability measures by 
     such State and ensure optimal return on the investment of 
     Federal funds; and
       (IV) take into account the extent to which the levels 
     involved will assist the State in meeting the goals described 
     in clause (vi).

       (vi) Goals.--In order to promote enhanced performance 
     outcomes and to facilitate the

[[Page 10916]]

     process of reaching agreements with the States under clause 
     (iv), the Secretary of Labor, in conjunction with the 
     Secretary of Education, shall establish performance goals for 
     the core programs, in accordance with the Government 
     Performance and Results Act of 1993 (Public Law 103-62; 107 
     Stat. 285) and the amendments made by that Act, and in 
     consultation with States and other appropriate parties. Such 
     goals shall be long-term goals for the adjusted levels of 
     performance to be achieved by each of the programs described 
     in clause (ii) regarding the corresponding primary indicators 
     of performance described in paragraph (2)(A).
       (vii) Revisions based on economic conditions and 
     individuals served during the program year.--The Secretary of 
     Labor, in conjunction with the Secretary of Education, shall, 
     in accordance with the objective statistical model developed 
     pursuant to clause (viii), revise the State adjusted levels 
     of performance applicable for each of the programs described 
     in clause (ii), for a program year and a State, to reflect 
     the actual economic conditions and characteristics of 
     participants (as described in clause (v)(II)) in that program 
     during such program year in such State.
       (viii) Statistical adjustment model.--The Secretary of 
     Labor and the Secretary of Education, after consultation with 
     the representatives described in paragraph (4)(B), shall 
     develop and disseminate an objective statistical model that 
     will be used to make the adjustments in the State adjusted 
     levels of performance for actual economic conditions and 
     characteristics of participants under clauses (v) and (vii).
       (B) Levels of performance for additional indicators.--The 
     State may identify, in the State plan, State levels of 
     performance for each of the additional indicators identified 
     under paragraph (2)(B). Such levels shall be considered to be 
     State adjusted levels of performance for purposes of this 
     section.
       (4) Definitions of indicators of performance.--
       (A) In general.--In order to ensure nationwide 
     comparability of performance data, the Secretary of Labor and 
     the Secretary of Education, after consultation with 
     representatives described in subparagraph (B), shall issue 
     definitions for the indicators described in paragraph (2).
       (B) Representatives.--The representatives referred to in 
     subparagraph (A) are representatives of States and political 
     subdivisions, business and industry, employees, eligible 
     providers of activities carried out through the core 
     programs, educators, researchers, participants, the lead 
     State agency officials with responsibility for the programs 
     carried out through the core programs, individuals with 
     expertise in serving individuals with barriers to employment, 
     and other interested parties.
       (c) Local Performance Accountability Measures for Subtitle 
     B.--
       (1) In general.--For each local area in a State designated 
     under section 106, the local performance accountability 
     measures for each of the programs described in subclauses (I) 
     through (III) of subsection (b)(3)(A)(ii) shall consist of--
       (A)(i) the primary indicators of performance described in 
     subsection (b)(2)(A) that are applicable to such programs; 
     and
       (ii) additional indicators of performance, if any, 
     identified by the State for such programs under subsection 
     (b)(2)(B); and
       (B) the local level of performance for each indicator 
     described in subparagraph (A).
       (2) Local level of performance.--The local board, the chief 
     elected official, and the Governor shall negotiate and reach 
     agreement on local levels of performance based on the State 
     adjusted levels of performance established under subsection 
     (b)(3)(A).
       (3) Adjustment factors.--In negotiating the local levels of 
     performance, the local board, the chief elected official, and 
     the Governor shall make adjustments for the expected economic 
     conditions and the expected characteristics of participants 
     to be served in the local area, using the statistical 
     adjustment model developed pursuant to subsection 
     (b)(3)(A)(viii). In addition, the negotiated local levels of 
     performance applicable to a program year shall be revised to 
     reflect the actual economic conditions experienced and the 
     characteristics of the populations served in the local area 
     during such program year using the statistical adjustment 
     model.
       (d) Performance Reports.--
       (1) In general.--Not later than 12 months after the date of 
     enactment of this Act, the Secretary of Labor, in conjunction 
     with the Secretary of Education, shall develop a template for 
     performance reports that shall be used by States, local 
     boards, and eligible providers of training services under 
     section 122 to report on outcomes achieved by the core 
     programs. In developing such templates, the Secretary of 
     Labor, in conjunction with the Secretary of Education, will 
     take into account the need to maximize the value of the 
     templates for workers, jobseekers, employers, local elected 
     officials, State officials, Federal policymakers, and other 
     key stakeholders.
       (2) Contents of state performance reports.--The performance 
     report for a State shall include, subject to paragraph 
     (5)(C)--
       (A) information specifying the levels of performance 
     achieved with respect to the primary indicators of 
     performance described in subsection (b)(2)(A) for each of the 
     programs described in subsection (b)(3)(A)(ii) and the State 
     adjusted levels of performance with respect to such 
     indicators for each program;
       (B) information specifying the levels of performance 
     achieved with respect to the primary indicators of 
     performance described in subsection (b)(2)(A) for each of the 
     programs described in subsection (b)(3)(A)(ii) with respect 
     to individuals with barriers to employment, disaggregated by 
     each subpopulation of such individuals, and by race, 
     ethnicity, sex, and age;
       (C) the total number of participants served by each of the 
     programs described in subsection (b)(3)(A)(ii);
       (D) the number of participants who received career and 
     training services, respectively, during the most recent 
     program year and the 3 preceding program years, and the 
     amount of funds spent on each type of service;
       (E) the number of participants who exited from career and 
     training services, respectively, during the most recent 
     program year and the 3 preceding program years;
       (F) the average cost per participant of those participants 
     who received career and training services, respectively, 
     during the most recent program year and the 3 preceding 
     program years;
       (G) the percentage of participants in a program authorized 
     under this subtitle who received training services and 
     obtained unsubsidized employment in a field related to the 
     training received;
       (H) the number of individuals with barriers to employment 
     served by each of the programs described in subsection 
     (b)(3)(A)(ii), disaggregated by each subpopulation of such 
     individuals;
       (I) the number of participants who are enrolled in more 
     than 1 of the programs described in subsection (b)(3)(A)(ii);
       (J) the percentage of the State's annual allotment under 
     section 132(b) that the State spent on administrative costs;
       (K) in the case of a State in which local areas are 
     implementing pay-for-performance contract strategies for 
     programs--
       (i) the performance of service providers entering into 
     contracts for such strategies, measured against the levels of 
     performance specified in the contracts for such strategies; 
     and
       (ii) an evaluation of the design of the programs and 
     performance of the strategies, and, where possible, the level 
     of satisfaction with the strategies among employers and 
     participants benefitting from the strategies; and
       (L) other information that facilitates comparisons of 
     programs with programs in other States.
       (3) Contents of local area performance reports.--The 
     performance reports for a local area shall include, subject 
     to paragraph (6)(C)--
       (A) the information specified in subparagraphs (A) through 
     (L) of paragraph (2), for each of the programs described in 
     subclauses (I) through (III) of subsection (b)(3)(A)(ii);
       (B) the percentage of the local area's allocation under 
     sections 128(b) and 133(b) that the local area spent on 
     administrative costs; and
       (C) other information that facilitates comparisons of 
     programs with programs in other local areas (or planning 
     regions, as appropriate).
       (4) Contents of eligible training providers performance 
     reports.--The performance report for an eligible provider of 
     training services under section 122 shall include, subject to 
     paragraph (6)(C), with respect to each program of study (or 
     the equivalent) of such provider--
       (A) information specifying the levels of performance 
     achieved with respect to the primary indicators of 
     performance described in subclauses (I) through (IV) of 
     subsection (b)(2)(A)(i) with respect to all individuals 
     engaging in the program of study (or the equivalent);
       (B) the total number of individuals exiting from the 
     program of study (or the equivalent);
       (C) the total number of participants who received training 
     services through each of the adult program and the dislocated 
     worker program authorized under chapter 3 of subtitle B, 
     disaggregated by the type of entity that provided the 
     training, during the most recent program year and the 3 
     preceding program years;
       (D) the total number of participants who exited from 
     training services, disaggregated by the type of entity that 
     provided the training, during the most recent program year 
     and the 3 preceding program years;
       (E) the average cost per participant for the participants 
     who received training services, disaggregated by the type of 
     entity that provided the training, during the most recent 
     program year and the 3 preceding program years; and
       (F) the number of individuals with barriers to employment 
     served by each of the adult program and the dislocated worker 
     program authorized under chapter 3 of subtitle B, 
     disaggregated by each subpopulation of such individuals, and 
     by race, ethnicity, sex, and age.

[[Page 10917]]

       (5) Data validation.--In preparing the State reports 
     described in this subsection, each State shall establish 
     procedures, consistent with guidelines issued by the 
     Secretary, in conjunction with the Secretary of Education, to 
     ensure the information contained in the reports is valid and 
     reliable.
       (6) Publication.--
       (A) State performance reports.--The Secretary of Labor and 
     the Secretary of Education shall annually make available 
     (including by electronic means), in an easily understandable 
     format, the performance reports for States containing the 
     information described in paragraph (2).
       (B) Local area and eligible training provider performance 
     reports.--The State shall make available (including by 
     electronic means), in an easily understandable format, the 
     performance reports for the local areas containing the 
     information described in paragraph (3) and the performance 
     reports for eligible providers of training services 
     containing the information described in paragraph (4).
       (C) Rules for reporting of data.--The disaggregation of 
     data under this subsection shall not be required when the 
     number of participants in a category is insufficient to yield 
     statistically reliable information or when the results would 
     reveal personally identifiable information about an 
     individual participant.
       (D) Dissemination to congress.--The Secretary of Labor and 
     the Secretary of Education shall make available (including by 
     electronic means) a summary of the reports, and the reports, 
     required under this subsection 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. The Secretaries shall prepare and make available with 
     the reports a set of recommendations for improvements in and 
     adjustments to pay-for-performance contract strategies used 
     under subtitle B.
       (e) Evaluation of State Programs.--
       (1) In general.--Using funds authorized under a core 
     program and made available to carry out this section, the 
     State, in coordination with local boards in the State and the 
     State agencies responsible for the administration of the core 
     programs, shall conduct ongoing evaluations of activities 
     carried out in the State under such programs. The State, 
     local boards, and State agencies shall conduct the 
     evaluations in order to promote, establish, implement, and 
     utilize methods for continuously improving core program 
     activities in order to achieve high-level performance within, 
     and high-level outcomes from, the workforce development 
     system. The State shall coordinate the evaluations with the 
     evaluations provided for by the Secretary of Labor and the 
     Secretary of Education under section 169, section 
     242(c)(2)(D), and sections 12(a)(5), 14, and 107 of the 
     Rehabilitation Act of 1973 (29 U.S.C. 709(a)(5), 711, 727) 
     (applied with respect to programs carried out under title I 
     of that Act (29 U.S.C. 720 et seq.)) and the investigations 
     provided for by the Secretary of Labor under section 10(b) of 
     the Wagner-Peyser Act (29 U.S.C. 49i(b)).
       (2) Design.--The evaluations conducted under this 
     subsection shall be designed in conjunction with the State 
     board, State agencies responsible for the administration of 
     the core programs, and local boards and shall include 
     analysis of customer feedback and outcome and process 
     measures in the statewide workforce development system. The 
     evaluations shall use designs that employ the most rigorous 
     analytical and statistical methods that are reasonably 
     feasible, such as the use of control groups.
       (3) Results.--The State shall annually prepare, submit to 
     the State board and local boards in the State, and make 
     available to the public (including by electronic means), 
     reports containing the results of evaluations conducted under 
     this subsection, to promote the efficiency and effectiveness 
     of the workforce development system.
       (4) Cooperation with federal evaluations.--The State shall, 
     to the extent practicable, cooperate in the conduct of 
     evaluations (including related research projects) provided 
     for by the Secretary of Labor or the Secretary of Education 
     under the provisions of Federal law identified in paragraph 
     (1). Such cooperation shall include the provision of data (in 
     accordance with appropriate privacy protections established 
     by the Secretary of Labor), the provision of responses to 
     surveys, and allowing site visits in a timely manner, for the 
     Secretaries or their agents.
       (f) Sanctions for State Failure To Meet State Performance 
     Accountability Measures.--
       (1) States.--
       (A) Technical assistance.--If a State fails to meet the 
     State adjusted levels of performance relating to indicators 
     described in subsection (b)(2)(A) for a program for any 
     program year, the Secretary of Labor and the Secretary of 
     Education shall provide technical assistance, including 
     assistance in the development of a performance improvement 
     plan.
       (B) Reduction in amount of grant.--If such failure 
     continues for a second consecutive year, or (except in the 
     case of exceptional circumstances as determined by the 
     Secretary of Labor or the Secretary of Education, as 
     appropriate) a State fails to submit a report under 
     subsection (d) for any program year, the percentage of each 
     amount that would (in the absence of this paragraph) be 
     reserved by the Governor under section 128(a) for the 
     immediately succeeding program year shall be reduced by 5 
     percentage points until such date as the Secretary of Labor 
     or the Secretary of Education, as appropriate, determines 
     that the State meets such State adjusted levels of 
     performance and has submitted such reports for the 
     appropriate program years.
       (g) Sanctions for Local Area Failure To Meet Local 
     Performance Accountability Measures.--
       (1) Technical assistance.--If a local area fails to meet 
     local performance accountability measures established under 
     subsection (c) for the youth, adult, or dislocated worker 
     program authorized under chapter 2 or 3 of subtitle B for a 
     program described in subsection (d)(2)(A) for any program 
     year, the Governor, or upon request by the Governor, the 
     Secretary of Labor, shall provide technical assistance, which 
     may include assistance in the development of a performance 
     improvement plan or the development of a modified local plan 
     (or regional plan).
       (2) Corrective actions.--
       (A) In general.--If such failure continues for a third 
     consecutive year, the Governor shall take corrective actions, 
     which shall include development of a reorganization plan 
     through which the Governor shall--
       (i) require the appointment and certification of a new 
     local board, consistent with the criteria established under 
     section 107(b);
       (ii) prohibit the use of eligible providers and one-stop 
     partners identified as achieving a poor level of performance; 
     or
       (iii) take such other significant actions as the Governor 
     determines are appropriate.
       (B) Appeal by local area.--
       (i) Appeal to governor.--The local board and chief elected 
     official for a local area that is subject to 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. In such case, the 
     Governor shall make a final decision not later than 30 days 
     after the receipt of the appeal.
       (ii) Subsequent action.--The local board and chief elected 
     official for a local area may, not later than 30 days after 
     receiving a decision from the Governor pursuant to clause 
     (i), appeal such decision to the Secretary of Labor. In such 
     case, the Secretary shall make a final decision not later 
     than 30 days after the receipt of the appeal.
       (C) Effective date.--The decision made by the Governor 
     under subparagraph (B)(i) shall become effective at the time 
     the Governor issues the decision pursuant to such clause. 
     Such decision shall remain effective unless the Secretary of 
     Labor rescinds or revises such plan pursuant to subparagraph 
     (B)(ii).
       (h) Establishing Pay-for-Performance Contract Strategy 
     Incentives.--Using non-Federal funds, the Governor may 
     establish incentives for local boards to implement pay-for-
     performance contract strategies for the delivery of training 
     services described in section 134(c)(3) or activities 
     described in section 129(c)(2) in the local areas served by 
     the local boards.
       (i) Fiscal and Management Accountability Information 
     Systems.--
       (1) In general.--Using funds authorized under a core 
     program and made available to carry out this chapter, the 
     Governor, in coordination with the State board, the State 
     agencies administering the core programs, local boards, and 
     chief elected officials in the State, shall establish and 
     operate a fiscal and management accountability information 
     system based on guidelines established by the Secretary of 
     Labor and the Secretary of Education after consultation with 
     the Governors of States, chief elected officials, and one-
     stop partners. Such guidelines shall promote efficient 
     collection and use of fiscal and management information for 
     reporting and monitoring the use of funds authorized under 
     the core programs and for preparing the annual report 
     described in subsection (d).
       (2) Wage records.--In measuring the progress of the State 
     on State and local performance accountability measures, a 
     State shall utilize quarterly wage records, consistent with 
     State law. The Secretary of Labor shall make arrangements, 
     consistent with State law, to ensure that the wage records of 
     any State are available to any other State to the extent that 
     such wage records are required by the State in carrying out 
     the State plan of the State or completing the annual report 
     described in subsection (d).
       (3) Confidentiality.--In carrying out the requirements of 
     this Act, the State shall comply with section 444 of the 
     General Education Provisions Act (20 U.S.C. 1232g).

       Subtitle B--Workforce Investment Activities and Providers

        CHAPTER 1--WORKFORCE INVESTMENT ACTIVITIES AND PROVIDERS

     SEC. 121. ESTABLISHMENT OF ONE-STOP DELIVERY SYSTEMS.

       (a) In General.--Consistent with an approved State plan, 
     the local board for a local area, with the agreement of the 
     chief elected official for the local area, shall--

[[Page 10918]]

       (1) develop and enter into the memorandum of understanding 
     described in subsection (c) with one-stop partners;
       (2) designate or certify one-stop operators under 
     subsection (d); and
       (3) conduct oversight with respect to the one-stop delivery 
     system in the local area.
       (b) One-stop Partners.--
       (1) Required partners.--
       (A) Roles and responsibilities of one-stop partners.--Each 
     entity that carries out a program or activities described in 
     subparagraph (B) in a local area shall--
       (i) provide access through the one-stop delivery system to 
     such program or activities carried out by the entity, 
     including making the career services described in section 
     134(c)(2) that are applicable to the program or activities 
     available at the one-stop centers (in addition to any other 
     appropriate locations);
       (ii) use a portion of the funds available for the program 
     and activities to maintain the one-stop delivery system, 
     including payment of the infrastructure costs of one-stop 
     centers in accordance with subsection (h);
       (iii) enter into a local memorandum of understanding with 
     the local board, relating to the operation of the one-stop 
     system, that meets the requirements of subsection (c);
       (iv) participate in the operation of the one-stop system 
     consistent with the terms of the memorandum of understanding, 
     the requirements of this title, and the requirements of the 
     Federal laws authorizing the program or activities; and
       (v) provide representation on the State board to the extent 
     provided under section 101.
       (B) Programs and activities.--The programs and activities 
     referred to in subparagraph (A) consist of--
       (i) programs authorized under this title;
       (ii) programs authorized under the Wagner-Peyser Act (29 
     U.S.C. 49 et seq.);
       (iii) adult education and literacy activities authorized 
     under title II;
       (iv) programs 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 title I of such Act (29 U.S.C. 
     732, 741);
       (v) activities authorized under title V of the Older 
     Americans Act of 1965 (42 U.S.C. 3056 et seq.);
       (vi) career and technical education programs at the 
     postsecondary level authorized under the Carl D. Perkins 
     Career and Technical Education Act of 2006 (20 U.S.C. 2301 et 
     seq.);
       (vii) activities authorized under chapter 2 of title II of 
     the Trade Act of 1974 (19 U.S.C. 2271 et seq.);
       (viii) activities authorized under chapter 41 of title 38, 
     United States Code;
       (ix) employment and training activities carried out under 
     the Community Services Block Grant Act (42 U.S.C. 9901 et 
     seq.);
       (x) employment and training activities carried out by the 
     Department of Housing and Urban Development;
       (xi) programs authorized under State unemployment 
     compensation laws (in accordance with applicable Federal 
     law);
       (xii) programs authorized under section 212 of the Second 
     Chance Act of 2007 (42 U.S.C. 17532); and
       (xiii) programs authorized under part A of title IV of the 
     Social Security Act (42 U.S.C. 601 et seq.), subject to 
     subparagraph (C).
       (C) Determination by the governor.--
       (i) In general.--An entity that carries out a program 
     referred to in subparagraph (B)(xiii) shall be included in 
     the one-stop partners for the local area, as a required 
     partner, for purposes of this Act and the other core program 
     provisions that are not part of this Act, unless the Governor 
     provides the notification described in clause (ii).
       (ii) Notification.--The notification referred to in clause 
     (i) is a notification that--

       (I) is made in writing of a determination by the Governor 
     not to include such entity in the one-stop partners described 
     in clause (i); and
       (II) is provided to the Secretary of Labor (referred to in 
     this subtitle, and subtitles C through E, as the 
     ``Secretary'') and the Secretary of Health and Human 
     Services.

       (2) Additional partners.--
       (A) In general.--With the approval of the local board and 
     chief elected official, in addition to the entities described 
     in paragraph (1), other entities that carry out workforce 
     development programs described in subparagraph (B) may be 
     one-stop partners for the local area and carry out the 
     responsibilities described in paragraph (1)(A).
       (B) Programs.--The programs referred to in subparagraph (A) 
     may include--
       (i) employment and training programs administered by the 
     Social Security Administration, including the Ticket to Work 
     and Self-Sufficiency Program established under section 1148 
     of the Social Security Act (42 U.S.C. 1320b-19);
       (ii) employment and training programs carried out by the 
     Small Business Administration;
       (iii) programs authorized under section 6(d)(4) of the Food 
     and Nutrition Act of 2008 (7 U.S.C. 2015(d)(4));
       (iv) work programs authorized under section 6(o) of the 
     Food and Nutrition Act of 2008 (7 U.S.C. 2015(o));
       (v) programs carried out under section 112 of the 
     Rehabilitation Act of 1973 (29 U.S.C. 732);
       (vi) programs authorized under the National and Community 
     Service Act of 1990 (42 U.S.C. 12501 et seq.); and
       (vii) other appropriate Federal, State, or local programs, 
     including employment, education, and training programs 
     provided by public libraries or in the private sector.
       (c) Memorandum of Understanding.--
       (1) Development.--The local board, with the agreement of 
     the chief elected official, shall develop and enter into a 
     memorandum of understanding (between the local board and the 
     one-stop partners), consistent with paragraph (2), concerning 
     the operation of the one-stop delivery system in the local 
     area.
       (2) Contents.--Each memorandum of understanding shall 
     contain--
       (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 and delivered through such system;
       (ii) how the costs of such services and the operating costs 
     of such system will be funded, including--

       (I) funding through cash and in-kind contributions (fairly 
     evaluated), which contributions may include funding from 
     philanthropic organizations or other private entities, or 
     through other alternative financing options, to provide a 
     stable and equitable funding stream for ongoing one-stop 
     delivery system operations; and
       (II) funding of the infrastructure costs of one-stop 
     centers in accordance with subsection (h);

       (iii) methods of referral of individuals between the one-
     stop operator and the one-stop partners for appropriate 
     services and activities;
       (iv) methods to ensure the needs of workers and youth, and 
     individuals with barriers to employment, including 
     individuals with disabilities, are addressed in the provision 
     of necessary and appropriate access to services, including 
     access to technology and materials, made available through 
     the one-stop delivery system; and
       (v) the duration of the memorandum of understanding and the 
     procedures for amending the memorandum during the duration 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; and
       (B) such other provisions, consistent with the requirements 
     of this title, as the parties to the agreement determine to 
     be appropriate.
       (d) One-stop Operators.--
       (1) Local designation and certification.--Consistent with 
     paragraphs (2) and (3), the local board, with the agreement 
     of the chief elected official, is authorized to designate or 
     certify one-stop operators and to terminate for cause the 
     eligibility of such operators.
       (2) Eligibility.--To be eligible to receive funds made 
     available under this subtitle to operate a one-stop center 
     referred to in subsection (e), an entity (which may be a 
     consortium of entities)--
       (A) shall be designated or certified as a one-stop operator 
     through a competitive process; and
       (B) shall be an entity (public, private, or nonprofit), or 
     consortium of entities (including a consortium of entities 
     that, at a minimum, includes 3 or more of the one-stop 
     partners described in subsection (b)(1)), of demonstrated 
     effectiveness, located in the local area, which may include--
       (i) an institution of higher education;
       (ii) an employment service State agency established under 
     the Wagner-Peyser Act (29 U.S.C. 49 et seq.), on behalf of 
     the local office of the agency;
       (iii) a community-based organization, nonprofit 
     organization, or intermediary;
       (iv) a private for-profit entity;
       (v) a government agency; and
       (vi) another interested organization or entity, which may 
     include a local chamber of commerce or other business 
     organization, or a labor organization.
       (3) Exception.--Elementary schools and secondary schools 
     shall not be eligible for designation or certification as 
     one-stop operators, except that nontraditional public 
     secondary schools and area career and technical education 
     schools may be eligible for such designation or 
     certification.
       (4) Additional requirements.--The State and local boards 
     shall ensure that in carrying out activities under this 
     title, one-stop operators--
       (A) disclose any potential conflicts of interest arising 
     from the relationships of the operators with particular 
     training service providers or other service providers;
       (B) do not establish practices that create disincentives to 
     providing services to individuals with barriers to employment 
     who may require longer-term services, such as intensive 
     employment, training, and education services; and
       (C) comply with Federal regulations, and procurement 
     policies, relating to the calculation and use of profits.
       (e) Establishment of One-stop Delivery System.--
       (1) In general.--There shall be established in each local 
     area in a State that receives an allotment under section 
     132(b) a one-stop delivery system, which shall--

[[Page 10919]]

       (A) provide the career services described in section 
     134(c)(2);
       (B) provide access to training services as described in 
     section 134(c)(3), including serving as the point of access 
     to training services for participants in accordance with 
     section 134(c)(3)(G);
       (C) provide access to the employment and training 
     activities carried out under section 134(d), if any;
       (D) provide access to programs and activities carried out 
     by one-stop partners described in subsection (b); and
       (E) provide access to the data, information, and analysis 
     described in section 15(a) of the Wagner-Peyser Act (29 
     U.S.C. 49l-2(a)) and all job search, placement, recruitment, 
     and other labor exchange services authorized under the 
     Wagner-Peyser Act (29 U.S.C. 49 et seq.).
       (2) One-stop delivery.--The one-stop delivery system--
       (A) at a minimum, shall make each of the programs, 
     services, and activities described in paragraph (1) 
     accessible at not less than 1 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 
     1 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 1 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 career services will be available 
     regardless of where the individuals initially enter the 
     statewide workforce development system, including information 
     made available through an access point described in subclause 
     (I);

       (C) may have specialized centers to address special needs, 
     such as the needs of dislocated workers, youth, or key 
     industry sectors or clusters; and
       (D) as applicable and practicable, shall make programs, 
     services, and activities accessible to individuals through 
     electronic means in a manner that improves efficiency, 
     coordination, and quality in the delivery of one-stop partner 
     services.
       (3) Colocation of wagner-peyser services.--Consistent with 
     section 3(d) of the Wagner-Peyser Act (29 U.S.C. 49b(d)), and 
     in order to improve service delivery, avoid duplication of 
     services, and enhance coordination of services, including 
     location of staff to ensure access to services in underserved 
     areas, the employment service offices in each State shall be 
     colocated with one-stop centers established under this title.
       (4) Use of common one-stop delivery system identifier.--In 
     addition to using any State or locally developed identifier, 
     each one-stop delivery system shall include in the 
     identification of products, programs, activities, services, 
     facilities, and related property and materials, a common one-
     stop delivery system identifier. The identifier shall be 
     developed by the Secretary, in consultation with heads of 
     other appropriate departments and agencies, and 
     representatives of State boards and local boards and of other 
     stakeholders in the one-stop delivery system, not later than 
     the beginning of the second full program year after the date 
     of enactment of this Act. Such common identifier may consist 
     of a logo, phrase, or other identifier that informs users of 
     the one-stop delivery system that such products, programs, 
     activities, services, facilities, property, or materials are 
     being provided through such system. Nothing in this paragraph 
     shall be construed to prohibit one-stop partners, States, or 
     local areas from having additional identifiers.
       (f) Application to Certain Vocational Rehabilitation 
     Programs.--
       (1) Limitation.--Nothing in this section shall be construed 
     to apply to part C of title I of the Rehabilitation Act of 
     1973 (29 U.S.C. 741).
       (2) Client assistance.--Nothing in this Act shall be 
     construed to require that any entity carrying out a client 
     assistance program authorized under section 112 of the 
     Rehabilitation Act of 1973 (29 U.S.C. 732)--
       (A) be included as a mandatory one-stop partner under 
     subsection (b)(1); or
       (B) if the entity is included as an additional one-stop 
     partner under subsection (b)(2)--
       (i) violate the requirement of section 112(c)(1)(A) of that 
     Act (29 U.S.C. 732(c)(1)(A)) that the entity be independent 
     of any agency that provides treatment, services, or 
     rehabilitation to individuals under that Act; or
       (ii) carry out any activity not authorized under section 
     112 of that Act (including appropriate Federal regulations).
       (g) Certification and Continuous Improvement of One-stop 
     Centers.--
       (1) In general.--In order to be eligible to receive 
     infrastructure funding described in subsection (h), the State 
     board, in consultation with chief elected officials and local 
     boards, shall establish objective criteria and procedures for 
     use by local boards in assessing at least once every 3 years 
     the effectiveness, physical and programmatic accessibility in 
     accordance with section 188, if applicable, and the Americans 
     with Disabilities Act of 1990 (42 U.S.C. 12101 et seq), and 
     continuous improvement of one-stop centers and the one-stop 
     delivery system, consistent with the requirements of section 
     101(d)(6).
       (2) Criteria.--The criteria and procedures developed under 
     this subsection shall include standards relating to service 
     coordination achieved by the one-stop delivery system with 
     respect to the programs administered by the one-stop partners 
     at the one-stop centers. Such criteria and procedures shall--
       (A) be developed in a manner that is consistent with the 
     guidelines, guidance, and policies provided by the Governor 
     and by the State board, in consultation with the chief 
     elected officials and local boards, for such partners' 
     participation under subsections (h)(1) and (i); and
       (B) include such factors relating to the effectiveness, 
     accessibility, and improvement of the one-stop delivery 
     system as the State board determines to be appropriate, 
     including at a minimum how well the one-stop center--
       (i) supports the achievement of the negotiated local levels 
     of performance for the indicators of performance described in 
     section 116(b)(2) for the local area;
       (ii) integrates available services; and
       (iii) meets the workforce development and employment needs 
     of local employers and participants.
       (3) Local criteria.--Consistent with the criteria developed 
     under paragraph (1) by the State, a local board in the State 
     may develop additional criteria (or higher levels of service 
     coordination than required for the State-developed criteria) 
     relating to service coordination achieved by the one-stop 
     delivery system, for purposes of assessments described in 
     paragraph (1), in order to respond to labor market, economic, 
     and demographic, conditions and trends in the local area.
       (4) Effect of certification.--One-stop centers certified 
     under this subsection shall be eligible to receive the 
     infrastructure funding described in subsection (h).
       (5) Review and update.--The criteria and procedures 
     established under this subsection shall be reviewed and 
     updated by the State board or the local board, as the case 
     may be, as part of the biennial process for review and 
     modification of State and local plans described in sections 
     102(c)(2) and 108(a).
       (h) Funding of One-stop Infrastructure.--
       (1) In general.--
       (A) Options for infrastructure funding.--
       (i) Local options.--The local board, chief elected 
     officials, and one-stop partners described in subsection 
     (b)(1) in a local area may fund the costs of infrastructure 
     of one-stop centers in the local area through--

       (I) methods agreed on by the local board, chief elected 
     officials, and one-stop partners (and described in the 
     memorandum of understanding described in subsection (c)); or
       (II) if no consensus agreement on methods is reached under 
     subclause (I), the State infrastructure funding mechanism 
     described in paragraph (2).

       (ii) Failure to reach consensus agreement on funding 
     methods.--Beginning July 1, 2016, if the local board, chief 
     elected officials, and one-stop partners described in 
     subsection (b)(1) in a local area fail to reach consensus 
     agreement on methods of sufficiently funding the costs of 
     infrastructure of one-stop centers for a program year, the 
     State infrastructure funding mechanism described in paragraph 
     (2) shall be applicable to such local area for that program 
     year and for each subsequent program year for which those 
     entities and individuals fail to reach such agreement.
       (B) Guidance for infrastructure funding.--In addition to 
     carrying out the requirements relating to the State 
     infrastructure funding mechanism described in paragraph (2), 
     the Governor, after consultation with chief elected 
     officials, local boards, and the State board, and consistent 
     with the guidance and policies provided by the State board 
     under subparagraphs (B) and (C)(i) of section 101(d)(7), 
     shall provide, for the use of local areas under subparagraph 
     (A)(i)(I)--
       (i) guidelines for State-administered one-stop partner 
     programs, for determining such programs' contributions to a 
     one-stop delivery system, based on such programs' 
     proportionate use of such system consistent with chapter II 
     of title 2, Code of Federal Regulations (or any corresponding 
     similar regulation or ruling), including determining funding 
     for the costs of infrastructure, which contributions shall be 
     negotiated pursuant to the memorandum of understanding under 
     subsection (c); and
       (ii) guidance to assist local boards, chief elected 
     officials, and one-stop partners in local areas in 
     determining equitable and stable methods of funding the costs 
     of infrastructure of one-stop centers in such areas.
       (2) State one-stop infrastructure funding.--
       (A) Definition.--In this paragraph, the term ``covered 
     portion'', used with respect to funding for a fiscal year for 
     a program described in subsection (b)(1), means a portion 
     determined under subparagraph (C) of the Federal funds 
     provided to a State (including local areas within the State) 
     under the Federal law authorizing that program described

[[Page 10920]]

     in subsection (b)(1) for the fiscal year (taking into account 
     the availability of funding for purposes related to 
     infrastructure from philanthropic organizations, private 
     entities, or other alternative financing options).
       (B) Partner contributions.--Subject to subparagraph (D), 
     for local areas in a State that are not covered by paragraph 
     (1)(A)(i)(I), the covered portions of funding for a fiscal 
     year shall be provided to the Governor from the programs 
     described in subsection (b)(1), to assist in paying the costs 
     of infrastructure of one-stop centers in those local areas of 
     the State not adequately funded under the option described in 
     paragraph (1)(A)(i)(I).
       (C) Determination of governor.--
       (i) In general.--Subject to clause (ii) and subparagraph 
     (D), the Governor, after consultation with chief elected 
     officials, local boards, and the State board, shall determine 
     the portion of funds to be provided under subparagraph (B) by 
     each one-stop partner from each program described in 
     subparagraph (B). In making such determination for the 
     purpose of determining funding contributions, for funding 
     pursuant to clause (i)(II) or (ii) of paragraph (1)(A) by 
     each partner, the Governor shall calculate amounts for the 
     proportionate use of the one-stop centers in the State, 
     consistent with chapter II of title 2, Code of Federal 
     Regulations (or any corresponding similar regulation or 
     ruling), taking into account the costs of administration of 
     the one-stop delivery system for purposes not related to one-
     stop centers, for each partner. The Governor shall exclude 
     from such determination of funds the amounts for 
     proportionate use of one-stop centers attributable to the 
     programs of one-stop partners for those local areas of the 
     State where the costs of infrastructure of one-stop centers 
     are funded under the option described in paragraph 
     (1)(A)(i)(I). The Governor shall also take into account the 
     statutory requirements for each partner program and the 
     partner program's ability to fulfill such requirements.
       (ii) Special rule.--In a State in which the State 
     constitution or a State statute places policymaking authority 
     that is independent of the authority of the Governor in an 
     entity or official with respect to the funds provided for 
     adult education and literacy activities authorized under 
     title II, 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.), or 
     vocational rehabilitation services offered under a provision 
     covered by section 3(13)(D), the determination described in 
     clause (i) with respect to the programs authorized under that 
     title, Act, or provision shall be made by the chief officer 
     of the entity, or the official, with such authority in 
     consultation with the Governor.
       (D) Limitations.--
       (i) Provision from administrative funds.--

       (I) In general.--Subject to subclause (II), the funds 
     provided under this paragraph by each one-stop partner shall 
     be provided only from funds available for the costs of 
     administration under the program administered by such 
     partner, and shall be subject to the program's limitations 
     with respect to the portion of funds under such program that 
     may be used for administration.
       (II) Exceptions.--Nothing in this clause shall be construed 
     to apply to the programs carried out under this title, or 
     under title V of the Older Americans Act of 1965 (42 U.S.C. 
     3056 et seq.).

       (ii) Cap on required contributions.--For local areas in a 
     State that are not covered by paragraph (1)(A)(i)(I), the 
     following rules shall apply:

       (I) Wia formula programs and employment service.--The 
     portion of funds required to be contributed under this 
     paragraph from a program authorized under chapter 2 or 3, or 
     the Wagner-Peyser Act (29 U.S.C. 49 et seq.) shall not exceed 
     3 percent of the amount of Federal funds provided to carry 
     out that program in the State for a fiscal year.
       (II) Other one-stop partners.--The portion of funds 
     required to be contributed under this paragraph from a 
     program described in subsection (b)(1) other than the 
     programs described in subclause (I) shall not exceed 1.5 
     percent of the amount of Federal funds provided to carry out 
     that program in the State for a fiscal year.
       (III) Vocational rehabilitation.--Notwithstanding 
     subclauses (I) and (II), an entity administering a program 
     described in subsection (b)(1)(B)(iv) shall not be required 
     to provide from that program, under this paragraph, a portion 
     that exceeds--

       (aa) 0.75 percent of the amount of Federal funds provided 
     to carry out such program in the State for the second full 
     program year that begins after the date of enactment of this 
     Act;
       (bb) 1.0 percent of the amount provided to carry out such 
     program in the State for the third full program year that 
     begins after such date;
       (cc) 1.25 percent of the amount provided to carry out such 
     program in the State for the fourth full program year that 
     begins after such date; and
       (dd) 1.5 percent of the amount provided to carry out such 
     program in the State for the fifth and each succeeding full 
     program year that begins after such date.
       (iii) Federal direct spending programs.--For local areas in 
     a State that are not covered by paragraph (1)(A)(i)(I), an 
     entity administering a program funded with direct spending as 
     defined in section 250(c)(8) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as in effect on 
     February 15, 2014 (2 U.S.C. 900(c)(8)) shall not be required 
     to provide, for purposes of this paragraph, an amount in 
     excess of the amount determined under subparagraph (C)(i) to 
     be equivalent to the cost of the proportionate use of the 
     one-stop centers for the one-stop partner for such program in 
     the State.
       (iv) Native american programs.--One-stop partners for 
     Native American programs established under section 166 shall 
     not be subject to the provisions of this subsection (other 
     than this clause) or subsection (i). For purposes of 
     subsection (c)(2)(A)(ii)(II), the method for determining the 
     appropriate portion of funds to be provided by such partners 
     to pay for the costs of infrastructure of a one-stop center 
     shall be determined as part of the development of the 
     memorandum of understanding under subsection (c) for the one-
     stop center and shall be stated in the memorandum.
       (E) Appeal by one-stop partners.--The Governor shall 
     establish a process, described under section 
     102(b)(2)(D)(i)(IV), for a one-stop partner administering a 
     program described in subsection (b)(1) to appeal a 
     determination regarding the portion of funds to be provided 
     under this paragraph. Such a determination may be appealed 
     under the process on the basis that such determination is 
     inconsistent with the requirements of this paragraph. Such 
     process shall ensure prompt resolution of the appeal in order 
     to ensure the funds are distributed in a timely manner, 
     consistent with the requirements of section 182(e).
       (3) Allocation by governor.--
       (A) In general.--From the funds provided under paragraph 
     (1), the Governor shall allocate the funds to local areas 
     described in subparagraph (B) in accordance with the formula 
     established under subparagraph (B) for the purposes of 
     assisting in paying the costs of infrastructure of one-stop 
     centers.
       (B) Allocation formula.--The State board shall develop a 
     formula to be used by the Governor to allocate the funds 
     provided under paragraph (1) to local areas not funding costs 
     of infrastructure under the option described in paragraph 
     (1)(A)(i)(I). The formula shall be based on factors including 
     the number of one-stop centers in a local area, the 
     population served by such centers, the services provided by 
     such centers, and other factors relating to the performance 
     of such centers that the State board determines are 
     appropriate.
       (4) Costs of infrastructure.--In this subsection, the term 
     ``costs of infrastructure'', used with respect to a one-stop 
     center, means the nonpersonnel costs that are necessary for 
     the general operation of the one-stop center, including the 
     rental costs of the facilities, the costs of utilities and 
     maintenance, equipment (including assessment-related products 
     and assistive technology for individuals with disabilities), 
     and technology to facilitate access to the one-stop center, 
     including the center's planning and outreach activities.
       (i) Other Funds.--
       (1) In general.--Subject to the memorandum of understanding 
     described in subsection (c) for the one-stop delivery system 
     involved, in addition to the funds provided to carry out 
     subsection (h), a portion of funds made available under 
     Federal law authorizing the programs described in subsection 
     (b) and administered by one-stop partners, or the noncash 
     resources available under such programs, shall be used to pay 
     the additional costs relating to the operation of the one-
     stop delivery system that are not paid from the funds 
     provided under subsection (h), as determined in accordance 
     with paragraph (3), to the extent not inconsistent with the 
     Federal law involved. Such costs shall include the costs of 
     the provision of career services described in section 
     134(c)(2) applicable to each program and may include common 
     costs that are not paid from the funds provided under 
     subsection (h).
       (2) Shared services.--The costs described under paragraph 
     (1) may include costs of services that are authorized for and 
     may be commonly provided through the one-stop partner 
     programs to any individual, such as initial intake, 
     assessment of needs, appraisal of basic skills, 
     identification of appropriate services to meet such needs, 
     referrals to other one-stop partners, and other similar 
     services.
       (3) Determination and guidance.--The method for determining 
     the appropriate portion of funds and noncash resources to be 
     provided by the one-stop partner for each program under 
     paragraph (1) for a one-stop center shall be determined as 
     part of the development of the memorandum of understanding 
     under subsection (c) for the one-stop center and shall be 
     stated in the memorandum. The State board shall provide 
     guidance to facilitate the determination, for purposes of the 
     memorandum of understanding, of an appropriate allocation of 
     the funds and noncash resources in local areas, consistent 
     with the requirements of section 101(d)(6)(C).

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

       (a) Eligibility.--

[[Page 10921]]

       (1) In general.--Except as provided in subsection (h), the 
     Governor, after consultation with the State board, shall 
     establish criteria, information requirements, and procedures 
     regarding the eligibility of providers of training services 
     to receive funds provided under section 133(b) for the 
     provision of training services in local areas in the State.
       (2) Providers.--Subject to the provisions of this section, 
     to be eligible to receive those funds for the provision of 
     training services, the provider shall be--
       (A) an institution of higher education that provides a 
     program that leads to a recognized postsecondary credential;
       (B) an entity that carries out programs registered 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, which may include joint labor-management 
     organizations, and eligible providers of adult education and 
     literacy activities under title II if such activities are 
     provided in combination with occupational skills training.
       (3) Inclusion in list of eligible providers.--A provider 
     described in subparagraph (A) or (C) of paragraph (2) shall 
     comply with the criteria, information requirements, and 
     procedures established under this section to be included on 
     the list of eligible providers of training services described 
     in subsection (d). A provider described in paragraph (2)(B) 
     shall be included and maintained on the list of eligible 
     providers of training services described in subsection (d) 
     for so long as the corresponding program of the provider 
     remains registered as described in paragraph (2)(B).
       (b) Criteria and Information Requirements.--
       (1) State criteria.--In establishing criteria pursuant to 
     subsection (a), the Governor shall take into account each of 
     the following:
       (A) The performance of providers of training services with 
     respect to--
       (i) the performance accountability measures and other 
     matters for which information is required under paragraph 
     (2); and
       (ii) other appropriate measures of performance outcomes 
     determined by the Governor for those participants receiving 
     training services under this subtitle (taking into 
     consideration the characteristics of the population served 
     and relevant economic conditions), and the outcomes of the 
     program through which those training services were provided 
     for students in general with respect to employment and 
     earnings as defined under section 116(b)(2).
       (B) The need to ensure access to training services 
     throughout the State, including in rural areas, and through 
     the use of technology.
       (C) Information reported to State agencies with respect to 
     Federal and State programs involving training services (other 
     than the program carried out under this subtitle), including 
     one-stop partner programs.
       (D) The degree to which the training programs of such 
     providers relate to in-demand industry sectors and 
     occupations in the State.
       (E) The requirements for State licensing of providers of 
     training services, and the licensing status of providers of 
     training services if applicable.
       (F) Ways in which the criteria can encourage, to the extent 
     practicable, the providers to use industry-recognized 
     certificates or certifications.
       (G) The ability of the providers to offer programs that 
     lead to recognized postsecondary credentials.
       (H) The quality of a program of training services, 
     including a program of training services that leads to a 
     recognized postsecondary credential.
       (I) The ability of the providers to provide training 
     services to individuals who are employed and individuals with 
     barriers to employment.
       (J) Such other factors as the Governor determines are 
     appropriate to ensure--
       (i) the accountability of the providers;
       (ii) that the one-stop centers in the State will ensure 
     that such providers meet the needs of local employers and 
     participants;
       (iii) the informed choice of participants among training 
     services providers; and
       (iv) that the collection of information required to 
     demonstrate compliance with the criteria is not unduly 
     burdensome or costly to providers.
       (2) State information requirements.--The information 
     requirements established by the Governor shall require that a 
     provider of training services submit appropriate, accurate, 
     and timely information to the State, to enable the State to 
     carry out subsection (d), with respect to participants 
     receiving training services under this subtitle in the 
     applicable program, including--
       (A) information on the performance of the provider with 
     respect to the performance accountability measures described 
     in section 116 for such participants (taking into 
     consideration the characteristics of the population served 
     and relevant economic conditions), and information specifying 
     the percentage of such participants who entered unsubsidized 
     employment in an occupation related to the program, to the 
     extent practicable;
       (B) information on recognized postsecondary credentials 
     received by such participants;
       (C) information on cost of attendance, including costs of 
     tuition and fees, for participants in the program;
       (D) information on the program completion rate for such 
     participants; and
       (E) information on the criteria described in paragraph (1).
       (3) Local criteria and information requirements.--A local 
     board in the State may establish criteria and information 
     requirements in addition to the criteria and information 
     requirements established by the Governor, or may require 
     higher levels of performance than required for the criteria 
     established by the Governor, for purposes of determining the 
     eligibility of providers of training services to receive 
     funds described in subsection (a) for the provision of 
     training services in the local area involved.
       (4) Criteria and information requirements to establish 
     initial eligibility.--
       (A) Purpose.--The purpose of this paragraph is to enable 
     the providers of programs carried out under chapter 3 to 
     offer the highest quality training services and be responsive 
     to in-demand and emerging industries by providing training 
     services for those industries.
       (B) Initial eligibility.--Providers may seek initial 
     eligibility under this paragraph as providers of training 
     services and may receive that initial eligibility for only 1 
     fiscal year for a particular program. The criteria and 
     information requirements established by the Governor under 
     this paragraph shall require that a provider who has not 
     previously been an eligible provider of training services 
     under this section (or section 122 of the Workforce 
     Investment Act of 1998, as in effect on the day before the 
     date of enactment of this Act) provide the information 
     described in subparagraph (C).
       (C) Information.--The provider shall provide verifiable 
     program-specific performance information based on criteria 
     established by the State as described in subparagraph (D) 
     that supports the provider's ability to serve participants 
     under this subtitle.
       (D) Criteria.--The criteria described in subparagraph (C) 
     shall include at least--
       (i) a factor related to indicators described in section 
     116;
       (ii) a factor concerning whether the provider is in a 
     partnership with business;
       (iii) other factors that indicate high-quality training 
     services, including the factor described in paragraph (1)(H); 
     and
       (iv) a factor concerning alignment of the training services 
     with in-demand industry sectors and occupations, to the 
     extent practicable.
       (E) Provision.--The provider shall provide the information 
     described in subparagraph (C) to the Governor and the local 
     board in a manner that will permit the Governor and the local 
     board to make a decision on inclusion of the provider on the 
     list of eligible providers described in subsection (d).
       (F) Limitation.--A provider that receives initial 
     eligibility under this paragraph for a program shall be 
     subject to the requirements under subsection (c) for that 
     program after such initial eligibility expires.
       (c) Procedures.--
       (1) Application procedures.--The procedures established 
     under subsection (a) shall identify the application process 
     for a provider of training services to become eligible to 
     receive funds provided under section 133(b) for the provision 
     of training services. The procedures shall identify the 
     respective roles of the State and local areas in receiving 
     and reviewing the applications and in making determinations 
     of such eligibility based on the criteria, information, and 
     procedures established under this section. The procedures 
     shall also establish a process for a provider of training 
     services to appeal a denial or termination of eligibility 
     under this section that includes an opportunity for a hearing 
     and prescribes appropriate time limits to ensure prompt 
     resolution of the appeal.
       (2) Renewal procedures.--The procedures established by the 
     Governor shall also provide for biennial review and renewal 
     of eligibility under this section for providers of training 
     services.
       (d) List and Information to Assist Participants in Choosing 
     Providers.--
       (1) In general.--In order to facilitate and assist 
     participants in choosing employment and training activities 
     and in choosing providers of training services, the Governor 
     shall ensure that an appropriate list of providers determined 
     to be eligible under this section to offer a program in the 
     State (and, as appropriate, in a local area), accompanied by 
     information identifying the recognized postsecondary 
     credential offered by the provider and other appropriate 
     information, is prepared. The list shall be provided to the 
     local boards in the State, and made available to such 
     participants and to members of the public through the one-
     stop delivery system in the State.
       (2) Accompanying information.--The accompanying information 
     shall--
       (A) with respect to providers described in subparagraphs 
     (A) and (C) of subsection (a)(2), consist of information 
     provided by such providers, disaggregated by local areas 
     served, as applicable, in accordance with subsection (b);

[[Page 10922]]

       (B) with respect to providers described in subsection 
     (b)(4), consist of information provided by such providers in 
     accordance with subsection (b)(4); and
       (C) such other information as the Governor determines to be 
     appropriate.
       (3) Availability.--The list and the accompanying 
     information shall be made available to such participants and 
     to members of the public through the one-stop delivery system 
     in the State, in a manner that does not reveal personally 
     identifiable information about an individual participant.
       (4) Limitation.--In carrying out the requirements of this 
     subsection, no personally identifiable information regarding 
     a student, including a Social Security number, student 
     identification number, or other identifier, may be disclosed 
     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).
       (e) Opportunity to Submit Comments.--In establishing, under 
     this section, criteria, information requirements, procedures, 
     and the list of eligible providers described in subsection 
     (d), the Governor shall provide an opportunity for interested 
     members of the public to make recommendations and submit 
     comments regarding such criteria, information requirements, 
     procedures, and list.
       (f) 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, 
     violated this section (or section 122 of the Workforce 
     Investment Act of 1998, as in effect on the day before the 
     date of enactment of this Act) by intentionally supplying 
     inaccurate information under this section, the eligibility of 
     such provider to receive funds under chapter 3 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 (or title I of the Workforce 
     Investment Act of 1998, as in effect on the day before such 
     date of enactment), the eligibility of such provider to 
     receive funds under chapter 3 for the program involved shall 
     be terminated for a period of not less than 2 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 
     of subtitle B of title I of the Workforce Investment Act of 
     1998, as in effect on the day before such date of enactment, 
     or chapter 3 of this subtitle during a period of violation 
     described in such subparagraph.
       (2) Construction.--Paragraph (1) shall be construed to 
     provide remedies and penalties that supplement, but shall not 
     supplant, civil and criminal remedies and penalties specified 
     in other provisions of law.
       (g) Agreements With Other States.--States may enter into 
     agreements, on a reciprocal basis, to permit eligible 
     providers of training services to accept individual training 
     accounts provided in another State.
       (h) On-the-job Training, Customized Training, Incumbent 
     Worker Training, and Other Training Exceptions.--
       (1) In general.--Providers of on-the-job training, 
     customized training, incumbent worker training, internships, 
     and paid or unpaid work experience opportunities, or 
     transitional employment shall not be subject to the 
     requirements of subsections (a) through (f).
       (2) Collection and dissemination of information.--A one-
     stop operator in a local area shall collect such performance 
     information from providers of on-the-job training, customized 
     training, incumbent worker training, internships, paid or 
     unpaid work experience opportunities, and transitional 
     employment as the Governor may require, and use the 
     information to determine whether the providers meet such 
     performance criteria as the Governor may require. The one-
     stop operator shall disseminate information identifying such 
     providers that meet the criteria as eligible providers, and 
     the performance information, through the one-stop delivery 
     system. Providers determined to meet the criteria shall be 
     considered to be identified as eligible providers of training 
     services.
       (i) Transition Period for Implementation.--The Governor and 
     local boards shall implement the requirements of this section 
     not later than 12 months after the date of enactment of this 
     Act. In order to facilitate early implementation of this 
     section, the Governor may establish transition procedures 
     under which providers eligible to provide training services 
     under chapter 5 of subtitle B of title I of the Workforce 
     Investment Act of 1998, as such chapter was in effect on the 
     day before the date of enactment of this Act, may continue to 
     be eligible to provide such services until December 31, 2015, 
     or until such earlier date as the Governor determines to be 
     appropriate.

     SEC. 123. ELIGIBLE PROVIDERS OF YOUTH WORKFORCE INVESTMENT 
                   ACTIVITIES.

       (a) In General.--From the funds allocated under section 
     128(b) to a local area, the local board for such area shall 
     award grants or contracts on a competitive basis to providers 
     of youth workforce investment activities identified based on 
     the criteria in the State plan (including such quality 
     criteria as the Governor shall establish for a training 
     program that leads to a recognized postsecondary credential), 
     and taking into consideration the ability of the providers to 
     meet performance accountability measures based on primary 
     indicators of performance for the youth program as described 
     in section 116(b)(2)(A)(ii)), as described in section 
     102(b)(2)(D)(i)(V), and shall conduct oversight with respect 
     to such providers.
       (b) Exceptions.--A local board may award grants or 
     contracts on a sole-source basis if such board determines 
     there is an insufficient number of eligible providers of 
     youth workforce investment activities in the local area 
     involved (such as a rural area) for grants and contracts to 
     be awarded on a competitive basis under subsection (a).

            CHAPTER 2--YOUTH WORKFORCE INVESTMENT ACTIVITIES

     SEC. 126. GENERAL AUTHORIZATION.

       The Secretary shall make an allotment under section 
     127(b)(1)(C) to each State that meets the requirements of 
     section 102 or 103 and a grant under section 127(b)(1)(B) to 
     each outlying area that complies with the requirements of 
     this title, to assist the State or outlying area, and to 
     enable the State or outlying area to assist local areas, for 
     the purpose of providing workforce investment activities for 
     eligible youth in the State or outlying area and in the local 
     areas.

     SEC. 127. STATE ALLOTMENTS.

       (a) In General.--The Secretary shall--
       (1) for each fiscal year for which the amount appropriated 
     under section 136(a) exceeds $925,000,000, reserve 4 percent 
     of the excess amount to provide youth workforce investment 
     activities under section 167 (relating to migrant and 
     seasonal farmworkers); and
       (2) use the remainder of the amount appropriated under 
     section 136(a) for a fiscal year to make allotments and 
     grants in accordance with subsection (b).
       (b) Allotment Among States.--
       (1) Youth workforce investment activities.--
       (A) Native americans.--From the amount appropriated under 
     section 136(a) for a fiscal year that is not reserved under 
     subsection (a)(1), the Secretary shall reserve not more than 
     1 \1/2\ percent of such amount to provide youth workforce 
     investment activities under section 166 (relating to Native 
     Americans).
       (B) Outlying areas.--
       (i) In general.--From the amount appropriated under section 
     136(a) for each fiscal year that is not reserved under 
     subsection (a)(1) and subparagraph (A), the Secretary shall 
     reserve not more than \1/4\ of 1 percent of such amount to 
     provide assistance to the outlying areas to carry out youth 
     workforce investment activities and statewide workforce 
     investment activities.
       (ii) Limitation for outlying areas.--

       (I) Competitive grants.--The Secretary shall use funds 
     reserved under clause (i) to award grants to outlying areas 
     to carry out youth workforce investment activities and 
     statewide workforce investment activities.
       (II) Award basis.--The Secretary shall award grants 
     pursuant to subclause (I) on a competitive basis and pursuant 
     to the recommendations of experts in the field of employment 
     and training, working through the Pacific Region Educational 
     Laboratory in Honolulu, Hawaii.
       (III) Administrative costs.--The Secretary may provide not 
     more than 5 percent of the funds made available for grants 
     under subclause (I) to pay the administrative costs of the 
     Pacific Region Educational Laboratory in Honolulu, Hawaii, 
     regarding activities assisted under this clause.

       (iii) Additional requirement.--The provisions of section 
     501 of Public Law 95-134 (48 U.S.C. 1469a), permitting the 
     consolidation of grants by the outlying areas, shall not 
     apply to assistance provided to those areas, including Palau, 
     under this subparagraph.
       (C) States.--
       (i) In general.--From the remainder of the amount 
     appropriated under section 136(a) for a fiscal year that 
     exists after the Secretary determines the amounts to be 
     reserved under subsection (a)(1) and subparagraphs (A) and 
     (B), the Secretary shall make allotments to the States in 
     accordance with clause (ii) for youth workforce investment 
     activities and statewide workforce investment activities.
       (ii) Formula.--Subject to clauses (iii) and (iv), of the 
     remainder--

       (I) 33\1/3\ 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) 33\1/3\ percent shall be allotted on the basis of the 
     relative excess number of unemployed individuals in each 
     State, compared to the total excess number of unemployed 
     individuals in all States; and
       (III) 33\1/3\ percent shall be allotted on the basis of the 
     relative number of disadvantaged youth in each State, 
     compared to the total number of disadvantaged youth in all 
     States, except as described in clause (iii).

       (iii) Calculation.--In determining an allotment under 
     clause (ii)(III) for any State

[[Page 10923]]

     in which there is an area that was designated as a local area 
     as described in section 107(c)(1)(C), the allotment shall be 
     based on the higher of--

       (I) the number of individuals who are age 16 through 21 in 
     families with an income below the low-income level in such 
     area; or
       (II) the number of disadvantaged youth in such area.

       (iv) Minimum and maximum percentages and minimum 
     allotments.--In making allotments under this subparagraph, 
     the Secretary shall ensure the following:

       (I) Minimum percentage and allotment.--Subject to subclause 
     (IV), the Secretary shall ensure that no State shall receive 
     an allotment for a fiscal year that is less than the greater 
     of--

       (aa) an amount based on 90 percent of the allotment 
     percentage of the State for the preceding fiscal year; or
       (bb) 100 percent of the allotments of the State under 
     section 127(b)(1)(C) of the Workforce Investment Act of 1998 
     (as in effect on the day before the date of enactment of this 
     Act) for fiscal year 2014.

       (II) Small state minimum allotment.--Subject to subclauses 
     (I), (III), and (IV), the Secretary shall ensure that no 
     State shall receive an allotment under this subparagraph that 
     is less than the total of--

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

       (III) Maximum percentage.--Subject to subclause (I), the 
     Secretary shall ensure that no State shall receive an 
     allotment percentage for a fiscal year that is more than 130 
     percent of the allotment percentage of the State for the 
     preceding fiscal year.
       (IV) Minimum funding.--In any fiscal year in which the 
     remainder described in clause (i) does not exceed 
     $1,000,000,000, the minimum allotments under subclauses (I) 
     and (II) shall be calculated by the methodology specified in 
     section 127(b)(1)(C)(iv)(IV) of the Workforce Investment Act 
     of 1998 (as in effect on the day before the date of enactment 
     of this Act).

       (2) Definitions.--For the purpose of the formula specified 
     in paragraph (1)(C):
       (A) Allotment percentage.--The term ``allotment 
     percentage'', used with respect to fiscal year 2015 or a 
     subsequent fiscal year, means a percentage of the remainder 
     described in paragraph (1)(C)(i) that is received through an 
     allotment made under paragraph (1)(C) for the fiscal year. 
     The term, used with respect to fiscal year 2014, means the 
     percentage of the amount allotted to States under section 
     127(b)(1)(C) of the Workforce Investment Act of 1998 (as in 
     effect on the day before the date of enactment of this Act) 
     that is received under such section by the State involved for 
     fiscal year 2014.
       (B) 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 6.5 
     percent for the most recent 12 months, as determined by the 
     Secretary. For purposes of this subparagraph, determinations 
     of areas of substantial unemployment shall be made once each 
     fiscal year.
       (C) Disadvantaged youth.--Subject to paragraph (3), the 
     term ``disadvantaged youth'' means an individual who is age 
     16 through 21 who received an income, or is a member of a 
     family that received a total family income, that, in relation 
     to family size, does not exceed the higher of--
       (i) the poverty line; or
       (ii) 70 percent of the lower living standard income level.
       (D) Excess number.--The term ``excess number'' means, used 
     with respect to the excess number of unemployed individuals 
     within a State, the higher of--
       (i) the number that represents the number of unemployed 
     individuals in excess of 4.5 percent of the civilian labor 
     force in the State; or
       (ii) the number that represents the number of unemployed 
     individuals in excess of 4.5 percent of the civilian labor 
     force in areas of substantial unemployment in such State.
       (E) Low-income level.--The term ``low-income level'' means 
     $7,000 with respect to income in 1969, and for any later year 
     means that amount that bears the same relationship to $7,000 
     as the Consumer Price Index for that year bears to the 
     Consumer Price Index for 1969, rounded to the nearest $1,000.
       (3) Special rule.--For the purpose of the formula specified 
     in paragraph (1)(C), the Secretary shall, as appropriate and 
     to the extent practicable, exclude college students and 
     members of the Armed Forces from the determination of the 
     number of disadvantaged youth.
       (c) Reallotment.--
       (1) In general.--The Secretary shall, in accordance with 
     this subsection, reallot to eligible States amounts that are 
     made available to States from allotments made under this 
     section or a corresponding provision of the Workforce 
     Investment Act of 1998 for youth workforce investment 
     activities and statewide workforce investment activities 
     (referred to individually in this subsection as a ``State 
     allotment'') and that are available for reallotment.
       (2) Amount.--The amount available for reallotment for a 
     program year is equal to the amount by which the unobligated 
     balance of the State allotment, at the end of the program 
     year prior to the program year for which the determination 
     under this paragraph is made, exceeds 20 percent of such 
     allotment for the prior program year.
       (3) Reallotment.--In making reallotments to eligible States 
     of amounts available pursuant to paragraph (2) for a program 
     year, the Secretary shall allot to each eligible State an 
     amount based on the relative amount of the State allotment 
     for the program year for which the determination is made, as 
     compared to the total amount of the State allotments for all 
     eligible States for such program year.
       (4) Eligibility.--For purposes of this subsection, an 
     eligible State means a State that does not have an amount 
     available for reallotment under paragraph (2) for the program 
     year for which the determination under paragraph (2) is made.
       (5) Procedures.--The Governor shall prescribe uniform 
     procedures for the obligation of funds by local areas within 
     the State in order to avoid the requirement that funds be 
     made available for reallotment under this subsection. The 
     Governor shall further prescribe equitable procedures for 
     making funds available from the State and local areas in the 
     event that a State is required to make funds available for 
     reallotment under this subsection.

     SEC. 128. WITHIN STATE ALLOCATIONS.

       (a) Reservations for Statewide Activities.--
       (1) In general.--The Governor shall reserve not more than 
     15 percent of each of the amounts allotted to the State under 
     section 127(b)(1)(C) and paragraphs (1)(B) and (2)(B) of 
     section 132(b) for a fiscal year for statewide workforce 
     investment activities.
       (2) Use of funds.--Regardless of whether the reserved 
     amounts were allotted under section 127(b)(1)(C), or under 
     paragraph (1)(B) or (2)(B) of section 132(b), the Governor 
     may use the reserved amounts to carry out statewide 
     activities under section 129(b) or statewide employment and 
     training activities, for adults or dislocated workers, under 
     section 134(a).
       (b) Within State Allocations.--
       (1) Methods.--The Governor, acting in accordance with the 
     State plan, and after consulting with chief elected officials 
     and local boards in the local areas, shall allocate the funds 
     that are allotted to the State for youth activities and 
     statewide workforce investment activities under section 
     127(b)(1)(C) and are not reserved under subsection (a), in 
     accordance with paragraph (2) or (3).
       (2) Formula allocation.--
       (A) Youth activities.--
       (i) Allocation.--In allocating the funds described in 
     paragraph (1) to local areas, a State may allocate--

       (I) 33\1/3\ percent of the funds on the basis described in 
     section 127(b)(1)(C)(ii)(I);
       (II) 33\1/3\ percent of the funds on the basis described in 
     section 127(b)(1)(C)(ii)(II); and
       (III) 33\1/3\ percent of the funds on the basis described 
     in clauses (ii)(III) and (iii) of section 127(b)(1)(C).

       (ii) Minimum percentage.--The local area shall not receive 
     an allocation percentage for a fiscal year that is less than 
     90 percent of the average allocation percentage of the local 
     area for the 2 preceding fiscal years. Amounts necessary for 
     increasing such allocations to local areas to comply with the 
     preceding sentence shall be obtained by ratably reducing the 
     allocations to be made to other local areas under this 
     subparagraph.
       (iii) Definition.--In this subparagraph, the term 
     ``allocation percentage'', used with respect to fiscal year 
     2015 or a subsequent fiscal year, means a percentage of the 
     funds referred to in clause (i), received through an 
     allocation made under this subparagraph, for the fiscal year. 
     The term, used with respect to fiscal year 2013 or 2014, 
     means a percentage of the funds referred to in section 
     128(b)(1) of the Workforce Investment Act of 1998 (as in 
     effect on the day before the date of enactment of this Act), 
     received through an allocation made under paragraph (2) or 
     (3) of section 128(b) of the Workforce Investment Act of 1998 
     (as so in effect), for the fiscal year 2013 or 2014, 
     respectively.
       (B) Application.--For purposes of carrying out subparagraph 
     (A)--
       (i) references in section 127(b) to a State shall be deemed 
     to be references to a local area;
       (ii) references in section 127(b) to all States shall be 
     deemed to be references to all local areas in the State 
     involved; and
       (iii) except as described in clause (i), references in 
     section 127(b)(1) to the term ``excess number'' shall be 
     considered to be references to the term as defined in section 
     127(b)(2).
       (3) Youth discretionary allocation.--In lieu of making the 
     allocation described in paragraph (2), in allocating the 
     funds described in paragraph (1) to local areas, a State may 
     distribute--
       (A) a portion equal to not less than 70 percent of the 
     funds in accordance with paragraph (2)(A); and
       (B) the remaining portion of the funds on the basis of a 
     formula that--

[[Page 10924]]

       (i) incorporates additional factors (other than the factors 
     described in paragraph (2)(A)) relating to--

       (I) excess youth poverty in urban, rural, and suburban 
     local areas; and
       (II) excess unemployment above the State average in urban, 
     rural, and suburban local areas; and

       (ii) was developed by the State board and approved by the 
     Secretary as part of the State plan.
       (4) Local administrative cost limit.--
       (A) In general.--Of the amount allocated to a local area 
     under this subsection and section 133(b) for a fiscal year, 
     not more than 10 percent of the amount may be used by the 
     local board involved for the administrative costs of carrying 
     out local workforce investment activities under this chapter 
     or chapter 3.
       (B) Use of funds.--Funds made available for administrative 
     costs under subparagraph (A) may be used for the 
     administrative costs of any of the local workforce investment 
     activities described in this chapter or chapter 3, regardless 
     of whether the funds were allocated under this subsection or 
     section 133(b).
       (c) Reallocation Among Local Areas.--
       (1) In general.--The Governor may, in accordance with this 
     subsection and after consultation with the State board, 
     reallocate to eligible local areas within the State amounts 
     that are made available to local areas from allocations made 
     under this section or a corresponding provision of the 
     Workforce Investment Act of 1998 for youth workforce 
     investment activities (referred to individually in this 
     subsection as a ``local allocation'') and that are available 
     for reallocation.
       (2) Amount.--The amount available for reallocation for a 
     program year is equal to the amount by which the unobligated 
     balance of the local allocation, at the end of the program 
     year prior to the program year for which the determination 
     under this paragraph is made, exceeds 20 percent of such 
     allocation for the prior program year.
       (3) Reallocation.--In making reallocations to eligible 
     local areas of amounts available pursuant to paragraph (2) 
     for a program year, the Governor shall allocate to each 
     eligible local area within the State an amount based on the 
     relative amount of the local allocation for the program year 
     for which the determination is made, as compared to the total 
     amount of the local allocations for all eligible local areas 
     in the State for such program year.
       (4) Eligibility.--For purposes of this subsection, an 
     eligible local area means a local area that does not have an 
     amount available for reallocation under paragraph (2) for the 
     program year for which the determination under paragraph (2) 
     is made.

     SEC. 129. USE OF FUNDS FOR YOUTH WORKFORCE INVESTMENT 
                   ACTIVITIES.

       (a) Youth Participant Eligibility.--
       (1) Eligibility.--
       (A) In general.--To be eligible to participate in 
     activities carried out under this chapter during any program 
     year an individual shall, at the time the eligibility 
     determination is made, be an out-of-school youth or an in-
     school youth.
       (B) Out-of-school youth.--In this title, the term ``out-of-
     school youth'' means an individual who is--
       (i) not attending any school (as defined under State law);
       (ii) not younger than age 16 or older than age 24; and
       (iii) one or more of the following:

       (I) A school dropout.
       (II) A youth who is within the age of compulsory school 
     attendance, but has not attended school for at least the most 
     recent complete school year calendar quarter.
       (III) A recipient of a secondary school diploma or its 
     recognized equivalent who is a low-income individual and is--

       (aa) basic skills deficient; or
       (bb) an English language learner.

       (IV) An individual who is subject to the juvenile or adult 
     justice system.
       (V) A homeless individual (as defined in section 41403(6) 
     of the Violence Against Women Act of 1994 (42 U.S.C. 14043e-
     2(6))), a homeless child or youth (as defined in section 
     725(2) of the McKinney-Vento Homeless Assistance Act (42 
     U.S.C. 11434a(2))), a runaway, in foster care or has aged out 
     of the foster care system, a child eligible for assistance 
     under section 477 of the Social Security Act (42 U.S.C. 677), 
     or in an out-of-home placement.
       (VI) An individual who is pregnant or parenting.
       (VII) A youth who is an individual with a disability.
       (VIII) A low-income individual who requires additional 
     assistance to enter or complete an educational program or to 
     secure or hold employment.

       (C) In-school youth.--In this section, the term ``in-school 
     youth'' means an individual who is--
       (i) attending school (as defined by State law);
       (ii) not younger than age 14 or (unless an individual with 
     a disability who is attending school under State law) older 
     than age 21;
       (iii) a low-income individual; and
       (iv) one or more of the following:

       (I) Basic skills deficient.
       (II) An English language learner.
       (III) An offender.
       (IV) A homeless individual (as defined in section 41403(6) 
     of the Violence Against Women Act of 1994 (42 U.S.C. 14043e-
     2(6))), a homeless child or youth (as defined in section 
     725(2) of the McKinney-Vento Homeless Assistance Act (42 
     U.S.C. 11434a(2))), a runaway, in foster care or has aged out 
     of the foster care system, a child eligible for assistance 
     under section 477 of the Social Security Act (42 U.S.C. 677), 
     or in an out-of-home placement.
       (V) Pregnant or parenting.
       (VI) A youth who is an individual with a disability.
       (VII) An individual who requires additional assistance to 
     complete an educational program or to secure or hold 
     employment.

       (2) Special rule.--For the purpose of this subsection, the 
     term ``low-income'', used with respect to an individual, also 
     includes a youth living in a high-poverty area.
       (3) Exception and limitation.--
       (A) Exception for persons who are not low-income 
     individuals.--
       (i) Definition.--In this subparagraph, the term ``covered 
     individual'' means an in-school youth, or an out-of-school 
     youth who is described in subclause (III) or (VIII) of 
     paragraph (1)(B)(iii).
       (ii) Exception.--In each local area, not more than 5 
     percent of the individuals assisted under this section may be 
     persons who would be covered individuals, except that the 
     persons are not low-income individuals.
       (B) Limitation.--In each local area, not more than 5 
     percent of the in-school youth assisted under this section 
     may be eligible under paragraph (1) because the youth are in-
     school youth described in paragraph (1)(C)(iv)(VII).
       (4) Out-of-school priority.--
       (A) In general.--For any program year, not less than 75 
     percent of the funds available for statewide activities under 
     subsection (b), and not less than 75 percent of funds 
     available to local areas under subsection (c), shall be used 
     to provide youth workforce investment activities for out-of-
     school youth.
       (B) Exception.--A State that receives a minimum allotment 
     under section 127(b)(1) in accordance with section 
     127(b)(1)(C)(iv) or under section 132(b)(1) in accordance 
     with section 132(b)(1)(B)(iv) may decrease the percentage 
     described in subparagraph (A) to not less than 50 percent for 
     a local area in the State, if--
       (i) after an analysis of the in-school youth and out-of-
     school youth populations in the local area, the State 
     determines that the local area will be unable to use at least 
     75 percent of the funds available for activities under 
     subsection (c) to serve out-of-school youth due to a low 
     number of out-of-school youth; and
       (ii)(I) the State submits to the Secretary, for the local 
     area, a request including a proposed percentage decreased to 
     not less than 50 percent for purposes of subparagraph (A), 
     and a summary of the analysis described in clause (i); and
       (II) the request is approved by the Secretary.
       (5) Consistency with compulsory school attendance laws.--In 
     providing assistance under this section to an individual who 
     is required to attend school under applicable State 
     compulsory school attendance laws, the priority in providing 
     such assistance shall be for the individual to attend school 
     regularly.
       (b) Statewide Activities.--
       (1) Required statewide youth activities.--Funds reserved by 
     a Governor as described in sections 128(a) and 133(a)(1) 
     shall be used, regardless of whether the funds were allotted 
     to the State under section 127(b)(1)(C) or under paragraph 
     (1)(B) or (2)(B) of section 132(b) for statewide activities, 
     which shall include--
       (A) conducting evaluations under section 116(e) of 
     activities authorized under this chapter and chapter 3 in 
     coordination with evaluations carried out by the Secretary 
     under section 169(a);
       (B) disseminating a list of eligible providers of youth 
     workforce investment activities, as determined under section 
     123;
       (C) providing assistance to local areas as described in 
     subsections (b)(6) and (c)(2) of section 106, for local 
     coordination of activities carried out under this title;
       (D) operating a fiscal and management accountability 
     information system under section 116(i);
       (E) carrying out monitoring and oversight of activities 
     carried out under this chapter and chapter 3, which may 
     include a review comparing the services provided to male and 
     female youth; and
       (F) providing additional assistance to local areas that 
     have high concentrations of eligible youth.
       (2) Allowable statewide youth activities.--Funds reserved 
     by a Governor as described in sections 128(a) and 133(a)(1) 
     may be used, regardless of whether the funds were allotted to 
     the State under section 127(b)(1)(C) or under paragraph 
     (1)(B) or (2)(B) of section 132(b), for statewide activities, 
     which may include--
       (A) conducting--
       (i) research related to meeting the education and 
     employment needs of eligible youth; and
       (ii) demonstration projects related to meeting the 
     education and employment needs of eligible youth;

[[Page 10925]]

       (B) supporting the development of alternative, evidence-
     based programs and other activities that enhance the choices 
     available to eligible youth and encourage such youth to 
     reenter and complete secondary education, enroll in 
     postsecondary education and advanced training, progress 
     through a career pathway, and enter into unsubsidized 
     employment that leads to economic self-sufficiency;
       (C) supporting the provision of career services described 
     in section 134(c)(2) in the one-stop delivery system in the 
     State;
       (D) supporting financial literacy, including--
       (i) supporting the ability of participants to create 
     household budgets, initiate savings plans, and make informed 
     financial decisions about education, retirement, home 
     ownership, wealth building, or other savings goals;
       (ii) supporting the ability to manage spending, credit, and 
     debt, including credit card debt, effectively;
       (iii) increasing awareness of the availability and 
     significance of credit reports and credit scores in obtaining 
     credit, including determining their accuracy (and how to 
     correct inaccuracies in the reports and scores), and their 
     effect on credit terms;
       (iv) supporting the ability to understand, evaluate, and 
     compare financial products, services, and opportunities; and
       (v) supporting activities that address the particular 
     financial literacy needs of non-English speakers, including 
     providing the support through the development and 
     distribution of multilingual financial literacy and education 
     materials; and
       (E) providing technical assistance to, as appropriate, 
     local boards, chief elected officials, one-stop operators, 
     one-stop partners, and eligible providers, in local areas, 
     which provision of technical assistance shall include the 
     development and training of staff, the development of 
     exemplary program activities, the provision of technical 
     assistance to local areas that fail to meet local performance 
     accountability measures described in section 116(c), and the 
     provision of technology to facilitate remote access to 
     services provided through the one-stop delivery system in the 
     State.
       (3) Limitation.--Not more than 5 percent of the funds 
     allotted to a State under section 127(b)(1)(C) shall be used 
     by the State for administrative activities carried out under 
     this subsection or section 134(a).
       (c) Local Elements and Requirements.--
       (1) Program design.--Funds allocated to a local area for 
     eligible youth under section 128(b) shall be used to carry 
     out, for eligible youth, programs that--
       (A) provide an objective assessment of the academic levels, 
     skill levels, and service needs of each participant, which 
     assessment shall include a review of basic skills, 
     occupational skills, prior work experience, employability, 
     interests, aptitudes (including interests and aptitudes for 
     nontraditional jobs), supportive service needs, and 
     developmental needs of such participant, for the purpose of 
     identifying appropriate services and career pathways for 
     participants, except that a new assessment of a participant 
     is not required if the provider carrying out such a program 
     determines it is appropriate to use a recent assessment of 
     the participant conducted pursuant to another education or 
     training program;
       (B) develop service strategies for each participant that 
     are directly linked to 1 or more of the indicators of 
     performance described in section 116(b)(2)(A)(ii), and that 
     shall identify career pathways that include education and 
     employment goals (including, in appropriate circumstances, 
     nontraditional employment), appropriate achievement 
     objectives, and appropriate services for the participant 
     taking into account the assessment conducted pursuant to 
     subparagraph (A), except that a new service strategy for a 
     participant is not required if the provider carrying out such 
     a program determines it is appropriate to use a recent 
     service strategy developed for the participant under another 
     education or training program;
       (C) provide--
       (i) activities leading to the attainment of a secondary 
     school diploma or its recognized equivalent, or a recognized 
     postsecondary credential;
       (ii) preparation for postsecondary educational and training 
     opportunities;
       (iii) strong linkages between academic instruction (based 
     on State academic content and student academic achievement 
     standards established under section 1111 of the Elementary 
     and Secondary Education Act of 1965 (20 U.S.C. 6311)) and 
     occupational education that lead to the attainment of 
     recognized postsecondary credentials;
       (iv) preparation for unsubsidized employment opportunities, 
     in appropriate cases; and
       (v) effective connections to employers, including small 
     employers, in in-demand industry sectors and occupations of 
     the local and regional labor markets; and
       (D) at the discretion of the local board, implement a pay-
     for-performance contract strategy for elements described in 
     paragraph (2), for which the local board may reserve and use 
     not more than 10 percent of the total funds allocated to the 
     local area under section 128(b).
       (2) Program elements.--In order to support the attainment 
     of a secondary school diploma or its recognized equivalent, 
     entry into postsecondary education, and career readiness for 
     participants, the programs described in paragraph (1) shall 
     provide elements consisting of--
       (A) tutoring, study skills training, instruction, and 
     evidence-based dropout prevention and recovery strategies 
     that lead to completion of the requirements for a secondary 
     school diploma or its recognized equivalent (including a 
     recognized certificate of attendance or similar document for 
     individuals with disabilities) or for a recognized 
     postsecondary credential;
       (B) alternative secondary school services, or dropout 
     recovery services, as appropriate;
       (C) paid and unpaid work experiences that have as a 
     component academic and occupational education, which may 
     include--
       (i) summer employment opportunities and other employment 
     opportunities available throughout the school year;
       (ii) pre-apprenticeship programs;
       (iii) internships and job shadowing; and
       (iv) on-the-job training opportunities;
       (D) occupational skill training, which may include priority 
     consideration for training programs that lead to recognized 
     postsecondary credentials that are aligned with in-demand 
     industry sectors or occupations in the local area involved, 
     if the local board determines that the programs meet the 
     quality criteria described in section 123;
       (E) education offered concurrently with and in the same 
     context as workforce preparation activities and training for 
     a specific occupation or occupational cluster;
       (F) leadership development opportunities, which may include 
     community service and peer-centered activities encouraging 
     responsibility and other positive social and civic behaviors, 
     as appropriate;
       (G) supportive services;
       (H) adult mentoring for the period of participation and a 
     subsequent period, for a total of not less than 12 months;
       (I) followup services for not less than 12 months after the 
     completion of participation, as appropriate;
       (J) comprehensive guidance and counseling, which may 
     include drug and alcohol abuse counseling and referral, as 
     appropriate;
       (K) financial literacy education;
       (L) entrepreneurial skills training;
       (M) services that provide labor market and employment 
     information about in-demand industry sectors or occupations 
     available in the local area, such as career awareness, career 
     counseling, and career exploration services; and
       (N) activities that help youth prepare for and transition 
     to postsecondary education and training.
       (3) Additional requirements.--
       (A) Information and referrals.--Each local board shall 
     ensure that each participant shall be provided--
       (i) information on the full array of applicable or 
     appropriate services that are available through the local 
     board or other eligible providers or one-stop partners, 
     including those providers or partners receiving funds under 
     this subtitle; and
       (ii) referral to appropriate training and educational 
     programs that have the capacity to serve the participant 
     either on a sequential or concurrent basis.
       (B) Applicants not meeting enrollment requirements.--Each 
     eligible provider of a program of youth workforce investment 
     activities shall ensure that an eligible applicant who does 
     not meet the enrollment requirements of the particular 
     program or who cannot be served shall be referred for further 
     assessment, as necessary, and referred to appropriate 
     programs in accordance with subparagraph (A) to meet the 
     basic skills and training needs of the applicant.
       (C) Involvement in design and implementation.--The local 
     board shall ensure that parents, participants, and other 
     members of the community with experience relating to programs 
     for youth are involved in the design and implementation of 
     the programs described in paragraph (1).
       (4) Priority.--Not less than 20 percent of the funds 
     allocated to the local area as described in paragraph (1) 
     shall be used to provide in-school youth and out-of-school 
     youth with activities under paragraph (2)(C).
       (5) Rule of construction.--Nothing in this chapter shall be 
     construed to require that each of the elements described in 
     subparagraphs of paragraph (2) be offered by each provider of 
     youth services.
       (6) Prohibitions.--
       (A) Prohibition against federal control of education.--No 
     provision of this Act shall be construed to authorize any 
     department, agency, officer, or employee of the United States 
     to exercise any direction, supervision, or control over the 
     curriculum, program of instruction, administration, or 
     personnel of any educational institution, school, or school 
     system, or over the selection of library resources, 
     textbooks, or other printed or published instructional 
     materials by any educational institution, school, or school 
     system.
       (B) Noninterference and nonreplacement of regular academic 
     requirements.--No funds described in paragraph (1) shall be 
     used to provide an activity for eligible youth who are not 
     school dropouts if participation

[[Page 10926]]

     in the activity would interfere with or replace the regular 
     academic requirements of the youth.
       (7) Linkages.--In coordinating the programs authorized 
     under this section, local boards shall establish linkages 
     with local educational agencies responsible for services to 
     participants as appropriate.
       (8) Volunteers.--The local board shall make opportunities 
     available for individuals who have successfully participated 
     in programs carried out under this section to volunteer 
     assistance to participants in the form of mentoring, 
     tutoring, and other activities.

    CHAPTER 3--ADULT AND DISLOCATED WORKER EMPLOYMENT AND TRAINING 
                               ACTIVITIES

     SEC. 131. GENERAL AUTHORIZATION.

       The Secretary shall make allotments under paragraphs (1)(B) 
     and (2)(B) of section 132(b) to each State that meets the 
     requirements of section 102 or 103 and grants under 
     paragraphs (1)(A) and (2)(A) of section 132(b) to each 
     outlying area that complies with the requirements of this 
     title, to assist the State or outlying area, and to enable 
     the State or outlying area to assist local areas, for the 
     purpose of providing workforce investment activities for 
     adults, and dislocated workers, in the State or outlying area 
     and in the local areas.

     SEC. 132. STATE ALLOTMENTS.

       (a) In General.--The Secretary shall--
       (1) make allotments and grants from the amount appropriated 
     under section 136(b) for a fiscal year in accordance with 
     subsection (b)(1); and
       (2)(A) reserve 20 percent of the amount appropriated under 
     section 136(c) for the fiscal year for use under subsection 
     (b)(2)(A), and under sections 168(b) (relating to dislocated 
     worker technical assistance), 169(c) (relating to dislocated 
     worker projects), and 170 (relating to national dislocated 
     worker grants); and
       (B) make allotments from 80 percent of the amount 
     appropriated under section 136(c) for the fiscal year in 
     accordance with subsection (b)(2)(B).
       (b) Allotment Among States.--
       (1) Adult employment and training activities.--
       (A) Reservation for outlying areas.--
       (i) In general.--From the amount made available under 
     subsection (a)(1) for a fiscal year, the Secretary shall 
     reserve not more than \1/4\ of 1 percent of such amount to 
     provide assistance to the outlying areas.
       (ii) Applicability of additional requirements.--From the 
     amount reserved under clause (i), the Secretary shall provide 
     assistance to the outlying areas for adult employment and 
     training activities and statewide workforce investment 
     activities in accordance with the requirements of section 
     127(b)(1)(B).
       (B) States.--
       (i) In general.--After determining the amount to be 
     reserved under subparagraph (A), the Secretary shall allot 
     the remainder of the amount made available under subsection 
     (a)(1) for that fiscal year to the States pursuant to clause 
     (ii) for adult employment and training activities and 
     statewide workforce investment activities.
       (ii) Formula.--Subject to clauses (iii) and (iv), of the 
     remainder--

       (I) 33\1/3\ 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) 33\1/3\ percent shall be allotted on the basis of the 
     relative excess number of unemployed individuals in each 
     State, compared to the total excess number of unemployed 
     individuals in all States; and
       (III) 33\1/3\ percent shall be allotted on the basis of the 
     relative number of disadvantaged adults in each State, 
     compared to the total number of disadvantaged adults in all 
     States, except as described in clause (iii).

       (iii) Calculation.--In determining an allotment under 
     clause (ii)(III) for any State in which there is an area that 
     was designated as a local area as described in section 
     107(c)(1)(C), the allotment shall be based on the higher of--

       (I) the number of adults in families with an income below 
     the low-income level in such area; or
       (II) the number of disadvantaged adults in such area.

       (iv) Minimum and maximum percentages and minimum 
     allotments.--In making allotments under this subparagraph, 
     the Secretary shall ensure the following:

       (I) Minimum percentage and allotment.--Subject to subclause 
     (IV), the Secretary shall ensure that no State shall receive 
     an allotment for a fiscal year that is less than the greater 
     of--

       (aa) an amount based on 90 percent of the allotment 
     percentage of the State for the preceding fiscal year; or
       (bb) 100 percent of the allotment of the State under 
     section 132(b)(1)(B) of the Workforce Investment Act of 1998 
     (as in effect on the day before the date of enactment of this 
     Act) for fiscal year 2014.

       (II) Small state minimum allotment.--Subject to subclauses 
     (I), (III), and (IV), the Secretary shall ensure that no 
     State shall receive an allotment under this subparagraph that 
     is less than the total of--

       (aa) \3/10\ of 1 percent of $960,000,000 of the remainder 
     described in clause (i) for the fiscal year; and
       (bb) if the remainder described in clause (i) for the 
     fiscal year exceeds $960,000,000, \2/5\ of 1 percent of the 
     excess.

       (III) Maximum percentage.--Subject to subclause (I), the 
     Secretary shall ensure that no State shall receive an 
     allotment percentage for a fiscal year that is more than 130 
     percent of the allotment percentage of the State for the 
     preceding fiscal year.
       (IV) Minimum funding.--In any fiscal year in which the 
     remainder described in clause (i) does not exceed 
     $960,000,000, the minimum allotments under subclauses (I) and 
     (II) shall be calculated by the methodology specified in 
     section 132(b)(1)(B)(iv)(IV) of the Workforce Investment Act 
     of 1998 (as in effect on the day before the date of enactment 
     of this Act).

       (v) Definitions.--For the purpose of the formula specified 
     in this subparagraph:

       (I) Adult.--The term ``adult'' means an individual who is 
     not less than age 22 and not more than age 72.
       (II) Allotment percentage.--The term ``allotment 
     percentage'', used with respect to fiscal year 2015 or a 
     subsequent fiscal year, means a percentage of the remainder 
     described in clause (i) that is received through an allotment 
     made under this subparagraph for the fiscal year. The term, 
     used with respect to fiscal year 2014, means the percentage 
     of the amount allotted to States under section 132(b)(1)(B) 
     of the Workforce Investment Act of 1998 (as in effect on the 
     day before the date of enactment of this Act) that is 
     received under such section by the State involved for fiscal 
     year 2014.
       (III) 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 6.5 
     percent for the most recent 12 months, as determined by the 
     Secretary. For purposes of this subclause, determinations of 
     areas of substantial unemployment shall be made once each 
     fiscal year.
       (IV) Disadvantaged adult.--Subject to subclause (V), the 
     term ``disadvantaged adult'' means an adult who received an 
     income, or is a member of a family that received a total 
     family income, that, in relation to family size, does not 
     exceed the higher of--

       (aa) the poverty line; or
       (bb) 70 percent of the lower living standard income level.

       (V) Disadvantaged adult special rule.--The Secretary shall, 
     as appropriate and to the extent practicable, exclude college 
     students and members of the Armed Forces from the 
     determination of the number of disadvantaged adults.
       (VI) Excess number.--The term ``excess number'' means, used 
     with respect to the excess number of unemployed individuals 
     within a State, the higher of--

       (aa) the number that represents the number of unemployed 
     individuals in excess of 4.5 percent of the civilian labor 
     force in the State; or
       (bb) the number that represents the number of unemployed 
     individuals in excess of 4.5 percent of the civilian labor 
     force in areas of substantial unemployment in such State.

       (VII) Low-income level.--The term ``low-income level'' 
     means $7,000 with respect to income in 1969, and for any 
     later year means that amount that bears the same relationship 
     to $7,000 as the Consumer Price Index for that year bears to 
     the Consumer Price Index for 1969, rounded to the nearest 
     $1,000.

       (2) Dislocated worker employment and training activities.--
       (A) Reservation for outlying areas.--
       (i) In general.--From the amount made available under 
     subsection (a)(2)(A) for a fiscal year, the Secretary shall 
     reserve not more than \1/4\ of 1 percent of the amount 
     appropriated under section 136(c) for the fiscal year to 
     provide assistance to the outlying areas.
       (ii) Applicability of additional requirements.--From the 
     amount reserved under clause (i), the Secretary shall provide 
     assistance to the outlying areas for dislocated worker 
     employment and training activities and statewide workforce 
     investment activities in accordance with the requirements of 
     section 127(b)(1)(B).
       (B) States.--
       (i) In general.--The Secretary shall allot the amount 
     referred to in subsection (a)(2)(B) for a fiscal year to the 
     States pursuant to clause (ii) for dislocated worker 
     employment and training activities and statewide workforce 
     investment activities.
       (ii) Formula.--Subject to clause (iii), of the amount--

       (I) 33\1/3\ percent shall be allotted on the basis of the 
     relative number of unemployed individuals in each State, 
     compared to the total number of unemployed individuals in all 
     States;
       (II) 33\1/3\ percent shall be allotted on the basis of the 
     relative excess number of unemployed individuals in each 
     State, compared to the total excess number of unemployed 
     individuals in all States; and
       (III) 33\1/3\ percent shall be allotted on the basis of the 
     relative number of individuals in

[[Page 10927]]

     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.

       (iii) Minimum and maximum percentages and minimum 
     allotments.--In making allotments under this subparagraph, 
     for fiscal year 2016 and each subsequent fiscal year, the 
     Secretary shall ensure the following:

       (I) Minimum percentage and allotment.--The Secretary shall 
     ensure that no State shall receive an allotment for a fiscal 
     year that is less than the greater of--

       (aa) an amount based on 90 percent of the allotment 
     percentage of the State for the preceding fiscal year; or
       (bb) 100 percent of the allotment of the State under 
     section 132(b)(2)(B) of the Workforce Investment Act of 1998 
     (as in effect on the day before the date of enactment of this 
     Act) for fiscal year 2014.

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

       (iv) Definitions.--For the purpose of the formula specified 
     in this subparagraph:

       (I) Allotment percentage.--The term ``allotment 
     percentage'', used with respect to fiscal year 2015 or a 
     subsequent fiscal year, means a percentage of the amount 
     described in clause (i) that is received through an allotment 
     made under this subparagraph for the fiscal year.
       (II) Excess number.--The term ``excess number'' means, used 
     with respect to the excess number of unemployed individuals 
     within a State, the number that represents the number of 
     unemployed individuals in excess of 4.5 percent of the 
     civilian labor force in the State.

       (c) Reallotment.--
       (1) In general.--The Secretary shall, in accordance with 
     this subsection, reallot to eligible States amounts that are 
     made available to States from allotments made under this 
     section or a corresponding provision of the Workforce 
     Investment Act of 1998 for employment and training activities 
     and statewide workforce investment activities (referred to 
     individually in this subsection as a ``State allotment'') and 
     that are available for reallotment.
       (2) Amount.--The amount available for reallotment for a 
     program year for programs funded under subsection (b)(1)(B) 
     (relating to adult employment and training) or for programs 
     funded under subsection (b)(2)(B) (relating to dislocated 
     worker employment and training) is equal to the amount by 
     which the unobligated balance of the State allotments for 
     adult employment and training activities or dislocated worker 
     employment and training activities, respectively, at the end 
     of the program year prior to the program year for which the 
     determination under this paragraph is made, exceeds 20 
     percent of such allotments for the prior program year.
       (3) Reallotment.--In making reallotments to eligible States 
     of amounts available pursuant to paragraph (2) for a program 
     year, the Secretary shall allot to each eligible State an 
     amount based on the relative amount of the State allotment 
     under paragraph (1)(B) or (2)(B), respectively, of subsection 
     (b) for the program year for which the determination is made, 
     as compared to the total amount of the State allotments under 
     paragraph (1)(B) or (2)(B), respectively, of subsection (b) 
     for all eligible States for such program year.
       (4) Eligibility.--For purposes of this subsection, an 
     eligible State means--
       (A) with respect to funds allotted through a State 
     allotment for adult employment and training activities, a 
     State that does not have an amount of such funds available 
     for reallotment under paragraph (2) for the program year for 
     which the determination under paragraph (2) is made; and
       (B) with respect to funds allotted through a State 
     allotment for dislocated worker employment and training 
     activities, a State that does not have an amount of such 
     funds available for reallotment under paragraph (2) for the 
     program year for which the determination under paragraph (2) 
     is made.
       (5) Procedures.--The Governor shall prescribe uniform 
     procedures for the obligation of funds by local areas within 
     the State in order to avoid the requirement that funds be 
     made available for reallotment under this subsection. The 
     Governor shall further prescribe equitable procedures for 
     making funds available from the State and local areas in the 
     event that a State is required to make funds available for 
     reallotment under this subsection.

     SEC. 133. WITHIN STATE ALLOCATIONS.

       (a) Reservations for State Activities.--
       (1) Statewide workforce investment activities.--The 
     Governor shall make the reservation required under section 
     128(a).
       (2) Statewide rapid response activities.--The Governor 
     shall reserve not more than 25 percent of the total amount 
     allotted to the State under section 132(b)(2)(B) for a fiscal 
     year for statewide rapid response activities described in 
     section 134(a)(2)(A).
       (b) Within State Allocation.--
       (1) Methods.--The Governor, acting in accordance with the 
     State plan, and after consulting with chief elected officials 
     and local boards in the local areas, shall allocate--
       (A) the funds that are allotted to the State for adult 
     employment and training activities and statewide workforce 
     investment activities under section 132(b)(1)(B) and are not 
     reserved under subsection (a)(1), in accordance with 
     paragraph (2) or (3); and
       (B) the funds that are allotted to the State for dislocated 
     worker employment and training activities and statewide 
     workforce investment activities under section 132(b)(2)(B) 
     and are not reserved under paragraph (1) or (2) of subsection 
     (a), in accordance with paragraph (2).
       (2) Formula allocations.--
       (A) Adult employment and training activities.--
       (i) Allocation.--In allocating the funds described in 
     paragraph (1)(A) to local areas, a State may allocate--

       (I) 33\1/3\ percent of the funds on the basis described in 
     section 132(b)(1)(B)(ii)(I);
       (II) 33\1/3\ percent of the funds on the basis described in 
     section 132(b)(1)(B)(ii)(II); and
       (III) 33\1/3\ percent of the funds on the basis described 
     in clauses (ii)(III) and (iii) of section 132(b)(1)(B).

       (ii) Minimum percentage.--The local area shall not receive 
     an allocation percentage for a fiscal year that is less than 
     90 percent of the average allocation percentage of the local 
     area for the 2 preceding fiscal years. Amounts necessary for 
     increasing such allocations to local areas to comply with the 
     preceding sentence shall be obtained by ratably reducing the 
     allocations to be made to other local areas under this 
     subparagraph.
       (iii) Definition.--In this subparagraph, the term 
     ``allocation percentage'', used with respect to fiscal year 
     2015 or a subsequent fiscal year, means a percentage of the 
     funds referred to in clause (i), received through an 
     allocation made under this subparagraph, for the fiscal year. 
     The term, used with respect to fiscal year 2013 or 2014, 
     means a percentage of the amount allocated to local areas 
     under paragraphs (2)(A) and (3) of section 133(b) of the 
     Workforce Investment Act of 1998 (as in effect on the day 
     before the date of enactment of this Act), received through 
     an allocation made under paragraph (2)(A) or (3) of that 
     section for fiscal year 2013 or 2014, respectively.
       (B) Dislocated worker employment and training activities.--
       (i) Allocation.--In allocating the funds described in 
     paragraph (1)(B) to local areas, a State shall allocate the 
     funds based on an allocation formula prescribed by the 
     Governor of the State. Such formula may be amended by the 
     Governor not more than once for each program year. Such 
     formula shall utilize the most appropriate information 
     available to the Governor to distribute amounts to address 
     the State's worker readjustment assistance needs.
       (ii) Information.--The information described in clause (i) 
     shall include insured unemployment data, unemployment 
     concentrations, plant closing and mass layoff data, declining 
     industries data, farmer-rancher economic hardship data, and 
     long-term unemployment data.
       (iii) Minimum percentage.--The local area shall not receive 
     an allocation percentage for fiscal year 2016 or a subsequent 
     fiscal year that is less than 90 percent of the average 
     allocation percentage of the local area for the 2 preceding 
     fiscal years. Amounts necessary for increasing such 
     allocations to local areas to comply with the preceding 
     sentence shall be obtained by ratably reducing the 
     allocations to be made to other local areas under this 
     subparagraph.
       (iv) Definition.--In this subparagraph, the term 
     ``allocation percentage'', used with respect to fiscal year 
     2015 or a subsequent fiscal year, means a percentage of the 
     funds referred to in clause (i), received through an 
     allocation made under this subparagraph for the fiscal year. 
     The term, used with respect to fiscal year 2014, means a 
     percentage of the amount allocated to local areas under 
     section 133(b)(2)(B) of the Workforce Investment Act of 1998 
     (as in effect on the day before the date of enactment of this 
     Act), received through an allocation made under that section 
     for fiscal year 2014.
       (C) Application.--For purposes of carrying out subparagraph 
     (A)--
       (i) references in section 132(b) to a State shall be deemed 
     to be references to a local area;
       (ii) references in section 132(b) to all States shall be 
     deemed to be references to all local areas in the State 
     involved; and
       (iii) except as described in clause (i), references in 
     section 132(b)(1) to the term ``excess number'' shall be 
     considered to be references to the term as defined in section 
     132(b)(1).
       (3) Adult employment and training discretionary 
     allocations.--In lieu of making the allocation described in 
     paragraph (2)(A), in allocating the funds described in 
     paragraph (1)(A) to local areas, a State may distribute--
       (A) a portion equal to not less than 70 percent of the 
     funds in accordance with paragraph (2)(A); and
       (B) the remaining portion of the funds on the basis of a 
     formula that--
       (i) incorporates additional factors (other than the factors 
     described in paragraph (2)(A)) relating to--

       (I) excess poverty in urban, rural, and suburban local 
     areas; and

[[Page 10928]]

       (II) excess unemployment above the State average in urban, 
     rural, and suburban local areas; and

       (ii) was developed by the State board and approved by the 
     Secretary as part of the State plan.
       (4) Transfer authority.--A local board may transfer, if 
     such a transfer is approved by the Governor, up to and 
     including 100 percent of the funds allocated to the local 
     area under paragraph (2)(A) or (3), and up to and including 
     100 percent of the funds allocated to the local area under 
     paragraph (2)(B), for a fiscal year between--
       (A) adult employment and training activities; and
       (B) dislocated worker employment and training activities.
       (5) Allocation.--
       (A) In general.--The Governor shall allocate the funds 
     described in paragraph (1) to local areas under paragraphs 
     (2) and (3) for the purpose of providing a single system of 
     employment and training activities for adults and dislocated 
     workers in accordance with subsections (c) and (d) of section 
     134.
       (B) Additional requirements.--
       (i) Adults.--Funds allocated under paragraph (2)(A) or (3) 
     shall be used by a local area to contribute to the costs of 
     the one-stop delivery system described in section 121(e) as 
     determined under section 121(h) and to pay for employment and 
     training activities provided to adults in the local area, 
     consistent with section 134.
       (ii) Dislocated workers.--Funds allocated under paragraph 
     (2)(B) shall be used by a local area to contribute to the 
     costs of the one-stop delivery system described in section 
     121(e) as determined under section 121(h) and to pay for 
     employment and training activities provided to dislocated 
     workers in the local area, consistent with section 134.
       (c) Reallocation Among Local Areas.--
       (1) In general.--The Governor may, in accordance with this 
     subsection and after consultation with the State board, 
     reallocate to eligible local areas within the State amounts 
     that are made available to local areas from allocations made 
     under paragraph (2)(A) or (3) of subsection (b) or a 
     corresponding provision of the Workforce Investment Act of 
     1998 for adult employment and training activities, or under 
     subsection (b)(2)(B) or a corresponding provision of the 
     Workforce Investment Act of 1998 for dislocated worker 
     employment and training activities (referred to individually 
     in this subsection as a ``local allocation'') and that are 
     available for reallocation.
       (2) Amount.--The amount available for reallocation for a 
     program year--
       (A) for adult employment and training activities is equal 
     to the amount by which the unobligated balance of the local 
     allocation under paragraph (2)(A) or (3) of subsection (b) 
     for such activities, at the end of the program year prior to 
     the program year for which the determination under this 
     subparagraph is made, exceeds 20 percent of such allocation 
     for the prior program year; and
       (B) for dislocated worker employment and training 
     activities is equal to the amount by which the unobligated 
     balance of the local allocation under subsection (b)(2)(B) 
     for such activities, at the end of the program year prior to 
     the program year for which the determination under this 
     subparagraph is made, exceeds 20 percent of such allocation 
     for the prior program year.
       (3) Reallocation.--In making reallocations to eligible 
     local areas of amounts available pursuant to paragraph (2) 
     for a program year, the Governor shall allocate to each 
     eligible local area within the State--
       (A) with respect to such available amounts that were 
     allocated under paragraph (2)(A) or (3) of subsection (b), an 
     amount based on the relative amount of the local allocation 
     under paragraph (2)(A) or (3) of subsection (b), as 
     appropriate, for the program year for which the determination 
     is made, as compared to the total amount of the local 
     allocations under paragraph (2)(A) or (3) of subsection (b), 
     as appropriate, for all eligible local areas in the State for 
     such program year; and
       (B) with respect to such available amounts that were 
     allocated under subsection (b)(2)(B), an amount based on the 
     relative amount of the local allocation under subsection 
     (b)(2)(B) for the program year for which the determination is 
     made, as compared to the total amount of the local 
     allocations under subsection (b)(2)(B) for all eligible local 
     areas in the State for such program year.
       (4) Eligibility.--For purposes of this subsection, an 
     eligible local area means--
       (A) with respect to funds allocated through a local 
     allocation for adult employment and training activities, a 
     local area that does not have an amount of such funds 
     available for reallocation under paragraph (2) for the 
     program year for which the determination under paragraph (2) 
     is made; and
       (B) with respect to funds allocated through a local 
     allocation for dislocated worker employment and training 
     activities, a local area that does not have an amount of such 
     funds available for reallocation under paragraph (2) for the 
     program year for which the determination under paragraph (2) 
     is made.

     SEC. 134. USE OF FUNDS FOR EMPLOYMENT AND TRAINING 
                   ACTIVITIES.

       (a) Statewide Employment and Training Activities.--
       (1) In general.--Funds reserved by a Governor--
       (A) as described in section 133(a)(2) shall be used to 
     carry out the statewide rapid response activities described 
     in paragraph (2)(A); and
       (B) as described in sections 128(a) and 133(a)(1)--
       (i) shall be used to carry out the statewide employment and 
     training activities described in paragraph (2)(B); and
       (ii) may be used to carry out any of the statewide 
     employment and training activities described in paragraph 
     (3),

     regardless of whether the funds were allotted to the State 
     under section 127(b)(1) or under paragraph (1) or (2) of 
     section 132(b).
       (2) Required statewide employment and training 
     activities.--
       (A) Statewide rapid response activities.--
       (i) In general.--A State shall carry out statewide rapid 
     response activities using funds reserved by the Governor for 
     the State under section 133(a)(2), which activities shall 
     include--

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

       (ii) Use of unobligated funds.--Funds reserved by a 
     Governor under section 133(a)(2), and section 133(a)(2) of 
     the Workforce Investment Act of 1998 (as in effect on the day 
     before the date of enactment of this Act), to carry out this 
     subparagraph that remain unobligated after the first program 
     year for which such funds were allotted may be used by the 
     Governor to carry out statewide activities authorized under 
     subparagraph (B) or paragraph (3)(A), in addition to 
     activities under this subparagraph.
       (B) Statewide employment and training activities.--Funds 
     reserved by a Governor under sections 128(a)(1) and 133(a)(1) 
     and not used under paragraph (1)(A) (regardless of whether 
     the funds were allotted to the States under section 
     127(b)(1)(C) or paragraph (1)(B) or (2)(B) of section 132(b)) 
     shall be used for statewide employment and training 
     activities, including--
       (i) providing assistance to--

       (I) State entities and agencies, local areas, and one-stop 
     partners in carrying out the activities described in the 
     State plan, including the coordination and alignment of data 
     systems used to carry out the requirements of this Act;
       (II) local areas for carrying out the regional planning and 
     service delivery efforts required under section 106(c);
       (III) local areas by providing information on and support 
     for the effective development, convening, and implementation 
     of industry or sector partnerships; and
       (IV) local areas, one-stop operators, one-stop partners, 
     and eligible providers, including the development and 
     training of staff, which may include the development and 
     training of staff to provide opportunities for individuals 
     with barriers to employment to enter in-demand industry 
     sectors or occupations and nontraditional occupations, the 
     development of exemplary program activities, and the 
     provision of technical assistance to local areas that fail to 
     meet local performance accountability measures described in 
     section 116(c);

       (ii) providing assistance to local areas as described in 
     section 106(b)(6);
       (iii) operating a fiscal and management accountability 
     information system in accordance with section 116(i);
       (iv) carrying out monitoring and oversight of activities 
     carried out under this chapter and chapter 2;
       (v) disseminating--

       (I) the State list of eligible providers of training 
     services, including eligible providers of nontraditional 
     training services and eligible providers of apprenticeship 
     programs described in section 122(a)(2)(B);
       (II) information identifying eligible providers of on-the-
     job training, customized training, incumbent worker training, 
     internships, paid or unpaid work experience opportunities, or 
     transitional jobs;
       (III) information on effective outreach to, partnerships 
     with, and services for, business;
       (IV) information on effective service delivery strategies 
     to serve workers and job seekers;
       (V) performance information and information on the cost of 
     attendance (including tuition and fees) for participants in 
     applicable programs, as described in subsections (d) and (h) 
     of section 122; and
       (VI) information on physical and programmatic 
     accessibility, in accordance with section 188, if applicable, 
     and the Americans with Disabilities Act of 1990 (42 U.S.C. 
     12101 et seq.), for individuals with disabilities; and

       (vi) conducting evaluations under section 116(e) of 
     activities authorized under this chapter and chapter 2 in 
     coordination with evaluations carried out by the Secretary 
     under section 169(a).
       (3) Allowable statewide employment and training 
     activities.--

[[Page 10929]]

       (A) In general.--Funds reserved by a Governor under 
     sections 128(a)(1) and 133(a)(1) and not used under paragraph 
     (1)(A) or (2)(B) (regardless of whether the funds were 
     allotted to the State under section 127(b)(1)(C) or paragraph 
     (1)(B) or (2)(B) of section 132(b)) may be used to carry out 
     additional statewide employment and training activities, 
     which may include--
       (i) implementing innovative programs and strategies 
     designed to meet the needs of all employers (including small 
     employers) in the State, which programs and strategies may 
     include incumbent worker training programs, customized 
     training, sectoral and industry cluster strategies and 
     implementation of industry or sector partnerships, career 
     pathway programs, microenterprise and entrepreneurial 
     training and support programs, utilization of effective 
     business intermediaries, layoff aversion strategies, 
     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 development 
     system more relevant to the needs of State and local 
     businesses, consistent with the objectives of this title;
       (ii) developing strategies for effectively serving 
     individuals with barriers to employment and for coordinating 
     programs and services among one-stop partners;
       (iii) the development or identification of education and 
     training programs that respond to real-time labor market 
     analysis, that utilize direct assessment and prior learning 
     assessment to measure and provide credit for prior knowledge, 
     skills, competencies, and experiences, that evaluate such 
     skills and competencies for adaptability, that ensure credits 
     are portable and stackable for more skilled employment, and 
     that accelerate course or credential completion;
       (iv) implementing programs to increase the number of 
     individuals training for and placed in nontraditional 
     employment;
       (v) carrying out activities to facilitate remote access to 
     services, including training services described in subsection 
     (c)(3), provided through a one-stop delivery system, 
     including facilitating access through the use of technology;
       (vi) supporting the provision of career services described 
     in subsection (c)(2) in the one-stop delivery systems in the 
     State;
       (vii) coordinating activities with the child welfare system 
     to facilitate provision of services for children and youth 
     who are eligible for assistance under section 477 of the 
     Social Security Act (42 U.S.C. 677);
       (viii) activities--

       (I) to improve coordination of workforce investment 
     activities with economic development activities;
       (II) to improve coordination of employment and training 
     activities with--

       (aa) child support services, and assistance provided by 
     State and local agencies carrying out part D of title IV of 
     the Social Security Act (42 U.S.C. 651 et seq.);
       (bb) cooperative extension programs carried out by the 
     Department of Agriculture;
       (cc) programs carried out in local areas for individuals 
     with disabilities, including programs carried out by State 
     agencies relating to intellectual disabilities and 
     developmental disabilities, activities carried out by 
     Statewide Independent Living Councils established under 
     section 705 of the Rehabilitation Act of 1973 (29 U.S.C. 
     796d), programs funded under part B of chapter 1 of title VII 
     of such Act (29 U.S.C. 796e et seq.), and activities carried 
     out by centers for independent living, as defined in section 
     702 of such Act (29 U.S.C. 796a);
       (dd) adult education and literacy activities, including 
     those provided by public libraries;
       (ee) activities in the corrections system that assist ex-
     offenders in reentering the workforce; and
       (ff) financial literacy activities including those 
     described in section 129(b)(2)(D); and

       (III) consisting of development and dissemination of 
     workforce and labor market information;

       (ix) conducting research and demonstration projects related 
     to meeting the employment and education needs of adult and 
     dislocated workers;
       (x) implementing promising services for workers and 
     businesses, which may include providing support for 
     education, training, skill upgrading, and statewide 
     networking for employees to become workplace learning 
     advisors and maintain proficiency in carrying out the 
     activities associated with such advising;
       (xi) providing incentive grants to local areas for 
     performance by the local areas on local performance 
     accountability measures described in section 116(c);
       (xii) adopting, calculating, or commissioning for approval 
     an economic self-sufficiency standard for the State that 
     specifies the income needs of families, by family size, the 
     number and ages of children in the family, and substate 
     geographical considerations;
       (xiii) developing and disseminating common intake 
     procedures and related items, including registration 
     processes, materials, or software; and
       (xiv) providing technical assistance to local areas that 
     are implementing pay-for-performance contract strategies, 
     which technical assistance may include providing assistance 
     with data collection, meeting data entry requirements, 
     identifying levels of performance, and conducting evaluations 
     of such strategies.
       (B) Limitation.--
       (i) In general.--Of the funds allotted to a State under 
     sections 127(b) and 132(b) and reserved as described in 
     sections 128(a) and 133(a)(1) for a fiscal year--

       (I) not more than 5 percent of the amount allotted under 
     section 127(b)(1);
       (II) not more than 5 percent of the amount allotted under 
     section 132(b)(1); and
       (III) not more than 5 percent of the amount allotted under 
     section 132(b)(2),

     may be used by the State for the administration of statewide 
     youth workforce investment activities carried out under 
     section 129 and statewide employment and training activities 
     carried out under this section.
       (ii) Use of funds.--Funds made available for administrative 
     costs under clause (i) may be used for the administrative 
     cost of any of the statewide youth workforce investment 
     activities or statewide employment and training activities, 
     regardless of whether the funds were allotted to the State 
     under section 127(b)(1) or paragraph (1) or (2) of section 
     132(b).
       (b) Local Employment and Training Activities.--Funds 
     allocated to a local area for adults under paragraph (2)(A) 
     or (3), as appropriate, of section 133(b), and funds 
     allocated to a local area for dislocated workers under 
     section 133(b)(2)(B)--
       (1) shall be used to carry out employment and training 
     activities described in subsection (c) for adults or 
     dislocated workers, respectively; and
       (2) may be used to carry out employment and training 
     activities described in subsection (d) for adults or 
     dislocated workers, respectively.
       (c) Required Local Employment and Training Activities.--
       (1) In general.--
       (A) Allocated funds.--Funds allocated to a local area for 
     adults under paragraph (2)(A) or (3), as appropriate, of 
     section 133(b), and funds allocated to the local area for 
     dislocated workers under section 133(b)(2)(B), shall be 
     used--
       (i) to establish a one-stop delivery system described in 
     section 121(e);
       (ii) to provide the career services described in paragraph 
     (2) to adults and dislocated workers, respectively, through 
     the one-stop delivery system in accordance with such 
     paragraph;
       (iii) to provide training services described in paragraph 
     (3) to adults and dislocated workers, respectively, described 
     in such paragraph;
       (iv) to establish and develop relationships and networks 
     with large and small employers and their intermediaries; and
       (v) to develop, convene, or implement industry or sector 
     partnerships.
       (B) Other funds.--Consistent with subsections (h) and (i) 
     of section 121, a portion of the funds made available under 
     Federal law authorizing the programs and activities described 
     in section 121(b)(1)(B), including the Wagner-Peyser Act (29 
     U.S.C. 49 et seq.), shall be used as described in clauses (i) 
     and (ii) of subparagraph (A), to the extent not inconsistent 
     with the Federal law involved.
       (2) Career services.--
       (A) Services provided.--Funds described in paragraph (1) 
     shall be used to provide career services, which shall be 
     available to individuals who are adults or dislocated workers 
     through the one-stop delivery system and shall, at a minimum, 
     include--
       (i) determinations of whether the individuals are eligible 
     to receive assistance under this subtitle;
       (ii) outreach, intake (which may include worker profiling), 
     and orientation to the information and other services 
     available through the one-stop delivery system;
       (iii) initial assessment of skill levels (including 
     literacy, numeracy, and English language proficiency), 
     aptitudes, abilities (including skills gaps), and supportive 
     service needs;
       (iv) labor exchange services, including--

       (I) job search and placement assistance and, in appropriate 
     cases, career counseling, including--

       (aa) provision of information on in-demand industry sectors 
     and occupations; and
       (bb) provision of information on nontraditional employment; 
     and

       (II) appropriate recruitment and other business services on 
     behalf of employers, including small employers, in the local 
     area, which services may include services described in this 
     subsection, such as providing information and referral to 
     specialized business services not traditionally offered 
     through the one-stop delivery system;

       (v) provision of referrals to and coordination of 
     activities with other programs and services, including 
     programs and services within the one-stop delivery system 
     and, in appropriate cases, other workforce development 
     programs;

[[Page 10930]]

       (vi) provision of workforce and labor market employment 
     statistics information, including the provision of accurate 
     information relating to local, regional, and national labor 
     market areas, including--

       (I) job vacancy listings in such labor market areas;
       (II) information on job skills necessary to obtain the jobs 
     described in subclause (I); and
       (III) information relating to local occupations in demand 
     and the earnings, skill requirements, and opportunities for 
     advancement for such occupations; and

       (vii) provision of performance information and program cost 
     information on eligible providers of training services as 
     described in section 122, provided by program, and eligible 
     providers of youth workforce investment activities described 
     in section 123, providers of adult education described in 
     title II, providers of career and technical education 
     activities at the postsecondary level, and career and 
     technical education activities available to school dropouts, 
     under the Carl D. Perkins Career and Technical Education Act 
     of 2006 (20 U.S.C. 2301 et seq.), and providers of vocational 
     rehabilitation services described in title I of the 
     Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.);
       (viii) provision of information, in formats that are usable 
     by and understandable to one-stop center customers, regarding 
     how the local area is performing on the local performance 
     accountability measures described in section 116(c) and any 
     additional performance information with respect to the one-
     stop delivery system in the local area;
       (ix)(I) provision of information, in formats that are 
     usable by and understandable to one-stop center customers, 
     relating to the availability of supportive services or 
     assistance, including child care, child support, medical or 
     child health assistance under title XIX or XXI of the Social 
     Security Act (42 U.S.C. 1396 et seq. and 1397aa et seq.), 
     benefits under the supplemental nutrition assistance program 
     established under the Food and Nutrition Act of 2008 (7 
     U.S.C. 2011 et seq.), assistance through the earned income 
     tax credit under section 32 of the Internal Revenue Code of 
     1986, and assistance under a State program for temporary 
     assistance for needy families funded under part A of title IV 
     of the Social Security Act (42 U.S.C. 601 et seq.) and other 
     supportive services and transportation provided through funds 
     made available under such part, available in the local area; 
     and
       (II) referral to the services or assistance described in 
     subclause (I), as appropriate;
       (x) provision of information and assistance regarding 
     filing claims for unemployment compensation;
       (xi) assistance in establishing eligibility for programs of 
     financial aid assistance for training and education programs 
     that are not funded under this Act;
       (xii) services, if determined to be appropriate in order 
     for an individual to obtain or retain employment, that 
     consist of--

       (I) comprehensive and specialized assessments of the skill 
     levels and service needs of adults and dislocated workers, 
     which may include--

       (aa) diagnostic testing and use of other assessment tools; 
     and
       (bb) in-depth interviewing and evaluation to identify 
     employment barriers and appropriate employment goals;

       (II) development of an individual employment plan, to 
     identify the employment goals, appropriate achievement 
     objectives, and appropriate combination of services for the 
     participant to achieve the employment goals, including 
     providing information on eligible providers of training 
     services pursuant to paragraph (3)(F)(ii), and career 
     pathways to attain career objectives;
       (III) group counseling;
       (IV) individual counseling;
       (V) career planning;
       (VI) short-term prevocational services, including 
     development of learning skills, communication skills, 
     interviewing skills, punctuality, personal maintenance 
     skills, and professional conduct, to prepare individuals for 
     unsubsidized employment or training;
       (VII) internships and work experiences that are linked to 
     careers;
       (VIII) workforce preparation activities;
       (IX) financial literacy services, such as the activities 
     described in section 129(b)(2)(D);
       (X) out-of-area job search assistance and relocation 
     assistance; or
       (XI) English language acquisition and integrated education 
     and training programs; and

       (xiii) followup services, including counseling regarding 
     the workplace, for participants in workforce investment 
     activities authorized under this subtitle who are placed in 
     unsubsidized employment, for not less than 12 months after 
     the first day of the employment, as appropriate.
       (B) Use of previous assessments.--A one-stop operator or 
     one-stop partner shall not be required to conduct a new 
     interview, evaluation, or assessment of a participant under 
     subparagraph (A)(xii) if the one-stop operator or one-stop 
     partner determines that it is appropriate to use a recent 
     interview, evaluation, or assessment of the participant 
     conducted pursuant to another education or training program.
       (C) Delivery of services.--The career services described in 
     subparagraph (A) shall be provided through the one-stop 
     delivery system--
       (i) directly through one-stop operators identified pursuant 
     to section 121(d); or
       (ii) through contracts with service providers, which may 
     include contracts with public, private for-profit, and 
     private nonprofit service providers, approved by the local 
     board.
       (3) Training services.--
       (A) In general.--
       (i) Eligibility.--Except as provided in clause (ii), funds 
     allocated to a local area for adults under paragraph (2)(A) 
     or (3), as appropriate, of section 133(b), and funds 
     allocated to the local area for dislocated workers under 
     section 133(b)(2)(B), shall be used to provide training 
     services to adults and dislocated workers, respectively--

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

       (aa) be unlikely or unable to obtain or retain employment, 
     that leads to economic self-sufficiency or wages comparable 
     to or higher than wages from previous employment, through the 
     career services described in paragraph (2)(A)(xii);
       (bb) be in need of training services to obtain or retain 
     employment that leads to economic self-sufficiency or wages 
     comparable to or higher than wages from previous employment; 
     and
       (cc) have the skills and qualifications to successfully 
     participate in the selected program of training services;

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

       (ii) Use of previous assessments.--A one-stop operator or 
     one-stop partner shall not be required to conduct a new 
     interview, evaluation, or assessment of a participant under 
     clause (i) if the one-stop operator or one-stop partner 
     determines that it is appropriate to use a recent interview, 
     evaluation, or assessment of the participant conducted 
     pursuant to another education or training program.
       (iii) Rule of construction.--Nothing in this subparagraph 
     shall be construed to mean an individual is required to 
     receive career services prior to receiving training services.
       (B) Qualification.--
       (i) Requirement.--Notwithstanding section 479B of the 
     Higher Education Act of 1965 (20 U.S.C. 1087uu) and except as 
     provided in clause (ii), provision of such training services 
     shall be limited to individuals who--

       (I) are unable to obtain other grant assistance for such 
     services, including Federal Pell Grants established under 
     subpart 1 of part A of title IV of the Higher Education Act 
     of 1965 (20 U.S.C. 1070a et seq.); or
       (II) require assistance beyond the assistance made 
     available under other grant assistance programs, including 
     Federal Pell Grants.

       (ii) Reimbursements.--Training services may be provided 
     under this paragraph to an individual who otherwise meets the 
     requirements of this paragraph while an application for a 
     Federal Pell Grant is pending, except that if such individual 
     is subsequently awarded a Federal Pell Grant, appropriate 
     reimbursement shall be made to the local area from such 
     Federal Pell Grant.
       (iii) Consideration.--In determining whether an individual 
     requires assistance under clause (i)(II), a one-stop operator 
     (or one-stop partner, where appropriate) may take into 
     consideration the full cost of participating in training 
     services, including the costs of dependent care and 
     transportation, and other appropriate costs.
       (C) Provider qualification.--Training services shall be 
     provided through providers identified in accordance with 
     section 122.
       (D) Training services.--Training services may include--
       (i) occupational skills training, including training for 
     nontraditional employment;
       (ii) on-the-job training;
       (iii) incumbent worker training in accordance with 
     subsection (d)(4);
       (iv) programs that combine workplace training with related 
     instruction, which may include cooperative education 
     programs;
       (v) training programs operated by the private sector;
       (vi) skill upgrading and retraining;
       (vii) entrepreneurial training;
       (viii) transitional jobs in accordance with subsection 
     (d)(5);
       (ix) job readiness training provided in combination with 
     services described in any of clauses (i) through (viii);
       (x) adult education and literacy activities, including 
     activities of English language acquisition and integrated 
     education and training programs, provided concurrently or in 
     combination with services described in any of clauses (i) 
     through (vii); and
       (xi) customized training conducted with a commitment by an 
     employer or group of employers to employ an individual upon 
     successful completion of the training.
       (E) Priority.--With respect to funds allocated to a local 
     area for adult employment

[[Page 10931]]

     and training activities under paragraph (2)(A) or (3) of 
     section 133(b), priority shall be given to recipients of 
     public assistance, other low-income individuals, and 
     individuals who are basic skills deficient for receipt of 
     career services described in paragraph (2)(A)(xii) and 
     training services. The appropriate local board and the 
     Governor shall direct the one-stop operators in the local 
     area with regard to making determinations related to such 
     priority.
       (F) Consumer choice requirements.--
       (i) In general.--Training services provided under this 
     paragraph shall be provided in a manner that maximizes 
     consumer choice in the selection of an eligible provider of 
     such services.
       (ii) Eligible providers.--Each local board, through one-
     stop centers, shall make available the list of eligible 
     providers of training services described in section 122(d), 
     and accompanying information, in accordance with section 
     122(d).
       (iii) Individual training accounts.--An individual who 
     seeks training services and who is eligible pursuant to 
     subparagraph (A), may, in consultation with a career planner, 
     select an eligible provider of training services from the 
     list of providers described in clause (ii). 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 an individual training account.
       (iv) Coordination.--Each local board may, through one-stop 
     centers, coordinate funding for individual training accounts 
     with funding from other Federal, State, local, or private job 
     training programs or sources to assist the individual in 
     obtaining training services.
       (v) Additional information.--Priority consideration may be 
     given to programs that lead to recognized postsecondary 
     credentials that are aligned with in-demand industry sectors 
     or occupations in the local area involved.
       (G) Use of individual training accounts.--
       (i) In general.--Except as provided in clause (ii), 
     training services provided under this paragraph shall be 
     provided through the use of individual training accounts in 
     accordance with this paragraph, and shall be provided to 
     eligible individuals through the one-stop delivery system.
       (ii) Training contracts.--Training services authorized 
     under this paragraph may be provided pursuant to a contract 
     for services in lieu of an individual training account if--

       (I) the requirements of subparagraph (F) are met;
       (II) such services are on-the-job training, customized 
     training, incumbent worker training, or transitional 
     employment;
       (III) the local board determines there are an insufficient 
     number of eligible providers of training services in the 
     local area involved (such as in a rural area) to accomplish 
     the purposes of a system of individual training accounts;
       (IV) the local board determines that there is a training 
     services program of demonstrated effectiveness offered in the 
     local area by a community-based organization or another 
     private organization to serve individuals with barriers to 
     employment;
       (V) the local board determines that--

       (aa) it would be most appropriate to award a contract to an 
     institution of higher education or other eligible provider of 
     training services in order to facilitate the training of 
     multiple individuals in in-demand industry sectors or 
     occupations; and
       (bb) such contract does not limit customer choice; or

       (VI) the contract is a pay-for-performance contract.

       (iii) Linkage to occupations in demand.--Training services 
     provided under this paragraph shall be directly linked to an 
     in-demand industry sector or occupation in the local area or 
     the planning region, or in another area to which an adult or 
     dislocated worker receiving such services is willing to 
     relocate, except that a local board may approve training 
     services for occupations determined by the local board to be 
     in sectors of the economy that have a high potential for 
     sustained demand or growth in the local area.
       (iv) Rule of construction.--Nothing in this paragraph shall 
     be construed to preclude the combined use of individual 
     training accounts and contracts in the provision of training 
     services, including arrangements that allow individuals 
     receiving individual training accounts to obtain training 
     services that are contracted for under clause (ii).
       (H) Reimbursement for on-the-job training.--
       (i) Reimbursement level.--For purposes of the provision of 
     on-the-job training under this paragraph, the Governor or 
     local board involved may increase the amount of the 
     reimbursement described in section 3(44) to an amount of up 
     to 75 percent of the wage rate of a participant for a program 
     carried out under chapter 2 or this chapter, if, 
     respectively--

       (I) the Governor approves the increase with respect to a 
     program carried out with funds reserved by the State under 
     that chapter, taking into account the factors described in 
     clause (ii); or
       (II) the local board approves the increase with respect to 
     a program carried out with funds allocated to a local area 
     under such chapter, taking into account those factors.

       (ii) Factors.--For purposes of clause (i), the Governor or 
     local board, respectively, shall take into account factors 
     consisting of--

       (I) the characteristics of the participants;
       (II) the size of the employer;
       (III) the quality of employer-provided training and 
     advancement opportunities; and
       (IV) such other factors as the Governor or local board, 
     respectively, may determine to be appropriate, which may 
     include the number of employees participating in the 
     training, wage and benefit levels of those employees (at 
     present and anticipated upon completion of the training), and 
     relation of the training to the competitiveness of a 
     participant.

       (d) Permissible Local Employment and Training Activities.--
       (1) In general.--
       (A) Activities.--Funds allocated to a local area for adults 
     under paragraph (2)(A) or (3), as appropriate, of section 
     133(b), and funds allocated to the local area for dislocated 
     workers under section 133(b)(2)(B), may be used to provide, 
     through the one-stop delivery system involved (and through 
     collaboration with the local board, for the purpose of the 
     activities described in clauses (vii) and (ix))--
       (i) customized screening and referral of qualified 
     participants in training services described in subsection 
     (c)(3) to employers;
       (ii) customized employment-related services to employers, 
     employer associations, or other such organizations on a fee-
     for-service basis;
       (iii) implementation of a pay-for-performance contract 
     strategy for training services, for which the local board may 
     reserve and use not more than 10 percent of the total funds 
     allocated to the local area under paragraph (2) or (3) of 
     section 133(b);
       (iv) customer support to enable individuals with barriers 
     to employment (including individuals with disabilities) and 
     veterans, to navigate among multiple services and activities 
     for such populations;
       (v) technical assistance for one-stop operators, one-stop 
     partners, and eligible providers of training services, 
     regarding the provision of services to individuals with 
     disabilities in local areas, including the development and 
     training of staff, the provision of outreach, intake, 
     assessments, and service delivery, the coordination of 
     services across providers and programs, and the development 
     of performance accountability measures;
       (vi) employment and training activities provided in 
     coordination with--

       (I) child support enforcement activities of the State and 
     local agencies carrying out part D of title IV of the Social 
     Security Act (42 U.S.C. 651 et seq.);
       (II) child support services, and assistance, provided by 
     State and local agencies carrying out part D of title IV of 
     the Social Security Act (42 U.S.C. 651 et seq.);
       (III) cooperative extension programs carried out by the 
     Department of Agriculture; and
       (IV) activities to facilitate remote access to services 
     provided through a one-stop delivery system, including 
     facilitating access through the use of technology;

       (vii) activities--

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

       (viii) training programs for displaced homemakers and for 
     individuals training for nontraditional occupations, in 
     conjunction with programs operated in the local area;
       (ix) activities to provide business services and strategies 
     that meet the workforce investment needs of area employers, 
     as determined by the local board, consistent with the local 
     plan under section 108, which services--

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

       (aa) developing and implementing industry sector strategies 
     (including strategies involving industry partnerships, 
     regional skills alliances, industry skill panels, and 
     sectoral skills partnerships);
       (bb) developing and delivering innovative workforce 
     investment services and strategies

[[Page 10932]]

     for area employers, which may include career pathways, skills 
     upgrading, skill standard development and certification for 
     recognized postsecondary credential or other employer use, 
     apprenticeship, and other effective initiatives for meeting 
     the workforce investment needs of area employers and workers;
       (cc) assistance to area employers in managing reductions in 
     force in coordination with rapid response activities provided 
     under subsection (a)(2)(A) and with strategies for the 
     aversion of layoffs, which strategies may include early 
     identification of firms at risk of layoffs, use of 
     feasibility studies to assess the needs of and options for 
     at-risk firms, and the delivery of employment and training 
     activities to address risk factors; and
       (dd) the marketing of business services offered under this 
     title, to appropriate area employers, including small and 
     mid-sized employers;
       (x) activities to adjust the economic self-sufficiency 
     standards referred to in subsection (a)(3)(A)(xii) for local 
     factors, or activities to adopt, calculate, or commission for 
     approval, economic self-sufficiency standards for the local 
     areas that specify the income needs of families, by family 
     size, the number and ages of children in the family, and 
     substate geographical considerations;
       (xi) improved coordination between employment and training 
     activities and programs carried out in the local area for 
     individuals with disabilities, including programs carried out 
     by State agencies relating to intellectual disabilities and 
     developmental disabilities, activities carried out by 
     Statewide Independent Living Councils established under 
     section 705 of the Rehabilitation Act of 1973 (29 U.S.C. 
     796d), programs funded under part B of chapter 1 of title VII 
     of such Act (29 U.S.C. 796e et seq.), and activities carried 
     out by centers for independent living, as defined in section 
     702 of such Act (29 U.S.C. 796a); and
       (xii) implementation of promising services to workers and 
     businesses, which may include support for education, 
     training, skill upgrading, and statewide networking for 
     employees to become workplace learning advisors and maintain 
     proficiency in carrying out the activities associated with 
     such advising.
       (B) Work support activities for low-wage workers.--
       (i) In general.--Funds allocated to a local area for adults 
     under paragraph (2)(A) or (3), as appropriate, of section 
     133(b), and funds allocated to the local area for dislocated 
     workers under section 133(b)(2)(B), may be used to provide, 
     through the one-stop delivery system involved, work support 
     activities designed to assist low-wage workers in retaining 
     and enhancing employment. The one-stop partners of the system 
     shall coordinate the appropriate programs and resources of 
     the partners with the activities and resources provided under 
     this subparagraph.
       (ii) Activities.--The work support activities described in 
     clause (i) may include the provision of activities described 
     in this section through the one-stop delivery system in a 
     manner that enhances the opportunities of such workers to 
     participate in the activities, such as the provision of 
     activities described in this section during nontraditional 
     hours and the provision of onsite child care while such 
     activities are being provided.
       (2) Supportive services.--Funds allocated to a local area 
     for adults under paragraph (2)(A) or (3), as appropriate, of 
     section 133(b), and funds allocated to the local area for 
     dislocated workers under section 133(b)(2)(B), may be used to 
     provide supportive services to adults and dislocated workers, 
     respectively--
       (A) who are participating in programs with activities 
     authorized in paragraph (2) or (3) of subsection (c); and
       (B) who are unable to obtain such supportive services 
     through other programs providing such services.
       (3) Needs-related payments.--
       (A) In general.--Funds allocated to a local area for adults 
     under paragraph (2)(A) or (3), as appropriate, of section 
     133(b), and funds allocated to the local area for dislocated 
     workers under section 133(b)(2)(B), may be used to provide 
     needs-related payments to adults and dislocated workers, 
     respectively, who are unemployed and do not qualify for (or 
     have ceased to qualify for) unemployment compensation for the 
     purpose of enabling such individuals to participate in 
     programs of training services under subsection (c)(3).
       (B) Additional eligibility requirements.--In addition to 
     the requirements contained in subparagraph (A), a dislocated 
     worker who has ceased to qualify for unemployment 
     compensation may be eligible to receive needs-related 
     payments under this paragraph only if such worker was 
     enrolled in the training services--
       (i) by the end of the 13th week after the most recent 
     layoff that resulted in a determination of the worker's 
     eligibility for employment and training activities for 
     dislocated workers under this subtitle; or
       (ii) if later, by the end of the 8th week after the worker 
     is informed that a short-term layoff will exceed 6 months.
       (C) Level of payments.--The level of a needs-related 
     payment made to a dislocated worker under this paragraph 
     shall not exceed the greater of--
       (i) the applicable level of unemployment compensation; or
       (ii) if such worker did not qualify for unemployment 
     compensation, an amount equal to the poverty line, for an 
     equivalent period, which amount shall be adjusted to reflect 
     changes in total family income.
       (4) Incumbent worker training programs.--
       (A) In general.--
       (i) Standard reservation of funds.--The local board may 
     reserve and use not more than 20 percent of the funds 
     allocated to the local area involved under section 133(b) to 
     pay for the Federal share of the cost of providing training 
     through a training program for incumbent workers, carried out 
     in accordance with this paragraph.
       (ii) Determination of eligibility.--For the purpose of 
     determining the eligibility of an employer to receive funding 
     under clause (i), the local board shall take into account 
     factors consisting of--

       (I) the characteristics of the participants in the program;
       (II) the relationship of the training to the 
     competitiveness of a participant and the employer; and
       (III) such other factors as the local board may determine 
     to be appropriate, which may include the number of employees 
     participating in the training, the wage and benefit levels of 
     those employees (at present and anticipated upon completion 
     of the training), and the existence of other training and 
     advancement opportunities provided by the employer.

       (iii) Statewide impact.--The Governor or State board 
     involved may make recommendations to the local board for 
     providing incumbent worker training that has statewide 
     impact.
       (B) Training activities.--The training program for 
     incumbent workers carried out under this paragraph shall be 
     carried out by the local board in conjunction with the 
     employers or groups of employers of such workers (which may 
     include employers in partnership with other entities for the 
     purposes of delivering training) for the purpose of assisting 
     such workers in obtaining the skills necessary to retain 
     employment or avert layoffs.
       (C) Employer payment of non-federal share.--Employers 
     participating in the program carried out under this paragraph 
     shall be required to pay for the non-Federal share of the 
     cost of providing the training to incumbent workers of the 
     employers.
       (D) Non-federal share.--
       (i) Factors.--Subject to clause (ii), the local board shall 
     establish the non-Federal share of such cost (taking into 
     consideration such other factors as the number of employees 
     participating in the training, the wage and benefit levels of 
     the employees (at the beginning and anticipated upon 
     completion of the training), the relationship of the training 
     to the competitiveness of the employer and employees, and the 
     availability of other employer-provided training and 
     advancement opportunities.
       (ii) Limits.--The non-Federal share shall not be less 
     than--

       (I) 10 percent of the cost, for employers with not more 
     than 50 employees;
       (II) 25 percent of the cost, for employers with more than 
     50 employees but not more than 100 employees; and
       (III) 50 percent of the cost, for employers with more than 
     100 employees.

       (iii) Calculation of employer share.--The non-Federal share 
     provided by an employer participating in the program may 
     include the amount of the wages paid by the employer to a 
     worker while the worker is attending a training program under 
     this paragraph. The employer may provide the share in cash or 
     in kind, fairly evaluated.
       (5) Transitional jobs.--The local board may use not more 
     than 10 percent of the funds allocated to the local area 
     involved under section 133(b) to provide transitional jobs 
     under subsection (c)(3) that--
       (A) are time-limited work experiences that are subsidized 
     and are in the public, private, or nonprofit sectors for 
     individuals with barriers to employment who are chronically 
     unemployed or have an inconsistent work history;
       (B) are combined with comprehensive employment and 
     supportive services; and
       (C) are designed to assist the individuals described in 
     subparagraph (A) to establish a work history, demonstrate 
     success in the workplace, and develop the skills that lead to 
     entry into and retention in unsubsidized employment.

           CHAPTER 4--GENERAL WORKFORCE INVESTMENT PROVISIONS

     SEC. 136. AUTHORIZATION OF APPROPRIATIONS.

       (a) Youth Workforce Investment Activities.--There are 
     authorized to be appropriated to carry out the activities 
     described in section 127(a), $820,430,000 for fiscal year 
     2015, $883,800,000 for fiscal year 2016, $902,139,000 for 
     fiscal year 2017, $922,148,000 for fiscal year 2018, 
     $943,828,000 for fiscal year 2019, and $963,837,000 for 
     fiscal year 2020.
       (b) Adult Employment and Training Activities.--There are 
     authorized to be appropriated to carry out the activities 
     described in section 132(a)(1), $766,080,000 for fiscal year 
     2015, $825,252,000 for fiscal year 2016, $842,376,000 for 
     fiscal year 2017, $861,060,000 for

[[Page 10933]]

     fiscal year 2018, $881,303,000 for fiscal year 2019, and 
     $899,987,000 for fiscal year 2020.
       (c) Dislocated Worker Employment and Training Activities.--
     There are authorized to be appropriated to carry out the 
     activities described in section 132(a)(2), $1,222,457,000 for 
     fiscal year 2015, $1,316,880,000 for fiscal year 2016, 
     $1,344,205,000 for fiscal year 2017, $1,374,019,000 for 
     fiscal year 2018, $1,406,322,000 for fiscal year 2019, and 
     $1,436,137,000 for fiscal year 2020.

                         Subtitle C--Job Corps

     SEC. 141. PURPOSES.

       The purposes of this subtitle are--
       (1) to maintain a national Job Corps program, carried out 
     in partnership with States and communities, to--
       (A) assist eligible youth to connect to the labor force by 
     providing them with intensive social, academic, career and 
     technical education, and service-learning opportunities, in 
     primarily residential centers, in order for such youth to 
     obtain secondary school diplomas or recognized postsecondary 
     credentials leading to--
       (i) successful careers, in in-demand industry sectors or 
     occupations or the Armed Forces, that will result in economic 
     self-sufficiency and opportunities for advancement; or
       (ii) enrollment in postsecondary education, including an 
     apprenticeship program; and
       (B) support responsible citizenship;
       (2) to set forth standards and procedures for selecting 
     individuals as enrollees in the Job Corps;
       (3) to authorize the establishment of Job Corps centers in 
     which enrollees will participate in intensive programs of 
     activities described in this subtitle; and
       (4) to prescribe various other powers, duties, and 
     responsibilities incident to the operation and continuing 
     development of the Job Corps.

     SEC. 142. DEFINITIONS.

       In this subtitle:
       (1) Applicable local board.--The term ``applicable local 
     board'' means a local board--
       (A) that provides information for a Job Corps center on 
     local employment opportunities and the job skills needed to 
     obtain the opportunities; and
       (B) that serves communities in which the graduates of the 
     Job Corps center seek employment.
       (2) Applicable one-stop center.--The term ``applicable one-
     stop center'' means a one-stop center that provides services, 
     such as referral, assessment, recruitment, and placement, to 
     support the purposes of the Job Corps.
       (3) Enrollee.--The term ``enrollee'' means an individual 
     who has voluntarily applied for, been selected for, and 
     enrolled in the Job Corps program, and remains with the 
     program, but has not yet become a graduate.
       (4) Former enrollee.--The term ``former enrollee'' means an 
     individual who has voluntarily applied for, been selected 
     for, and enrolled in the Job Corps program, but left the 
     program prior to becoming a graduate.
       (5) Graduate.--The term ``graduate'' means an individual 
     who has voluntarily applied for, been selected for, and 
     enrolled in the Job Corps program and who, as a result of 
     participation in the Job Corps program, has received a 
     secondary school diploma or recognized equivalent, or 
     completed the requirements of a career and technical 
     education and training program that prepares individuals for 
     employment leading to economic self-sufficiency or entrance 
     into postsecondary education or training.
       (6) Job corps.--The term ``Job Corps'' means the Job Corps 
     described in section 143.
       (7) Job corps center.--The term ``Job Corps center'' means 
     a center described in section 147.
       (8) Operator.--The term ``operator'' means an entity 
     selected under this subtitle to operate a Job Corps center.
       (9) Region.--The term ``region'' means an area defined by 
     the Secretary.
       (10) Service provider.--The term ``service provider'' means 
     an entity selected under this subtitle to provide services 
     described in this subtitle to a Job Corps center.

     SEC. 143. ESTABLISHMENT.

       There shall be within the Department of Labor a ``Job 
     Corps''.

     SEC. 144. INDIVIDUALS ELIGIBLE FOR THE JOB CORPS.

       (a) In General.--To be eligible to become an enrollee, an 
     individual shall be--
       (1) not less than age 16 and not more than age 21 on the 
     date of enrollment, except that--
       (A) not more than 20 percent of the individuals enrolled in 
     the Job Corps may be not less than age 22 and not more than 
     age 24 on the date of enrollment; and
       (B) either such maximum age limitation may be waived by the 
     Secretary, in accordance with regulations of the Secretary, 
     in the case of an individual with a disability;
       (2) a low-income individual; and
       (3) an individual who is one or more of the following:
       (A) Basic skills deficient.
       (B) A school dropout.
       (C) A homeless individual (as defined in section 41403(6) 
     of the Violence Against Women Act of 1994 (42 U.S.C. 14043e-
     2(6))), a homeless child or youth (as defined in section 
     725(2) of the McKinney-Vento Homeless Assistance Act (42 
     U.S.C. 11434a(2))), a runaway, an individual in foster care, 
     or an individual who was in foster care and has aged out of 
     the foster care system.
       (D) A parent.
       (E) An individual who requires additional education, career 
     and technical education or training, or workforce preparation 
     skills to be able to obtain and retain employment that leads 
     to economic self-sufficiency.
       (b) Special Rule for Veterans.--Notwithstanding the 
     requirement of subsection (a)(2), a veteran shall be eligible 
     to become an enrollee under subsection (a) if the 
     individual--
       (1) meets the requirements of paragraphs (1) and (3) of 
     such subsection; and
       (2) does not meet the requirement of subsection (a)(2) 
     because the military income earned by such individual within 
     the 6-month period prior to the individual's application for 
     Job Corps prevents the individual from meeting such 
     requirement.

     SEC. 145. RECRUITMENT, SCREENING, SELECTION, AND ASSIGNMENT 
                   OF ENROLLEES.

       (a) Standards and Procedures.--
       (1) In general.--The Secretary shall prescribe specific 
     standards and procedures for the recruitment, screening, and 
     selection of eligible applicants for the Job Corps, after 
     considering recommendations from Governors of States, local 
     boards, and other interested parties.
       (2) Methods.--In prescribing standards and procedures under 
     paragraph (1), the Secretary, at a minimum, shall--
       (A) prescribe procedures for informing enrollees that drug 
     tests will be administered to the enrollees and the results 
     received within 45 days after the enrollees enroll in the Job 
     Corps;
       (B) establish standards for recruitment of Job Corps 
     applicants;
       (C) establish standards and procedures for--
       (i) determining, for each applicant, whether the 
     educational and career and technical education and training 
     needs of the applicant can best be met through the Job Corps 
     program or an alternative program in the community in which 
     the applicant resides; and
       (ii) obtaining from each applicant pertinent data relating 
     to background, needs, and interests for determining 
     eligibility and potential assignment;
       (D) where appropriate, take measures to improve the 
     professional capability of the individuals conducting 
     screening of the applicants; and
       (E) assure appropriate representation of enrollees from 
     urban areas and from rural areas.
       (3) Implementation.--The standards and procedures shall be 
     implemented through arrangements with--
       (A) applicable one-stop centers;
       (B) organizations that have a demonstrated record of 
     effectiveness in serving at-risk youth and placing such youth 
     into employment, including community action agencies, 
     business organizations, or labor organizations; and
       (C) child welfare agencies that are responsible for 
     children and youth eligible for benefits and services under 
     section 477 of the Social Security Act (42 U.S.C. 677).
       (4) Consultation.--The standards and procedures shall 
     provide for necessary consultation with individuals and 
     organizations, including court, probation, parole, law 
     enforcement, education, welfare, and medical authorities and 
     advisers.
       (5) Reimbursement.--The Secretary is authorized to enter 
     into contracts with and make payments to individuals and 
     organizations for the cost of conducting recruitment, 
     screening, and selection of eligible applicants for the Job 
     Corps, as provided for in this section. The Secretary shall 
     make no payment to any individual or organization solely as 
     compensation for referring the names of applicants for the 
     Job Corps.
       (b) Special Limitations on Selection.--
       (1) In general.--No individual shall be selected as an 
     enrollee unless the individual or organization implementing 
     the standards and procedures described in subsection (a) 
     determines that--
       (A) there is a reasonable expectation that the individual 
     considered for selection can participate successfully in 
     group situations and activities, and is not likely to engage 
     in behavior that would prevent other enrollees from receiving 
     the benefit of the Job Corps program or be incompatible with 
     the maintenance of sound discipline and satisfactory 
     relationships between the Job Corps center to which the 
     individual might be assigned and communities surrounding the 
     Job Corps center;
       (B) the individual manifests a basic understanding of both 
     the rules to which the individual will be subject and of the 
     consequences of failure to observe the rules, and agrees to 
     comply with such rules; and
       (C) the individual has passed a background check conducted 
     in accordance with procedures established by the Secretary 
     and with applicable State and local laws.
       (2) Individuals on probation, parole, or supervised 
     release.--An individual on probation, parole, or supervised 
     release may be selected as an enrollee only if release from 
     the supervision of the probation or parole official involved 
     is satisfactory to the official

[[Page 10934]]

     and the Secretary and does not violate applicable laws 
     (including regulations). No individual shall be denied a 
     position in the Job Corps solely on the basis of individual 
     contact with the criminal justice system except for a 
     disqualifying conviction as specified in paragraph (3).
       (3) Individuals convicted of certain crimes.--An individual 
     shall not be selected as an enrollee if the individual has 
     been convicted of a felony consisting of murder (as described 
     in section 1111 of title 18, United States Code), child 
     abuse, or a crime involving rape or sexual assault.
       (c) Assignment Plan.--
       (1) In general.--Every 2 years, the Secretary shall develop 
     and implement a plan for assigning enrollees to Job Corps 
     centers. In developing the plan, the Secretary shall, based 
     on the analysis described in paragraph (2), establish 
     targets, applicable to each Job Corps center, for--
       (A) the maximum attainable percentage of enrollees at the 
     Job Corps center that reside in the State in which the center 
     is located; and
       (B) the maximum attainable percentage of enrollees at the 
     Job Corps center that reside in the region in which the 
     center is located, and in surrounding regions.
       (2) Analysis.--In order to develop the plan described in 
     paragraph (1), every 2 years the Secretary, in consultation 
     with operators of Job Corps centers, shall analyze relevant 
     factors relating to each Job Corps center, including--
       (A) the size of the population of individuals eligible to 
     participate in Job Corps in the State and region in which the 
     Job Corps center is located, and in surrounding regions;
       (B) the relative demand for participation in the Job Corps 
     in the State and region, and in surrounding regions;
       (C) the capacity and utilization of the Job Corps center, 
     including the education, training, and supportive services 
     provided through the center; and
       (D) the performance of the Job Corps center relating to the 
     expected levels of performance for the indicators described 
     in section 159(c)(1), and whether any actions have been taken 
     with respect to such center pursuant to paragraphs (2) and 
     (3) of section 159(f).
       (d) Assignment of Individual Enrollees.--
       (1) In general.--After an individual has been selected for 
     the Job Corps in accordance with the standards and procedures 
     of the Secretary under subsection (a), the enrollee shall be 
     assigned to the Job Corps center that 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 
     Secretary may waive this requirement if--
       (A) the enrollee would be unduly delayed in participating 
     in the Job Corps program because the closest center is 
     operating at full capacity; or
       (B) the parent or guardian of the enrollee requests 
     assignment of the enrollee to another Job Corps center due to 
     circumstances in the community of the enrollee that would 
     impair prospects for successful participation in the Job 
     Corps program.
       (2) Enrollees who are younger than 18.--An enrollee who is 
     younger than 18 shall not be assigned to a Job Corps center 
     other than the center closest to the home that offers the 
     career and technical education and training desired by the 
     enrollee pursuant to paragraph (1) if the parent or guardian 
     of the enrollee objects to the assignment.

     SEC. 146. ENROLLMENT.

       (a) Relationship Between Enrollment and Military 
     Obligations.--Enrollment in the Job Corps shall not relieve 
     any individual of obligations under the Military Selective 
     Service Act (50 U.S.C. App. 451 et seq.).
       (b) Period of Enrollment.--No individual may be enrolled in 
     the Job Corps for more than 2 years, except--
       (1) in a case in which completion of an advanced career 
     training program under section 148(c) would require an 
     individual to participate in the Job Corps for not more than 
     one additional year;
       (2) in the case of an individual with a disability who 
     would reasonably be expected to meet the standards for a Job 
     Corps graduate, as defined under section 142(5), if allowed 
     to participate in the Job Corps for not more than 1 
     additional year;
       (3) in the case of an individual who participates in 
     national service, as authorized by a Civilian Conservation 
     Center program, who would be granted an enrollment extension 
     in the Job Corps for the amount of time equal to the period 
     of national service; or
       (4) as the Secretary may authorize in a special case.

     SEC. 147. JOB CORPS CENTERS.

       (a) Operators and Service Providers.--
       (1) Eligible entities.--
       (A) Operators.--The Secretary shall enter into an agreement 
     with a Federal, State, or local agency, an area career and 
     technical education school, a residential career and 
     technical education school, or a private organization, for 
     the operation of each Job Corps center.
       (B) Providers.--The Secretary may enter into an agreement 
     with a local entity, or other entity with the necessary 
     capacity, to provide activities described in this subtitle to 
     a Job Corps center.
       (2) Selection process.--
       (A) Competitive basis.--Except as provided in subsections 
     (a) and (b) of section 3304 of title 41, United States Code, 
     the Secretary shall select on a competitive basis an entity 
     to operate a Job Corps center and entities to provide 
     activities described in this subtitle to the Job Corps 
     center. In developing a solicitation for an operator or 
     service provider, the Secretary shall consult with the 
     Governor of the State in which the center is located, the 
     workforce council for the Job Corps center (if established), 
     and the applicable local board regarding the contents of such 
     solicitation, including elements that will promote the 
     consistency of the activities carried out through the center 
     with the objectives set forth in the State plan or in a local 
     plan.
       (B) Recommendations and considerations.--
       (i) Operators.--In selecting an entity to operate a Job 
     Corps center, the Secretary shall consider--

       (I) the ability of the entity to coordinate the activities 
     carried out through the Job Corps center with activities 
     carried out under the appropriate State plan and local plans;
       (II) the ability of the entity to offer career and 
     technical education and training that has been proposed by 
     the workforce council under section 154(c), and the degree to 
     which such education and training reflects employment 
     opportunities in the local areas in which enrollees at the 
     center intend to seek employment;
       (III) the degree to which the entity demonstrates 
     relationships with the surrounding communities, employers, 
     labor organizations, State boards, local boards, applicable 
     one-stop centers, and the State and region in which the 
     center is located;
       (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 indicators of performance for eligible youth 
     described in section 116(b)(2)(A)(ii); and
       (V) the ability of the entity to demonstrate a record of 
     successfully assisting at-risk youth to connect to the 
     workforce, including providing them with intensive academics 
     and career and technical education and training.

       (ii) Providers.--In selecting a service provider for a Job 
     Corps center, the Secretary shall consider the factors 
     described in clause (i).
       (3) Additional selection factors.--To be eligible to 
     operate a Job Corps center, an entity shall submit to the 
     Secretary, at such time and in such manner as the Secretary 
     may require, information related to additional selection 
     factors, which shall include the following:
       (A) A description of the program activities that will be 
     offered at the center and how the academics and career and 
     technical education and training reflect State and local 
     employment opportunities, including opportunities in in-
     demand industry sectors and occupations recommended by the 
     workforce council under section 154(c)(2)(A).
       (B) 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 or 
     education leading to a recognized postsecondary credential 
     upon completion of the program.
       (C) A description of the demonstrated record of 
     effectiveness that the entity has in placing at-risk youth 
     into employment and postsecondary education, including past 
     performance of operating a Job Corps center under this 
     subtitle or subtitle C of title I of the Workforce Investment 
     Act of 1998, and as appropriate, the entity's demonstrated 
     effectiveness in assisting individuals in achieving the 
     indicators of performance for eligible youth described in 
     section 116(b)(2)(A)(ii).
       (D) A description of the relationships that the entity has 
     developed with State boards, local boards, applicable one-
     stop centers, employers, labor organizations, State and local 
     educational agencies, and the surrounding communities in 
     which the center is located, in an effort to promote a 
     comprehensive statewide workforce development system.
       (E) A description of the entity's ability to coordinate the 
     activities carried out through the Job Corps center with 
     activities carried out under the appropriate State plan and 
     local plans.
       (F) 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).
       (G) A description of the steps to be taken to control costs 
     in accordance with section 159(a)(3).
       (H) A detailed budget of the activities that will be 
     supported using funds under this subtitle and non-Federal 
     resources.
       (I) An assurance the entity is licensed to operate in the 
     State in which the center is located.
       (J) An assurance the entity will comply with basic health 
     and safety codes, which

[[Page 10935]]

     shall include the disciplinary measures described in section 
     152(b).
       (K) Any other information on additional selection factors 
     that the Secretary may require.
       (b) High-performing Centers.--
       (1) In general.--If an entity meets the requirements 
     described in paragraph (2) as applied to a particular Job 
     Corps center, such entity shall be allowed to compete in any 
     competitive selection process carried out for an award to 
     operate such center.
       (2) High performance.--An entity shall be considered to be 
     an operator of a high-performing center if the Job Corps 
     center operated by the entity--
       (A) is ranked among the top 20 percent of Job Corps centers 
     for the most recent preceding program year; and
       (B) meets the expected levels of performance established 
     under section 159(c)(1) and, with respect to each of the 
     primary indicators of performance for eligible youth 
     described in section 116(b)(2)(A)(ii)--
       (i) for the period of the most recent preceding 3 program 
     years for which information is available at the time the 
     determination is made, achieved an average of 100 percent, or 
     higher, of the expected level of performance established 
     under section 159(c)(1) for the indicator; and
       (ii) for the most recent preceding program year for which 
     information is available at the time the determination is 
     made, achieved 100 percent, or higher, of the expected level 
     of performance established under such section for the 
     indicator.
       (3) Transition.--If any of the program years described in 
     paragraph (2)(B) precedes the implementation of the 
     establishment of expected levels of performance under section 
     159(c) and the application of the primary indicators of 
     performance for eligible youth described in section 
     116(b)(2)(A)(ii), an entity shall be considered an operator 
     of a high-performing center during that period if the Job 
     Corps center operated by the entity--
       (A) meets the requirements of paragraph (2)(B) with respect 
     to such preceding program years using the performance of the 
     Job Corps center regarding the national goals or targets 
     established by the Office of the Job Corps under the previous 
     performance accountability system for--
       (i) the 6-month follow-up placement rate of graduates in 
     employment, the military, education, or training;
       (ii) the 12-month follow-up placement rate of graduates in 
     employment, the military, education, or training;
       (iii) the 6-month follow-up average weekly earnings of 
     graduates;
       (iv) the rate of attainment of secondary school diplomas or 
     their recognized equivalent;
       (v) the rate of attainment of completion certificates for 
     career and technical training;
       (vi) average literacy gains; and
       (vii) average numeracy gains; or
       (B) is ranked among the top 5 percent of Job Corps centers 
     for the most recent preceding program year.
       (c) Character and Activities.--Job Corps centers may be 
     residential or nonresidential in character, and shall be 
     designed and operated so as to provide enrollees, in a well-
     supervised setting, with access to activities described in 
     this subtitle. In any year, no more than 20 percent of the 
     individuals enrolled in the Job Corps may be nonresidential 
     participants in the Job Corps.
       (d) 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 provide, 
     in addition to academics, career and technical education and 
     training, and workforce preparation skills training, 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) Assistance during disasters.--Enrollees in Civilian 
     Conservation Centers may provide assistance in addressing 
     national, State, and local disasters, consistent with current 
     child labor laws (including regulations). The Secretary of 
     Agriculture shall ensure that with respect to the provision 
     of such assistance the enrollees are properly trained, 
     equipped, supervised, and dispatched consistent with 
     standards for the conservation and rehabilitation of wildlife 
     established under the Fish and Wildlife Coordination Act (16 
     U.S.C. 661 et seq.).
       (3) National liaison.--The Secretary of Agriculture shall 
     designate a Job Corps National Liaison to support the 
     agreement under this section between the Departments of Labor 
     and Agriculture.
       (e) Indian Tribes.--
       (1) General authority.--The Secretary may enter into 
     agreements with Indian tribes to operate Job Corps centers 
     for Indians.
       (2) Definitions.--In this subsection, the terms ``Indian'' 
     and ``Indian tribe'' have the meanings given such terms in 
     subsections (d) and (e), respectively, of section 4 of the 
     Indian Self-Determination and Education Assistance Act (25 
     U.S.C. 450b).
       (f) Length of Agreement.--The agreement described in 
     subsection (a)(1)(A) shall be for not more than a 2-year 
     period. The Secretary may exercise any contractual option to 
     renew the agreement in 1-year increments for not more than 3 
     additional years, consistent with the requirements of 
     subsection (g).
       (g) Renewal Conditions.--
       (1) In general.--Subject to paragraph (2), the Secretary 
     shall not renew the terms of an agreement for any 1-year 
     additional period described in subsection (f) for an entity 
     to operate a particular Job Corps center if, for both of the 
     2 most recent preceding program years for which information 
     is available at the time the determination is made, or if a 
     second program year is not available, the preceding year for 
     which information is available, such center--
       (A) has been ranked in the lowest 10 percent of Job Corps 
     centers; and
       (B) failed to achieve an average of 50 percent or higher of 
     the expected level of performance under section 159(c)(1) 
     with respect to each of the primary indicators of performance 
     for eligible youth described in section 116(b)(2)(A)(ii).
       (2) Exception.--Notwithstanding paragraph (1), the 
     Secretary may exercise an option to renew the agreement for 
     no more than 2 additional years if the Secretary determines 
     such renewal would be in the best interest of the Job Corps 
     program, taking into account factors including--
       (A) significant improvements in program performance from 
     when the agreement was originally executed, which may include 
     consideration of partial program year information, or steps 
     taken that are likely to result in such improvement;
       (B) that the performance is due to circumstances beyond the 
     control of the entity, such as a natural disaster, economic 
     downturn in the area, or other such similar factors;
       (C) a significant disruption in the operations of the 
     center, including in the ability to continue to provide 
     services to students, or significant increase in the cost of 
     such operations; or
       (D) a significant disruption in the procurement process 
     with respect to carrying out a competition for the selection 
     of a center operator.
       (3) Additional considerations.--The Secretary shall only 
     renew the agreement of an entity to operate a Job Corps 
     center if the entity--
       (A) has a satisfactory record of integrity and business 
     ethics;
       (B) has adequate financial resources to perform the 
     agreement;
       (C) has the necessary organization, experience, accounting 
     and operational controls, and technical skills; and
       (D) is otherwise qualified and eligible under applicable 
     laws and regulations, including that the contractor is not 
     under suspension or debarred from eligibility for Federal 
     contracts.

     SEC. 148. PROGRAM ACTIVITIES.

       (a) Activities Provided by Job Corps Centers.--
       (1) In general.--Each Job Corps center shall provide 
     enrollees with an intensive, well organized, and fully 
     supervised program of education, including English language 
     acquisition programs, career and technical education and 
     training, work experience, work-based learning, recreational 
     activities, physical rehabilitation and development, driver's 
     education, and counseling, which may include information 
     about financial literacy. Each Job Corps center shall provide 
     enrollees assigned to the center with access to career 
     services described in clauses (i) through (xi) of section 
     134(c)(2)(A).
       (2) Relationship to opportunities.--The activities provided 
     under this subsection shall be targeted to helping enrollees, 
     on completion of their enrollment--
       (A) secure and maintain meaningful unsubsidized employment;
       (B) enroll in and complete secondary education or 
     postsecondary education or training programs, including other 
     suitable career and technical education and training, and 
     apprenticeship programs; or
       (C) satisfy Armed Forces requirements.
       (3) Link to employment opportunities.--The career and 
     technical education and training provided shall be linked to 
     employment opportunities in in-demand industry sectors and 
     occupations in the State or local area in which the Job Corps 
     center is located and, to the extent practicable, in the 
     State or local area in which the enrollee intends to seek 
     employment after graduation.
       (b) Academic and Career and Technical Education and 
     Training.--The Secretary may arrange for career and technical 
     education and training of enrollees through local public or 
     private educational agencies, career and technical 
     educational institutions, technical institutes, or national 
     service providers, whenever such entities provide education 
     and training substantially equivalent in cost and quality to 
     that which the Secretary could provide through other means.
       (c) Advanced Career Training Programs.--
       (1) In general.--The Secretary may arrange for programs of 
     advanced career training for selected enrollees in which the 
     enrollees may continue to participate for a period of not to 
     exceed 1 year in addition to the period of participation to 
     which the enrollees

[[Page 10936]]

     would otherwise be limited. The advanced career training may 
     be provided through the eligible providers of training 
     services identified under section 122.
       (2) Benefits.--During the period of participation in an 
     advanced career training program, an enrollee shall be 
     eligible for full Job Corps benefits, or a monthly stipend 
     equal to the average value of the residential support, food, 
     allowances, and other benefits provided to enrollees assigned 
     to residential Job Corps centers.
       (3) Demonstration.--The Secretary shall develop standards 
     by which 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) for the most recently preceding 2 program years, such 
     operator has, on average, met or exceeded the expected levels 
     of performance under section 159(c)(1) for each of the 
     primary indicators of performance for eligible youth 
     described in section 116(b)(2)(A)(ii).
       (d) Graduate Services.--In order to promote the retention 
     of graduates in employment or postsecondary education, the 
     Secretary shall arrange for the provision of job placement 
     and support services to graduates for up to 12 months after 
     the date of graduation. Multiple resources, including one-
     stop partners, may support the provision of these services, 
     including services from the State vocational rehabilitation 
     agency, to supplement job placement and job development 
     efforts for Job Corps graduates who are individuals with 
     disabilities.
       (e) Child Care.--The Secretary shall, to the extent 
     practicable, provide child care at or near Job Corps centers, 
     for individuals who require child care for their children in 
     order to participate in the Job Corps.

     SEC. 149. COUNSELING AND JOB PLACEMENT.

       (a) Assessment and Counseling.--The Secretary shall arrange 
     for assessment and counseling for each enrollee at regular 
     intervals to measure progress in the academic and career and 
     technical education and training programs carried out through 
     the Job Corps.
       (b) Placement.--The Secretary shall arrange for assessment 
     and counseling for enrollees prior to their scheduled 
     graduations to determine their capabilities and, based on 
     their capabilities, shall place the enrollees in employment 
     leading to economic self-sufficiency for which the enrollees 
     are trained or assist the enrollees in participating in 
     further activities described in this subtitle. In arranging 
     for the placement of graduates in jobs, the Secretary shall 
     utilize the one-stop delivery system to the maximum extent 
     practicable.
       (c) Status and Progress.--The Secretary shall determine the 
     status and progress of enrollees scheduled for graduation and 
     make every effort to assure that their needs for further 
     activities described in this subtitle are met.
       (d) Services to Former Enrollees.--The Secretary may 
     provide such services as the Secretary determines to be 
     appropriate under this subtitle to former enrollees.

     SEC. 150. SUPPORT.

       (a) Personal Allowances.--The Secretary may provide 
     enrollees assigned to Job Corps centers with such personal 
     allowances as the Secretary may determine to be necessary or 
     appropriate to meet the needs of the enrollees.
       (b) Transition Allowances.--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 recognized 
     postsecondary credentials.
       (c) Transition Support.--The Secretary may arrange for the 
     provision of 3 months of employment services for former 
     enrollees.

     SEC. 151. OPERATIONS.

       (a) Operating Plan.--The provisions of the contract between 
     the Secretary and an entity selected to operate a Job Corps 
     center shall, at a minimum, serve as an operating plan for 
     the Job Corps center.
       (b) Additional Information.--The Secretary may require the 
     operator, in order to remain eligible to operate the Job 
     Corps center, to submit such additional information as the 
     Secretary may require, which shall be considered part of the 
     operating plan.
       (c) Availability.--The Secretary shall make the operating 
     plan described in subsections (a) and (b), excluding any 
     proprietary information, available to the public.

     SEC. 152. STANDARDS OF CONDUCT.

       (a) Provision and Enforcement.--The Secretary shall 
     provide, and directors of Job Corps centers shall stringently 
     enforce, standards of conduct within the centers. Such 
     standards of conduct shall include provisions forbidding the 
     actions described in subsection (b)(2)(A).
       (b) Disciplinary Measures.--
       (1) In general.--To promote the proper behavioral standards 
     in the Job Corps, the directors of Job Corps centers shall 
     have the authority to take appropriate disciplinary measures 
     against enrollees if such a director determines that an 
     enrollee has committed a violation of the standards of 
     conduct. The director shall dismiss the enrollee from the Job 
     Corps if the director determines that the retention of the 
     enrollee in the Job Corps will jeopardize the enforcement of 
     such standards, threaten the safety of staff, students, or 
     the local community, or diminish the opportunities of other 
     enrollees.
       (2) Zero tolerance policy and drug testing.--
       (A) Guidelines.--The Secretary shall adopt guidelines 
     establishing a zero tolerance policy for an act of violence, 
     for use, sale, or possession of a controlled substance, for 
     abuse of alcohol, or for other illegal or disruptive 
     activity.
       (B) Drug testing.--The Secretary shall require drug testing 
     of all enrollees for controlled substances in accordance with 
     procedures prescribed by the Secretary under section 145(a).
       (C) Definitions.--In this paragraph:
       (i) Controlled substance.--The term ``controlled 
     substance'' has the meaning given the term in section 102 of 
     the Controlled Substances Act (21 U.S.C. 802).
       (ii) Zero tolerance policy.--The term ``zero tolerance 
     policy'' means a policy under which an enrollee shall be 
     automatically dismissed from the Job Corps after a 
     determination by the director that the enrollee has carried 
     out an action described in subparagraph (A).
       (c) Appeal.--A disciplinary measure taken by a director 
     under this section shall be subject to expeditious appeal in 
     accordance with procedures established by the Secretary.

     SEC. 153. COMMUNITY PARTICIPATION.

       (a) Business and Community Participation.--The director of 
     each Job Corps center shall ensure the establishment and 
     development of the mutually beneficial business and community 
     relationships and networks described in subsection (b), 
     including the use of local boards, in order to enhance the 
     effectiveness of such centers.
       (b) Networks.--The activities carried out by each Job Corps 
     center under this section shall include--
       (1) establishing and developing relationships and networks 
     with--
       (A) local and distant employers, to the extent practicable, 
     in coordination with entities carrying out other Federal and 
     non-Federal programs that conduct similar outreach to 
     employers;
       (B) applicable one-stop centers and applicable local 
     boards, for the purpose of providing--
       (i) information to, and referral of, potential enrollees; 
     and
       (ii) job opportunities for Job Corps graduates; and
       (C)(i) entities carrying out relevant apprenticeship 
     programs and youth programs;
       (ii) labor-management organizations and local labor 
     organizations;
       (iii) employers and contractors that support national 
     training contractor programs; and
       (iv) community-based organizations, non-profit 
     organizations, and intermediaries providing workforce 
     development-related services; and
       (2) establishing and developing relationships with members 
     of the community in which the Job Corps center is located, 
     informing members of the community about the projects of the 
     Job Corps center and changes in the rules, procedures, or 
     activities of the center that may affect the community, and 
     planning events of mutual interest to the community and the 
     Job Corps center.
       (c) New Centers.--The director of a Job Corps center that 
     is not yet operating shall ensure the establishment and 
     development of the relationships and networks described in 
     subsection (b) at least 3 months prior to the date on which 
     the center accepts the first enrollee at the center.

     SEC. 154. WORKFORCE COUNCILS.

       (a) In General.--Each Job Corps center shall have a 
     workforce council, appointed by the director of the center, 
     in accordance with procedures established by the Secretary.
       (b) Workforce Council Composition.--
       (1) In general.--A workforce council shall be comprised 
     of--
       (A) a majority of members who shall be owners of business 
     concerns, chief executives or chief operating officers of 
     nongovernmental employers, or other private sector employers, 
     who--
       (i) have substantial management, hiring, or policy 
     responsibility; and
       (ii) represent businesses with employment opportunities 
     that reflect the employment opportunities of the applicable 
     local areas in which enrollees will be seeking employment;
       (B) representatives of labor organizations (where present) 
     and representatives of employees; and
       (C) enrollees and graduates of the Job Corps.
       (2) Local board.--The workforce council may include members 
     of the applicable local boards who meet the requirements 
     described in paragraph (1).
       (3) Employers outside of local area.--The workforce council 
     for a Job Corps center may include, or otherwise provide for 
     consultation with, employers from outside the local area who 
     are likely to hire a significant number of enrollees from the 
     Job Corps center.
       (4) Special rule for single state local areas.--In the case 
     of a single State local

[[Page 10937]]

     area designated under section 106(d), the workforce council 
     shall include a representative of the State Board.
       (c) Responsibilities.--The responsibilities of the 
     workforce council shall be--
       (1) to work closely with all applicable local boards in 
     order to determine, and recommend to the Secretary, 
     appropriate career and technical education and training for 
     the center;
       (2) to review all the relevant labor market information, 
     including related information in the State plan or the local 
     plan, to--
       (A) recommend the in-demand industry sectors or occupations 
     in the area in which the Job Corps center operates;
       (B) determine the employment opportunities in the local 
     areas in which the enrollees intend to seek employment after 
     graduation;
       (C) determine the skills and education that are necessary 
     to obtain the employment opportunities; and
       (D) recommend to the Secretary the type of career and 
     technical education and training that should be implemented 
     at the center to enable the enrollees to obtain the 
     employment opportunities; and
       (3) to meet at least once every 6 months to reevaluate the 
     labor market information, and other relevant information, to 
     determine, and recommend to the Secretary, any necessary 
     changes in the career and technical education and training 
     provided at the center.
       (d) New Centers.--The workforce council for a Job Corps 
     center that is not yet operating shall carry out the 
     responsibilities described in subsection (c) at least 3 
     months prior to the date on which the center accepts the 
     first enrollee at the center.

     SEC. 155. ADVISORY COMMITTEES.

       The Secretary may establish and use advisory committees in 
     connection with the operation of the Job Corps program, and 
     the operation of Job Corps centers, whenever the Secretary 
     determines that the availability of outside advice and 
     counsel on a regular basis would be of substantial benefit in 
     identifying and overcoming problems, in planning program or 
     center development, or in strengthening relationships between 
     the Job Corps and agencies, institutions, or groups engaged 
     in related activities.

     SEC. 156. EXPERIMENTAL PROJECTS AND TECHNICAL ASSISTANCE.

       (a) Projects.--The Secretary may carry out experimental, 
     research, or demonstration projects relating to carrying out 
     the Job Corps program. The Secretary may waive any provisions 
     of this subtitle that the Secretary finds would prevent the 
     Secretary from carrying out the projects if the Secretary 
     informs the Committee on Education and the Workforce of the 
     House of Representatives and the Committee on Health, 
     Education, Labor, and Pensions of the Senate, in writing, not 
     less than 90 days in advance of issuing such waiver.
       (b) Technical Assistance.--From the funds provided under 
     section 162 (for the purposes of administration), the 
     Secretary may reserve \1/4\ of 1 percent to provide, directly 
     or through grants, contracts, or other agreements or 
     arrangements as the Secretary considers appropriate, 
     technical assistance for the Job Corps program for the 
     purpose of improving program quality. Such assistance shall 
     include--
       (1) assisting Job Corps centers and programs--
       (A) in correcting deficiencies under, and violations of, 
     this subtitle;
       (B) in meeting or exceeding the expected levels of 
     performance under section 159(c)(1) for the indicators of 
     performance described in section 116(b)(2)(A);
       (C) in the development of sound management practices, 
     including financial management procedures; and
       (2) assisting entities, including entities not currently 
     operating a Job Corps center, in developing the additional 
     selection factors information described in section 147(a)(3).

     SEC. 157. APPLICATION OF PROVISIONS OF FEDERAL LAW.

       (a) Enrollees Not Considered to Be Federal Employees.--
       (1) In general.--Except as otherwise provided in this 
     subsection and in section 8143(a) of title 5, United States 
     Code, enrollees shall not be considered to be Federal 
     employees and shall not be subject to the provisions of law 
     relating to Federal employment, including such provisions 
     regarding hours of work, rates of compensation, leave, 
     unemployment compensation, and Federal employee benefits.
       (2) Provisions relating to taxes and social security 
     benefits.--For purposes of the Internal Revenue Code of 1986 
     and title II of the Social Security Act (42 U.S.C. 401 et 
     seq.), enrollees shall be deemed to be employees of the 
     United States and any service performed by an individual as 
     an enrollee shall be deemed to be performed in the employ of 
     the United States.
       (3) Provisions relating to compensation to federal 
     employees for work injuries.--For purposes of subchapter I of 
     chapter 81 of title 5, United States Code (relating to 
     compensation to Federal employees for work injuries), 
     enrollees shall be deemed to be civil employees of the 
     Government of the United States within the meaning of the 
     term ``employee'' as defined in section 8101 of title 5, 
     United States Code, and the provisions of such subchapter 
     shall apply as specified in section 8143(a) of title 5, 
     United States Code.
       (4) Federal tort claims provisions.--For purposes of the 
     Federal tort claims provisions in title 28, United States 
     Code, enrollees shall be considered to be employees of the 
     Government.
       (b) Adjustments and Settlements.--Whenever the Secretary 
     finds a claim for damages to a person or property resulting 
     from the operation of the Job Corps to be a proper charge 
     against the United States, and the claim is not cognizable 
     under section 2672 of title 28, United States Code, the 
     Secretary may adjust and settle the claim in an amount not 
     exceeding $1,500.
       (c) Personnel of the Uniformed Services.--Personnel of the 
     uniformed services who are detailed or assigned to duty in 
     the performance of agreements made by the Secretary for the 
     support of the Job Corps shall not be counted in computing 
     strength under any law limiting the strength of such services 
     or in computing the percentage authorized by law for any 
     grade in such services.

     SEC. 158. SPECIAL PROVISIONS.

       (a) Enrollment.--The Secretary shall ensure that women and 
     men have an equal opportunity to participate in the Job Corps 
     program, consistent with section 145.
       (b) Studies, Evaluations, Proposals, and Data.--The 
     Secretary shall assure that all studies, evaluations, 
     proposals, and data produced or developed with Federal funds 
     in the course of carrying out the Job Corps program shall 
     become the property of the United States.
       (c) Transfer of Property.--
       (1) In general.--Notwithstanding chapter 5 of title 40, 
     United States Code, and any other provision of law, the 
     Secretary and the Secretary of Education shall receive 
     priority by the Secretary of Defense for the direct transfer, 
     on a nonreimbursable basis, of the property described in 
     paragraph (2) for use in carrying out programs under this Act 
     or under any other Act.
       (2) Property.--The property described in this paragraph is 
     real and personal property under the control of the 
     Department of Defense that is not used by such Department, 
     including property that the Secretary of Defense determines 
     is in excess of current and projected requirements of such 
     Department.
       (d) Gross Receipts.--Transactions conducted by a private 
     for-profit or nonprofit entity that is an operator or service 
     provider for a Job Corps center shall not be considered to be 
     generating gross receipts. Such an operator or service 
     provider shall not be liable, directly or indirectly, to any 
     State or subdivision of a State (nor to any person acting on 
     behalf of such a State or subdivision) for any gross receipts 
     taxes, business privilege taxes measured by gross receipts, 
     or any similar taxes imposed on, or measured by, gross 
     receipts in connection with any payments made to or by such 
     entity for operating or providing services to a Job Corps 
     center. Such an operator or service provider shall not be 
     liable to any State or subdivision of a State to collect or 
     pay any sales, excise, use, or similar tax imposed on the 
     sale to or use by such operator or service provider of any 
     property, service, or other item in connection with the 
     operation of or provision of services to a Job Corps center.
       (e) Management Fee.--The Secretary shall provide each 
     operator and (in an appropriate case, as determined by the 
     Secretary) service provider with an equitable and negotiated 
     management fee of not less than 1 percent of the amount of 
     the funding provided under the appropriate agreement 
     specified in section 147.
       (f) Donations.--The Secretary may accept on behalf of the 
     Job Corps or individual Job Corps centers charitable 
     donations of cash or other assistance, including equipment 
     and materials, if such donations are available for 
     appropriate use for the purposes set forth in this subtitle.
       (g) Sale of Property.--Notwithstanding any other provision 
     of law, if the Administrator of General Services sells a Job 
     Corps center facility, the Administrator shall transfer the 
     proceeds from the sale to the Secretary, who shall use the 
     proceeds to carry out the Job Corps program.

     SEC. 159. MANAGEMENT INFORMATION.

       (a) Financial Management Information System.--
       (1) In general.--The Secretary shall establish procedures 
     to ensure that each operator, and each service provider, 
     maintains a financial management information system that will 
     provide--
       (A) accurate, complete, and current disclosures of the 
     costs of Job Corps operations; and
       (B) sufficient data for the effective evaluation of 
     activities carried out through the Job Corps program.
       (2) Accounts.--Each operator and service provider shall 
     maintain funds received under this subtitle in accounts in a 
     manner that ensures timely and accurate reporting as required 
     by the Secretary.
       (3) Fiscal responsibility.--Operators shall remain fiscally 
     responsible and control costs, regardless of whether the 
     funds made available for Job Corps centers are incrementally 
     increased or decreased between fiscal years.
       (b) Audit.--
       (1) Access.--The Secretary, the Inspector General of the 
     Department of Labor, the

[[Page 10938]]

     Comptroller General of the United States, and any of their 
     duly authorized representatives, shall have access to any 
     books, documents, papers, and records of the operators and 
     service providers described in subsection (a) that are 
     pertinent to the Job Corps program, for purposes of 
     conducting surveys, audits, and evaluations of the operators 
     and service providers.
       (2) Surveys, audits, and evaluations.--The Secretary shall 
     survey, audit, or evaluate, or arrange for the survey, audit, 
     or evaluation of, the operators and service providers, using 
     Federal auditors or independent public accountants. The 
     Secretary shall conduct such surveys, audits, or evaluations 
     not less often than once every 3 years.
       (c) Information on Indicators of Performance.--
       (1) Levels of performance and indicators.--The Secretary 
     shall annually establish expected levels of performance for a 
     Job Corps center and the Job Corps program relating to each 
     of the primary indicators of performance for eligible youth 
     described in section 116(b)(2)(A)(ii).
       (2) Performance of recruiters.--The Secretary shall also 
     establish performance indicators, and expected levels of 
     performance on the performance indicators, for recruitment 
     service providers serving the Job Corps program. The 
     performance indicators shall relate to--
       (A) the number of enrollees recruited, compared to the 
     established goals for such recruitment, and the number of 
     enrollees who remain committed to the program for 90 days 
     after enrollment; and
       (B) the measurements described in subparagraphs (I), (L), 
     and (M) of subsection (d)(1).
       (3) Performance of career transition service providers.--
     The Secretary shall also establish performance indicators, 
     and expected performance levels on the performance 
     indicators, for career transition service providers serving 
     the Job Corps program. The performance indicators shall 
     relate to--
       (A) the primary indicators of performance for eligible 
     youth described in section 116(b)(2)(A)(ii); and
       (B) the measurements described in subparagraphs (D), (E), 
     (H), (J), and (K) of subsection (d)(1).
       (4) 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, a report 
     including--
       (A) information on the performance of each Job Corps 
     center, and the Job Corps program, based on the performance 
     indicators described in paragraph (1), as compared to the 
     expected level of performance established under such 
     paragraph for each performance indicator; and
       (B) information on the performance of the service providers 
     described in paragraphs (2) and (3) on the performance 
     indicators established under such paragraphs, as compared to 
     the expected level of performance established for each 
     performance indicator.
       (d) Additional Information.--
       (1) In general.--The Secretary shall also collect, and 
     submit in the report described in subsection (c)(4), 
     information on the performance of each Job Corps center, and 
     the Job Corps program, regarding--
       (A) the number of enrollees served;
       (B) demographic information on the enrollees served, 
     including age, race, gender, and education and income level;
       (C) the number of graduates of a Job Corps center;
       (D) the number of graduates who entered the Armed Forces;
       (E) the number of graduates who entered apprenticeship 
     programs;
       (F) the number of graduates who received a regular 
     secondary school diploma;
       (G) the number of graduates who received a State recognized 
     equivalent of a secondary school diploma;
       (H) the number of graduates who entered unsubsidized 
     employment related to the career and technical education and 
     training received through the Job Corps program and the 
     number who entered unsubsidized employment not related to the 
     education and training received;
       (I) the percentage and number of former enrollees, 
     including the number dismissed under the zero tolerance 
     policy described in section 152(b);
       (J) the percentage and number of graduates who enter 
     postsecondary education;
       (K) the average wage of graduates who enter unsubsidized 
     employment--
       (i) on the first day of such employment; and
       (ii) on the day that is 6 months after such first day;
       (L) the percentages of enrollees described in subparagraphs 
     (A) and (B) of section 145(c)(1), as compared to the 
     percentage targets established by the Secretary under such 
     section for the center;
       (M) the cost per enrollee, which is calculated by comparing 
     the number of enrollees at the center in a program year to 
     the total budget for such center in the same program year;
       (N) the cost per graduate, which is calculated by comparing 
     the number of graduates of the center in a program year 
     compared to the total budget for such center in the same 
     program year; and
       (O) any additional information required by the Secretary.
       (2) Rules for reporting of data.--The disaggregation of 
     data under this subsection shall not be required when the 
     number of individuals in a category is insufficient to yield 
     statistically reliable information or when the results would 
     reveal personally identifiable information about an 
     individual.
       (e) Methods.--The Secretary shall collect the information 
     described in subsections (c) and (d), using methods described 
     in section 116(i)(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) Performance Assessments and Improvements.--
       (1) Assessments.--The Secretary shall conduct an annual 
     assessment of the performance of each Job Corps center. Based 
     on the assessment, the Secretary shall take measures to 
     continuously improve the performance of the Job Corps 
     program.
       (2) Performance improvement.--With respect to a Job Corps 
     center that fails to meet the expected levels of performance 
     relating to the primary indicators of performance specified 
     in subsection (c)(1), the Secretary shall develop and 
     implement a performance improvement plan. Such a plan shall 
     require action to be taken during a 1-year period, 
     including--
       (A) providing technical assistance to the center;
       (B) changing the career and technical education and 
     training offered at the center;
       (C) changing the management staff of the center;
       (D) replacing the operator of the center;
       (E) reducing the capacity of the center;
       (F) relocating the center; or
       (G) closing the center.
       (3) Additional performance improvement.--In addition to the 
     performance improvement plans required under paragraph (2), 
     the Secretary may develop and implement additional 
     performance improvement plans. Such a plan shall require 
     improvements, including the actions described in such 
     paragraph, for a Job Corps center that fails to meet criteria 
     established by the Secretary other than the expected levels 
     of performance described in such paragraph.
       (4) Civilian conservation centers.--With respect to a 
     Civilian Conservation Center that fails to meet the expected 
     levels of performance relating to the primary indicators of 
     performance specified in subsection (c)(1) or fails to 
     improve performance as described in paragraph (2) after 3 
     program years, the Secretary, in consultation with the 
     Secretary of Agriculture, shall select an entity to operate 
     the Civilian Conservation Center on a competitive basis, in 
     accordance with the requirements of section 147.
       (g) Participant Health and Safety.--
       (1) Center.--The Secretary shall ensure that a review by an 
     appropriate Federal, State, or local entity of the physical 
     condition and health-related activities of each Job Corps 
     center occurs annually.
       (2) Work-based learning locations.--The Secretary shall 
     require that an entity that has entered into a contract to 
     provide work-based learning activities for any Job Corps 
     enrollee under this subtitle shall comply with the 
     Occupational Safety and Health Act of 1970 (29 U.S.C. 651 et 
     seq.) or, as appropriate, under the corresponding State 
     Occupational Safety and Health Act of 1970 requirements in 
     the State in which such activities occur.
       (h) Buildings and Facilities.--The Secretary shall collect, 
     and submit in the report described in subsection (c)(4), 
     information regarding the state of Job Corps buildings and 
     facilities. Such report shall include--
       (1) a review of requested construction, rehabilitation, and 
     acquisition projects, by each Job Corps center; and
       (2) a review of new facilities under construction.
       (i) National and Community Service.--The Secretary shall 
     include in the report described in subsection (c)(4) 
     available information regarding the national and community 
     service activities of enrollees, particularly those enrollees 
     at Civilian Conservation Centers.
       (j) Closure of Job Corps Center.--Prior to the closure of 
     any Job Corps center, the Secretary shall ensure--
       (1) that the proposed decision to close the center is 
     announced in advance to the general public through 
     publication in the Federal Register or other appropriate 
     means;
       (2) the establishment of a reasonable comment period, not 
     to exceed 30 days, for interested individuals to submit 
     written comments to the Secretary; and
       (3) that the Member of Congress who represents the district 
     in which such center is located is notified within a 
     reasonable period of time in advance of any final decision to 
     close the center.

     SEC. 160. GENERAL PROVISIONS.

       The Secretary is authorized to--
       (1) disseminate, with regard to the provisions of section 
     3204 of title 39, United States Code, data and information in 
     such forms as the Secretary shall determine to be 
     appropriate, to public agencies, private organizations, and 
     the general public;

[[Page 10939]]

       (2) subject to section 157(b), collect or compromise all 
     obligations to or held by the Secretary and exercise all 
     legal or equitable rights accruing to the Secretary in 
     connection with the payment of obligations until such time as 
     such obligations may be referred to the Attorney General for 
     suit or collection; and
       (3) expend funds made available for purposes of this 
     subtitle--
       (A) for printing and binding, in accordance with applicable 
     law (including regulation); and
       (B) without regard to any other law (including regulation), 
     for rent of buildings and space in buildings and for repair, 
     alteration, and improvement of buildings and space in 
     buildings rented by the Secretary, except that the Secretary 
     shall not expend funds under the authority of this 
     subparagraph--
       (i) except when necessary to obtain an item, service, or 
     facility, that is required in the proper administration of 
     this subtitle, and that otherwise could not be obtained, or 
     could not be obtained in the quantity or quality needed, or 
     at the time, in the form, or under the conditions in which 
     the item, service, or facility is needed; and
       (ii) prior to having given written notification to the 
     Administrator of General Services (if the expenditure would 
     affect an activity that otherwise would be under the 
     jurisdiction of the General Services Administration) of the 
     intention of the Secretary to make the expenditure, and the 
     reasons and justifications for the expenditure.

     SEC. 161. JOB CORPS OVERSIGHT AND REPORTING.

       (a) Temporary Financial Reporting.--
       (1) In general.--During the periods described in paragraphs 
     (2) and (3)(B), the Secretary shall prepare and submit to the 
     applicable committees financial reports regarding the Job 
     Corps program under this subtitle. Each such financial report 
     shall include--
       (A) information regarding the implementation of the 
     financial oversight measures suggested in the May 31, 2013, 
     report of the Office of Inspector General of the Department 
     of Labor entitled ``The U.S. Department of Labor's Employment 
     and Training Administration Needs to Strengthen Controls over 
     Job Corps Funds'';
       (B) a description of any budgetary shortfalls for the 
     program for the period covered by the financial report, and 
     the reasons for such shortfalls; and
       (C) a description and explanation for any approval for 
     contract expenditures that are in excess of the amounts 
     provided for under the contract.
       (2) Timing of reports.--The Secretary shall submit a 
     financial report under paragraph (1) once every 6 months 
     beginning on the date of enactment of this Act, for a 3-year 
     period. After the completion of such 3-year period, the 
     Secretary shall submit a financial report under such 
     paragraph once a year for the next 2 years, unless additional 
     reports are required under paragraph (3)(B).
       (3) Reporting requirements in cases of budgetary 
     shortfalls.--If any financial report required under this 
     subsection finds that the Job Corps program under this 
     subtitle has a budgetary shortfall for the period covered by 
     the report, the Secretary shall--
       (A) not later than 90 days after the budgetary shortfall 
     was identified, submit a report to the applicable committees 
     explaining how the budgetary shortfall will be addressed; and
       (B) submit an additional financial report under paragraph 
     (1) for each 6-month period subsequent to the finding of the 
     budgetary shortfall until the Secretary demonstrates, through 
     such report, that the Job Corps program has no budgetary 
     shortfall.
       (b) Third-party Review.--Every 5 years after the date of 
     enactment of this Act, the Secretary shall provide for a 
     third-party review of the Job Corps program under this 
     subtitle that addresses all of the areas described in 
     subparagraphs (A) through (G) of section 169(a)(2). The 
     results of the review shall be submitted 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.
       (c) Criteria for Job Corps Center Closures.--By not later 
     than December 1, 2014, the Secretary shall establish written 
     criteria that the Secretary shall use to determine when a Job 
     Corps center supported under this subtitle is to be closed 
     and how to carry out such closure, and shall submit such 
     criteria to the applicable committees.
       (d) Definition of Applicable Committees.--In this section, 
     the term ``applicable committees'' means--
       (1) the Committee on Education and the Workforce of the 
     House of Representatives;
       (2) the Subcommittee on Labor, Health and Human Services, 
     Education, and Related Agencies of the Committee of 
     Appropriations of the House of Representatives;
       (3) the Committee on Health, Education, Labor, and Pensions 
     of the Senate; and
       (4) the Subcommittee on Labor, Health and Human Services, 
     Education, and Related Agencies of the Committee of 
     Appropriations of the Senate.

     SEC. 162. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to carry out this 
     subtitle--
       (1) $1,688,155,000 for fiscal year 2015;
       (2) $1,818,548,000 for fiscal year 2016;
       (3) $1,856,283,000 for fiscal year 2017;
       (4) $1,897,455,000 for fiscal year 2018;
       (5) $1,942,064,000 for fiscal year 2019; and
       (6) $1,983,236,000 for fiscal year 2020.

                     Subtitle D--National Programs

     SEC. 166. NATIVE AMERICAN PROGRAMS.

       (a) Purpose.--
       (1) In general.--The purpose of this section is to support 
     employment and training activities for Indian, Alaska Native, 
     and Native Hawaiian individuals in order--
       (A) to develop more fully the academic, occupational, and 
     literacy skills of such individuals;
       (B) to make such individuals more competitive in the 
     workforce and to equip them with the entrepreneurial skills 
     necessary for successful self-employment; and
       (C) to promote the economic and social development of 
     Indian, Alaska Native, and Native Hawaiian communities in 
     accordance with the goals and values of such communities.
       (2) Indian policy.--All programs assisted under this 
     section shall be administered in a manner consistent with the 
     principles of the Indian Self-Determination and Education 
     Assistance Act (25 U.S.C. 450 et seq.) and the government-to-
     government relationship between the Federal Government and 
     Indian tribal governments.
       (b) Definitions.--As used in this section:
       (1) Alaska native.--The term ``Alaska Native'' includes a 
     Native and a descendant of a Native, as such terms are 
     defined in subsections (b) and (r) of section 3 of the Alaska 
     Native Claims Settlement Act (43 U.S.C. 1602(b), (r)).
       (2) Indian, indian tribe, and tribal organization.--The 
     terms ``Indian'', ``Indian tribe'', and ``tribal 
     organization'' have the meanings given such terms in 
     subsections (d), (e), and (l), respectively, of section 4 of 
     the Indian Self-Determination and Education Assistance Act 
     (25 U.S.C. 450b).
       (3) Native hawaiian and native hawaiian organization.--The 
     terms ``Native Hawaiian'' and ``Native Hawaiian 
     organization'' have the meanings given such terms in section 
     7207 of the Native Hawaiian Education Act (20 U.S.C. 7517).
       (c) Program Authorized.--Every 4 years, the Secretary 
     shall, on a competitive basis, make grants to, or 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 the authorized activities 
     described in subsection (d).
       (d) Authorized Activities.--
       (1) In general.--Funds made available under subsection (c) 
     shall be used to carry out the activities described in 
     paragraph (2) that--
       (A) are consistent with this section; and
       (B) are necessary to meet the needs of Indians, Alaska 
     Natives, or Native Hawaiians preparing to enter, reenter, or 
     retain unsubsidized employment leading to self-sufficiency.
       (2) Workforce development activities and supplemental 
     services.--
       (A) In general.--Funds made available under subsection (c) 
     shall be used for--
       (i) comprehensive workforce development activities for 
     Indians, Alaska Natives, or Native Hawaiians, including 
     training on entrepreneurial skills; or
       (ii) supplemental services for Indian, Alaska Native, or 
     Native Hawaiian youth on or near Indian reservations and in 
     Oklahoma, Alaska, or Hawaii.
       (B) Special rule.--Notwithstanding any other provision of 
     this section, individuals who were eligible to participate in 
     programs under section 401 of the Job Training Partnership 
     Act (as such section was in effect on the day before the date 
     of enactment of the Workforce Investment Act of 1998) shall 
     be eligible to participate in an activity assisted under this 
     section.
       (e) Program Plan.--In order to receive a grant or enter 
     into a contract or cooperative agreement under this section, 
     an entity described in subsection (c) shall submit to the 
     Secretary a program plan that describes a 4-year strategy for 
     meeting the needs of Indian, Alaska Native, or Native 
     Hawaiian individuals, as appropriate, in the area served by 
     such entity. Such plan shall--
       (1) be consistent with the purpose of this section;
       (2) identify the population to be served;
       (3) identify the education and employment needs of the 
     population to be served and the manner in which the 
     activities to be provided will strengthen the ability of the 
     individuals served to obtain or retain unsubsidized 
     employment leading to self-sufficiency;
       (4) describe the activities to be provided and the manner 
     in which such activities are to be integrated with other 
     appropriate activities; and
       (5) describe, after the entity submitting the plan consults 
     with the Secretary, the performance accountability measures 
     to be used to assess the performance of entities in carrying 
     out the activities assisted under this section, which shall 
     include the primary indicators of performance described in 
     section 116(b)(2)(A) and expected levels of performance for 
     such indicators, in accordance with subsection (h).

[[Page 10940]]

       (f) Consolidation of Funds.--Each entity receiving 
     assistance under subsection (c) may consolidate such 
     assistance with assistance received from related programs in 
     accordance with the provisions of the Indian Employment, 
     Training and Related Services Demonstration Act of 1992 (25 
     U.S.C. 3401 et seq.).
       (g) Nonduplicative and Nonexclusive Services.--Nothing in 
     this section shall be construed--
       (1) to limit the eligibility of any entity described in 
     subsection (c) to participate in any activity offered by a 
     State or local entity under this Act; or
       (2) to preclude or discourage any agreement, between any 
     entity described in subsection (c) and any State or local 
     entity, to facilitate the provision of services by such 
     entity or to the population served by such entity.
       (h) Performance Accountability Measures.--
       (1) Additional performance indicators and standards.--
       (A) Development of indicators and standards.--The 
     Secretary, in consultation with the Native American 
     Employment and Training Council, shall develop a set of 
     performance indicators and standards that is in addition to 
     the primary indicators of performance described in section 
     116(b)(2)(A) and that shall be applicable to programs under 
     this section.
       (B) Special considerations.--Such performance indicators 
     and standards shall take into account--
       (i) the purpose of this section as described in subsection 
     (a)(1);
       (ii) the needs of the groups served by this section, 
     including the differences in needs among such groups in 
     various geographic service areas; and
       (iii) the economic circumstances of the communities served, 
     including differences in circumstances among various 
     geographic service areas.
       (2) Agreement on adjusted levels of performance.--The 
     Secretary and the entity described in subsection (c) shall 
     reach agreement on the levels of performance for each of the 
     primary indicators of performance described in section 
     116(b)(2)(A), taking into account economic conditions, 
     characteristics of the individuals served, and other 
     appropriate factors and using, to the extent practicable, the 
     statistical adjustment model under section 
     116(b)(3)(A)(viii). The levels agreed to shall be the 
     adjusted levels of performance and shall be incorporated in 
     the program plan.
       (i) Administrative Provisions.--
       (1) Organizational unit established.--The Secretary shall 
     designate a single organizational unit within the Department 
     of Labor that shall have primary responsibility for the 
     administration of the activities authorized under this 
     section.
       (2) Regulations.--The Secretary shall consult with the 
     entities described in subsection (c) in--
       (A) establishing regulations to carry out this section, 
     including regulations relating to the performance 
     accountability measures for entities receiving assistance 
     under this section; and
       (B) developing a funding distribution plan that takes into 
     consideration previous levels of funding (prior to the date 
     of enactment of this Act) to such entities.
       (3) Waivers.--
       (A) In general.--With respect to an entity described in 
     subsection (c), the Secretary, notwithstanding any other 
     provision of law, may, pursuant to a request submitted by 
     such entity that meets the requirements established under 
     subparagraph (B), waive any of the statutory or regulatory 
     requirements of this title that are inconsistent with the 
     specific needs of the entity described in such subsection, 
     except that the Secretary may not waive requirements relating 
     to wage and labor standards, worker rights, participation and 
     protection of workers and participants, grievance procedures, 
     and judicial review.
       (B) Request and approval.--An entity described in 
     subsection (c) that requests a waiver under subparagraph (A) 
     shall submit a plan to the Secretary to improve the program 
     of workforce investment activities carried out by the entity, 
     which plan shall meet the requirements established by the 
     Secretary and shall be generally consistent with the 
     requirements of section 189(i)(3)(B).
       (4) Advisory council.--
       (A) In general.--Using funds made available to carry out 
     this section, the Secretary shall establish a Native American 
     Employment and Training Council to facilitate the 
     consultation described in paragraph (2) and to provide the 
     advice described in subparagraph (C).
       (B) Composition.--The Council shall be composed of 
     individuals, appointed by the Secretary, who are 
     representatives of the entities described in subsection (c).
       (C) Duties.--The Council shall advise the Secretary on the 
     operation and administration of the programs assisted under 
     this section, including the selection of the individual 
     appointed as head of the unit established under paragraph 
     (1).
       (D) Personnel matters.--
       (i) Compensation of members.--Members of the Council shall 
     serve without compensation.
       (ii) Travel expenses.--The members of the Council shall be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from their homes or regular places of 
     business in the performance of services for the Council.
       (iii) Administrative support.--The Secretary shall provide 
     the Council with such administrative support as may be 
     necessary to perform the functions of the Council.
       (E) Chairperson.--The Council shall select a chairperson 
     from among its members.
       (F) Meetings.--The Council shall meet not less than twice 
     each year.
       (G) Application.--Section 14 of the Federal Advisory 
     Committee Act (5 U.S.C. App.) shall not apply to the Council.
       (5) Technical assistance.--The Secretary, acting through 
     the unit established under paragraph (1), is authorized to 
     provide technical assistance to entities described in 
     subsection (c) that receive assistance under such subsection 
     to enable such entities to improve the activities authorized 
     under this section that are provided by such entities.
       (6) Agreement for certain federally recognized indian 
     tribes to transfer funds to the program.--A federally 
     recognized Indian tribe that administers funds provided under 
     this section and funds provided by more than one State under 
     other sections of this title may enter into an agreement with 
     the Secretary and the Governors of the affected States to 
     transfer the funds provided by the States to the program 
     administered by the tribe under this section.
       (j) Compliance With Single Audit Requirements; Related 
     Requirement.--Grants made and contracts and cooperative 
     agreements entered into under this section shall be subject 
     to the requirements of chapter 75 of subtitle V of title 31, 
     United States Code, and charging of costs under this section 
     shall be subject to appropriate circulars issued by the 
     Office of Management and Budget.
       (k) Assistance to Unique Populations in Alaska and 
     Hawaii.--
       (1) In general.--Notwithstanding any other provision of 
     law, the Secretary is authorized to provide assistance to the 
     Cook Inlet Tribal Council, Incorporated, and the University 
     of Hawaii at Maui, for the unique populations who reside in 
     Alaska or Hawaii, respectively, to improve job training and 
     workforce investment activities.
       (2) Authorization of appropriations.--There are authorized 
     to be appropriated to carry out this subsection--
       (A) $461,000 for fiscal year 2015;
       (B) $497,000 for fiscal year 2016;
       (C) $507,000 for fiscal year 2017;
       (D) $518,000 for fiscal year 2018;
       (E) $530,000 for fiscal year 2019; and
       (F) $542,000 for fiscal year 2020.

     SEC. 167. MIGRANT AND SEASONAL FARMWORKER PROGRAMS.

       (a) In General.--Every 4 years, the Secretary shall, on a 
     competitive basis, make grants to, or enter into contracts 
     with, eligible entities to carry out the activities described 
     in subsection (d).
       (b) Eligible Entities.--To be eligible to receive a grant 
     or enter into a contract under this section, an entity shall 
     have an understanding of the problems of eligible migrant and 
     seasonal farmworkers (including dependents), a familiarity 
     with the area to be served, and the ability to demonstrate a 
     capacity to administer and deliver effectively a diversified 
     program of workforce investment activities (including youth 
     workforce investment activities) and related assistance for 
     eligible migrant and seasonal farmworkers.
       (c) Program Plan.--
       (1) In general.--To be eligible to receive a grant or enter 
     into a contract under this section, an entity described in 
     subsection (b) shall submit to the Secretary a plan that 
     describes a 4-year strategy for meeting the needs of eligible 
     migrant and seasonal farmworkers in the area to be served by 
     such entity.
       (2) Contents.--Such plan shall--
       (A) describe the population to be served and identify the 
     education and employment needs of the population to be served 
     and the manner in which the services to be provided will 
     strengthen the ability of the eligible migrant and seasonal 
     farmworkers and dependents to obtain or retain unsubsidized 
     employment, or stabilize their unsubsidized employment, 
     including upgraded employment in agriculture;
       (B) describe the related assistance and supportive services 
     to be provided and the manner in which such assistance and 
     services are to be integrated and coordinated with other 
     appropriate services;
       (C) describe the performance accountability measures to be 
     used to assess the performance of such entity in carrying out 
     the activities assisted under this section, which shall 
     include the expected levels of performance for the primary 
     indicators of performance described in section 116(b)(2)(A);
       (D) describe the availability and accessibility of local 
     resources, such as supportive services, services provided 
     through one-stop delivery systems, and education and training 
     services, and how the resources can be made available to the 
     population to be served; and
       (E) describe the plan for providing services under this 
     section, including strategies and

[[Page 10941]]

     systems for outreach, career planning, assessment, and 
     delivery through one-stop delivery systems.
       (3) Agreement on adjusted levels of performance.--The 
     Secretary and the entity described in subsection (b) shall 
     reach agreement on the levels of performance for each of the 
     primary indicators of performance described in section 
     116(b)(2)(A), taking into account economic conditions, 
     characteristics of the individuals served, and other 
     appropriate factors, and using, to the extent practicable, 
     the statistical adjustment model under section 
     116(b)(3)(A)(viii). The levels agreed to shall be the 
     adjusted levels of performance and shall be incorporated in 
     the program plan.
       (4) Administration.--Grants and contracts awarded under 
     this section shall be centrally administered by the 
     Department of Labor and competitively awarded by the 
     Secretary using procedures consistent with standard Federal 
     Government competitive procurement policies.
       (d) Authorized Activities.--Funds made available under this 
     section and section 127(a)(1) shall be used to carry out 
     workforce investment activities (including youth workforce 
     investment activities) and provide related assistance for 
     eligible migrant and seasonal farmworkers, which may 
     include--
       (1) outreach, employment, training, educational assistance, 
     literacy assistance, English language and literacy 
     instruction, pesticide and worker safety training, housing 
     (including permanent housing), supportive services, and 
     school dropout prevention and recovery activities;
       (2) followup services for those individuals placed in 
     employment;
       (3) self-employment and related business or micro-
     enterprise development or education as needed by eligible 
     individuals as identified pursuant to the plan required by 
     subsection (c);
       (4) customized career and technical education in 
     occupations that will lead to higher wages, enhanced 
     benefits, and long-term employment in agriculture or another 
     area; and
       (5) technical assistance to improve coordination of 
     services and implement best practices relating to service 
     delivery through one-stop delivery systems.
       (e) Consultation With Governors and Local Boards.--In 
     making grants and entering into contracts under this section, 
     the Secretary shall consult with the Governors and local 
     boards of the States in which the eligible entities will 
     carry out the activities described in subsection (d).
       (f) Regulations.--The Secretary shall consult with eligible 
     migrant and seasonal farmworkers groups and States in 
     establishing regulations to carry out this section, including 
     regulations relating to how economic and demographic barriers 
     to employment of eligible migrant and seasonal farmworkers 
     should be considered and included in the negotiations leading 
     to the adjusted levels of performance described in subsection 
     (c)(3).
       (g) Compliance With Single Audit Requirements; Related 
     Requirement.--Grants made and contracts entered into under 
     this section shall be subject to the requirements of chapter 
     75 of subtitle V of title 31, United States Code and charging 
     of costs under this section shall be subject to appropriate 
     circulars issued by the Office of Management and Budget.
       (h) Funding Allocation.--From the funds appropriated and 
     made available to carry out this section, the Secretary shall 
     reserve not more than 1 percent for discretionary purposes, 
     such as providing technical assistance to eligible entities.
       (i) Definitions.--In this section:
       (1) Eligible migrant and seasonal farmworkers.--The term 
     ``eligible migrant and seasonal farmworkers'' means 
     individuals who are eligible migrant farmworkers or are 
     eligible seasonal farmworkers.
       (2) Eligible migrant farmworker.--The term ``eligible 
     migrant farmworker'' means--
       (A) an eligible seasonal farmworker described in paragraph 
     (3)(A) whose agricultural labor requires travel to a job site 
     such that the farmworker is unable to return to a permanent 
     place of residence within the same day; and
       (B) a dependent of the farmworker described in subparagraph 
     (A).
       (3) Eligible seasonal farmworker.--The term ``eligible 
     seasonal farmworker'' means--
       (A) a low-income individual who--
       (i) for 12 consecutive months out of the 24 months prior to 
     application for the program involved, has been primarily 
     employed in agricultural or fish farming labor that is 
     characterized by chronic unemployment or underemployment; and
       (ii) faces multiple barriers to economic self-sufficiency; 
     and
       (B) a dependent of the person described in subparagraph 
     (A).

     SEC. 168. TECHNICAL ASSISTANCE.

       (a) General Technical Assistance.--
       (1) In general.--The Secretary shall ensure that the 
     Department has sufficient capacity to, and does, provide, 
     coordinate, and support the development of, appropriate 
     training, technical assistance, staff development, and other 
     activities, including--
       (A) assistance in replicating programs of demonstrated 
     effectiveness, to States and localities;
       (B) the training of staff providing rapid response 
     services;
       (C) the training of other staff of recipients of funds 
     under this title, including the staff of local boards and 
     State boards;
       (D) the training of members of State boards and local 
     boards;
       (E) assistance in the development and implementation of 
     integrated, technology-enabled intake and case management 
     information systems for programs carried out under this Act 
     and programs carried out by one-stop partners, such as 
     standard sets of technical requirements for the systems, 
     offering interfaces that States could use in conjunction with 
     their current (as of the first date of implementation of the 
     systems) intake and case management information systems that 
     would facilitate shared registration across programs;
       (F) assistance regarding accounting and program operations 
     to States and localities (when such assistance would not 
     supplant assistance provided by the State);
       (G) peer review activities under this title; and
       (H) in particular, assistance to States in making 
     transitions to implement the provisions of this Act.
       (2) Form of assistance.--
       (A) In general.--In order to carry out paragraph (1) on 
     behalf of a State or recipient of financial assistance under 
     section 166 or 167, the Secretary, after consultation with 
     the State or grant recipient, may award grants or enter into 
     contracts or cooperative agreements.
       (B) Limitation.--Grants or contracts awarded under 
     paragraph (1) to entities other than States or local units of 
     government that are for amounts in excess of $100,000 shall 
     only be awarded on a competitive basis.
       (b) Dislocated Worker Technical Assistance.--
       (1) Authority.--Of the amounts available pursuant to 
     section 132(a)(2)(A), the Secretary shall reserve not more 
     than 5 percent of such amounts to provide technical 
     assistance to States that do not meet the State performance 
     accountability measures for the primary indicators of 
     performance described in section 116(b)(2)(A)(i) with respect 
     to employment and training activities for dislocated workers. 
     Using such reserved funds, the Secretary may provide such 
     assistance to other States, local areas, and other entities 
     involved in providing assistance to dislocated workers, to 
     promote the continuous improvement of assistance provided to 
     dislocated workers, under this title.
       (2) Training.--Amounts reserved under this subsection may 
     be used to provide for the training of staff, including 
     specialists, who provide rapid response services. Such 
     training shall include instruction in proven methods of 
     promoting, establishing, and assisting labor-management 
     committees. Such projects shall be administered through the 
     Employment and Training Administration of the Department.
       (c) Promising and Proven Practices Coordination.--The 
     Secretary shall--
       (1) establish a system through which States may share 
     information regarding promising and proven practices with 
     regard to the operation of workforce investment activities 
     under this Act;
       (2) evaluate and disseminate information regarding such 
     promising and proven practices and identify knowledge gaps; 
     and
       (3) commission research under section 169(b) to address 
     knowledge gaps identified under paragraph (2).

     SEC. 169. EVALUATIONS AND RESEARCH.

       (a) Evaluations.--
       (1) Evaluations of programs and activities carried out 
     under this title.--
       (A) In general.--For the purpose of improving the 
     management and effectiveness of programs and activities 
     carried out under this title, the Secretary, through grants, 
     contracts, or cooperative agreements, shall provide for the 
     continuing evaluation of the programs and activities under 
     this title, including those programs and activities carried 
     out under this section.
       (B) Periodic independent evaluation.--The evaluations 
     carried out under this paragraph shall include an independent 
     evaluation, at least once every 4 years, of the programs and 
     activities carried out under this title.
       (2) Evaluation subjects.--Each evaluation carried out under 
     paragraph (1) shall address--
       (A) the general effectiveness of such programs and 
     activities in relation to their cost, including the extent to 
     which the programs and activities--
       (i) improve the employment competencies of participants in 
     comparison to comparably-situated individuals who did not 
     participate in such programs and activities; and
       (ii) to the extent feasible, increase the level of total 
     employment over the level that would have existed in the 
     absence of such programs and activities;
       (B) the effectiveness of the performance accountability 
     measures relating to such programs and activities;
       (C) the effectiveness of the structure and mechanisms for 
     delivery of services through such programs and activities, 
     including the

[[Page 10942]]

     coordination and integration of services through such 
     programs and activities;
       (D) the impact of such programs and activities on the 
     community, businesses, and participants involved;
       (E) the impact of such programs and activities on related 
     programs and activities;
       (F) the extent to which such programs and activities meet 
     the needs of various demographic groups; and
       (G) such other factors as may be appropriate.
       (3) Evaluations of other programs and activities.--The 
     Secretary may conduct evaluations of other federally funded 
     employment-related programs and activities under other 
     provisions of law.
       (4) Techniques.--Evaluations conducted under this 
     subsection shall utilize appropriate and rigorous methodology 
     and research designs, including the use of control groups 
     chosen by scientific random assignment methodologies. The 
     Secretary shall conduct at least 1 multisite control group 
     evaluation under this subsection by the end of fiscal year 
     2019, and thereafter shall ensure that such an analysis is 
     included in the independent evaluation described in paragraph 
     (1)(B) that is conducted at least once every 4 years.
       (5) Reports.--The entity carrying out an evaluation 
     described in paragraph (1) or (2) shall prepare and submit to 
     the Secretary a draft report and a final report containing 
     the results of the evaluation.
       (6) Reports to congress.--Not later than 30 days after the 
     completion of a draft report under paragraph (5), the 
     Secretary shall transmit the draft report 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. Not later than 60 days after the completion of a 
     final report under such paragraph, the Secretary shall 
     transmit the final report to such committees.
       (7) Publication of reports.--If an entity that enters into 
     a contract or other arrangement with the Secretary to conduct 
     an evaluation of a program or activity under this subsection 
     requests permission from the Secretary to publish a report 
     resulting from the evaluation, such entity may publish the 
     report unless the Secretary denies the request during the 90-
     day period beginning on the date the Secretary receives such 
     request.
       (8) Coordination.--The Secretary shall ensure the 
     coordination of evaluations carried out by States pursuant to 
     section 116(e) with the evaluations carried out under this 
     subsection.
       (b) Research, Studies, and Multistate Projects.--
       (1) In general.--After consultation with States, 
     localities, and other interested parties, the Secretary 
     shall, every 2 years, publish in the Federal Register, a plan 
     that describes the research, studies, and multistate project 
     priorities of the Department of Labor concerning employment 
     and training for the 5-year period following the submission 
     of the plan. The plan shall be consistent with the purposes 
     of this title, including the purpose of aligning and 
     coordinating core programs with other one-stop partner 
     programs. Copies of the plan shall be transmitted to the 
     Committee on Education and the Workforce of the House of 
     Representatives, the Committee on Health, Education, Labor, 
     and Pensions of the Senate, the Department of Education, and 
     other relevant Federal agencies.
       (2) Factors.--The plan published under paragraph (1) shall 
     contain strategies to address national employment and 
     training problems and take into account factors such as--
       (A) the availability of existing research (as of the date 
     of the publication);
       (B) the need to ensure results that have interstate 
     validity;
       (C) the benefits of economies of scale and the efficiency 
     of proposed projects; and
       (D) the likelihood that the results of the projects will be 
     useful to policymakers and stakeholders in addressing 
     employment and training problems.
       (3) Research projects.--The Secretary shall, through grants 
     or contracts, carry out research projects that will 
     contribute to the solution of employment and training 
     problems in the United States and that are consistent with 
     the priorities specified in the plan published under 
     paragraph (1).
       (4) Studies and reports.--
       (A) Net impact studies and reports.--The Secretary of 
     Labor, in coordination with the Secretary of Education and 
     other relevant Federal agencies, may conduct studies to 
     determine the net impact and best practices of programs, 
     services, and activities carried out under this Act.
       (B) Study on resources available to assist disconnected 
     youth.--The Secretary of Labor, in coordination with the 
     Secretary of Education, may conduct a study examining the 
     characteristics of eligible youth that result in such youth 
     being significantly disconnected from education and workforce 
     participation, the ways in which such youth could have 
     greater opportunities for education attainment and obtaining 
     employment, and the resources available to assist such youth 
     in obtaining the skills, credentials, and work experience 
     necessary to become economically self-sufficient.
       (C) Study of effectiveness of workforce development system 
     in meeting business needs.--Using funds available to carry 
     out this subsection jointly with funds available to the 
     Secretary of Commerce, the Administrator of the Small 
     Business Administration, and the Secretary of Education, the 
     Secretary of Labor, in coordination with the Secretary of 
     Commerce, the Administrator of the Small Business 
     Administration, and the Secretary of Education, may conduct a 
     study of the effectiveness of the workforce development 
     system in meeting the needs of business, such as through the 
     use of industry or sector partnerships, with particular 
     attention to the needs of small business, including in 
     assisting workers to obtain the skills needed to utilize 
     emerging technologies.
       (D) Study on participants entering nontraditional 
     occupations.--The Secretary of Labor, in coordination with 
     the Secretary of Education, may conduct a study examining the 
     number and percentage of individuals who receive employment 
     and training activities and who enter nontraditional 
     occupations, successful strategies to place and support the 
     retention of individuals in nontraditional employment (such 
     as by providing post-placement assistance to participants in 
     the form of exit interviews, mentoring, networking, and 
     leadership development), and the degree to which recipients 
     of employment and training activities are informed of the 
     possibility of, or directed to begin, training or education 
     needed for entrance into nontraditional occupations.
       (E) Study on performance indicators.--The Secretary of 
     Labor, in coordination with the Secretary of Education, may 
     conduct studies to determine the feasibility of, and 
     potential means to replicate, measuring the compensation, 
     including the wages, benefits, and other incentives provided 
     by an employer, received by program participants by using 
     data other than or in addition to data available through wage 
     records, for potential use as a performance indicator.
       (F) Study on job training for recipients of public housing 
     assistance.--The Secretary of Labor, in coordination with the 
     Secretary of Housing and Urban Development, may conduct 
     studies to assist public housing authorities to provide, to 
     recipients of public housing assistance, job training 
     programs that successfully upgrade job skills and employment 
     in, and access to, jobs with opportunity for advancement and 
     economic self-sufficiency for such recipients.
       (G) Study on improving employment prospects for older 
     individuals.--The Secretary of Labor, in coordination with 
     the Secretary of Education and the Secretary of Health and 
     Human Services, may conduct studies that lead to better 
     design and implementation of, in conjunction with employers, 
     local boards or State boards, community colleges or area 
     career and technical education schools, and other 
     organizations, effective evidence-based strategies to provide 
     services to workers who are low-income, low-skilled older 
     individuals that increase the workers' skills and employment 
     prospects.
       (H) Study on prior learning.--The Secretary of Labor, in 
     coordination with other heads of Federal agencies, as 
     appropriate, may conduct studies that, through convening 
     stakeholders from the fields of education, workforce, 
     business, labor, defense, and veterans services, and experts 
     in such fields, develop guidelines for assessing, accounting 
     for, and utilizing the prior learning of individuals, 
     including dislocated workers and veterans, in order to 
     provide the individuals with postsecondary educational credit 
     for such prior learning that leads to the attainment of a 
     recognized postsecondary credential identified under section 
     122(d) and employment.
       (I) Study on career pathways for health care providers and 
     providers of early education and child care.--The Secretary 
     of Labor, in coordination with the Secretary of Education and 
     the Secretary of Health and Human Services, shall conduct a 
     multistate study to develop, implement, and build upon career 
     advancement models and practices for low-wage health care 
     providers or providers of early education and child care, 
     including faculty education and distance education programs.
       (J) Study on equivalent pay.--The Secretary shall conduct a 
     multistate study to develop and disseminate strategies for 
     ensuring that programs and activities carried out under this 
     Act are placing individuals in jobs, education, and training 
     that lead to equivalent pay for men and women, including 
     strategies to increase the participation of women in high-
     wage, high-demand occupations in which women are 
     underrepresented.
       (K) Reports.--The Secretary shall prepare and disseminate 
     to the Committee on Health, Education, Labor, and Pensions of 
     the Senate and the Committee on Education and the Workforce 
     of the House of Representatives, and to the public, including 
     through electronic means, reports containing the results of 
     the studies conducted under this paragraph.
       (5) Multistate projects.--
       (A) Authority.--The Secretary may, through grants or 
     contracts, carry out multistate projects that require 
     demonstrated expertise that is available at the national 
     level to effectively disseminate best practices and models 
     for implementing employment and training services, address 
     the

[[Page 10943]]

     specialized employment and training needs of particular 
     service populations, or address industry-wide skill 
     shortages, to the extent such projects are consistent with 
     the priorities specified in the plan published under 
     paragraph (1).
       (B) Design of grants.--Agreements for grants or contracts 
     awarded under this paragraph shall be designed to obtain 
     information relating to the provision of services under 
     different economic conditions or to various demographic 
     groups in order to provide guidance at the national and State 
     levels about how best to administer specific employment and 
     training services.
       (6) Limitations.--
       (A) Competitive awards.--A grant or contract awarded for 
     carrying out a project under this subsection in an amount 
     that exceeds $100,000 shall be awarded only on a competitive 
     basis, except that a noncompetitive award may be made in the 
     case of a project that is funded jointly with other public or 
     private sector entities that provide a substantial portion of 
     assistance under the grant or contract for the project.
       (B) Time limits.--A grant or contract shall not be awarded 
     under this subsection to the same organization for more than 
     3 consecutive years unless such grant or contract is 
     competitively reevaluated within such period.
       (C) Peer review.--
       (i) In general.--The Secretary shall utilize a peer review 
     process--

       (I) to review and evaluate all applications for grants in 
     amounts that exceed $500,000 that are submitted under this 
     section; and
       (II) to review and designate exemplary and promising 
     programs under this section.

       (ii) Availability of funds.--The Secretary is authorized to 
     use funds provided under this section to carry out peer 
     review activities under this subparagraph.
       (D) Priority.--In awarding grants or contracts under this 
     subsection, priority shall be provided to entities with 
     recognized expertise in the methods, techniques, and 
     knowledge of workforce investment activities. The Secretary 
     shall establish appropriate time limits for the duration of 
     such projects.
       (c) Dislocated Worker Projects.--Of the amount made 
     available pursuant to section 132(a)(2)(A) for any program 
     year, the Secretary shall use not more than 10 percent of 
     such amount to carry out demonstration and pilot projects, 
     multiservice projects, and multistate projects relating to 
     the employment and training needs of dislocated workers. Of 
     the requirements of this section, such projects shall be 
     subject only to the provisions relating to review and 
     evaluation of applications under subsection (b)(6)(C). Such 
     projects may include demonstration and pilot projects 
     relating to promoting self-employment, promoting job 
     creation, averting dislocations, assisting dislocated 
     farmers, assisting dislocated fishermen, and promoting public 
     works. Such projects shall be administered by the Secretary, 
     acting through the Assistant Secretary for Employment and 
     Training.

     SEC. 170. NATIONAL DISLOCATED WORKER GRANTS.

       (a) Definitions.--In this section:
       (1) Emergency or disaster.--The term ``emergency or 
     disaster'' means--
       (A) an emergency or a major disaster, as 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 (1) and (2)); or
       (B) an emergency or disaster situation of national 
     significance that could result in a potentially large loss of 
     employment, as declared or otherwise recognized by the chief 
     official of a Federal agency with authority for or 
     jurisdiction over the Federal response to the emergency or 
     disaster situation.
       (2) Disaster area.--The term ``disaster area'' means an 
     area that has suffered or in which has occurred an emergency 
     or disaster.
       (b) In General.--
       (1) Grants.--The Secretary is authorized to award national 
     dislocated worker grants--
       (A) to an entity described in subsection (c)(1)(B) 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;
       (B) to provide assistance to--
       (i) the Governor of any State within the boundaries of 
     which is a disaster area, to provide disaster relief 
     employment in the disaster area; or
       (ii) the Governor of any State to which a substantial 
     number of workers from an area in which an emergency or 
     disaster has been declared or otherwise recognized have 
     relocated;
       (C) to provide additional assistance to a State board or 
     local board for eligible dislocated workers in a case in 
     which the State board or local board has expended the funds 
     provided under this section to carry out activities described 
     in subparagraphs (A) and (B) and can demonstrate the need for 
     additional funds to provide appropriate services for such 
     workers, in accordance with requirements prescribed by the 
     Secretary; and
       (D) to provide additional assistance to a State board or 
     local board serving an area where--
       (i) a higher-than-average demand for employment and 
     training activities for dislocated members of the Armed 
     Forces, spouses described in section 3(15)(E), or members of 
     the Armed Forces described in subsection (c)(2)(A)(iv), 
     exceeds State and local resources for providing such 
     activities; and
       (ii) such activities are to be carried out in partnership 
     with the Department of Defense and Department of Veterans 
     Affairs transition assistance programs.
       (2) Decisions and obligations.--The Secretary shall issue a 
     final decision on an application for a national dislocated 
     worker grant under this subsection not later than 45 calendar 
     days after receipt of the application. The Secretary shall 
     issue a notice of obligation for such grant not later than 10 
     days after the award of such grant.
       (c) Employment and Training Assistance Requirements.--
       (1) Grant recipient eligibility.--
       (A) Application.--To be eligible to receive a grant under 
     subsection (b)(1)(A), an entity shall submit an application 
     to the Secretary at such time, in such manner, and containing 
     such information as the Secretary may require.
       (B) Eligible entity.--In this paragraph, the term 
     ``entity'' means a State, a local board, an entity described 
     in section 166(c), an entity determined to be eligible by the 
     Governor of the State involved, and any other entity that 
     demonstrates to the Secretary the capability to effectively 
     respond to the circumstances relating to particular 
     dislocations.
       (2) Participant eligibility.--
       (A) In general.--In order to be eligible to receive 
     employment and training assistance under a national 
     dislocated worker grant awarded pursuant to subsection 
     (b)(1)(A), an individual shall be--
       (i) a dislocated worker;
       (ii) a civilian employee of the Department of Defense or 
     the Department of Energy employed at a military installation 
     that is being closed, or that will undergo realignment, 
     within the next 24 months after the date of the determination 
     of eligibility;
       (iii) an individual who is employed in a nonmanagerial 
     position with a Department of Defense contractor, who is 
     determined by the Secretary of Defense to be at risk of 
     termination from employment as a result of reductions in 
     defense expenditures, and whose employer is converting 
     operations from defense to nondefense applications in order 
     to prevent worker layoffs; or
       (iv) a member of the Armed Forces who--

       (I) was on active duty or full-time National Guard duty;
       (II)(aa) is involuntarily separated (as defined in section 
     1141 of title 10, United States Code) from active duty or 
     full-time National Guard duty; or
       (bb) is separated from active duty or full-time National 
     Guard duty pursuant to a special separation benefits program 
     under section 1174a of title 10, United States Code, or the 
     voluntary separation incentive program under section 1175 of 
     that title;
       (III) is not entitled to retired or retained pay incident 
     to the separation described in subclause (II); and
       (IV) applies for such employment and training assistance 
     before the end of the 180-day period beginning on the date of 
     that separation.

       (B) Retraining assistance.--The individuals described in 
     subparagraph (A)(iii) shall be eligible for retraining 
     assistance to upgrade skills by obtaining marketable skills 
     needed to support the conversion described in subparagraph 
     (A)(iii).
       (C) Additional requirements.--The Secretary shall establish 
     and publish additional requirements related to eligibility 
     for employment and training assistance under the national 
     dislocated worker grants to ensure effective use of the funds 
     available for this purpose.
       (D) Definitions.--In this paragraph, the terms ``military 
     installation'' and ``realignment'' have the meanings given 
     the terms in section 2910 of the Defense Base Closure and 
     Realignment Act of 1990 (Public Law 101-510; 10 U.S.C. 2687 
     note).
       (d) Disaster Relief Employment Assistance Requirements.--
       (1) In general.--Funds made available under subsection 
     (b)(1)(B)--
       (A) shall be used, in coordination with the Administrator 
     of the Federal Emergency Management Agency, as applicable, to 
     provide disaster relief employment on projects that provide 
     food, clothing, shelter, and other humanitarian assistance 
     for emergency and disaster victims, and projects regarding 
     demolition, cleaning, repair, renovation, and reconstruction 
     of damaged and destroyed structures, facilities, and lands 
     located within the disaster area and in offshore areas 
     related to the emergency or disaster;
       (B) may be expended through public and private agencies and 
     organizations engaged in such projects; and
       (C) may be expended to provide employment and training 
     activities.
       (2) Eligibility.--An individual shall be eligible to be 
     offered disaster relief employment under subsection (b)(1)(B) 
     if such individual--
       (A) is a dislocated worker;
       (B) is a long-term unemployed individual;

[[Page 10944]]

       (C) is temporarily or permanently laid off as a consequence 
     of the emergency or disaster; or
       (D) in the case of an individual who is self-employed, 
     becomes unemployed or significantly underemployed as a result 
     of the emergency or disaster.
       (3) Limitations on disaster relief employment.--
       (A) In general.--Except as provided in subparagraph (B), no 
     individual shall be employed under subsection (b)(1)(B) for 
     more than 12 months for work related to recovery from a 
     single emergency or disaster.
       (B) Extension.--At the request of a State, the Secretary 
     may extend such employment, related to recovery from a single 
     emergency or disaster involving the State, for not more than 
     an additional 12 months.
       (4) Use of available funds.--Funds made available under 
     subsection (b)(1)(B) shall be available to assist workers 
     described in paragraph (2) who are affected by an emergency 
     or disaster, including workers who have relocated from an 
     area in which an emergency or disaster has been declared or 
     otherwise recognized, as appropriate. Under conditions 
     determined by the Secretary and following notification to the 
     Secretary, a State may use such funds, that are appropriated 
     for any fiscal year and available for expenditure under any 
     grant awarded to the State under this section, to provide any 
     assistance authorized under this subsection. Funds used 
     pursuant to the authority provided under this paragraph shall 
     be subject to the liability and reimbursement requirements 
     described in paragraph (5).
       (5) Liability and reimbursement.--Nothing in this Act shall 
     be construed to relieve liability, by a responsible party 
     that is liable under Federal law, for any costs incurred by 
     the United States under subsection (b)(1)(B) or this 
     subsection, including the responsibility to provide 
     reimbursement for such costs to the United States.

     SEC. 171. YOUTHBUILD PROGRAM.

       (a) Statement of Purpose.--The purposes of this section 
     are--
       (1) to enable disadvantaged youth to obtain the education 
     and employment skills necessary to achieve economic self-
     sufficiency in occupations in demand and postsecondary 
     education and training opportunities;
       (2) to provide disadvantaged youth with opportunities for 
     meaningful work and service to their communities;
       (3) to foster the development of employment and leadership 
     skills and commitment to community development among youth in 
     low-income communities;
       (4) to expand the supply of permanent affordable housing 
     for homeless individuals and low-income families by utilizing 
     the energies and talents of disadvantaged youth; and
       (5) to improve the quality and energy efficiency of 
     community and other nonprofit and public facilities, 
     including those facilities that are used to serve homeless 
     and low-income families.
       (b) Definitions.--In this section:
       (1) Adjusted income.--The term ``adjusted income'' has the 
     meaning given the term in section 3(b) of the United States 
     Housing Act of 1937 (42 U.S.C. 1437a(b)).
       (2) Applicant.--The term ``applicant'' means an eligible 
     entity that has submitted an application under subsection 
     (c).
       (3) Eligible entity.--The term ``eligible entity'' means a 
     public or private nonprofit agency or organization (including 
     a consortium of such agencies or organizations), including--
       (A) a community-based organization;
       (B) a faith-based organization;
       (C) an entity carrying out activities under this title, 
     such as a local board;
       (D) a community action agency;
       (E) a State or local housing development agency;
       (F) an Indian tribe or other agency primarily serving 
     Indians;
       (G) a community development corporation;
       (H) a State or local youth service or conservation corps; 
     and
       (I) any other entity eligible to provide education or 
     employment training under a Federal program (other than the 
     program carried out under this section).
       (4) Homeless individual.--The term ``homeless individual'' 
     means a homeless individual (as defined in section 41403(6) 
     of the Violence Against Women Act of 1994 (42 U.S.C. 14043e-
     2(6))) or a homeless child or youth (as defined in section 
     725(2) of the McKinney-Vento Homeless Assistance Act (42 
     U.S.C. 11434a(2))).
       (5) Housing development agency.--The term ``housing 
     development agency'' means any agency of a State or local 
     government, or any private nonprofit organization, that is 
     engaged in providing housing for homeless individuals or low-
     income families.
       (6) Income.--The term ``income'' has the meaning given the 
     term in section 3(b) of the United States Housing Act of 1937 
     (42 U.S.C. 1437a(b)).
       (7) Indian; indian tribe.--The terms ``Indian'' and 
     ``Indian tribe'' have the meanings given such terms in 
     section 4 of the Indian Self-Determination and Education 
     Assistance Act (25 U.S.C. 450b).
       (8) Low-income family.--The term ``low-income family'' 
     means a family described in section 3(b)(2) of the United 
     States Housing Act of 1937 (42 U.S.C. 1437a(b)(2)).
       (9) Qualified national nonprofit agency.--The term 
     ``qualified national nonprofit agency'' means a nonprofit 
     agency that--
       (A) has significant national experience providing services 
     consisting of training, information, technical assistance, 
     and data management to YouthBuild programs or similar 
     projects; and
       (B) has the capacity to provide those services.
       (10) Registered apprenticeship program.--The term 
     ``registered apprenticeship program'' means an apprenticeship 
     program--
       (A) registered 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.); and
       (B) that meets such other criteria as may be established by 
     the Secretary under this section.
       (11) Transitional housing.--The term ``transitional 
     housing'' has the meaning given the term in section 401(29) 
     of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
     11360(29)).
       (12) Youthbuild program.--The term ``YouthBuild program'' 
     means any program that receives assistance under this section 
     and provides disadvantaged youth with opportunities for 
     employment, education, leadership development, and training 
     through the rehabilitation (which, for purposes of this 
     section, shall include energy efficiency enhancements) or 
     construction of housing for homeless individuals and low-
     income families, and of public facilities.
       (c) YouthBuild Grants.--
       (1) Amounts of grants.--The Secretary is authorized to make 
     grants to applicants for the purpose of carrying out 
     YouthBuild programs approved under this section.
       (2) Eligible activities.--An entity that receives a grant 
     under this subsection shall use the funds made available 
     through the grant to carry out a YouthBuild program, which 
     may include the following activities:
       (A) Education and workforce investment activities 
     including--
       (i) work experience and skills training (coordinated, to 
     the maximum extent feasible, with preapprenticeship and 
     registered apprenticeship programs) in the activities 
     described in subparagraphs (B) and (C) related to 
     rehabilitation or construction, and, if approved by the 
     Secretary, in additional in-demand industry sectors or 
     occupations in the region in which the program operates;
       (ii) occupational skills training;
       (iii) other paid and unpaid work experiences, including 
     internships and job shadowing;
       (iv) services and activities designed to meet the 
     educational needs of participants, including--

       (I) basic skills instruction and remedial education;
       (II) language instruction educational programs for 
     participants who are English language learners;
       (III) secondary education services and activities, 
     including tutoring, study skills training, and school dropout 
     prevention and recovery activities, designed to lead to the 
     attainment of a secondary school diploma or its recognized 
     equivalent (including recognized certificates of attendance 
     or similar documents for individuals with disabilities);
       (IV) counseling and assistance in obtaining postsecondary 
     education and required financial aid; and
       (V) alternative secondary school services;

       (v) counseling services and related activities, such as 
     comprehensive guidance and counseling on drug and alcohol 
     abuse and referral;
       (vi) activities designed to develop employment and 
     leadership skills, which may include community service and 
     peer-centered activities encouraging responsibility and other 
     positive social behaviors, and activities related to youth 
     policy committees that participate in decision-making related 
     to the program;
       (vii) supportive services and provision of need-based 
     stipends necessary to enable individuals to participate in 
     the program and to assist individuals, for a period not to 
     exceed 12 months after the completion of training, in 
     obtaining or retaining employment, or applying for and 
     transitioning to postsecondary education or training; and
       (viii) job search and assistance.
       (B) Supervision and training for participants in the 
     rehabilitation or construction of housing, including 
     residential housing for homeless individuals or low-income 
     families, or transitional housing for homeless individuals, 
     and, if approved by the Secretary, in additional in-demand 
     industry sectors or occupations in the region in which the 
     program operates.
       (C) Supervision and training for participants--
       (i) in the rehabilitation or construction of community and 
     other public facilities, except that not more than 15 percent 
     of funds appropriated to carry out this section may be used 
     for such supervision and training; and
       (ii) if approved by the Secretary, in additional in-demand 
     industry sectors or occupations in the region in which the 
     program operates.
       (D) Payment of administrative costs of the applicant, 
     including recruitment and selection of participants, except 
     that not more

[[Page 10945]]

     than 10 percent of the amount of assistance provided under 
     this subsection to the grant recipient may be used for such 
     costs.
       (E) Adult mentoring.
       (F) Provision of wages, stipends, or benefits to 
     participants in the program.
       (G) Ongoing training and technical assistance that are 
     related to developing and carrying out the program.
       (H) Follow-up services.
       (3) Application.--
       (A) Form and procedure.--To be qualified to receive a grant 
     under this subsection, an eligible entity shall submit an 
     application at such time, in such manner, and containing such 
     information as the Secretary may require.
       (B) Minimum requirements.--The Secretary shall require that 
     the application contain, at a minimum--
       (i) labor market information for the labor market area 
     where the proposed program will be implemented, including 
     both current data (as of the date of submission of the 
     application) and projections on career opportunities in 
     construction and in-demand industry sectors or occupations;
       (ii) a request for the grant, specifying the amount of the 
     grant requested and its proposed uses;
       (iii) a description of the applicant and a statement of its 
     qualifications, including a description of the applicant's 
     relationship with local boards, one-stop operators, local 
     unions, entities carrying out registered apprenticeship 
     programs, other community groups, and employers, and the 
     applicant's past experience, if any, with rehabilitation or 
     construction of housing or public facilities, and with youth 
     education and employment training programs;
       (iv) a description of the proposed site for the proposed 
     program;
       (v) a description of the educational and job training 
     activities, work opportunities, postsecondary education and 
     training opportunities, and other services that will be 
     provided to participants, and how those activities, 
     opportunities, and services will prepare youth for employment 
     in in-demand industry sectors or occupations in the labor 
     market area described in clause (i);
       (vi)(I) a description of the proposed activities to be 
     undertaken under the grant related to rehabilitation or 
     construction, and, in the case of an applicant requesting 
     approval from the Secretary to also carry out additional 
     activities related to in-demand industry sectors or 
     occupations, a description of such additional proposed 
     activities; and
       (II) the anticipated schedule for carrying out all 
     activities proposed under subclause (I);
       (vii) a description of the manner in which eligible youth 
     will be recruited and selected as participants, including a 
     description of arrangements that will be made with local 
     boards, one-stop operators, faith- and community-based 
     organizations, State educational agencies or local 
     educational agencies (including agencies of Indian tribes), 
     public assistance agencies, the courts of jurisdiction, 
     agencies operating shelters for homeless individuals and 
     other agencies that serve youth who are homeless individuals, 
     foster care agencies, and other appropriate public and 
     private agencies;
       (viii) a description of the special outreach efforts that 
     will be undertaken to recruit eligible young women (including 
     young women with dependent children) as participants;
       (ix) a description of the specific role of employers in the 
     proposed program, such as their role in developing the 
     proposed program and assisting in service provision and in 
     placement activities;
       (x) a description of how the proposed program will be 
     coordinated with other Federal, State, and local activities 
     and activities conducted by Indian tribes, such as local 
     workforce investment activities, career and technical 
     education and training programs, adult and language 
     instruction educational programs, activities conducted by 
     public schools, activities conducted by community colleges, 
     national service programs, and other job training provided 
     with funds available under this title;
       (xi) assurances that there will be a sufficient number of 
     adequately trained supervisory personnel in the proposed 
     program;
       (xii) a description of the levels of performance to be 
     achieved with respect to the primary indicators of 
     performance for eligible youth described in section 
     116(b)(2)(A)(ii);
       (xiii) a description of the applicant's relationship with 
     local building trade unions regarding their involvement in 
     training to be provided through the proposed program, the 
     relationship of the proposed program to established 
     registered apprenticeship programs and employers, the ability 
     of the applicant to grant an industry-recognized certificate 
     or certification through the program, and the quality of the 
     program leading to the certificate or certification;
       (xiv) a description of activities that will be undertaken 
     to develop the leadership skills of participants;
       (xv) 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 proposed 
     program;
       (xvi) a description of the commitments for any additional 
     resources (in addition to the funds made available through 
     the grant) to be made available to the proposed program 
     from--

       (I) the applicant;
       (II) recipients of other Federal, State, or local housing 
     and community development assistance that will sponsor any 
     part of the rehabilitation or construction, operation and 
     maintenance, or other housing and community development 
     activities undertaken as part of the proposed program; or
       (III) entities carrying out other Federal, State, or local 
     activities or activities conducted by Indian tribes, 
     including career and technical education and training 
     programs, adult and language instruction educational 
     programs, and job training provided with funds available 
     under this title;

       (xvii) information identifying, and a description of, the 
     financing proposed for any--

       (I) rehabilitation of the property involved;
       (II) acquisition of the property; or
       (III) construction of the property;

       (xviii) information identifying, and a description of, the 
     entity that will operate and manage the property;
       (xix) information identifying, and a description of, the 
     data collection systems to be used;
       (xx) a certification, by a public official responsible for 
     the housing strategy for the State or unit of general local 
     government within which the proposed program is located, that 
     the proposed program is consistent with the housing strategy; 
     and
       (xxi) a certification that the applicant will comply with 
     the requirements of the Fair Housing Act (42 U.S.C. 3601 et 
     seq.) and will affirmatively further fair housing.
       (4) Selection criteria.--For an applicant to be eligible to 
     receive a grant under this subsection, the applicant and the 
     applicant's proposed program shall meet such selection 
     criteria as the Secretary shall establish under this section, 
     which shall include criteria relating to--
       (A) the qualifications or potential capabilities of an 
     applicant;
       (B) an applicant's potential for developing a successful 
     YouthBuild program;
       (C) the need for an applicant's proposed program, as 
     determined by the degree of economic distress of the 
     community from which participants would be recruited 
     (measured by indicators such as poverty, youth unemployment, 
     and the number of individuals who have dropped out of 
     secondary school) and of the community in which the housing 
     and community and public facilities proposed to be 
     rehabilitated or constructed is located (measured by 
     indicators such as incidence of homelessness, shortage of 
     affordable housing, and poverty);
       (D) the commitment of an applicant to providing skills 
     training, leadership development, and education to 
     participants;
       (E) the focus of a proposed program on preparing youth for 
     in-demand industry sectors or occupations, or postsecondary 
     education and training opportunities;
       (F) the extent of an applicant's coordination of activities 
     to be carried out through the proposed program with local 
     boards, one-stop operators, and one-stop partners 
     participating in the operation of the one-stop delivery 
     system involved, or the extent of the applicant's good faith 
     efforts in achieving such coordination;
       (G) the extent of the applicant's coordination of 
     activities with public education, criminal justice, housing 
     and community development, national service, or postsecondary 
     education or other systems that relate to the goals of the 
     proposed program;
       (H) the extent of an applicant's coordination of activities 
     with employers in the local area involved;
       (I) the extent to which a proposed program provides for 
     inclusion of tenants who were previously homeless individuals 
     in the rental housing provided through the program;
       (J) the commitment of additional resources (in addition to 
     the funds made available through the grant) to a proposed 
     program by--
       (i) an applicant;
       (ii) recipients of other Federal, State, or local housing 
     and community development assistance who will sponsor any 
     part of the rehabilitation or construction, operation and 
     maintenance, or other housing and community development 
     activities undertaken as part of the proposed program; or
       (iii) entities carrying out other Federal, State, or local 
     activities or activities conducted by Indian tribes, 
     including career and technical education and training 
     programs, adult and language instruction educational 
     programs, and job training provided with funds available 
     under this title;
       (K) the applicant's potential to serve different regions, 
     including rural areas and States that have not previously 
     received grants for YouthBuild programs; and
       (L) such other factors as the Secretary determines to be 
     appropriate for purposes of carrying out the proposed program 
     in an effective and efficient manner.
       (5) Approval.--To the extent practicable, the Secretary 
     shall notify each applicant, not later than 5 months after 
     the date of receipt of the application by the Secretary, 
     whether the application is approved or not approved.
       (d) Use of Housing Units.--Residential housing units 
     rehabilitated or constructed

[[Page 10946]]

     using funds made available under subsection (c), shall be 
     available solely--
       (1) for rental by, or sale to, homeless individuals or low-
     income families; or
       (2) for use as transitional or permanent housing, for the 
     purpose of assisting in the movement of homeless individuals 
     to independent living.
       (e) Additional Program Requirements.--
       (1) Eligible participants.--
       (A) In general.--Except as provided in subparagraph (B), an 
     individual may participate in a YouthBuild program only if 
     such individual is--
       (i) not less than age 16 and not more than age 24, on the 
     date of enrollment;
       (ii) a member of a low-income family, a youth in foster 
     care (including youth aging out of foster care), a youth 
     offender, a youth who is an individual with a disability, a 
     child of incarcerated parents, or a migrant youth; and
       (iii) a school dropout, or an individual who was a school 
     dropout and has subsequently reenrolled.
       (B) Exception for individuals not meeting income or 
     educational need requirements.--Not more than 25 percent of 
     the participants in such program may be individuals who do 
     not meet the requirements of clause (ii) or (iii) of 
     subparagraph (A), but who--
       (i) are basic skills deficient, despite attainment of a 
     secondary school diploma or its recognized equivalent 
     (including recognized certificates of attendance or similar 
     documents for individuals with disabilities); or
       (ii) have been referred by a local secondary school for 
     participation in a YouthBuild program leading to the 
     attainment of a secondary school diploma.
       (2) Participation limitation.--An eligible individual 
     selected for participation in a YouthBuild program shall be 
     offered full-time participation in the program for a period 
     of not less than 6 months and not more than 24 months.
       (3) Minimum time devoted to educational services and 
     activities.--A YouthBuild program receiving assistance under 
     subsection (c) shall be structured so that participants in 
     the program are offered--
       (A) education and related services and activities designed 
     to meet educational needs, such as those specified in clauses 
     (iv) through (vii) of subsection (c)(2)(A), during at least 
     50 percent of the time during which the participants 
     participate in the program; and
       (B) work and skill development activities, such as those 
     specified in clauses (i), (ii), (iii), and (viii) of 
     subsection (c)(2)(A), during at least 40 percent of the time 
     during which the participants participate in the program.
       (4) Authority restriction.--No provision of this section 
     may be construed to authorize any agency, officer, or 
     employee of the United States to exercise any direction, 
     supervision, or control over the curriculum, program of 
     instruction, administration, or personnel of any educational 
     institution (including a school) or school system, or over 
     the selection of library resources, textbooks, or other 
     printed or published instructional materials by any 
     educational institution or school system.
       (5) State and local standards.--All educational programs 
     and activities supported with funds provided under subsection 
     (c) shall be consistent with applicable State and local 
     educational standards. Standards and procedures for the 
     programs and activities that relate to awarding academic 
     credit for and certifying educational attainment in such 
     programs and activities shall be consistent with applicable 
     State and local educational standards.
       (f) Levels of Performance and Indicators.--
       (1) In general.--The Secretary shall annually establish 
     expected levels of performance for YouthBuild programs 
     relating to each of the primary indicators of performance for 
     eligible youth activities described in section 
     116(b)(2)(A)(ii).
       (2) Additional indicators.--The Secretary may establish 
     expected levels of performance for additional indicators for 
     YouthBuild programs, as the Secretary determines appropriate.
       (g) Management and Technical Assistance.--
       (1) Secretary assistance.--The Secretary may enter into 
     contracts with 1 or more entities to provide assistance to 
     the Secretary in the management, supervision, and 
     coordination of the program carried out under this section.
       (2) Technical assistance.--
       (A) Contracts and grants.--The Secretary shall enter into 
     contracts with or make grants to 1 or more qualified national 
     nonprofit agencies, in order to provide training, 
     information, technical assistance, program evaluation, and 
     data management to recipients of grants under subsection (c).
       (B) Reservation of funds.--Of the amounts available under 
     subsection (i) to carry out this section for a fiscal year, 
     the Secretary shall reserve 5 percent to carry out 
     subparagraph (A).
       (3) Capacity building grants.--
       (A) In general.--In each fiscal year, the Secretary may use 
     not more than 3 percent of the amounts available under 
     subsection (i) to award grants to 1 or more qualified 
     national nonprofit agencies to pay for the Federal share of 
     the cost of capacity building activities.
       (B) Federal share.--The Federal share of the cost described 
     in subparagraph (A) shall be 25 percent. The non-Federal 
     share shall be provided from private sources.
       (h) Subgrants and Contracts.--Each recipient of a grant 
     under subsection (c) to carry out a YouthBuild program shall 
     provide the services and activities described in this section 
     directly or through subgrants, contracts, or other 
     arrangements with local educational agencies, institutions of 
     higher education, State or local housing development 
     agencies, other public agencies, including agencies of Indian 
     tribes, or private organizations.
       (i) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section--
       (1) $77,534,000 for fiscal year 2015;
       (2) $83,523,000 for fiscal year 2016;
       (3) $85,256,000 for fiscal year 2017;
       (4) $87,147,000 for fiscal year 2018;
       (5) $89,196,000 for fiscal year 2019; and
       (6) $91,087,000 for fiscal year 2020.

     SEC. 172. AUTHORIZATION OF APPROPRIATIONS.

       (a) Native American Programs.--There are authorized to be 
     appropriated to carry out section 166 (not including 
     subsection (k) of such section)--
       (1) $46,082,000 for fiscal year 2015;
       (2) $49,641,000 for fiscal year 2016;
       (3) $50,671,000 for fiscal year 2017;
       (4) $51,795,000 for fiscal year 2018;
       (5) $53,013,000 for fiscal year 2019; and
       (6) $54,137,000 for fiscal year 2020.
       (b) Migrant and Seasonal Farmworker Programs.--There are 
     authorized to be appropriated to carry out section 167--
       (1) $81,896,000 for fiscal year 2015;
       (2) $88,222,000 for fiscal year 2016;
       (3) $90,052,000 for fiscal year 2017;
       (4) $92,050,000 for fiscal year 2018;
       (5) $94,214,000 for fiscal year 2019; and
       (6) $96,211,000 for fiscal year 2020.
       (c) Technical Assistance.--There are authorized to be 
     appropriated to carry out section 168--
       (1) $3,000,000 for fiscal year 2015;
       (2) $3,232,000 for fiscal year 2016;
       (3) $3,299,000 for fiscal year 2017;
       (4) $3,372,000 for fiscal year 2018;
       (5) $3,451,000 for fiscal year 2019; and
       (6) $3,524,000 for fiscal year 2020.
       (d) Evaluations and Research.--There are authorized to be 
     appropriated to carry out section 169--
       (1) $91,000,000 for fiscal year 2015;
       (2) $98,029,000 for fiscal year 2016;
       (3) $100,063,000 for fiscal year 2017;
       (4) $102,282,000 for fiscal year 2018;
       (5) $104,687,000 for fiscal year 2019; and
       (6) $106,906,000 for fiscal year 2020.
       (e) Assistance for Veterans.--If, as of the date of 
     enactment of this Act, any unobligated funds appropriated to 
     carry out section 168 of the Workforce Investment Act of 
     1998, as in effect on the day before the date of enactment of 
     this Act, remain available, the Secretary of Labor shall 
     continue to use such funds to carry out such section, as in 
     effect on such day, until all of such funds are expended.
       (f) Assistance for Eligible Workers.--If, as of the date of 
     enactment of this Act, any unobligated funds appropriated to 
     carry out subsections (f) and (g) of section 173 of the 
     Workforce Investment Act of 1998, as in effect on the day 
     before the date of enactment of this Act, remain available, 
     the Secretary of Labor shall continue to use such funds to 
     carry out such subsections, as in effect on such day, until 
     all of such funds are expended.

                       Subtitle E--Administration

     SEC. 181. REQUIREMENTS AND RESTRICTIONS.

       (a) Benefits.--
       (1) Wages.--
       (A) In general.--Individuals in on-the-job training or 
     individuals employed in activities under this title shall be 
     compensated at the same rates, including periodic increases, 
     as trainees or employees who are similarly situated in 
     similar occupations by the same employer and who have similar 
     training, experience, and skills, and such rates shall be in 
     accordance with applicable law, but in no event less than the 
     higher of the rate specified in section 6(a)(1) of the Fair 
     Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) or the 
     applicable State or local minimum wage law.
       (B) Rule of construction.--The reference in subparagraph 
     (A) to section 6(a)(1) of the Fair Labor Standards Act of 
     1938 (29 U.S.C. 206(a)(1)) shall not be applicable for 
     individuals in territorial jurisdictions in which section 
     6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 
     206(a)(1)) does not apply.
       (2) Treatment of allowances, earnings, and payments.--
     Allowances, earnings, and payments to individuals 
     participating in programs under this title shall not be 
     considered as income for the purposes of determining 
     eligibility for and the amount of income transfer and in-kind 
     aid furnished under any Federal or federally assisted program 
     based on need, other than as provided under the Social 
     Security Act (42 U.S.C. 301 et seq.).
       (b) Labor Standards.--
       (1) Limitations on activities that impact wages of 
     employees.--No funds provided under this title shall be used 
     to pay the wages of incumbent employees during their

[[Page 10947]]

     participation in economic development activities provided 
     through a statewide workforce development system.
       (2) Displacement.--
       (A) Prohibition.--A participant in a program or activity 
     authorized under this title (referred to in this section as a 
     ``specified activity'') shall not displace (including a 
     partial displacement, such as a reduction in the hours of 
     nonovertime work, wages, or employment benefits) any 
     currently employed employee (as of the date of the 
     participation).
       (B) Prohibition on impairment of contracts.--A specified 
     activity shall not impair an existing contract for services 
     or collective bargaining agreement, and no such activity that 
     would be inconsistent with the terms of a collective 
     bargaining agreement shall be undertaken without the written 
     concurrence of the labor organization and employer concerned.
       (3) Other prohibitions.--A participant in a specified 
     activity shall not be employed in a job if--
       (A) any other individual is on layoff from the same or any 
     substantially equivalent job;
       (B) the employer has terminated the employment of any 
     regular employee or otherwise reduced the workforce of the 
     employer with the intention of filling the vacancy so created 
     with the participant; or
       (C) the job is created in a promotional line that will 
     infringe in any way upon the promotional opportunities of 
     currently employed individuals (as of the date of the 
     participation).
       (4) Health and safety.--Health and safety standards 
     established under Federal and State law otherwise applicable 
     to working conditions of employees shall be equally 
     applicable to working conditions of participants engaged in 
     specified activities. To the extent that a State workers' 
     compensation law applies, workers' compensation shall be 
     provided to participants on the same basis as the 
     compensation is provided to other individuals in the State in 
     similar employment.
       (5) Employment conditions.--Individuals in on-the-job 
     training or individuals employed in programs and activities 
     under this title shall be provided benefits and working 
     conditions at the same level and to the same extent as other 
     trainees or employees working a similar length of time and 
     doing the same type of work.
       (6) Opportunity to submit comments.--Interested members of 
     the public, including representatives of businesses and of 
     labor organizations, shall be provided an opportunity to 
     submit comments to the Secretary with respect to programs and 
     activities proposed to be funded under subtitle B.
       (7) No impact on union organizing.--Each recipient of funds 
     under this title shall provide to the Secretary assurances 
     that none of such funds will be used to assist, promote, or 
     deter union organizing.
       (c) Grievance Procedure.--
       (1) In general.--Each State and local area receiving an 
     allotment or allocation under this title shall establish and 
     maintain a procedure for grievances or complaints alleging 
     violations of the requirements of this title from 
     participants and other interested or affected parties. Such 
     procedure shall include an opportunity for a hearing and be 
     completed within 60 days after the filing of the grievance or 
     complaint.
       (2) Investigation.--
       (A) In general.--The Secretary shall investigate an 
     allegation of a violation described in paragraph (1) if--
       (i) a decision relating to such violation has not been 
     reached within 60 days after the date of the filing of the 
     grievance or complaint and either party appeals to the 
     Secretary; or
       (ii) a decision relating to such violation has been reached 
     within such 60 days and the party to which such decision is 
     adverse appeals such decision to the Secretary.
       (B) Additional requirement.--The Secretary shall make a 
     final determination relating to an appeal made under 
     subparagraph (A) no later than 120 days after receiving such 
     appeal.
       (3) Remedies.--Remedies that may be imposed under this 
     section for a violation of any requirement of this title 
     shall be limited--
       (A) to suspension or termination of payments under this 
     title;
       (B) to prohibition of placement of a participant with an 
     employer that has violated any requirement under this title;
       (C) where applicable, to reinstatement of an employee, 
     payment of lost wages and benefits, and reestablishment of 
     other relevant terms, conditions, and privileges of 
     employment; and
       (D) where appropriate, to other equitable relief.
       (4) Rule of construction.--Nothing in paragraph (3) shall 
     be construed to prohibit a grievant or complainant from 
     pursuing a remedy authorized under another Federal, State, or 
     local law for a violation of this title.
       (d) Relocation.--
       (1) Prohibition on use of funds to encourage or induce 
     relocation.--No funds provided under this title shall be 
     used, or proposed for use, to encourage or induce the 
     relocation of a business or part of a business if such 
     relocation would result in a loss of employment for any 
     employee of such business at the original location and such 
     original location is within the United States.
       (2) Prohibition on use of funds after relocation.--No funds 
     provided under this title for an employment or training 
     activity shall be used for customized or skill training, on-
     the-job training, incumbent worker training, transitional 
     employment, or company-specific assessments of job applicants 
     or employees, for any business or part of a business that has 
     relocated, until the date that is 120 days after the date on 
     which such business commences operations at the new location, 
     if the relocation of such business or part of a business 
     results in a loss of employment for any employee of such 
     business at the original location and such original location 
     is within the United States.
       (3) Repayment.--If the Secretary determines that a 
     violation of paragraph (1) or (2) has occurred, the Secretary 
     shall require the State that has violated such paragraph (or 
     that has provided funding to an entity that has violated such 
     paragraph) to repay to the United States an amount equal to 
     the amount expended in violation of such paragraph.
       (e) Limitation on Use of Funds.--No funds available to 
     carry out an activity under this title shall be used for 
     employment generating activities, investment in revolving 
     loan funds, capitalization of businesses, investment in 
     contract bidding resource centers, economic development 
     activities, or similar activities, that are not directly 
     related to training for eligible individuals under this 
     title. No funds received to carry out an activity under 
     subtitle B shall be used for foreign travel.
       (f) Testing and Sanctioning for Use of Controlled 
     Substances.--
       (1) In general.--Notwithstanding any other provision of 
     law, a State shall not be prohibited by the Federal 
     Government from--
       (A) testing participants in programs under subtitle B for 
     the use of controlled substances; and
       (B) sanctioning such participants who test positive for the 
     use of such controlled substances.
       (2) Additional requirements.--
       (A) Period of sanction.--In sanctioning participants in a 
     program under subtitle B who test positive for the use of 
     controlled substances--
       (i) with respect to the first occurrence for which a 
     participant tests positive, a State may exclude the 
     participant from the program for a period not to exceed 6 
     months; and
       (ii) with respect to the second occurrence and each 
     subsequent occurrence for which a participant tests positive, 
     a State may exclude the participant from the program for a 
     period not to exceed 2 years.
       (B) Appeal.--The testing of participants and the imposition 
     of sanctions under this subsection shall be subject to 
     expeditious appeal in accordance with due process procedures 
     established by the State.
       (C) Privacy.--A State shall establish procedures for 
     testing participants for the use of controlled substances 
     that ensure a maximum degree of privacy for the participants.
       (3) Funding requirement.--In testing and sanctioning of 
     participants for the use of controlled substances in 
     accordance with this subsection, the only Federal funds that 
     a State may use are the amounts made available for the 
     administration of statewide workforce investment activities 
     under section 134(a)(3)(B).
       (g) Subgrant Authority.--A recipient of grant funds under 
     this title shall have the authority to enter into subgrants 
     in order to carry out the grant, subject to such conditions 
     as the Secretary may establish.

     SEC. 182. PROMPT ALLOCATION OF FUNDS.

       (a) Allotments Based on Latest Available Data.--All 
     allotments to States and grants to outlying areas under this 
     title shall be based on the latest available data and 
     estimates satisfactory to the Secretary. All data relating to 
     disadvantaged adults and disadvantaged youth shall be based 
     on the most recent satisfactory data from the Bureau of the 
     Census.
       (b) Publication in Federal Register Relating to Formula 
     Funds.--Whenever the Secretary allots funds required to be 
     allotted under this title, the Secretary shall publish in a 
     timely fashion in the Federal Register the amount proposed to 
     be distributed to each recipient of the funds.
       (c) Requirement for Funds Distributed by Formula.--All 
     funds required to be allotted under section 127 or 132 shall 
     be allotted within 45 days after the date of enactment of the 
     Act appropriating the funds, except that, if such funds are 
     appropriated in advance as authorized by section 189(g), such 
     funds shall be allotted or allocated not later than the March 
     31 preceding the program year for which such funds are to be 
     available for obligation.
       (d) Publication in Federal Register Relating to 
     Discretionary Funds.--Whenever the Secretary utilizes a 
     formula to allot or allocate funds made available for 
     distribution at the Secretary's discretion under this title, 
     the Secretary shall, not later than 30 days prior to such 
     allotment or allocation, publish for comment in the Federal 
     Register the formula, the rationale for the formula,

[[Page 10948]]

     and the proposed amounts to be distributed to each State and 
     local area. After consideration of any comments received, the 
     Secretary shall publish final allotments and allocations in 
     the Federal Register.
       (e) Availability of Funds.--Funds shall be made available 
     under section 128, and funds shall be made available under 
     section 133, for a local area not later than 30 days after 
     the date the funds are made available to the Governor 
     involved, under section 127 or 132 (as the case may be), or 7 
     days after the date the local plan for the area is approved, 
     whichever is later.

     SEC. 183. MONITORING.

       (a) In General.--The Secretary is authorized to monitor all 
     recipients of financial assistance under this title to 
     determine whether the recipients are complying with the 
     provisions of this title, including the regulations issued 
     under this title.
       (b) Investigations.--The Secretary may investigate any 
     matter the Secretary determines to be necessary to determine 
     the compliance of the recipients with this title, including 
     the regulations issued under this title. The investigations 
     authorized by this subsection may include examining records 
     (including making certified copies of the records), 
     questioning employees, and entering any premises or onto any 
     site in which any part of a program or activity of such a 
     recipient is conducted or in which any of the records of the 
     recipient are kept.
       (c) Additional Requirement.--For the purpose of any 
     investigation or hearing conducted under this title by the 
     Secretary, the provisions of section 9 of the Federal Trade 
     Commission Act (15 U.S.C. 49) (relating to the attendance of 
     witnesses and the production of documents) apply to the 
     Secretary, in the same manner and to the same extent as the 
     provisions apply to the Federal Trade Commission.

     SEC. 184. FISCAL CONTROLS; SANCTIONS.

       (a) Establishment of Fiscal Controls by States.--
       (1) In general.--Each State shall establish such fiscal 
     control and fund accounting procedures as may be necessary to 
     assure the proper disbursal of, and accounting for, Federal 
     funds allocated to local areas under subtitle B. Such 
     procedures shall ensure that all financial transactions 
     carried out under subtitle B are conducted and records 
     maintained in accordance with generally accepted accounting 
     principles applicable in each State.
       (2) Cost principles.--
       (A) In general.--Each State (including the Governor of the 
     State), local area (including the chief elected official for 
     the area), and provider receiving funds under this title 
     shall comply with the applicable uniform cost principles 
     included in appropriate circulars or rules of the Office of 
     Management and Budget for the type of entity receiving the 
     funds.
       (B) Exception.--The funds made available to a State for 
     administration of statewide workforce investment activities 
     in accordance with section 134(a)(3)(B) shall be allocable to 
     the overall administration of workforce investment 
     activities, but need not be specifically allocable to--
       (i) the administration of adult employment and training 
     activities;
       (ii) the administration of dislocated worker employment and 
     training activities; or
       (iii) the administration of youth workforce investment 
     activities.
       (3) Uniform administrative requirements.--
       (A) In general.--Each State (including the Governor of the 
     State), local area (including the chief elected official for 
     the area), and provider receiving funds under this title 
     shall comply with the appropriate uniform administrative 
     requirements for grants and agreements applicable for the 
     type of entity receiving the funds, as promulgated in 
     circulars or rules of the Office of Management and Budget.
       (B) Additional requirement.--Procurement transactions under 
     this title between local boards and units of State or local 
     governments shall be conducted only on a cost-reimbursable 
     basis.
       (4) Monitoring.--Each Governor of a State shall conduct on 
     an annual basis onsite monitoring of each local area within 
     the State to ensure compliance with the uniform 
     administrative requirements referred to in paragraph (3).
       (5) Action by governor.--If the Governor determines that a 
     local area is not in compliance with the uniform 
     administrative requirements referred to in paragraph (3), the 
     Governor shall--
       (A) require corrective action to secure prompt compliance 
     with the requirements; and
       (B) impose the sanctions provided under subsection (b) in 
     the event of failure to take the required corrective action.
       (6) Certification.--The Governor shall, every 2 years, 
     certify to the Secretary that--
       (A) the State has implemented the uniform administrative 
     requirements referred to in paragraph (3);
       (B) the State has monitored local areas to ensure 
     compliance with the uniform administrative requirements as 
     required under paragraph (4); and
       (C) the State has taken appropriate action to secure 
     compliance with the requirements pursuant to paragraph (5).
       (7) Action by the secretary.--If the Secretary determines 
     that the Governor has not fulfilled the requirements of this 
     subsection, the Secretary shall--
       (A) require corrective action to secure prompt compliance 
     with the requirements of this subsection; and
       (B) impose the sanctions provided under subsection (e) in 
     the event of failure of the Governor to take the required 
     appropriate action to secure compliance with the 
     requirements.
       (b) Substantial Violation.--
       (1) Action by governor.--If, as a result of financial and 
     compliance audits or otherwise, the Governor determines that 
     there is a substantial violation of a specific provision of 
     this title, and corrective action has not been taken, the 
     Governor shall--
       (A) issue a notice of intent to revoke approval of all or 
     part of the local plan affected; or
       (B) impose a reorganization plan, which may include--
       (i) decertifying the local board involved;
       (ii) prohibiting the use of eligible providers;
       (iii) selecting an alternative entity to administer the 
     program for the local area involved;
       (iv) merging the local area into one or more other local 
     areas; or
       (v) making such other changes as the Secretary or Governor 
     determines to be necessary to secure compliance with the 
     provision.
       (2) Appeal.--
       (A) In general.--The actions taken by the Governor pursuant 
     to subparagraphs (A) and (B) of paragraph (1) may be appealed 
     to the Secretary and shall not become effective until--
       (i) the time for appeal has expired; or
       (ii) the Secretary has issued a decision.
       (B) Additional requirement.--The Secretary shall make a 
     final decision under subparagraph (A) not later than 45 days 
     after the receipt of the appeal.
       (3) Action by the secretary.--If the Governor fails to take 
     promptly an action required under paragraph (1), the 
     Secretary shall take such action.
       (c) Repayment of Certain Amounts to the United States.--
       (1) In general.--Every recipient of funds under this title 
     shall repay to the United States amounts found not to have 
     been expended in accordance with this title.
       (2) Offset of repayment amount.--If the Secretary 
     determines that a State has expended funds received under 
     this title in a manner contrary to the requirements of this 
     title, the Secretary may require repayment by offsetting the 
     amount of such expenditures against any other amount to which 
     the State is or may be entitled under this title, except as 
     provided under subsection (d)(1).
       (3) Repayment from deduction by state.--If the Secretary 
     requires a State to repay funds as a result of a 
     determination that a local area of the State has expended 
     funds in a manner contrary to the requirements of this title, 
     the Governor of the State may use an amount deducted under 
     paragraph (4) to repay the funds, except as provided under 
     subsection (e).
       (4) Deduction by state.--The Governor may deduct an amount 
     equal to the misexpenditure described in paragraph (3) from 
     subsequent program year (subsequent to the program year for 
     which the determination was made) allocations to the local 
     area from funds reserved for the administrative costs of the 
     local programs involved, as appropriate.
       (5) Limitations.--A deduction made by a State as described 
     in paragraph (4) shall not be made until such time as the 
     Governor has taken appropriate corrective action to ensure 
     full compliance with this title within such local area with 
     regard to appropriate expenditures of funds under this title.
       (d) Repayment of Amounts.--
       (1) In general.--Each recipient of funds under this title 
     shall be liable to repay the amounts described in subsection 
     (c)(1), from funds other than funds received under this 
     title, upon a determination by the Secretary that the 
     misexpenditure of the amounts was due to willful disregard of 
     the requirements of this title, gross negligence, failure to 
     observe accepted standards of administration, or a pattern of 
     misexpenditure described in subsection (c)(1). No such 
     determination shall be made under this subsection or 
     subsection (c) until notice and opportunity for a fair 
     hearing have been given to the recipient.
       (2) Factors in imposing sanctions.--In determining whether 
     to impose any sanction authorized by this section against a 
     recipient of funds under this title for violations of this 
     title (including applicable regulations) by a subgrantee or 
     contractor of such recipient, the Secretary shall first 
     determine whether such recipient has adequately demonstrated 
     that the recipient has--
       (A) established and adhered to an appropriate system, for 
     entering into and monitoring subgrant agreements and 
     contracts with subgrantees and contractors, that contains 
     acceptable standards for ensuring accountability;
       (B) entered into a written subgrant agreement or contract 
     with such a subgrantee or contractor that established clear 
     goals and obligations in unambiguous terms;

[[Page 10949]]

       (C) acted with due diligence to monitor the implementation 
     of the subgrant agreement or contract, including carrying out 
     the appropriate monitoring activities (including audits) at 
     reasonable intervals; and
       (D) taken prompt and appropriate corrective action upon 
     becoming aware of any evidence of a violation of this title, 
     including regulations issued under this title, by such 
     subgrantee or contractor.
       (3) Waiver.--If the Secretary determines that the recipient 
     has demonstrated substantial compliance with the requirements 
     of paragraph (2), the Secretary may waive the imposition of 
     sanctions authorized by this section upon such recipient. The 
     Secretary is authorized to impose any sanction consistent 
     with the provisions of this title and with any applicable 
     Federal or State law directly against any subgrantee or 
     contractor for violation of this title, including regulations 
     issued under this title.
       (e) Immediate Termination or Suspension of Assistance in 
     Emergency Situations.--In emergency situations, if the 
     Secretary determines it is necessary to protect the integrity 
     of the funds or ensure the proper operation of the program or 
     activity involved, the Secretary may immediately terminate or 
     suspend financial assistance, in whole or in part, to the 
     recipient if the recipient is given prompt notice and the 
     opportunity for a subsequent hearing within 30 days after 
     such termination or suspension. The Secretary shall not 
     delegate any of the functions or authority specified in this 
     subsection, other than to an officer whose appointment is 
     required to be made by and with the advice and consent of the 
     Senate.
       (f) Discrimination Against Participants.--If the Secretary 
     determines that any recipient under this title has discharged 
     or in any other manner discriminated against a participant or 
     against any individual in connection with the administration 
     of the program involved, or against any individual because 
     such individual has filed any complaint or instituted or 
     caused to be instituted any proceeding under or related to 
     this title, or has testified or is about to testify in any 
     such proceeding or an investigation under or related to this 
     title, or otherwise unlawfully denied to any individual a 
     benefit to which that individual is entitled under the 
     provisions of this title, including regulations issued under 
     this title, the Secretary shall, within 30 days, take such 
     action or order such corrective measures, as necessary, with 
     respect to the recipient or the aggrieved individual, or 
     both.
       (g) Remedies.--The remedies described in this section shall 
     not be considered to be the exclusive remedies available for 
     violations described in this section.

     SEC. 185. REPORTS; RECORDKEEPING; INVESTIGATIONS.

       (a) Recipient Recordkeeping and Reports.--
       (1) In general.--Recipients of funds under this title shall 
     keep records that are sufficient to permit the preparation of 
     reports required by this title and to permit the tracing of 
     funds to a level of expenditure adequate to ensure that the 
     funds have not been spent unlawfully.
       (2) Records and reports regarding general performance.--
     Every such recipient shall maintain such records and submit 
     such reports, in such form and containing such information, 
     as the Secretary may require regarding the performance of 
     programs and activities carried out under this title. Such 
     records and reports shall be submitted to the Secretary but 
     shall not be required to be submitted more than once each 
     quarter unless specifically requested by Congress or a 
     committee of Congress, in which case an estimate regarding 
     such information may be provided.
       (3) Maintenance of standardized records.--In order to allow 
     for the preparation of the reports required under subsection 
     (c), such recipients shall maintain standardized records for 
     all individual participants and provide to the Secretary a 
     sufficient number of such records to provide for an adequate 
     analysis of the records.
       (4) Availability to the public.--
       (A) In general.--Except as provided in subparagraph (B), 
     records maintained by such recipients pursuant to this 
     subsection shall be made available to the public upon 
     request.
       (B) Exception.--Subparagraph (A) shall not apply to--
       (i) information, the disclosure of which would constitute a 
     clearly unwarranted invasion of personal privacy; and
       (ii) trade secrets, or commercial or financial information, 
     that is--

       (I) obtained from a person; and
       (II) privileged or confidential.

       (C) Fees to recover costs.--Such recipients may charge fees 
     sufficient to recover costs applicable to the processing of 
     requests for records under subparagraph (A).
       (b) Investigations of Use of Funds.--
       (1) In general.--
       (A) Secretary.--In order to evaluate compliance with the 
     provisions of this title, the Secretary shall conduct, in 
     several States, in each fiscal year, investigations of the 
     use of funds received by recipients under this title.
       (B) Comptroller general of the united states.--In order to 
     ensure compliance with the provisions of this title, the 
     Comptroller General of the United States may conduct 
     investigations of the use of funds received under this title 
     by any recipient.
       (2) Prohibition.--In conducting any investigation under 
     this title, the Secretary or the Comptroller General of the 
     United States may not request the compilation of any 
     information that the recipient is not otherwise required to 
     compile and that is not readily available to such recipient.
       (3) Audits.--
       (A) In general.--In carrying out any audit under this title 
     (other than any initial audit survey or any audit 
     investigating possible criminal or fraudulent conduct), 
     either directly or through grant or contract, the Secretary, 
     the Inspector General of the Department of Labor, or the 
     Comptroller General of the United States shall furnish to the 
     State, recipient, or other entity to be audited, advance 
     notification of the overall objectives and purposes of the 
     audit, and any extensive recordkeeping or data requirements 
     to be met, not later than 14 days (or as soon as practicable) 
     prior to the commencement of the audit.
       (B) Notification requirement.--If the scope, objectives, or 
     purposes of the audit change substantially during the course 
     of the audit, the entity being audited shall be notified of 
     the change as soon as practicable.
       (C) Additional requirement.--The reports on the results of 
     such audits shall cite the law, regulation, policy, or other 
     criteria applicable to any finding contained in the reports.
       (D) Rule of construction.--Nothing contained in this title 
     shall be construed so as to be inconsistent with the 
     Inspector General Act of 1978 (5 U.S.C. App.) or government 
     auditing standards issued by the Comptroller General of the 
     United States.
       (c) Grantee Information Responsibilities.--Each State, each 
     local board, and each recipient (other than a subrecipient, 
     subgrantee, or contractor of a recipient) receiving funds 
     under this title--
       (1) shall make readily accessible such reports concerning 
     its operations and expenditures as shall be prescribed by the 
     Secretary;
       (2) shall prescribe and maintain comparable management 
     information systems, in accordance with guidelines that shall 
     be prescribed by the Secretary, designed to facilitate the 
     uniform compilation, cross tabulation, and analysis of 
     programmatic, participant, and financial data, on statewide, 
     local area, and other appropriate bases, necessary for 
     reporting, monitoring, and evaluating purposes, including 
     data necessary to comply with section 188;
       (3) shall monitor the performance of providers in complying 
     with the terms of grants, contracts, or other agreements made 
     pursuant to this title; and
       (4) shall, to the extent practicable, submit or make 
     available (including through electronic means) any reports, 
     records, plans, or any other data that are required to be 
     submitted or made available, respectively, under this title.
       (d) Information to Be Included in Reports.--
       (1) In general.--The reports required in subsection (c) 
     shall include information regarding programs and activities 
     carried out under this title pertaining to--
       (A) the relevant demographic characteristics (including 
     race, ethnicity, sex, and age) and other related information 
     regarding participants;
       (B) the programs and activities in which participants are 
     enrolled, and the length of time that participants are 
     engaged in such programs and activities;
       (C) outcomes of the programs and activities for 
     participants, including the occupations of participants, and 
     placement for participants in nontraditional employment;
       (D) specified costs of the programs and activities; and
       (E) information necessary to prepare reports to comply with 
     section 188.
       (2) Additional requirement.--The Secretary shall ensure 
     that all elements of the information required for the reports 
     described in paragraph (1) are defined and that the 
     information is reported uniformly.
       (e) Quarterly Financial Reports.--
       (1) In general.--Each local board in a State shall submit 
     quarterly financial reports to the Governor with respect to 
     programs and activities carried out under this title. Such 
     reports shall include information identifying all program and 
     activity costs by cost category in accordance with generally 
     accepted accounting principles and by year of the 
     appropriation involved.
       (2) Additional requirement.--Each State shall submit to the 
     Secretary, and the Secretary shall submit to the Committee on 
     Health, Education, Labor, and Pensions of the Senate and the 
     Committee on Education and the Workforce of the House of 
     Representatives, on a quarterly basis, a summary of the 
     reports submitted to the Governor pursuant to paragraph (1).
       (f) Maintenance of Additional Records.--Each State and 
     local board shall maintain records with respect to programs 
     and activities carried out under this title that identify--
       (1) any income or profits earned, including such income or 
     profits earned by subrecipients; and

[[Page 10950]]

       (2) any costs incurred (such as stand-in costs) that are 
     otherwise allowable except for funding limitations.
       (g) Cost Categories.--In requiring entities to maintain 
     records of costs by cost category under this title, the 
     Secretary shall require only that the costs be categorized as 
     administrative or programmatic costs.

     SEC. 186. ADMINISTRATIVE ADJUDICATION.

       (a) In General.--Whenever any applicant for financial 
     assistance under this title is dissatisfied because the 
     Secretary has made a determination not to award financial 
     assistance in whole or in part to such applicant, the 
     applicant may request a hearing before an administrative law 
     judge of the Department of Labor. A similar hearing may also 
     be requested by any recipient for whom a corrective action 
     has been required or a sanction has been imposed by the 
     Secretary under section 184.
       (b) Appeal.--The decision of the administrative law judge 
     shall constitute final action by the Secretary unless, within 
     20 days after receipt of the decision of the administrative 
     law judge, a party dissatisfied with the decision or any part 
     of the decision has filed exceptions with the Secretary 
     specifically identifying the procedure, fact, law, or policy 
     to which exception is taken. Any exception not specifically 
     urged during the 20-day period shall be deemed to have been 
     waived. After the 20-day period the decision of the 
     administrative law judge shall become the final decision of 
     the Secretary unless the Secretary, within 30 days after such 
     filing, notifies the parties that the case involved has been 
     accepted for review.
       (c) Time Limit.--Any case accepted for review by the 
     Secretary under subsection (b) shall be decided within 180 
     days after such acceptance. If the case is not decided within 
     the 180-day period, the decision of the administrative law 
     judge shall become the final decision of the Secretary at the 
     end of the 180-day period.
       (d) Additional Requirement.--The provisions of section 187 
     shall apply to any final action of the Secretary under this 
     section.

     SEC. 187. JUDICIAL REVIEW.

       (a) Review.--
       (1) Petition.--With respect to any final order by the 
     Secretary under section 186 by which the Secretary awards, 
     declines to award, or only conditionally awards, financial 
     assistance under this title, or any final order of the 
     Secretary under section 186 with respect to a corrective 
     action or sanction imposed under section 184, any party to a 
     proceeding that resulted in such final order may obtain 
     review of such final order in the United States Court of 
     Appeals having jurisdiction over the applicant for or 
     recipient of the funds involved, by filing a review petition 
     within 30 days after the date of issuance of such final 
     order.
       (2) Action on petition.--The clerk of the court shall 
     transmit a copy of the review petition to the Secretary, who 
     shall file the record on which the final order was entered as 
     provided in section 2112 of title 28, United States Code. The 
     filing of a review petition shall not stay the order of the 
     Secretary, unless the court orders a stay. Petitions filed 
     under this subsection shall be heard expeditiously, if 
     possible within 10 days after the date of filing of a reply 
     to the petition.
       (3) Standard and scope of review.--No objection to the 
     order of the Secretary shall be considered by the court 
     unless the objection was specifically urged, in a timely 
     manner, before the Secretary. The review shall be limited to 
     questions of law and the findings of fact of the Secretary 
     shall be conclusive if supported by substantial evidence.
       (b) Judgment.--The court shall have jurisdiction to make 
     and enter a decree affirming, modifying, or setting aside the 
     order of the Secretary in whole or in part. The judgment of 
     the court regarding the order shall be final, subject to 
     certiorari review by the Supreme Court as provided in section 
     1254(1) of title 28, United States Code.

     SEC. 188. NONDISCRIMINATION.

       (a) In General.--
       (1) Federal financial assistance.--For the purpose of 
     applying the prohibitions against discrimination on the basis 
     of age under the Age Discrimination Act of 1975 (42 U.S.C. 
     6101 et seq.), on the basis of disability under section 504 
     of the Rehabilitation Act of 1973 (29 U.S.C. 794), on the 
     basis of sex under title IX of the Education Amendments of 
     1972 (20 U.S.C. 1681 et seq.), or on the basis of race, 
     color, or national origin under title VI of the Civil Rights 
     Act of 1964 (42 U.S.C. 2000d et seq.), programs and 
     activities funded or otherwise financially assisted in whole 
     or in part under this Act are considered to be programs and 
     activities receiving Federal financial assistance.
       (2) Prohibition of discrimination regarding participation, 
     benefits, and employment.--No individual shall be excluded 
     from participation in, denied the benefits of, subjected to 
     discrimination under, or denied employment in the 
     administration of or in connection with, any such program or 
     activity because of race, color, religion, sex (except as 
     otherwise permitted under title IX of the Education 
     Amendments of 1972), national origin, age, disability, or 
     political affiliation or belief.
       (3) Prohibition on assistance for facilities for sectarian 
     instruction or religious worship.--Participants shall not be 
     employed under this title to carry out the construction, 
     operation, or maintenance of any part of any facility that is 
     used or to be used for sectarian instruction or as a place 
     for religious worship (except with respect to the maintenance 
     of a facility that is not primarily or inherently devoted to 
     sectarian instruction or religious worship, in a case in 
     which the organization operating the facility is part of a 
     program or activity providing services to participants).
       (4) Prohibition on discrimination on basis of participant 
     status.--No person may discriminate against an individual who 
     is a participant in a program or activity that receives funds 
     under this title, with respect to the terms and conditions 
     affecting, or rights provided to, the individual, solely 
     because of the status of the individual as a participant.
       (5) Prohibition on discrimination against certain 
     noncitizens.--Participation in programs and activities or 
     receiving funds under this title shall be available to 
     citizens and nationals of the United States, lawfully 
     admitted permanent resident aliens, refugees, asylees, and 
     parolees, and other immigrants authorized by the Attorney 
     General to work in the United States.
       (b) Action of Secretary.--Whenever the Secretary finds that 
     a State or other recipient of funds under this title has 
     failed to comply with a provision of law referred to in 
     subsection (a)(1), or with paragraph (2), (3), (4), or (5) of 
     subsection (a), including an applicable regulation prescribed 
     to carry out such provision or paragraph, the Secretary shall 
     notify such State or recipient and shall request that the 
     State or recipient comply. If within a reasonable period of 
     time, not to exceed 60 days, the State or recipient fails or 
     refuses to comply, the Secretary may--
       (1) refer the matter to the Attorney General with a 
     recommendation that an appropriate civil action be 
     instituted; or
       (2) take such other action as may be provided by law.
       (c) Action of Attorney General.--When a matter is referred 
     to the Attorney General pursuant to subsection (b)(1), or 
     whenever the Attorney General has reason to believe that a 
     State or other recipient of funds under this title is engaged 
     in a pattern or practice of discrimination in violation of a 
     provision of law referred to in subsection (a)(1) or in 
     violation of paragraph (2), (3), (4), or (5) of subsection 
     (a), the Attorney General may bring a civil action in any 
     appropriate district court of the United States for such 
     relief as may be appropriate, including injunctive relief.
       (d) Job Corps.--For the purposes of this section, Job Corps 
     members shall be considered to be the ultimate beneficiaries 
     of Federal financial assistance.
       (e) Regulations.--The Secretary shall issue regulations 
     necessary to implement this section not later than 1 year 
     after the date of enactment of the Workforce Innovation and 
     Opportunity Act. Such regulations shall adopt standards for 
     determining discrimination and procedures for enforcement 
     that are consistent with the Acts referred to in subsection 
     (a)(1), as well as procedures to ensure that complaints filed 
     under this section and such Acts are processed in a manner 
     that avoids duplication of effort.

     SEC. 189. SECRETARIAL ADMINISTRATIVE AUTHORITIES AND 
                   RESPONSIBILITIES.

       (a) In General.--In accordance with chapter 5 of title 5, 
     United States Code, the Secretary may prescribe rules and 
     regulations to carry out this title, only to the extent 
     necessary to administer and ensure compliance with the 
     requirements of this title. Such rules and regulations may 
     include provisions making adjustments authorized by section 
     6504 of title 31, United States Code. All such rules and 
     regulations shall be published in the Federal Register at 
     least 30 days prior to their effective dates. Copies of each 
     such rule or regulation shall be transmitted to the 
     appropriate committees of Congress on the date of such 
     publication and shall contain, with respect to each material 
     provision of such rule or regulation, a citation to the 
     particular substantive section of law that is the basis for 
     the provision.
       (b) Acquisition of Certain Property and Services.--The 
     Secretary is authorized, in carrying out this title, to 
     accept, purchase, or lease in the name of the Department of 
     Labor, and employ or dispose of in furtherance of the 
     purposes of this title, any money or property, real, 
     personal, or mixed, tangible or intangible, received by gift, 
     devise, bequest, or otherwise, and to accept voluntary and 
     uncompensated services notwithstanding the provisions of 
     section 1342 of title 31, United States Code.
       (c) Authority to Enter Into Certain Agreements and to Make 
     Certain Expenditures.--The Secretary may make such grants, 
     enter into such contracts or agreements, establish such 
     procedures, and make such payments, in installments and in 
     advance or by way of reimbursement, or otherwise allocate or 
     expend such funds under this title, as may be necessary to 
     carry out this title, including making expenditures for 
     construction, repairs, and capital improvements, and 
     including making necessary adjustments in payments on account 
     of over-payments or underpayments.
       (d) Annual Report.--The Secretary shall prepare 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

[[Page 10951]]

     the Senate an annual report regarding the programs and 
     activities funded under this title. The Secretary shall 
     include in such report--
       (1) a summary of the achievements, failures, and challenges 
     of the programs and activities in meeting the objectives of 
     this title;
       (2) a summary of major findings from research, evaluations, 
     pilot projects, and experiments conducted under this title in 
     the fiscal year prior to the submission of the report;
       (3) recommendations for modifications in the programs and 
     activities based on analysis of such findings; and
       (4) such other recommendations for legislative or 
     administrative action as the Secretary determines to be 
     appropriate.
       (e) Utilization of Services and Facilities.--The Secretary 
     is authorized, in carrying out this title, under the same 
     procedures as are applicable under subsection (c) or to the 
     extent permitted by law other than this title, to accept and 
     use the services and facilities of departments, agencies, and 
     establishments of the United States. The Secretary is also 
     authorized, in carrying out this title, to accept and use the 
     services and facilities of the agencies of any State or 
     political subdivision of a State, with the consent of the 
     State or political subdivision.
       (f) Obligational Authority.--Notwithstanding any other 
     provision of this title, the Secretary shall have no 
     authority to enter into contracts, grant agreements, or other 
     financial assistance agreements under this title, except to 
     such extent and in such amounts as are provided in advance in 
     appropriations Acts.
       (g) Program Year.--
       (1) In general.--
       (A) Program year.--Except as provided in subparagraph (B), 
     appropriations for any fiscal year for programs and 
     activities funded under this title shall be available for 
     obligation only on the basis of a program year. The program 
     year shall begin on July 1 in the fiscal year for which the 
     appropriation is made.
       (B) Youth workforce investment activities.--The Secretary 
     may make available for obligation, beginning April 1 of any 
     fiscal year, funds appropriated for such fiscal year to carry 
     out youth workforce investment activities under subtitle B 
     and activities under section 171.
       (2) Availability.--
       (A) In general.--Funds obligated for any program year for a 
     program or activity funded under subtitle B may be expended 
     by each State receiving such funds during that program year 
     and the 2 succeeding program years. Funds received by local 
     areas from States under subtitle B during a program year may 
     be expended during that program year and the succeeding 
     program year.
       (B) Certain national activities.--
       (i) In general.--Funds obligated for any program year for 
     any program or activity carried out under section 169 shall 
     remain available until expended.
       (ii) Incremental funding basis.--A contract or arrangement 
     entered into under the authority of subsection (a) or (b) of 
     section 169 (relating to evaluations, research projects, 
     studies and reports, and multistate projects), including a 
     long-term, nonseverable services contract, may be funded on 
     an incremental basis with annual appropriations or other 
     available funds.
       (C) Special rule.--No amount of the funds obligated for a 
     program year for a program or activity funded under this 
     title shall be deobligated on account of a rate of 
     expenditure that is consistent with a State plan, an 
     operating plan described in section 151, or a plan, grant 
     agreement, contract, application, or other agreement 
     described in subtitle D, as appropriate.
       (D) Funds for pay-for-performance contract strategies.--
     Funds used to carry out pay-for-performance contract 
     strategies by local areas shall remain available until 
     expended.
       (h) Enforcement of Military Selective Service Act.--The 
     Secretary shall ensure that each individual participating in 
     any program or activity established under this title, or 
     receiving any assistance or benefit under this title, has not 
     violated section 3 of the Military Selective Service Act (50 
     U.S.C. App. 453) by not presenting and submitting to 
     registration as required pursuant to such section. The 
     Director of the Selective Service System shall cooperate with 
     the Secretary to enable the Secretary to carry out this 
     subsection.
       (i) Waivers.--
       (1) Special rule regarding designated areas.--A State that 
     has enacted, not later than December 31, 1997, a State law 
     providing for the designation of service delivery areas for 
     the delivery of workforce investment activities, may use such 
     areas as local areas under this title, notwithstanding 
     section 106.
       (2) Special rule regarding sanctions.--A State that has 
     enacted, not later than December 31, 1997, a State law 
     providing for the sanctioning of such service delivery areas 
     for failure to meet performance accountability measures for 
     workforce investment activities, may use the State law to 
     sanction local areas for failure to meet State performance 
     accountability measures under this title.
       (3) General waivers of statutory or regulatory 
     requirements.--
       (A) General authority.--Notwithstanding any other provision 
     of law, the Secretary may waive for a State, or a local area 
     in a State, pursuant to a request submitted by the Governor 
     of the State (in consultation with appropriate local elected 
     officials) with a plan that meets the requirements of 
     subparagraph (B)--
       (i) any of the statutory or regulatory requirements of 
     subtitle A, subtitle B, or this subtitle (except for 
     requirements relating to wage and labor standards, including 
     nondisplacement protections, worker rights, participation and 
     protection of workers and participants, grievance procedures 
     and judicial review, nondiscrimination, allocation of funds 
     to local areas, eligibility of providers or participants, the 
     establishment and functions of local areas and local boards, 
     the funding of infrastructure costs for one-stop centers, and 
     procedures for review and approval of plans, and other 
     requirements relating to the basic purposes of this title); 
     and
       (ii) any of the statutory or regulatory requirements of 
     sections 8 through 10 of the Wagner-Peyser Act (29 U.S.C. 49g 
     through 49i) (excluding requirements relating to the 
     provision of services to unemployment insurance claimants and 
     veterans, and requirements relating to universal access to 
     basic labor exchange services without cost to jobseekers).
       (B) Requests.--A Governor requesting a waiver under 
     subparagraph (A) shall submit a plan to the Secretary to 
     improve the statewide workforce development system that--
       (i) identifies the statutory or regulatory requirements 
     that are requested to be waived and the goals that the State 
     or local area in the State, as appropriate, intends to 
     achieve as a result of the waiver;
       (ii) describes the actions that the State or local area, as 
     appropriate, has undertaken to remove State or local 
     statutory or regulatory barriers;
       (iii) describes the goals of the waiver and the expected 
     programmatic outcomes if the request is granted;
       (iv) describes the individuals impacted by the waiver; and
       (v) describes the process used to monitor the progress in 
     implementing such a waiver, and the process by which notice 
     and, in the case of a waiver for a local area, an opportunity 
     to comment on such request has been provided to the local 
     board for the local area for which the waiver is requested.
       (C) Conditions.--Not later than 90 days after the date of 
     the original submission of a request for a waiver under 
     subparagraph (A), the Secretary shall provide a waiver under 
     this subsection if and only to the extent that--
       (i) the Secretary determines that the requirements 
     requested to be waived impede the ability of the State or 
     local area, as appropriate, to implement the plan described 
     in subparagraph (B); and
       (ii) the State has executed a memorandum of understanding 
     with the Secretary requiring such State to meet, or ensure 
     that the local area for which the waiver is requested meets, 
     agreed-upon outcomes and to implement other appropriate 
     measures to ensure accountability.
       (D) Expedited determination regarding provision of 
     waivers.--If the Secretary has approved a waiver of statutory 
     or regulatory requirements for a State or local area pursuant 
     to this subsection, the Secretary shall expedite the 
     determination regarding the provision of that waiver, for 
     another State or local area if such waiver is in accordance 
     with the approved State or local plan, as appropriate.

     SEC. 190. WORKFORCE FLEXIBILITY PLANS.

       (a) Plans.--A State may submit to the Secretary, and the 
     Secretary may approve, a workforce flexibility plan under 
     which the State is authorized to waive, in accordance with 
     the plan--
       (1) any of the statutory or regulatory requirements 
     applicable under this title to local areas, pursuant to 
     applications for such waivers from the local areas, except 
     for requirements relating to the basic purposes of this 
     title, wage and labor standards, grievance procedures and 
     judicial review, nondiscrimination, eligibility of 
     participants, allocation of funds to local areas, 
     establishment and functions of local areas and local boards, 
     procedures for review and approval of local plans, and worker 
     rights, participation, and protection;
       (2) any of the statutory or regulatory requirements 
     applicable under sections 8 through 10 of the Wagner-Peyser 
     Act (29 U.S.C. 49g through 49i) to the State (excluding 
     requirements relating to the provision of services to 
     unemployment insurance claimants and veterans, and 
     requirements relating to universal access to basic labor 
     exchange services without cost to jobseekers); and
       (3) any of the statutory or regulatory requirements 
     applicable under the Older Americans Act of 1965 (42 U.S.C. 
     3001 et seq.) to State agencies on aging with respect to 
     activities carried out using funds allotted under section 
     506(b) of such Act (42 U.S.C. 3056d(b)), except for 
     requirements relating to the basic purposes of such Act, wage 
     and labor standards, eligibility of participants in the 
     activities, and standards for grant agreements.

[[Page 10952]]

       (b) Content of Plans.--A workforce flexibility plan 
     implemented by a State under subsection (a) shall include 
     descriptions of--
       (1)(A) the process by which local areas in the State may 
     submit and obtain approval by the State of applications for 
     waivers of requirements applicable under this title; and
       (B) the requirements described in subparagraph (A) that are 
     likely to be waived by the State under the plan;
       (2) the requirements applicable under sections 8 through 10 
     of the Wagner-Peyser Act that are proposed to be waived, if 
     any;
       (3) the requirements applicable under the Older Americans 
     Act of 1965 that are proposed to be waived, if any;
       (4) the outcomes to be achieved by the waivers described in 
     paragraphs (1) through (3); and
       (5) other measures to be taken to ensure appropriate 
     accountability for Federal funds in connection with the 
     waivers.
       (c) Periods.--The Secretary may approve a workforce 
     flexibility plan for a period of not more than 5 years.
       (d) Opportunity for Public Comments.--Prior to submitting a 
     workforce flexibility plan to the Secretary for approval, the 
     State shall provide to all interested parties and to the 
     general public adequate notice of and a reasonable 
     opportunity for comment on the waiver requests proposed to be 
     implemented pursuant to such plan.

     SEC. 191. STATE LEGISLATIVE AUTHORITY.

       (a) Authority of State Legislature.--Nothing in this title 
     shall be interpreted to preclude the enactment of State 
     legislation providing for the implementation, consistent with 
     the provisions of this title, of the activities assisted 
     under this title. Any funds received by a State under this 
     title shall be subject to appropriation by the State 
     legislature, consistent with the terms and conditions 
     required under this title.
       (b) Interstate Compacts and Cooperative Agreements.--In the 
     event that compliance with provisions of this title would be 
     enhanced by compacts and cooperative agreements between 
     States, the consent of Congress is given to States to enter 
     into such compacts and agreements to facilitate such 
     compliance, subject to the approval of the Secretary.

     SEC. 192. TRANSFER OF FEDERAL EQUITY IN STATE EMPLOYMENT 
                   SECURITY AGENCY REAL PROPERTY TO THE STATES.

       (a) Transfer of Federal Equity.--Notwithstanding any other 
     provision of law, any Federal equity acquired in real 
     property through grants to States awarded under title III of 
     the Social Security Act (42 U.S.C. 501 et seq.) or under the 
     Wagner-Peyser Act (29 U.S.C. 49 et seq.) is transferred to 
     the States that used the grants for the acquisition of such 
     equity. The portion of any real property that is attributable 
     to the Federal equity transferred under this section shall be 
     used to carry out activities authorized under this Act, title 
     III of the Social Security Act, or the Wagner-Peyser Act. Any 
     disposition of such real property shall be carried out in 
     accordance with the procedures prescribed by the Secretary 
     and the portion of the proceeds from the disposition of such 
     real property that is attributable to the Federal equity 
     transferred under this section shall be used to carry out 
     activities authorized under this Act, title III of the Social 
     Security Act, or the Wagner-Peyser Act.
       (b) Limitation on Use.--A State shall not use funds awarded 
     under this Act, title III of the Social Security Act, or the 
     Wagner-Peyser Act to amortize the costs of real property that 
     is purchased by any State on or after the date of enactment 
     of the Revised Continuing Appropriations Resolution, 2007.

     SEC. 193. CONTINUATION OF STATE ACTIVITIES AND POLICIES.

       (a) In General.--Notwithstanding any other provision of 
     this title, the Secretary may not deny approval of a State 
     plan for a covered State, or an application of a covered 
     State for financial assistance, under this title, or find a 
     covered State (including a State board or Governor), or a 
     local area (including a local board or chief elected 
     official) in a covered State, in violation of a provision of 
     this title, on the basis that--
       (1)(A) the State proposes to allocate or disburse, 
     allocates, or disburses, within the State, funds made 
     available to the State under section 127 or 132 in accordance 
     with the allocation formula for the type of activities 
     involved, or in accordance with a disbursal procedure or 
     process, used by the State under prior consistent State laws; 
     or
       (B) a local board in the State proposes to disburse, or 
     disburses, within the local area, funds made available to the 
     State under section 127 or 132 in accordance with a disbursal 
     procedure or process used by a private industry council under 
     prior consistent State law;
       (2) the State proposes to carry out or carries out a State 
     procedure through which local areas use, as fiscal agents for 
     funds made available to the State under section 127 or 132 
     and allocated within the State, fiscal agents selected in 
     accordance with a process established under prior consistent 
     State laws;
       (3) the State proposes to carry out or carries out a State 
     procedure through which the local boards in the State (or the 
     local boards, the chief elected officials in the State, and 
     the Governor) designate or select the one-stop partners and 
     one-stop operators of the statewide system in the State under 
     prior consistent State laws, in lieu of making the 
     designation or certification described in section 121 
     (regardless of the date the one-stop delivery systems 
     involved have been established);
       (4) the State proposes to carry out or carries out a State 
     procedure through which the persons responsible for selecting 
     eligible providers for purposes of subtitle B are permitted 
     to determine that a provider shall not be selected to provide 
     both intake services under section 134(c)(2) and training 
     services under section 134(c)(3), under prior consistent 
     State laws;
       (5) the State proposes to designate or designates a State 
     board, or proposes to assign or assigns functions and roles 
     of the State board (including determining the time periods 
     for development and submission of a State plan required under 
     section 102 or 103), for purposes of subtitle A in accordance 
     with prior consistent State laws; or
       (6) a local board in the State proposes to use or carry 
     out, uses, or carries out a local plan (including assigning 
     functions and roles of the local board) for purposes of 
     subtitle A in accordance with the authorities and 
     requirements applicable to local plans and private industry 
     councils under prior consistent State laws.
       (b) Definition.--In this section:
       (1) Covered state.--The term ``covered State'' means a 
     State that enacted State laws described in paragraph (2).
       (2) Prior consistent state laws.--The term ``prior 
     consistent State laws'' means State laws, not inconsistent 
     with the Job Training Partnership Act or any other applicable 
     Federal law, that took effect on September 1, 1993, September 
     1, 1995, and September 1, 1997.

     SEC. 194. GENERAL PROGRAM REQUIREMENTS.

       Except as otherwise provided in this title, the following 
     conditions apply to all programs under this title:
       (1) Each program under this title shall provide employment 
     and training opportunities to those who can benefit from, and 
     who are most in need of, such opportunities. In addition, the 
     recipients of Federal funding for programs under this title 
     shall make efforts to develop programs that contribute to 
     occupational development, upward mobility, development of new 
     careers, and opportunities for nontraditional employment.
       (2) Funds provided under this title shall only be used for 
     activities that are in addition to activities that would 
     otherwise be available in the local area in the absence of 
     such funds.
       (3)(A) Any local area may enter into an agreement with 
     another local area (including a local area that is a city or 
     county within the same labor market) to pay or share the cost 
     of educating, training, or placing individuals participating 
     in programs assisted under this title, including the 
     provision of supportive services.
       (B) Such agreement shall be approved by each local board 
     for a local area entering into the agreement and shall be 
     described in the local plan under section 108.
       (4) On-the-job training contracts under this title, shall 
     not be entered into with employers who have received payments 
     under previous contracts under this Act or the Workforce 
     Investment Act of 1998 and have exhibited a pattern of 
     failing to provide on-the-job training participants with 
     continued long-term employment as regular employees with 
     wages and employment benefits (including health benefits) and 
     working conditions at the same level and to the same extent 
     as other employees working a similar length of time and doing 
     the same type of work.
       (5) No person or organization may charge an individual a 
     fee for the placement or referral of the individual in or to 
     a workforce investment activity under this title.
       (6) The Secretary shall not provide financial assistance 
     for any program under this title that involves political 
     activities.
       (7)(A) Income under any program administered by a public or 
     private nonprofit entity may be retained by such entity only 
     if such income is used to continue to carry out the program.
       (B) Income subject to the requirements of subparagraph (A) 
     shall include--
       (i) receipts from goods or services (including conferences) 
     provided as a result of activities funded under this title;
       (ii) funds provided to a service provider under this title 
     that are in excess of the costs associated with the services 
     provided; and
       (iii) interest income earned on funds received under this 
     title.
       (C) For purposes of this paragraph, each entity receiving 
     financial assistance under this title shall maintain records 
     sufficient to determine the amount of such income received 
     and the purposes for which such income is expended.
       (8)(A) The Secretary shall notify the Governor and the 
     appropriate local board and chief elected official of, and 
     consult with the Governor and such board and official 
     concerning, any activity to be funded by the Secretary under 
     this title within the corresponding State or local area.
       (B) The Governor shall notify the appropriate local board 
     and chief elected official of, and consult with such board 
     and official concerning, any activity to be funded by the

[[Page 10953]]

     Governor under this title within the corresponding local 
     area.
       (9)(A) All education programs for youth supported with 
     funds provided under chapter 2 of subtitle B shall be 
     consistent with applicable State and local educational 
     standards.
       (B) Standards and procedures with respect to awarding 
     academic credit and certifying educational attainment in 
     programs conducted under such chapter shall be consistent 
     with the requirements of applicable State and local law, 
     including regulation.
       (10) No funds available under this title may be used for 
     public service employment except as specifically authorized 
     under this title.
       (11) The Federal requirements governing the title, use, and 
     disposition of real property, equipment, and supplies 
     purchased with funds provided under this title shall be the 
     corresponding Federal requirements generally applicable to 
     such items purchased through Federal grants to States and 
     local governments.
       (12) Nothing in this title shall be construed to provide an 
     individual with an entitlement to a service under this title.
       (13) Services, facilities, or equipment funded under this 
     title may be used, as appropriate, on a fee-for-service 
     basis, by employers in a local area in order to provide 
     employment and training activities to incumbent workers--
       (A) when such services, facilities, or equipment are not in 
     use for the provision of services for eligible participants 
     under this title;
       (B) if such use for incumbent workers would not have an 
     adverse effect on the provision of services to eligible 
     participants under this title; and
       (C) if the income derived from such fees is used to carry 
     out the programs authorized under this title.
       (14) Funds provided under this title shall not be used to 
     establish or operate a stand-alone fee-for-service enterprise 
     in a situation in which a private sector employment agency 
     (as defined in section 701 of the Civil Rights Act of 1964 
     (42 U.S.C. 2000e)) is providing full access to similar or 
     related services in such a manner as to fully meet the 
     identified need. For purposes of this paragraph, such an 
     enterprise does not include a one-stop delivery system 
     described in section 121(e).
       (15)(A) None of the funds available 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 annual 
     rate of basic pay prescribed for level II of the Executive 
     Schedule under section 5313 of title 5, United States Code.
       (B) The limitation described in subparagraph (A) shall not 
     apply to vendors providing goods and services as defined in 
     Office of Management and Budget Circular A-133. In a case in 
     which a State is a recipient of such funds, the State may 
     establish a lower limit than is provided in subparagraph (A) 
     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.

     SEC. 195. RESTRICTIONS ON LOBBYING ACTIVITIES.

       (a) Publicity Restrictions.--
       (1) In general.--No funds provided under this Act shall be 
     used for--
       (A) publicity or propaganda purposes; or
       (B) the preparation, distribution, or use of any kit, 
     pamphlet, booklet, publication, electronic communication, 
     radio, television, or video presentation designed to support 
     or defeat--
       (i) the enactment of legislation before Congress or any 
     State or local legislature or legislative body; or
       (ii) any proposed or pending regulation, administrative 
     action, or order issued by the executive branch of any State 
     or local government.
       (2) Exception.--Paragraph (1) shall not apply to--
       (A) normal and recognized executive-legislative 
     relationships;
       (B) the preparation, distribution, or use of the materials 
     described in paragraph (1)(B) in presentation to Congress or 
     any State or local legislature or legislative body; or
       (C) such preparation, distribution, or use of such 
     materials in presentation to the executive branch of any 
     State or local government.
       (b) Salary Restrictions.--
       (1) In general.--No funds provided under this Act shall be 
     used 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 
     Congress or any State government, or a State or local 
     legislature or legislative body.
       (2) Exception.--Paragraph (1) shall not apply to--
       (A) normal and recognized executive-legislative 
     relationships; or
       (B) 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.

                 TITLE II--ADULT EDUCATION AND LITERACY

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Adult Education and Family 
     Literacy Act''.

     SEC. 202. PURPOSE.

       It is the purpose of this title to create a partnership 
     among the Federal Government, States, and localities to 
     provide, on a voluntary basis, adult education and literacy 
     activities, in order to--
       (1) assist adults to become literate and obtain the 
     knowledge and skills necessary for employment and economic 
     self-sufficiency;
       (2) assist adults who are parents or family members to 
     obtain the education and skills that--
       (A) are necessary to becoming full partners in the 
     educational development of their children; and
       (B) lead to sustainable improvements in the economic 
     opportunities for their family;
       (3) assist adults in attaining a secondary school diploma 
     and in the transition to postsecondary education and 
     training, including through career pathways; and
       (4) assist immigrants and other individuals who are English 
     language learners in--
       (A) improving their--
       (i) reading, writing, speaking, and comprehension skills in 
     English; and
       (ii) mathematics skills; and
       (B) acquiring an understanding of the American system of 
     Government, individual freedom, and the responsibilities of 
     citizenship.

     SEC. 203. DEFINITIONS.

       In this title:
       (1) Adult education.--The term ``adult education'' means 
     academic instruction and education services below the 
     postsecondary level that increase an individual's ability 
     to--
       (A) read, write, and speak in English and perform 
     mathematics or other activities necessary for the attainment 
     of a secondary school diploma or its recognized equivalent;
       (B) transition to postsecondary education and training; and
       (C) obtain employment.
       (2) Adult education and literacy activities.--The term 
     ``adult education and literacy activities'' means programs, 
     activities, and services that include adult education, 
     literacy, workplace adult education and literacy activities, 
     family literacy activities, English language acquisition 
     activities, integrated English literacy and civics education, 
     workforce preparation activities, or integrated education and 
     training.
       (3) Eligible agency.--The term ``eligible agency'' means 
     the sole entity or agency in a State or an outlying area 
     responsible for administering or supervising policy for adult 
     education and literacy activities in the State or outlying 
     area, respectively, consistent with the law of the State or 
     outlying area, respectively.
       (4) Eligible individual.--The term ``eligible individual'' 
     means an individual--
       (A) who has attained 16 years of age;
       (B) who is not enrolled or required to be enrolled in 
     secondary school under State law; and
       (C) who--
       (i) is basic skills deficient;
       (ii) does not have a secondary school diploma or its 
     recognized equivalent, and has not achieved an equivalent 
     level of education; or
       (iii) is an English language learner.
       (5) Eligible provider.--The term ``eligible provider'' 
     means an organization that has demonstrated effectiveness in 
     providing adult education and literacy activities that may 
     include--
       (A) a local educational agency;
       (B) a community-based organization or faith-based 
     organization;
       (C) a volunteer literacy organization;
       (D) an institution of higher education;
       (E) a public or private nonprofit agency;
       (F) a library;
       (G) a public housing authority;
       (H) a nonprofit institution that is not described in any of 
     subparagraphs (A) through (G) and has the ability to provide 
     adult education and literacy activities to eligible 
     individuals;
       (I) a consortium or coalition of the agencies, 
     organizations, institutions, libraries, or authorities 
     described in any of subparagraphs (A) through (H); and
       (J) a partnership between an employer and an entity 
     described in any of subparagraphs (A) through (I).
       (6) English language acquisition program.--The term 
     ``English language acquisition program'' means a program of 
     instruction--
       (A) designed to help eligible individuals who are English 
     language learners achieve competence in reading, writing, 
     speaking, and comprehension of the English language; and
       (B) that leads to--
       (i)(I) attainment of a secondary school diploma or its 
     recognized equivalent; and
       (II) transition to postsecondary education and training; or
       (ii) employment.
       (7) English language learner.--The term ``English language 
     learner'' when used with respect to an eligible individual, 
     means an eligible individual who has limited ability in

[[Page 10954]]

     reading, writing, speaking, or comprehending 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.
       (8) Essential components of reading instruction.--The term 
     ``essential components of reading instruction'' has the 
     meaning given the term in section 1208 of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 6368).
       (9) Family literacy activities.--The term ``family literacy 
     activities'' means activities that are of sufficient 
     intensity and quality, to make sustainable improvements in 
     the economic prospects for a family and that better enable 
     parents or family members to support their children's 
     learning needs, and that integrate all of the following 
     activities:
       (A) Parent or family adult education and literacy 
     activities that lead to readiness for postsecondary education 
     or training, career advancement, and economic self-
     sufficiency.
       (B) Interactive literacy activities between parents or 
     family members and their children.
       (C) Training for parents or family members regarding how to 
     be the primary teacher for their children and full partners 
     in the education of their children.
       (D) An age-appropriate education to prepare children for 
     success in school and life experiences.
       (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 (20 
     U.S.C. 1001).
       (11) Integrated education and training.--The term 
     ``integrated education and training'' means a service 
     approach that provides adult education and literacy 
     activities concurrently and contextually with workforce 
     preparation activities and workforce training for a specific 
     occupation or occupational cluster for the purpose of 
     educational and career advancement.
       (12) Integrated english literacy and civics education.--The 
     term ``integrated English literacy and civics education'' 
     means education services provided to English language 
     learners who are adults, including professionals with degrees 
     and credentials in their native countries, that enables such 
     adults to achieve competency in the English language and 
     acquire the basic and more advanced skills needed to function 
     effectively as parents, workers, and citizens in the United 
     States. Such services shall include instruction in literacy 
     and English language acquisition and instruction on the 
     rights and responsibilities of citizenship and civic 
     participation, and may include workforce training.
       (13) Literacy.--The term ``literacy'' means an individual's 
     ability to read, write, and speak in English, compute, and 
     solve problems, at levels of proficiency necessary to 
     function on the job, in the family of the individual, and in 
     society.
       (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 college or university; 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) Workplace adult education and literacy activities.--
     The term ``workplace adult education and literacy 
     activities'' means adult education and literacy activities 
     offered by an eligible provider in collaboration with an 
     employer or employee organization at a workplace or an off-
     site location that is designed to improve the productivity of 
     the workforce.
       (17) Workforce preparation activities.--The term 
     ``workforce preparation activities'' means activities, 
     programs, or services designed to help an individual acquire 
     a combination of basic academic skills, critical thinking 
     skills, digital literacy skills, and self-management skills, 
     including competencies in utilizing resources, using 
     information, working with others, understanding systems, and 
     obtaining skills necessary for successful transition into and 
     completion of postsecondary education or training, or 
     employment.

     SEC. 204. HOME SCHOOLS.

       Nothing in this title shall be construed to affect home 
     schools, whether a home school is treated as a home school or 
     a private school under State law, or to compel a parent or 
     family member engaged in home schooling to participate in 
     adult education and literacy activities.

     SEC. 205. RULE OF CONSTRUCTION REGARDING POSTSECONDARY 
                   TRANSITION AND CONCURRENT ENROLLMENT 
                   ACTIVITIES.

       Nothing in this title shall be construed to prohibit or 
     discourage the use of funds provided under this title for 
     adult education and literacy activities that help eligible 
     individuals transition to postsecondary education and 
     training or employment, or for concurrent enrollment 
     activities.

     SEC. 206. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to carry out this 
     title $577,667,000 for fiscal year 2015, $622,286,000 for 
     fiscal year 2016, $635,198,000 for fiscal year 2017, 
     $649,287,000 for fiscal year 2018, $664,552,000 for fiscal 
     year 2019, and $678,640,000 for fiscal year 2020.

                     Subtitle A--Federal Provisions

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

       (a) Reservation of Funds.--From the sum appropriated under 
     section 206 for a fiscal year, the Secretary--
       (1) shall reserve 2 percent to carry out section 242, 
     except that the amount so reserved shall not exceed 
     $15,000,000; and
       (2) shall reserve 12 percent of the amount that remains 
     after reserving funds under paragraph (1) to carry out 
     section 243.
       (b) Grants to Eligible Agencies.--
       (1) In general.--From the sum appropriated under section 
     206 and not reserved under subsection (a) for a fiscal year, 
     the Secretary shall award a grant to each eligible agency 
     having a unified State plan approved under section 102 or a 
     combined State plan approved under section 103 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), to enable the eligible agency to 
     carry out the activities assisted under this title.
       (2) Purpose of grants.--The Secretary may award a grant 
     under paragraph (1) only if the eligible entity involved 
     agrees to expend the grant for adult education and literacy 
     activities in accordance with the provisions of this title.
       (c) Allotments.--
       (1) Initial allotments.--From the sum appropriated under 
     section 206 and not reserved under subsection (a) for a 
     fiscal year, the Secretary shall allot to each eligible 
     agency having a unified State plan approved under section 102 
     or a combined State plan approved under section 103--
       (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 sum appropriated under 
     section 206, 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 sum 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) Award basis.--The Secretary shall award grants pursuant 
     to paragraph (1) on a competitive basis and pursuant to the 
     recommendations from the Pacific Region Educational 
     Laboratory in Honolulu, Hawaii.
       (3) Termination of eligibility.--Notwithstanding any other 
     provision of law, the Republic of Palau shall be eligible to 
     receive a grant under this title except during the period 
     described in section 3(45).
       (4) Administrative costs.--The Secretary may provide not 
     more than 5 percent of the funds made available for grants 
     under this subsection to pay the administrative costs of the 
     Pacific Region Educational Laboratory regarding activities 
     assisted under this subsection.
       (f) Hold-harmless Provisions.--
       (1) In general.--Notwithstanding subsection (c), for fiscal 
     year 2015 and each succeeding fiscal year, no eligible agency 
     shall receive an allotment under this section that is less 
     than 90 percent of the allotment the eligible agency received 
     for the preceding fiscal year under this section.
       (2) 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 
     ratably 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.

[[Page 10955]]



     SEC. 212. PERFORMANCE ACCOUNTABILITY SYSTEM.

       Programs and activities authorized in this title are 
     subject to the performance accountability provisions 
     described in section 116.

                      Subtitle B--State Provisions

     SEC. 221. STATE ADMINISTRATION.

       Each eligible agency shall be responsible for the State or 
     outlying area administration of activities under this title, 
     including--
       (1) the development, implementation, and monitoring of the 
     relevant components of the unified State plan in section 102 
     or the combined State plan in section 103;
       (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; and
       (3) coordination and nonduplication 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 section 211(b) 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 20 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 $85,000, 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 literacy activities 
     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 literacy activities 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 literacy activities 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 literacy activities in a manner that is 
     consistent with the purpose of this title.

     SEC. 223. STATE LEADERSHIP ACTIVITIES.

       (a) Activities.--
       (1) Required.--Each eligible agency shall use funds made 
     available under section 222(a)(2) for the following adult 
     education and literacy activities to develop or enhance the 
     adult education system of the State or outlying area:
       (A) The alignment of adult education and literacy 
     activities with other core programs and one-stop partners, 
     including eligible providers, to implement the strategy 
     identified in the unified State plan under section 102 or the 
     combined State plan under section 103, including the 
     development of career pathways to provide access to 
     employment and training services for individuals in adult 
     education and literacy activities.
       (B) The establishment or operation of high quality 
     professional development programs to improve the instruction 
     provided pursuant to local activities required under section 
     231(b), including instruction incorporating the essential 
     components of reading instruction as such components relate 
     to adults, instruction related to the specific needs of adult 
     learners, instruction provided by volunteers or by personnel 
     of a State or outlying area, and dissemination of information 
     about models and promising practices related to such 
     programs.
       (C) The provision of technical assistance to eligible 
     providers of adult education and literacy activities 
     receiving funds under this title, including--
       (i) the development and dissemination of instructional and 
     programmatic practices based on the most rigorous or 
     scientifically valid research available and appropriate, in 
     reading, writing, speaking, mathematics, English language 
     acquisition programs, distance education, and staff training;
       (ii) the role of eligible providers as a one-stop partner 
     to provide access to employment, education, and training 
     services; and
       (iii) assistance in the use of technology, including for 
     staff training, to eligible providers, especially the use of 
     technology to improve system efficiencies.
       (D) The monitoring and evaluation of the quality of, and 
     the improvement in, adult education and literacy activities 
     and the dissemination of information about models and proven 
     or promising practices within the State.
       (2) Permissible activities.--Each eligible agency may use 
     funds made available under section 222(a)(2) for 1 or more of 
     the following adult education and literacy activities:
       (A) The support of State or regional networks of literacy 
     resource centers.
       (B) The development and implementation of technology 
     applications, translation technology, or distance education, 
     including professional development to support the use of 
     instructional technology.
       (C) Developing and disseminating curricula, including 
     curricula incorporating the essential components of reading 
     instruction as such components relate to adults.
       (D) Developing content and models for integrated education 
     and training and career pathways.
       (E) The provision of assistance to eligible providers in 
     developing and implementing programs that achieve the 
     objectives of this title and in measuring the progress of 
     those programs in achieving such objectives, including 
     meeting the State adjusted levels of performance described in 
     section 116(b)(3).
       (F) The development and implementation of a system to 
     assist in the transition from adult education to 
     postsecondary education, including linkages with 
     postsecondary educational institutions or institutions of 
     higher education.
       (G) Integration of literacy and English language 
     instruction with occupational skill training, including 
     promoting linkages with employers.
       (H) Activities to promote workplace adult education and 
     literacy activities.
       (I) Identifying curriculum frameworks and aligning rigorous 
     content standards that--
       (i) specify what adult learners should know and be able to 
     do in the areas of reading and language arts, mathematics, 
     and English language acquisition; and
       (ii) take into consideration the following:

       (I) State adopted academic standards.
       (II) The current adult skills and literacy assessments used 
     in the State or outlying area.
       (III) The primary indicators of performance described in 
     section 116.
       (IV) Standards and academic requirements for enrollment in 
     nonremedial, for-credit courses in postsecondary educational 
     institutions or institutions of higher education supported by 
     the State or outlying area.
       (V) Where appropriate, the content of occupational and 
     industry skill standards widely used by business and industry 
     in the State or outlying area.

       (J) Developing and piloting of strategies for improving 
     teacher quality and retention.
       (K) The development and implementation of programs and 
     services to meet the needs of adult learners with learning 
     disabilities or English language learners, which may include 
     new and promising assessment tools and strategies that are 
     based on scientifically valid research, where appropriate, 
     and identify the needs and capture the gains of such students 
     at the lowest achievement levels.
       (L) Outreach to instructors, students, and employers.
       (M) Other activities of statewide significance that promote 
     the purpose of this title.
       (b) Collaboration.--In carrying out this section, eligible 
     agencies shall collaborate 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.

       Each State desiring to receive funds under this title for 
     any fiscal year shall submit and have approved a unified 
     State plan in accordance with section 102 or a combined State 
     plan in accordance with section 103.

     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) adult education and literacy activities;
       (2) special education, as determined by the eligible 
     agency;
       (3) secondary school credit;
       (4) integrated education and training;
       (5) career pathways;
       (6) concurrent enrollment;
       (7) peer tutoring; and
       (8) transition to re-entry initiatives and other 
     postrelease services with the goal of reducing recidivism.
       (c) Priority.--Each eligible agency that is using 
     assistance provided under this section to carry out a program 
     for criminal offenders

[[Page 10956]]

     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) Report.--In addition to any report required under 
     section 116, each eligible agency that receives assistance 
     provided under this section shall annually prepare and submit 
     to the Secretary a report on the progress, as described in 
     section 116, of the eligible agency with respect to the 
     programs and activities carried out under this section, 
     including the relative rate of recidivism for the criminal 
     offenders served.
       (e) Definitions.--In this section:
       (1) Correctional institution.--The term ``correctional 
     institution'' means any--
       (A) prison;
       (B) jail;
       (C) reformatory;
       (D) work farm;
       (E) detention center; or
       (F) halfway house, community-based rehabilitation center, 
     or any other similar institution designed for the confinement 
     or rehabilitation of criminal offenders.
       (2) Criminal offender.--The term ``criminal offender'' 
     means any individual who is charged with or convicted of any 
     criminal offense.

                      Subtitle C--Local Provisions

     SEC. 231. GRANTS AND CONTRACTS FOR ELIGIBLE PROVIDERS.

       (a) Grants and Contracts.--From grant funds made available 
     under section 222(a)(1), each eligible agency shall award 
     multiyear grants or contracts, on a competitive basis, to 
     eligible providers within the State or outlying area to 
     enable the eligible providers to develop, implement, and 
     improve adult education and literacy activities within the 
     State.
       (b) Required Local Activities.--The eligible agency shall 
     require that each eligible provider receiving a grant or 
     contract under subsection (a) use the grant or contract to 
     establish or operate programs that provide adult education 
     and literacy activities, including programs that provide such 
     activities concurrently.
       (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 and compete 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) Special Rule.--Each eligible agency awarding a grant or 
     contract under this section shall not use any funds made 
     available under this title for adult education and literacy 
     activities for the purpose of supporting or providing 
     programs, services, or activities for individuals who are not 
     individuals described in subparagraphs (A) and (B) of section 
     203(4), except that such agency may use such funds for such 
     purpose if such programs, services, or activities are related 
     to family literacy activities. In providing family literacy 
     activities under this title, an eligible provider shall 
     attempt to coordinate with programs and services that are not 
     assisted under this title prior to using funds for adult 
     education and literacy activities under this title for 
     activities other than activities for eligible individuals.
       (e) Considerations.--In awarding grants or contracts under 
     this section, the eligible agency shall consider--
       (1) the degree to which the eligible provider would be 
     responsive to--
       (A) regional needs as identified in the local plan under 
     section 108; and
       (B) serving individuals in the community who were 
     identified in such plan as most in need of adult education 
     and literacy activities, including individuals--
       (i) who have low levels of literacy skills; or
       (ii) who are English language learners;
       (2) the ability of the eligible provider to serve eligible 
     individuals with disabilities, including eligible individuals 
     with learning disabilities;
       (3) past effectiveness of the eligible provider in 
     improving the literacy of eligible individuals, to meet 
     State-adjusted levels of performance for the primary 
     indicators of performance described in section 116, 
     especially with respect to eligible individuals who have low 
     levels of literacy;
       (4) the extent to which the eligible provider demonstrates 
     alignment between proposed activities and services and the 
     strategy and goals of the local plan under section 108, as 
     well as the activities and services of the one-stop partners;
       (5) whether the eligible provider's program--
       (A) is of sufficient intensity and quality, and based on 
     the most rigorous research available so that participants 
     achieve substantial learning gains; and
       (B) uses instructional practices that include the essential 
     components of reading instruction;
       (6) whether the eligible provider's activities, including 
     whether reading, writing, speaking, mathematics, and English 
     language acquisition instruction delivered by the eligible 
     provider, are based on the best practices derived from the 
     most rigorous research available and appropriate, including 
     scientifically valid research and effective educational 
     practice;
       (7) whether the eligible provider's activities effectively 
     use technology, services, and delivery systems, including 
     distance education in a manner sufficient to increase the 
     amount and quality of learning and how such technology, 
     services, and systems lead to improved performance;
       (8) whether the eligible provider's activities provide 
     learning in context, including through integrated education 
     and training, so that an individual acquires the skills 
     needed to transition to and complete postsecondary education 
     and training programs, obtain and advance in employment 
     leading to economic self-sufficiency, and to exercise the 
     rights and responsibilities of citizenship;
       (9) whether the eligible provider's activities are 
     delivered by well-trained instructors, counselors, and 
     administrators who meet any minimum qualifications 
     established by the State, where applicable, and who have 
     access to high quality professional development, including 
     through electronic means;
       (10) whether the eligible provider's activities coordinate 
     with other available education, training, and social service 
     resources in the community, such as by establishing strong 
     links with elementary schools and secondary schools, 
     postsecondary educational institutions, institutions of 
     higher education, local workforce investment boards, one-stop 
     centers, job training programs, and social service agencies, 
     business, industry, labor organizations, community-based 
     organizations, nonprofit organizations, and intermediaries, 
     for the development of career pathways;
       (11) whether the eligible provider's activities offer 
     flexible schedules and coordination with Federal, State, and 
     local support services (such as child care, transportation, 
     mental health services, and career planning) that are 
     necessary to enable individuals, including individuals with 
     disabilities or other special needs, to attend and complete 
     programs;
       (12) whether the eligible provider maintains a high-quality 
     information management system that has the capacity to report 
     measurable participant outcomes (consistent with section 116) 
     and to monitor program performance; and
       (13) whether the local areas in which the eligible provider 
     is located have a demonstrated need for additional English 
     language acquisition programs and civics education programs.

     SEC. 232. LOCAL APPLICATION.

       Each eligible provider desiring a grant or contract from an 
     eligible agency 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 
     literacy activities;
       (3) a description of how the eligible provider will provide 
     services in alignment with the local plan under section 108, 
     including how such provider will promote concurrent 
     enrollment in programs and activities under title I, as 
     appropriate;
       (4) a description of how the eligible provider will meet 
     the State adjusted levels of performance described in section 
     116(b)(3), including how such provider will collect data to 
     report on such performance indicators;
       (5) a description of how the eligible provider will fulfill 
     one-stop partner responsibilities as described in section 
     121(b)(1)(A), as appropriate;
       (6) a description of how the eligible provider will provide 
     services in a manner that meets the needs of eligible 
     individuals; and
       (7) information that addresses the considerations described 
     under section 231(e), as applicable.

     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) not less than 95 percent shall be expended for carrying 
     out adult education and literacy activities; and
       (2) the remaining amount, not to exceed 5 percent, shall be 
     used for planning, administration (including carrying out the 
     requirements of section 116), professional development, and 
     the activities described in paragraphs (3) and (5) of section 
     232.
       (b) Special Rule.--In cases where the cost limits described 
     in subsection (a) are too restrictive to allow for the 
     activities described in subsection (a)(2), the eligible 
     provider shall 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.

       (a) Supplement Not Supplant.--Funds made available for 
     adult education and literacy activities under this title 
     shall supplement and not supplant other State or local public 
     funds expended for adult education and literacy activities.
       (b) Maintenance of Effort.--
       (1) In general.--
       (A) Determination.--An eligible agency may receive funds 
     under this title for any

[[Page 10957]]

     fiscal year if the Secretary finds that the fiscal effort per 
     student or the aggregate expenditures of such eligible agency 
     for activities under this title, in the second preceding 
     fiscal year, were not less than 90 percent of the fiscal 
     effort per student or the aggregate expenditures of such 
     eligible agency for adult education and literacy activities 
     in the third preceding fiscal year.
       (B) Proportionate reduction.--Subject to paragraphs (2), 
     (3), and (4), for any fiscal year with respect to which the 
     Secretary determines under subparagraph (A) that the fiscal 
     effort or the aggregate expenditures of an eligible agency 
     for the preceding program year were less than such effort or 
     expenditures for the second preceding program year, the 
     Secretary--
       (i) shall determine the percentage decreases in such effort 
     or in such expenditures; and
       (ii) shall decrease the payment made under this title for 
     such program year to the agency for adult education and 
     literacy activities by the lesser of such percentages.
       (2) Computation.--In computing the fiscal effort and 
     aggregate expenditures under paragraph (1), the Secretary 
     shall exclude capital expenditures and special one-time 
     project costs.
       (3) Decrease in federal support.--If the amount made 
     available for adult education and literacy activities under 
     this title for a fiscal year is less than the amount made 
     available for adult education and literacy activities under 
     this title for the preceding fiscal year, then the fiscal 
     effort per student and the aggregate expenditures of an 
     eligible agency required in order to avoid a reduction under 
     paragraph (1)(B) shall be decreased by the same percentage as 
     the percentage decrease in the amount so made available.
       (4) Waiver.--The Secretary may waive the requirements of 
     this subsection for not more than 1 fiscal year, if the 
     Secretary determines that a waiver would be equitable due to 
     exceptional or uncontrollable circumstances, such as a 
     natural disaster or an unforeseen and precipitous decline in 
     the financial resources of the State or outlying area of the 
     eligible agency. If the Secretary grants a waiver under the 
     preceding sentence for a fiscal year, the level of effort 
     required under paragraph (1) shall not be reduced in the 
     subsequent fiscal year because of the waiver.

     SEC. 242. NATIONAL LEADERSHIP ACTIVITIES.

       (a) In General.--The Secretary shall establish and carry 
     out a program of national leadership activities to enhance 
     the quality and outcomes of adult education and literacy 
     activities and programs nationwide.
       (b) Required Activities.--The national leadership 
     activities described in subsection (a) shall include 
     technical assistance, including--
       (1) assistance to help States meet the requirements of 
     section 116;
       (2) upon request by a State, assistance provided to 
     eligible providers in using performance accountability 
     measures based on indicators described in section 116, and 
     data systems for the improvement of adult education and 
     literacy activities;
       (3) carrying out rigorous research and evaluation on 
     effective adult education and literacy activities, as well as 
     estimating the number of adults functioning at the lowest 
     levels of literacy proficiency, which shall be coordinated 
     across relevant Federal agencies, including the Institute of 
     Education Sciences; and
       (4) carrying out an independent evaluation at least once 
     every 4 years of the programs and activities under this 
     title, taking into consideration the evaluation subjects 
     referred to in section 169(a)(2).
       (c) Allowable Activities.--The national leadership 
     activities described in subsection (a) may include the 
     following:
       (1) Technical assistance, including--
       (A) assistance related to professional development 
     activities, and assistance for the purposes of developing, 
     improving, identifying, and disseminating the most successful 
     methods and techniques for providing adult education and 
     literacy activities, based on scientifically valid research 
     where available;
       (B) assistance in distance education and promoting and 
     improving the use of technology in the classroom, including 
     instruction in English language acquisition for English 
     language learners;
       (C) assistance in the development and dissemination of 
     proven models for addressing the digital literacy needs of 
     adults, including older adults; and
       (D) supporting efforts aimed at strengthening programs at 
     the State and local levels, such as technical assistance in 
     program planning, assessment, evaluation, and monitoring of 
     activities carried out under this title.
       (2) Funding national leadership activities either directly 
     or through grants, contracts, or cooperative agreements 
     awarded on a competitive basis to or with postsecondary 
     educational institutions, institutions of higher education, 
     public or private organizations or agencies (including public 
     libraries), or consortia of such institutions, organizations, 
     or agencies, which may include--
       (A) developing, improving, and identifying the most 
     successful methods and techniques for addressing the 
     education needs of adults, including instructional practices 
     using the essential components of reading instruction based 
     on the work of the National Institute of Child Health and 
     Human Development;
       (B) supporting national, regional, or local networks of 
     private nonprofit organizations, public libraries, or 
     institutions of higher education to strengthen the ability of 
     such networks' members to meet the performance requirements 
     described in section 116 of eligible providers;
       (C) increasing the effectiveness, and improving the 
     quality, of adult education and literacy activities, which 
     may include--
       (i) carrying out rigorous research;
       (ii) carrying out demonstration programs;
       (iii) accelerating learning outcomes for eligible 
     individuals with the lowest literacy levels;
       (iv) developing and promoting career pathways for eligible 
     individuals;
       (v) promoting concurrent enrollment programs in adult 
     education and credit bearing postsecondary coursework;
       (vi) developing high-quality professional development 
     activities for eligible providers; and
       (vii) developing, replicating, and disseminating 
     information on best practices and innovative programs, such 
     as--

       (I) the identification of effective strategies for working 
     with adults with learning disabilities and with adults who 
     are English language learners;
       (II) integrated education and training programs;
       (III) workplace adult education and literacy activities; 
     and
       (IV) postsecondary education and training transition 
     programs;

       (D) providing for the conduct of an independent evaluation 
     and assessment of adult education and literacy activities 
     through grants and contracts awarded on a competitive basis, 
     which shall include descriptions of--
       (i) the effect of performance accountability measures and 
     other measures of accountability on the delivery of adult 
     education and literacy activities;
       (ii) the extent to which the adult education and literacy 
     activities increase the literacy skills of eligible 
     individuals, lead to involvement in education and training, 
     enhance the employment and earnings of such participants, 
     and, if applicable, lead to other positive outcomes, such as 
     success in re-entry and reductions in recidivism in the case 
     of prison-based adult education and literacy activities;
       (iii) the extent to which the provision of support services 
     to eligible individuals enrolled in adult education and 
     literacy activities increase the rate of enrollment in, and 
     successful completion of, such programs; and
       (iv) the extent to which different types of providers 
     measurably improve the skills of eligible individuals in 
     adult education and literacy activities;
       (E) collecting data, such as data regarding the improvement 
     of both local and State data systems, through technical 
     assistance and development of model performance data 
     collection systems;
       (F) determining how participation in adult education and 
     literacy activities prepares eligible individuals for entry 
     into postsecondary education and employment and, in the case 
     of programs carried out in correctional institutions, has an 
     effect on recidivism; and
       (G) other activities designed to enhance the quality of 
     adult education and literacy activities nationwide.

     SEC. 243. INTEGRATED ENGLISH LITERACY AND CIVICS EDUCATION.

       (a) In General.--From funds made available under section 
     211(a)(2) for each fiscal year, the Secretary shall award 
     grants to States, from allotments under subsection (b), for 
     integrated English literacy and civics education, in 
     combination with integrated education and training 
     activities.
       (b) Allotment.--
       (1) In general.--Subject to paragraph (2), from amounts 
     made available under section 211(a)(2) for a fiscal year, the 
     Secretary shall allocate--
       (A) 65 percent to the States on the basis of a State's need 
     for integrated English literacy and civics education, as 
     determined by calculating each State's share of a 10-year 
     average of the data of the Office of Immigration Statistics 
     of the Department of Homeland Security for immigrants 
     admitted for legal permanent residence for the 10 most recent 
     years; and
       (B) 35 percent to the States on the basis of whether the 
     State experienced growth, as measured by the average of the 3 
     most recent years for which the data of the Office of 
     Immigration Statistics of the Department of Homeland Security 
     for immigrants admitted for legal permanent residence are 
     available.
       (2) Minimum.--No State shall receive an allotment under 
     paragraph (1) in an amount that is less than $60,000.
       (c) Goal.--Each program that receives funding under this 
     section shall be designed to--
       (1) prepare adults who are English language learners for, 
     and place such adults in, unsubsidized employment in in-
     demand industries and occupations that lead to economic self-
     sufficiency; and
       (2) integrate with the local workforce development system 
     and its functions to carry out the activities of the program.

[[Page 10958]]

       (d) Report.--The Secretary shall prepare 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 and make available to the 
     public, a report on the activities carried out under this 
     section.

             TITLE III--AMENDMENTS TO THE WAGNER-PEYSER ACT

     SEC. 301. EMPLOYMENT SERVICE OFFICES.

       Section 1 of the Wagner-Peyser Act (29 U.S.C. 49) is 
     amended by inserting ``service'' before ``offices''.

     SEC. 302. DEFINITIONS.

       Section 2 of the Wagner-Peyser Act (29 U.S.C. 49a) is 
     amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(1) the terms `chief elected official', `institution of 
     higher education', `one-stop center', `one-stop partner', 
     `training services', `workforce development activity', and 
     `workplace learning advisor', have the meaning given the 
     terms in section 3 of the Workforce Innovation and 
     Opportunity Act;'';
       (2) in paragraph (2)--
       (A) by striking ``investment board'' each place it appears 
     and inserting ``development board''; and
       (B) by striking ``section 117 of the Workforce Investment 
     Act of 1998'' and inserting ``section 107 of the Workforce 
     Innovation and Opportunity Act'';
       (3) in paragraph (3)--
       (A) by striking ``134(c)'' and inserting ``121(e)''; and
       (B) by striking ``Workforce Investment Act of 1998'' and 
     inserting ``Workforce Innovation and Opportunity Act''; and
       (4) in paragraph (4), by striking ``and'' at the end;
       (5) in paragraph (5), by striking the period and inserting 
     ``; and''; and
       (6) by adding at the end the following:
       ``(6) the term `employment service office' means a local 
     office of a State agency; and
       ``(7) except in section 15, the term `State agency', used 
     without further description, means an agency designated or 
     authorized under section 4.''.

     SEC. 303. FEDERAL AND STATE EMPLOYMENT SERVICE OFFICES.

       (a) Coordination.--Section 3(a) of the Wagner-Peyser Act 
     (29 U.S.C. 49b(a)) is amended by striking ``services'' and 
     inserting ``service offices''.
       (b) Public Labor Exchange Services System.--Section 3(c) of 
     the Wagner-Peyser Act (29 U.S.C. 49b(c)) is amended--
       (1) in paragraph (2), by striking the semicolon and 
     inserting ``, and identify and disseminate information on 
     best practices for such system; and''; and
       (2) by adding at the end the following:
       ``(4) in coordination with the State agencies and the staff 
     of such agencies, assist in the planning and implementation 
     of activities to enhance the professional development and 
     career advancement opportunities of such staff, in order to 
     strengthen the provision of a broad range of career guidance 
     services, the identification of job openings (including 
     providing intensive outreach to small and medium-sized 
     employers and enhanced employer services), the provision of 
     technical assistance and training to other providers of 
     workforce development activities (including workplace 
     learning advisors) relating to counseling and employment-
     related services, and the development of new strategies for 
     coordinating counseling and technology.''.
       (c) One-stop Centers.--Section 3 of the Wagner-Peyser Act 
     (29 U.S.C. 49b) is amended by inserting after subsection (c) 
     the following:
       ``(d) In order to improve service delivery, avoid 
     duplication of services, and enhance coordination of 
     services, including location of staff to ensure access to 
     services under section 7(a) statewide in underserved areas, 
     employment service offices in each State shall be colocated 
     with one-stop centers.
       ``(e) The Secretary, in consultation with States, is 
     authorized to assist the States in the development of 
     national electronic tools that may be used to improve access 
     to workforce information for individuals through--
       ``(1) the one-stop delivery systems established as 
     described in section 121(e) of the Workforce Innovation and 
     Opportunity Act; and
       ``(2) such other delivery systems as the Secretary 
     determines to be appropriate.''.

     SEC. 304. ALLOTMENT OF SUMS.

       Section 6 of the Wagner-Peyser Act (29 U.S.C. 49e) is 
     amended--
       (1) in subsection (a), by striking ``amounts appropriated 
     pursuant to section 5'' and inserting ``funds appropriated 
     and (except for Guam) certified under section 5 and made 
     available for allotments under this section''; and
       (2) in subsection (b)(1)--
       (A) in the matter preceding subparagraph (A)--
       (i) by inserting before ``the Secretary'' the following 
     ``after making the allotments required by subsection (a),''; 
     and
       (ii) by striking ``sums'' and all that follows through 
     ``this Act'' and inserting ``funds described in subsection 
     (a)'';
       (B) in each of subparagraphs (A) and (B), by striking 
     ``sums'' and inserting ``remainder''; and
       (C) by adding at the end the following: ``For purposes of 
     this paragraph, the term `State' does not include Guam or the 
     Virgin Islands.''.

     SEC. 305. USE OF SUMS.

       (a) Improved Coordination.--Section 7(a)(1) of the Wagner-
     Peyser Act (29 U.S.C. 49f(a)(1)) is amended by inserting ``, 
     including unemployment insurance claimants,'' after 
     ``seekers''.
       (b) Resources for Unemployment Insurance Claimants.--
     Section 7(a)(3) of the Wagner-Peyser Act (29 U.S.C. 
     49f(a)(3)) is amended--
       (1) by striking ``and'' at the end of subparagraph (E);
       (2) in subparagraph (F)--
       (A) by inserting ``, including making eligibility 
     assessments,'' after ``system''; and
       (B) by striking the period at the end and inserting ``; 
     and''; and
       (3) by inserting after subparagraph (F) the following:
       ``(G) providing unemployment insurance claimants with 
     referrals to, and application assistance for, training and 
     education resources and programs, including Federal Pell 
     Grants under subpart 1 of part A of title IV of the Higher 
     Education Act of 1965 (20 U.S.C. 1070a et seq.), educational 
     assistance under chapter 30 of title 38, United States Code 
     (commonly referred to as the Montgomery GI Bill), and chapter 
     33 of that title (Post-9/11 Veterans Educational Assistance), 
     student assistance under title IV of the Higher Education Act 
     of 1965 (20 U.S.C. 1070 et seq.), State student higher 
     education assistance, and training and education programs 
     provided under titles I and II of the Workforce Innovation 
     and Opportunity Act, and title I of the Rehabilitation Act of 
     1973 (29 U.S.C. 720 et seq.).''.
       (c) State Activities.--Section 7(b) of the Wagner-Peyser 
     Act (29 U.S.C. 49f(b)) is amended--
       (1) in paragraph (1), by striking ``performance standards 
     established by the Secretary'' and inserting ``the 
     performance accountability measures that are based on 
     indicators described in section 116(b)(2)(A)(i) of the 
     Workforce Innovation and Opportunity Act'';
       (2) in paragraph (2), by inserting ``offices'' after 
     ``employment service''; and
       (3) in paragraph (3), by inserting ``, and models for 
     enhancing professional development and career advancement 
     opportunities of State agency staff, as described in section 
     3(c)(4)'' after ``subsection (a)''.
       (d) Providing Additional Funds.--Subsections (c)(2) and (d) 
     of section 7 of the Wagner-Peyser Act (29 U.S.C. 49f) are 
     amended by striking ``the Workforce Investment Act of 1998'' 
     and inserting ``the Workforce Innovation and Opportunity 
     Act''.
       (e) Conforming Amendment.--Section 7(e) of the Wagner-
     Peyser Act (29 U.S.C. 49f(e)) is amended by striking ``labor 
     employment statistics'' and inserting ``workforce and labor 
     market information''.

     SEC. 306. STATE PLAN.

       Section 8 of the Wagner-Peyser Act (29 U.S.C. 49g) is 
     amended to read as follows:
       ``Sec. 8.  Any State desiring to receive assistance under 
     section 6 shall prepare and submit to, and have approved by, 
     the Secretary and the Secretary of Education, a State plan in 
     accordance with section 102 or 103 of the Workforce 
     Innovation and Opportunity Act.''.

     SEC. 307. PERFORMANCE MEASURES.

       Section 13(a) of the Wagner-Peyser Act (29 U.S.C. 49l(a)) 
     is amended to read as follows:
       ``(a) The activities carried out pursuant to section 7 
     shall be subject to the performance accountability measures 
     that are based on indicators described in section 
     116(b)(2)(A)(i) of the Workforce Innovation and Opportunity 
     Act.''.

     SEC. 308. WORKFORCE AND LABOR MARKET INFORMATION SYSTEM.

       (a) Heading.--The section heading for section 15 of the 
     Wagner-Peyser Act (29 U.S.C. 49l-2) is amended by striking 
     ``employment statistics'' and inserting ``workforce and labor 
     market information system''.
       (b) Name of System.--Section 15(a)(1) of the Wagner-Peyser 
     Act (29 U.S.C. 49l-2(a)(1)) is amended by striking 
     ``employment statistics system of employment statistics'' and 
     inserting ``workforce and labor market information system''.
       (c) System Responsibilities.--Section 15(b) of the Wagner-
     Peyser Act (29 U.S.C. 49l-2(b)) is amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(1) In general.--
       ``(A) Structure.--The workforce and labor market 
     information system described in subsection (a) shall be 
     evaluated and improved by the Secretary, in consultation with 
     the Workforce Information Advisory Council established in 
     subsection (d).
       ``(B) Grants and responsibilities.--
       ``(i) In general.--The Secretary shall carry out the 
     provisions of this section in a timely manner, through grants 
     to or agreements with States.
       ``(ii) Distribution of funds.--Using amounts appropriated 
     under subsection (g), the Secretary shall provide funds 
     through those grants and agreements. In distributing the 
     funds (relating to workforce and labor market information 
     funding) for fiscal years 2015 through 2020, the Secretary 
     shall continue to distribute the funds to States in the

[[Page 10959]]

     manner in which the Secretary distributed funds to the States 
     under this section for fiscal years 2004 through 2008.''; and
       (2) by striking paragraph (2) and inserting the following:
       ``(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 
     the statistical and administrative data collected is 
     consistent with appropriate Bureau of Labor Statistics 
     standards and definitions, and that the information is 
     accessible and understandable to users of such data.
       ``(B) Actively seek the cooperation of heads 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) Solicit, receive, and evaluate the recommendations 
     from the Workforce Information Advisory Council established 
     in subsection (d) concerning the evaluation and improvement 
     of the workforce and labor market information system 
     described in subsection (a) and respond in writing to the 
     Council regarding the recommendations.
       ``(D) Eliminate gaps and duplication in statistical 
     undertakings.
       ``(E) Through the Bureau of Labor Statistics and the 
     Employment and Training Administration, and in collaboration 
     with 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).
       ``(F) Establish procedures for the system to ensure that--
       ``(i) such data and information are timely; and
       ``(ii) paperwork and reporting for the system are reduced 
     to a minimum.''.
       (d) Two-year Plan.--Section 15 of the Wagner-Peyser Act (29 
     U.S.C. 49l-2) is amended by striking subsection (c) and 
     inserting the following:
       ``(c) Two-year Plan.--The Secretary, acting through the 
     Commissioner of Labor Statistics and the Assistant Secretary 
     for Employment and Training, and in consultation with the 
     Workforce Information Advisory Council described in 
     subsection (d) and heads of other appropriate Federal 
     agencies, shall prepare a 2-year plan for the workforce and 
     labor market information system. The plan shall be developed 
     and implemented in a manner that takes into account the 
     activities described in State plans submitted by States under 
     section 102 or 103 of the Workforce Innovation and 
     Opportunity Act and shall be submitted 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. The plan shall include--
       ``(1) a description of how the Secretary will work with the 
     States to manage the nationwide workforce and labor market 
     information system described in subsection (a) and the 
     statewide workforce and labor market information systems that 
     comprise the nationwide system;
       ``(2) a description of the steps to be taken in the 
     following 2 years to carry out the duties described in 
     subsection (b)(2);
       ``(3) an evaluation of the performance of the system, with 
     particular attention to the improvements needed at the State 
     and local levels;
       ``(4) a description of the involvement of States in the 
     development of the plan, through consultation by the 
     Secretary with the Workforce Information Advisory Council in 
     accordance with subsection (d); and
       ``(5) a description of the written recommendations received 
     from the Workforce Information Advisory Council established 
     under subsection (d), and the extent to which those 
     recommendations were incorporated into the plan.''.
       (e) Workforce Information Advisory Council.--Section 15 of 
     the Wagner-Peyser Act (29 U.S.C. 49l-2) is amended by 
     striking subsection (d) and inserting the following:
       ``(d) Workforce Information Advisory Council.--
       ``(1) In general.--The Secretary, through the Commissioner 
     of Labor Statistics and the Assistant Secretary for 
     Employment and Training, shall formally consult at least 
     twice annually with the Workforce Information Advisory 
     Council established in accordance with paragraph (2). Such 
     consultations shall address the evaluation and improvement of 
     the nationwide workforce and labor market information system 
     described in subsection (a) and the statewide workforce and 
     labor market information systems that comprise the nationwide 
     system and how the Department of Labor and the States will 
     cooperate in the management of such systems. The Council 
     shall provide written recommendations to the Secretary 
     concerning the evaluation and improvement of the nationwide 
     system, including any recommendations regarding the 2-year 
     plan described in subsection (c).
       ``(2) Establishment of council.--
       ``(A) Establishment.--The Secretary shall establish an 
     advisory council that shall be known as the Workforce 
     Information Advisory Council (referred to in this section as 
     the `Council') to participate in the consultations and 
     provide the recommendations described in paragraph (1).
       ``(B) Membership.--The Secretary shall appoint the members 
     of the Council, which shall consist of--
       ``(i) 4 members who are representatives of lead State 
     agencies with responsibility for workforce investment 
     activities, or State agencies described in section 4, who 
     have been nominated by such agencies or by a national 
     organization that represents such agencies;
       ``(ii) 4 members who are representatives of the State 
     workforce and labor market information directors affiliated 
     with the State agencies that perform the duties described in 
     subsection (e)(2), who have been nominated by the directors;
       ``(iii) 1 member who is a representative of providers of 
     training services under section 122 of the Workforce 
     Innovation and Opportunity Act;
       ``(iv) 1 member who is a representative of economic 
     development entities;
       ``(v) 1 member who is a representative of businesses, who 
     has been nominated by national business organizations or 
     trade associations;
       ``(vi) 1 member who is a representative of labor 
     organizations, who has been nominated by a national labor 
     federation;
       ``(vii) 1 member who is a representative of local workforce 
     development boards, who has been nominated by a national 
     organization representing such boards; and
       ``(viii) 1 member who is a representative of research 
     entities that utilize workforce and labor market information.
       ``(C) Geographic diversity.--The Secretary shall ensure 
     that the membership of the Council is geographically diverse 
     and that no 2 of the members appointed under clauses (i), 
     (ii), and (vii) represent the same State.
       ``(D) Period of appointment; vacancies.--
       ``(i) In general.--Each member of the Council shall be 
     appointed for a term of 3 years, except that the initial 
     terms for members may be 1, 2, or 3 years in order to 
     establish a rotation in which one-third of the members are 
     selected each year. Any such member may be appointed for not 
     more than 2 consecutive terms.
       ``(ii) Vacancies.--Any member appointed to fill a vacancy 
     occurring before the expiration of the term for which the 
     member's predecessor was appointed shall be appointed only 
     for the remainder of that term. A member may serve after the 
     expiration of that member's term until a successor has taken 
     office.
       ``(E) Travel expenses.--The members of the Council shall 
     not receive compensation for the performance of services for 
     the Council, but shall be allowed travel expenses, including 
     per diem in lieu of subsistence, at rates authorized for 
     employees of agencies under subchapter I of chapter 57 of 
     title 5, United States Code, while away from their homes or 
     regular places of business in the performance of services for 
     the Council. Notwithstanding section 1342 of title 31, United 
     States Code, the Secretary may accept the voluntary and 
     uncompensated services of members of the Council.
       ``(F) Permanent council.--Section 14 of the Federal 
     Advisory Committee Act (5 U.S.C. App.) shall not apply to the 
     Council.''.
       (f) State Responsibilities.--Section 15(e) of the Wagner-
     Peyser Act (29 U.S.C. 49l-2(e)) is amended--
       (1) by striking ``employment statistics'' each place it 
     appears and inserting ``workforce and labor market 
     information'';
       (2) in paragraph (1)(A) by striking ``annual plan'' and 
     inserting ``plan described in subsection (c)'';
       (3) in paragraph (2)--
       (A) in subparagraph (G), by inserting ``and'' at the end;
       (B) by striking subparagraph (H);
       (C) in subparagraph (I), by striking ``section 136(f)(2) of 
     the Workforce Investment Act of 1998'' and inserting 
     ``section 116(i)(2) of the Workforce Innovation and 
     Opportunity Act''; and
       (D) by redesignating subparagraph (I) as subparagraph (H).
       (g) Authorization of Appropriations.--Section 15(g) of the 
     Wagner-Peyser Act (29 U.S.C. 49l-2(g)) is amended by striking 
     ``such sums as may be necessary for each of the fiscal years 
     1999 through 2004'' and inserting ``$60,153,000 for fiscal 
     year 2015, $64,799,000 for fiscal year 2016, $66,144,000 for 
     fiscal year 2017, $67,611,000 for fiscal year 2018, 
     $69,200,000 for fiscal year 2019, and $70,667,000 for fiscal 
     year 2020''.

         TITLE IV--AMENDMENTS TO THE REHABILITATION ACT OF 1973

                  Subtitle A--Introductory Provisions

     SEC. 401. REFERENCES.

       Except as otherwise specifically provided, whenever in this 
     title an amendment or repeal is expressed in terms of an 
     amendment to, or repeal of, a provision, the amendment or 
     repeal shall be considered to be made to a provision of the 
     Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.).

[[Page 10960]]



     SEC. 402. FINDINGS, PURPOSE, POLICY.

       (a) Findings.--Section 2(a) (29 U.S.C. 701(a)) is amended--
       (1) in paragraph (4), by striking ``workforce investment 
     systems under title I of the Workforce Investment Act of 
     1998'' and inserting ``workforce development systems defined 
     in section 3 of the Workforce Innovation and Opportunity 
     Act'';
       (2) in paragraph (5), by striking ``and'' at the end;
       (3) in paragraph (6), by striking the period and inserting 
     ``; and''; and
       (4) by adding at the end the following:
       ``(7)(A) a high proportion of students with disabilities is 
     leaving secondary education without being employed in 
     competitive integrated employment, or being enrolled in 
     postsecondary education; and
       ``(B) there is a substantial need to support such students 
     as they transition from school to postsecondary life.''.
       (b) Purpose.--Section 2(b) (29 U.S.C. 701(b)) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (A), by striking ``workforce investment 
     systems implemented in accordance with title I of the 
     Workforce Investment Act of 1998'' and inserting ``workforce 
     development systems defined in section 3 of the Workforce 
     Innovation and Opportunity Act''; and
       (B) at the end of subparagraph (F), by striking ``and'';
       (2) by redesignating paragraph (2) as paragraph (3);
       (3) by inserting after paragraph (1) the following:
       ``(2) to maximize opportunities for individuals with 
     disabilities, including individuals with significant 
     disabilities, for competitive integrated employment;'';
       (4) in paragraph (3), as redesignated by paragraph (2), by 
     striking the period at the end and inserting a semicolon; and
       (5) by adding at the end the following:
       ``(4) to increase employment opportunities and employment 
     outcomes for individuals with disabilities, including through 
     encouraging meaningful input by employers and vocational 
     rehabilitation service providers on successful and 
     prospective employment and placement strategies; and
       ``(5) to ensure, to the greatest extent possible, that 
     youth with disabilities and students with disabilities who 
     are transitioning from receipt of special education services 
     under the Individuals with Disabilities Education Act (20 
     U.S.C. 1400 et seq.) and receipt of services under section 
     504 of this Act have opportunities for postsecondary 
     success.''.

     SEC. 403. REHABILITATION SERVICES ADMINISTRATION.

       Section 3 (29 U.S.C. 702) is amended--
       (1) in subsection (a)--
       (A) in the first sentence, by inserting ``in the Department 
     of Education'' after ``Secretary'';
       (B) by striking the second sentence and inserting ``Such 
     Administration shall be the principal agency, and the 
     Commissioner shall be the principal officer, of the 
     Department for purposes of carrying out titles I, III, VI, 
     and chapter 2 of title VII.''; and
       (C) in the fourth and sixth sentences, by inserting ``of 
     Education'' after ``Secretary'' the first place it appears; 
     and
       (2) in subsection (b), by inserting ``of Education'' after 
     ``Secretary''.

     SEC. 404. DEFINITIONS.

       Section 7 (29 U.S.C. 705) is amended--
       (1) in paragraph (2)(B)--
       (A) in clause (iii), by striking ``and'' at the end;
       (B) in clause (iv), by striking the semicolon and inserting 
     ``; and''; and
       (C) by adding at the end the following:
       ``(v) to the maximum extent possible, relies on information 
     obtained from experiences in integrated employment settings 
     in the community, and other integrated community settings;'';
       (2) by striking paragraphs (3) and (4) and inserting the 
     following:
       ``(3) Assistive technology terms.--
       ``(A) Assistive technology.--The term `assistive 
     technology' has the meaning given such term in section 3 of 
     the Assistive Technology Act of 1998 (29 U.S.C. 3002).
       ``(B) Assistive technology device.--The term `assistive 
     technology device' has the meaning given such term in section 
     3 of the Assistive Technology Act of 1998, except that the 
     reference in such section to the term `individuals with 
     disabilities' shall be deemed to mean more than 1 individual 
     with a disability as defined in paragraph (20)(A)).
       ``(C) Assistive technology service.--The term `assistive 
     technology service' has the meaning given such term in 
     section 3 of the Assistive Technology Act of 1998, except 
     that the reference in such section--
       ``(i) to the term `individual with a disability' shall be 
     deemed to mean an individual with a disability, as defined in 
     paragraph (20)(A); and
       ``(ii) to the term `individuals with disabilities' shall be 
     deemed to mean more than 1 such individual.'';
       (3) by redesignating paragraph (5) as paragraph (4);
       (4) in paragraph (4), as redesignated by paragraph (3)--
       (A) by redesignating subparagraphs (O) through (Q) as 
     subparagraphs (P) through (R), respectively;
       (B) by inserting after subparagraph (N) the following:
       ``(O) customized employment;''; and
       (C) in subparagraph (R), as redesignated by subparagraph 
     (A) of this paragraph, by striking ``(P)'' and inserting 
     ``(Q)'';
       (5) by inserting before paragraph (6) the following:
       ``(5) Competitive integrated employment.--The term 
     `competitive integrated employment' means work that is 
     performed on a full-time or part-time basis (including self-
     employment)--
       ``(A) for which an individual--
       ``(i) is compensated at a rate that--

       ``(I)(aa) shall be not less than the higher of the rate 
     specified in section 6(a)(1) of the Fair Labor Standards Act 
     of 1938 (29 U.S.C. 206(a)(1)) or the rate specified in the 
     applicable State or local minimum wage law; and
       ``(bb) is not less than the customary rate paid by the 
     employer for the same or similar work performed by other 
     employees who are not individuals with disabilities, and who 
     are similarly situated in similar occupations by the same 
     employer and who have similar training, experience, and 
     skills; or
       ``(II) in the case of an individual who is self-employed, 
     yields an income that is comparable to the income received by 
     other individuals who are not individuals with disabilities, 
     and who are self-employed in similar occupations or on 
     similar tasks and who have similar training, experience, and 
     skills; and

       ``(ii) is eligible for the level of benefits provided to 
     other employees;
       ``(B) that is at a location where the employee interacts 
     with other persons who are not individuals with disabilities 
     (not including supervisory personnel or individuals who are 
     providing services to such employee) to the same extent that 
     individuals who are not individuals with disabilities and who 
     are in comparable positions interact with other persons; and
       ``(C) that, as appropriate, presents opportunities for 
     advancement that are similar to those for other employees who 
     are not individuals with disabilities and who have similar 
     positions.'';
       (6) in paragraph (6)(B), by striking ``includes'' and all 
     that follows through ``fees'' and inserting ``includes 
     architects' fees'';
       (7) by inserting after paragraph (6) the following:
       ``(7) Customized employment.--The term `customized 
     employment' means competitive integrated employment, for an 
     individual with a significant disability, that is based on an 
     individualized determination of the strengths, needs, and 
     interests of the individual with a significant disability, is 
     designed to meet the specific abilities of the individual 
     with a significant disability and the business needs of the 
     employer, and is carried out through flexible strategies, 
     such as--
       ``(A) job exploration by the individual;
       ``(B) working with an employer to facilitate placement, 
     including--
       ``(i) customizing a job description based on current 
     employer needs or on previously unidentified and unmet 
     employer needs;
       ``(ii) developing a set of job duties, a work schedule and 
     job arrangement, and specifics of supervision (including 
     performance evaluation and review), and determining a job 
     location;
       ``(iii) representation by a professional chosen by the 
     individual, or self-representation of the individual, in 
     working with an employer to facilitate placement; and
       ``(iv) providing services and supports at the job 
     location.'';
       (8) in paragraph (11)--
       (A) in subparagraph (C)--
       (i) by inserting ``of Education'' after ``Secretary''; and
       (ii) by inserting ``customized employment,'' before ``self-
     employment,'';
       (9) in paragraph (12), by inserting ``of Education'' after 
     ``Secretary'' each place it appears;
       (10) in paragraph (14)(C), by inserting ``of Education'' 
     after ``Secretary'';
       (11) in paragraph (17)--
       (A) in subparagraph (C), by striking ``and'' at the end;
       (B) in subparagraph (D), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(E) services that--
       ``(i) facilitate the transition of individuals with 
     significant disabilities from nursing homes and other 
     institutions to home and community-based residences, with the 
     requisite supports and services;
       ``(ii) provide assistance to individuals with significant 
     disabilities who are at risk of entering institutions so that 
     the individuals may remain in the community; and
       ``(iii) facilitate the transition of youth who are 
     individuals with significant disabilities, who were eligible 
     for individualized education programs under section 614(d) of 
     the Individuals with Disabilities Education Act (20 U.S.C. 
     1414(d)), and who have completed their secondary education or 
     otherwise left school, to postsecondary life.'';
       (12) in paragraph (18), by striking ``term'' and all that 
     follows through ``includes--'' and inserting ``term 
     `independent living services' includes--'';
       (13) in paragraph (19)--
       (A) in subparagraph (A), by inserting before the period the 
     following: ``and includes a

[[Page 10961]]

     Native and a descendant of a Native, as such terms are 
     defined in subsections (b) and (r) of section 3 of the Alaska 
     Native Claims Settlement Act (43 U.S.C. 1602)''; and
       (B) in subparagraph (B), by inserting before the period the 
     following: ``and a tribal organization (as defined in section 
     4(l) of the Indian Self-Determination and Education 
     Assistance Act (25 U.S.C. 450b(l)))'';
       (14) in paragraph (23), by striking ``section 101'' and 
     inserting ``section 102'';
       (15) by striking paragraph (25) and inserting the 
     following:
       ``(25) Local workforce development board.--The term `local 
     workforce development board' means a local board, as defined 
     in section 3 of the Workforce Innovation and Opportunity 
     Act.'';
       (16) by striking paragraph (37);
       (17) by redesignating paragraphs (29) through (39) as 
     paragraphs (31) through (36), and (38) through (41), 
     respectively;
       (18) by inserting after paragraph (28) the following:
       ``(30) Pre-employment transition services.--The term `pre-
     employment transition services' means services provided in 
     accordance with section 113.'';
       (19) by striking paragraph (33), as redesignated by 
     paragraph (17), and inserting the following:
       ``(33) Secretary.--Unless where the context otherwise 
     requires, the term `Secretary'--
       ``(A) used in title I, III, IV, V, VI, or chapter 2 of 
     title VII, means the Secretary of Education; and
       ``(B) used in title II or chapter 1 of title VII, means the 
     Secretary of Health and Human Services.'';
       (20) by striking paragraphs (35) and (36), as redesignated 
     by paragraph (17), and inserting the following:
       ``(35) State workforce development board.--The term `State 
     workforce development board' means a State board, as defined 
     in section 3 of the Workforce Innovation and Opportunity Act.
       ``(36) Statewide workforce development system.--The term 
     `statewide workforce development system' means a workforce 
     development system, as defined in section 3 of the Workforce 
     Innovation and Opportunity Act.'';
       (21) by inserting after that paragraph (36) the following:
       ``(37) Student with a disability.--
       ``(A) In general.--The term `student with a disability' 
     means an individual with a disability who--
       ``(i)(I)(aa) is not younger than the earliest age for the 
     provision of transition services under section 
     614(d)(1)(A)(i)(VIII) of the Individuals with Disabilities 
     Education Act (20 U.S.C. 1414(d)(1)(A)(i)(VIII)); or
       ``(bb) if the State involved elects to use a lower minimum 
     age for receipt of pre-employment transition services under 
     this Act, is not younger than that minimum age; and
       ``(II)(aa) is not older than 21 years of age; or
       ``(bb) if the State law for the State provides for a higher 
     maximum age for receipt of services under the Individuals 
     with Disabilities Education Act (20 U.S.C. 1400 et seq.), is 
     not older than that maximum age; and
       ``(ii)(I) is eligible for, and receiving, special education 
     or related services under part B of the Individuals with 
     Disabilities Education Act (20 U.S.C. 1411 et seq.); or
       ``(II) is an individual with a disability, for purposes of 
     section 504.
       ``(B) Students with disabilities.--The term `students with 
     disabilities' means more than 1 student with a disability.'';
       (22) by striking paragraphs (38) and (39), as redesignated 
     by paragraph (17), and inserting the following:
       ``(38) Supported employment.--The term `supported 
     employment' means competitive integrated employment, 
     including customized employment, or employment in an 
     integrated work setting in which individuals are working on a 
     short-term basis toward competitive integrated employment, 
     that is individualized and customized consistent with the 
     strengths, abilities, interests, and informed choice of the 
     individuals involved, for individuals with the most 
     significant disabilities--
       ``(A)(i) for whom competitive integrated employment has not 
     historically occurred; or
       ``(ii) for whom competitive integrated employment has been 
     interrupted or intermittent as a result of a significant 
     disability; and
       ``(B) who, because of the nature and severity of their 
     disability, need intensive supported employment services and 
     extended services after the transition described in paragraph 
     (13)(C), in order to perform the work involved.
       ``(39) Supported employment services.--The term `supported 
     employment services' means ongoing support services, 
     including customized employment, needed to support and 
     maintain an individual with a most significant disability in 
     supported employment, that--
       ``(A) are provided singly or in combination and are 
     organized and made available in such a way as to assist an 
     eligible individual to achieve competitive integrated 
     employment;
       ``(B) are based on a determination of the needs of an 
     eligible individual, as specified in an individualized plan 
     for employment; and
       ``(C) are provided by the designated State unit for a 
     period of not more than 24 months, except that period may be 
     extended, if necessary, in order to achieve the employment 
     outcome identified in the individualized plan for 
     employment.'';
       (23) in paragraph (41), as redesignated by paragraph (17), 
     by striking ``as defined in section 101 of the Workforce 
     Investment Act of 1998'' and inserting ``as defined in 
     section 3 of the Workforce Innovation and Opportunity Act''; 
     and
       (24) by inserting after paragraph (41), as redesignated by 
     paragraph (17), the following:
       ``(42) Youth with a disability.--
       ``(A) In general.--The term `youth with a disability' means 
     an individual with a disability who--
       ``(i) is not younger than 14 years of age; and
       ``(ii) is not older than 24 years of age.
       ``(B) Youth with disabilities.--The term `youth with 
     disabilities' means more than 1 youth with a disability.''.

     SEC. 405. ADMINISTRATION OF THE ACT.

       (a)  Promulgation.--Section 8(a)(2) (29 U.S.C. 706(a)(2)) 
     is amended by inserting ``of Education'' after ``Secretary''.
       (b) Privacy.--Section 11 (29 U.S.C. 708) is amended--
       (1) by inserting ``(a)'' before ``The provisions''; and
       (2) by adding at the end the following:
       ``(b) Section 501 of the Workforce Innovation and 
     Opportunity Act shall apply, as specified in that section, to 
     amendments to this Act that were made by the Workforce 
     Innovation and Opportunity Act.''.
       (c) Administration.--Section 12 (29 U.S.C. 709) is 
     amended--
       (1) in subsection (a)--
       (A) in paragraph (1)--
       (i) by striking ``(1)'' and inserting ``(1)(A)''; and
       (ii) by adding at the end the following:
       ``(B) provide technical assistance to the designated State 
     units on developing successful partnerships with local and 
     multi-State businesses in an effort to increase the 
     employment of individuals with disabilities;
       ``(C) provide technical assistance to providers and 
     organizations on developing self-employment opportunities and 
     outcomes for individuals with disabilities; and
       ``(D) provide technical assistance to entities carrying out 
     community rehabilitation programs to build their internal 
     capacity to provide individualized services and supports 
     leading to competitive integrated employment, and to 
     transition individuals with disabilities away from 
     nonintegrated settings;''; and
       (B) in paragraph (2), by striking ``, centers for 
     independent living,'';
       (2) in subsection (c), by striking ``Commissioner'' the 
     first place it appears and inserting ``Secretary of 
     Education'';
       (3) in subsection (d), by inserting ``of Education'' after 
     ``Secretary'';
       (4) in subsection (e)--
       (A) by striking ``Rehabilitation Act Amendments of 1998'' 
     each place it appears and inserting ``Workforce Innovation 
     and Opportunity Act''; and
       (B) by inserting ``of Education'' after ``Secretary'';
       (5) in subsection (f), by inserting ``of Education'' after 
     ``Secretary'';
       (6)(A) in subsection (c), by striking ``(c)'' and inserting 
     ``(c)(1)'';
       (B) in subsection (d), by striking ``(d)'' and inserting 
     ``(d)(1)'';
       (C) in subsection (e), by striking ``(e)'' and inserting 
     ``(2)'';
       (D) in subsection (f), by striking ``(f)'' and inserting 
     ``(2)''; and
       (E) by moving paragraph (2) (as redesignated by 
     subparagraph (D)) to the end of subsection (c); and
       (7) by inserting after subsection (d) the following:
       ``(e)(1) The Administrator of the Administration for 
     Community Living (referred to in this subsection as the 
     `Administrator') may carry out the authorities and shall 
     carry out the responsibilities of the Commissioner described 
     in paragraphs (1)(A) and (2) through (4) of subsection (a), 
     and subsection (b), except that, for purposes of applying 
     subsections (a) and (b), a reference in those subsections--
       ``(A) to facilitating meaningful and effective 
     participation shall be considered to be a reference to 
     facilitating meaningful and effective collaboration with 
     independent living programs, and promoting a philosophy of 
     independent living for individuals with disabilities in 
     community activities; and
       ``(B) to training for personnel shall be considered to be a 
     reference to training for the personnel of centers for 
     independent living and Statewide Independent Living Councils.
       ``(2) The Secretary of Health and Human Services may carry 
     out the authorities and shall carry out the responsibilities 
     of the Secretary of Education described in subsections (c) 
     and (d).
       ``(f)(1) In subsections (a) through (d), a reference to 
     `this Act' means a provision of this Act that the Secretary 
     of Education has authority to carry out; and
       ``(2) In subsection (e), for purposes of applying 
     subsections (a) through (d), a reference in those subsections 
     to `this Act'

[[Page 10962]]

     means a provision of this Act that the Secretary of Health 
     and Human Services has authority to carry out.''.

     SEC. 406. REPORTS.

       Section 13 (29 U.S.C. 710) is amended--
       (1) in section (c)--
       (A) by striking ``(c)'' and inserting ``(c)(1)''; and
       (B) in the second sentence, by striking ``section 136(d) of 
     the Workforce Investment Act of 1998'' and inserting 
     ``section 116(d)(2) of the Workforce Innovation and 
     Opportunity Act''; and
       (2) by adding at the end the following:
       ``(d) The Commissioner shall ensure that the report 
     described in this section is made publicly available in a 
     timely manner, including through electronic means, in order 
     to inform the public about the administration and performance 
     of programs under this Act.''.

     SEC. 407. EVALUATION AND INFORMATION.

       (a) Evaluation.--Section 14 (29 U.S.C. 711) is amended--
       (1) by inserting ``of Education'' after ``Secretary'' each 
     place it appears;
       (2) in subsection (f)(2), by inserting ``competitive'' 
     before ``integrated employment'';
       (3)(A) in subsection (b), by striking ``(b)'' and inserting 
     ``(b)(1)'';
       (B) in subsection (c), by striking ``(c)'' and inserting 
     ``(2)'';
       (C) in subsection (d), by striking ``(d)'' and inserting 
     ``(3)''; and
       (D) by redesignating subsections (e) and (f) as subsections 
     (c) and (d), respectively;
       (4) by inserting after subsection (d), as redesignated by 
     paragraph (3)(D), the following:
       ``(e)(1) The Secretary of Health and Human Services may 
     carry out the authorities and shall carry out the 
     responsibilities of the Secretary of Education described in 
     subsections (a) and (b).
       ``(2) The Administrator of the Administration for Community 
     Living may carry out the authorities and shall carry out the 
     responsibilities of the Commissioner described in subsections 
     (a) and (d)(1), except that, for purposes of applying those 
     subsections, a reference in those subsections to exemplary 
     practices shall be considered to be a reference to exemplary 
     practices concerning independent living services and centers 
     for independent living.
       ``(f)(1) In subsections (a) through (d), a reference to 
     `this Act' means a provision of this Act that the Secretary 
     of Education has authority to carry out; and
       ``(2) In subsection (e), for purposes of applying 
     subsections (a), (b), and (d), a reference in those 
     subsections to `this Act' means a provision of this Act that 
     the Secretary of Health and Human Services has authority to 
     carry out.''.
       (b) Information.--Section 15 (29 U.S.C. 712) is amended--
       (1) in subsection (a)--
       (A) by inserting ``of Education'' after ``Secretary'' each 
     place it appears; and
       (B) in paragraph (1), by striking ``State workforce 
     investment boards'' and inserting ``State workforce 
     development boards''; and
       (2) in subsection (b), by striking ``Secretary'' and 
     inserting ``Secretary of Education''.

     SEC. 408. CARRYOVER.

       Section 19(a)(1) (29 U.S.C. 716(a)(1)) is amended by 
     striking ``part B of title VI'' and inserting ``title VI''.

     SEC. 409. TRADITIONALLY UNDERSERVED POPULATIONS.

       Section 21 (29 U.S.C. 718) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1)--
       (i) in the first sentence, by striking ``racial'' and 
     inserting ``demographic'';
       (ii) in the second sentence--

       (I) by striking ``rate of increase'' the first place it 
     appears and inserting ``percentage increase from 2000 to 
     2010'';
       (II) by striking ``is 3.2'' and inserting ``was 9.7'';
       (III) by striking ``rate of increase'' and inserting 
     ``percentage increase'';
       (IV) by striking ``is much'' and inserting ``was much'';
       (V) by striking ``38.6'' and inserting ``43.0'';
       (VI) by striking ``14.6'' and inserting ``12.3'';
       (VII) by striking ``40.1'' and inserting ``43.2''; and
       (VIII) by striking ``and other ethnic groups''; and

       (iii) by striking the last sentence; and
       (B) in paragraph (2), by striking the second and third 
     sentences and inserting the following: ``In 2011--
       ``(A) among Americans ages 16 through 64, the rate of 
     disability was 12.1 percent;
       ``(B) among African-Americans in that age range, the 
     disability rate was more than twice as high, at 27.1 percent; 
     and
       ``(C) for American Indians and Alaska Natives in the same 
     age range, the disability rate was also more than twice as 
     high, at 27.0 percent.'';
       (2) in subsection (b)(1), by striking ``National Institute 
     on Disability and Rehabilitation Research'' and inserting 
     ``National Institute on Disability, Independent Living, and 
     Rehabilitation Research''; and
       (3) in subsection (c), by striking ``Director'' and 
     inserting ``Director of the National Institute on Disability, 
     Independent Living, and Rehabilitation Research''.

             Subtitle B--Vocational Rehabilitation Services

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

       (a) Findings; Purpose; Policy.--Section 100(a) (29 U.S.C. 
     720(a)) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (C), by striking ``integrated'' and 
     inserting ``competitive integrated employment'';
       (B) in subparagraph (D)(iii), by striking ``medicare and 
     medicaid'' and inserting ``Medicare and Medicaid'';
       (C) in subparagraph (F), by striking ``investment'' and 
     inserting ``development''; and
       (D) in subparagraph (G)--
       (i) by striking ``workforce investment systems'' and 
     inserting ``workforce development systems''; and
       (ii) by striking ``workforce investment activities'' and 
     inserting ``workforce development activities'';
       (2) in paragraph (2)--
       (A) in subparagraph (A), by striking ``workforce investment 
     system'' and inserting ``workforce development system''; and
       (B) in subparagraph (B), by striking ``and informed 
     choice,'' and inserting ``informed choice, and economic self-
     sufficiency,''; and
       (3) in paragraph (3)--
       (A) in subparagraph (B), by striking ``gainful employment 
     in integrated settings'' and inserting ``competitive 
     integrated employment''; and
       (B) in subparagraph (E), by inserting ``should'' before 
     ``facilitate''.
       (b) Authorization of Appropriations.--Section 100(b)(1) (29 
     U.S.C. 720(b)(1)) is amended by striking ``such sums as may 
     be necessary for fiscal years 1999 through 2003'' and 
     inserting ``$3,302,053,000 for each of the fiscal years 2015 
     through 2020''.

     SEC. 412. STATE PLANS.

       (a) Plan Requirements.--Section 101(a) (29 U.S.C. 721(a)) 
     is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (A), by striking ``to participate'' and 
     all that follows and inserting ``to receive funds under this 
     title for a fiscal year, a State shall submit, and have 
     approved by the Secretary and the Secretary of Labor, a 
     unified State plan in accordance with section 102, or a 
     combined State plan in accordance with section 103, of the 
     Workforce Innovation and Opportunity Act. The unified or 
     combined State plan shall include, in the portion of the plan 
     described in section 102(b)(2)(D) of such Act (referred to in 
     this subsection as the `vocational rehabilitation services 
     portion'), the provisions of a State plan for vocational 
     rehabilitation services, described in this subsection.''; and
       (B) in subparagraph (B)--
       (i) by striking ``in the State plan for vocational 
     rehabilitation services,'' and inserting ``as part of the 
     vocational rehabilitation services portion of the unified or 
     combined State plan submitted in accordance with subparagraph 
     (A),''; and
       (ii) by striking ``Rehabilitation Act Amendments of 1998'' 
     and inserting ``Workforce Innovation and Opportunity Act''; 
     and
       (C) in subparagraph (C)--
       (i) by striking ``The State plan shall remain in effect 
     subject to the submission of such modifications'' and 
     inserting ``The vocational rehabilitation services portion of 
     the unified or combined State plan submitted in accordance 
     with subparagraph (A) shall remain in effect until the State 
     submits and receives approval of a new State plan in 
     accordance with subparagraph (A), or until the submission of 
     such modifications''; and
       (ii) by striking ``, until the State submits and receives 
     approval of a new State plan'';
       (2) in paragraph (2)--
       (A) in subparagraph (A), by striking ``The State plan'' and 
     inserting ``The State plan for vocational rehabilitation 
     services''; and
       (B) in subparagraph (B)(ii)--
       (i) in subclause (II), by inserting ``who is responsible 
     for the day-to-day operation of the vocational rehabilitation 
     program'' before the semicolon;
       (ii) in subclause (III), by striking ``and'' at the end;
       (iii) in subclause (IV), by striking the period and 
     inserting ``; and''; and
       (iv) by adding at the end the following:

       ``(V) has the sole authority and responsibility within the 
     designated State agency described in subparagraph (A) to 
     expend funds made available under this title in a manner that 
     is consistent with the purposes of this title.'';

       (3) in paragraph (5)--
       (A) in subparagraph (C), by striking ``and'' at the end;
       (B) by redesignating subparagraph (D) as subparagraph (E); 
     and
       (C) by inserting after subparagraph (C) the following:
       ``(D) notwithstanding subparagraph (C), permit the State, 
     in its discretion, to elect to serve eligible individuals 
     (whether or not receiving vocational rehabilitation services) 
     who require specific services or equipment to maintain 
     employment; and'';
       (4) in paragraph (7)--
       (A) in subparagraph (A)(v)--
       (i) in subclause (I), after ``rehabilitation technology'' 
     insert the following: ``, including training implemented in 
     coordination with entities carrying out State programs under 
     section 4 of the Assistive Technology Act of 1998 (29 U.S.C. 
     3003)''; and

[[Page 10963]]

       (ii) in subclause (II), by striking ``Rehabilitation Act 
     Amendments of 1998'' and inserting ``Workforce Innovation and 
     Opportunity Act''; and
       (B) in subparagraph (B), by striking clause (ii) and 
     inserting the following:
       ``(ii) the establishment and maintenance of education and 
     experience requirements, to ensure that the personnel have a 
     21st century understanding of the evolving labor force and 
     the needs of individuals with disabilities, including 
     requirements for--

       ``(I)(aa) attainment of a baccalaureate degree in a field 
     of study reasonably related to vocational rehabilitation, to 
     indicate a level of competency and skill demonstrating basic 
     preparation in a field of study such as vocational 
     rehabilitation counseling, social work, psychology, 
     disability studies, business administration, human resources, 
     special education, supported employment, customized 
     employment, economics, or another field that reasonably 
     prepares individuals to work with consumers and employers; 
     and
       ``(bb) demonstrated paid or unpaid experience, for not less 
     than 1 year, consisting of--

       ``(AA) direct work with individuals with disabilities in a 
     setting such as an independent living center;
       ``(BB) direct service or advocacy activities that provide 
     such individual with experience and skills in working with 
     individuals with disabilities; or
       ``(CC) direct experience as an employer, as a small 
     business owner or operator, or in self-employment, or other 
     experience in human resources, recruitment, or experience in 
     supervising employees, training, or other activities that 
     provide experience in competitive integrated employment 
     environments; or

       ``(II) attainment of a master's or doctoral degree in a 
     field of study such as vocational rehabilitation counseling, 
     law, social work, psychology, disability studies, business 
     administration, human resources, special education, 
     management, public administration, or another field that 
     reasonably provides competence in the employment sector, in a 
     disability field, or in both business-related and 
     rehabilitation-related fields; and'';

       (5) in paragraph (8)--
       (A) in subparagraph (A)(i)--
       (i) by inserting ``an accommodation or auxiliary aid or 
     service or'' after ``prior to providing''; and
       (ii) by striking ``(5)(D)'' and inserting ``(5)(E)'';
       (B) in subparagraph (B)--
       (i) in the matter preceding clause (i)--

       (I) by striking ``medicaid'' and inserting ``Medicaid'';
       (II) by striking ``workforce investment system'' and 
     inserting ``workforce development system'';
       (III) by striking ``(5)(D)'' and inserting ``(5)(E)'';
       (IV) by inserting ``and, if appropriate, accommodations or 
     auxiliary aids and services,'' before ``that are included''; 
     and
       (V) by striking ``provision of such vocational 
     rehabilitation services'' and inserting ``provision of such 
     vocational rehabilitation services (including, if 
     appropriate, accommodations or auxiliary aids and 
     services)''; and

       (ii) in clause (iv)--

       (I) by striking ``(5)(D)'' and inserting ``(5)(E)''; and
       (II) by inserting ``, and accommodations or auxiliary aids 
     and services'' before the period; and

       (C) in subparagraph (C)(i), by striking ``(5)(D)'' and 
     inserting ``(5)(E)'';
       (6) in paragraph (10)--
       (A) in subparagraph (B), by striking ``annual'' and all 
     that follows through ``of 1998'' and inserting ``annual 
     reporting of information, on eligible individuals receiving 
     the services, that is necessary to assess the State's 
     performance on the standards and indicators described in 
     section 106(a)'';
       (B) in subparagraph (C)--
       (i) in the matter preceding clause (i), by inserting ``, 
     from each State,'' after ``additional data'';
       (ii) by striking clause (i) and inserting:
       ``(i) the number of applicants and the number of 
     individuals determined to be eligible or ineligible for the 
     program carried out under this title, including the number of 
     individuals determined to be ineligible (disaggregated by 
     type of disability and age);'';
       (iii) in clause (ii)--

       (I) in subclause (I), by striking ``(5)(D)'' and inserting 
     ``(5)(E)'';
       (II) in subclause (II), by striking ``and'' at the end; and
       (III) by adding at the end the following:
       ``(IV) the number of individuals with open cases 
     (disaggregated by those who are receiving training and those 
     who are in postsecondary education), and the type of services 
     the individuals are receiving (including supported 
     employment);
       ``(V) the number of students with disabilities who are 
     receiving pre-employment transition services under this 
     title: and
       ``(VI) the number of individuals referred to State 
     vocational rehabilitation programs by one-stop operators (as 
     defined in section 3 of the Workforce Innovation and 
     Opportunity Act), and the number of individuals referred to 
     such one-stop operators by State vocational rehabilitation 
     programs;''; and

       (iv) in clause (iv)(I), by inserting before the semicolon 
     the following: ``and, for those who achieved employment 
     outcomes, the average length of time to obtain employment'';
       (C) in subparagraph (D)(i), by striking ``title I of the 
     Workforce Investment Act of 1998'' and inserting ``title I of 
     the Workforce Innovation and Opportunity Act'';
       (D) in subparagraph (E)(ii), by striking ``of the State'' 
     and all that follows and inserting ``of the State in meeting 
     the standards and indicators established pursuant to section 
     106.''; and
       (E) by adding at the end the following:
       ``(G) Rules for reporting of data.--The disaggregation of 
     data under this Act shall not be required within a category 
     if the number of individuals in a category is insufficient to 
     yield statistically reliable information, or if the results 
     would reveal personally identifiable information about an 
     individual.
       ``(H) Comprehensive report.--The State plan shall specify 
     that the Commissioner will provide an annual comprehensive 
     report that includes the reports and data required under this 
     section, as well as a summary of the reports and data, for 
     each fiscal year. The Commissioner shall submit the report to 
     the Committee on Education and the Workforce of the House of 
     Representatives, the Committee on Appropriations of the House 
     of Representatives, the Committee on Health, Education, 
     Labor, and Pensions of the Senate, and the Committee on 
     Appropriations of the Senate, not later than 90 days after 
     the end of the fiscal year involved.'';
       (7) in paragraph (11)--
       (A) in subparagraph (A)--
       (i) in the subparagraph header, by striking ``workforce 
     investment systems'' and inserting ``workforce development 
     systems'';
       (ii) in the matter preceding clause (i), by striking 
     ``workforce investment system'' and inserting ``workforce 
     development system'';
       (iii) in clause (i)(II)--

       (I) by striking ``investment'' and inserting 
     ``development''; and
       (II) by inserting ``(including programmatic accessibility 
     and physical accessibility)'' after ``program 
     accessibility'';

       (iv) in clause (ii), by striking ``workforce investment 
     system'' and inserting ``workforce development system''; and
       (v) in clause (v), by striking ``workforce investment 
     system'' and inserting ``workforce development system'';
       (B) in subparagraph (B), by striking ``workforce investment 
     system'' and inserting ``workforce development system'';
       (C) in subparagraph (C)--
       (i) by inserting ``the State programs carried out under 
     section 4 of the Assistive Technology Act of 1998 (29 U.S.C. 
     3003),'' after ``including'';
       (ii) by inserting ``, noneducational agencies serving out-
     of-school youth,'' after ``Agriculture''; and
       (iii) by striking ``such agencies and programs'' and 
     inserting ``such Federal, State, and local agencies and 
     programs''; and
       (iv) by striking ``workforce investment system'' and 
     inserting ``workforce development system'';
       (D) in subparagraph (D)--
       (i) in the matter preceding clause (i), by inserting ``, 
     including pre-employment transition services,'' before 
     ``under this title'';
       (ii) in clause (i), by inserting ``, which may be provided 
     using alternative means for meeting participation (such as 
     video conferences and conference calls),'' after 
     ``consultation and technical assistance''; and
       (iii) in clause (ii), by striking ``completion'' and 
     inserting ``implementation'';
       (E) by redesignating subparagraphs (E) and (F) as 
     subparagraphs (F) and (H), respectively;
       (F) by inserting after subparagraph (D) the following:
       ``(E) Coordination with employers.--The State plan shall 
     describe how the designated State unit will work with 
     employers to identify competitive integrated employment 
     opportunities and career exploration opportunities, in order 
     to facilitate the provision of--
       ``(i) vocational rehabilitation services; and
       ``(ii) transition services for youth with disabilities and 
     students with disabilities, such as pre-employment transition 
     services.'';
       (G) in subparagraph (F), as redesignated by subparagraph 
     (E) of this paragraph--
       (i) by inserting ``chapter 1 of'' after ``part C of''; and
       (ii) by inserting ``, as appropriate'' before the period;
       (H) by inserting after subparagraph (F), as redesignated by 
     subparagraph (E) of this paragraph, the following:
       ``(G) Cooperative agreement regarding individuals eligible 
     for home and community-based waiver programs.--The State plan 
     shall include an assurance that the designated State unit has 
     entered into a formal cooperative agreement with the State 
     agency responsible for administering the State Medicaid plan 
     under title XIX of the Social Security Act (42 U.S.C. 1396 et 
     seq.) and the State agency with primary responsibility for 
     providing services and supports for individuals with 
     intellectual disabilities and individuals with developmental 
     disabilities, with respect to the delivery of vocational 
     rehabilitation services, including extended services, for 
     individuals with the most significant disabilities who have 
     been determined

[[Page 10964]]

     to be eligible for home and community-based services under a 
     Medicaid waiver, Medicaid State plan amendment, or other 
     authority related to a State Medicaid program.'';
       (I) in subparagraph (H), as redesignated by subparagraph 
     (E) of this paragraph--
       (i) in clause (ii)--

       (I) by inserting ``on or'' before ``near''; and
       (II) by striking ``and'' at the end;

       (ii) by redesignating clause (iii) as clause (iv); and
       (iii) by inserting after clause (ii) the following:
       ``(iii) strategies for the provision of transition 
     planning, by personnel of the designated State unit, the 
     State educational agency, and the recipient of funds under 
     part C, that will facilitate the development and approval of 
     the individualized plans for employment under section 102; 
     and''; and
       (J) by adding at the end the following:
       ``(I) Coordination with assistive technology programs.--The 
     State plan shall include an assurance that the designated 
     State unit, and the lead agency and implementing entity (if 
     any) designated by the Governor of the State under section 4 
     of the Assistive Technology Act of 1998 (29 U.S.C. 3003), 
     have developed working relationships and will enter into 
     agreements for the coordination of their activities, 
     including the referral of individuals with disabilities to 
     programs and activities described in that section.
       ``(J) Coordination with ticket to work and self-sufficiency 
     program.--The State plan shall include an assurance that the 
     designated State unit will coordinate activities with any 
     other State agency that is functioning as an employment 
     network under the Ticket to Work and Self-Sufficiency Program 
     established under section 1148 of the Social Security Act (42 
     U.S.C. 1320b-19).
       ``(K) Interagency cooperation.--The State plan shall 
     describe how the designated State agency or agencies (if more 
     than 1 agency is designated under paragraph (2)(A)) will 
     collaborate with the State agency responsible for 
     administering the State Medicaid plan under title XIX of the 
     Social Security Act (42 U.S.C. 1396 et seq.), the State 
     agency responsible for providing services for individuals 
     with developmental disabilities, and the State agency 
     responsible for providing mental health services, to develop 
     opportunities for community-based employment in integrated 
     settings, to the greatest extent practicable.'';
       (8) in paragraph (14)--
       (A) in the paragraph header, by striking ``Annual'' and 
     inserting ``Semiannual'';
       (B) in subparagraph (A)--
       (i) by striking ``an annual'' and inserting ``a 
     semiannual'';
       (ii) by striking ``has achieved an employment outcome'' and 
     inserting ``is employed'';
       (iii) by striking ``achievement of the outcome'' and all 
     that follows through ``representative)'' and inserting 
     ``beginning of such employment, and annually thereafter'';
       (iv) by striking ``to competitive'' and all that follows 
     and inserting the following: ``to competitive integrated 
     employment or training for competitive integrated 
     employment;'';
       (C) in subparagraph (B), by striking ``and'' at the end;
       (D) in subparagraph (C), by striking ``the individuals 
     described'' and all that follows and inserting ``individuals 
     described in subparagraph (A) in attaining competitive 
     integrated employment; and''; and
       (E) by adding at the end the following:
       ``(D) an assurance that the State will report the 
     information generated under subparagraphs (A), (B), and (C), 
     for each of the individuals, to the Administrator of the Wage 
     and Hour Division of the Department of Labor for each fiscal 
     year, not later than 60 days after the end of the fiscal 
     year.'';
       (9) 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)--

       (aa) by striking ``workforce investment system'' and 
     inserting ``workforce development system''; and
       (bb) by adding ``and'' at the end; and

       (III) by adding at the end the following:
       ``(IV) youth with disabilities, and students with 
     disabilities, including their need for pre-employment 
     transition services or other transition services;'';

       (ii) by redesignating clauses (ii) and (iii) as clauses 
     (iii) and (iv), respectively; and
       (iii) by inserting after clause (i) the following:
       ``(ii) include an assessment of the needs of individuals 
     with disabilities for transition services and pre-employment 
     transition services, and the extent to which such services 
     provided under this Act are coordinated with transition 
     services provided under the Individuals with Disabilities 
     Education Act (20 U.S.C. 1400 et seq.) in order to meet the 
     needs of individuals with disabilities.'';
       (B) in subparagraph (B)--
       (i) in clause (ii)--

       (I) by striking ``part B of title VI'' and inserting 
     ``title VI''; and
       (II) by striking ``and'' at the end;

       (ii) by redesignating clause (iii) as clause (iv); and
       (iii) by inserting after clause (ii) the following:
       ``(iii) the number of individuals who are eligible for 
     services under this title, but are not receiving such 
     services due to an order of selection; and''; and
       (C) in subparagraph (D)--
       (i) by redesignating clauses (iii) through (v) as clauses 
     (iv) through (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 postsecondary 
     life (including the receipt of vocational rehabilitation 
     services under this title, postsecondary education, 
     employment, and pre-employment transition services);''; and
       (iii) in clause (vi), as redesignated by clause (i) of this 
     subparagraph, by striking ``workforce investment system'' and 
     inserting ``workforce development system'';
       (10) in paragraph (20), in subparagraphs (A) and (B)(i), by 
     striking ``workforce investment system'' and inserting 
     ``workforce development system'';
       (11) in paragraph (22), by striking ``part B of title VI'' 
     and inserting ``title VI''; and
       (12) by adding at the end the following:
       ``(25) Services for students with disabilities.--The State 
     plan shall provide an assurance that, with respect to 
     students with disabilities, the State--
       ``(A) has developed and will implement--
       ``(i) strategies to address the needs identified in the 
     assessments described in paragraph (15); and
       ``(ii) strategies to achieve the goals and priorities 
     identified by the State, in accordance with paragraph (15), 
     to improve and expand vocational rehabilitation services for 
     students with disabilities on a statewide basis; and
       ``(B) has developed and will implement strategies to 
     provide pre-employment transition services.
       ``(26) Job growth and development.--The State plan shall 
     provide an assurance describing how the State will utilize 
     initiatives involving in-demand industry sectors or 
     occupations under sections 106(c) and 108 of the Workforce 
     Innovation and Opportunity Act to increase competitive 
     integrated employment opportunities for individuals with 
     disabilities.''.
       (b) Approval.--Section 101(b) (29 U.S.C. 721(b)) is amended 
     to read as follows:
       ``(b) Submission; Approval; Modification.--The State plan 
     for vocational rehabilitation services shall be subject to--
       ``(1) subsection (c) of section 102 of the Workforce 
     Innovation and Opportunity Act, in a case in which that plan 
     is a portion of the unified State plan described in that 
     section 102; and
       ``(2) subsection (b), and paragraphs (1), (2), and (3) of 
     subsection (c), of section 103 of such Act in a case in which 
     that State plan for vocational rehabilitation services is a 
     portion of the combined State plan described in that section 
     103.''.
       (c) Construction.--Section 101 (29 U.S.C. 721) is amended 
     by adding at the end the following:
       ``(c) Construction.--Nothing in this part shall be 
     construed to reduce the obligation under the Individuals with 
     Disabilities Education Act (20 U.S.C. 1400 et seq.) of a 
     local educational agency or any other agency to provide or 
     pay for any transition services that are also considered 
     special education or related services and that are necessary 
     for ensuring a free appropriate public education to children 
     with disabilities within the State involved.''.

     SEC. 413. ELIGIBILITY AND INDIVIDUALIZED PLAN FOR EMPLOYMENT.

       (a) Eligibility.--Section 102(a) (29 U.S.C. 722(a)) is 
     amended--
       (1) in paragraph (1)--
       (A) in subparagraph (A), by striking ``is an'' and 
     inserting ``has undergone an assessment for determining 
     eligibility and vocational rehabilitation needs and as a 
     result has been determined to be an'';
       (B) in subparagraph (B), by striking ``or regain 
     employment.'' and inserting ``advance in, or regain 
     employment that is consistent with the individual's 
     strengths, resources, priorities, concerns, abilities, 
     capabilities, interests, and informed choice.''; and
       (C) by adding at the end the following: ``For purposes of 
     an assessment for determining eligibility and vocational 
     rehabilitation needs under this Act, an individual shall be 
     presumed to have a goal of an employment outcome.'';
       (2) in paragraph (2)--
       (A) in subparagraph (A)--
       (i) in the subparagraph header, by striking 
     ``Demonstration'' and inserting ``Applicants''; and
       (ii) by striking ``, unless'' and all that follows and 
     inserting a period; and
       (B) in subparagraph (B)--
       (i) in the subparagraph header, by striking ``Methods'' and 
     inserting ``Responsibilities'';
       (ii) in the first sentence--

       (I) by striking ``In making the demonstration required 
     under subparagraph (A),'' and inserting ``Prior to 
     determining under this subsection that an applicant described 
     in subparagraph (A) is unable to benefit due to

[[Page 10965]]

     the severity of the individual's disability or that the 
     individual is ineligible for vocational rehabilitation 
     services,''; and
       (II) by striking ``, except under'' and all that follows 
     and inserting a period; and

       (iii) in the second sentence, by striking ``individual or 
     to determine'' and all that follows and inserting 
     ``individual. In providing the trial experiences, the 
     designated State unit shall provide the individual with the 
     opportunity to try different employment experiences, 
     including supported employment, and the opportunity to become 
     employed in competitive integrated employment.'';
       (3) in paragraph (3)(A)(ii), by striking ``outcome from'' 
     and all that follows and inserting ``outcome due to the 
     severity of the individual's disability (as of the date of 
     the determination).''; and
       (4) in paragraph (5)--
       (A) in the matter preceding subparagraph (A)--
       (i) by striking ``If an individual'' and inserting ``If, 
     after the designated State unit carries out the activities 
     described in paragraph (2)(B), a review of existing data, 
     and, to the extent necessary, the assessment activities 
     described in section 7(2)(A)(ii), an individual''; and
       (ii) by striking ``title is determined'' and all that 
     follows through ``not to be'' and inserting ``title is 
     determined not to be'';
       (B) by redesignating subparagraphs (A) through (D) as 
     subparagraphs (B) through (E), respectively;
       (C) by inserting before subparagraph (B), as redesignated 
     by subparagraph (B) of this paragraph, the following:
       ``(A) the ineligibility determination shall be an 
     individualized one, based on the available data, and shall 
     not be based on assumptions about broad categories of 
     disabilities;''; and
       (D) in clause (i) of subparagraph (C), as redesignated by 
     subparagraph (B) of this paragraph, by inserting after 
     ``determination'' the following: ``, including the clear and 
     convincing evidence that forms the basis for the 
     determination of ineligibility''.
       (b) Development of an Individualized Plan for Employment, 
     and Related Information.--Section 102(b) (29 U.S.C. 722(b)) 
     is amended--
       (1) in paragraph (1)(A)--
       (A) by striking ``, to the extent determined to be 
     appropriate by the eligible individual,''; and
       (B) by inserting ``or, as appropriate, a disability 
     advocacy organization'' after ``counselor'';
       (2) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively;
       (3) by inserting after paragraph (1) the following:
       ``(2) Individuals desiring to enter the workforce.--For an 
     individual entitled to benefits under title II or XVI of the 
     Social Security Act (42 U.S.C. 401 et seq., 1381 et seq.) on 
     the basis of a disability or blindness, the designated State 
     unit shall provide to the individual general information on 
     additional supports and assistance for individuals with 
     disabilities desiring to enter the workforce, including 
     assistance with benefits planning.'';
       (4) in paragraph (3), as redesignated by paragraph (2) of 
     this subsection--
       (A) in subparagraph (E)--
       (i) in clause (i), by striking ``and'' at the end;
       (ii) in clause (ii), by striking the period and inserting 
     ``; and''; and
       (iii) by adding at the end the following:
       ``(iii) amended, as necessary, to include the 
     postemployment services and service providers that are 
     necessary for the individual to maintain or regain 
     employment, consistent with the individual's strengths, 
     resources, priorities, concerns, abilities, capabilities, 
     interests, and informed choice.''; and
       (B) by adding at the end the following:
       ``(F) Timeframe for completing the individualized plan for 
     employment.--The individualized plan for employment shall be 
     developed as soon as possible, but not later than a deadline 
     of 90 days after the date of the determination of eligibility 
     described in paragraph (1), unless the designated State unit 
     and the eligible individual agree to an extension of that 
     deadline to a specific date by which the individualized plan 
     for employment shall be completed.''; and
       (5) in paragraph (4), as redesignated by paragraph (2) of 
     this subsection--
       (A) in subparagraph (A), by striking ``choice of the'' and 
     all that follows and inserting ``choice of the eligible 
     individual, consistent with the general goal of competitive 
     integrated employment (except that in the case of an eligible 
     individual who is a student, the description may be a 
     description of the student's projected postschool employment 
     outcome);'';
       (B) in subparagraph (B)(i)--
       (i) by redesignating subclause (II) as subclause (III); and
       (ii) by striking subclause (I) and inserting the following:
       ``(I) needed to achieve the employment outcome, including, 
     as appropriate--

       ``(aa) the provision of assistive technology devices and 
     assistive technology services (including referrals described 
     in section 103(a)(3) to the device reutilization programs and 
     demonstrations described in subparagraphs (B) and (D) of 
     section 4(e)(2) of the Assistive Technology Act of 1998 (29 
     U.S.C. 3003(e)(2)) through agreements developed under section 
     101(a)(11)(I); and
       ``(bb) personal assistance services (including training in 
     the management of such services);

       ``(II) in the case of a plan for an eligible individual 
     that is a student, the specific transition services and 
     supports needed to achieve the student's employment outcome 
     or projected postschool employment outcome; and'';
       (C) in subparagraph (F), by striking ``and'' at the end;
       (D) in subparagraph (G), by striking the period and 
     inserting ``; and''; and
       (E) by adding at the end the following:
       ``(H) for an individual who also is receiving assistance 
     from an employment network under the Ticket to Work and Self-
     Sufficiency Program established under section 1148 of the 
     Social Security Act (42 U.S.C. 1320b-19), a description of 
     how responsibility for service delivery will be divided 
     between the employment network and the designated State 
     unit.''.
       (c) Procedures.--Section 102(c) (29 U.S.C. 722(c)) is 
     amended--
       (1) in paragraph (1), by adding at the end the following: 
     ``The procedures shall allow an applicant or an eligible 
     individual the opportunity to request mediation, an impartial 
     due process hearing, or both procedures.'';
       (2) in paragraph (2)(A)--
       (A) in clause (ii), by striking ``and'' at the end;
       (B) in clause (iii), by striking the period and inserting 
     ``; and''; and
       (C) by adding at the end the following:
       ``(iv) any applicable State limit on the time by which a 
     request for mediation under paragraph (4) or a hearing under 
     paragraph (5) shall be made, and any required procedure by 
     which the request shall be made.''; and
       (3) in paragraph (5)--
       (A) by striking subparagraph (A) and inserting the 
     following:
       ``(A) Officer.--A due process hearing described in 
     paragraph (2) shall be conducted by an impartial hearing 
     officer who, on reviewing the evidence presented, shall issue 
     a written decision based on the provisions of the approved 
     State plan, requirements specified in this Act (including 
     regulations implementing this Act), and State regulations and 
     policies that are consistent with the Federal requirements 
     specified in this title. The officer shall provide the 
     written decision to the applicant or eligible individual, or, 
     as appropriate, the applicant's representative or 
     individual's representative, and to the designated State 
     unit. The impartial hearing officer shall have the authority 
     to render a decision and require actions regarding the 
     applicant's or eligible individual's vocational 
     rehabilitation services under this title.''; and
       (B) in subparagraph (B), by striking ``in laws'' and 
     inserting ``about Federal laws''.

     SEC. 414. VOCATIONAL REHABILITATION SERVICES.

       Section 103 (29 U.S.C. 723) is amended--
       (1) in subsection (a)--
       (A) in paragraph (13), by striking ``workforce investment 
     system'' and inserting ``workforce development system'';
       (B) by striking paragraph (15) and inserting the following:
       ``(15) transition services for students with disabilities, 
     that facilitate the transition from school to postsecondary 
     life, such as achievement of an employment outcome in 
     competitive integrated employment, or pre-employment 
     transition services;'';
       (C) by redesignating paragraphs (17) and (18) as paragraphs 
     (19) and (20), respectively; and
       (D) by inserting after paragraph (16) the following:
       ``(17) customized employment;
       ``(18) encouraging qualified individuals who are eligible 
     to receive services under this title to pursue advanced 
     training in a science, technology, engineering, or 
     mathematics (including computer science) field, medicine, 
     law, or business;''.
       (2) in subsection (b)--
       (A) in paragraph (2)--
       (i) in subparagraph (A)--

       (I) by striking ``(A)''; and
       (II) by striking the second sentence and inserting ``Such 
     programs shall be used to provide services described in this 
     section that promote integration into the community and that 
     prepare individuals with disabilities for competitive 
     integrated employment, including supported employment and 
     customized employment.''; and

       (ii) by striking subparagraph (B);
       (B) by striking paragraph (5) and inserting the following:
       ``(5) Technical assistance to businesses that are seeking 
     to employ individuals with disabilities.''; and
       (C) by striking paragraph (6) and inserting the following:
       ``(6) Consultation and technical assistance services to 
     assist State educational agencies and local educational 
     agencies in planning for the transition of students with 
     disabilities from school to postsecondary life, including 
     employment.
       ``(7) Transition services to youth with disabilities and 
     students with disabilities, for which a vocational 
     rehabilitation counselor works in concert with educational 
     agencies, providers of job training programs, providers

[[Page 10966]]

     of services under the Medicaid program under title XIX of the 
     Social Security Act (42 U.S.C. 1396 et seq.), entities 
     designated by the State to provide services for individuals 
     with developmental disabilities, centers for independent 
     living (as defined in section 702), housing and 
     transportation authorities, workforce development systems, 
     and businesses and employers.
       ``(8) 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.
       ``(9) Support (including, as appropriate, tuition) for 
     advanced training in a science, technology, engineering, or 
     mathematics (including computer science) field, medicine, 
     law, or business, provided after an individual eligible to 
     receive services under this title, demonstrates--
       ``(A) such eligibility;
       ``(B) previous completion of a bachelor's degree program at 
     an institution of higher education or scheduled completion of 
     such degree program prior to matriculating in the program for 
     which the individual proposes to use the support; and
       ``(C) acceptance by a program at an institution of higher 
     education in the United States that confers a master's degree 
     in a science, technology, engineering, or mathematics 
     (including computer science) field, a juris doctor degree, a 
     master of business administration degree, or a doctor of 
     medicine degree,

     except that the limitations of subsection (a)(5) that apply 
     to training services shall apply to support described in this 
     paragraph, and nothing in this paragraph shall prevent any 
     designated State unit from providing similar support to 
     individuals with disabilities within the State who are 
     eligible to receive support under this title and who are not 
     served under this paragraph.''.

     SEC. 415. STATE REHABILITATION COUNCIL.

       Section 105 (29 U.S.C. 725) is amended--
       (1) in subsection (b)(1)(A)--
       (A) by striking clause (ix) and inserting the following:
       ``(ix) in a State in which one or more projects are funded 
     under section 121, at least one representative of the 
     directors of the projects located in such State;''; and
       (B) in clause (xi), by striking ``State workforce 
     investment board'' and inserting ``State workforce 
     development board''; and
       (2) in subsection (c)--
       (A) in the matter preceding paragraph (1), by striking 
     ``State workforce investment board'' and inserting ``State 
     workforce development board''; and
       (B) in paragraph (6), by striking ``Service Act'' and all 
     that follows and inserting ``Service Act (42 U.S.C. 300x-
     3(a)) and the State workforce development board, and with the 
     activities of entities carrying out programs under the 
     Assistive Technology Act of 1998 (29 U.S.C. 3001 et seq.);''.

     SEC. 416. EVALUATION STANDARDS AND PERFORMANCE INDICATORS.

       Section 106 (29 U.S.C. 726) is amended--
       (1) by striking subsection (a) and inserting the following:
       ``(a) In General.--
       ``(1) Standards and indicators.--The evaluation standards 
     and performance indicators for the vocational rehabilitation 
     program carried out under this title shall be subject to the 
     performance accountability provisions described in section 
     116(b) of the Workforce Innovation and Opportunity Act.
       ``(2) Additional performance accountability indicators.--A 
     State may establish and provide information on additional 
     performance accountability indicators, which shall be 
     identified in the State plan submitted under section 101.''; 
     and
       (2) in subsection (b)(2)(B)(i), by striking ``review the 
     program'' and all that follows through ``request the State'' 
     and inserting ``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 Commissioner, direct the State''.

     SEC. 417. MONITORING AND REVIEW.

       (a) In General.--Section 107 (29 U.S.C. 727) is amended--
       (1) in subsection (a)--
       (A) in paragraph (3)(E), by inserting before the period the 
     following: ``, including personnel of a client assistance 
     program under section 112, and past or current recipients of 
     vocational rehabilitation services''; and
       (B) in paragraph (4)--
       (i) by striking subparagraphs (A) and (B) and inserting the 
     following:
       ``(A) the eligibility process, including the process 
     related to the determination of ineligibility under section 
     102(a)(5);
       ``(B) the provision of services, including supported 
     employment services and pre-employment transition services, 
     and, if applicable, the order of selection;'';
       (ii) in subparagraph (C), by striking ``and'' at the end;
       (iii) by redesignating subparagraph (D) as subparagraph 
     (E); and
       (iv) by inserting after subparagraph (C) the following:
       ``(D) data reported under section 101(a)(10)(C)(i); and''; 
     and
       (2) in subsection (b)--
       (A) in paragraph (1), by striking ``and'' at the end;
       (B) in paragraph (2), by striking the period and inserting 
     ``; and''; and
       (C) by adding at the end the following:
       ``(3) provide technical assistance to programs under this 
     title to--
       ``(A) promote high-quality employment outcomes for 
     individuals with disabilities;
       ``(B) integrate veterans who are individuals with 
     disabilities into their communities and to support the 
     veterans to obtain and retain competitive integrated 
     employment;
       ``(C) develop, improve, and disseminate information on 
     procedures, practices, and strategies, including for the 
     preparation of personnel, to better enable individuals with 
     intellectual disabilities and other individuals with 
     disabilities to participate in postsecondary educational 
     experiences and to obtain and retain competitive integrated 
     employment; and
       ``(D) apply evidence-based findings to facilitate systemic 
     improvements in the transition of youth with disabilities to 
     postsecondary life.''.
       (b) Technical Amendment.--Section 108(a) (29 U.S.C. 728(a)) 
     is amended by striking ``part B of title VI'' and inserting 
     ``title VI''.

     SEC. 418. TRAINING AND SERVICES FOR EMPLOYERS.

       Section 109 (29 U.S.C. 728a) is amended to read as follows:

     ``SEC. 109. TRAINING AND SERVICES FOR EMPLOYERS.

       ``A State may expend payments received under section 111 to 
     educate and provide services to employers who have hired or 
     are interested in hiring individuals with disabilities under 
     programs carried out under this title, including--
       ``(1) providing training and technical assistance to 
     employers regarding the employment of individuals with 
     disabilities, including disability awareness, and the 
     requirements of the Americans with Disabilities Act of 1990 
     (42 U.S.C. 12101 et seq.) and other employment-related laws;
       ``(2) working with employers to--
       ``(A) provide opportunities for work-based learning 
     experiences (including internships, short-term employment, 
     apprenticeships, and fellowships), and opportunities for pre-
     employment transition services;
       ``(B) recruit qualified applicants who are individuals with 
     disabilities;
       ``(C) train employees who are individuals with 
     disabilities; and
       ``(D) promote awareness of disability-related obstacles to 
     continued employment;
       ``(3) providing consultation, technical assistance, and 
     support to employers on workplace accommodations, assistive 
     technology, and facilities and workplace access through 
     collaboration with community partners and employers, across 
     States and nationally, to enable the employers to recruit, 
     job match, hire, and retain qualified individuals with 
     disabilities who are recipients of vocational rehabilitation 
     services under this title, or who are applicants for such 
     services; and
       ``(4) assisting employers with utilizing available 
     financial support for hiring or accommodating individuals 
     with disabilities.''.

     SEC. 419. STATE ALLOTMENTS.

       Section 110 (29 U.S.C. 730) is amended--
       (1) in subsection (a)(1), by striking ``Subject to the 
     provisions of subsection (c)'' and inserting ``Subject to the 
     provisions of subsections (c) and (d),'';
       (2) in subsection (c)--
       (A) in paragraph (1), by striking ``1987'' and inserting 
     ``2015''; and
       (B) in paragraph (2)--
       (i) by striking ``Secretary'' and all that follows through 
     ``(B)'' and inserting ``Secretary,''; and
       (ii) by striking ``2000 through 2003'' and inserting ``2015 
     through 2020''; and
       (3) by adding at the end the following:
       ``(d)(1) From any State allotment under subsection (a) for 
     a fiscal year, the State shall reserve not less than 15 
     percent of the allotted funds for the provision of pre-
     employment transition services.
       ``(2) Such reserved funds shall not be used to pay for the 
     administrative costs of providing pre-employment transition 
     services.''.

     SEC. 420. PAYMENTS TO STATES.

       Section 111(a)(2)(B) (29 U.S.C. 731(a)(2)(B)) is amended--
       (1) by striking ``For fiscal year 1994 and each fiscal year 
     thereafter, the'' and inserting ``The'';
       (2) by striking ``this title for the previous'' and 
     inserting ``this title for any previous''; and
       (3) by striking ``year preceding the previous'' and 
     inserting ``year preceding that previous''.

     SEC. 421. CLIENT ASSISTANCE PROGRAM.

       Section 112 (29 U.S.C. 732) is amended--
       (1) in subsection (a), in the first sentence, by inserting 
     ``including under sections 113 and 511,'' after ``all 
     available benefits under this Act,'';
       (2) in subsection (b), by striking ``not later than October 
     1, 1984,'';
       (3) in subsection (e)(1)--
       (A) in subparagraph (A), by striking ``The Secretary shall 
     allot'' and inserting ``After reserving funds under 
     subparagraphs (E) and (F), the Secretary shall allot the 
     remainder of''; and
       (B) by adding at the end the following:

[[Page 10967]]

       ``(E)(i) The Secretary shall reserve funds appropriated 
     under subsection (h) to make a grant to the protection and 
     advocacy system serving the American Indian Consortium to 
     provide services in accordance with this section. The amount 
     of such a grant shall be the same amount as is provided to a 
     territory under this subsection.
       ``(ii) In this subparagraph:
       ``(I) The term `American Indian Consortium' has the meaning 
     given the term in section 102 of the Developmental 
     Disabilities Assistance and Bill of Rights Act of 2000 (42 
     U.S.C. 15002).
       ``(II) The term `protection and advocacy system' means a 
     protection and advocacy system established under subtitle C 
     of title I of the Developmental Disabilities Assistance and 
     Bill of Rights Act of 2000 (42 U.S.C. 15041 et seq.).
       ``(F) For any fiscal year for which the amount appropriated 
     under subsection (h) equals or exceeds $14,000,000, the 
     Secretary may reserve not less than 1.8 percent and not more 
     than 2.2 percent of such amount to provide a grant for 
     training and technical assistance for the programs 
     established under this section. Such training and technical 
     assistance shall be coordinated with activities provided 
     under section 509(c)(1)(A).''; and
       (4) by striking subsection (h) and inserting the following:
       ``(h) There are authorized to be appropriated to carry out 
     the provisions of this section--
       ``(1) $12,000,000 for fiscal year 2015;
       ``(2) $12,927,000 for fiscal year 2016;
       ``(3) $13,195,000 for fiscal year 2017;
       ``(4) $13,488,000 for fiscal year 2018;
       ``(5) $13,805,000 for fiscal year 2019; and
       ``(6) $14,098,000 for fiscal year 2020.''.

     SEC. 422. PRE-EMPLOYMENT TRANSITION SERVICES.

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

     ``SEC. 113. PROVISION OF PRE-EMPLOYMENT TRANSITION SERVICES.

       ``(a) In General.--From the funds reserved under section 
     110(d), and any funds made available from State, local, or 
     private funding sources, each State shall ensure that the 
     designated State unit, in collaboration with the local 
     educational agencies involved, shall provide, or arrange for 
     the provision of, pre-employment transition services for all 
     students with disabilities in need of such services who are 
     eligible or potentially eligible for services under this 
     title.
       ``(b) Required Activities.--Funds available under 
     subsection (a) shall be used to make available to students 
     with disabilities described in subsection (a)--
       ``(1) job exploration counseling;
       ``(2) work-based learning experiences, which may include 
     in-school or after school opportunities, or experience 
     outside the traditional school setting (including 
     internships), that is provided in an integrated environment 
     to the maximum extent possible;
       ``(3) counseling on opportunities for enrollment in 
     comprehensive transition or postsecondary educational 
     programs at institutions of higher education;
       ``(4) workplace readiness training to develop social skills 
     and independent living; and
       ``(5) instruction in self-advocacy, which may include peer 
     mentoring.
       ``(c) Authorized Activities.--Funds available under 
     subsection (a) and remaining after the provision of the 
     required activities described in subsection (b) may be used 
     to improve the transition of students with disabilities 
     described in subsection (a) from school to postsecondary 
     education or an employment outcome by--
       ``(1) implementing effective strategies to increase the 
     likelihood of independent living and inclusion in communities 
     and competitive integrated workplaces;
       ``(2) developing and improving strategies for individuals 
     with intellectual disabilities and individuals with 
     significant disabilities to live independently, participate 
     in postsecondary education experiences, and obtain and retain 
     competitive integrated employment;
       ``(3) providing instruction to vocational rehabilitation 
     counselors, school transition personnel, and other persons 
     supporting students with disabilities;
       ``(4) disseminating information about innovative, 
     effective, and efficient approaches to achieve the goals of 
     this section;
       ``(5) coordinating activities with transition services 
     provided by local educational agencies under the Individuals 
     with Disabilities Education Act (20 U.S.C. 1400 et seq.);
       ``(6) applying evidence-based findings to improve policy, 
     procedure, practice, and the preparation of personnel, in 
     order to better achieve the goals of this section;
       ``(7) developing model transition demonstration projects;
       ``(8) establishing or supporting multistate or regional 
     partnerships involving States, local educational agencies, 
     designated State units, developmental disability agencies, 
     private businesses, or other participants to achieve the 
     goals of this section; and
       ``(9) disseminating information and strategies to improve 
     the transition to postsecondary activities of individuals who 
     are members of traditionally unserved populations.
       ``(d) Pre-Employment Transition Coordination.--Each local 
     office of a designated State unit shall carry out 
     responsibilities consisting of--
       ``(1) attending individualized education program meetings 
     for students with disabilities, when invited;
       ``(2) working with the local workforce development boards, 
     one-stop centers, and employers to develop work opportunities 
     for students with disabilities, including internships, summer 
     employment and other employment opportunities available 
     throughout the school year, and apprenticeships;
       ``(3) work with schools, including those carrying out 
     activities under section 614(d)(1)(A)(i)(VIII) of the 
     Individuals with Disabilities Education Act (20 U.S.C. 
     1414(d)(1)(A)(i)(VIII)), to coordinate and ensure the 
     provision of pre-employment transition services under this 
     section; and
       ``(4) when invited, attend person-centered planning 
     meetings for individuals receiving services under title XIX 
     of the Social Security Act (42 U.S.C. 1396 et seq.).
       ``(e) National Pre-employment Transition Coordination.--The 
     Secretary shall support designated State agencies providing 
     services under this section, highlight best State practices, 
     and consult with other Federal agencies to advance the goals 
     of this section.
       ``(f) Support.--In carrying out this section, States shall 
     address the transition needs of all students with 
     disabilities, including such students with physical, sensory, 
     intellectual, and mental health disabilities.''.

     SEC. 423. AMERICAN INDIAN VOCATIONAL REHABILITATION SERVICES.

       Section 121 (29 U.S.C. 741) is amended--
       (1) in subsection (a), in the first sentence, by inserting 
     before the period the following: ``(referred to in this 
     section as `eligible individuals'), consistent with such 
     eligible individuals' strengths, resources, priorities, 
     concerns, abilities, capabilities, interests, and informed 
     choice, so that such individuals may prepare for, and engage 
     in, high-quality employment that will increase opportunities 
     for economic self-sufficiency'';
       (2) in subsection (b)(1)--
       (A) in subparagraph (B), by striking ``and'' at the end;
       (B) in subparagraph (C), by striking the period and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(D) contains assurances that--
       ``(i) all decisions affecting eligibility for vocational 
     rehabilitation services, the nature and scope of available 
     vocational rehabilitation services and the provision of such 
     services will, consistent with this title, be made by a 
     representative of the tribal vocational rehabilitation 
     program funded through the grant; and
       ``(ii) such decisions will not be delegated to another 
     agency or individual.'';
       (3) by redesignating subsection (c) as subsection (d); and
       (4) by inserting after subsection (b) the following:
       ``(c)(1) From the funds appropriated and made available to 
     carry out this part for any fiscal year, beginning with 
     fiscal year 2015, the Commissioner shall first reserve not 
     less than 1.8 percent and not more than 2 percent of the 
     funds to provide training and technical assistance to 
     governing bodies described in subsection (a) for such fiscal 
     year.
       ``(2) From the funds reserved under paragraph (1), the 
     Commissioner shall make grants to, or enter into contracts or 
     other cooperative agreements with, entities that have 
     experience in the operation of vocational rehabilitation 
     services programs under this section to provide such training 
     and technical assistance with respect to developing, 
     conducting, administering, and evaluating such programs.
       ``(3) The Commissioner shall conduct a survey of the 
     governing bodies regarding training and technical assistance 
     needs in order to determine funding priorities for such 
     grants, contracts, or cooperative agreements.
       ``(4) To be eligible to receive a grant or enter into a 
     contract or cooperative agreement under this section, such an 
     entity shall submit an application to the Commissioner at 
     such time, in such manner, and containing a proposal to 
     provide such training and technical assistance, and 
     containing such additional information as the Commissioner 
     may require. The Commissioner shall provide for peer review 
     of applications by panels that include persons who are not 
     government employees and who have experience in the operation 
     of vocational rehabilitation services programs under this 
     section.''.

     SEC. 424. VOCATIONAL REHABILITATION SERVICES CLIENT 
                   INFORMATION.

       Section 131(a)(2) (29 U.S.C. 751(a)(2)) is amended by 
     striking ``title I of the Workforce Investment Act of 1998'' 
     and inserting ``title I of the Workforce Innovation and 
     Opportunity Act''.

                   Subtitle C--Research and Training

     SEC. 431. PURPOSE.

       Section 200 (29 U.S.C. 760) is amended--
       (1) in paragraph (1), by inserting ``technical 
     assistance,'' after ``training,'';
       (2) in paragraph (2), by inserting ``technical 
     assistance,'' after ``training,'';
       (3) in paragraph (3), in the matter preceding subparagraph 
     (A)--
       (A) by inserting ``and use'' after ``transfer''; and

[[Page 10968]]

       (B) by inserting ``, in a timely and efficient manner,'' 
     after ``disabilities''; and
       (4) in paragraph (4), by striking ``distribution'' and 
     inserting ``dissemination'';
       (5) in paragraph (5)--
       (A) by inserting ``, including individuals with 
     intellectual and psychiatric disabilities,'' after 
     ``disabilities''; and
       (B) by striking ``and'' after the semicolon;
       (6) by redesignating paragraph (6) as paragraph (7);
       (7) by inserting after paragraph (5) the following:
       ``(6) identify strategies for effective coordination of 
     services to job seekers with disabilities available through 
     programs of one-stop partners, as defined in section 3 of the 
     Workforce Innovation and Opportunity Act;'';
       (8) in paragraph (7), as redesignated by paragraph (6), by 
     striking the period and inserting ``; and''; and
       (9) by adding at the end the following:
       ``(8) identify effective strategies for supporting the 
     employment of individuals with disabilities in competitive 
     integrated employment.''.

     SEC. 432. AUTHORIZATION OF APPROPRIATIONS.

       Section 201 (29 U.S.C. 761) is amended to read as follows:

     ``SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     title $103,970,000 for fiscal year 2015, $112,001,000 for 
     fiscal year 2016, $114,325,000 for fiscal year 2017, 
     $116,860,000 for fiscal year 2018, $119,608,000 for fiscal 
     year 2019, and $122,143,000 for fiscal year 2020.''.

     SEC. 433. NATIONAL INSTITUTE ON DISABILITY, INDEPENDENT 
                   LIVING, AND REHABILITATION RESEARCH.

       Section 202 (29 U.S.C. 762) is amended--
       (1) in the section heading, by inserting ``, independent 
     living,'' after ``disability'';
       (2) in subsection (a)--
       (A) in paragraph (1)--
       (i) in the matter preceding subparagraph (A), by striking 
     ``Department of Education'' and all that follows through 
     ``which'' and inserting ``Administration for Community Living 
     of the Department of Health and Human Services a National 
     Institute on Disability, Independent Living, and 
     Rehabilitation Research (referred to in this title as the 
     `Institute'), which''; and
       (ii) in subparagraph (A)--

       (I) in clause (ii), by striking ``and training; and'' and 
     inserting ``, training, and technical assistance;'';
       (II) by redesignating clause (iii) as clause (iv); and
       (III) by inserting after clause (ii) the following:

       ``(iii) outreach and information that clarifies research 
     implications for policy and practice; and''; and
       (B) in paragraph (2), by striking ``directly'' and all that 
     follows through the period and inserting ``directly 
     responsible to the Administrator for the Administration for 
     Community Living of the Department of Health and Human 
     Services.'';
       (3) in subsection (b)--
       (A) in paragraph (2), by striking subparagraph (B) and 
     inserting the following:
       ``(B) private organizations engaged in research relating 
     to--
       ``(i) independent living;
       ``(ii) rehabilitation; or
       ``(iii) providing rehabilitation or independent living 
     services;'';
       (B) in paragraph (3), by striking ``in rehabilitation'' and 
     inserting ``on disability, independent living, and 
     rehabilitation'';
       (C) in paragraph (4)--
       (i) in the matter preceding subparagraph (A), by inserting 
     ``education, health and wellness,'' after ``independent 
     living,''; and
       (ii) by striking subparagraphs (A) through (D) and 
     inserting the following:
       ``(A) public and private entities, including--
       ``(i) elementary schools and secondary schools (as defined 
     in section 9101 of the Elementary and Secondary Education Act 
     of 1965 (20 U.S.C. 7801)); and
       ``(ii) institutions of higher education;
       ``(B) rehabilitation practitioners;
       ``(C) employers and organizations representing employers 
     with respect to employment-based educational materials or 
     research;
       ``(D) individuals with disabilities (especially such 
     individuals who are members of minority groups or of 
     populations that are unserved or underserved by programs 
     under this Act);
       ``(E) the individuals' representatives for the individuals 
     described in subparagraph (D); and
       ``(F) the Committee on Education and the Workforce of the 
     House of Representatives, the Committee on Appropriations of 
     the House of Representatives, the Committee on Health, 
     Education, Labor, and Pensions of the Senate, and the 
     Committee on Appropriations of the Senate;'';
       (D) in paragraph (6)--
       (i) by striking ``advances in rehabilitation'' and 
     inserting ``advances in disability, independent living, and 
     rehabilitation''; and
       (ii) by inserting ``education, health and wellness,'' after 
     ``employment, independent living,'';
       (E) by striking paragraph (7);
       (F) by redesignating paragraphs (8) through (11) as 
     paragraphs (7) through (10), respectively;
       (G) in paragraph (7), as redesignated by subparagraph (F)--
       (i) by striking ``health, income,'' and inserting ``health 
     and wellness, income, education,''; and
       (ii) by striking ``and evaluation of vocational and other'' 
     and inserting ``and evaluation of independent living, 
     vocational, and'';
       (H) in paragraph (8), as redesignated by subparagraph (F), 
     by striking ``with vocational rehabilitation services for the 
     purpose of identifying effective rehabilitation programs and 
     policies that promote the independence of individuals with 
     disabilities and achievement of long-term vocational goals'' 
     and inserting ``with independent living and vocational 
     rehabilitation services for the purpose of identifying 
     effective independent living and rehabilitation programs and 
     policies that promote the independence of individuals with 
     disabilities and achievement of long-term independent living 
     and employment goals''; and
       (I) in paragraph (9), as redesignated by subparagraph (F), 
     by striking ``and telecommuting; and'' and inserting ``, 
     supported employment (including customized employment), and 
     telecommuting; and'';
       (4) in subsection (d)(1), by striking the second sentence 
     and inserting the following: ``The Director shall be an 
     individual with substantial knowledge of and experience in 
     independent living, rehabilitation, and research 
     administration.'';
       (5) in subsection (f)(1), by striking the second sentence 
     and inserting the following: ``The scientific peer review 
     shall be conducted by individuals who are not Department of 
     Health and Human Services employees. The Secretary shall 
     consider for peer review individuals who are scientists or 
     other experts in disability, independent living, and 
     rehabilitation, including individuals with disabilities and 
     the individuals' representatives, and who have sufficient 
     expertise to review the projects.'';
       (6) in subsection (h)--
       (A) in paragraph (1)(A)--
       (i) by striking ``priorities for rehabilitation research,'' 
     and inserting ``priorities for disability, independent 
     living, and rehabilitation research,''; and
       (ii) by inserting ``dissemination,'' after ``training,''; 
     and
       (B) in paragraph (2)--
       (i) in subparagraph (A), by striking ``especially in the 
     area of employment'' and inserting ``especially in the areas 
     of employment and independent living'';
       (ii) in subparagraph (D)--

       (I) by striking ``developed by the Director'' and inserting 
     ``coordinated with the strategic plan required under section 
     203(c)'';
       (II) in clause (i), by striking ``Rehabilitation'' and 
     inserting ``Disability, Independent Living, and 
     Rehabilitation'';
       (III) in clause (ii), by striking ``Commissioner'' and 
     inserting ``Administrator''; and
       (IV) in clause (iv), by striking ``researchers in the 
     rehabilitation field'' and inserting ``researchers in the 
     independent living and rehabilitation fields'';

       (iii) by redesignating subparagraphs (E) and (F) as 
     subparagraphs (F) and (G), respectively;
       (iv) by inserting after subparagraph (D) the following:
       ``(E) be developed by the Director;'';
       (v) in subparagraph (F), as redesignated by clause (iii), 
     by inserting ``and information that clarifies implications of 
     the results for practice,'' after ``covered activities,''; 
     and
       (vi) in subparagraph (G), as redesignated by clause (iii), 
     by inserting ``and information that clarifies implications of 
     the results for practice'' after ``covered activities'';
       (7) in subsection (j), by striking paragraph (3); and
       (8) by striking subsection (k) and inserting the following:
       ``(k) The Director shall make grants to institutions of 
     higher education for the training of independent living and 
     rehabilitation researchers, including individuals with 
     disabilities and traditionally underserved populations of 
     individuals with disabilities, as described in section 21, 
     with particular attention to research areas that--
       ``(1) support the implementation and objectives of this 
     Act; and
       ``(2) improve the effectiveness of services authorized 
     under this Act.
       ``(l)(1) Not later than December 31 of each year, the 
     Director shall prepare, and submit to the Secretary, the 
     Committee on Health, Education, Labor, and Pensions of the 
     Senate, and the Committee on Education and the Workforce of 
     the House of Representatives, a report on the activities 
     funded under this title.
       ``(2) The report under paragraph (1) shall include--
       ``(A) a compilation and summary of the information provided 
     by recipients of funding for such activities under this 
     title;
       ``(B) a summary describing the funding received under this 
     title and the progress of the recipients of the funding in 
     achieving the measurable goals described in section 
     204(d)(2); and
       ``(C) a summary of implications of research outcomes on 
     practice.
       ``(m)(1) If the Director determines that an entity that 
     receives funding under this title

[[Page 10969]]

     fails to comply with the applicable requirements of this Act, 
     or to make progress toward achieving the measurable goals 
     described in section 204(d)(2), with respect to the covered 
     activities involved, the Director shall utilize available 
     monitoring and enforcement measures.
       ``(2) As part of the annual report required under 
     subsection (l), the Secretary shall describe each action 
     taken by the Secretary under paragraph (1) and the outcomes 
     of such action.''.

     SEC. 434. INTERAGENCY COMMITTEE.

       Section 203 (29 U.S.C. 763) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1)--
       (i) by striking ``conducting rehabilitation research'' and 
     inserting ``conducting disability, independent living, and 
     rehabilitation research'';
       (ii) by striking ``chaired by the Director'' and inserting 
     ``chaired by the Secretary, or the Secretary's designee,'';
       (iii) by inserting ``the Assistant Secretary of Labor for 
     Disability Employment Policy, the Secretary of Defense, the 
     Administrator of the Administration for Community Living,'' 
     after ``Assistant Secretary for Special Education and 
     Rehabilitative Services,''; and
       (iv) by striking ``and the Director of the National Science 
     Foundation.'' and inserting ``the Director of the National 
     Science Foundation and the Administrator of the Small 
     Business Administration.''; and
       (B) in paragraph (2), by inserting ``, and for not less 
     than 1 of such meetings at least every 2 years, the Committee 
     shall invite policymakers, representatives from other Federal 
     agencies conducting relevant research, individuals with 
     disabilities, organizations representing individuals with 
     disabilities, researchers, and providers, to offer input on 
     the Committee's work, including the development and 
     implementation of the strategic plan required under 
     subsection (c)'' after ``each year'';
       (2) in subsection (b)--
       (A) in paragraph (1)--
       (i) by striking ``from targeted individuals'' and inserting 
     ``individuals with disabilities''; and
       (ii) by inserting ``independent living and'' before 
     ``rehabilitation''; and
       (B) in paragraph (2)--
       (i) in subparagraph (A), by inserting ``independent living 
     research,'' after ``assistive technology research,'';
       (ii) in subparagraph (B), by inserting ``, independent 
     living research,'' after ``technology research'';
       (iii) in subparagraph (D), by striking ``and research that 
     incorporates the principles of universal design'' and 
     inserting ``, independent living research, and research that 
     incorporates the principles of universal design''; and
       (iv) in subparagraph (E), by striking ``and research that 
     incorporates the principles of universal design.'' and 
     inserting ``, independent living research, and research that 
     incorporates the principles of universal design.'';
       (3) by striking subsection (d);
       (4) by redesignating subsection (c) as subsection (d);
       (5) by inserting after subsection (b) the following:
       ``(c)(1) The Committee shall develop a comprehensive 
     government wide strategic plan for disability, independent 
     living, and rehabilitation research.
       ``(2) The strategic plan shall include, at a minimum--
       ``(A) a description of the--
       ``(i) measurable goals and objectives;
       ``(ii) existing resources each agency will devote to 
     carrying out the plan;
       ``(iii) timetables for completing the projects outlined in 
     the plan; and
       ``(iv) assignment of responsible individuals and agencies 
     for carrying out the research activities;
       ``(B) research priorities and recommendations;
       ``(C) a description of how funds from each agency will be 
     combined, as appropriate, for projects administered among 
     Federal agencies, and how such funds will be administered;
       ``(D) the development and ongoing maintenance of a 
     searchable government wide inventory of disability, 
     independent living, and rehabilitation research for trend and 
     data analysis across Federal agencies;
       ``(E) guiding principles, policies, and procedures, 
     consistent with the best research practices available, for 
     conducting and administering disability, independent living, 
     and rehabilitation research across Federal agencies; and
       ``(F) a summary of underemphasized and duplicative areas of 
     research.
       ``(3) The strategic plan described in this subsection shall 
     be submitted to the President and the Committee on Health, 
     Education, Labor, and Pensions of the Senate and the 
     Committee on Education and the Workforce of the House of 
     Representatives.'';
       (6) in subsection (d), as redesignated by paragraph (4)--
       (A) in the matter preceding paragraph (1), by striking 
     ``Committee on Labor and Human Resources of the Senate'' and 
     inserting ``Committee on Health, Education, Labor, and 
     Pensions of the Senate''; and
       (B) by striking paragraph (1) and inserting the following:
       ``(1) describes the progress of the Committee in fulfilling 
     the duties described in subsections (b) and (c), and 
     including specifically for subsection (c)--
       ``(A) a report of the progress made in implementing the 
     strategic plan, including progress toward implementing the 
     elements described in subsection (c)(2)(A); and
       ``(B) detailed budget information.''; and
       (7) in subsection (e), by striking paragraph (2) and 
     inserting the following:
       ``(2) the term `independent living', used in connection 
     with research, means research on issues and topics related to 
     attaining maximum self-sufficiency and function by 
     individuals with disabilities, including research on 
     assistive technology and universal design, employment, 
     education, health and wellness, and community integration and 
     participation.''.

     SEC. 435. RESEARCH AND OTHER COVERED ACTIVITIES.

       Section 204 (29 U.S.C. 764) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1)--
       (i) by striking ``pay'' and inserting ``fund'';
       (ii) by inserting ``have practical applications and'' 
     before ``maximize''; and
       (iii) by striking ``employment, independent living,'' and 
     inserting ``employment, education, independent living, health 
     and wellness,'';
       (B) in paragraph (2)--
       (i) in subparagraph (A), by inserting ``and from which the 
     research findings, conclusions, or recommendations can be 
     transferred to practice'' after ``State agencies'';
       (ii) in subparagraph (B)--

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

       ``(ii) studies and analyses of factors related to 
     industrial, vocational, educational, employment, social, 
     recreational, psychiatric, psychological, economic, and 
     health and wellness variables affecting individuals with 
     disabilities, including traditionally underserved populations 
     as described in section 21, and how those variables affect 
     such individuals' ability to live independently and their 
     participation in the work force;'';

       (II) in clause (iii), by striking ``are homebound'' and all 
     that follows and inserting ``have significant challenges 
     engaging in community life outside their homes and 
     individuals who are in institutional settings;'';
       (III) in clause (iv), by inserting ``, including the 
     principles of universal design and the interoperability of 
     products and services'' after ``disabilities'';
       (IV) in clause (v), by inserting ``, and to promoting 
     employment opportunities in competitive integrated 
     employment'' after ``employment'';
       (V) in clause (vi), by striking ``and'' after the 
     semicolon;
       (VI) in clause (vii), by striking ``and assistive 
     technology.'' and inserting ``, assistive technology, and 
     communications technology; and''; and
       (VII) by adding at the end the following:

       ``(viii) studies, analyses, and other activities affecting 
     employment outcomes as defined in section 7(11), including 
     self-employment and telecommuting, of individuals with 
     disabilities.''; and
       (C) by adding at the end the following:
       ``(3) In carrying out this section, the Director shall 
     emphasize covered activities that include plans for--
       ``(A) dissemination of high-quality materials, of 
     scientifically valid research results, or of findings, 
     conclusions, and recommendations resulting from covered 
     activities, including through electronic means (such as the 
     website of the Department of Health and Human Services), so 
     that such information is available in a timely manner to the 
     general public; or
       ``(B) the commercialization of marketable products, 
     research results, or findings, resulting from the covered 
     activities.'';
       (2) in subsection (b)--
       (A) in paragraph (1), by striking ``(18)'' both places the 
     term appears and inserting ``(17)'';
       (B) in paragraph (2)--
       (i) in subparagraph (A), by striking clauses (i) and (ii) 
     and inserting the following:
       ``(i) be operated in collaboration with institutions of 
     higher education, providers of rehabilitation services, 
     developers or providers of assistive technology devices, 
     assistive technology services, or information technology 
     devices or services, as appropriate, or providers of other 
     appropriate services; and
       ``(ii) serve as centers of national excellence and national 
     or regional resources for individuals with disabilities, as 
     well as providers, educators, and researchers.'';
       (ii) in subparagraph (B)--

       (I) in clause (i)--

       (aa) by adding ``independent living and'' after ``research 
     in'';
       (bb) by adding ``independent living and'' after ``will 
     improve''; and
       (cc) by striking ``alleviate or stabilize'' and all that 
     follows and inserting ``maximize health and function 
     (including alleviating or stabilizing conditions, or 
     preventing secondary conditions), and promote maximum social 
     and economic independence of individuals with disabilities, 
     including promoting the ability of the individuals to prepare 
     for, secure, retain, regain, or advance in employment;'';

[[Page 10970]]

       (II) by redesignating clauses (ii), (iii), and (iv), as 
     clauses (iii), (iv), and (v), respectively;
       (III) by inserting after clause (i) the following:

       ``(ii) conducting research in, and dissemination of, 
     employer-based practices to facilitate the identification, 
     recruitment, accommodation, advancement, and retention of 
     qualified individuals with disabilities;'';

       (IV) in clause (iii), as redesignated by subclause (II), by 
     inserting ``independent living and'' before ``rehabilitation 
     services'';
       (V) in clause (iv), as redesignated by subclause (II)--

       (aa) by inserting ``independent living and'' before 
     ``rehabilitation'' each place the term appears; and
       (bb) by striking ``and'' after the semicolon; and

       (VI) by striking clause (v), as redesignated by subclause 
     (II), and inserting the following:

       ``(v) serving as an informational and technical assistance 
     resource to individuals with disabilities, as well as to 
     providers, educators, and researchers, by providing outreach 
     and information that clarifies research implications for 
     practice and identifies potential new areas of research; and
       ``(vi) developing practical applications for the research 
     findings of the Centers.'';
       (iii) in subparagraph (C)--

       (I) in clause (i), by inserting ``, including research on 
     assistive technology devices, assistive technology services, 
     and accessible electronic and information technology 
     devices'' after ``research'';
       (II) in clause (ii)--

       (aa) by striking ``and social'' and inserting ``, social, 
     and economic''; and
       (bb) by inserting ``independent living and'' before 
     ``rehabilitation''; and

       (III) by striking clauses (iii) and (iv);
       (IV) by redesignating clauses (v) and (vi) as clauses (iii) 
     and (iv), respectively;
       (V) in clause (iii), as redesignated by subclause (IV), by 
     striking ``to develop'' and all that follows and inserting 
     ``that promotes the emotional, social, educational, and 
     functional growth of children who are individuals with 
     disabilities, as well as their integration in school, 
     employment, and community activities;'';
       (VI) in clause (iv), as redesignated by subclause (IV), by 
     striking ``that will improve'' and all that follows and 
     inserting ``to develop and evaluate interventions, policies, 
     and services that support families of those children and 
     adults who are individuals with disabilities;''; and
       (VII) by adding at the end the following:

       ``(v) continuation of research that will improve services 
     and policies that foster the independence and social 
     integration of individuals with disabilities, and enable 
     individuals with disabilities, including individuals with 
     intellectual disabilities and other developmental 
     disabilities, to live in their communities; and
       ``(vi) research, dissemination, and technical assistance, 
     on best practices in vocational rehabilitation, including 
     supported employment and other strategies to promote 
     competitive integrated employment for persons with the most 
     significant disabilities.'';
       (iv) by striking subparagraph (D) and inserting the 
     following:
       ``(D) Training of students preparing to be independent 
     living or rehabilitation personnel or to provide independent 
     living, rehabilitative, assistive, or supportive services 
     (such as rehabilitation counseling, personal care services, 
     direct care, job coaching, aides in school based settings, or 
     advice or assistance in utilizing assistive technology 
     devices, assistive technology services, and accessible 
     electronic and information technology devices and services) 
     shall be an important priority for each such Center.'';
       (v) in subparagraph (E), by striking ``comprehensive'';
       (vi) in subparagraph (G)(i), by inserting ``independent 
     living and'' before ``rehabilitation-related'';
       (vii) by striking subparagraph (I); and
       (viii) by redesignating subparagraphs (J) through (O) as 
     subparagraphs (I) through (N), respectively;
       (C) in paragraph (3)--
       (i) in subparagraph (A), by inserting ``independent living 
     strategies and'' before ``rehabilitation technology'';
       (ii) in subparagraph (B)--

       (I) in clause (i)(I), by inserting ``independent living 
     and'' before ``rehabilitation problems'';
       (II) in clause (ii)(II), by striking ``employment'' and 
     inserting ``educational, employment,''; and
       (III) in clause (iii)(II), by striking ``employment'' and 
     inserting ``educational, employment,'';

       (iii) in subparagraph (D)(i)(II), by striking 
     ``postschool'' and inserting ``postsecondary education, 
     competitive integrated employment, and other age-
     appropriate''; and
       (iv) in subparagraph (G)(ii), by inserting ``the impact of 
     any commercialized product researched or developed through 
     the Center,'' after ``individuals with disabilities,'';
       (D) in paragraph (4)(B)--
       (i) in clause (i)--

       (I) by striking ``vocational'' and inserting ``independent 
     living, employment,'';
       (II) by striking ``special'' and inserting ``unique''; and
       (III) by inserting ``social and functional needs, and'' 
     before ``acute care''; and

       (ii) in clause (iv), by inserting ``education, health and 
     wellness,'' after ``employment,'';
       (E) by striking paragraph (8) and inserting the following:
       ``(8) Grants may be used to conduct a program of joint 
     projects with other administrations and offices of the 
     Department of Health and Human Services, the National Science 
     Foundation, the Department of Veterans Affairs, the 
     Department of Defense, the Federal Communications Commission, 
     the National Aeronautics and Space Administration, the Small 
     Business Administration, the Department of Labor, other 
     Federal agencies, and private industry in areas of joint 
     interest involving rehabilitation.'';
       (F) by striking paragraphs (9) and (11);
       (G) by redesignating paragraphs (10), (12), (13), (14), 
     (15), (16), (17), and (18), as paragraphs (9), (10), (11), 
     (12), (13), (14), (15), and (16), respectively;
       (H) in paragraph (11), as redesignated by subparagraph 
     (G)--
       (i) in the matter preceding subparagraph (A), by striking 
     ``employment needs of individuals with disabilities, 
     including'' and inserting ``employment needs, opportunities, 
     and outcomes (including those relating to self-employment, 
     supported employment, and telecommuting) of individuals with 
     disabilities, including'';
       (ii) in subparagraph (B), by inserting ``and employment 
     related'' after ``the employment'';
       (iii) in subparagraph (E), by striking ``and'' after the 
     semicolon;
       (iv) in subparagraph (F), by striking the period at the end 
     and inserting a semicolon; and
       (v) by adding at the end the following:
       ``(G) develop models to facilitate the successful 
     transition of individuals with disabilities from 
     nonintegrated employment and employment that is compensated 
     at a wage less than the Federal minimum wage to competitive 
     integrated employment;
       ``(H) develop models to maximize opportunities for 
     integrated community living, including employment and 
     independent living, for individuals with disabilities;
       ``(I) provide training and continuing education for 
     personnel involved with community living for individuals with 
     disabilities;
       ``(J) develop model procedures for testing and evaluating 
     the community living related needs of individuals with 
     disabilities;
       ``(K) develop model training programs to teach individuals 
     with disabilities skills which will lead to integrated 
     community living and full participation in the community; and
       ``(L) develop new approaches for long-term services and 
     supports for individuals with disabilities, including 
     supports necessary for competitive integrated employment.'';
       (I) in paragraph (12), as redesignated by subparagraph 
     (G)--
       (i) in the matter preceding subparagraph (A), by inserting 
     ``an independent living or'' after ``conduct'';
       (ii) in subparagraph (D), by inserting ``independent living 
     or'' before ``rehabilitation''; and
       (iii) in the matter following subparagraph (E), by striking 
     ``National Institute on Disability and Rehabilitation 
     Research'' and inserting ``National Institute on Disability, 
     Independent Living, and Rehabilitation Research'';
       (J) in paragraph (13), as redesignated by subparagraph (G), 
     by inserting ``independent living and'' before 
     ``rehabilitation needs''; and
       (K) in paragraph (14), as redesignated by subparagraph (G), 
     by striking ``and access to gainful employment.'' and 
     inserting ``, full participation, and economic self-
     sufficiency.''; and
       (3) by adding at the end the following:
       ``(d)(1) In awarding grants, contracts, or cooperative 
     agreements under this title, the Director shall award the 
     funding on a competitive basis.
       ``(2)(A) To be eligible to receive funds under this section 
     for a covered activity, an entity described in subsection 
     (a)(1) shall submit an application to the Director at such 
     time, in such manner, and containing such information as the 
     Director may require.
       ``(B) The application shall include information 
     describing--
       ``(i) measurable goals, as established through section 1115 
     of title 31, United States Code, and a timeline and specific 
     plan for meeting the goals, that the applicant has 
     established;
       ``(ii) how the project will address 1 or more of the 
     following: commercialization of a marketable product, 
     technology transfer (if applicable), dissemination of any 
     research results, and other priorities as established by the 
     Director; and
       ``(iii) how the applicant will quantifiably measure the 
     goals to determine whether such goals have been accomplished.
       ``(3)(A) In the case of an application for funding under 
     this section to carry out a covered activity that results in 
     the development of a marketable product, the application 
     shall also include a commercialization and dissemination 
     plan, as appropriate, containing commercialization and 
     marketing

[[Page 10971]]

     strategies for the product involved, and strategies for 
     disseminating information about the product. The funding 
     received under this section shall not be used to carry out 
     the commercialization and marketing strategies.
       ``(B) In the case of any other application for funding to 
     carry out a covered activity under this section, the 
     application shall also include a dissemination plan, 
     containing strategies for disseminating educational 
     materials, research results, or findings, conclusions, and 
     recommendations, resulting from the covered activity.''.

     SEC. 436. DISABILITY, INDEPENDENT LIVING, AND REHABILITATION 
                   RESEARCH ADVISORY COUNCIL.

       Section 205 (29 U.S.C. 765) is amended--
       (1) in the section heading, by inserting ``disability, 
     independent living, and'' before ``rehabilitation'';
       (2) in subsection (a)--
       (A) by striking ``Department of Education a Rehabilitation 
     Research Advisory Council'' and inserting ``Department of 
     Health and Human Services a Disability, Independent Living, 
     and Rehabilitation Research Advisory Council''; and
       (B) by inserting ``not less than'' after ``composed of'';
       (3) by striking subsection (c) and inserting the following:
       ``(c) Qualifications.--Members of the Council shall be 
     generally representative of the community of disability, 
     independent living, and rehabilitation professionals, the 
     community of disability, independent living, and 
     rehabilitation researchers, the directors of independent 
     living centers and community rehabilitation programs, the 
     business community (including a representative of the small 
     business community) that has experience with the system of 
     vocational rehabilitation services and independent living 
     services carried out under this Act and with hiring 
     individuals with disabilities, the community of stakeholders 
     involved in assistive technology, the community of covered 
     school professionals, and the community of individuals with 
     disabilities, and the individuals' representatives. At least 
     one-half of the members shall be individuals with 
     disabilities or the individuals' representatives.''; and
       (4) in subsection (g), by striking ``Department of 
     Education'' and inserting ``Department of Health and Human 
     Services''.

     SEC. 437. DEFINITION OF COVERED SCHOOL.

       Title II (29 U.S.C. 760 et seq.) is amended by adding at 
     the end the following:

     ``SEC. 206. DEFINITION OF COVERED SCHOOL.

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

     Subtitle D--Professional Development and Special Projects and 
                             Demonstration

     SEC. 441. PURPOSE; TRAINING.

       (a) Purpose.--Section 301(a) (29 U.S.C. 771(a)) is 
     amended--
       (1) in paragraph (2), by inserting ``and'' after the 
     semicolon;
       (2) by striking paragraphs (3) and (4);
       (3) by redesignating paragraph (5) as paragraph (3); and
       (4) in paragraph (3), as redesignated by paragraph (3), by 
     striking ``workforce investment systems'' and inserting 
     ``workforce development systems''.
       (b) Training.--Section 302 (29 U.S.C. 772) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1)--
       (i) in subparagraph (E), by striking all after ``deliver'' 
     and inserting ``supported employment services and customized 
     employment services to individuals with the most significant 
     disabilities;'';
       (ii) in subparagraph (F), by striking ``and'' after the 
     semicolon;
       (iii) in subparagraph (G), by striking the period at the 
     end and inserting ``; and''; and
       (iv) by adding at the end the following:
       ``(H) personnel trained in providing assistive technology 
     services.'';
       (B) in paragraph (4)--
       (i) in the matter preceding subparagraph (A), by striking 
     ``title I of the Workforce Investment Act of 1998'' and 
     inserting ``subtitle B of title I of the Workforce Innovation 
     and Opportunity Act'';
       (ii) in subparagraph (A), by striking ``workforce 
     investment system'' and inserting ``workforce development 
     system''; and
       (iii) in subparagraph (B), by striking ``section 134(c) of 
     the Workforce Investment Act of 1998.'' and inserting 
     ``section 121(e) of the Workforce Innovation and Opportunity 
     Act.''; and
       (C) in paragraph (5), by striking ``title I of the 
     Workforce Investment Act of 1998'' and inserting ``subtitle B 
     of title I of the Workforce Innovation and Opportunity Act'';
       (2) in subsection (b)(1)(B)(i), by striking ``or 
     prosthetics and orthotics'' and inserting ``prosthetics and 
     orthotics, vision rehabilitation therapy, orientation and 
     mobility instruction, or low vision therapy'';
       (3) in subsection (g)--
       (A) in the subsection heading, by striking ``and In-Service 
     Training'';
       (B) in paragraph (1), by adding after the period the 
     following: ``Any technical assistance provided to community 
     rehabilitation programs shall be focused on the employment 
     outcome of competitive integrated employment for individuals 
     with disabilities.''; and
       (C) by striking paragraph (3);
       (4) in subsection (h), by striking ``section 306'' and 
     inserting ``section 304''; and
       (5) in subsection (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, $36,257,000 
     for fiscal year 2016, $37,009,000 for fiscal year 2017, 
     $37,830,000 for fiscal year 2018, $38,719,000 for fiscal year 
     2019, and $39,540,000 for fiscal year 2020.''.

     SEC. 442. DEMONSTRATION, TRAINING, AND TECHNICAL ASSISTANCE 
                   PROGRAMS.

       Section 303 (29 U.S.C. 773) is amended--
       (1) in subsection (b)--
       (A) in paragraph (1), by striking ``section 306'' and 
     inserting ``section 304'';
       (B) in paragraph (3)(A), by striking ``National Institute 
     on Disability and Rehabilitation Research'' and inserting 
     ``National Institute on Disability, Independent Living, and 
     Rehabilitation Research'';
       (C) in paragraph (5)--
       (i) in subparagraph (A)--

       (I) by striking clause (i) and inserting the following:

       ``(i) initiatives focused on improving transition from 
     education, including postsecondary education, to employment, 
     particularly in competitive integrated employment, for youth 
     who are individuals with significant disabilities;''; and

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

       ``(iii) increasing competitive integrated employment for 
     individuals with significant disabilities.''; and
       (ii) in subparagraph (B)(viii), by striking ``under title I 
     of the Workforce Investment Act of 1998'' and inserting 
     ``under subtitle B of title I of the Workforce Innovation and 
     Opportunity Act''; and
       (D) by striking paragraph (6);
       (2) in subsection (c)--
       (A) in paragraph (2)--
       (i) in subparagraph (E), by striking ``and'' after the 
     semicolon;
       (ii) by redesignating subparagraph (F) as subparagraph (G); 
     and
       (iii) by inserting after subparagraph (E) the following:
       ``(F) to provide support and guidance in helping 
     individuals with significant disabilities, including students 
     with disabilities, transition to competitive integrated 
     employment; and'';
       (B) in paragraph (4)--
       (i) in subparagraph (A)(ii)--

       (I) by inserting ``the'' after ``closely with''; and
       (II) by inserting ``, the community parent resource centers 
     established pursuant to section 672 of such Act, and the 
     eligible entities receiving awards under section 673 of such 
     Act'' after ``Individuals with Disabilities Education Act''; 
     and

       (ii) in subparagraph (C), by inserting ``, and demonstrate 
     the capacity for serving,'' after ``shall serve''; and
       (C) by adding at the end the following:
       ``(8) Reservation.--From the amount appropriated to carry 
     out this section for a fiscal year, 20 percent of such amount 
     or $500,000, whichever is less, may be reserved to carry out 
     paragraph (6).''; and
       (3) by striking subsection (e) and inserting the following:
       ``(e) Authorization of Appropriations.--For the purpose of 
     carrying out this section there are authorized to be 
     appropriated $5,796,000 for fiscal year 2015, $6,244,000 for 
     fiscal year 2016, $6,373,000 for fiscal year 2017, $6,515,000 
     for fiscal year 2018, $6,668,000 for fiscal year 2019, and 
     $6,809,000 for fiscal year 2020.''.

     SEC. 443. MIGRANT AND SEASONAL FARMWORKERS; RECREATIONAL 
                   PROGRAMS.

       The Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.) is 
     amended--
       (1) by striking sections 304 and 305;
       (2) by redesignating section 306 as section 304.

               Subtitle E--National Council on Disability

     SEC. 451. ESTABLISHMENT.

       Section 400 (29 U.S.C. 780) is amended--
       (1) in subsection (a)(1)--
       (A) by redesignating subparagraph (C) as subparagraph (D);
       (B) by striking subparagraphs (A) and (B) and inserting the 
     following:
       ``(A) There is established within the Federal Government a 
     National Council on Disability (referred to in this title as 
     the `National Council'), which, subject to subparagraph (B), 
     shall be composed of 9 members, of which--
       ``(i) 5 shall be appointed by the President;
       ``(ii) 1 shall be appointed by the Majority Leader of the 
     Senate;
       ``(iii) 1 shall be appointed by the Minority Leader of the 
     Senate;
       ``(iv) 1 shall be appointed by the Speaker of the House of 
     Representatives; and
       ``(v) 1 shall be appointed by the Minority Leader of the 
     House of Representatives.
       ``(B) The National Council shall transition from 15 members 
     (as of the date of enactment of the Workforce Innovation and 
     Opportunity Act) to 9 members as follows:
       ``(i) On the first 4 expirations of National Council terms 
     (after that date), replacement

[[Page 10972]]

     members shall be appointed to the National Council in the 
     following order and manner:
       ``(I) 1 shall be appointed by the Majority Leader of the 
     Senate.
       ``(II) 1 shall be appointed by the Minority Leader of the 
     Senate.
       ``(III) 1 shall be appointed by the Speaker of the House of 
     Representatives.
       ``(IV) 1 shall be appointed by the Minority Leader of the 
     House of Representatives.
       ``(ii) On the next 6 expirations of National Council terms 
     (after the 4 expirations described in clause (i) occur), no 
     replacement members shall be appointed to the National 
     Council.
       ``(C) For any vacancy on the National Council that occurs 
     after the transition described in subparagraph (B), the 
     vacancy shall be filled in the same manner as the original 
     appointment was made.''; and
       (C) in subparagraph (D), as redesignated by subparagraph 
     (A) of this paragraph, in the first sentence--
       (i) by inserting ``national leaders on disability policy,'' 
     after ``guardians of individuals with disabilities,''; and
       (ii) by striking ``policy or programs'' and inserting 
     ``policy or issues that affect individuals with 
     disabilities'';
       (2) in subsection (b), by striking ``, except'' and all 
     that follows and inserting a period; and
       (3) in subsection (d), by striking ``Eight'' and inserting 
     ``Five''.

     SEC. 452. REPORT.

       Section 401 (29 U.S.C. 781) is amended--
       (1) in paragraphs (1) and (3) of subsection (a), by 
     striking ``National Institute on Disability and 
     Rehabilitation Research'' and inserting ``National Institute 
     on Disability, Independent Living, and Rehabilitation 
     Research''; and
       (2) by striking subsection (c).

     SEC. 453. AUTHORIZATION OF APPROPRIATIONS.

       Section 405 (29 U.S.C. 785) is amended by striking ``such 
     sums as may be necessary for each of the fiscal years 1999 
     through 2003.'' and inserting ``$3,186,000 for fiscal year 
     2015, $3,432,000 for fiscal year 2016, $3,503,000 for fiscal 
     year 2017, $3,581,000 for fiscal year 2018, $3,665,000 for 
     fiscal year 2019, and $3,743,000 for fiscal year 2020.''.

                    Subtitle F--Rights and Advocacy

     SEC. 456. INTERAGENCY COMMITTEE, BOARD, AND COUNCIL.

       (a) Interagency Committee.--Section 501 (29 U.S.C. 791) is 
     amended--
       (1) by striking subsection (f); and
       (2) by redesignating subsection (g) as subsection (f).
       (b) Architectural and Transportation Barriers Compliance 
     Board.--Section 502(j) (29 U.S.C. 792(j)) is amended by 
     striking ``such sums as may be necessary for each of the 
     fiscal years 1999 through 2003.'' and inserting ``$7,448,000 
     for fiscal year 2015, $8,023,000 for fiscal year 2016, 
     $8,190,000 for fiscal year 2017, $8,371,000 for fiscal year 
     2018, $8,568,000 for fiscal year 2019, and $8,750,000 for 
     fiscal year 2020.''.
       (c) Program or Activity.--Section 504(b)(2)(B) (29 U.S.C. 
     794(b)(2)(B)) is amended by striking ``vocational education'' 
     and inserting ``career and technical education''.
       (d) Interagency Disability Coordinating Council.--Section 
     507(a) (29 U.S.C. 794c(a)) is amended by inserting ``the 
     Chairperson of the National Council on Disability,'' before 
     ``and such other''.

     SEC. 457. PROTECTION AND ADVOCACY OF INDIVIDUAL RIGHTS.

       Section 509 (29 U.S.C. 794e) is amended--
       (1) in subsection (c)(1)(A), by inserting ``a grant, 
     contract, or cooperative agreement for'' before ``training'';
       (2) in subsection (f)(2)--
       (A) by striking ``general'' and all that follows through 
     ``records'' and inserting ``general authorities, including 
     the authority to access records''; and
       (B) by inserting ``of title I'' after ``subtitle C''; and
       (3) in subsection (l), by striking ``such sums as may be 
     necessary for each of the fiscal years 1999 through 2003.'' 
     and inserting ``$17,650,000 for fiscal year 2015, $19,013,000 
     for fiscal year 2016, $19,408,000 for fiscal year 2017, 
     $19,838,000 for fiscal year 2018, $20,305,000 for fiscal year 
     2019, and $20,735,000 for fiscal year 2020.''.

     SEC. 458. LIMITATIONS ON USE OF SUBMINIMUM WAGE.

       (a) In General.--Title V (29 U.S.C. 791 et seq.) is amended 
     by adding at the end the following:

     ``SEC. 511. LIMITATIONS ON USE OF SUBMINIMUM WAGE.

       ``(a) In General.--No entity, including a contractor or 
     subcontractor of the entity, which holds a special wage 
     certificate as described in section 14(c) of the Fair Labor 
     Standards Act of 1938 (29 U.S.C. 214(c)) may compensate an 
     individual with a disability who is age 24 or younger at a 
     wage (referred to in this section as a `subminimum wage') 
     that is less than the Federal minimum wage unless 1 of the 
     following conditions is met:
       ``(1) The individual is currently employed, as of the 
     effective date of this section, by an entity that holds a 
     valid certificate pursuant to section 14(c) of the Fair Labor 
     Standards Act of 1938.
       ``(2) The individual, before beginning work that is 
     compensated at a subminimum wage, has completed, and produces 
     documentation indicating completion of, each of the following 
     actions:
       ``(A) The individual has received pre-employment transition 
     services that are available to the individual under section 
     113, or transition services under the Individuals with 
     Disabilities Education Act (20 U.S.C. 1400 et seq.) such as 
     transition services available to the individual under section 
     614(d) of that Act (20 U.S.C. 1414(d)).
       ``(B) The individual has applied for vocational 
     rehabilitation services under title I, with the result that--
       ``(i)(I) the individual has been found ineligible for such 
     services pursuant to that title and has documentation 
     consistent with section 102(a)(5)(C) regarding the 
     determination of ineligibility; or
       ``(II)(aa) the individual has been determined to be 
     eligible for vocational rehabilitation services;
       ``(bb) the individual has an individualized plan for 
     employment under section 102;
       ``(cc) the individual has been working toward an employment 
     outcome specified in such individualized plan for employment, 
     with appropriate supports and services, including supported 
     employment services, for a reasonable period of time without 
     success; and
       ``(dd) the individual's vocational rehabilitation case is 
     closed; and
       ``(ii)(I) the individual has been provided career 
     counseling, and information and referrals to Federal and 
     State programs and other resources in the individual's 
     geographic area that offer employment-related services and 
     supports designed to enable the individual to explore, 
     discover, experience, and attain competitive integrated 
     employment; and
       ``(II) such counseling and information and referrals are 
     not for employment compensated at a subminimum wage provided 
     by an entity described in this subsection, and such 
     employment-related services are not compensated at a 
     subminimum wage and do not directly result in employment 
     compensated at a subminimum wage provided by an entity 
     described in this subsection.
       ``(b) Construction.--
       ``(1) Rule.--Nothing in this section shall be construed 
     to--
       ``(A) change the purpose of this Act described in section 
     2(b)(2), to empower individuals with disabilities to maximize 
     opportunities for competitive integrated employment; or
       ``(B) preference employment compensated at a subminimum 
     wage as an acceptable vocational rehabilitation strategy or 
     successful employment outcome, as defined in section 7(11).
       ``(2) Contracts.--A local educational agency (as defined in 
     section 9101 of the Elementary and Secondary Education Act of 
     1965 (20 U.S.C. 7801)) or a State educational agency (as 
     defined in such section) may not enter into a contract or 
     other arrangement with an entity described in subsection (a) 
     for the purpose of operating a program for an individual who 
     is age 24 or younger under which work is compensated at a 
     subminimum wage.
       ``(3) Voidability.--The provisions in this section shall be 
     construed in a manner consistent with the provisions of the 
     Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.), as 
     amended before or after the effective date of this Act.
       ``(c) During Employment.--
       ``(1) In general.--The entity described in subsection (a) 
     may not continue to employ an individual, regardless of age, 
     at a subminimum wage unless, after the individual begins work 
     at that wage, at the intervals described in paragraph (2), 
     the individual (with, in an appropriate case, the 
     individual's parent or guardian)--
       ``(A) is provided by the designated State unit career 
     counseling, and information and referrals described in 
     subsection (a)(2)(B)(ii), delivered in a manner that 
     facilitates independent decisionmaking and informed choice, 
     as the individual makes decisions regarding employment and 
     career advancement; and
       ``(B) is informed by the employer of self-advocacy, self-
     determination, and peer mentoring training opportunities 
     available in the individual's geographic area, provided by an 
     entity that does not have any financial interest in the 
     individual's employment outcome, under applicable Federal and 
     State programs or other sources.
       ``(2) Timing.--The actions required under subparagraphs (A) 
     and (B) of paragraph (1) shall be carried out once every 6 
     months for the first year of the individual's employment at a 
     subminimum wage, and annually thereafter for the duration of 
     such employment.
       ``(3) Small business exception.--In the event that the 
     entity described in subsection (a) is a business with fewer 
     than 15 employees, such entity can satisfy the requirements 
     of subparagraphs (A) and (B) of paragraph (1) by referring 
     the individual, at the intervals described in paragraph (2), 
     to the designated State unit for the counseling, information, 
     and referrals described in paragraph (1)(A) and the 
     information described in paragraph (1)(B).
       ``(d) Documentation.--
       ``(1) In general.--The designated State unit, in 
     consultation with the State educational agency, shall develop 
     a new process or utilize an existing process, consistent with 
     guidelines developed by the Secretary, to document the 
     completion of the actions described in subparagraphs (A) and 
     (B) of

[[Page 10973]]

     subsection (a)(2) by a youth with a disability who is an 
     individual with a disability.
       ``(2) Documentation process.--Such process shall require 
     that--
       ``(A) in the case of a student with a disability, for 
     documentation of actions described in subsection (a)(2)(A)--
       ``(i) if such a student with a disability receives and 
     completes each category of required activities in section 
     113(b), such completion of services shall be documented by 
     the designated State unit in a manner consistent with this 
     section;
       ``(ii) if such a student with a disability receives and 
     completes any transition services available for students with 
     disabilities under the Individuals with Disabilities 
     Education Act, including those provided under section 
     614(d)(1)(A)(i)(VIII) (20 U.S.C. 1414(d)(1)(A)(i)(VIII)), 
     such completion of services shall be documented by the 
     appropriate school official responsible for the provision of 
     such transition services, in a manner consistent with this 
     section; and
       ``(iii) the designated State unit shall provide the final 
     documentation, in a form and manner consistent with this 
     section, of the completion of pre-employment transition 
     services as described in clause (i), or transition services 
     under the Individuals with Disabilities Education Act as 
     described in clause (ii), to the student with a disability 
     within a reasonable period of time following the completion; 
     and
       ``(B) when an individual has completed the actions 
     described in subsection (a)(2)(B), the designated State unit 
     shall provide the individual a document indicating such 
     completion, in a manner consistent with this section, within 
     a reasonable time period following the completion of the 
     actions described in this subparagraph.
       ``(e) Verification.--
       ``(1) Before employment.--Before an individual covered by 
     subsection (a)(2) begins work for an entity described in 
     subsection (a) at a subminimum wage, the entity shall review 
     such documentation received by the individual under 
     subsection (d), and provided by the individual to the entity, 
     that indicates that the individual has completed the actions 
     described in subparagraphs (A) and (B) of subsection (a)(2) 
     and the entity shall maintain copies of such documentation.
       ``(2) During employment.--
       ``(A) In general.--In order to continue to employ an 
     individual at a subminimum wage, the entity described in 
     subsection (a) shall verify completion of the requirements of 
     subsection (c), including reviewing any relevant documents 
     provided by the individual, and shall maintain copies of the 
     documentation described in subsection (d).
       ``(B) Review of documentation.--The entity described in 
     subsection (a) shall be subject to review of individual 
     documentation described in subsection (d) by a representative 
     working directly for the designated State unit or the 
     Department of Labor at such a time and in such a manner as 
     may be necessary to fulfill the intent of this section, 
     consistent with regulations established by the designated 
     State unit or the Secretary of Labor.
       ``(f) Federal Minimum Wage.--In this section, the term 
     `Federal minimum wage' means the rate applicable under 
     section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 
     U.S.C. 206(a)(1)).''.
       (b) Effective Date.--This section takes effect 2 years 
     after the date of enactment of the Workforce Innovation and 
     Opportunity Act.

 Subtitle G--Employment Opportunities for Individuals With Disabilities

     SEC. 461. EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH 
                   DISABILITIES.

       Title VI (29 U.S.C. 795 et seq.) is amended--
       (1) by striking part A;
       (2) by striking the part heading relating to part B;
       (3) by redesignating sections 621 through 628 as sections 
     602 through 609, respectively;
       (4) in section 602, as redesignated by paragraph (3)--
       (A) by striking ``part'' and inserting ``title''; and
       (B) by striking ``individuals with the most significant 
     disabilities'' and all that follows and inserting 
     ``individuals with the most significant disabilities, 
     including youth with the most significant disabilities, to 
     enable such individuals to achieve an employment outcome of 
     supported employment in competitive integrated employment.'';
       (5) in section 603, as redesignated by paragraph (3)--
       (A) in subsection (a)--
       (i) in paragraph (1)--

       (I) in the matter preceding subparagraph (A), by striking 
     ``part'' and inserting ``title'';
       (II) in subparagraph (A), by inserting ``amount'' after 
     ``whichever''; and
       (III) in subparagraph (B)--

       (aa) by striking ``part for the fiscal year'' and inserting 
     ``title for the fiscal year'';
       (bb) by striking ``this part in fiscal year 1992'' and 
     inserting ``part B of this title (as in effect on September 
     30, 1992) in fiscal year 1992''; and
       (cc) by inserting ``amount'' after ``whichever''; and
       (ii) in paragraph (2)(B), by striking ``one-eighth of one 
     percent'' and inserting ``\1/8\ of 1 percent'';
       (B) in subsection (b)--
       (i) by inserting ``under subsection (a)'' after ``allotment 
     to a State'';
       (ii) by striking ``part'' each place the term appears and 
     inserting ``title''; and
       (iii) by striking ``one or more'' and inserting ``1 or 
     more''; and
       (C) by adding at the end the following:
       ``(c) Limitations on Administrative Costs.--A State that 
     receives an allotment under this title shall not use more 
     than 2.5 percent of such allotment to pay for administrative 
     costs.
       ``(d) Services for Youth With the Most Significant 
     Disabilities.--A State that receives an allotment under this 
     title shall reserve and expend half of such allotment for the 
     provision of supported employment services, including 
     extended services, to youth with the most significant 
     disabilities in order to assist those youth in achieving an 
     employment outcome in supported employment.'';
       (6) by striking section 604, as redesignated by paragraph 
     (3), and inserting the following:

     ``SEC. 604. AVAILABILITY OF SERVICES.

       ``(a) Supported Employment Services.--Funds provided under 
     this title may be used to provide supported employment 
     services to individuals who are eligible under this title.
       ``(b) Extended Services.--
       ``(1) In general.--Except as provided in paragraph (2), 
     funds provided under this title, or title I, may not be used 
     to provide extended services to individuals under this title 
     or title I.
       ``(2) Extended services for youth with the most significant 
     disabilities.--Funds allotted under this title, or title I, 
     and used for the provision of services under this title to 
     youth with the most significant disabilities pursuant to 
     section 603(d), may be used to provide extended services to 
     youth with the most significant disabilities. Such extended 
     services shall be available for a period not to exceed 4 
     years.'';
       (7) in section 605, as redesignated by paragraph (3)--
       (A) in the matter preceding paragraph (1)--
       (i) by inserting ``, including a youth with a disability,'' 
     after ``An individual''; and
       (ii) by striking ``this part'' and inserting ``this 
     title'';
       (B) in paragraph (1), by inserting ``under title I'' after 
     ``rehabilitation services'';
       (C) in paragraph (2), by striking ``and'' after the 
     semicolon;
       (D) by redesignating paragraph (3) as paragraph (4);
       (E) by inserting after paragraph (2) the following:
       ``(3) for purposes of activities carried out with funds 
     described in section 603(d), the individual is a youth with a 
     disability, as defined in section (7)(42); and''; and
       (F) in paragraph (4), as redesignated by subparagraph (D), 
     by striking ``assessment of rehabilitation needs'' and 
     inserting ``assessment of the rehabilitation needs'';
       (8) in section 606, as redesignated by paragraph (3)--
       (A) in subsection (a)--
       (i) by striking ``this part'' and inserting ``this title''; 
     and
       (ii) by inserting ``, including youth with the most 
     significant disabilities,'' after ``individuals'';
       (B) in subsection (b)--
       (i) in paragraph (1), by striking ``this part'' and 
     inserting ``this title'';
       (ii) in paragraph (2), by inserting ``, including youth,'' 
     after ``rehabilitation needs of individuals'';
       (iii) in paragraph (3)--

       (I) by inserting ``, including youth with the most 
     significant disabilities,'' after ``provided to 
     individuals''; and
       (II) by striking ``section 622'' and inserting ``section 
     603'';

       (iv) by striking paragraph (7);
       (v) by redesignating paragraph (6) as paragraph (7);
       (vi) by inserting after paragraph (5) the following:
       ``(6) describe the activities to be conducted pursuant to 
     section 603(d) for youth with the most significant 
     disabilities, including--
       ``(A) the provision of extended services for a period not 
     to exceed 4 years; and
       ``(B) how the State will use the funds reserved in section 
     603(d) to leverage other public and private funds to increase 
     resources for extended services and expand supported 
     employment opportunities for youth with the most significant 
     disabilities;'';
       (vii) in paragraph (7), as redesignated by clause (v)--

       (I) in subparagraph (A), by striking ``under this part'' 
     both places the term appears and inserting ``under this 
     title'';
       (II) in subparagraph (B), by inserting ``, including youth 
     with the most significant disabilities,'' after ``significant 
     disabilities'';
       (III) in subparagraph (C)--

       (aa) in clause (i), by inserting ``, including, as 
     appropriate, for youth with the most significant 
     disabilities, transition services and pre-employment 
     transition services'' after ``services to be provided'';
       (bb) in clause (ii), by inserting ``, including the 
     extended services that may be provided to youth with the most 
     significant disabilities under this title, in accordance with 
     an approved individualized plan for employment, for a period 
     not to exceed 4 years'' after ``services needed''; and

[[Page 10974]]

       (cc) in clause (iii)--
       (AA) by striking ``identify the source of extended 
     services,'' and inserting ``identify, as appropriate, the 
     source of extended services,'';
       (BB) by striking ``or to the extent'' and inserting ``or 
     indicate''; and
       (CC) by striking ``employment is developed'' and all that 
     follows and inserting ``employment is developed;''

       (IV) in subparagraph (D), by striking ``under this part'' 
     and inserting ``under this title'';
       (V) in subparagraph (F), by striking ``and'' after the 
     semicolon;
       (VI) in subparagraph (G), by striking ``for the maximum 
     number of hours possible''; and
       (VII) by adding at the end the following:

       ``(H) the State agencies designated under paragraph (1) 
     will expend not more than 2.5 percent of the allotment of the 
     State under this title for administrative costs of carrying 
     out this title; and
       ``(I) with respect to supported employment services 
     provided to youth with the most significant disabilities 
     pursuant to section 603(d), the designated State agency will 
     provide, directly or indirectly through public or private 
     entities, non-Federal contributions in an amount that is not 
     less than 10 percent of the costs of carrying out such 
     services; and'';
       (9) by striking section 607, as redesignated by paragraph 
     (3), and inserting the following:

     ``SEC. 607. RESTRICTION.

       ``Each State agency designated under section 606(b)(1) 
     shall collect the information required by section 101(a)(10) 
     separately for--
       ``(1) eligible individuals receiving supported employment 
     services under this title;
       ``(2) eligible individuals receiving supported employment 
     services under title I;
       ``(3) eligible youth receiving supported employment 
     services under this title; and
       ``(4) eligible youth receiving supported employment 
     services under title I.'';
       (10) in section 608(b), as redesignated by paragraph (3), 
     by striking ``this part'' both places the terms appears and 
     inserting ``this title''; and
       (11) by striking section 609, as redesignated by paragraph 
     (3), and inserting the following:

     ``SEC. 609. ADVISORY COMMITTEE ON INCREASING COMPETITIVE 
                   INTEGRATED EMPLOYMENT FOR INDIVIDUALS WITH 
                   DISABILITIES.

       ``(a) Establishment.--Not later than 60 days after the date 
     of enactment of the Workforce Innovation and Opportunity Act, 
     the Secretary of Labor shall establish an Advisory Committee 
     on Increasing Competitive Integrated Employment for 
     Individuals with Disabilities (referred to in this section as 
     the `Committee').
       ``(b) Appointment and Vacancies.--
       ``(1) Appointment.--The Secretary of Labor shall appoint 
     the members of the Committee described in subsection (c)(6), 
     in accordance with subsection (c).
       ``(2) Vacancies.--Any vacancy in the Committee shall not 
     affect its powers, but shall be filled in the same manner, in 
     accordance with the same paragraph of subsection (c), as the 
     original appointment or designation was made.
       ``(c) Composition.--The Committee shall be composed of--
       ``(1) the Assistant Secretary for Disability Employment 
     Policy, the Assistant Secretary for Employment and Training, 
     and the Administrator of the Wage and Hour Division, of the 
     Department of Labor;
       ``(2) the Commissioner of the Administration on 
     Intellectual and Developmental Disabilities, or the 
     Commissioner's designee;
       ``(3) the Director of the Centers for Medicare & Medicaid 
     Services of the Department of Health and Human Services, or 
     the Director's designee;
       ``(4) the Commissioner of Social Security, or the 
     Commissioner's designee;
       ``(5) the Commissioner of the Rehabilitation Services 
     Administration, or the Commissioner's designee; and
       ``(6) representatives from constituencies consisting of--
       ``(A) self-advocates for individuals with intellectual or 
     developmental disabilities;
       ``(B) providers of employment services, including those 
     that employ individuals with intellectual or developmental 
     disabilities in competitive integrated employment;
       ``(C) representatives of national disability advocacy 
     organizations for adults with intellectual or developmental 
     disabilities;
       ``(D) experts with a background in academia or research and 
     expertise in employment and wage policy issues for 
     individuals with intellectual or developmental disabilities;
       ``(E) representatives from the employer community or 
     national employer organizations; and
       ``(F) other individuals or representatives of organizations 
     with expertise on increasing opportunities for competitive 
     integrated employment for individuals with disabilities.
       ``(d) Chairperson.--The Committee shall elect a Chairperson 
     of the Committee from among the appointed members of the 
     Committee.
       ``(e) Meetings.--The Committee shall meet at the call of 
     the Chairperson, but not less than 8 times.
       ``(f) Duties.--The Committee shall study, and prepare 
     findings, conclusions, and recommendations for the Secretary 
     of Labor on--
       ``(1) ways to increase the employment opportunities for 
     individuals with intellectual or developmental disabilities 
     or other individuals with significant disabilities in 
     competitive integrated employment;
       ``(2) the use of the certificate program carried out under 
     section 14(c) of the Fair Labor Standards Act of 1938 (29 
     U.S.C. 214(c)) for the employment of individuals with 
     intellectual or developmental disabilities, or other 
     individuals with significant disabilities; and
       ``(3) ways to improve oversight of the use of such 
     certificates.
       ``(g) Committee Personnel Matters.--
       ``(1) Travel expenses.--The members of the Committee shall 
     not receive compensation for the performance of services for 
     the Committee, but shall be allowed reasonable travel 
     expenses, including per diem in lieu of subsistence, at rates 
     authorized for employees of agencies under subchapter I of 
     chapter 57 of title 5, United States Code, while away from 
     their homes or regular places of business in the performance 
     of services for the Committee. Notwithstanding section 1342 
     of title 31, United States Code, the Secretary may accept the 
     voluntary and uncompensated services of members of the 
     Committee.
       ``(2) Staff.--The Secretary of Labor may designate such 
     personnel as may be necessary to enable the Committee to 
     perform its duties.
       ``(3) Detail of government employees.--Any Federal 
     Government employee, with the approval of the head of the 
     appropriate Federal agency, may be detailed to the Committee 
     without reimbursement, and such detail shall be without 
     interruption or loss of civil service status or privilege.
       ``(4) Facilities, equipment, and services.--The Secretary 
     of Labor shall make available to the Committee, under such 
     arrangements as may be appropriate, necessary equipment, 
     supplies, and services.
       ``(h) Reports.--
       ``(1) Interim and final reports.--The Committee shall 
     prepare and submit to the Secretary of Labor, as well as the 
     Committee on Health, Education, Labor, and Pensions of the 
     Senate and the Committee on Education and the Workforce of 
     the House of Representatives--
       ``(A) an interim report that summarizes the progress of the 
     Committee, along with any interim findings, conclusions, and 
     recommendations as described in subsection (f); and
       ``(B) a final report that states final findings, 
     conclusions, and recommendations as described in subsection 
     (f).
       ``(2) Preparation and submission.--The reports shall be 
     prepared and submitted--
       ``(A) in the case of the interim report, not later than 1 
     year after the date on which the Committee is established 
     under subsection (a); and
       ``(B) in the case of the final report, not later than 2 
     years after the date on which the Committee is established 
     under subsection (a).
       ``(i) Termination.--The Committee shall terminate on the 
     day after the date on which the Committee submits the final 
     report.

     ``SEC. 610. AUTHORIZATION OF APPROPRIATIONS.

       ``There is authorized to be appropriated to carry out this 
     title $27,548,000 for fiscal year 2015, $29,676,000 for 
     fiscal year 2016, $30,292,000 for fiscal year 2017, 
     $30,963,000 for fiscal year 2018, $31,691,000 for fiscal year 
     2019, and $32,363,000 for fiscal year 2020.''.

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

          CHAPTER 1--INDIVIDUALS WITH SIGNIFICANT DISABILITIES

                    Subchapter A--General Provisions

     SEC. 471. PURPOSE.

       Section 701 (29 U.S.C. 796) is amended, in paragraph (3)--
       (1) by striking ``part B of title VI'' and inserting 
     ``title VI''; and
       (2) by inserting before the period the following: ``, with 
     the goal of improving the independence of individuals with 
     disabilities''.

     SEC. 472. ADMINISTRATION OF THE INDEPENDENT LIVING PROGRAM.

       Title VII (29 U.S.C. 796 et seq.) is amended by inserting 
     after section 701 the following:

     ``SEC. 701A. ADMINISTRATION OF THE INDEPENDENT LIVING 
                   PROGRAM.

       ``There is established within the Administration for 
     Community Living of the Department of Health and Human 
     Services, an Independent Living Administration. The 
     Independent Living Administration shall be headed by a 
     Director (referred to in this section as the `Director') 
     appointed by the Secretary of Health and Human Services. The 
     Director shall be an individual with substantial knowledge of 
     independent living services. The Independent Living 
     Administration shall be the principal agency, and the 
     Director shall be the principal officer, to carry out this 
     chapter. In performing the functions of the office, the 
     Director shall be directly responsible to the Administrator 
     of the Administration for Community Living of the Department 
     of Health and Human Services. The Secretary shall ensure that 
     the Independent Living Administration has sufficient 
     resources (including designating at least 1 individual from 
     the Office of General Counsel

[[Page 10975]]

     who is knowledgeable about independent living services) to 
     provide technical assistance and support to, and oversight 
     of, the programs funded under this chapter.''.

     SEC. 473. DEFINITIONS.

       Section 702 (29 U.S.C. 796a) is amended--
       (1) in paragraph (1)--
       (A) in the matter before subparagraph (A), by inserting 
     ``for individuals with significant disabilities (regardless 
     of age or income)'' before ``that--''; and
       (B) in subparagraph (B), by striking the period and 
     inserting ``, including, at a minimum, independent living 
     core services as defined in section 7(17).'';
       (2) in paragraph (2), by striking the period and inserting 
     the following: ``, in terms of the management, staffing, 
     decisionmaking, operation, and provisions of services, of the 
     center.'';
       (3) by redesignating paragraphs (1) and (2) as paragraphs 
     (2) and (3), respectively; and
       (4) by inserting before paragraph (2) the following:
       ``(1) Administrator.--The term `Administrator' means the 
     Administrator of the Administration for Community Living of 
     the Department of Health and Human Services.''.

     SEC. 474. STATE PLAN.

       Section 704 (29 U.S.C. 796c) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1)--
       (i) by inserting after ``State plan'' the following: 
     ``developed and signed in accordance with paragraph (2),''; 
     and
       (ii) by striking ``Commissioner'' each place it appears and 
     inserting ``Administrator'';
       (B) in paragraph (2)--
       (i) in the matter preceding subparagraph (A), by striking 
     ``developed and signed by''; and
       (ii) by striking subparagraphs (A) and (B) and inserting 
     the following:
       ``(A) developed by the chairperson of the Statewide 
     Independent Living Council, and the directors of the centers 
     for independent living in the State, after receiving public 
     input from individuals with disabilities and other 
     stakeholders throughout the State; and
       ``(B) signed by--
       ``(i) the chairperson of the Statewide Independent Living 
     Council, acting on behalf of and at the direction of the 
     Council;
       ``(ii) the director of the designated State entity 
     described in subsection (c); and
       ``(iii) not less than 51 percent of the directors of the 
     centers for independent living in the State.'';
       (C) in paragraph (3)--
       (i) in subparagraph (A), by striking ``State independent 
     living services'' and inserting ``independent living services 
     in the State''; and
       (ii) by striking subparagraph (C) and inserting the 
     following:
       ``(C) working relationships and collaboration between--
       ``(i) centers for independent living; and
       ``(ii)(I) entities carrying out programs that provide 
     independent living services, including those serving older 
     individuals;
       ``(II) other community-based organizations that provide or 
     coordinate the provision of housing, transportation, 
     employment, information and referral assistance, services, 
     and supports for individuals with significant disabilities; 
     and
       ``(III) entities carrying out other programs providing 
     services for individuals with disabilities.''.
       (D) in paragraph (4), by striking ``Commissioner'' each 
     place it appears and inserting ``Administrator''; and
       (E) by adding at the end the following:
       ``(5) Statewideness.--The State plan shall describe 
     strategies for providing independent living services on a 
     statewide basis, to the greatest extent possible.'';
       (2) in subsection (c)--
       (A) in the subsection heading, by striking ``Unit'' and 
     inserting ``Entity'';
       (B) in the matter preceding paragraph (1), by striking 
     ``the designated State unit of such State'' and inserting ``a 
     State entity of such State (referred to in this title as the 
     `designated State entity')'';
       (C) in paragraphs (3) and (4), by striking ``Commissioner'' 
     each place it appears and inserting ``Administrator'';
       (D) in paragraph (3), by striking ``and'' at the end;
       (E) in paragraph (4), by striking the period and inserting 
     ``; and''; and
       (F) by adding at the end the following:
       ``(5) retain not more than 5 percent of the funds received 
     by the State for any fiscal year under part B, for the 
     performance of the services outlined in paragraphs (1) 
     through (4).'';
       (3) in subsection (i), by striking paragraphs (1) and (2) 
     and inserting the following:
       ``(1) the Statewide Independent Living Council;
       ``(2) centers for independent living;
       ``(3) the designated State entity; and
       ``(4) other State agencies or entities represented on the 
     Council, other councils that address the needs and issues of 
     specific disability populations, and other public and private 
     entities determined to be appropriate by the Council.'';
       (4) in subsection (m)--
       (A) in paragraph (4), by striking ``Commissioner'' each 
     place it appears and inserting ``Administrator''; and
       (B) in paragraph (5), by striking ``Commissioner'' and 
     inserting ``Administrator''; and
       (5) by adding at the end the following:
       ``(o) Promoting Full Access to Community Life.--The plan 
     shall describe how the State will provide independent living 
     services described in section 7(18) that promote full access 
     to community life for individuals with significant 
     disabilities.''.

     SEC. 475. STATEWIDE INDEPENDENT LIVING COUNCIL.

       Section 705 (29 U.S.C. 796d) is amended--
       (1) in subsection (a), by inserting ``and maintain'' after 
     ``shall establish'';
       (2) in subsection (b)--
       (A) in paragraph (2)--
       (i) in subparagraph (A)--

       (I) by inserting ``among its voting members,'' before ``at 
     least''; and
       (II) by striking ``one'' and inserting ``1''; and

       (ii) by striking subparagraphs (B) and (C) and inserting 
     the following:
       ``(B) among its voting members, for a State in which 1 or 
     more centers for independent living are run by, or in 
     conjunction with, the governing bodies of American Indian 
     tribes located on Federal or State reservations, at least 1 
     representative of the directors of such centers; and
       ``(C) as ex officio, nonvoting members, a representative of 
     the designated State entity, and representatives from State 
     agencies that provide services for individuals with 
     disabilities.'';
       (B) in paragraph (3)--
       (i) by redesignating subparagraphs (C) through (F) as 
     subparagraphs (D) through (G), respectively;
       (ii) in subparagraph (B), by striking ``parents and 
     guardians of''; and
       (iii) by inserting after paragraph (B) the following:
       ``(C) parents and guardians of individuals with 
     disabilities;'';
       (C) in paragraph (5)(B), by striking ``paragraph (3)'' and 
     inserting ``paragraph (1)''; and
       (D) in paragraph (6)(B), by inserting ``, other than a 
     representative described in paragraph (2)(A) if there is only 
     one center for independent living within the State,'' after 
     ``the Council'';
       (3) by striking subsection (c) and inserting the following:
       ``(c) Functions.--
       ``(1) Duties.--The Council shall--
       ``(A) develop the State plan as provided in section 
     704(a)(2);
       ``(B) monitor, review, and evaluate the implementation of 
     the State plan;
       ``(C) meet regularly, and ensure that such meetings of the 
     Council are open to the public and sufficient advance notice 
     of such meetings is provided;
       ``(D) submit to the Administrator such periodic reports as 
     the Administrator may reasonably request, and keep such 
     records, and afford such access to such records, as the 
     Administrator finds necessary to verify the information in 
     such reports; and
       ``(E) as appropriate, coordinate activities with other 
     entities in the State that provide services similar to or 
     complementary to independent living services, such as 
     entities that facilitate the provision of or provide long-
     term community-based services and supports.
       ``(2) Authorities.--The Council may, consistent with the 
     State plan described in section 704, unless prohibited by 
     State law--
       ``(A) in order to improve services provided to individuals 
     with disabilities, work with centers for independent living 
     to coordinate services with public and private entities;
       ``(B) conduct resource development activities to support 
     the activities described in this subsection or to support the 
     provision of independent living services by centers for 
     independent living; and
       ``(C) perform such other functions, consistent with the 
     purpose of this chapter and comparable to other functions 
     described in this subsection, as the Council determines to be 
     appropriate.
       ``(3) Limitation.--The Council shall not provide 
     independent living services directly to individuals with 
     significant disabilities or manage such services.'';
       (4) in subsection (e)--
       (A) in paragraph (1), in the first sentence, by striking 
     ``prepare'' and all that follows through ``a plan'' and 
     inserting ``prepare, in conjunction with the designated State 
     entity, a plan''; and
       (B) in paragraph (3), by striking ``State agency'' and 
     inserting ``State entity''; and
       (5) in subsection (f)--
       (A) by striking ``such resources'' and inserting 
     ``available resources''; and
       (B) by striking ``(including'' and all that follows through 
     ``compensation'' and inserting ``(such as personal assistance 
     services), and to pay reasonable compensation''.

     SEC. 475A. RESPONSIBILITIES OF THE ADMINISTRATOR.

       Section 706 (29 U.S.C. 796d-1) is amended--
       (1) by striking the title of the section and inserting the 
     following:

     ``SEC. 706. RESPONSIBILITIES OF THE ADMINISTRATOR.'';

       (2) in subsection (a)--
       (A) in paragraph (1), by striking ``Commissioner'' each 
     place it appears and inserting ``Administrator''; and

[[Page 10976]]

       (B) in paragraph (2)--
       (i) in subparagraph (A), by striking ``Commissioner'' and 
     inserting ``Administrator''; and
       (ii) in subparagraph (B)--

       (I) in clause (i)--

       (aa) by inserting ``or the Commissioner'' after ``to the 
     Secretary''; and
       (bb) by striking ``to the Commissioner; and'' and inserting 
     ``to the Administrator;'';

       (II) by redesignating clause (ii) as clause (iii); and
       (III) by inserting after clause (i) the following:

       ``(ii) to the State agency shall be deemed to be references 
     to the designated State entity; and'';
       (3) by striking subsection (b) and inserting the following:
       ``(b) Indicators.--Not later than 1 year after the date of 
     enactment of the Workforce Innovation and Opportunity Act, 
     the Administrator shall develop and publish in the Federal 
     Register indicators of minimum compliance for centers for 
     independent living (consistent with the standards set forth 
     in section 725), and indicators of minimum compliance for 
     Statewide Independent Living Councils.'';
       (4) in subsection (c)--
       (A) in paragraph (1)--
       (i) by striking ``Commissioner'' each place it appears and 
     inserting ``Administrator''; and
       (ii) by striking the last sentence;
       (B) in paragraph (2)--
       (i) in the matter preceding subparagraph (A), by striking 
     ``Commissioner'' and inserting ``Administrator'';
       (ii) in subparagraph (A), by striking ``such a review'' and 
     inserting ``a review described in paragraph (1)''; and
       (iii) in subparagraphs (A) and (B), by striking 
     ``Department'' each place it appears and inserting 
     ``Department of Health and Human Services''; and
       (5) by striking subsection (d) and inserting the following:
       ``(d) Reports.--
       ``(1) In general.--The Director described in section 701A 
     shall provide to the Administrator of the Administration for 
     Community Living and the Administrator shall include, in an 
     annual report, information on the extent to which centers for 
     independent living receiving funds under part C have complied 
     with the standards and assurances set forth in section 725. 
     The Director may identify individual centers for independent 
     living in the analysis contained in that information. The 
     Director shall include in the report the results of onsite 
     compliance reviews, identifying individual centers for 
     independent living and other recipients of assistance under 
     part C.
       ``(2) Public availability.--The Director shall ensure that 
     the report described in this subsection is made publicly 
     available in a timely manner, including through electronic 
     means, in order to inform the public about the administration 
     and performance of programs under this Act.''.

               Subchapter B--Independent Living Services

     SEC. 476. ADMINISTRATION.

       (a) Allotments.--Section 711 (29 U.S.C. 796e) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1)(A)--
       (i) by striking ``Except'' and inserting ``After the 
     reservation required by section 711A is made, and except''; 
     and
       (ii) by inserting ``the remainder of the'' before ``sums 
     appropriated''; and
       (B) in paragraph (2)(B), by striking ``amounts made 
     available for purposes of this part'' and inserting 
     ``remainder described in paragraph (1)(A)'';
       (2) in subsections (a), (b), and (c), by striking 
     ``Commissioner'' each place it appears and inserting 
     ``Administrator''; and
       (3) by adding at the end the following:
       ``(d) Administration.--Funds allotted or made available to 
     a State under this section shall be administered by the 
     designated State entity, in accordance with the approved 
     State plan.''.
       (b) Training and Technical Assistance.--Part B of chapter 1 
     of title VII is amended by inserting after section 711 (29 
     U.S.C. 796e) the following:


                  ``training and technical assistance

       ``Sec. 711A.  (a) From the funds appropriated and made 
     available to carry out this part for any fiscal year, 
     beginning with fiscal year 2015, the Administrator shall 
     first reserve not less than 1.8 percent and not more than 2 
     percent of the funds to provide, either directly or through 
     grants, contracts, or cooperative agreements, training and 
     technical assistance to Statewide Independent Living Councils 
     established under section 705 for such fiscal year.
       ``(b) The Administrator shall conduct a survey of such 
     Statewide Independent Living Councils regarding training and 
     technical assistance needs in order to determine funding 
     priorities for such training and technical assistance.
       ``(c) To be eligible to receive a grant or enter into a 
     contract or cooperative agreement under this section, an 
     entity shall submit an application to the Administrator at 
     such time, in such manner, containing a proposal to provide 
     such training and technical assistance, and containing such 
     additional information, as the Administrator may require. The 
     Administrator shall provide for peer review of applications 
     by panels that include persons who are not government 
     employees and who have experience in the operation of such 
     Statewide Independent Living Councils.''.
       (c) Payments.--Section 712(a) (29 U.S.C. 796e-1(a)) is 
     amended by striking ``Commissioner'' and inserting 
     ``Administrator''.
       (d) Authorized Uses of Funds.--Section 713 (29 U.S.C. 796e-
     2) is amended--
       (1) by striking the matter preceding paragraph (1) and 
     inserting the following:
       ``(a) In General.--The State may use funds received under 
     this part to provide the resources described in section 
     705(e) (but may not use more than 30 percent of the funds 
     paid to the State under section 712 for such resources unless 
     the State specifies that a greater percentage of the funds is 
     needed for such resources in a State plan approved under 
     section 706), relating to the Statewide Independent Living 
     Council, may retain funds under section 704(c)(5), and shall 
     distribute the remainder of the funds received under this 
     part in a manner consistent with the approved State plan for 
     the activities described in subsection (b).
       ``(b) Activities.--The State may use the remainder of the 
     funds described in subsection (a)--''; and
       (2) in paragraph (1), by inserting ``, particularly those 
     in unserved areas of the State'' after ``disabilities''.
       (e) Authorization of Appropriations.--Section 714 (29 
     U.S.C. 796e-3) is amended by striking ``such sums as may be 
     necessary for each of the fiscal years 1999 through 2003.'' 
     and inserting ``$22,878,000 for fiscal year 2015, $24,645,000 
     for fiscal year 2016, $25,156,000 for fiscal year 2017, 
     $25,714,000 for fiscal year 2018, $26,319,000 for fiscal year 
     2019, and $26,877,000 for fiscal year 2020.''.

              Subchapter C--Centers for Independent Living

     SEC. 481. PROGRAM AUTHORIZATION.

       Section 721 (29 U.S.C. 796f) is amended--
       (1) in subsection (a)--
       (A) by striking ``1999'' and inserting ``2015'';
       (B) by striking ``Commissioner shall allot'' and inserting 
     ``Administrator shall make available''; and
       (C) by inserting ``, centers for independent living,'' 
     after ``States'';
       (2) in subsection (b)--
       (A) in paragraph (1)--
       (i) in the paragraph heading, by striking ``other 
     arrangements'' and inserting ``cooperative agreements'';
       (ii) by striking ``For'' and all that follows through 
     ``Commissioner'' and inserting ``From the funds appropriated 
     to carry out this part for any fiscal year, beginning with 
     fiscal year 2015, the Administrator'';
       (iii) by striking ``reserve from such excess'' and 
     inserting ``reserve not less than 1.8 percent and not more 
     than 2 percent of the funds''; and
       (iv) by striking ``eligible agencies'' and all that follows 
     and inserting ``centers for independent living and eligible 
     agencies for such fiscal year.'';
       (B) in paragraph (2)--
       (i) by striking ``Commissioner shall make grants to, and 
     enter into contracts and other arrangements with,'' and 
     inserting ``Administrator shall make grants to, or enter into 
     contracts or cooperative agreements with,''; and
       (ii) by inserting ``fiscal management of,'' before 
     ``planning,'';
       (C) in paragraphs (3), (4), and (5), by striking 
     ``Commissioner'' each place it appears and inserting 
     ``Administrator''; and
       (D) in paragraph (3), by striking ``Statewide Independent 
     Living Councils and'';
       (3) in paragraph (4), by striking ``other arrangement'' and 
     inserting ``cooperative agreement'';
       (4) in subsection (c), by striking ``Commissioner'' each 
     place it appears and inserting ``Administrator''; and
       (5) in subsection (d), by striking ``Commissioner'' each 
     place it appears and inserting ``Administrator''.

     SEC. 482. CENTERS.

       (a) Centers in States in Which Federal Funding Exceeds 
     State Funding.--Section 722 (29 U.S.C. 796f-1) is amended--
       (1) in subsections (a), (b), and (c), by striking 
     ``Commissioner'' each place it appears and inserting 
     ``Administrator'';
       (2) in subsection (c)--
       (A) by striking ``grants'' and inserting ``grants for a 
     fiscal year''; and
       (B) by striking ``by September 30, 1997'' and inserting 
     ``for the preceding fiscal year'';
       (3) in subsection (d)--
       (A) in paragraph (1)--
       (i) by striking ``Commissioner'' and inserting 
     ``Administrator''; and
       (ii) by striking ``region, consistent'' and all that 
     follows and inserting ``region. The Administrator's 
     determination of the most qualified applicant shall be 
     consistent with the provisions in the State plan setting 
     forth the design of the State for establishing a statewide 
     network of centers for independent living.''; and
       (B) in paragraph (2)--
       (i) in the matter preceding subparagraph (A), by striking 
     ``Commissioner'' and inserting ``Administrator''; and
       (ii) by striking subparagraph (A) and inserting the 
     following:

[[Page 10977]]

       ``(A) shall consider comments regarding the application--
       ``(i) by individuals with disabilities and other interested 
     parties within the new region proposed to be served; and
       ``(ii) if any, by the Statewide Independent Living Council 
     in the State in which the applicant is located;''; and
       (4) in subsections (e) and (g) by striking ``Commissioner'' 
     each place it appears and inserting ``Administrator.''.
       (b) Centers in States in Which State Funding Exceeds 
     Federal Funding.--Section 723 (29 U.S.C. 796f-2) is amended--
       (1) in subsections (a), (b), (g), (h), and (i), by striking 
     ``Commissioner'' each place it appears and inserting 
     ``Administrator'';
       (2) in subsection (a)--
       (A) in paragraph (1)(A)(ii), by inserting ``of a designated 
     State unit'' after ``director''; and
       (B) in the heading of paragraph (3), by striking 
     ``commissioner'' and inserting ``administrator''; and
       (3) in subsection (c)--
       (A) by striking ``grants'' and inserting ``grants for a 
     fiscal year''; and
       (B) by striking ``by September 30, 1997'' and inserting 
     ``for the preceding fiscal year''.
       (c) Centers Operated by State Agencies.--Section 724 (29 
     U.S.C. 796f-3) is amended--
       (1) in the matter preceding paragraph (1)--
       (A) by striking ``1993'' and inserting ``2015'';
       (B) by striking ``Rehabilitation Act Amendments of 1998'' 
     and inserting ``Workforce Innovation and Opportunity Act''; 
     and
       (C) by striking ``1994'' and inserting ``2015''; and
       (2) by striking ``Commissioner'' each place it appears and 
     inserting ``Administrator''.

     SEC. 483. STANDARDS AND ASSURANCES.

       Section 725 (29 U.S.C. 796f-4) is amended--
       (1) in subsection (b)(1)(D)--
       (A) by striking ``access of'' and inserting ``access for''; 
     and
       (B) by striking ``to society and'' and inserting ``, within 
     their communities,''; and
       (2) in subsection (c), by striking ``Commissioner'' each 
     place it appears and inserting ``Administrator''.

     SEC. 484. AUTHORIZATION OF APPROPRIATIONS.

       Section 727 (29 U.S.C. 796f-6) is amended by striking 
     ``such sums as may be necessary for each of the fiscal years 
     1999 through 2003.'' and inserting ``$78,305,000 for fiscal 
     year 2015, $84,353,000 for fiscal year 2016, $86,104,000 for 
     fiscal year 2017, $88,013,000 for fiscal year 2018, 
     $90,083,000 for fiscal year 2019, and $91,992,000 for fiscal 
     year 2020.''.

 CHAPTER 2--INDEPENDENT LIVING SERVICES FOR OLDER INDIVIDUALS WHO ARE 
                                 BLIND

     SEC. 486. INDEPENDENT LIVING SERVICES FOR OLDER INDIVIDUALS 
                   WHO ARE BLIND.

       Chapter 2 of title VII (29 U.S.C. 796j et seq.) is amended 
     by inserting after section 751 the following:


                  ``training and technical assistance

       ``Sec. 751A.  (a) From the funds appropriated and made 
     available to carry out this chapter for any fiscal year, 
     beginning with fiscal year 2015, the Commissioner shall first 
     reserve not less than 1.8 percent and not more than 2 percent 
     of the funds to provide, either directly or through grants, 
     contracts, or cooperative agreements, training and technical 
     assistance to designated State agencies, or other providers 
     of independent living services for older individuals who are 
     blind, that are funded under this chapter for such fiscal 
     year.
       ``(b) The Commissioner shall conduct a survey of designated 
     State agencies that receive grants under section 752 
     regarding training and technical assistance needs in order to 
     determine funding priorities for such training and technical 
     assistance.
       ``(c) To be eligible to receive a grant or enter into a 
     contract or cooperative agreement under this section, an 
     entity shall submit an application to the Commissioner at 
     such time, in such manner, containing a proposal to provide 
     such training and technical assistance, and containing such 
     additional information, as the Commissioner may require. The 
     Commissioner shall provide for peer review of applications by 
     panels that include persons who are not government employees 
     and who have experience in the provision of services to older 
     individuals who are blind.''.

     SEC. 487. PROGRAM OF GRANTS.

       Section 752 (29 U.S.C. 796k) is amended--
       (1) by striking subsection (h);
       (2) by redesignating subsections (i) and (j) as subsections 
     (h) and (i), respectively;
       (3) in subsection (c)(2)--
       (A) by striking ``subsection (j)'' and inserting 
     ``subsection (i)''; and
       (B) by striking ``subsection (i)'' and inserting 
     ``subsection (h)'';
       (4) in subsection (g), by inserting ``, or contracts or 
     cooperative agreements with,'' after ``grants to'';
       (5) in subsection (h), as redesignated by paragraph (2)--
       (A) in paragraph (1), by striking ``subsection (j)(4)'' and 
     inserting ``subsection (i)(4)''; and
       (B) in paragraph (2)--
       (i) in subparagraph (A)(vi), by adding ``and'' after the 
     semicolon;
       (ii) in subparagraph (B)(ii)(III), by striking ``; and'' 
     and inserting a period; and
       (iii) by striking subparagraph (C); and
       (6) in subsection (i), as redesignated by paragraph (2)--
       (A) in paragraph (2)(A)(ii), by inserting ``, and not 
     reserved under section 751A,'' after ``section 753'';
       (B) in paragraph (3)(A), by inserting ``, and not reserved 
     under section 751A,'' after ``section 753''; and
       (C) in paragraph (4)(B)(i), by striking ``subsection (i)'' 
     and inserting ``subsection (h)''.

     SEC. 488. INDEPENDENT LIVING SERVICES FOR OLDER INDIVIDUALS 
                   WHO ARE BLIND AUTHORIZATION OF APPROPRIATIONS.

       Section 753 (29 U.S.C. 796l) is amended by striking ``such 
     sums as may be necessary for each of the fiscal years 1999 
     through 2003.'' and inserting ``$33,317,000 for fiscal year 
     2015, $35,890,000 for fiscal year 2016, $36,635,000 for 
     fiscal year 2017, $37,448,000 for fiscal year 2018, 
     $38,328,000 for fiscal year 2019, and $39,141,000 for fiscal 
     year 2020.''.

                     Subtitle I--General Provisions

     SEC. 491. TRANSFER OF FUNCTIONS REGARDING INDEPENDENT LIVING 
                   TO DEPARTMENT OF HEALTH AND HUMAN SERVICES, AND 
                   SAVINGS PROVISIONS.

       (a) Definitions.--For purposes of this section, unless 
     otherwise provided or indicated by the context--
       (1) the term ``Administration for Community Living'' means 
     the Administration for Community Living of the Department of 
     Health and Human Services;
       (2) the term ``Federal agency'' has the meaning given to 
     the term ``agency'' by section 551(1) of title 5, United 
     States Code;
       (3) the term ``function'' means any duty, obligation, 
     power, authority, responsibility, right, privilege, activity, 
     or program; and
       (4) the term ``Rehabilitation Services Administration'' 
     means the Rehabilitation Services Administration of the 
     Office of Special Education and Rehabilitative Services of 
     the Department of Education.
       (b) Transfer of Functions.--There are transferred to the 
     Administration for Community Living, all functions which the 
     Commissioner of the Rehabilitation Services Administration 
     exercised before the effective date of this section 
     (including all related functions of any officer or employee 
     of that Administration) under chapter 1 of title VII of the 
     Rehabilitation Act of 1973 (29 U.S.C. 796 et seq).
       (c) Personnel Determinations by the Office of Management 
     and Budget.--The Office of Management and Budget shall--
       (1) ensure that this section does not result in any net 
     increase in full-time equivalent employees at any Federal 
     agency impacted by this section; and
       (2) not later than 1 year after the effective date of this 
     section, certify compliance with this subsection 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.
       (d) Delegation and Assignment.--Except where otherwise 
     expressly prohibited by law or otherwise provided by this 
     section, the Administrator of the Administration for 
     Community Living may delegate any of the functions 
     transferred to the Administrator of such Administration by 
     subsection (b) and any function described in subsection (b) 
     that was transferred or granted to such Administrator after 
     the effective date of this section to such officers and 
     employees of such Administration as the Administrator may 
     designate, and may authorize successive redelegations of such 
     functions described in subsection (b) as may be necessary or 
     appropriate. No delegation of such functions by the 
     Administrator of the Administration for Community Living 
     under this subsection or under any other provision of this 
     section shall relieve such Administrator of responsibility 
     for the administration of such functions.
       (e) Reorganization.--Except where otherwise expressly 
     prohibited by law or otherwise provided by this Act, the 
     Administrator of the Administration for Community Living is 
     authorized to allocate or reallocate any function transferred 
     under subsection (b) among the officers of such 
     Administration, and to consolidate, alter, or discontinue 
     such organizational entities in such Administration as may be 
     necessary or appropriate.
       (f) Rules.--The Administrator of the Administration for 
     Community Living is authorized to prescribe, in accordance 
     with the provisions of chapters 5 and 6 of title 5, United 
     States Code, such rules and regulations as that Administrator 
     determines necessary or appropriate to administer and manage 
     the functions described in subsection (b) of that 
     Administration.
       (g) Transfer and Allocations of Appropriations and 
     Personnel.--Except as otherwise provided in this section, the 
     personnel employed in connection with, and the assets, 
     liabilities, contracts, property, records, and unexpended 
     balances of appropriations, authorizations, allocations, and 
     other funds employed, used, held, arising from, available to, 
     or to be made available in connection with the functions 
     transferred by subsection (b), subject to section 1531 of 
     title 31, United States Code, shall be transferred to the 
     Administration for Community Living. Unexpended funds 
     transferred pursuant to this

[[Page 10978]]

     subsection shall be used only for the purposes for which the 
     funds were originally authorized and appropriated.
       (h) Incidental Transfers.--The Director of the Office of 
     Management and Budget, at such time or times as the Director 
     shall provide, is authorized to make such determinations as 
     may be necessary with regard to the functions transferred by 
     subsection (b), and to make such additional incidental 
     dispositions of personnel, assets, liabilities, grants, 
     contracts, property, records, and unexpended balances of 
     appropriations, authorizations, allocations, and other funds 
     held, used, arising from, available to, or to be made 
     available in connection with such functions, as may be 
     necessary to carry out the provisions of this section. The 
     Director of the Office of Management and Budget shall provide 
     for the termination of the affairs of all entities terminated 
     by this section and for such further measures and 
     dispositions as may be necessary to effectuate the purposes 
     of this section, with respect to such functions.
       (i) Savings Provisions.--
       (1) Continuing effect of legal documents.--All orders, 
     determinations, rules, regulations, permits, agreements, 
     grants, contracts, certificates, licenses, registrations, 
     privileges, and other administrative actions--
       (A) which have been issued, made, granted, or allowed to 
     become effective by the President, any Federal agency or 
     official thereof, or by a court of competent jurisdiction, in 
     the performance of functions which are transferred under 
     subsection (b); and
       (B) which are in effect at the time this section takes 
     effect, or were final before the effective date of this 
     section and are to become effective on or after the effective 
     date of this section,
     shall continue in effect according to their terms until 
     modified, terminated, superseded, set aside, or revoked in 
     accordance with law by the President, the Administrator of 
     the Administration for Community Living or other authorized 
     official, a court of competent jurisdiction, or by operation 
     of law.
       (2) Proceedings not affected.--The provisions of this 
     section shall not affect any proceedings, including notices 
     of proposed rulemaking, or any application for any license, 
     permit, certificate, or financial assistance pending before 
     the Rehabilitation Services Administration at the time this 
     section takes effect, with respect to functions transferred 
     by subsection (b) but such proceedings and applications shall 
     be continued. Orders shall be issued in such proceedings, 
     appeals shall be taken therefrom, and payments shall be made 
     pursuant to such orders, as if this section had not been 
     enacted, and orders issued in any such proceedings shall 
     continue in effect until modified, terminated, superseded, or 
     revoked by a duly authorized official, by a court of 
     competent jurisdiction, or by operation of law. Nothing in 
     this paragraph shall be deemed to prohibit the discontinuance 
     or modification of any such proceeding under the same terms 
     and conditions and to the same extent that such proceeding 
     could have been discontinued or modified if this section had 
     not been enacted.
       (3) Suits not affected.--The provisions of this section 
     shall not affect suits commenced (with respect to functions 
     transferred under subsection (b)) before the effective date 
     of this section, and in all such suits, proceedings shall be 
     had, appeals taken, and judgments rendered in the same manner 
     and with the same effect as if this section had not been 
     enacted.
       (4) Nonabatement of actions.--No suit, action, or other 
     proceeding commenced by or against the Rehabilitation 
     Services Administration (with regard to functions transferred 
     under subsection (b)), or by or against any individual in the 
     official capacity of such individual as an officer of the 
     Rehabilitation Services Administration (with regard to 
     functions transferred under subsection (b)), shall abate by 
     reason of the enactment of this section.
       (5) Administrative actions relating to promulgation of 
     regulations.--Any administrative action relating to the 
     preparation or promulgation of a regulation by the 
     Rehabilitation Services Administration (with regard to 
     functions transferred under subsection (b)) may be continued 
     by the Administration for Community Living with the same 
     effect as if this section had not been enacted.
       (j) Separability.--If a provision of this section or its 
     application to any person or circumstance is held invalid, 
     neither the remainder of this section nor the application of 
     the provision to other persons or circumstances shall be 
     affected.
       (k) References.--A reference in any other Federal law, 
     Executive order, rule, regulation, or delegation of 
     authority, or any document of or relating to--
       (1) the Commissioner of the Rehabilitation Services 
     Administration (with regard to functions transferred under 
     subsection (b)), shall be deemed to refer to the 
     Administrator of the Administration for Community Living; and
       (2) the Rehabilitation Services Administration (with regard 
     to functions transferred under subsection (b)), shall be 
     deemed to refer to the Administration for Community Living.
       (l) Transition.--The Administrator of the Administration 
     for Community Living is authorized to utilize--
       (1) the services of such officers, employees, and other 
     personnel of the Rehabilitation Services Administration with 
     regard to functions transferred under subsection (b); and
       (2) funds appropriated to such functions,
     for such period of time as may reasonably be needed to 
     facilitate the orderly implementation of this section.
       (m) Administration for Community Living.--
       (1) Transfer of functions.--There are transferred to the 
     Administration for Community Living, all functions which the 
     Commissioner of the Rehabilitation Services Administration 
     exercised before the effective date of this section 
     (including all related functions of any officer or employee 
     of that Administration) under the Assistive Technology Act of 
     1998 (29 U.S.C. 3001 et seq.).
       (2) Administrative matters.--Subsections (d) through (l) 
     shall apply to transfers described in paragraph (1).
       (n) National Institute on Disability, Independent Living, 
     and Rehabilitation Research.--
       (1) Definitions.--For purposes of this subsection, unless 
     otherwise provided or indicated by the context--
       (A) the term ``NIDILRR'' means the National Institute on 
     Disability, Independent Living, and Rehabilitation Research 
     of the Administration for Community Living of the Department 
     of Health and Human Services; and
       (B) the term ``NIDRR'' means the National Institute on 
     Disability and Rehabilitation Research of the Office of 
     Special Education and Rehabilitative Services of the 
     Department of Education.
       (2) Transfer of functions.--There are transferred to the 
     NIDILRR, all functions which the Director of the NIDRR 
     exercised before the effective date of this section 
     (including all related functions of any officer or employee 
     of the NIDRR).
       (3) Administrative matters.--
       (A) In general.--Subsections (d) through (l) shall apply to 
     transfers described in paragraph (2).
       (B) References.--For purposes of applying those subsections 
     under subparagraph (A), those subsections--
       (i) shall apply to the NIDRR and the Director of the NIDRR 
     in the same manner and to the same extent as those 
     subsections apply to the Rehabilitation Services 
     Administration and the Commissioner of that Administration; 
     and
       (ii) shall apply to the NIDILRR and the Director of the 
     NIDILRR in the same manner and to the same extent as those 
     subsections apply to the Administration for Community Living 
     and the Administrator of that Administration.
       (o) References in Assistive Technology Act of 1998.--
       (1) Secretary.--Section 3(13) of the Assistive Technology 
     Act of 1998 (29 U.S.C. 3002(13)) is amended by striking 
     ``Education'' and inserting ``Health and Human Services''.
       (2) National activities.--Section 6(d)(4) of the Assistive 
     Technology Act of 1998 (29 U.S.C. 3005(d)(4)) is amended by 
     striking ``Education'' and inserting ``Health and Human 
     Services''.
       (3) General administration.--Section 7 of the Assistive 
     Technology Act of 1998 (29 U.S.C. 3006) is amended--
       (A) in subsection (a)--
       (i) in paragraph (1), by striking ``the Assistant 
     Secretary'' and all that follows through ``Rehabilitation 
     Services Administration,'' and inserting ``the Administrator 
     of the Administration for Community Living'';
       (ii) in paragraph (2), by striking ``The Assistant 
     Secretary'' and all that follows and inserting ``The 
     Administrator of the Administration for Community Living 
     shall consult with the Office of Special Education Programs 
     of the Department of Education, the Rehabilitation Services 
     Administration of the Department of Education, the Office of 
     Disability Employment Policy of the Department of Labor, the 
     National Institute on Disability, Independent Living, and 
     Rehabilitation Research, and other appropriate Federal 
     entities in the administration of this Act.''; and
       (iii) in paragraph (3), by striking ``the Rehabilitation 
     Services Administration'' and inserting ``the Administrator 
     of the Administration for Community Living''; and
       (B) in subsection (c)(5), by striking ``Education'' and 
     inserting ``Health and Human Services''.

     SEC. 492. TABLE OF CONTENTS.

       The table of contents in section 1(b) is amended--
       (1) by striking the item relating to section 109 and 
     inserting the following:

``Sec. 109. Training and services for employers.'';
       (2) by inserting after the item relating to section 112 the 
     following:

``Sec. 113. Provision of pre-employment transition services.'';
       (3) by striking the item relating to section 202 and 
     inserting the following:

``Sec. 202. National Institute on Disability, Independent Living, and 
              Rehabilitation Research.'';

[[Page 10979]]

       (4) by striking the item relating to section 205 and 
     inserting the following:

``Sec. 205. Disability, Independent Living, and Rehabilitation Research 
              Advisory Council.
``Sec. 206. Definition of covered school.'';
       (5) by striking the items relating to sections 304, 305, 
     and 306 and inserting the following:

``Sec. 304. Measuring of project outcomes and performance.''.
       (6) by inserting after the item relating to section 509 the 
     following:

``Sec. 511. Limitations on use of subminimum wage.'';
       (7) by striking the items relating to title VI and 
     inserting the following:

``TITLE VI--EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH DISABILITIES
``Sec. 601. Short title.
``Sec. 602. Purpose.
``Sec. 603. Allotments.
``Sec. 604. Availability of services.
``Sec. 605. Eligibility.
``Sec. 606. State plan.
``Sec. 607. Restriction.
``Sec. 608. Savings provision.
``Sec. 609. Advisory Committee on Increasing Competitive Integrated 
              Employment for Individuals with Disabilities.
``Sec. 610. Authorization of appropriations.''; and
       (8) in the items relating to title VII--
       (A)(i) by inserting after the item relating to section 701 
     the following:

``Sec. 701A. Administration of the independent living program.'';
     and
       (ii) by striking the item relating to section 706 and 
     inserting the following:

``Sec. 706. Responsibilities of the Administrator.'';
       (B) by inserting after the item relating to section 711 the 
     following:

``Sec. 711A. Training and technical assistance.'';
     and
       (C) by inserting after the item relating to section 751 the 
     following:

``Sec. 751A. Training and technical assistance.''.

                      TITLE V--GENERAL PROVISIONS

                    Subtitle A--Workforce Investment

     SEC. 501. PRIVACY.

       (a) Section 444 of the General Education Provisions Act.--
     Nothing in this Act (including the amendments made by this 
     Act) shall be construed to supersede the privacy protections 
     afforded parents and students under section 444 of the 
     General Education Provisions Act (20 U.S.C. 1232g).
       (b) Prohibition on Development of National Database.--
       (1) In general.--Nothing in this Act (including the 
     amendments made by this Act) shall be construed to permit the 
     development of a national database of personally identifiable 
     information on individuals receiving services under title I 
     or under the amendments made by title IV.
       (2) Limitation.--Nothing in paragraph (1) shall be 
     construed to prevent the proper administration of national 
     programs under subtitles C and D of title I, or the 
     amendments made by title IV (as the case may be), or to carry 
     out program management activities consistent with title I or 
     the amendments made by title IV (as the case may be).

     SEC. 502. BUY-AMERICAN REQUIREMENTS.

       (a) Compliance With Buy American Act.--None of the funds 
     made available under title I or II or under the Wagner-Peyser 
     Act (29 U.S.C. 49 et seq.) may be expended by an entity 
     unless the entity agrees that in expending the funds the 
     entity will comply with sections 8301 through 8303 of title 
     41, United States Code (commonly known as the ``Buy American 
     Act'').
       (b) Sense of Congress; Requirement Regarding Notice.--
       (1) Purchase of american-made equipment and products.--In 
     the case of any equipment or product that may be authorized 
     to be purchased with financial assistance provided using 
     funds made available under title I or II or under the Wagner-
     Peyser Act (29 U.S.C. 49 et seq.), it is the sense of 
     Congress that entities receiving the assistance should, in 
     expending the assistance, purchase only American-made 
     equipment and products.
       (2) Notice to recipients of assistance.--In providing 
     financial assistance using funds made available under title I 
     or II or under the Wagner-Peyser Act, the head of each 
     Federal agency shall provide to each recipient of the 
     assistance a notice describing the statement made in 
     paragraph (1) by Congress.
       (c) Prohibition of Contracts With Persons Falsely Labeling 
     Products as Made in America.--If it has been finally 
     determined by a court or Federal agency that any person 
     intentionally affixed a label bearing a ``Made in America'' 
     inscription, or any inscription with the same meaning, to any 
     product sold in or shipped to the United States that is not 
     made in the United States, the person shall be ineligible to 
     receive any contract or subcontract made with funds made 
     available under title I or II or under the Wagner-Peyser Act 
     (29 U.S.C. 49 et seq.), pursuant to the debarment, 
     suspension, and ineligibility procedures described in 
     sections 9.400 through 9.409 of title 48, Code of Federal 
     Regulations, as such sections were in effect on August 7, 
     1998, or pursuant to any successor regulations.

     SEC. 503. TRANSITION PROVISIONS.

       (a) Workforce Development Systems and Investment 
     Activities.--The Secretary of Labor and the Secretary of 
     Education shall take such actions as the Secretaries 
     determine to be appropriate to provide for the orderly 
     transition from any authority under the Workforce Investment 
     Act of 1998 (29 U.S.C. 2801 et seq.) to any authority under 
     subtitle A of title I. Such actions shall include the 
     provision of guidance related to unified State planning, 
     combined State planning, and the performance accountability 
     system described in such subtitle.
       (b) Workforce Investment Activities.--The Secretary of 
     Labor shall take such actions as the Secretary determines to 
     be appropriate to provide for the orderly transition from any 
     authority under the Workforce Investment Act of 1998 to any 
     authority under subtitles B through E of title I.
       (c) Adult Education and Literacy Programs.--The Secretary 
     of Education shall take such actions as the Secretary 
     determines to be appropriate to provide for the orderly 
     transition from any authority under the Adult Education and 
     Family Literacy Act (20 U.S.C. 9201 et seq.), as in effect on 
     the day before the date of enactment of this Act, to any 
     authority under the Adult Education and Family Literacy Act, 
     as amended by this Act.
       (d) Employment Services Activities.--The Secretary of Labor 
     shall take such actions as the Secretary determines to be 
     appropriate to provide for the orderly transition from any 
     authority under the Wagner-Peyser Act (29 U.S.C. 49 et seq.), 
     as in effect on the day before the date of enactment of this 
     Act, to any authority under the Wagner-Peyser Act, as amended 
     by this Act.
       (e) Vocational Rehabilitation Programs.--The Secretary of 
     Education and the Secretary of Health and Human Services 
     shall take such actions as the Secretaries determine to be 
     appropriate to provide for the orderly transition from any 
     authority under the Rehabilitation Act of 1973 (29 U.S.C. 701 
     et seq.), as in effect on the day before the date of 
     enactment of this Act, to any authority under the 
     Rehabilitation Act of 1973, as amended by this Act.
       (f) Regulations.--
       (1) Proposed regulations.--Not later than 180 days after 
     the date of enactment of this Act, the Secretary of Labor, 
     the Secretary of Education, and the Secretary of Health and 
     Human Services, as appropriate, shall develop and publish in 
     the Federal Register proposed regulations relating to the 
     transition to, and implementation of, this Act (including the 
     amendments made by this Act).
       (2) Final regulations.--Not later than 18 months after the 
     date of enactment of this Act, the Secretaries described in 
     paragraph (1), as appropriate, shall develop and publish in 
     the Federal Register final regulations relating to the 
     transition to, and implementation of, this Act (including the 
     amendments made by this Act).
       (g) Expenditure of Funds During Transition.--
       (1) In general.--Subject to paragraph (2) and in accordance 
     with regulations developed under subsection (f), States, 
     grant recipients, administrative entities, and other 
     recipients of financial assistance under the Workforce 
     Investment Act of 1998 may expend funds received under such 
     Act in order to plan and implement programs and activities 
     authorized under this Act.
       (2) Additional requirements.--Not more than 2 percent of 
     any allotment to any State from amounts appropriated under 
     the Workforce Investment Act of 1998 for fiscal year 2014 may 
     be made available to carry out activities authorized under 
     paragraph (1) and not less than 50 percent of any amount used 
     to carry out activities authorized under paragraph (1) shall 
     be made available to local entities for the purposes of the 
     activities described in such paragraph.

     SEC. 504. REDUCTION OF REPORTING BURDENS AND REQUIREMENTS.

       In order to simplify reporting requirements and reduce 
     reporting burdens, the Secretary of Labor, the Secretary of 
     Education, and the Secretary of Health and Human Services 
     shall establish procedures and criteria under which a State 
     board and local board may reduce reporting burdens and 
     requirements under this Act (including the amendments made by 
     this Act).

     SEC. 505. EFFECTIVE DATES.

       (a) In General.--Except as otherwise provided in this Act, 
     this Act, including the amendments made by this Act, shall 
     take effect on the first day of the first full program year 
     after the date of enactment of this Act.
       (b) Application Date for Workforce Development Performance 
     Accountability System.--
       (1) In general.--Section 136 of the Workforce Investment 
     Act of 1998 (29 U.S.C. 2871), as in effect on the day before 
     the date of enactment of this Act, shall apply in lieu of 
     section 116 of this Act, for the first full program year 
     after the date of enactment of this Act.
       (2) Special provisions.--For purposes of the application 
     described in paragraph (1)--

[[Page 10980]]

       (A) except as otherwise specified, a reference in section 
     136 of the Workforce Investment Act of 1998 to a provision in 
     such Act (29 U.S.C. 2801 et seq.), other than to a provision 
     in such section or section 112 of such Act, shall be deemed 
     to refer to the corresponding provision of this Act;
       (B) the terms ``local area'', ``local board'', ``one-stop 
     partner'', and ``State board'' have the meanings given the 
     terms in section 3 of this Act;
       (C) except as provided in subparagraph (B), terms used in 
     such section 136 shall have the meanings given the terms in 
     section 101 of the Workforce Investment Act of 1998 (29 
     U.S.C. 2801);
       (D) any agreement negotiated and reached under section 
     136(c)(2) of the Workforce Investment Act of 1998 (29 U.S.C. 
     2871(c)(2)) shall remain in effect, until a new agreement is 
     so negotiated and reached, for that first full program year;
       (E) if a State or local area fails to meet levels of 
     performance under subsection (g) or (h), respectively, of 
     section 136 of the Workforce Investment Act of 1998 during 
     that first full program year, the sanctions provided under 
     such subsection shall apply during the second full program 
     year after the date of enactment of this Act; and
       (F) the Secretary shall use an amount retained, as a result 
     of a reduction in an allotment to a State made under section 
     136(g)(1)(B) of such Act (29 U.S.C. 2871(g)(1)(B)), to 
     provide technical assistance as described in subsections 
     (f)(1) and (g)(1) of section 116 of this Act, in lieu of 
     incentive grants under section 503 of the Workforce 
     Investment Act of 1998 (20 U.S.C. 9273) as provided in 
     section 136(g)(2) of such Act (29 U.S.C. 2871(g)(2)).
       (c) Application Date for State and Local Plan Provisions.--
       (1) Implementation.--Sections 112 and 118 of the Workforce 
     Investment Act of 1998 (29 U.S.C. 2822, 2833), as in effect 
     on the day before the date of enactment of this Act, shall 
     apply to implementation of State and local plans, in lieu of 
     sections 102 and 103, and section 108, respectively, of this 
     Act, for the first full program year after the date of 
     enactment of this Act.
       (2) Special provisions.--For purposes of the application 
     described in paragraph (1)--
       (A) except as otherwise specified, a reference in section 
     112 or 118 of the Workforce Investment Act of 1998 to a 
     provision in such Act (29 U.S.C. 2801 et seq.), other than to 
     a provision in or to either such section or to section 136 of 
     such Act, shall be deemed to refer to the corresponding 
     provision of this Act;
       (B) the terms ``local area'', ``local board'', ``one-stop 
     partner'', and``State board'' have the meanings given the 
     terms in section 3 of this Act;
       (C) except as provided in subparagraph (B), terms used in 
     such section 112 or 118 shall have the meanings given the 
     terms in section 101 of the Workforce Investment Act of 1998 
     (29 U.S.C. 2801); and
       (D) section 112(b)(18)(D) of the Workforce Investment Act 
     of 1998 (29 U.S.C. 2822(b)(18)(D)) shall not apply.
       (3) Submission.--Sections 102, 103, and 108 of this Act 
     shall apply to plans for the second full program year after 
     the date of enactment, including the development, submission, 
     and approval of such plans during the first full program year 
     after such date.

                  Subtitle B--Amendments to Other Laws

     SEC. 511. REPEAL OF THE WORKFORCE INVESTMENT ACT OF 1998.

       (a) Workforce Investment Act of 1998.--The Workforce 
     Investment Act of 1998 (29 U.S.C. 2801 et seq.) is repealed.
       (b) Grants to States for Workplace and Community Transition 
     Training for Incarcerated Individuals.--Section 821 of the 
     Higher Education Amendments of 1998 (20 U.S.C. 1151) is 
     repealed.

     SEC. 512. CONFORMING AMENDMENTS.

       (a) American Competitiveness and Workforce Improvement Act 
     of 1998.--Section 414(c)(3)(C) of the American 
     Competitiveness and Workforce Improvement Act of 1998 (29 
     U.S.C. 2916a(3)(C)) is amended by striking ``entities 
     involved in administering the workforce investment system 
     established under title I of the Workforce Investment Act of 
     1998'' and inserting ``entities involved in administering the 
     workforce development system, as defined in section 3 of the 
     Workforce Innovation and Opportunity Act''.
       (b) Assistive Technology Act of 1998.--The Assistive 
     Technology Act of 1998 (29 U.S.C. 3001 et seq.) is amended as 
     follows:
       (1) Section 3(1)(C) of such Act (29 U.S.C. 3002(1)(C)) is 
     amended by striking ``such as a one-stop partner, as defined 
     in section 101 of the Workforce Investment Act of 1998 (29 
     U.S.C. 2801)'' and inserting ``such as a one-stop partner, as 
     defined in section 3 of the Workforce Innovation and 
     Opportunity Act''.
       (2) Section 4 of such Act (29 U.S.C. 3003) is amended--
       (A) in subsection (c)(2)(B)(i)(IV), by striking ``a 
     representative of the State workforce investment board 
     established under section 111 of the Workforce Investment Act 
     of 1998 (29 U.S.C. 2821)'' and inserting ``a representative 
     of the State workforce development board established under 
     section 101 of the Workforce Innovation and Opportunity 
     Act''; and
       (B) in subsection (e)--
       (i) in paragraph (2)(D)(i), by striking ``such as one-stop 
     partners, as defined in section 101 of the Workforce 
     Investment Act of 1998 (29 U.S.C. 2801),'' and inserting 
     ``such as one-stop partners, as defined in section 3 of the 
     Workforce Innovation and Opportunity Act,''; and
       (ii) in paragraph (3)(B)(ii)(I)(aa), by striking ``with 
     entities in the statewide and local workforce investment 
     systems established under the Workforce Investment Act of 
     1998 (29 U.S.C. 2801 et seq.),'' and inserting ``with 
     entities in the statewide and local workforce development 
     systems established under the Workforce Innovation and 
     Opportunity Act,''.
       (c) Alaska Natural Gas Pipeline Act.--Section 113(a)(2) of 
     the Alaska Natural Gas Pipeline Act (15 U.S.C. 720k(a)(2)) is 
     amended by striking ``consistent with the vision and goals 
     set forth in the State of Alaska Unified Plan, as developed 
     pursuant to the Workforce Investment Act of 1998 (29 U.S.C. 
     2801 et seq.)'' and inserting ``consistent with the vision 
     and goals set forth in the State of Alaska unified plan or 
     combined plan, as appropriate, as developed pursuant to 
     section 102 or 103, as appropriate, of the Workforce 
     Innovation and Opportunity Act''.
       (d) Atomic Energy Defense Act.--Section 4604(c)(6)(A) of 
     the Atomic Energy Defense Act (50 U.S.C. 2704(c)(6)(A)) is 
     amended by striking ``programs carried out by the Secretary 
     of Labor under the Job Training Partnership Act or title I of 
     the Workforce Investment Act of 1998 (29 U.S.C. 2801 et 
     seq.)'' and inserting ``programs carried out by the Secretary 
     of Labor under title I of the Workforce Innovation and 
     Opportunity Act''.
       (e) Carl D. Perkins Career and Technical Education Act of 
     2006.--The Carl D. Perkins Career and Technical Education Act 
     of 2006 (20 U.S.C. 2301 et seq.) is amended as follows:
       (1) Section 118(d)(2) of such Act (20 U.S.C. 2328(d)(2)) is 
     amended--
       (A) in the paragraph heading, by striking ``Public law 105-
     220'' and inserting ``Workforce innovation and opportunity 
     act''; and
       (B) by striking ``functions and activities carried out 
     under Public Law 105-220'' and inserting ``functions and 
     activities carried out under the Workforce Innovation and 
     Opportunity Act''.
       (2) Section 121(a)(4) of such Act (20 U.S.C. 2341(a)(4)) is 
     amended--
       (A) in subparagraph (A), by striking ``activities 
     undertaken by the State boards under section 111 of Public 
     Law 105-220'' and inserting ``activities undertaken by the 
     State boards under section 101 of the Workforce Innovation 
     and Opportunity Act''; and
       (B) in subparagraph (B), by striking ``the service delivery 
     system under section 121 of Public Law 105-220'' and 
     inserting ``the one-stop delivery system under section 121 of 
     the Workforce Innovation and Opportunity Act''.
       (3) Section 122 of such Act (20 U.S.C. 2342) is amended--
       (A) in subsection (b)(1)(A)(viii), by striking ``entities 
     participating in activities described in section 111 of 
     Public Law 105-220'' and inserting ``entities participating 
     in activities described in section 101 of the Workforce 
     Innovation and Opportunity Act'';
       (B) in subsection (c)(20), by striking ``the description 
     and information specified in sections 112(b)(8) and 121(c) of 
     Public Law 105-220 concerning the provision of services only 
     for postsecondary students and school dropouts'' and 
     inserting ``the description and information specified in 
     subparagraphs (B) and (C)(iii) of section 102(b)(2), and, as 
     appropriate, section 103(b)(3)(A), and section 121(c), of the 
     Workforce Innovation and Opportunity Act concerning the 
     provision of services only for postsecondary students and 
     school dropouts''; and
       (C) in subsection (d)(2)--
       (i) in the paragraph heading, by striking ``501 plan'' and 
     inserting ``combined plan''; and
       (ii) by striking ``as part of the plan submitted under 
     section 501 of Public Law 105-220'' and inserting ``as part 
     of the plan submitted under section 103 of the Workforce 
     Innovation and Opportunity Act''.
       (4) Section 124(c)(13) of such Act (20 U.S.C. 2344(c)(13)) 
     is amended by striking ``such as through referral to the 
     system established under section 121 of Public Law 105-220'' 
     and inserting ``such as through referral to the system 
     established under section 121 of the Workforce Innovation and 
     Opportunity Act''.
       (5) Section 134(b)(5) of such Act (20 U.S.C. 2354(b)(5)) is 
     amended by striking ``entities participating in activities 
     described in section 117 of Public Law 105-220 (if 
     applicable)'' and inserting ``entities participating in 
     activities described in section 107 of the Workforce 
     Innovation and Opportunity Act (if applicable)''.
       (6) Section 135(c)(16) of such Act (20 U.S.C. 2355(c)(16)) 
     is amended by striking ``such as through referral to the 
     system established under section 121 of Public Law 105-220 
     (29 U.S.C. 2801 et seq.)'' and inserting ``such as through 
     referral to the system established under section 121 of the 
     Workforce Innovation and Opportunity Act''.
       (7) Section 321(b)(1) of such Act (20 U.S.C. 2411(b)(1)) is 
     amended by striking ``Chapters

[[Page 10981]]

     4 and 5 of subtitle B of title I of Public Law 105-220'' and 
     inserting ``Chapters 2 and 3 of subtitle B of title I of the 
     Workforce Innovation and Opportunity Act''.
       (f) Community Services Block Grant Act.--Section 676(b)(5) 
     of the Community Services Block Grant Act (42 U.S.C. 
     9908(b)(5)) is amended by striking ``the eligible entities 
     will coordinate the provision of employment and training 
     activities, as defined in section 101 of such Act, in the 
     State and in communities with entities providing activities 
     through statewide and local workforce investment systems 
     under the Workforce Investment Act of 1998'' and inserting 
     ``the eligible entities will coordinate the provision of 
     employment and training activities, as defined in section 3 
     of the Workforce Innovation and Opportunity Act, in the State 
     and in communities with entities providing activities through 
     statewide and local workforce development systems under such 
     Act''.
       (g) Compact of Free Association Amendments Act of 2003.--
     The Compact of Free Association Amendments Act of 2003 (48 
     U.S.C. 1921 et seq.) is amended as follows:
       (1) Section 105(f)(1)(B)(iii) of such Act (48 U.S.C. 
     1921d(f)(1)(B)(iii)) is amended by striking ``title I of the 
     Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.), 
     other than subtitle C of that Act (29 U.S.C. 2881 et seq.) 
     (Job Corps), title II of the Workforce Investment Act of 1998 
     (20 U.S.C. 9201 et seq.; commonly known as the Adult 
     Education and Family Literacy Act),'' and inserting ``titles 
     I (other than subtitle C) and II of the Workforce Innovation 
     and Opportunity Act,''.
       (2) Section 108(a) of such Act (48 U.S.C. 1921g(a)) is 
     amended by striking ``subtitle C of title I of the Workforce 
     Investment Act of 1998 (29 U.S.C. 2881 et seq.; relating to 
     Job Corps)'' and inserting ``subtitle C of title I of the 
     Workforce Innovation and Opportunity Act (relating to Job 
     Corps)''.
       (h) Domestic Volunteer Service Act of 1973.--Section 103(d) 
     of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 
     4953(d)) is amended by striking ``employment.'' and all that 
     follows and inserting the following: ``employment. Whenever 
     feasible, such efforts shall be coordinated with an 
     appropriate local workforce development board established 
     under section 107 of the Workforce Innovation and Opportunity 
     Act.''.
       (i) Elementary and Secondary Education Act of 1965.--The 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6301 et seq.) is amended as follows:
       (1) Section 1203(c)(2)(A) of such Act (20 U.S.C. 
     6363(c)(2)(A)) is amended--
       (A) by striking ``, in consultation with the National 
     Institute for Literacy,''; and
       (B) by striking clause (ii); and
       (C) by redesignating clauses (iii) and (iv) as clauses (ii) 
     and (iii), respectively.
       (2) Section 1235(9)(B) of such Act (20 U.S.C. 6381d(9)(B)) 
     is amended by striking ``any relevant programs under the 
     Adult Education and Family Literacy Act, the Individuals with 
     Disabilities Education Act, and title I of the Workforce 
     Investment Act of 1998'' and inserting ``any relevant 
     programs under the Adult Education and Family Literacy Act, 
     the Individuals with Disabilities Education Act, and title I 
     of the Workforce Innovation and Opportunity Act''.
       (3) Section 1423(9) of such Act (20 U.S.C. 6453(9)) is 
     amended by striking ``a description of how the program under 
     this subpart will be coordinated with other Federal, State, 
     and local programs, such as programs under title I of Public 
     Law 105-220'' and inserting ``a description of how the 
     program under this subpart will be coordinated with other 
     Federal, State, and local programs, such as programs under 
     title I of the Workforce Innovation and Opportunity Act''.
       (4) Section 1425(9) of such Act (20 U.S.C. 6455(9)) is 
     amended by striking ``coordinate funds received under this 
     subpart with other local, State, and Federal funds available 
     to provide services to participating children and youth, such 
     as funds made available under title I of Public Law 105-
     220,'' and inserting ``coordinate funds received under this 
     subpart with other local, State, and Federal funds available 
     to provide services to participating children and youth, such 
     as funds made available under title I of the Workforce 
     Innovation and Opportunity Act,''.
       (5) Section 7202(13)(H) of such Act (20 U.S.C. 7512(13)(H)) 
     is amended by striking ``the Workforce Investment Act of 1998 
     (29 U.S.C. 2801 et seq.)'' and inserting ``the Workforce 
     Innovation and Opportunity Act''.
       (j) Environmental Programs Assistance Act of 1984.--Section 
     2(a) of the Environmental Programs Assistance Act of 1984 (42 
     U.S.C. 4368a(a)) is amended by striking ``Funding for such 
     grants or agreements may be made available from such programs 
     or through title V of the Older Americans Act of 1965 and 
     subtitle D of title I of the Workforce Investment Act of 
     1998'' and inserting ``Funding for such grants or agreements 
     may be made available from such programs or through title V 
     of the Older Americans Act of 1965 and subtitle D of title I 
     of the Workforce Innovation and Opportunity Act''.
       (k) Energy Conservation and Production Act.--Section 
     414(b)(3) of the Energy Conservation and Production Act (42 
     U.S.C. 6864(b)(3)) is amended by striking ``securing, to the 
     maximum extent practicable, the services of volunteers and 
     training participants and public service employment workers, 
     pursuant to title I of the Workforce Investment Act of 1998'' 
     and inserting ``securing, to the maximum extent practicable, 
     the services of volunteers and training participants and 
     public service employment workers, pursuant to title I of the 
     Workforce Innovation and Opportunity Act''.
       (l) Food and Nutrition Act of 2008.--The Food and Nutrition 
     Act of 2008 (7 U.S.C. 2011 et seq.) is amended as follows:
       (1) Section 5(l) of such Act (7 U.S.C. 2014(l)) is amended 
     by striking ``Notwithstanding section 181(a)(2) of the 
     Workforce Investment Act of 1998, earnings to individuals 
     participating in on-the-job-training under title I of the 
     Workforce Investment Act of 1998'' and inserting 
     ``Notwithstanding section 181(a)(2) of the Workforce 
     Innovation and Opportunity Act, earnings to individuals 
     participating in on-the-job training under title I of such 
     Act''.
       (2) Section 6 of such Act (7 U.S.C. 2015) is amended--
       (A) in subsection (d)(4)(M), by striking ``activities under 
     title I of the Workforce Investment Act of 1998'' and 
     inserting ``activities under title I of the Workforce 
     Innovation and Opportunity Act'';
       (B) in subsection (e)(3)(A), by striking ``a program under 
     title I of the Workforce Investment Act of 1998'' and 
     inserting ``a program under title I of the Workforce 
     Innovation and Opportunity Act''; and
       (C) in subsection (o)(1)(A), by striking ``a program under 
     the title I of the Workforce Investment Act of 1998'' and 
     inserting ``a program under title I of the Workforce 
     Innovation and Opportunity Act''.
       (3) Section 17(b)(2) of such Act (7 U.S.C. 2026(b)(2)) is 
     amended by striking ``a program carried out under title I of 
     the Workforce Investment Act of 1998'' and inserting ``a 
     program carried out under title I of the Workforce Innovation 
     and Opportunity Act''.
       (m) Full Employment and Balanced Growth Act of 1978.--
     Section 206 of the Full Employment and Balanced Growth Act of 
     1978 (15 U.S.C. 3116) is amended--
       (1) in subsection (b), in the matter preceding paragraph 
     (1), by striking ``the Secretary of Labor shall, as 
     appropriate, fully utilize the authority provided under the 
     Job Training Partnership Act and title I of the Workforce 
     Investment Act of 1998'' and inserting ``the Secretary of 
     Labor shall, as appropriate, fully utilize the authority 
     provided under title I of the Workforce Innovation and 
     Opportunity Act''; and
       (2) in subsection (c)(1), by striking ``the President 
     shall, as may be authorized by law, establish reservoirs of 
     public employment and private nonprofit employment projects, 
     to be approved by the Secretary of Labor, through expansion 
     of title I of the Workforce Investment Act of 1998'' and 
     inserting ``the President shall, as may be authorized by law, 
     establish reservoirs of public employment and private 
     nonprofit employment projects, to be approved by the 
     Secretary of Labor, through expansion of activities under 
     title I of the Workforce Innovation and Opportunity Act''.
       (n) Higher Education Act of 1965.--The Higher Education Act 
     of 1965 (20 U.S.C. 1001 et seq.) is amended as follows:
       (1) Section 418A of such Act (20 U.S.C. 1070d-2) is 
     amended--
       (A) in subsection (b)(1)(B)(ii), by striking ``section 167 
     of the Workforce Investment Act of 1998'' and inserting 
     ``section 167 of the Workforce Innovation and Opportunity 
     Act''; and
       (B) in subsection (c)(1)(A), by striking ``section 167 of 
     the Workforce Investment Act of 1998'' and inserting 
     ``section 167 of the Workforce Innovation and Opportunity 
     Act''.
       (2) Section 479(d)(1) of such Act (20 U.S.C. 1087ss(d)(1)) 
     is amended by striking ``The term `dislocated worker' has the 
     meaning given the term in section 101 of the Workforce 
     Investment Act of 1998 (29 U.S.C. 2801)'' and inserting ``The 
     term `dislocated worker' has the meaning given the term in 
     section 3 of the Workforce Innovation and Opportunity Act''.
       (3) Section 479A(a) of such Act (20 U.S.C. 1087tt(a)) is 
     amended by striking ``a dislocated worker (as defined in 
     section 101 of the Workforce Investment Act of 1998)'' and 
     inserting ``a dislocated worker (as defined in section 3 of 
     the Workforce Innovation and Opportunity Act)''.
       (4) Section 480(b)(1)(I) of such Act (20 U.S.C. 
     1087vv(b)(1)(I)) is amended by striking ``benefits received 
     through participation in employment and training activities 
     under title I of the Workforce Investment Act of 1998 (29 
     U.S.C. 2801 et seq.)'' and inserting ``benefits received 
     through participation in employment and training activities 
     under title I of the Workforce Innovation and Opportunity 
     Act''.
       (5) Section 803 of such Act (20 U.S.C. 1161c) is amended--
       (A) in subsection (i)(1), by striking ``for changes to this 
     Act and related Acts, such as the Carl D. Perkins Career and 
     Technical Education Act of 2006 and the Workforce Investment 
     Act of 1998 (including titles I and II), to help create and 
     sustain business and industry workforce partnerships at 
     institutions of higher education'' and inserting ``for 
     changes to this Act and related Acts, such as the Carl D. 
     Perkins Career and Technical

[[Page 10982]]

     Education Act of 2006 and the Workforce Innovation and 
     Opportunity Act (including titles I and II), to help create 
     and sustain business and industry workforce partnerships at 
     institutions of higher education''; and
       (B) in subsection (j)(1)--
       (i) in subparagraph (A)(ii), by striking ``local board (as 
     such term is defined in section 101 of the Workforce 
     Investment Act of 1998 (29 U.S.C. 2801))'' and inserting 
     ``local board (as such term is defined in section 3 of the 
     Workforce Innovation and Opportunity Act)''; and
       (ii) in subparagraph (B), by striking ``a State board (as 
     such term is defined in section 101 of the Workforce 
     Investment Act of 1998 (29 U.S.C. 2801))'' and inserting ``a 
     State board (as such term is defined in section 3 of the 
     Workforce Innovation and Opportunity Act)''.
       (6) Section 861(c)(1)(B) of such Act (20 U.S.C. 
     1161q(c)(1)(B)) is amended by striking ``local boards (as 
     such term is defined in section 101 of the Workforce 
     Investment Act of 1998 (29 U.S.C. 2801))'' and inserting 
     ``local boards (as such term is defined in section 3 of the 
     Workforce Innovation and Opportunity Act)''.
       (7) Section 872(b)(2)(E) of such Act (20 U.S.C. 
     1161s(b)(2)(E)) is amended by striking ``local boards (as 
     defined in section 101 of the Workforce Investment Act of 
     1998 (29 U.S.C. 2801))'' and inserting ``local boards (as 
     defined in section 3 of the Workforce Innovation and 
     Opportunity Act)''.
       (o) Housing Act of 1949.--Section 504(c)(3) of the Housing 
     Act of 1949 (42 U.S.C. 1474(c)(3)) is amended by striking 
     ``an insufficient number of volunteers and training 
     participants and public service employment workers, assisted 
     pursuant to title I of the Workforce Investment Act of 1998 
     or the Older American Community Service Employment Act,'' and 
     inserting ``an insufficient number of volunteers and training 
     participants and public service employment workers, assisted 
     pursuant to title I of the Workforce Innovation and 
     Opportunity Act or the Community Service Senior Opportunities 
     Act,''.
       (p) Housing and Urban Development Act of 1968.--Section 3 
     of the Housing and Urban Development Act of 1968 (12 U.S.C. 
     1701u) is amended--
       (1) in subsection (c)--
       (A) in paragraph (1)(B)(iii), by striking ``participants in 
     YouthBuild programs receiving assistance under section 173A 
     of the Workforce Investment Act of 1998'' and inserting 
     ``participants in YouthBuild programs receiving assistance 
     under section 171 of the Workforce Innovation and Opportunity 
     Act''; and
       (B) in paragraph (2)(B), by striking ``participants in 
     YouthBuild programs receiving assistance under section 173A 
     of the Workforce Investment Act of 1998'' and inserting 
     ``participants in YouthBuild programs receiving assistance 
     under section 171 of the Workforce Innovation and Opportunity 
     Act''; and
       (2) in subsection (d)--
       (A) in paragraph (1)(B)(iii), by striking ``To YouthBuild 
     programs receiving assistance under section 173A of the 
     Workforce Investment Act of 1998'' and inserting ``To 
     YouthBuild programs receiving assistance under section 171 of 
     the Workforce Innovation and Opportunity Act''; and
       (B) in paragraph (2)(B), by striking ``to YouthBuild 
     programs receiving assistance under section 173A of the 
     Workforce Investment Act of 1998'' and inserting ``to 
     YouthBuild programs receiving assistance under section 171 of 
     the Workforce Innovation and Opportunity Act''.
       (q) Immigration and Nationality Act.--Section 245A(h)(4)(F) 
     of the Immigration and Nationality Act (8 U.S.C. 
     1255a(h)(4)(F)) is amended by striking ``Title I of the 
     Workforce Investment Act of 1998'' and inserting ``Title I of 
     the Workforce Innovation and Opportunity Act''.
       (r) Internal Revenue Code of 1986.--Section 7527(e)(2) of 
     the Internal Revenue Code of 1986 is amended by inserting 
     ``(as in effect on the day before the date of enactment of 
     the Workforce Innovation and Opportunity Act)'' after ``of 
     1998''.
       (s) McKinney-Vento Homeless Assistance Act.--Section 
     103(c)(2) of the McKinney-Vento Homeless Assistance Act (42 
     U.S.C. 11302(c)(2)) is amended by striking ``a homeless 
     individual shall be eligible for assistance under title I of 
     the Workforce Investment Act of 1998'' and inserting ``a 
     homeless individual shall be eligible for assistance under 
     title I of the Workforce Innovation and Opportunity Act''.
       (t) Museum and Library Services Act.--The Museum and 
     Library Services Act (20 U.S.C. 9101 et seq.) is amended as 
     follows:
       (1) Section 204(f)(3) of such Act (20 U.S.C. 9103(f)(3)) is 
     amended by striking ``activities under the Workforce 
     Investment Act of 1998 (29 U.S.C. 2801 et seq.) (including 
     activities under section 134(c) of such Act) (29 U.S.C. 
     2864(c))'' and inserting ``activities under the Workforce 
     Innovation and Opportunity Act (including activities under 
     section 121(e) of such Act))''.
       (2) Section 224(b)(6)(C) of such Act (20 U.S.C. 
     9134(b)(6)(C)) is amended--
       (A) in clause (i), by striking ``the activities carried out 
     by the State workforce investment board under section 111(d) 
     of the Workforce Investment Act of 1998 (29 U.S.C. 2821(d))'' 
     and inserting ``the activities carried out by the State 
     workforce development board under section 101 of the 
     Workforce Innovation and Opportunity Act''; and
       (B) in clause (ii), by striking ``the State's one-stop 
     delivery system established under section 134(c) of such Act 
     (29 U.S.C. 2864(c))'' and inserting ``the State's one-stop 
     delivery system established under section 121(e) of such 
     Act''.
       (u) National and Community Service Act of 1990.--The 
     National and Community Service Act of 1990 (42 U.S.C. 12501 
     et seq.) is amended as follows:
       (1) Section 112(a)(3)(B) of such Act (42 U.S.C. 
     12523(a)(3)(B)) is amended by striking ``or who may 
     participate in a Youthbuild program under section 173A of the 
     Workforce Investment Act of 1998 (29 U.S.C. 2918a)'' and 
     inserting ``or who may participate in a Youthbuild program 
     under section 171 of the Workforce Innovation and Opportunity 
     Act''.
       (2) Section 199L(a) of such Act (42 U.S.C. 12655m(a)) is 
     amended by striking ``coordinated with activities supported 
     with assistance made available under programs administered by 
     the heads of such agencies (including title I of the 
     Workforce Investment Act of 1998)'' and inserting 
     ``coordinated with activities supported with assistance made 
     available under programs administered by the heads of such 
     agencies (including title I of the Workforce Innovation and 
     Opportunity Act)''.
       (v) National Energy Conservation Policy Act.--Section 233 
     of the National Energy Conservation and Policy Act (42 U.S.C. 
     6873) is amended, in the matter preceding paragraph (1), by 
     striking ``a sufficient number of volunteers and training 
     participants and public service employment workers, assisted 
     pursuant to title I of the Workforce Investment Act of 1998 
     and the Older American Community Service Employment Act'' and 
     inserting ``a sufficient number of volunteers and training 
     participants and public service employment workers, assisted 
     pursuant to title I of the Workforce Innovation and 
     Opportunity Act and the Community Service Senior 
     Opportunities Act''.
       (w) Older Americans Act of 1965.--The Older Americans Act 
     of 1965 (42 U.S.C. 3001 et seq.) is amended as follows:
       (1) Section 203 of such Act (42 U.S.C. 3013) is amended--
       (A) in subsection (a)(2), by striking ``In particular, the 
     Secretary of Labor shall consult and cooperate with the 
     Assistant Secretary in carrying out title I of the Workforce 
     Investment Act of 1998'' and inserting ``In particular, the 
     Secretary of Labor shall consult and cooperate with the 
     Assistant Secretary in carrying out title I of the Workforce 
     Innovation and Opportunity Act''; and
       (B) in subsection (b)(1), by striking ``title I of the 
     Workforce Investment Act of 1998'' and inserting ``title I of 
     the Workforce Innovation and Opportunity Act''.
       (2) Section 321(a)(12) of such Act (42 U.S.C. 3030d(a)(12)) 
     is amended by striking ``including programs carried out under 
     the Workforce Investment Act of 1998 (29 U.S.C. 2801 et 
     seq.)'' and inserting ``including programs carried out under 
     the Workforce Innovation and Opportunity Act''.
       (3) Section 502 of such Act (42 U.S.C. 3056) is amended--
       (A) in subsection (b)--
       (i) in paragraph (1)--

       (I) in subparagraph (H), by striking ``will coordinate 
     activities with training and other services provided under 
     title I of the Workforce Investment Act of 1998 (29 U.S.C. 
     2801 et seq.), including utilizing the one-stop delivery 
     system of the local workforce investment areas involved'' and 
     inserting ``will coordinate activities with training and 
     other services provided under title I of the Workforce 
     Innovation and Opportunity Act, including utilizing the one-
     stop delivery system of the local workforce development areas 
     involved'';
       (II) in subparagraph (O)--

       (aa) by striking ``through the one-stop delivery system of 
     the local workforce investment areas involved as established 
     under section 134(c) of the Workforce Investment Act of 1998 
     (29 U.S.C. 2864(c)),'' and inserting ``through the one-stop 
     delivery system of the local workforce development areas 
     involved as established under section 121(e) of the Workforce 
     Innovation and Opportunity Act,''; and
       (bb) by striking ``and will be involved in the planning and 
     operations of such system pursuant to a memorandum of 
     understanding with the local workforce investment board in 
     accordance with section 121(c) of such Act (29 U.S.C. 
     2841(c))'' and inserting ``and will be involved in the 
     planning and operations of such system pursuant to a 
     memorandum of understanding with the local workforce 
     development board in accordance with section 121(c) of such 
     Act''; and

       (III) in subparagraph (Q)--

       (aa) in clause (i), by striking ``paragraph (8), relating 
     to coordination with other Federal programs, of section 
     112(b) of the Workforce Investment Act of 1998 (29 U.S.C. 
     2822(b))'' and inserting ``clauses (ii) and (viii) of 
     paragraph (2)(B), relating to coordination with other Federal 
     programs, of section 102(b) of the Workforce Innovation and 
     Opportunity Act''; and
       (bb) in clause (ii), by striking ``paragraph (14), relating 
     to implementation of one-stop

[[Page 10983]]

     delivery systems, of section 112(b) of the Workforce 
     Investment Act of 1998'' and inserting ``paragraph (2)(C)(i), 
     relating to implementation of one-stop delivery systems, of 
     section 102(b) of the Workforce Innovation and Opportunity 
     Act''; and
       (ii) in paragraph (3)--

       (I) in subparagraph (A), by striking ``An assessment and 
     service strategy required by paragraph (1)(N) to be prepared 
     for an eligible individual shall satisfy any condition for an 
     assessment and service strategy or individual employment plan 
     for an adult participant under subtitle B of title I of the 
     Workforce Investment Act of 1998 (29 U.S.C. 2811 et seq.), in 
     order to determine whether such eligible individual also 
     qualifies for intensive or training services described in 
     section 134(d) of such Act (29 U.S.C. 2864(d)).'' and 
     inserting ``An assessment and service strategy required by 
     paragraph (1)(N) to be prepared for an eligible individual 
     shall satisfy any condition for an assessment and service 
     strategy or individual employment plan for an adult 
     participant under subtitle B of title I of the Workforce 
     Innovation and Opportunity Act, in order to determine whether 
     such eligible individual also qualifies for career or 
     training services described in section 134(c) of such Act.''; 
     and
       (II) in subparagraph (B)--

       (aa) in the subparagraph heading, by striking ``workforce 
     investment act of 1998'' and inserting ``workforce innovation 
     and opportunity act''; and
       (bb) by striking ``An assessment and service strategy or 
     individual employment plan prepared under subtitle B of title 
     I of the Workforce Investment Act of 1998 (29 U.S.C. 2811 et 
     seq.)'' and inserting ``An assessment and service strategy or 
     individual employment plan prepared under subtitle B of title 
     I of the Workforce Innovation and Opportunity Act''; and
       (B) in subsection (e)(2)(B)(ii), by striking ``one-stop 
     delivery systems established under title I of the Workforce 
     Investment Act of 1998 (29 U.S.C. 2801 et seq.)'' and 
     inserting ``one-stop delivery systems established under 
     section 121(e) of the Workforce Innovation and Opportunity 
     Act''.
       (4) Section 503 of such Act (42 U.S.C. 3056a) is amended--
       (A) in subsection (a)--
       (i) in paragraph (2)(A), by striking ``the State and local 
     workforce investment boards established under title I of the 
     Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.)'' 
     and inserting ``the State and local workforce development 
     boards established under title I of the Workforce Innovation 
     and Opportunity Act''; and
       (ii) in paragraph (4)(F), by striking ``plans for 
     facilitating the coordination of activities of grantees in 
     the State under this title with activities carried out in the 
     State under title I of the Workforce Investment Act of 1998 
     (29 U.S.C. 2801 et seq.)'' and inserting ``plans for 
     facilitating the coordination of activities of grantees in 
     the State under this title with activities carried out in the 
     State under title I of the Workforce Innovation and 
     Opportunity Act''; and
       (B) in subsection (b)(2)(A), by striking ``with the program 
     carried out under the Workforce Investment Act of 1998 (29 
     U.S.C. 2801 et seq.)'' and inserting ``with the program 
     carried out under the Workforce Innovation and Opportunity 
     Act''.
       (5) Section 505(c)(1) (42 U.S.C. 3056c(c)(1)) of such Act 
     is amended by striking ``activities carried out under other 
     Acts, especially activities provided under the Workforce 
     Investment Act of 1998 (29 U.S.C. 2801 et seq.), including 
     activities provided through one-stop delivery systems 
     established under section 134(c)) of such Act (29 U.S.C. 
     2864(c)),'' and inserting ``activities carried out under 
     other Acts, especially activities provided under the 
     Workforce Innovation and Opportunity Act, including 
     activities provided through one-stop delivery systems 
     established under section 121(e) of such Act,''.
       (6) Section 510 of such Act (42 U.S.C. 3056h) is amended--
       (A) by striking ``by local workforce investment boards and 
     one-stop operators established under title I of the Workforce 
     Investment Act of 1998 (29 U.S.C. 2801 et seq.)'' and 
     inserting ``by local workforce development boards and one-
     stop operators established under title I of the Workforce 
     Innovation and Opportunity Act''; and
       (B) by striking ``such title I'' and inserting ``such 
     title''.
       (7) Section 511 of such Act (42 U.S.C. 3056i) is amended--
       (A) in subsection (a), by striking ``Grantees under this 
     title shall be one-stop partners as described in 
     subparagraphs (A) and (B)(vi) of section 121(b)(1) of the 
     Workforce Investment Act of 1998 (29 U.S.C. 2841(b)(1)) in 
     the one-stop delivery system established under section 134(c) 
     of such Act (29 U.S.C. 2864(c)) for the appropriate local 
     workforce investment areas'' and inserting ``Grantees under 
     this title shall be one-stop partners as described in 
     subparagraphs (A) and (B)(v) of section 121(b)(1) of the 
     Workforce Innovation and Opportunity Act in the one-stop 
     delivery system established under section 121(e) of such Act 
     for the appropriate local workforce development areas''; and
       (B) in subsection (b)(2), by striking ``be signatories of 
     the memorandum of understanding established under section 
     121(c) of the Workforce Investment Act of 1998 (29 U.S.C. 
     2841(c))'' and inserting ``be signatories of the memorandum 
     of understanding established under section 121(c) of the 
     Workforce Innovation and Opportunity Act''.
       (8) Section 518(b)(2)(F) of such Act (42 U.S.C. 
     3056p(b)(2)(F)) is amended by striking ``has failed to find 
     employment after utilizing services provided under title I of 
     the Workforce Investment Act of 1998 (29 U.S.C. 2801 et 
     seq.)'' and inserting ``has failed to find employment after 
     utilizing services provided under title I of the Workforce 
     Innovation and Opportunity Act''.
       (x) Personal Responsibility and Work Opportunity 
     Reconciliation Act of 1996.--Section 403(c)(2)(K) of the 
     Personal Responsibility and Work Opportunity Reconciliation 
     Act of 1996 (8 U.S.C. 1613(c)(2)(K)) is amended by striking 
     ``Benefits under the title I of the Workforce Investment Act 
     of 1998'' and inserting ``Benefits under title I of the 
     Workforce Innovation and Opportunity Act''.
       (y) Patient Protection and Affordable Care Act.--Section 
     5101(d)(3)(D) of the Patient Protection and Affordable Care 
     Act (42 U.S. 294q(d)(3)(D)) is amended by striking ``other 
     health care workforce programs, including those supported 
     through the Workforce Investment Act of 1998 (29 U.S.C. 2801 
     et seq.),'' and inserting ``other health care workforce 
     programs, including those supported through the Workforce 
     Innovation and Opportunity Act,''.
       (z) Public Health Service Act.--The Public Health Service 
     Act (42 U.S.C. 201 et seq.) is amended as follows:
       (1) Section 399V(e) of such Act (42 U.S.C. 280g-11(e)) is 
     amended by striking ``one-stop delivery systems under section 
     134(c) of the Workforce Investment Act of 1998'' and 
     inserting ``one-stop delivery systems under section 121(e) of 
     the Workforce Innovation and Opportunity Act''.
       (2) Section 751(c)(1)(A) of such Act (42 U.S.C. 
     294a(c)(1)(A)) is amended by striking ``the applicable one-
     stop delivery system under section 134(c) of the Workforce 
     Investment Act of 1998,'' and inserting ``the applicable one-
     stop delivery system under section 121(e) of the Workforce 
     Innovation and Opportunity Act,''.
       (3) Section 799B(23) of such Act (42 U.S.C. 295p(23)) is 
     amended by striking ``one-stop delivery system described in 
     section 134(c) of the Workforce Investment Act of 1998 (29 
     U.S.C. 2864(c))'' and inserting ``one-stop delivery system 
     described in section 121(e) of the Workforce Innovation and 
     Opportunity Act''.
       (aa) Runaway and Homeless Youth Act.--Section 322(a)(7) of 
     the Runaway and Homeless Youth Act (42 U.S.C. 5714-2(a)(7)) 
     is amended by striking ``(including services and programs for 
     youth available under the Workforce Investment Act of 1998)'' 
     and inserting ``(including services and programs for youth 
     available under the Workforce Innovation and Opportunity 
     Act)''.
       (bb) Second Chance Act of 2007.--The Second Chance Act of 
     2007 (42 U.S.C. 17501 et seq.) is amended as follows:
       (1) Section 212 of such Act (42 U.S.C. 17532) is amended--
       (A) in subsection (c)(1)(B), by striking ``in coordination 
     with the one-stop partners and one-stop operators (as such 
     terms are defined in section 101 of the Workforce Investment 
     Act of 1998 (29 U.S.C. 2801)) that provide services at any 
     center operated under a one-stop delivery system established 
     under section 134(c) of the Workforce Investment Act of 1998 
     (29 U.S.C. 2864(c)),'' and inserting ``in coordination with 
     the one-stop partners and one-stop operators (as such terms 
     are defined in section 3 of the Workforce Innovation and 
     Opportunity Act) that provide services at any center operated 
     under a one-stop delivery system established under section 
     121(e) of the Workforce Innovation and Opportunity Act,''; 
     and
       (B) in subsection (d)(1)(B)(iii), by striking ``the local 
     workforce investment boards established under section 117 of 
     the Workforce Investment Act of 1998 (29 U.S.C. 2832)),'' and 
     inserting ``the local workforce development boards 
     established under section 107 of the Workforce Innovation and 
     Opportunity Act,''.
       (2) Section 231(e) of such Act (42 U.S.C. 17541(e)) is 
     amended by striking ``the one-stop partners and one-stop 
     operators (as such terms are defined in section 101 of the 
     Workforce Investment Act of 1998 (29 U.S.C. 2801)) that 
     provide services at any center operated under a one-stop 
     delivery system established under section 134(c) of the 
     Workforce Investment Act of 1998 (29 U.S.C. 2864(c))'' and 
     inserting ``the one-stop partners and one-stop operators (as 
     such terms are defined in section 3 of the Workforce 
     Innovation and Opportunity Act) that provide services at any 
     center operated under a one-stop delivery system established 
     under section 121(e) of the Workforce Innovation and 
     Opportunity Act''.
       (cc) Small Business Act.--Section 7(j)(13)(E) of the Small 
     Business Act (15 U.S.C. 636(j)(13)(E)) is amended by striking 
     ``an institution eligible to provide skills training or 
     upgrading under title I of the Workforce Investment Act of 
     1998'' and inserting ``an institution eligible to provide 
     skills training or upgrading under title I of the Workforce 
     Innovation and Opportunity Act''.

[[Page 10984]]

       (dd) Social Security Act.--The Social Security Act (42 
     U.S.C. 301 et seq.) is amended as follows:
       (1) Section 403(a)(5) of such Act (42 U.S.C. 603(a)(5)) is 
     amended--
       (A) in subparagraph (A)(vii)(I), by striking ``chief 
     elected official (as defined in section 101 of the Workforce 
     Investment Act of 1998)'' and inserting ``chief elected 
     official (as defined in section 3 of the Workforce Innovation 
     and Opportunity Act)''; and
       (B) in subparagraph (D)(ii), by striking ``local workforce 
     investment board established for the service delivery area 
     pursuant to title I of the Workforce Investment Act of 1998, 
     as appropriate'' and inserting ``local workforce development 
     board established for the local workforce development area 
     pursuant to title I of the Workforce Innovation and 
     Opportunity Act, as appropriate''.
       (2) Section 1148(f)(1)(B) of such Act (42 U.S.C. 1320b-
     19(f)(1)(B)) is amended by striking ``a one-stop delivery 
     system established under subtitle B of title I of the 
     Workforce Investment Act of 1998 (29 U.S.C. 2811 et seq.)'' 
     and inserting ``a one-stop delivery system established under 
     section 121(e) of the Workforce Innovation and Opportunity 
     Act''.
       (3) Section 1149(a)(3) of such Act (42 U.S.C. 1320b-
     20(a)(3)) is amended by striking ``a one-stop delivery system 
     established under subtitle B of title I of the Workforce 
     Investment Act of 1998 (29 U.S.C. 2811 et seq.)'' and 
     inserting ``a one-stop delivery system established under 
     section 121(e) of the Workforce Innovation and Opportunity 
     Act''.
       (4) Section 2008(a) of such Act (42 U.S.C. 1397g(a)) is 
     amended--
       (A) in paragraph (2)(B), by striking ``the State workforce 
     investment board established under section 111 of the 
     Workforce Investment Act of 1998'' and inserting ``the State 
     workforce development board established under section 101 of 
     the Workforce Innovation and Opportunity Act''; and
       (B) in paragraph (4)(A), by striking ``a local workforce 
     investment board established under section 117 of the 
     Workforce Investment Act of 1998,'' and inserting ``a local 
     workforce development board established under section 107 of 
     the Workforce Innovation and Opportunity Act,''.
       (ee) Title 18 of the United States Code.--Section 665 of 
     title 18 of the United States Code is amended--
       (1) in subsection (a), by striking ``Whoever, being an 
     officer, director, agent, or employee of, or connected in any 
     capacity with any agency or organization receiving financial 
     assistance or any funds under the Job Training Partnership 
     Act or title I of the Workforce Investment Act of 1998'' and 
     inserting ``Whoever, being an officer, director, agent, or 
     employee of, or connected in any capacity with any agency or 
     organization receiving financial assistance or any funds 
     under title I of the Workforce Innovation and Opportunity Act 
     or title I of the Workforce Investment Act of 1998'';
       (2) in subsection (b), by striking ``a contract of 
     employment in connection with a financial assistance 
     agreement or contract under the Job Training Partnership Act 
     or title I of the Workforce Investment Act of 1998'' and 
     inserting ``a contract of employment in connection with a 
     financial assistance agreement or contract under title I of 
     the Workforce Innovation and Opportunity Act or title I of 
     the Workforce Investment Act of 1998''; and
       (3) in subsection (c), by striking ``Whoever willfully 
     obstructs or impedes or willfully endeavors to obstruct or 
     impede, an investigation or inquiry under the Job Training 
     Partnership Act or title I of the Workforce Investment Act of 
     1998,'' and inserting ``Whoever willfully obstructs or 
     impedes or willfully endeavors to obstruct or impede, an 
     investigation or inquiry under title I of the Workforce 
     Innovation and Opportunity Act or title I of the Workforce 
     Investment Act of 1998,''.
       (ff) Title 31 of the United States Code.--Section 
     6703(a)(4) of title 31 of the United States Code is amended 
     by striking ``Programs under title I of the Workforce 
     Investment Act of 1998.'' and inserting ``Programs under 
     title I of the Workforce Innovation and Opportunity Act.''.
       (gg) Title 38 of the United States Code.--Title 38 of the 
     United States Code is amended as follows:
       (1) Section 4101(9) of title 38 of the United States Code 
     is amended by striking ``The term `intensive services' means 
     local employment and training services of the type described 
     in section 134(d)(3) of the Workforce Investment Act of 
     1998'' and inserting ``The term `career services' means local 
     employment and training services of the type described in 
     section 134(c)(2) of the Workforce Innovation and Opportunity 
     Act''.
       (2) Section 4102A of title 38 of the United States Code is 
     amended--
       (A) in subsection (d), by striking ``participation of 
     qualified veterans and eligible persons in employment and 
     training opportunities under title I of the Workforce 
     Investment Act of 1998'' and inserting ``participation of 
     qualified veterans and eligible persons in employment and 
     training opportunities under title I of the Workforce 
     Innovation and Opportunity Act''; and
       (B) in subsection (f)(2)(A), by striking ``be consistent 
     with State performance measures applicable under section 
     136(b) of the Workforce Investment Act of 1998'' and 
     inserting ``be consistent with State performance 
     accountability measures applicable under section 116(b) of 
     the Workforce Innovation and Opportunity Act''.
       (3) Section 4104A of title 38 of the United States Code is 
     amended--
       (A) in subsection (b)(1)(B), by striking ``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))'' and inserting ``the appropriate State boards 
     and local boards (as such terms are defined in section 3 of 
     the Workforce Innovation and Opportunity Act)''; and
       (B) in subsection (c)(1)(A), by striking ``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))'' and inserting ``the appropriate State boards 
     and local boards (as such terms are defined in section 3 of 
     the Workforce Innovation and Opportunity Act)''.
       (4) Section 4110B of title 38 of the United States Code is 
     amended by striking ``enter into an agreement with the 
     Secretary regarding the implementation of the Workforce 
     Investment Act of 1998 that includes the description and 
     information described in paragraphs (8) and (14) of section 
     112(b) of the Workforce Investment Act of 1998 (29 U.S.C. 
     2822(b))'' and inserting ``enter into an agreement with the 
     Secretary regarding the implementation of the Workforce 
     Innovation and Opportunity Act that includes the descriptions 
     described in sections 102(b)(2)(B)(ii) and 103(b)(3)(A) of 
     the Workforce Innovation and Opportunity Act and a 
     description of how the State board will carry out the 
     activities described in section 101(d)(3)(F) of such Act''.
       (5) Section 4213(a)(4) of title 38 of the United States 
     Code is amended by striking ``Any employment or training 
     program carried out under title I of the Workforce Investment 
     Act of 1998 (29 U.S.C. 2801 et seq.)'' and inserting ``Any 
     employment or training program carried out under title I of 
     the Workforce Innovation and Opportunity Act''.
       (hh) Trade Act of 1974.--The Trade Act of 1974 (19 U.S.C. 
     2101 et seq.) is amended as follows:
       (1) Section 221(a) of such Act (19 U.S.C. 2271) is 
     amended--
       (A) in paragraph (1)(C)--
       (i) by striking ``, one-stop operators or one-stop partners 
     (as defined in section 101 of the Workforce Investment Act of 
     1998 (29 U.S.C. 2801)) including State employment security 
     agencies,'' and inserting ``, one-stop operators or one-stop 
     partners (as defined in section 3 of the Workforce Innovation 
     and Opportunity Act) including State employment security 
     agencies,''; and
       (ii) by striking ``or the State dislocated worker unit 
     established under title I of such Act,'' and inserting ``or a 
     State dislocated worker unit,''; and
       (B) in subsection (a)(2)(A), by striking ``rapid response 
     activities and appropriate core and intensive services (as 
     described in section 134 of the Workforce Investment Act of 
     1998 (29 U.S.C. 2864)) authorized under other Federal laws'' 
     and inserting ``rapid response activities and appropriate 
     career services (as described in section 134 of the Workforce 
     Innovation and Opportunity Act) authorized under other 
     Federal laws''.
       (2) Section 222(d)(2)(A)(iv) of such Act (19 U.S.C. 
     2272(d)(2)(A)(iv)) is amended by striking ``one-stop 
     operators or one-stop partners (as defined in section 101 of 
     the Workforce Investment Act of 1998 (29 U.S.C. 2801))'' and 
     inserting ``one-stop operators or one-stop partners (as 
     defined in section 3 of the Workforce Innovation and 
     Opportunity Act)''.
       (3) Section 236(a)(5) of such Act (19 U.S.C. 2296(a)(5)) is 
     amended--
       (A) in subparagraph (B), by striking ``any training program 
     provided by a State pursuant to title I of the Workforce 
     Investment Act of 1998'' and inserting ``any training program 
     provided by a State pursuant to title I of the Workforce 
     Innovation and Opportunity Act''; and
       (B) in the flush text following subparagraph (H), by 
     striking ``The Secretary may not limit approval of a training 
     program under paragraph (1) to a program provided pursuant to 
     title I of the Workforce Investment Act of 1998 (29 U.S.C. 
     2801 et seq.).'' and inserting ``The Secretary may not limit 
     approval of a training program under paragraph (1) to a 
     program provided pursuant to title I of the Workforce 
     Innovation and Opportunity Act.''.
       (4) Section 239 of such Act (19 U.S.C. 2311) is amended--
       (A) in subsection (f), by striking ``Any agreement entered 
     into under this section shall provide for the coordination of 
     the administration of the provisions for employment services, 
     training, and supplemental assistance under sections 235 and 
     236 of this Act and under title I of the Workforce Investment 
     Act of 1998'' and inserting ``Any agreement entered into 
     under this section shall provide for the coordination of the 
     administration of the provisions for employment services, 
     training, and supplemental assistance under sections 235 and 
     236 of this Act and under title I of the Workforce Innovation 
     and Opportunity Act''; and
       (B) in subsection (h), by striking ``the description and 
     information described in paragraphs (8) and (14) of section 
     112(b) of the Workforce Investment Act of 1998 (29 U.S.C.

[[Page 10985]]

     2822(b))'' and inserting ``the descriptions described in 
     sections 102(b)(2)(B)(ii) and 103(b)(3)(A) of the Workforce 
     Innovation and Opportunity Act, a description of how the 
     State board will carry out the activities described in 
     section 101(d)(3)(F) of such Act,''.
       (ii) United States Housing Act of 1937.--Section 23 of the 
     United States Housing Act of 1937 (42 U.S.C. 1437u) is 
     amended--
       (1) in subsection (b)(2)(A), by striking ``lack of 
     supportive services accessible to eligible families, which 
     shall include insufficient availability of resources for 
     programs under title I of the Workforce Investment Act of 
     1998'' and inserting ``lack of supportive services accessible 
     to eligible families, which shall include insufficient 
     availability of resources for programs under title I of the 
     Workforce Innovation and Opportunity Act'';
       (2) in subsection (f)(2), by striking ``the local agencies 
     (if any) responsible for carrying out programs under title I 
     of the Workforce Investment Act of 1998 or the Job 
     Opportunities and Basic Skills Training Program under part F 
     of title IV of the Social Security Act,'' and inserting ``the 
     local agencies (if any) responsible for carrying out programs 
     under title I of the Workforce Innovation and Opportunity Act 
     or the Job Opportunities and Basic Skills Training Program 
     under part F of title IV of the Social Security Act,''; and
       (3) in subsection (g)--
       (A) in paragraph (2), by striking ``any local agencies 
     responsible for programs under title I of the Workforce 
     Investment Act of 1998 or the Job Opportunities and Basic 
     Skills Training Program under part F of title IV of the 
     Social Security Act'' and inserting ``any local agencies 
     responsible for programs under title I of the Workforce 
     Innovation and Opportunity Act or the Job Opportunities and 
     Basic Skills Training Program under part F of title IV of the 
     Social Security Act''; and
       (B) in paragraph (3)(H), by striking ``programs under title 
     I of the Workforce Investment Act of 1998 and any other 
     relevant employment, child care, transportation, training, 
     and education programs in the applicable area'' and inserting 
     ``programs under title I of the Workforce Innovation and 
     Opportunity Act and any other relevant employment, child 
     care, transportation, training, and education programs in the 
     applicable area''.
       (jj) Violent Crime Control and Law Enforcement Act of 
     1994.--Section 31113(a)(4)(C) of the Violent Crime Control 
     and Law Enforcement Act of 1994 (42 U.S.C. 13823(a)(4)(C)) is 
     amended by striking ``job training programs authorized under 
     title I of the Workforce Investment Act of 1998 or the Family 
     Support Act of 1988 (Public Law 100-485)'' and inserting 
     ``job training programs authorized under title I of the 
     Workforce Innovation and Opportunity Act or the Family 
     Support Act of 1988 (Public Law 100-485)''.
       (kk) Worker Adjustment and Retraining Notification Act.--
     Section 3(a)(2) of the Worker Adjustment and Retraining 
     Notification Act (29 U.S.C. 2102(a)(2)) is amended by 
     striking ``the State or entity designated by the State to 
     carry out rapid response activities under section 
     134(a)(2)(A) of the Workforce Investment Act of 1998,'' and 
     inserting ``the State or entity designated by the State to 
     carry out rapid response activities under section 
     134(a)(2)(A) of the Workforce Innovation and Opportunity 
     Act,''.

     SEC. 513. REFERENCES.

       (a) Workforce Investment Act of 1998 References.--Except as 
     otherwise specified, a reference in a Federal law to a 
     provision of the Workforce Investment Act of 1998 (29 U.S.C. 
     2801 et seq.) shall be deemed to refer to the corresponding 
     provision of this Act.
       (b) Wagner-Peyser Act References.--Except as otherwise 
     specified, a reference in a Federal law to a provision of the 
     Wagner-Peyser Act (29 U.S.C. 49 et seq.) shall be deemed to 
     refer to the corresponding provision of such Act, as amended 
     by this Act.
       (c) Disability-related References.--Except as otherwise 
     specified, a reference in a Federal law to a provision of the 
     Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.) shall be 
     deemed to refer to the corresponding provision of such Act, 
     as amended by this Act.
                                 ______
                                 
  SA 3379. Mr. FLAKE proposed an amendment to amendment SA 3378 
proposed by Mrs. Murray (for herself, Mr. Isakson, Mr. Harkin, Mr. 
Alexander, Ms. Mikulski, Mr. Sanders, Mr. Casey, Mrs. Hagan, Mr. 
Franken, Mr. Bennet, Mr. Whitehouse, Ms. Baldwin, Mr. Murphy, Ms. 
Warren, Mr. Enzi, Ms. Murkowski, Mr. Booker, Ms. Collins, Mr. Corker, 
Mr. Begich, Mr. Scott, Mrs. Fischer, Mr. Brown, and Mr. Coons) to the 
bill H.R. 803, to amend the Workforce Investment Act of 1998 to 
strengthen the United States workforce development system through 
innovation in, and alignment and improvement of, employment, training, 
and education programs in the United States, and to promote individual 
and national economic growth, and for other purposes; as follows:

       In section 116(g)(2), strike subparagraph (A), and insert 
     the following:
       (A) In general.--If such failure occurs for a program year, 
     the Governor shall take corrective actions, which shall 
     include development of a reorganization plan through which--
       (i) the Governor shall--

       (I) prohibit the use of eligible providers and one-stop 
     partners identified as achieving a poor level of performance; 
     or
       (II) take such other significant actions as the Governor 
     determines are appropriate; and

       (ii) the Governor may require the appointment and 
     certification of a new local board, consistent with the 
     criteria established under section 107(b).
                                 ______
                                 
  SA 3380. Mr. LEE proposed an amendment to amendment SA 3378 proposed 
by Mrs. Murray (for herself, Mr. Isakson, Mr. Harkin, Mr. Alexander, 
Ms. Mikulski, Mr. Sanders, Mr. Casey, Mrs. Hagan, Mr. Franken, Mr. 
Bennet, Mr. Whitehouse, Ms. Baldwin, Mr. Murphy, Ms. Warren, Mr. Enzi, 
Ms. Murkowski, Mr. Booker, Ms. Collins, Mr. Corker, Mr. Begich, Mr. 
Scott, Mrs. Fischer, Mr. Brown, and Mr. Coons) to the bill H.R. 803, to 
amend the Workforce Investment Act of 1998 to strengthen the United 
States workforce development system through innovation in, and 
alignment and improvement of, employment, training, and education 
programs in the United States, and to promote individual and national 
economic growth, and for other purposes; as follows:

       Beginning on page 395, strike line 20 and all that follows 
     through line 24, and insert the following:
       (B) Periodic independent evaluation.--The evaluations 
     carried out under this paragraph shall include an independent 
     evaluation of the programs and activities carried out under 
     this title. A final report containing the results of the 
     evaluation shall be submitted under paragraph (5) not later 
     than June 30 of 2018 and every fourth year thereafter.
                                 ______
                                 
  SA 3381. Mr. HARKIN (for Mrs. Murray (for herself, Mr. Isakson, Mr. 
Harkin, and Mr. Alexander)) proposed an amendment to amendment SA 3378 
proposed by Mrs. Murray (for herself, Mr. Isakson, Mr. Harkin, Mr. 
Alexander, Ms. Mikulski, Mr. Sanders, Mr. Casey, Mrs. Hagan, Mr. 
Franken, Mr. Bennet, Mr. Whitehouse, Ms. Baldwin, Mr. Murphy, Ms. 
Warren, Mr. Enzi, Ms. Murkowski, Mr. Booker, Ms. Collins, Mr. Corker, 
Mr. Begich, Mr. Scott, Mrs. Fischer, Mr. Brown, and Mr. Coons) to the 
bill H.R. 803, to amend the Workforce Investment Act of 1998 to 
strengthen the United States workforce development system through 
innovation in, and alignment and improvement of, employment, training, 
and education programs in the United States, and to promote individual 
and national economic growth, and for other purposes; as follows:

       On page 6, after the item relating to section 504, insert 
     the following:

Sec. 505. Report on data capability of Federal and State databases and 
              data exchange agreements.
       On page 6, redesignate the second item relating to section 
     505 as the item relating to section 506.
       On page 16, line 4, strike ``134(c)(2)'' and insert 
     ``134(c)(2)(A)(xii)''.
       On page 55, strike line 5.
       On page 55, line 9, strike the period and insert ``; and''.
       On page 55, between lines 9 and 10, insert the following:
       (vi) how the State's strategy will improve access to 
     activities leading to a recognized postsecondary credential 
     (including a credential that is an industry-recognized 
     certificate or certification, portable, and stackable).
       On page 116, line 19 strike the semicolon and insert ``, 
     and improve access to activities leading to a recognized 
     postsecondary credential (including a credential that is an 
     industry-recognized certificate or certification, portable, 
     and stackable);''.
       On page 222, line 22, insert ``allotted under section 
     127(b)(1)(C), reserved under section 128(a), and'' before 
     ``available''.
       On page 232, line 8, strike ``may'' and insert ``shall''.
       On page 248, lines 6 through 8, strike ``less than the 
     greater of'' and all that follows through ``(aa) an'' and 
     insert ``an''.
       On page 248, line 11, strike ``; or'' and insert a period.
       On page 248, strike lines 12 through 18.
       On page 293, line 4, strike ``may'' and insert ``shall, 
     consistent with clause (i),''.
       On page 329, line 9, insert ``information regarding the 
     entity in any reports developed by the Office of Inspector 
     General of the Department of Labor and'' before ``the 
     entity's''.

[[Page 10986]]

       On page 338, strike lines 13 through 18 and insert the 
     following:
       (A) significant improvements in program performance in 
     carrying out a performance improvement plan under section 
     159(f)(2);
       On page 338, strike lines 21 and 22 and insert ``such as an 
     emergency or disaster, as defined in section 170(a)(1);''.
       On page 339, between lines 6 and 7, insert the following:
       (3) Detailed explanation.--If the Secretary exercises an 
     option under paragraph (2), the Secretary shall provide, 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 detailed explanation of 
     the rationale for exercising such option.
       On page 339, line 7, strike ``(3)'' and insert ``(4)''.
       On page 384, line 25, strike ``to pro-'' and all that 
     follows through line 5 of page 385, and insert the following: 
     ``to award grants, on a competitive basis, to entities with 
     demonstrated experience and expertise in developing and 
     implementing programs for the unique populations who reside 
     in Alaska or Hawaii, including public and private nonprofit 
     organizations, tribal organizations, American Indian tribal 
     colleges or universities, institutions of higher education, 
     or consortia of such organizations or institutions, to 
     improve job training and workforce investment activities for 
     such unique populations.''.
       Beginning on page 398, between lines 17 and 18, insert the 
     following:
       (7) Public availability.--Not later than 30 days after the 
     date the Secretary transmits the final report as described in 
     paragraph (6), the Secretary shall make that final report 
     available to the general public on the Internet, on the Web 
     site of the Department of Labor.
       On page 398, line 18, strike ``(7)'' and insert ``(8)''.
       On page 399, line 3, strike ``(8)'' and insert ``(9)''.
       On page 759, between lines 9 and 10, insert the following:

     SEC. 505. REPORT ON DATA CAPABILITY OF FEDERAL AND STATE 
                   DATABASES AND DATA EXCHANGE AGREEMENTS.

       (a) In General.--The Comptroller General of the United 
     States shall prepare and submit an interim report and a final 
     report to Congress regarding existing Federal and State 
     databases and data exchange agreements, as of the date of the 
     report, that contain job training information relevant to the 
     administration of programs authorized under this Act and the 
     amendments made by this Act.
       (b) Requirements.--The report required under subsection (a) 
     shall--
       (1) list existing Federal and State databases and data 
     exchange agreements described in subsection (a) and, for 
     each, describe--
       (A) the purposes of the database or agreement;
       (B) the data elements, such as wage and employment 
     outcomes, contained in the database or accessible under the 
     agreement;
       (C) the data elements described in subparagraph (B) that 
     are shared between States;
       (D) the Federal and State workforce training programs from 
     which each Federal and State database derives the data 
     elements described in subparagraph (B);
       (E) the number and type of Federal and State agencies 
     having access to such data;
       (F) the number and type of private research organizations 
     having access to, through grants, contracts, or other 
     agreements, such data; and
       (G) whether the database or data exchange agreement 
     provides for opt-out procedures for individuals whose data is 
     shared through the database or data exchange agreement;
       (2) study the effects that access by State workforce 
     agencies and the Secretary of Labor to the databases and data 
     exchange agreements described in subsection (a) would have on 
     efforts to carry out this Act and the amendments made by this 
     Act, and on individual privacy;
       (3) explore opportunities to enhance the quality, 
     reliability, and reporting frequency of the data included in 
     such databases and data exchange agreements;
       (4) describe, for each database or data exchange agreement 
     considered by the study described in subsection (a), the 
     number of individuals whose data is contained in each 
     database or accessible through the data agreement, and the 
     specific data elements contained in each that could be used 
     to personally identify an individual;
       (5) include the number of data breaches having occurred 
     since 2004 to data systems administered by Federal and State 
     agencies;
       (6) include the number of data breaches regarding any type 
     of personal data having occurred since 2004 to private 
     research organizations with whom Federal and State agencies 
     contract for studies; and
       (7) include a survey of the security protocols used for 
     protecting personal data, including best practices shared 
     amongst States for access to, and administration of, data 
     elements stored and recommendations for improving security 
     protocols for the safe warehousing of data elements.
       (c) Timing of Reports.--
       (1) Interim report.--Not later than 1 year after the date 
     of enactment of this Act, the Comptroller General shall 
     prepare and submit to Congress an interim report regarding 
     the initial findings of the report required under this 
     section.
       (2) Final report.--Not later than 18 months after the date 
     of enactment of this Act, the Comptroller General shall 
     prepare and submit to Congress the final report required 
     under this section.
       On page 759, strike line 10 and insert the following:

     SEC. 506. EFFECTIVE DATES.

       On page 763, between lines 2 and 3, insert the following:
       (d) Disability Provisions.--Except as otherwise provided in 
     title IV of this Act, title IV, and the amendments made by 
     title IV, shall take effect on the date of enactment of this 
     Act.
                                 ______
                                 
  SA 3382. Mrs. MURRAY (for herself, Mr. Isakson, Mr. Harkin, and Mr. 
Alexander) proposed an amendment to the bill H.R. 803, to amend the 
Workforce Investment Act of 1998 to strengthen the United States 
workforce development system through innovation in, and alignment and 
improvement of, employment, training, and education programs in the 
United States, and to promote individual and national economic growth, 
and for other purposes; as follows:

       Amend the title so as to read: ``An Act to amend the 
     Workforce Investment Act of 1998 to strengthen the United 
     States workforce development system through innovation in, 
     and alignment and improvement of, employment, training, and 
     education programs in the United States, and to promote 
     individual and national economic growth, and for other 
     purposes.''.
                                 ______
                                 
  SA 3383. Mr. PORTMAN submitted an amendment intended to be proposed 
to amendment SA 3378 proposed by Mrs. Murray (for herself, Mr. Isakson, 
Mr. Harkin, Mr. Alexander, Ms. Mikulski, Mr. Sanders, Mr. Casey, Mrs. 
Hagan, Mr. Franken, Mr. Bennet, Mr. Whitehouse, Ms. Baldwin, Mr. 
Murphy, Ms. Warren, Mr. Enzi, Ms. Murkowski, Mr. Booker, Ms. Collins, 
Mr. Corker, Mr. Begich, Mr. Scott, Mrs. Fischer, Mr. Brown, and Mr. 
Coons) to the bill H.R. 803, to amend the Workforce Investment Act of 
1998 to strengthen the United States workforce development system 
through innovation in, and alignment and improvement of, employment, 
training, and education programs in the United States, and to promote 
individual and national economic growth, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 232, line 8, strike ``may'' and insert ``shall''.
       On page 293, line 4, strike ``may'' and insert ``shall, 
     consistent with clause (i),''.
                                 ______
                                 
  SA 3384. Mr. PORTMAN submitted an amendment intended to be proposed 
to amendment SA 3378 proposed by Mrs. Murray (for herself, Mr. Isakson, 
Mr. Harkin, Mr. Alexander, Ms. Mikulski, Mr. Sanders, Mr. Casey, Mrs. 
Hagan, Mr. Franken, Mr. Bennet, Mr. Whitehouse, Ms. Baldwin, Mr. 
Murphy, Ms. Warren, Mr. Enzi, Ms. Murkowski, Mr. Booker, Ms. Collins, 
Mr. Corker, Mr. Begich, Mr. Scott, Mrs. Fischer, Mr. Brown, and Mr. 
Coons) to the bill H.R. 803, to amend the Workforce Investment Act of 
1998 to strengthen the United States workforce development system 
through innovation in, and alignment and improvement of, employment, 
training, and education programs in the United States, and to promote 
individual and national economic growth, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 6, after the item relating to section 504, insert 
     the following:

Sec. 505. Report on data capability of Federal and State databases and 
              data exchange agreements.
       On page 6, redesignate the second item relating to section 
     505 as the item relating to section 506.
       On page 759, between lines 9 and 10, insert the following:

     SEC. 505. REPORT ON DATA CAPABILITY OF FEDERAL AND STATE 
                   DATABASES AND DATA EXCHANGE AGREEMENTS.

       (a) In General.--The Comptroller General of the United 
     States shall prepare and submit an interim report and a final 
     report to Congress regarding existing Federal and State 
     databases and data exchange agreements, as of the date of the 
     report, that contain job training information relevant to the 
     administration of programs authorized under this Act and the 
     amendments made by this Act.

[[Page 10987]]

       (b) Requirements.--The report required under subsection (a) 
     shall--
       (1) list existing Federal and State databases and data 
     exchange agreements described in subsection (a) and, for 
     each, describe--
       (A) the purposes of the database or agreement;
       (B) the data elements, such as wage and employment 
     outcomes, contained in the database or accessible under the 
     agreement;
       (C) the data elements described in subparagraph (B) that 
     are shared between States;
       (D) the Federal and State workforce training programs from 
     which each Federal and State database derives the data 
     elements described in subparagraph (B);
       (E) the number and type of Federal and State agencies 
     having access to such data;
       (F) the number and type of private research organizations 
     having access to, through grants, contracts, or other 
     agreements, such data; and
       (G) whether the database or data exchange agreement 
     provides for opt-out procedures for individuals whose data is 
     shared through the database or data exchange agreement;
       (2) study the effects that access by State workforce 
     agencies and the Secretary of Labor to the databases and data 
     exchange agreements described in subsection (a) would have on 
     efforts to carry out this Act and the amendments made by this 
     Act, and on individual privacy;
       (3) explore opportunities to enhance the quality, 
     reliability, and reporting frequency of the data included in 
     such databases and data exchange agreements;
       (4) describe, for each database or data exchange agreement 
     considered by the study described in subsection (a), the 
     number of individuals whose data is contained in each 
     database or accessible through the data agreement, and the 
     specific data elements contained in each that could be used 
     to personally identify an individual;
       (5) include the number of data breaches having occurred 
     since 2004 to data systems administered by Federal and State 
     agencies;
       (6) include the number of data breaches regarding any type 
     of personal data having occurred since 2004 to private 
     research organizations with whom Federal and State agencies 
     contract for studies; and
       (7) include a survey of the security protocols used for 
     protecting personal data, including best practices shared 
     amongst States for access to, and administration of, data 
     elements stored and recommendations for improving security 
     protocols for the safe warehousing of data elements.
       (c) Timing of Reports.--
       (1) Interim report.--Not later than 1 year after the date 
     of enactment of this Act, the Comptroller General shall 
     prepare and submit to Congress an interim report regarding 
     the initial findings of the report required under this 
     section.
       (2) Final report.--Not later than 18 months after the date 
     of enactment of this Act, the Comptroller General shall 
     prepare and submit to Congress the final report required 
     under this section.
       On page 759, strike line 10 and insert the following:

     SEC. 506. EFFECTIVE DATES.

                                 ______
                                 
  SA 3385. Mr. PORTMAN submitted an amendment intended to be proposed 
to amendment SA 3378 proposed by Mrs. Murray (for herself, Mr. Isakson, 
Mr. Harkin, Mr. Alexander, Ms. Mikulski, Mr. Sanders, Mr. Casey, Mrs. 
Hagan, Mr. Franken, Mr. Bennet, Mr. Whitehouse, Ms. Baldwin, Mr. 
Murphy, Ms. Warren, Mr. Enzi, Ms. Murkowski, Mr. Booker, Ms. Collins, 
Mr. Corker, Mr. Begich, Mr. Scott, Mrs. Fischer, Mr. Brown, and Mr. 
Coons) to the bill H.R. 803, to amend the Workforce Investment Act of 
1998 to strengthen the United States workforce development system 
through innovation in, and alignment and improvement of, employment, 
training, and education programs in the United States, and to promote 
individual and national economic growth, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 55, strike line 5.
       On page 55, line 9, strike the period and insert ``; and''.
       On page 55, between lines 9 and 10, insert the following:
       (vi) how the State's strategy will improve access to 
     activities leading to a recognized postsecondary credential 
     (including a credential that is an industry-recognized 
     certificate or certification, portable, and stackable).
       On page 116, line 19, strike the semicolon and insert ``, 
     and improve access to activities leading to a recognized 
     postsecondary credential (including a credential that is an 
     industry-recognized certificate or certification, portable, 
     and stackable);''.
                                 ______
                                 
  SA 3386. Mr. SCHATZ submitted an amendment intended to be proposed by 
him to the bill S. 2410, to authorize appropriations for fiscal year 
2015 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe military personnel strengths for such fiscal year, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the appropriate place in title VII, insert the 
     following:

     SEC. ___. AUTHORITY FOR PROVISION OF HEALTH CARE IN MILITARY 
                   TREATMENT FACILITIES FOR CIVILIAN INDIVIDUALS 
                   WITH CERTAIN DISEASES NOT OTHERWISE ELIGIBLE 
                   FOR CARE IN SUCH FACILITIES.

       (a) In General.--Under regulations prescribed by the 
     Secretary of Defense and subject to the provisions of this 
     section, a military treatment facility may provide health 
     care or treatment for a civilian individual described in 
     subsection (b) who is not otherwise eligible for care in such 
     facility under chapter 55 of title 10, United States Code, or 
     any other provision of law, for the disease or condition of 
     such individual as specified in that subsection.
       (b) Covered Individuals.--A civilian individual described 
     in this subsection is a civilian individual who--
       (1) has a disease or condition that, under commonly 
     accepted medical guidelines, requires care or treatment in or 
     through a civilian care center capable of providing care or 
     treatment specifically tailored to such disease or condition; 
     and
       (2) resides more than 100 miles from the nearest civilian 
     care center capable of providing care or treatment 
     specifically tailored to such disease or condition.
       (c) Payment for Care.--
       (1) In general.--A civilian individual may not be provided 
     care or treatment under subsection (a) unless the individual 
     agrees to contribute to the cost of such care or treatment 
     such percentage of the cost of such care or treatment as the 
     Secretary shall provide in the regulations under this 
     section.
       (2) Proof of capacity to pay.--A military treatment 
     facility may require proof of a capacity to pay for care or 
     treatment before providing such care or treatment under this 
     section, including the availability of insurance or another 
     secondary payor for such care or treatment.
       (d) Care and Treatment Provided.--A military treatment 
     facility providing care and treatment for an individual under 
     subsection (a) may provide the following:
       (1) Care and treatment for the disease or condition of the 
     individual as specified in subsection (b).
       (2) Such other care and treatment as may be medically 
     necessary (as determined pursuant to the regulations under 
     this section) in connection with the provision of care and 
     treatment under paragraph (1).
       (e) Care and Treatment Only on Space-available Basis.--
       (1) In general.--A military treatment facility may not 
     provide care and treatment under subsection (a) if the 
     provision of such care and treatment would prevent or limit 
     the availability of health care services at the facility for 
     members of the Armed Forces on active duty or any other 
     covered beneficiaries under the TRICARE program who are 
     eligible for care and services in or through the facility.
       (2) Reports.--Not later than 30 days after the date on 
     which a military treatment facility declines to provide care 
     or treatment under this section pursuant to paragraph (1), 
     the Assistant Secretary of Defense for Health Affairs shall 
     submit to the Committees on Armed Services of the Senate and 
     the House of Representatives a report on such action. The 
     report shall include a description of the care or treatment 
     sought, an analysis of the capacity of the facility concerned 
     to provide such care or treatment, and a justification for 
     such action.
       (f) Definitions.--In this section, the terms ``TRICARE 
     program'' and ``covered beneficiary'' have the meaning given 
     such terms in section 1072 of title 10, United States Code.
                                 ______
                                 
  SA 3387. Mr. SCHATZ submitted an amendment intended to be proposed by 
him to the bill S. 2410, to authorize appropriations for fiscal year 
2015 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe military personnel strengths for such fiscal year, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end of subtitle C of title VII, add the following:

     SEC. 737. COMPTROLLER GENERAL REPORT ON MENTAL HEALTH STIGMA 
                   REDUCTION EFFORTS IN THE DEPARTMENT OF DEFENSE.

       (a) In General.--The Comptroller General of the United 
     States shall carry out a review of the policies, procedures, 
     and programs of the Department of Defense to reduce the 
     stigma associated with mental health treatment for members of 
     the Armed Forces and deployed civilian employees of the 
     Department of Defense.
       (b) Elements.--The review required by subsection (a) shall 
     address, at a minimum, the following:

[[Page 10988]]

       (1) An assessment of the availability and access to mental 
     health treatment services for members of the Armed Forces and 
     deployed civilian employees of the Department of Defense.
       (2) An assessment of the perception of the impact of the 
     stigma of mental health treatment on the career advancement 
     and retention of members of the Armed Forces and such 
     employees.
       (3) An assessment of the policies, procedures, and 
     programs, including training and education, of each of the 
     Armed Forces to reduce the stigma of mental health treatment 
     for members of the Armed Forces and such employees at each 
     unit level of the organized forces.
       (c) Report.--Not later than March 1, 2016, the Comptroller 
     General shall submit to the congressional defense committees 
     a report on the review required under subsection (a).

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